Functional Food Ingredients Market

Functional Food Ingredients Market Outlook (2023 to 2033)

Revenue from the Global Functional Food Ingredients Market is estimated at US$ 16,504.4 Million in 2023, and is expected to reach US$ 29,592.0 Million by the end of 2033. The market is anticipated to grow at a value CAGR of 6.3% over forecast period, owing to buoyant demand for protein-based ingredient across the versatile end use industries.

Functional Food Ingredients Consumption Analysis (2018 to 2022) Vs. Market Estimations (2023 to 2033)

During historical period of assessment (2018 to 2022), the functional food ingredients market expanded at 5.5% value CAGR, attributing to health-conscious consumer. The functional food ingredients incurred the sales of US$ 11,892.3 Million in 2018 and reached the value of US$ 15,352.4 Million by 2022.

Functional food ingredients like prebiotics, vitamins, protein and minerals offers health benefits beyond basic nutrition. This particular category has gained the spotlight in the eyes of manufacturers from multiple industry to develop novel products that supports consumer health and wellbeing.

In the forecast period, the functional food ingredients market is anticipated to register the value of US$ 29,592.0 Million by end of 2033 and will grow at value CAGR of 6.3%, owing to growing consumer expenditure on value added wholesome food products.

What are the Key Trends in the Market for Functional Food Ingredients?

“Focus on Credible Labeling and Certifications”

The manufacturers of global food and nutraceutical industry are focused on providing a clean label, organic, natural, non-GMO, and other authenticated certifications to ensure the quality of the products. The increasing number of health-conscious consumers and rising spending power of the consumer on food and beverage products are driving the demand for organic, natural, and clean label products. Thus, the key players in the global functional food ingredients market are focused on providing certifications such as organic, natural, clean label, Non-GMO to attract more clients from the global food and beverage and nutraceutical industry.

Key players such as Cargill, Ingredion Inc., DUPONT, and others are focused on providing an organic, clean label, Non-GMO certifications to ensure the quality and authenticity of the functional food ingredients.

“Savvy Consumers to Accelerate Market Growth”

In recent years, consumers are becoming highly aware of health and health-related issues. The increasing population, along with rising urbanization, pollution, global warming are the key factors that are leading to increased disease and health issues among consumers. Thus the consumers are seeking healthy and nutritionally rich food products that can fulfill their nutritional demand. Owing to increasing demand for functional food products, manufacturers are seeking healthy functional ingredients to produce high-quality products. Thus, the demand for functional food ingredients is increasing from the global food and beverage, nutraceutical industries.

“Changes In Lifestyle And The Increase Of Chronic Diseases”

Growing emphasis on improving lifestyle habits is leading to inclination towards functional foods in the daily routine to support physical and mental health, particularly among younger consumers. Further, the prevalence of chronic non-communicable diseases like high blood pressure, weight issues and type-2 diabetes has increased, leading to concerns about escalating costs of healthcare and reduced quality of life. Also, the growing chronic disease across the globe, has moved consumer towards natural as well as healthy ingredients which aims to support well-being of consumer.

Moreover, modern lifestyles and longer life are also linked to various mental health problems such as depression, poor concentration and loss of memory. Thus, in prevention of such diseases, consumers are focused on consumption of healthy and nutritional rich products, which is expected to create huge opportunities for the global functional food ingredients market.

“Lack of Awareness in Underdeveloped Countries”

Functional food ingredients offer various health benefits and are accredited by various large as well as medium industries across the globe. These particular category have shown positive growth trajectory in developed country, however there is lack of awareness for these ingredients in underdeveloped countries.

The functional food products offer many multiple benefits to the consumer than any other food product. Besides, functional food products are costlier compared to others. The low incomes of consumers and low penetration of functional food products in underdeveloped countries are restricting the growth of the global functional food ingredients market.

Country-wise insights

Which region is dominating the global Functional Food Ingredients market?

North America is leading in the functional food ingredients market with the market value of US$ 4,641.1 Million for 2023. Furthermore, United States holds the highest value share of above 60% in the North America market space, since modern consumers in the United States are highly inclined towards vitamins, minerals and natural nutrients food products and ingredients.

What is demand outlook for Functional Food Ingredients in Middle East & Africa?

The functional food ingredients value for Middle East & Africa is predicted at US$ 705.8 Million for year 2023 and is expected to grow by 4.8% by end of 2033. Inclination of Middle East & Africa consumer towards clean label and organic products is expected to bolster the sales of functional food ingredient in the forthcoming years.

Category-wise insights

Which type of functional food ingredient is gaining high demand?

On the basis of type segment, the functional food ingredient market is bifurcated into vitamins, minerals, prebiotics, probiotics, carotenoids and proteins. Vitamin has gained the high demand across the globe owing to consumer preferring vitamin supplement and food products to meet the basic nutrient. The vitamins type incurred revenue of US$ 3,989.1 Million in 2023 and is anticipated to expand at 6.8%.

At what rate, demand for Functional Food Ingredients is growing in beverage industry?

The estimated demand of functional food ingredients in beverage industry is US$ 6,746.2 Million for 2023 and is predicted to grow at 6.9% CAGR, attributing to gradual shift of consumers towards functional beverages that offers numerous health benefits.

Competitive Dashboard

Functional food ingredients manufacturers are acquiring globally recognized certification that are accepted across the globe. Some salient certificates includes Good Manufacturing Practice (GMP) Certificate, ISO 9001: 2008, and HACCP, HALAL, Kosher, FSSAI and more. Entry Level are taking the cue from the established ones in standardizing their extraction processing. Moreover, in established markets, consumers are more inclined towards buying value-added products, preferably with natural ingredients, plant-based and other alternatives that increasingly form part of a healthy and nutritional diet.

Key producers engaged in production of functional food and ingredients are anticipated to expand their production capacity and incorporation latest technologies in manufacturing facility to formulate quality ingredients. Also, they are seeking various accreditations such as Vegan, Organic, Non-GMO, clean label regulatory bodies to have a competitive edge and expand their customer base through new product development and frequent launches of novel product lines. Furthermore, the company is also aiming towards expanding its global presence through successful strategic mergers and acquisitions which will drive the sales performance.

• ADM Milling offers superior functional ingredients and extensive expertise to help food and beverages manufacturers to formulate the finest functional foods, including beverages, nutrition bars, cereals, snacks, baked goods, dairy, meat analogy, and other processed foods.
• Cargill, Incorporated offer organic functional food ingredient under its robust portfolio. Clean label and non-GMO are the future direction for the food, and nutraceutical industries. These label claims assure consumers that the product is healthy and free from artificial additives or preservatives.

Royal Ingredients Group. focuses on meeting market demands by increasing its production capacity and developing functional ingredients as per the recent trends and understanding consumers insights. The company focuses on being at the forefront and aims to provide innovative application solutions for various dietary supplement and food industries.

• A&B Ingredients focuses on innovation, research to explore the further benefits of functional food ingredients. It has carved a niche for itself through process and technology development, underpinned by its robust research and development capabilities.
• Tate & Lyle Plc has received international accreditations such as USDA, FDA, HALAL, and Kosher. Through these certifications, it assures that it produces quality functional food ingredients products and is focused on delivering safe, hygienic, and natural products to suppliers and other manufacturers.

Functional Food Ingredients Industry Report Scope

Functional Food Ingredients Industry Research by Category

By Type:

• Vitamins
• Minerals
• Prebiotics & Dietary Fibers
• Probiotics
• Carotenoids
• Proteins
• Omega-3 Fatty Acids

By End Use:

• Beverages
• Dairy & Dairy Based Products
• Infant Food
• Bakery & Confectionery

By Region:

• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa

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