Lycopene - Global Market Outlook (2021 - 2028)
According to Stratistics MRC, the Global Lycopene Market is accounted for $126.96 million in 2021 and is expected to reach $188.39 million by 2028 growing at a CAGR of 5.8% during the forecast period. Lycopene is a carotenoid and phytonutrient substance which is found in the tomato species known as Solanum lycopersicum, mostly present in Central and South America regions. Lycopene is primarily present in red fruits and vegetables which includes tomatoes, watermelon, papaya, guava, sweet red peppers, mango, carrots, red cabbage, and pink grapefruits. Lycopene is found in high amounts in tomato and tomato-based products as compared with other fruits and vegetables. Free radicals cause cell damage in the body, and consumption of lycopene helps in the reduction of these free radicals. Lycopene is also associated with the reduction in heart related diseases, and also, claims to reduce the risk of diabetes and certain types of cancers, such as lung, bone, and prostate cancers. Another advantage of lycopene is that it helps in maintaining cardio-vascular health. The most common source of lycopene in the body is consumption of fruits and vegetables containing lycopene.
Market Dynamics:
Driver:
Growing demand for animal feed
The global demand for animal feed is expected to amplify owing to surge in consumption of meat products. According to the Food and Agriculture Organization (FAO), supplementation of livestock and poultry feed with natural fruit and plant material and extracts containing bioactive components has shown positive results. These additives are able to improve feed efficiency, antioxidant status, nutrient digestion, animal health, and growth performance. The major concern of the livestock industry is the epidemiological diseases, mainly confined to the immune systems, and digestion. Lycopene improve antioxidant capacity and immune function, and regulate lipid metabolism in chicken. Furthermore, diet supplemented with lycopene decreased the cholesterol content in meat of broilers. Owing to anti-oxidative benefits of lycopene, its demand is expected to witness a surge in the animal feed segment.
Restraint:
Stringent regulatory norms
Stringent regulations pertaining to food additives will create hindrance for lycopene market growth. For instance, FAO has regularized limit of beta-carotene to 400 mg/kg for breakfast cereals to avoid health risk associated with high dosage. However, a regulatory framework designed to limit the impacts of lycopene on the environment, humans, and animals will provide a positive scope for industry development.
Opportunity:
Rise in consumption in an array of industries
The majority of the market share in the global lycopene market was accounted for by the health ingredient property. Lycopene is witnessing a rise in consumption in an array of industries including dietary supplements, food, personal care & cosmetics, and pharmaceuticals. It is experiencing this growth due to its properties that mainly includes being a health ingredient, followed by being a coloring agent. The coloring agent property has a comparatively smaller share in the global market for lycopene. This is a result of the limited application of lycopene as a coloring agent in the food industry. Also, applications of lycopene as a health ingredient are expanding, which is further expected to boost the growth of lycopene in the global market.
Threat:
Disruption in supply chain due to pandemic
The spread of the COVID-19 is the major restrain for the global economy and most of the industries. The pharmaceutical and cosmetic industry has highly affected during the spread of COVID-19. The vegetable and fruit crops also inhibited due to this pandemic. Furthermore, the production is also down due to a lack of water and other sources. Thus, the lycopene market expected to influence the market moderate after the recovery from COVID-19.
The natural lycopene segment is expected to be the largest during the forecast period
The natural lycopene segment is estimated to have a lucrative growth. Natural lycopene has become increasingly popular in the last few years. This is attributed to the fact that natural lycopene has witnessed increase in demand in various applications. Moreover, rise in consumer awareness about the side effects associated with synthetic counterparts has shifted their preference toward natural lycopene, which is regarded as safe for consumption. The changing consumer trends toward healthier lifestyles result in higher demand for natural products cause of the health-related benefits offered. Hence, the natural source lycopene is projected to be the largest segment in the lycopene market during the forecast period.
The beadlets segment is expected to have the highest CAGR during the forecast period
The beadlets segment is anticipated to witness the fastest CAGR growth during the forecast period. Among all the other forms such as oil suspension, powder, and emulsion, the beadlet form is observed to be produced by most of the lycopene manufacturers, resulting in higher demand for it. Beadlets are the most commonly used form of lycopene by an array of industries globally, as it comprises the highest content of lycopene concentrate. Thus, demand and supply side, both favouring the beadlet form of lycopene resulting in its dominance in the market during the forecast period.
Region with highest share:
Europe is projected to hold the largest market share during the forecast period innovation in technology and developing high value products. Europe dominated the largest market share especially in U.K and Germany due to the higher consumption of meat products and natural colour agents. Since higher the demand of natural anticancer medicine and natural coloring agent increase the demand of lycopene in the regional market.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR over the forecast period owing to the presence of the lycopene manufacturing companies in this region. In addition, the production of tomatoes is the highest among all the regions, globally resulting in lower cost for procuring raw material. Furthermore, the rising awareness on benefits of lycopene in food, dietary supplement, and personal care & cosmetic applications is expected to boost the demand for lycopene, also resulting in higher exports from the surplus production of lycopene in this region, which will further boost the market share of this region in the global lycopene market. The development of technologies and abundant raw material leading the manufacturers to produce and supply lycopene to an array of industries at a competitive price and gaining an advantage over the competitors in the other regions.
Key players in the market
Some of the key players profiled in the Lycopene Market include Allied Biotech Corporation, BASF SE, Bayer AG, DDW (Douw Ditmars Williamson) The Color House corporation, Divi's Laboratories Ltd, Dohler, DSM Company, Farbest Brands, General Nutrition Cente, Hoffmann-La Roche Ltd, Kagome, LycoRed, NBTY, San-Ei Gen F.F.I., Inc, and Wellgreen Technology.
Key Developments:
In March 2022, The Better Life Farming (BLF) Alliance has been launched in Latin America starting with the opening of the first BLF Center in Córdoba, Mexico. The Alliance is supported by the global partner Bayer, and the local partners AMSA (Agroindustrias Unidas de México) and Yara. It brings together global as well as local private and public organizations to improve the livelihoods of smallholder farmers and their communities in low- and middle-income countries.
In June 2019, DDW, the Color House acquired the natural color business from DuPont’s Nutrition & Biosciences division to expand its global reach and also to add manufacturing and technical attributes in new natural colors.
Products Covered:
Natural Lycopene
Synthetic Lycopene
Forms Covered:
Beadlets
Oil Suspension
Powder
Emulsion
Liquid/Syrup
Properties Covered:
Health Ingredient
Coloring Agent
Applications Covered:
Food and Beverages
Nutraceuticals and Pharmaceuticals
Cosmetics and Personal Care
Animal Nutrition
Regions Covered:
North America
US
Canada
Mexico
Europe
Germany
UK
Italy
France
Spain
Rest of Europe
Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
South America
Argentina
Brazil
Chile
Rest of South America
Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
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