Astaxanthin Market Analysis By Source (Natural [Yeast, Krill/Shrimp, Microalgae] And Synthetic), By Product (Dried Biomass/Powder, Oil, Soft gels, Liquid), By Application, And Segment Forecasts, 2018 - 2025

Industry Insights

The global astaxanthin market size was estimated at USD 555.4 million in 2016. High demand due to its antioxidant properties and increasing applications in the aquaculture industry are key factors affirming growth of this market. Furthermore, a rise in health-conscious population and growing demand for natural food coloring agents with lesser adverse effects as compared to other chemical products are other important drivers estimated to boost growth. 

Astaxanthin has been used by the aquaculture industry for a long time. Many fish farmers are reported to use astaxanthin for coloring salmon, trout, and crustaceans in artificial ponds. According to these farmers, consumers measure the fish quality by the reddish pigmentation on them, which results from the consumption of astaxanthin. This function of astaxanthin is also expected to increase its demand over the forecast period.

U.S. astaxanthin market by product, 2014 - 2025 (USD Million)

Technological advancements in natural astaxanthin production are the key attributes that help manufacturers yield more high-quality products with minimum wastage. Sealed microalgae cultivation system is one of the most recently adopted technologies that reduces the risk of entrapment of foreign objects, agricultural residue, and microbial contamination, thereby increasing yield and reducing waste.

Astaxanthin has been reported to have higher antioxidant properties as compared to other foods. An increase in the number of health-conscious people is also estimated to be one of the greatest drivers of demand. People in developed countries are more focused on consuming food products derived from natural sources due to the benefits of natural ingredients, low adverse effects, and ease of absorption.

Source Insights

Astaxanthin can be manufactured from both natural and chemical sources. Natural sources are estimated to witness exponential CAGR of over 24.5% over the forecast period. High yield of carotenoid, low maintenance cost, and increasing demand for natural food supplements are the key factors for affirmative growth of this segment. 

Microalgae, such as H. pluvialis, have been widely used by many manufacturers owing to high amount of carotenoid content and easier methods of extraction. However, shift in focus toward other natural sources, such as yeast and krill, is expected to negatively impact growth of the microalgae segment.

Increasing demand for natural food supplements and growing awareness among consumers about adverse effects of chemical products can be attributed to the anticipated high production of natural astaxanthin in future. Some market players, such as BCG and Cyanotech, are currently focusing on developing advanced technology for microalgae cultivation and harvesting.

Synthetic astaxanthin, on the other hand, is widely used during fish farming and in the poultry industry as animal feed. The market for synthetically produced astaxanthin is estimated to be negatively impacted by growing demand for natural astaxanthin. Moreover, chemical synthesis requires high capital and manpower, which is also anticipated to decrease the market share of this segment over the forecast period.

Product Insights

Higher demand for astaxanthin resulted in higher demand for dried algae meal or biomass. Dried algae is anticipated to dominate the market mainly due to its high usage as animal feed, lesser need for downstream processing, and low cost of production. The segment held a revenue share of 25.9% of the overall market in 2016. Dried biomass is a powdered form of manufactured astaxanthin and can be used directly as dosage or as a precursor for other formulations.

On the other hand, the soft gels segment is anticipated to record the fastest growth rate. The segment is expected to witness CAGR of over 19.5% over the forecast period. Major factors that can be attributed to this growth are increased use of soft gels in nutraceutical delivery, growing adoption owing to ease of administration, and easy availability in a variety of doses.

Liquid and water-miscible formulations are also estimated to witness high adoption in cosmetic and skin care industry due to their high antioxidant content. Liquid astaxanthin is also increasingly sought for use as a food coloration agent owing to its easily miscible nature and low adverse effects. 

Application Insights

Astaxanthin is mostly used for aquaculture and as animal feed. For many years, carotenoid has been used for coloring fishes and improving the texture of animals by increasing their reddish pigment. In the U.S., the segment held a 39.6% share in 2016. 

Nutraceutical segment is estimated to witness the most lucrative growth over the forecast period. Astaxanthin, owing to its high antioxidant nature as compared to other food supplements and easier availability, finds wide application in the nutraceutical industry.

Natural astaxanthin has been known to have higher Oxygen Radical Absorbance Capacity (ORAC) as compared to natural lycopene, natural alpha-tocopherol, and synthetic astaxanthin. It is mainly used during management of disorders such as cardiovascular conditions, Alzheimer’s disease, Parkinson’s disease, ophthalmic conditions, and orthopedic disorders.

Increasing demand for anti-ageing creams and skin care products is also estimated to expedite usage of astaxanthin in the cosmetics industry over the forecast period. Increasing geriatric population, flourishing cosmetic industry, and rising adoption of natural cosmeceuticals are factors estimated to expedite growth of this segment.

Global astaxanthin market, by application, 2016 (%)

Regional Insights

North America held a substantial market share of 46.5% in 2016. Key factors for the dominance of this region are existence of an established nutraceutical industry, presence of health-conscious population, and growing awareness about the use of astaxanthin. Moreover, presence of organizations such as Natural Algae Astaxanthin Association (NAXA), an organization actively involved in building awareness about health benefits of astaxanthin, is estimated to increase the regional market share 

Asia Pacific, on the other hand, is estimated to witness significant growth over the forecast period. Presence of key manufacturers such as BGG and InnoBio in China, with a technologically advanced operating facilities, is an important factor for the lucrative growth potential of this region. In addition, increasing awareness about astaxanthin among healthcare professionals, a large population with nutritional deficiency, and a flourishing cosmeceutical industry using natural products are some other key factors affirming growth.

Countries such as India, Singapore, and Malaysia are key regions in Asia Pacific for active wellness tourism and leisure activities. Demand is increasing for the use of natural oils and cosmetics in spa and wellness centres owing to low side effects, improved results, and high nutritional values as compared to chemical products. These factors are estimated to provide a potential growth platform for this market.

Competitive Insights

Astaxanthin market is oligopolistic in nature and is dominated by several key players. Some major players of this market are Algatechnologies; Cyanotech Corporation; Fuji Chemical Industry Co., Ltd.; BlueOcean NutraSciences, Inc.; MicroA AS; Fenchem; EID-Parry (India) Ltd.; Beijing Gingko Group (BGG); Heliae Development, LLC; IGENE Biotechnology, Inc.; and JX Nippon Oil and Energy Corporation. They are highly focused on new product development, mergers & acquisitions, and expansion to untargeted geographies in order to enhance their market position. 

Many players involved in manufacturing natural astaxanthin are implementing strategies such as use of novel production technologies for increasing yield with low contaminants. Many organizations are focused on developing advanced technology for microalgae harvesting, cultivation, downstream processing, and drying. For instance, BGG uses a closed tube system spread over 80 acres for growing microalgae with high yield.

Report Scope

Segments covered in the report

This report forecasts revenue growth at global, regional, & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global astaxanthin market on the basis of source, product, application, and region: 

• Source Outlook (Revenue, USD Million, 2014 - 2025)

  • Natural

    • Yeast

    • Krill/Shrimp

    • Microalgae

    • Others

  • Synthetic

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Dried algae meal or Biomass

  • Oil

  • Softgel

  • Liquid

  • Others

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Nutraceuticals

  • Cosmetics

  • Aquaculture and animal feed

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

  • Asia Pacific

    • Japan

    • China

    • India

  • Central & South America

    • Brazil

    • Mexico

  • Middle East & Africa

    • South Africa