Global Functional Food Ingredient Market - Growth, Trends, and Forecast (2018 - 2023)
The global functional food ingredient market was valued at USD 2.54 billion in 2017 and is projected to reach USD 3.18 billion by 2023, at a CAGR of 6.2%, during the forecast period from 2018 to 2023. Major producers have been engaged in the strategies of focusing on innovation in products, expanding current operations and commencing new ones, and investing in products of other companies, among others.
The rising incidence of chronic diseases is driving the consumers to shift toward healthier food options. Increasing consumer interest, and a better understanding of the immunity enhancing property of proper diet and food habits, are some of the key factors driving the growth of the global functional food ingredients market. Strict legislation imposed by governments across the globe prevents the expansion of the functional food ingredient market. In many countries, strict regulations are imposed on advertisements and labeling of products. Functional food ingredients are not easily available in supermarkets and grocery stores, and often tend to be expensive. Many consumers are unaware of how these products can be incorporated into their daily dietary intake. These factors, collectively, are obstructing the growth of the market.
However, functional food ingredient product sales have been and are expected to continue rising at a brisk rate. The high-rate of innovation in this field can lead to changes in the purpose of the product and re-position the product or, eventually, shift them from one target segment to another.
The global functional food ingredient market is segmented by type into - proteins & amino acids, vitamins, minerals, prebiotics, probiotics, hydrocolloids, essential oil, omega-3 & 6 fatty acids, and flavonoids & carotenoids. The market is segmented into confectionery, fortified dairy products, bakery and cereals, meat, fish & eggs, and others - based on application.
North America holds the maximum market share followed by Europe. Asia-Pacific region is growing with a higher rate, Countries, like China and India are driving the growth rate of functional food ingredient market in the region due to the intense economic growth, along with increase in number of working population.