Astaxanthin Market

Market Overview

The global astaxanthin market size was valued at USD 1,866.03 million in 2023. It is estimated to reach USD 7,537.63 million by 2032, growing at a CAGR of 16.78% during the forecast period (2024–2032). The global astaxanthin market is primarily driven by its increasing demand from several end-user industries, especially the aquaculture industry, wherein it is especially used to enhance the coloration of aquatic organisms. Furthermore, astaxanthin is increasingly being adopted to produce natural cosmetics, nutraceuticals, and pharmaceuticals, which is anticipated to create opportunities for market expansion.

Astaxanthin is a naturally occurring carotenoid pigment in the xanthophyll family known for its bright red color. It is found in many marine organisms, including microalgae, salmon, shrimp, and krill, where it acts as a protective antioxidant. Astaxanthin is well-known for its powerful antioxidant properties, surpassing other carotenoids such as beta-carotene and lutein. This compound is known for its ability to neutralize free radicals and reduce oxidative stress in the body, which provides a variety of health benefits.

Astaxanthin is thought to benefit skin health by preventing UV damage and improving elasticity. It is also known for its anti-inflammatory properties, which can help minimize inflammation and improve joint health. Astaxanthin is also valued for its potential benefits to eye health, cardiovascular health, and athletic performance. Astaxanthin has grown in popularity as a dietary supplement due to its powerful antioxidant effects, and it is now available in various forms, such as capsules, soft gels, and powders, providing a natural way to support overall health and wellness.

Highlights

• Natural forms dominated the source segment.
• Dried algae meal or biomass dominated the product segment.
• Aquaculture and animal feed dominated the application segment.
• North America is the highest shareholder in the global market.

Market Dynamics

Global Astaxanthin Market Drivers

Increased Use in Aquaculture

Astaxanthin is increasingly utilized as a food ingredient in aquaculture, particularly for prawns, salmon, trout, and ornamental fish, to enhance coloration and boost commercial value. Besides improving appearance, it offers benefits such as increased stress tolerance, enhanced performance, immune-related gene expressions, reproductive capacity, survival rates, and disease resistance in aquatic animals. Major industry players focus on innovative product developments and strategic collaborations to meet the growing demand for astaxanthin in aquaculture.

For instance, Syndel Laboratories Ltd. collaborated with Heliae to manufacture Nymega, a specialized aquaculture feed ingredient, which was commercialized in 2017. Furthermore, a 2020 study published in the International Journal of Food and Nutritional Science highlighted that incorporating 0.2% to 5% astaxanthin in fish feed significantly improves fish coloration, reinforcing its status as an essential feed component. Consequently, the rising adoption of astaxanthin in these applications is expected to drive substantial growth in the global astaxanthin market.

Global Astaxanthin Market Restraint

High Cost of Production

The high cost of production is a significant barrier to the growth of the global astaxanthin market. The production cost of astaxanthin can reach approximately USD 1,000 per kilogram, with variations depending on the plant's location. Utilities alone can account for up to 33 percent of these costs, encompassing energy, raw materials, and other essentials. Among these, the cost of fertilizers is particularly challenging to reduce. Consequently, manufacturers are increasingly focusing on minimizing electricity consumption to curb overall expenses.

Additionally, the expense of employing technologically advanced methods to enhance astaxanthin quality poses another challenge. Small and medium-sized enterprises (SMEs) find it particularly difficult to adopt sophisticated techniques, such as closed-cultivation systems for microalgae. These systems are essential for producing high-quality astaxanthin and mitigating risks of microbiological and foreign particle contamination. However, the substantial investment required for these advanced methods is beyond the financial reach of many SMEs. This financial constraint prevents them from improving production efficiency and quality, thereby hindering their competitiveness in the market.

Global Astaxanthin Market Opportunities:

Increasing Adoption of Natural Cosmetics, Nutraceuticals, and Pharmaceuticals

The surging popularity of natural alternatives is driven by concerns over the harmful effects of chemicals and synthetic additives in food and topical applications. Dermatologists find nutraceuticals beneficial, with studies indicating that astaxanthin reduces oxidative stress, delays aging, and prevents skin sagging. Research in the UK and Asia highlights astaxanthin's positive impact on aging-related gene expression. Companies are enhancing natural astaxanthin-based products by launching new items and forming strategic alliances.

For instance, Lubrizol Corporation introduced ASTAGILE microcapsules in October 2020 to support healthy aging and mental agility. Astaxanthin is also being explored for its potential in treating obesity. A study in the Journal of Nutritional Biochemistry found that astaxanthin inhibits adipose tissue fibrosis and enhances skeletal muscle capacity in obese mice. Thus, such benefits of astaxanthin would increase its adoption in natural cosmetics, nutraceuticals, and pharmaceuticals, thereby creating opportunities for the global astaxanthin market.

Regional Analysis

Based on region, the global market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

North America Dominates the Global Market

North America holds a significant share of the global astaxanthin market and is poised for substantial growth during the forecast period. The region's market dominance is underpinned by stringent regulatory frameworks and quality standards, such as those enforced by the FDA and Good Manufacturing Practices (GMP). These regulations mandate comprehensive microbiological testing for all-natural astaxanthin products, ensuring safety and efficacy. Furthermore, multiple government agencies, including the Federal Trade Commission, the State of Hawaii Department of Health, and the Consumer Product Safety Commission, play crucial roles in overseeing the regulation of natural astaxanthin products.

Products containing natural astaxanthin are also classified as Generally Recognized As Safe (GRAS) under sections 201(s) and 409 of the Federal Food, Drug, and Cosmetic Act based on expert consensus regarding their safety. This classification facilitates their acceptance and use in various applications. The availability of specialized tools and databases supports manufacturers, researchers, and other stakeholders, further boosting market growth. For instance, the Personal Care Products Council (PCPC) provides the International Nomenclature Cosmetic Ingredient (INCI) dictionary, a global resource for cosmetic ingredient labeling.

In Canada, astaxanthin products require approval from Health Canada under the Canadian Product License ensuring they meet national safety standards. Synthetic astaxanthin products are similarly regulated under the FDA's GRAS provisions, emphasizing their safety for consumer use. The rigorous regulatory environment, coupled with supportive resources and databases, positions North America as a key market for astaxanthin, driving its growth and development in the global landscape.

Europe is estimated to boost at a significant CAGR during the forecast period. The European region plays a crucial role in the global astaxanthin market, with several key regulatory and research bodies ensuring its safety and fostering market growth. The Food Safety Authority of Ireland (FSAI), established by the Food Safety Authority of Ireland Act in 1998, oversees the safety of dietary supplements in Ireland, requiring Novel Food approval from the European Commission before products can be marketed. At the European level, the European Food Safety Authority (EFSA), formed under General Food Law-Regulation 178/2002, manages risk assessment and regulation of food supplements. Risk management for food additives is handled by the Directorate-General for Health and Consumer Protection (DG SANCO).

In the UK, the Food Standards Agency (FSA) grants novel food status, further ensuring product safety. Despite legislative simplifications, regulatory approval remains a significant challenge, as highlighted in a 2014 report by the European Commission's Joint Research Centre (JRC). To address these challenges and foster industry growth, the European Committee for Standardization (CEN) established a committee in 2017 to develop standards for algae and algae-related products aimed at improving consumer trust and the algae supply chain.

Furthermore, organizations like the European Algae Biomass Association (EABA) are instrumental in promoting research and development in the algae sector. EABA supports collaboration among policymakers, industry stakeholders, and scientists, thus driving technological advancements and market expansion. These concerted efforts by regulatory bodies and industry associations are expected to bolster the European astaxanthin market, ensuring product safety, enhancing consumer confidence, and strengthening the overall algae market infrastructure.

Segmental Analysis

The global astaxanthin market is bifurcated by source, product, and application.

Based on the source, the global astaxanthin market is segmented into natural and synthetic forms.

The natural astaxanthin segment is the most significant contributor to the market throughout the forecast period. The natural astaxanthin segment is anticipated to grow rapidly during the forecast period because of its high efficacy and sustainability advantages. Natural Astaxanthin, a rich and dark red pigment, provides distinctive colors to krill, salmon, and shrimp and can be used as a skin health booster in cosmetics. It treats hypercholesterolemia, stroke, Parkinson's disease, Alzheimer's disease, and cancer. Natural Astaxanthin is considered to have more benefits than synthetic astaxanthin. Furthermore, to raise awareness about the advantages of natural astaxanthin, organizations such as the Natural Algae Astaxanthin Association (NAXA) promote, protect, and educate on the benefits of natural astaxanthin in dietary supplements. Moreover, increasing the involvement of key market players, such as NextFerm and Beijing Gingko Group, to develop innovative products or expand applications can create new opportunities for market stakeholders. For instance, the Beijing Gingko Group is conducting clinical trials to expand the application of natural astaxanthin.

Based on product, the global astaxanthin market is divided into dried algae meal or biomass, oil, soft gel, and liquid.

The dried algae meal or biomass dominates the global market. Dried biomass is a raw form of astaxanthin. Powdered astaxanthin can be administered directly or used to make other formulations, such as tablets and capsules. Most manufacturers produce astaxanthin in powdered form. Algatech Ltd. is one of the major manufacturers of astaxanthin and produces it in powdered form using the spray-drying technique. In addition, powdered astaxanthin is more affordable than other forms, and biomass is used more in various end-user sectors due to its wide range of products that contain astaxanthin, ranging from 1% to 5%. Furthermore, in June 2019, Valensa International launched innovative powdered, flavorless, and water-soluble astaxanthin ingredients for food and beverage applications. Thus, such product launches are anticipated to boost the segment's growth.

Based on application, the global astaxanthin market is bifurcated into nutraceuticals, cosmetics, aquaculture animal feed, and others.

The aquaculture and animal feed segment dominates the global market. Natural Astaxanthin is used largely in aquaculture and animal feed. Aquaculture is the largest application segment in the natural astaxanthin market, owing to its extensive use as a feed additive. An increase in the adoption of astaxanthin in the aquaculture industry to enhance the quality of seafood contributes to the segment's significant share in the market. In addition, natural astaxanthin is used as feed to induce reddish pigmentation in salmon, trout, and shrimp, an important factor driving consumer preference. Astaxanthin oil can also increase feed uptake, resulting in faster shrimp growth.

Recent Developments

• March 2024- Kuehnle AgroSystems (KAS), a leading producer of natural algae astaxanthin, has raised $3 million in funding to accelerate the commercialization of its innovative production method. KAS's sustainable approach enables high-quality astaxanthin at lower costs, positioning the company to meet the growing global demand for natural astaxanthin in the aquaculture and nutraceutical markets.
• September 2023- AlgaeLife, a leading producer of natural astaxanthin, has announced the world's first USDA-certified organic astaxanthin derived from microalgae. This milestone achievement sets a new standard for purity and sustainability in the global astaxanthin market, catering to the growing demand for certified organic health and wellness products.