The global Functional Ingredients Market size is expected to value at USD 96.1 billion by 2026. The market is subject to witness substantial growth due to the rising health consciousness along with the growing need for healthy and comfort foods. Functional ingredients are commonly termed natural ingredients that consist of energy boosters, health-enriching elements, and disease averting characteristics.
Such advantages of functional ingredients are generating massive demand in the food and beverage industry, thus boosting the growth of the industry in the coming years. Additionally, growing preference towards the latest trends involving packaged food containing high content of vitamins, minerals, and natural extracts is augmenting the growth of the market by creating a suitable environment for their regular use in the foods and beverages industry. Globally, the functional ingredients market is predicted to grow at a CAGR of 5.9% in the forecast period, providing numerous opportunities for market players to invest in 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 the 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 extend to the pharmaceutical sector as a coating material due to properties such as lower viscosity, large solid content, and higher water solubility. The substantial growth of the pharmaceutical sector across the globe is expected to drive demand for functional ingredients over the forecast period. Probiotics are considered as one of the key segments showcasing the highest growth in the functional ingredients industry in the coming years.
The increasing occurrence of health disorders like diabetes, obesity, and digestive disorders among the geriatric population across the globe is further propelling the growth of the market in recent years. The recent developments of innovative products and rising capital funding by major producers are fueling the demand for the functional ingredients market across different industry verticals. Furthermore, the rise in the need for premium personal care products consisting of organic and herbal variants is 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 a high nutritional diet is on the rise.
The functional ingredients are typically termed as bioactive compounds that are utilized during the 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 a high nutritional value offering excess financial benefits to the food and beverages industry. Applications of the functional ingredients also involve the production of nutraceuticals.
The functional ingredients industry is divided into regional market segments 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 the presence of prominent industry players in the region.
Asia-Pacific region is predicted to hold a major market share in the functional ingredients market with massive growth in the forecast period. Countries such as India, China, and South Korea are leading the Asia-Pacific market with favorable government regulations to encourage the 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
• the U.S.
• the UK
• the Asia Pacific
• Central & South America
• Middle East & Africa
Research Support Specialist, USA
FREE sample contains market data points, ranging from trend analyses to market estimates & forecasts. See for yourself...