Functional Food Ingredients Market: Industry Analysis and Forecast (2024-2030) Trends, Statistics, Dynamics, Segmentation

Functional Food Ingredients Market Overview:

 

The Functional Food Ingredients Market was valued at USD 112.80 billion in 2023, and is predicted to grow at a CAGR of 6.8 percent to USD 178.78 billion by 2030. 

The Functional Food Ingredients Market is studied by segments like Type (Probiotics, Prebiotics, Proteins & Amino Acids, Phytochemicals & Plant Extracts, Omega-3 Fatty Acids, Carotenoids, and Fibers & Specialty Carbohydrates), Application (Food: Dairy, Bakery, Snacks, Meat, Infant food, others; Beverages: Energy Drinks, Juices, Health Drinks), and Region (North America, Europe, Asia-Pacific, and Rest of the World). The report consists of the Trend, Forecast, Competitive Analysis, and Growth Opportunities of the market.

 

For the forecast period of 2024 to 2030, the report provides a complete analysis that reflects today's Functional Food Ingredients Market realities and future market prospects. To provide a comprehensive perspective of the market, the research segments and analyses it in great detail. The key data and observations offered in the study can help market participants and investors identify low-hanging fruit in the market and build growth strategies.

 

 

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Covid-19 Impact on Functional Food Ingredients Market:

Due to COVID-19, raw material prices are expected to rise due to trade obstacles, disruptions in raw material supply, and inefficient distribution systems. The global functional food ingredients market is projected to face challenges due to the scarcity and high cost of raw materials, as well as high production costs. The security of the food supply chain is becoming increasingly critical in the COVID-19 era. Because most vitamins are imported from China, there was a scarcity of vitamins, and COVID-19 had a negative impact on transportation. The COVID-19 epidemic has brought attention to the supply chain's vulnerability around the world. Due to trade obstacles, manufacturers are looking for alternate ingredients. Local merchants and regional raw material suppliers, on the other hand, will benefit.

 

Functional Food Ingredients Market Dynamics:

 

Increased use of nutritive convenience and fortified foods

 

The global demand for fortified foods is rapidly increasing. Vitamins, minerals, hydrocolloids, prebiotics, antioxidants, amino acids, plant extracts, and carotenoids are some of the most important functional food constituents. In emerging markets, the population of health-conscious people is quickly growing, fueling demand for food fortification. The apparent disparities in population health among countries are largely due to variances in dietary consumption across areas. Various factors such as rising cases of chronic diseases and micronutrient deficiencies, the rise of the middle class population in emerging economies, new government fortification programs, the rise of the world's older population in regions such as Europe, and rising interest in health and wellness as a result of COVID-19 are expected to drive sales of fortified foods, further driving demand for functional food ingredients.

 

Functional food products have a higher cost due to the use of healthier or naturally sourced ingredients.

 

The creation and distribution of functional food components is complicated, costly, and uncertain. Technological conditions, market demand, and legislative and regulatory background are all factors that influence product development success. For the R&D of a strain to be employed in the manufacturing of new functional components like probiotics, a significant expenditure is required. International food rules are followed in the development and production of probiotic strains and products. Manufacturing and extraction of numerous additional useful components also necessitate highly sanitized and technological equipment and techniques. Because of the high cost of production, the end product's price is similarly expensive. The cost of marketing and distribution is also factored into the product pricing. Despite the fact that customers are aware of the health benefits of the expensive functional food ingredients, their high prices prevent them from purchasing them.

 

Adoption of innovative technologies in the functional food business is an opportunity.

 

Technological developments in the functional food ingredients sector are driven by the emergence of new technologies such as encapsulation, nanoencapsulation, and bio-encapsulation. Many food products benefit from encapsulation technology because it improves their taste. Omega-3 fatty acids, for example, are linked to a foul odor. The application of encapsulating technology improves the flavor and scent of these compounds. Recent advances in liposome technology are being used to make a variety of components, including probiotics as well as other functional food ingredients, which have a variety of health benefits. As a result, technical advancements for niche applications such as gourmet cuisine and infant care have increased.

 

Complexities associated with the integration & adulteration of functional food items are among the challenges.

 

Consumer awareness of the health implications of individual ingredients can influence whether or not a functional food is accepted. New and enhanced products, such as foods supplemented with probiotics, prebiotics, flavonoids, carotenoids, & conjugated linolenic acid, are not so often chosen over functional and common ingredients such as minerals, fiber, and vitamins.

 

To overcome all of the problems associated with the selection and development of strains, as well as related manufacturing procedures, the researcher must work diligently. The most basic need for probiotics is that they contain enough bacteria to last until the expiration date. To provide health advantages in the host, probiotics must include specified strains and sustain a certain number of living cells.

 

Functional Food Ingredients Market Segment Analysis:

 

Based on Type, the functional food ingredients market is classified into Probiotics, Prebiotics, Proteins & Amino Acids, Phytochemicals & Plant Extracts, Omega-3 Fatty Acids, Carotenoids, and Fibers & Specialty Carbohydrates. The demand for carotenoids like beta-carotene, lutein, & zeaxanthin is likely to rise in the coming years as people become more aware of their health advantages.  Carotenoids are naturally occurring pigments found in most plants that provide protection. Plants, algae, & photosynthetic bacteria are the primary sources of these chemicals; nevertheless, people and animals must rely on food to obtain them. Quercetin, kaempferol, catechins, & anthocyanidins are examples of flavonoids. Flavonoids are well-known for their antioxidant & anti-inflammatory properties, as well as their function in the cardiovascular and nervous systems' strengthening. Plants, algae, & photosynthetic bacteria produce carotenoids, which are a diverse collection of naturally occurring pigments. They're widely utilized as safe, natural colorants in food, feed, and cosmetics. They're widely utilized in food, feed, and cosmetics as safe, natural colorants. They are known to be necessary for plant growth and photosynthesis, as well as a major source of vitamin A in people' diets. They lower the risk of a variety of chronic illnesses, including heart disease and macular degeneration.

 

 

Based on Application, the functional food ingredients market is classified into Food: Dairy, Bakery, Snacks, Meat, Infant food, others; and Beverages: Energy Drinks, Juices, Health Drinks. During the projection period, the energy drinks category in the beverages application segment is expected to grow at the fastest CAGR.  Energy drinks contain functional dietary elements such as vitamins, minerals, and proteins. Many energy drinks have been developed by firms to provide specific medical or health benefits, such as heart health promotion, immune improvement, and energy boost. Suppliers are striving to use new components that better satisfy the functional needs of consumers as the range of functional applications demanded by consumers grows. Suppliers of sports drinks are broadening their component options in order to improve sports nutrition advantages. Creatine and branch-chained amino acid drinks are becoming increasingly popular.

 

Functional Food Ingredients Market Regional Insights:

 

During the forecast period, North America is expected to have the greatest market share.

In 2023, the market is projected to be dominated by the North American region. The prevalence of chronic diseases as a result of hurried lives, as well as growing consumer knowledge of the health benefits of functional foods, are driving this dominance. Furthermore, the region has the greatest obesity rate. The functional food ingredients sector is putting more money into research projects in order to introduce new ingredients that will meet the diverse needs of potential customers in the region.

 

Over the projection period, Asia Pacific is expected to develop at the quickest rate in the market. Strong government regulations in the agriculture trade, which support functional foods & attract market investments, have given the region a lot of room to grow. Agriculture is a significant contributor to the GDPs of countries like India, China, South Korea, Taiwan, and Japan, therefore they rely on it to some level. Due to its growing population and rising disposable income, Asia Pacific has one of the largest functional ingredient marketplaces. Rapidly rising processed food consumption, combined with rising health and fitness awareness in developing nations, is a major element driving the region's functional food industry growth.

 

 

To understand the Functional Food Ingredients industry and study the market trends. Focusing on the Application, knowing the drivers and challenges of the same. Understanding the market segment geographically to gauge the growth potential.

 

The report includes analytical models like the Porter’s Five Forces, which helps in understanding the operating environment of the competition in the Functional Food Ingredients Market and thereby study the stakeholders to derive an efficient strategy; and PESTLE Analysis to gain a macro perspective of the Functional Food Ingredients Industry in terms of political aspects like Government stability, policies, trade regulation and economic aspects like market trends, taxes and inflation. It also provides the effect of environmental factors and influence of social and legal aspects on the Functional Food Ingredients Market.

 

Functional Food Ingredients Market Scope:

Functional Food Ingredients Market
Market Size in 2023	USD 120.69 Bn.
Market Size in 2030	USD 193.81 Bn.
CAGR (2024-2030)	7%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	By Type Probiotics Prebiotics Proteins & Amino Acids Phytochemicals
	By Application Food Beverages
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Functional Food Ingredients Market Key Players:

• Cargill, Incorporated (USA)
• BASF SE (Germany)
• Archer Daniels Midland Company (USA)
• DuPont (USA)
• Kerry Group (Ireland)
• Ajinomoto Co., Inc. (Japan)
• Koninklijke DSM N.V. (Netherlands)
• Ingredion Incorporated (USA)
• Tate & Lyle PLC (UK)
• Chr. Hansen Holding A/S (Denmark)
• Kemin Industries, Inc. (USA)
• BENEO (Germany)
• Royal Cosun (Netherlands)
• Roquette Frères (France)
• Soylent (USA)