The functional food ingredients market has witnessed significant growth, rising from $110.61 billion in 2023 to $120.27 billion in 2024, at a CAGR of 8.7%. Factors such as increasing health consciousness and collaborations between food and pharmaceutical industries are contributing to this trend. By 2028, the market is anticipated to reach $175.25 billion, growing at a CAGR of 9.9%, driven by innovations in personalized nutrition and plant-based ingredients.
Major Driver In The Functional Food Ingredients Market
The functional food ingredients market is set to experience growth fueled by the escalating demand for fortified food and beverage products. Fortified foods, which lack natural nutrients but have essential nutrients added to them, are gaining popularity due to increased health consciousness, rising disease prevalence, and growing consumer disposable income. The medicinal properties of these foods, offering healing benefits along with energy and essential nutrients, are motivating consumers to invest more in healthy food products. In April 2022, a report by Common Thread Collective revealed that global food and beverage sales reached $435.3 billion in 2021 and surged to $506 billion in 2022. The market is projected to reach $857 billion by 2025, indicating a significant upward trajectory driven by the rising demand for fortified food and beverage products.
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Functional Food Ingredients Market Competitive Landscape
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., Ginkgo BioWorks, Naturex, Beneo, Fuerest Day Lawson, The Every Company, Nuritas, Foodchem International Corporation, Global Specialty Ingredients (GSI), A&B Ingredients, Shiru Inc., Native Pet, Sophie's Bionutrients Pte. Ltd., Clean Food Group, Paragon Pure, Canomiks
Key Functional Food Ingredients Market Trend
Innovative product development is a key focus in the functional food ingredients market. Companies are creating new products, such as dietary supplements, to meet market demands. For instance, in November 2021, The Nature's Bounty Co., a U.S.-based health and wellness brand, introduced a line of jelly bean vitamins. These fruit-flavored, vegetarian vitamins contain no gelatin or artificial sweeteners and are designed to support overall health, immunity, vitality, and sleep, offering a tasty and nutritious alternative for both adults and children.
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Functional Food Ingredients Market Segmentation
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
By Geography:The regions covered in the functional food ingredients market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the functional food ingredients market in 2023.
The Functional Food Ingredients Global Market Report 2024 furnishes information about the global functional food ingredients market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
