What Is The Current and Historic Market Size Analysis Of Functional Food Ingredients Market?
The functional food ingredients market has seen considerable growth due to a variety of factors.
• The market size of functional food ingredients has experienced robust growth in the past few years. It is expected to expand from $120.27 billion in 2024 to $130.79 billion in 2025, with a compound annual growth rate (CAGR) of 8.7%.
Factors such as heightened health awareness, a rise in lifestyle-related illnesses, consumer preference for natural and clean label products, advancements in nutraceuticals research, and the synergistic efforts of food and pharmaceutical industries have contributed to its growth during the historic period.
What Is the Forecasted Market Size and Growth Rate for The Functional Food Ingredients Market?
The functional food ingredients market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of functional food ingredients is predicted to undergo significant expansion in the upcoming years, with an anticipated worth of $194.54 billion by 2029 at a Compound Annual Growth Rate (CAGR) of 10.4%.
The projected surge in the forecast period can be connected to personal dietary needs and customization, amalgamation of functional elements in regular foodstuffs, emphasis on mental clarity and health, an increase in the elderly demographic, and developments in e-commerce and trends of direct-to-consumer. The upcoming trends during the forecast period are projected to be improvements in food biotechnology, advancement in food science and technology, increasing demand for plant-derived ingredients, attention towards ingredients improving gut health, and the appearance of adaptogens.
Which Factors Are Boosting Growth In The Functional Food Ingredients Market?
The functional food ingredients market is likely to benefit from the growing demand for fortified food & beverage items. Fortified foods, which are essentially functional foods without any inherent nutrients, have additives to boost nutritional value and impart a range of health benefits. Their uptake is on the rise, given the heightened awareness of health consciousness among consumers, a surge in disease prevalence, and increased disposable income. The health advantages these foods offer beyond delivering energy and vital nutrients are prompting customers to invest more in nutritious food products. For instance, a Common Thread Collective report in April 2022 revealed that global food and beverage sales stood at $435.3 billion in 2021 and escalated to $506 billion in 2022. This figure is projected to hit $857 billion by 2025. As a result, the surging demand for fortified food & beverage items is poised to fuel growth in the functional food ingredients market.
What Key Areas Define The Segmentation Of The Global Functional Food Ingredients Market?
The functional food ingredients market covered in this report is segmented –
1) By Type: Probiotics And Prebiotics, Carotenoids, Dietary Fibers, Fatty Acids, Vitamins, Minerals, Others
2) By Source: Natural Synthetic
3) By Application: Beverages, Dairy Products, Infant Food, Bakery And Confectionery, Others
Subsegments:
1) By Probiotics And Prebiotics: Probiotic Strains, Inulin, Oligosaccharides, Other Probiotic And Prebiotic Ingredients
2) By Carotenoids: Beta-Carotene, Lutein, Zeaxanthin, Lycopene, Other Carotenoids
3) By Dietary Fibers: Soluble Fiber, Insoluble Fiber, Functional Fiber
4) By Fatty Acids: Omega-3 Fatty Acids, Omega-6 Fatty Acids, Medium-Chain Triglycerides (MCTs), Other Fatty Acids
5) By Vitamins: Water-Soluble Vitamins, Fat-Soluble Vitamins
6) By Minerals: Macrominerals, Trace Minerals
7) By Others: Plant Extracts, Amino Acids, Phytosterols, Other Functional Ingredients
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How Are Emerging Trends Reshaping The Dynamics Of The Functional Food Ingredients Market?
Major players in the market for functional food ingredients are concentrating their efforts on producing clean label variants. These clean label functional food ingredients are constituents derived naturally, which not only offer health advantages but are also minimally processed. They contain familiar ingredients that are easy for consumers to comprehend. For example, in February 2024, Ingredion Incorporated, a company based in the US that specializes in creating diverse sweeteners, starches, and nutritional ingredients, launched NOVATION® Indulge 2940. This is the first functional native corn starch offering unique gelling and film-forming attributes while maintaining clean label standards. This ground-breaking starch suits dairy products and alternative cheese applications, enhancing texture and mouthfeel without compromising on the use of recognizable ingredients that consumers demand. This progress tackles the difficulties surrounding the creation of clean label products while contributing to sustainability goals by improving functionality in uses such as vegan pizza cheese and coated fried foods. It effectively empowers brands to offer products of high quality that align perfectly with health-oriented trends.
Who Are the Key Players in the Functional Food Ingredients Market?
Major companies operating in the functional food ingredients market include:
• Cargill Incorporated
• Nestle
• Archer Daniels Midland Company
• BASF SE
• Arla Foods amba
• Koninklijke DSM NV
• Ajinomoto
• Kerry Group
• Ingredion Incorporated
• Glanbia plc
• DuPont Nutrition & Biosciences
• FMC Corporation
• Roquette Frères
• Royal Cosun
• Ashland
• Tate & Lyle PLC
• Corbion N.V.
• Brevel
• Chr. Hansen Holding A/S
• Kemin Industries Inc.
• Naturex
• Beneo
• The Every Company
• Nuritas
• Foodchem International Corporation
• Global Specialty Ingredients (GSI)
• A&B Ingredients
• Shiru Inc.
• Sophie's Bionutrients Pte. Ltd.
• Clean Food Group
• Paragon Pure
• Canomiks
What Is The Most Dominant Region In The Functional Food Ingredients Market?
North America was the largest region in the functional food ingredients market in 2024. Europe was the second-largest market in the functional food ingredients market. The regions covered in the functional food ingredients market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
