Global Functional Food Ingredients Market Report and Forecast 2024-2032

Global Functional Food Ingredients Market Outlook

The global functional food ingredients market size reached a value of about USD 112.73 billion in 2023. The market is further estimated to grow at a CAGR of 6.60% in the forecast period of 2024-2032 to reach a value of around USD 200.29 billion by 2032. 

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Rising Demand for Functional Beverages to Propel the Market Growth of Functional Food Ingredients

Based on application, the consumption of functional beverages, especially by millennials, is significantly growing, thereby driving the functional food ingredients market demand. The growing popularity of functional drinks can be attributed to the multiple benefits associated with their consumption, such as improved concentration and attention, reduced stress and anxiety, ability to support a good sleep and boost the immune system, and improved digestion. 

The functional beverages are available in several types, such as dairy-based beverages, probiotic drinks, energy drinks, sports drinks, meal replacers, caffeinated beverages, and vegetable and fruit beverages. The high intake of sports drinks and energy drinks by sports persons and ordinary people to boost their physical stamina is contributing to the market growth. 

Moreover, the shift from carbonated drinks to healthy functional beverages by consumers and their easy availability  via brick and mortar stores and online platforms is invigorating the market expansion. The initiatives taken by market players to innovate better ingredients to meet the demands of consumers are likely to aid the market growth over the forecast period.

Market Segmentation

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The functional food ingredients are bioactive compounds used in the manufacture of functional food products. They offer health benefits beyond basic nutrition and are obtained from sources like primary produce, marine sources, microorganisms, and inorganic raw materials. There are different functional food ingredients like vitamins, proteins, minerals, and fatty acids, among others.

The functional food ingredients market, by source, is bifurcated into:

• Natural

• Synthetic

Based on type, the market is segmented into:

• Vitamins

• Minerals

• Proteins and Amino Acids

• Prebiotics and Probiotics

• Omega-3 and Fatty Acids

• Phytochemicals and Plant Extracts

• Others

On the basis of application, the market is divided into:

• Food
  • Infant Food
  • Dairy Products
  • Bakery and Snacks
  • Meat and Seafood
  • Others
• Beverages

The regional markets for functional food ingredients can be divided into North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

Increasing Occurrence of Chronic Diseases and Lifestyle Disorders to Drive the Market Growth of Functional Food Ingredients

The increasing health consciousness among consumers and the improved living standards are resulting in the consumption of food with functional ingredients. The pandemic has accelerated the consumer shift towards food products with functional ingredients as now, people are more concerned about boosting their immunity and maintaining their health. The rising levels of obesity, increasing occurrences of cardiovascular diseases, and diabetes, among others, are leading to the growing preference for functional foods, thereby propelling the functional food ingredients market growth. Moreover, restaurants are rapidly reinventing food with functional ingredients on menus due to the changing consumer habits.

The government initiatives towards fighting widespread malnutrition among children and women are also fuelling the market growth of functional food ingredients. For instance, in 2018, the Government of India, under the National Nutrition Mission, decided to introduce fortified rations, which include vitamin- and supplement-added wheat and rice in 118 districts to improve nutrition outcomes among children and women.

Additionally, the growing technological advancements, like the use of artificial intelligence to systematically discover bioactive ingredients that address specific health needs, are expected to further augment the market growth over the forecast period.

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Key Players in the Global Functional Food Ingredients Market
 

The report gives a detailed analysis of the following key players in the global market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• Arla Foods Ingredients Group P/S

• Ajinomoto Co., Inc.

• Ingredion Incorporated

• Tate & Lyle PLC

• Kemin Industries, Inc.

• Beneo

• A&B Ingredients, Inc.

• Others

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis.

Key Highlights of the Report