Functional Food Ingredient Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 7.20 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Functional Food Ingredient Market Analysis
The Global Functional Food Ingredient Market is expected to grow at a CAGR of 7.2% during the forecast period.
Functional food ingredients in functional food are targeted to offer specific functions that are more than just basic nutrition. These ingredients play a vital role in protecting against acute and chronic diseases. Functional foods contain natural or synthetic ingredients that promote optimal health and provide energy-boosting benefits. Prebiotics are one such ingredient that promotes the growth of bacteria in the large intestine that are beneficial to intestinal health while inhibiting the growth of bacteria that are potentially harmful to intestinal health.
Consumers are now seeking microbiome ingredients such as probiotics, prebiotics, essential oils, hydrocolloids, and postbiotics in customized food and beverage products attributed to rising health awareness among consumers regarding nutritious convenience food. This factor has led food and beverage manufacturers to seek functional food ingredients, thereby, driving the growth of the market over the review period.
The functional food ingredients market is anticipated to grow in the forecast period owing to driving factors such as a rise in consumption of fortified food on account of increasing health awareness among consumers and demands for nutritious convenience food. Factors such as healthcare expenditure, adoption of preventive healthcare coupled with the desire of consumers awareness towards health advantages of functional foods are supporting regional growth. Nonetheless, the market opportunity lies in the growing health-conscious population in developing nations during the forecast period.
Functional Food Ingredient Market Trends
Escalating Demand for Functional and Fortified Food
Globally, the demand for functional and fortified food products is growing at a rapid pace due to increasing consumer preference for food products that are added with essential nutrients such as amino acids, proteins, and vitamins to meet their nutrient requirements. According to the research study on Food and Health published by International Food Information Council Foundation (IFIC), stated that 47% of United States consumers prefer food with additional nutrients. Hence, the food-fortification industry has become a major player in functional food ingredients including vitamins, minerals, and other nutrients. Moreover, the increasing incidence of nutrient deficiency among the global population is also driving the demand for functional food products. For instance, China is emerging as a production hub of fortified food due to the thriving demand for functional food products. A majority of the population in the country is dealing with iron and zinc deficiency which had resulted in an increased case of anemia and neural tube defect. This has, in turn, accelerated the demand for functional food ingredients to fortify food products with iron, zinc, and folic acid. The gaining traction for fortified food products among global consumers is encouraging key players in the market to innovate functional food ingredients with additional nutrient features. Hence, the development of fortified food products is anticipated to drive market growth over the forecast period.
North America Holds the Largest Share
The healthcare expenditure pattern in North America is growing each day. Therefore, consumers in the country are adopting preventive healthcare measures such as eating nutritious food. This factor is further driving the overall sales of functional food in the country. Furthermore, in North America, the sales of breakfast cereals are expected to benefit from the acceleration of a broad range of trends affecting the eating habits of Americans. A permanent shift away from three square meals a day to snacking and consuming multiple smaller meals throughout the day, rapid growth in the number of Americans actively engaged in fitness and weight management programs, and the desire for consumers to seek out alternative foods for breakfast are some of the factors boosting the demand for functional breakfast cereals. The prevalence of chronic illnesses as a result of fast-paced lives and growing consumer knowledge of the health advantages of functional foods are driving this dominance. The functional food ingredients industry is investing more money into research programs to introduce new ingredients that will meet the diverse needs of potential customers in the region. Cargill, Incorporated (US), Archer Daniels Midland Company (US), and DuPont are the major companies in the North American functional food ingredients market region. These companies have research and development labs where they create a wide range of functional food additives for the food and beverage industries, thereby, propelling market growth.
Functional Food Ingredient Industry Overview
Key players in this market include Cargill, Incorporated, BASF SE, Archer Daniels Midland Company, DuPont, Kerry Group, and Koninklijke DSM NV, among others. These players have large product portfolios that cater to the shifting preferences of consumers. This factor intensifies the competition among the existing players in the market. The players are focusing on launching new ingredients with the changing consumer preference for healthy food products. The companies are collaborating with various food manufacturers to offer different functional ingredients according to their requirements. Further, the market leaders are also focused on offering a customized solution to the end-user industry, thereby, expanding their presence further in the market.
Functional Food Ingredient Market Leaders
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Cargill, Incorporated
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Archer Daniels Midland Company
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BASF SE
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Kerry Group
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DuPont de Nemours, Inc.
*Disclaimer: Major Players sorted in no particular order
Functional Food Ingredient Market News
- October 2022: Teijin Limited launched the Teijin Meguro Institute Co., Ltd. to strengthen the company's development and manufacturing of probiotics for use in functional foods. It will provide functional food ingredients for probiotics products.
- April 2022: Life science company Bioberica will be launched new ingredients in the Vitafoods Europe held in Geneva, to enter two new health areas digestive health and skin and beauty. It has also unveiled a range of new functional food applications for its Collavant n2 native (undenatured) type II collagen ingredient for joint health.
- July 2021: Kerry Group, an Irish-based food company, announced that it is acquiring Biosearch Life for a USD150 million deal amount. Through this acquisition, Kerry Group can expand its healthy ingredient portfolios, such as probiotics and omega-3.
Functional Food Ingredient Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Vitamins
5.1.2 Minerals
5.1.3 Probiotics
5.1.4 Omega-3 & 6 Fatty Acids
5.1.5 Carotenoids
5.1.6 Proteins & Amino Acids
5.1.7 Other Types
5.2 Application
5.2.1 Bakery & Cereals
5.2.2 Dairy & Dairy Alternative Products
5.2.3 Meat & Seafood
5.2.4 Confectionery
5.2.5 Beverages
5.2.6 Other Applications
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Russia
5.3.2.5 Italy
5.3.2.6 Spain
5.3.2.7 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 India
5.3.3.3 Japan
5.3.3.4 Australia
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 United Arab Emirates
5.3.5.2 South Africa
5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Market Share Analysis
6.2 Strategies Adapted by Leading Companies
6.3 Company Profiles
6.3.1 Cargill, Incorporated
6.3.2 BASF SE
6.3.3 Archer Daniels Midland Company
6.3.4 DuPont de Nemours, Inc.
6.3.5 Arla Foods amba
6.3.6 Kerry Group
6.3.7 Koninklijke DSM NV
6.3.8 Ingredion Incorporated
6.3.9 Tate & Lyle PLC
6.3.10 Foodchem International Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER
Functional Food Ingredient Industry Segmentation
Functional foods are ingredients that offer health benefits that extend beyond their nutritional value. Some types contain supplements or other additional ingredients designed to improve health. The functional food ingredient market is segmented by type, application, and geography, By type, it is segmented into vitamins, minerals, probiotics, omega-3 & 6 fatty acids, carotenoids, proteins & amino acids, and other types. By application, it is segmented into bakery & cereals, dairy & dairy alternative products, meat & seafood, confectionery, beverages, and other applications. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle East, and Africa. For each segment, the market sizing and forecasts have been done based on value (in USD Million).
| Type | |
| Vitamins | |
| Minerals | |
| Probiotics | |
| Omega-3 & 6 Fatty Acids | |
| Carotenoids | |
| Proteins & Amino Acids | |
| Other Types |
| Application | |
| Bakery & Cereals | |
| Dairy & Dairy Alternative Products | |
| Meat & Seafood | |
| Confectionery | |
| Beverages | |
| Other Applications |
| Geography | |||||||||
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Functional Food Ingredient Market Research FAQs
What is the current Functional Food Ingredient Market size?
The Functional Food Ingredient Market is projected to register a CAGR of 7.20% during the forecast period (2024-2029)
Who are the key players in Functional Food Ingredient Market?
Cargill, Incorporated , Archer Daniels Midland Company , BASF SE , Kerry Group and DuPont de Nemours, Inc. are the major companies operating in the Functional Food Ingredient Market.
Which is the fastest growing region in Functional Food Ingredient Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Functional Food Ingredient Market?
In 2024, the North America accounts for the largest market share in Functional Food Ingredient Market.
What years does this Functional Food Ingredient Market cover?
The report covers the Functional Food Ingredient Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Functional Food Ingredient Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Functional Food Ingredients Industry Report
Statistics for the 2024 Functional Food Ingredients market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Functional Food Ingredients analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
