Carrot fiber market booms, driven by health and upcycling trends

The global market for carrot fiber is expected to reach $264 million in 2024, registering a compound annual growth rate (CAGR) of 6.2% from 2024 to 2034, according to a new report from Fact.MR.

North America is leading carrot fiber consumption, the market research firm found. In fact, the carrot fiber market in the United States is expected to reach $92.3 million by 2034, accounting for more than one-third of the market.

The Asia Pacific region is the second-largest market for carrot fiber, propelled by a growing number of consumers in India and China seeking out fiber-enriched snacks, bread and baked goods.

Growing consumer interest in health and wellness, a megatrend that’s helped to shape the food and beverage market in recent years, is a key driver of carrot fiber’s role as a functional food ingredient. Specifically, growing demands for products like gut health supplements and plant-based alternatives is helping to solidify carrot fiber’s opportunity in foods and beverages, according to Fact.MR.

“Carrot fiber-based food products are in high demand due to their health benefits, as validated by research,” a Fact.MR analyst said. “Growing interest in locally sourced and minimally processed ingredients is also driving demand for carrot fiber.”

The upcycled opportunity

Upcycled carrot fiber, a byproduct of carrot processing methods, is expected to see faster growth of 7.5% CAGR from 2024 to 2034, compared to the broader carrot fiber market, per Fact.MR.

Upcycling is the process of using a byproduct of food production that would otherwise be wasted to create something useful. In the food industry, upcycling food waste is a growing movement that not only reduces food waste, but creates additional value.

One company, OVĀVO, upcycles the waste products of process-grade avocados to create an avocado powder for use in a range of food and beverage applications, including bakery, snacks and desserts.

Upcycling carrot fiber is one way manufacturers of carrot fiber ingredients are maintaining market competitiveness, Fact.MR reported.

The firm pointed to Bolthouse Farms, a leading manufacturer of carrot fiber, which uses the waste byproduct of its fresh baby peeled carrot production to create its carrot fiber ingredient, Hydrobind carrot fiber.

Bolthouse harvests and processes around 1,000 tons of fresh, nonorganic carrots each day for use as baby peeled carrots. Using the waste to create carrot fiber eliminates the need to dispose of roughly 100 tons of carrot waste daily, according to Fact.MR.

Other leading carrot fiber suppliers include UNIPEKTIN Ingredients (owned by Nexira) and NutriLeads. Per Fact.MR, UNIPEKTIN Ingredients accounted for 9% of the global carrot fiber market in 2023.

Additional strategies manufacturers of carrot fiber ingredients are using to gain market share include creating organic and natural product lines, using sustainably sourced raw materials for fiber production, and introducing a variety of product forms with distinct flavors and forms, among others.