TOMATO LYCOPENE MARKET ANALYSIS

The global tomato lycopene market size was valued at US$ 124.6 Mn in 2023 and projected value US$ 188.3 Mn by 2030 and is expected to register a CAGR of 6.1% during the forecast period, 2023-2030. Lycopene is a carotenoid pigment responsible for the red color of tomatoes and other fruits and vegetables. It is one of the most powerful antioxidants, which helps protect cells from damage caused by free radicals. Lycopene has been linked to a number of health benefits, including a reduced risk of heart disease, stroke, prostate cancer, and other chronic diseases.

The growing demand for lycopene from the nutraceutical sector is one of the key factors driving the growth of the market. Lycopene is used in a variety of dietary supplements, including capsules, powders, and liquids. It is also added to a number of food products, such as yogurt, juices, and snacks. The rising demand for lycopene as a food coloring agent is another key factor driving market growth. Lycopene is a natural red colorant that is used in a variety of food products, such as tomato sauces, ketchup, and salad dressings.

Global Tomato Lycopene Market Regional Insights

• North America is the largest market for tomato lycopene, accounting for a share of over 30% in 2022. The growth of the market in this region is driven by increasing awareness about the health benefits of lycopene, rising demand for dietary supplements, and growing consumer preference for functional foods.
• Europe is the second-largest market for tomato lycopene, accounting for a share of over 25% in 2022. The growth of the market in this region is driven by similar factors as in North America, as well as by the increasing demand for lycopene-rich food products such as tomato-based sauces and juices.
• Asia Pacific is the fastest-growing market for tomato lycopene, with a CAGR of over 6% during the forecast period. The growth of the market in this region is driven by rising awareness about the health benefits of lycopene, increasing demand for dietary supplements, and growing consumer preference for functional foods.

Figure 1. Global Tomato Lycopene Market Share (%), by Region, 2023

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Global Tomato Lycopene Market Drivers

• Increasing consumer awareness about the health benefits of lycopene: Lycopene, a natural pigment found in tomatoes, is known for its antioxidant properties and potential health benefits. It is believed to have a positive impact on heart health, cancer prevention, and skin health. As consumers become more health-conscious and seek natural and functional food ingredients, the demand for tomato lycopene as a dietary supplement or ingredient in various food and beverage products increases.
• Growing demand for natural and clean-label products: With a rising emphasis on natural and clean-label products, consumers are seeking ingredients that are derived from natural sources. Tomato lycopene fits this requirement, as it is extracted from tomatoes, which are widely recognized as a natural and wholesome food. The demand for natural food ingredients like tomato lycopene is driven by consumers' preference for clean and transparent labels, free from synthetic additives and preservatives.
• Expansion of the nutraceutical and dietary supplement industry: The nutraceutical and dietary supplement industry has been experiencing significant growth worldwide. As consumers increasingly turn to dietary supplements to support their overall well-being and address specific health concerns, the demand for tomato lycopene as a natural ingredient in these products has risen. The aging population, rising disposable income, and rising health consciousness are driving the industry's expansion, which in turn is fueling the growth of the tomato lycopene market globally.
• Growing application in the food and beverage industry: The food and beverage industry has been incorporating tomato lycopene into various products due to its functional properties and natural color. Tomato lycopene is used as a natural food coloring agent, especially in processed tomato products, sauces, soups, and beverages. Additionally, it is being utilized as a natural antioxidant and flavor enhancer in a range of food and beverage applications, further driving the demand for tomato lycopene.

Global Tomato Lycopene Market Opportunities

• Expanding product applications: While tomato lycopene is already utilized in various food and beverage products, there is still room for expanding its application in other sectors. The market can explore opportunities in sectors such as cosmetics and personal care, pharmaceuticals, and dietary supplements. Tomato lycopene's antioxidant properties and potential health benefits make it a promising ingredient for skincare products, supplements, and pharmaceutical formulations.
• Developing new product formulations: Companies can focus on developing innovative product formulations that incorporate tomato lycopene. This includes creating new blends or combinations with other natural ingredients to enhance its functionality and appeal to a wider range of consumers. For example, combining tomato lycopene with other antioxidant-rich ingredients or formulating it into convenient delivery formats like capsules or gummies.
• Geographic expansion: The demand for tomato lycopene is not limited to specific regions. Companies can explore opportunities to expand their market presence geographically. This can involve targeting emerging markets where health and wellness trends are gaining traction, as well as expanding into regions where tomato-based products are traditionally consumed, such as Mediterranean countries.
• Partnerships and collaborations: Collaborations between tomato lycopene producers, food manufacturers, and research institutions can drive innovation and create new opportunities. By partnering with food and beverage companies, lycopene producers can work on developing customized solutions and incorporating tomato lycopene into existing product lines. Collaboration with research institutions can help in conducting studies to further explore the health benefits and potential applications of tomato lycopene, providing scientific evidence to support product claims.

Global Tomato Lycopene Market Trends

• Rising demand for organic and natural products: Consumers are increasingly seeking organic and natural food ingredients and supplements. This trend extends to tomato lycopene, with a growing demand for organic-certified and naturally derived lycopene products. Consumers are conscious of avoiding synthetic additives and prefer products that align with their health and sustainability values.
• Increased focus on personalized nutrition: Personalized nutrition is gaining prominence as consumers recognize the unique nutritional needs of individuals. Tomato lycopene can be positioned as part of personalized nutrition strategies, offering targeted health benefits based on individual requirements. This trend presents opportunities for customized lycopene formulations and tailored dietary solutions.
• Advent of novel extraction techniques: Technological advancements have led to the development of innovative extraction techniques for lycopene. These techniques help preserve the quality, bioavailability, and stability of lycopene, ensuring its effectiveness in various applications. Advanced extraction methods, such as supercritical fluid extraction and nanotechnology-based approaches, are being explored to enhance lycopene extraction efficiency.
• Growing popularity of plant-based diets: The rise of plant-based diets is driving the demand for natural plant-derived ingredients like tomato lycopene. As consumers shift towards vegetarian and vegan lifestyles, they seek plant-based alternatives to traditional animal-derived products. Tomato lycopene provides a natural source of antioxidants and color in plant-based food products, appealing to this growing consumer segment.

Global Tomato Lycopene Market Restraints

• Seasonal availability and dependence on tomato crops: Tomato lycopene production is largely dependent on the availability and quality of tomato crops. Tomato cultivation is subject to seasonal variations, climate conditions, and agricultural challenges such as diseases and pests. Fluctuations in tomato supply can impact the availability and pricing of tomato lycopene, leading to potential supply chain disruptions.
• Price volatility: Tomato lycopene prices can be subject to volatility due to various factors such as crop yields, weather conditions, and market demand. Fluctuations in tomato prices, which are the primary raw material for lycopene extraction, can influence the cost of tomato lycopene products. Price volatility may pose challenges for manufacturers and affect the affordability and competitiveness of tomato lycopene in the market.
• Limited consumer awareness and understanding: Although awareness about the health benefits of tomato lycopene is growing, there is still a significant portion of consumers who are unaware of its existence and potential advantages. Limited consumer knowledge and understanding of lycopene may pose a challenge in generating demand and expanding the market, requiring education and communication efforts to convey the benefits of tomato lycopene effectively.
• Regulatory considerations and labeling restrictions: The global tomato lycopene market is subject to regulatory requirements and labeling restrictions, which vary across different regions and countries. Compliance with regulations related to health claims, ingredient specifications, and labeling can be complex and time-consuming for manufacturers. Strict regulatory frameworks and labeling restrictions may pose challenges in marketing and product positioning, impacting the market's growth potential.

Global Tomato Lycopene Market Analyst Viewpoint

The global tomato lycopene market is expected to witness significant growth over the forecast period owing to increasing health awareness among consumers and rising demand for natural colors and antioxidants in various industries. Tomato lycopene extracts find wide usage in pharmaceuticals, food and beverages, personal care products, and others due to their anti-inflammatory and antioxidant properties. North America represents the largest and fastest-growing market due to growing consumer preference for processed food products with natural ingredients. However, stringent FDA regulations regarding the addition of lycopene extracts to food products can act as a restraint.

Asia Pacific is anticipated to emerge as the most lucrative region in the tomato lycopene market with rising healthcare expenditures and increasing demand for convenient functional foods and beverages. The European market is projected to showcase steady growth on account of rising demand for natural food colors from countries like Germany, France, and the U.K. The emergence of online retail platforms, along with rising e-commerce sales in developing Latin American countries like Brazil and Mexico, is opening new opportunities for tomato lycopene producers.

Fluctuations in tomato price and availability due to adverse weather conditions and diseases can negatively impact the production cost of lycopene extracts. Intense competition among existing lycopene producers and the growing adoption of synthetic alternatives also pose challenges. Overall, the global tomato lycopene market has bright prospects with advancements in extraction technologies.

Recent Developments

New product launches

• LycopeneLiposomal by Lycored is a liposomal lycopene supplement that is designed to be more bioavailable than traditional lycopene supplements. It is available in capsule form and is sold online and in select retail stores.
• Lycopene Complex by NOW Foods is a dietary supplement that contains lycopene, beta-carotene, and vitamin E. It is available in capsule form and is sold online and at most major retailers.
• Lycopene Softgels by Nature Made is a dietary supplement that contains 10 mg of lycopene per softgel. It is available in bottles of 90 and 180 softgels and is sold online and at most major retailers.
• Lycopene Drink Mix by Solgar is a dietary supplement that contains 20 mg of lycopene per serving. It is available in powder form and is mixed with water or juice. It is sold online and in select retail stores.

Acquisition and partnerships

• In 2022, Lycopene International acquired LycoRed Ltd., a leading supplier of lycopene ingredients. The acquisition will help Lycopene International expand its product portfolio and reach new markets.
• In 2022, Lycored entered into a partnership with DSM Nutritional Products. The partnership will focus on developing new lycopene-based products for the dietary supplement and food and beverage industries.
• In 2022, OmniActive Health Technologies acquired LycoRed USA. The acquisition will help OmniActive expand its lycopene product portfolio and reach new markets.

Figure 2. Global Tomato Lycopene Market Share (%), by application, 2023

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Top companies in Global Tomato Lycopene Market

• DSM Nutritional Products
• Lycored
• Lycored SARL
• FutureCeuticals
• Vidya Herbs
• Allied Biotech Corporation
• Avestia Pharma
• Xi'an Green Source Co., Ltd.
• Beijing Gingko Group (BGG)
• Shaanxi Jiahe Phytochem Co., Ltd.

Definition: The global tomato lycopene market refers to the global market for the extraction, production, and distribution of lycopene derived from tomatoes. Lycopene is a natural pigment and antioxidant found in tomatoes, known for its potential health benefits. The market encompasses various industries such as food and beverages, nutraceuticals, cosmetics, and pharmaceuticals that utilize tomato lycopene as an ingredient in their products. The market involves the cultivation of tomatoes, extraction of lycopene, and the development of value-added products that incorporate tomato lycopene.