Market Size of Functional Food Ingredient Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 7.20 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Functional Food Ingredient Market Analysis
The Global Functional Food Ingredient Market is expected to grow at a CAGR of 7.2% during the forecast period.
Functional food ingredients in functional food are targeted to offer specific functions that are more than just basic nutrition. These ingredients play a vital role in protecting against acute and chronic diseases. Functional foods contain natural or synthetic ingredients that promote optimal health and provide energy-boosting benefits. Prebiotics are one such ingredient that promotes the growth of bacteria in the large intestine that are beneficial to intestinal health while inhibiting the growth of bacteria that are potentially harmful to intestinal health.
Consumers are now seeking microbiome ingredients such as probiotics, prebiotics, essential oils, hydrocolloids, and postbiotics in customized food and beverage products attributed to rising health awareness among consumers regarding nutritious convenience food. This factor has led food and beverage manufacturers to seek functional food ingredients, thereby, driving the growth of the market over the review period.
The functional food ingredients market is anticipated to grow in the forecast period owing to driving factors such as a rise in consumption of fortified food on account of increasing health awareness among consumers and demands for nutritious convenience food. Factors such as healthcare expenditure, adoption of preventive healthcare coupled with the desire of consumers awareness towards health advantages of functional foods are supporting regional growth. Nonetheless, the market opportunity lies in the growing health-conscious population in developing nations during the forecast period.
Functional Food Ingredient Industry Segmentation
Functional foods are ingredients that offer health benefits that extend beyond their nutritional value. Some types contain supplements or other additional ingredients designed to improve health. The functional food ingredient market is segmented by type, application, and geography, By type, it is segmented into vitamins, minerals, probiotics, omega-3 & 6 fatty acids, carotenoids, proteins & amino acids, and other types. By application, it is segmented into bakery & cereals, dairy & dairy alternative products, meat & seafood, confectionery, beverages, and other applications. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle East, and Africa. For each segment, the market sizing and forecasts have been done based on value (in USD Million).
| Type | |
| Vitamins | |
| Minerals | |
| Probiotics | |
| Omega-3 & 6 Fatty Acids | |
| Carotenoids | |
| Proteins & Amino Acids | |
| Other Types |
| Application | |
| Bakery & Cereals | |
| Dairy & Dairy Alternative Products | |
| Meat & Seafood | |
| Confectionery | |
| Beverages | |
| Other Applications |
| Geography | |||||||||
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Functional Food Ingredient Market Size Summary
The functional food ingredients market is poised for significant growth, driven by increasing consumer awareness and demand for foods that offer health benefits beyond basic nutrition. These ingredients, which include probiotics, prebiotics, essential oils, and hydrocolloids, are integral in promoting optimal health and preventing diseases. The rising preference for fortified foods, particularly in developing regions, is a key factor propelling market expansion. Consumers are increasingly seeking foods enriched with essential nutrients like amino acids, proteins, and vitamins, which has led to a surge in the food-fortification industry. This trend is particularly evident in countries like China, where nutrient deficiencies have heightened the demand for fortified products. The market is further bolstered by the growing healthcare expenditure and preventive healthcare measures in regions like North America, where consumers are shifting towards nutritious and functional food options.
The competitive landscape of the functional food ingredients market is characterized by the presence of major players such as Cargill, Incorporated, BASF SE, Archer Daniels Midland Company, DuPont, and Kerry Group. These companies are actively investing in research and development to innovate and expand their product offerings in response to changing consumer preferences. Collaborations with food manufacturers to provide customized functional ingredients are also a strategic focus for these market leaders. Recent developments, such as the launch of new probiotics by Teijin Limited and the acquisition of Biosearch Life by Kerry Group, highlight the ongoing efforts to enhance ingredient portfolios and cater to emerging health trends. The market's growth trajectory is supported by the increasing incidence of chronic illnesses and the growing consumer knowledge of the health advantages of functional foods, driving the demand for innovative and nutrient-rich food products.
Functional Food Ingredient Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Vitamins
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2.1.2 Minerals
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2.1.3 Probiotics
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2.1.4 Omega-3 & 6 Fatty Acids
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2.1.5 Carotenoids
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2.1.6 Proteins & Amino Acids
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2.1.7 Other Types
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2.2 Application
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2.2.1 Bakery & Cereals
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2.2.2 Dairy & Dairy Alternative Products
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2.2.3 Meat & Seafood
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2.2.4 Confectionery
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2.2.5 Beverages
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2.2.6 Other Applications
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 United Kingdom
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2.3.2.3 France
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2.3.2.4 Russia
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2.3.2.5 Italy
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2.3.2.6 Spain
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2.3.2.7 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 India
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2.3.3.3 Japan
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2.3.3.4 Australia
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle-East and Africa
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2.3.5.1 United Arab Emirates
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2.3.5.2 South Africa
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2.3.5.3 Rest of Middle-East and Africa
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Functional Food Ingredient Market Size FAQs
What is the current Functional Food Ingredient Market size?
The Functional Food Ingredient Market is projected to register a CAGR of 7.20% during the forecast period (2024-2029)
Who are the key players in Functional Food Ingredient Market?
Cargill, Incorporated , Archer Daniels Midland Company , BASF SE , Kerry Group and DuPont de Nemours, Inc. are the major companies operating in the Functional Food Ingredient Market.
