The 12 percent increases are effective immediately or as existing contracts allow, said the firm in a statement yesterday.
Products impacted include all beta-carotene ingredients, as well as its derivatives canthaxanthin and apocarotenal.
Use and benefits
Beta-carotene is an antioxidant linked to heart health and diabetes benefits. However, as well as its use in functional foods and dietary supplements, it is also used in regular food applications for its colouring properties.
BASF, a leading global supplier of beta-carotene ingredients, said the price increases will impact customers in all markets.
“This price increase is necessary to account for increases in raw material costs and higher distribution costs,” said a spokesperson, but would not reveal which raw materials the firm uses.
The company also said that high customer demand for the ingredients is also creating supply pressure: “Currently very high demand for all three product groups makes significant adaptations of the production plans necessary, which in turn also leads to cost increases.”
Market size
The global market for carotenoids, which are associated with reduced risk of several chronic health disorders including some forms of cancer, heart disease and eye degeneration, was $766m in 2007, according to BCC Research data.
The analysts forecast that this will increase to $919m by 2015, a compound annual growth rate (CAGR) of 2.3 per cent. Beta-carotene has the largest share of the market. Valued at $247m in 2007, this segment is expected to be worth $285m by 2015, a CAGR of 1.8 per cent, said BCC researchers.
Expansion
Earlier this year, BASF announced an investment of over €6m in the optimization and upgrade of its carotenoid site in Ballerup, Denmark.
Situated near Copenhagen, BASF’s Nutrition Ingredients business unit in Ballerup is affiliated to the Care Chemicals division and supplies customers from the food, beverage, pharmacological and infant nutrition industries with the carotenoids beta-carotene, lycopene and lutein, vitamins A, D3, E, K1 and B12 and omega-3 fatty acids.
The additional investment and outlay modifications will allow the plant to respond more flexibly and reliably to customer demand, according to site manager Preben Sørensen.