The global Functional Ingredients Market size is expected to value at USD 96.1 billion by 2026. The market is subject to witness a substantial growth due to the rising health consciousness along with the growing need for healthy and comfort foods. Functional ingredients are commonly termed as natural ingredients that consists of energy boosters, health enriching elements, and disease averting characteristics.
Such advantages of functional ingredients are generating massive demand in food and beverage industry, thus boosting growth of the industry in coming years. Additionally, growing preference towards latest trends involving packaged food containing high content of vitamins, minerals, and natural extracts is augmenting growth of the market by creating a suitable environment for their regular use in foods and beverages industry. Globally, the functional ingredients market is predicted to grow at CAGR of 5.9% in forecast period, providing numerous opportunity for market players to invest for research and development in the market.
Rising health awareness among consumers and changing food patterns across the globe are some of the key factors driving demand for the high nutrient content diet. Other factors responsible for driving growth of the functional ingredients industry are increasing personal expenditure, rise in urbanization and preference for fortified convenience foods with high nutritional content. Shifting focus towards food products with high nutritional content by younger population in their regular diet routine is propelling growth the market over the forecast period. Functional ingredients are proved to be vital for the treatment of obesity management.
Applications of the functional ingredients further extends to pharmaceutical sector as a coating material due to properties such as lower viscosity, large solid content, and higher water solubility. With substantial growth of the pharmaceutical sector across the globe is expected drive demand of the functional ingredients over the forecast period. Probiotics is considered as one of the key segment showcasing highest growth in the functional ingredients industry in coming years.
Increasing occurrence of health disorders like diabetes, obesity, and digestive disorders among geriatric population across the globe is further propelling growth of the market in recent years. With the recent developments of innovative products and rising capital funding by major producers are fueling demand of the functional ingredients market across different industry verticals. Furthermore, rise in need for premium personal care products consisting of organic and herbal variants are further contributing to the expansion of the market in upcoming years. Application of the functional ingredients is further extending to sports sectors as increasing demand for rice protein and high nutritional diet is on the rise.
The functional ingredients are typically termed as a bio-active compound that are utilized during production of functional food products. The functional ingredients are mainly obtained from various sources similar to primary harvest, marine resources, microorganisms and inorganic base materials. Functional ingredients are also produced from food processing waste with high nutritional value offering excess financial benefits to food and beverages industry. Applications of the functional ingredients also involves production of nutraceuticals.
The functional ingredients industry is divided into regional market segment such as North America, Europe, Asia-Pacific, Latin America and Africa. North America has shown major growth in recent years owing to the rising health concerns and growing health problems similar to diabetes, obesity, and digestive diseases coupled with presence of prominent industry players in the region.
Asia-Pacific region is predicted to hold major market share in the functional ingredients market with massive growth in forecast period. Countries such as India, China and South Korea are leading the Asia-Pacific market with favorable government regulations to encourage adoption of functional foods and increasing investment by industry players considering potential market opportunities in the region. The key players in the functional ingredients industry are Archer Daniels Midland Company, Ingredion Inc., Golden Grain Group Ltd., FMC Co., Omega Protein Co., NutriBiotic, Cargill Inc.
Functional Ingredients Product Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2026)
• Modified starch
• Omega-3 (EPA, DHA, ALA)
• Conjugated linoleic acid
• Rice protein
• Protein hydrolysate
• Mung bean protein
Functional Ingredients Application Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2026)
• Food & beverages
• Personal care
• Animal feed
Functional Ingredients Regional Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2026)
• North America
• Asia Pacific
• Central & South America
• Middle East & Africa
Research Support Specialist, USA