Functional Food Ingredients Market by Type (Probiotics, Prebiotics, Proteins & Amino Acids, Phytochemical & Plant Extracts, Omega-3 Fatty Acids, Carotenoids, Fibers & Specialty Carbohydrates), Application, Source, and Region - Global Forecast to 2023
“The functional food ingredients market is projected to grow at a CAGR of 6.6%.”
The functional food ingredients market is estimated to be valued at USD 68.60 billion in 2018 and is projected to reach USD 94.21 billion by 2023, at a CAGR of 6.6%. Functional food ingredients play an important role in demonstrating specific physiological benefits, apart from the main nutritional benefits that are derived from food & beverages. The use of functional food ingredients in the manufacturing of functional food & beverage products is expected to provide nutritive health benefits, prevent/resist chronic diseases, or act as energy boosters. Functional food ingredients are used to enhance certain physiological functions such as improve gastrointestinal health, reduce cholesterol levels, prevent dental caries, and improve bone & gut health to prevent or cure various diseases. Regular consumption of functional food ingredients reduces the risk of several chronic diseases such as cardiovascular diseases, cancer, diabetes, high blood pressure, rickets, and osteoporosis. The growth in the functional food ingredients market is attributed to the growing health awareness among consumers, leading to an increase in the adoption of healthier diets. Food safety concerns and adherence to stringent international quality standards & regulations restrain the growth of the functional food ingredients market.
“Prebiotics projected to be the fastest-growing segment, by type, for functional food ingredients from 2018 to 2023.”
The prebiotics segment is projected to grow at the highest CAGR during the forecast period. Prebiotic ingredients improve the activity of good bacteria that are already present in the human or animal intestine. There are various prebiotic food products that claim to help manage weight, sharpen mental faculties, and improve infant health.
“The food segment is projected to be faster-growing for functional food ingredients from 2018 to 2023.”
The functional food ingredients market, by application, is estimated to be dominated by the food segment in 2018. It is also projected to be faster-growing through 2023. On a global level, the market for functional food is increasing as consumers prefer balanced diets and food that not only takes care of their appetite but also helps enhance their immunity. This, along with product innovations in terms of flavors and variant offerings, presents significant opportunities for the growth of applications in the functional food ingredients market. Factors that are further fueling consumer interest in functional foods are the rapid advances in science & technology, increase in health care costs, aging, and growth in interest in attaining wellness through diet.
“North America is set to lead the functional food ingredients market with the largest share in 2018.”
The North American market is estimated to be the largest in 2018. The market in the region is driven by increasing potential for the consumption of functional food ingredients and is expected to play an important role in the global market. This dominance is driven by the prevalence of chronic diseases due to hectic lifestyles and increasing awareness among consumers regarding the health benefits of functional foods. The functional food ingredient manufacturers focus on investing more in research programs with an aim to introduce new ingredients to address the diversified demands of potential customers in the region. The South American market is projected to grow at the highest CAGR from 2018 to 2023. The growth in demand for health & wellness products and increase in income levels in emerging countries, such as Brazil and Argentina, are the key factors that drive the functional food ingredients market growth in the region.
The breakdown of the primaries on the basis of company type, designation, and region, conducted during the research study, is as follows:
By Company Type: Tier 1: 23%, Tier 2: 30%, and Tier 3: 47%
By Designation: C-level: 24%, D-level: 36%, and Others: 40%
By Region: North America: 20%, Europe: 30%, Asia Pacific: 45%, and RoW: 5%
The key functional food ingredient manufacturing players include the following:
Archer Daniels Midland Company (US)
Koninklijke DSM N.V. (Netherlands)
BASF SE (Germany)
Royal Cosun (Netherlands)
Ingredion Incorporated (US)
Arla Foods (Denmark)
Tate & Lyle (US)
Kerry Group (Ireland)
Chr. Hansen (Denmark)
Kemin Industries (US)
Roquette Frères (France)
The key players in the functional food ingredients market adopted expansion & investments as their key growth strategy to expand and develop new innovative products to capture the market share and make profits. New product launches are the second-most important growth strategy to be adopted by market players.
The report analyzes the functional food ingredients market across different types and regions. It aims at estimating the size and future growth potential of this market across different segments such as type, application, source, and region. The report also includes an in-depth competitive analysis of the key players in the market, along with their company profiles, recent developments, and key market strategies.
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To get a comprehensive overview of the global functional food ingredients market
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