In terms of revenue, the Global Functional Food Ingredients Market is expected to reach by 2030, growing at a CAGR (Compound Annual Growth Rate) of 7.2% from 2023 to 2030.
Several factors, including increasing consumer interest in clean-label products, shifting regulations, and growing consumer awareness, drive the food and beverage industry's market development. The industry is driven by growing demand for clean-label products and rising cases of severe health issues such as diabetes, heart disease, etc. Major manufacturers are investing in and introducing innovative products, leading to a significant demand for functional ingredients.
In the U.S., the probiotics industry is characterized by specific segments catering to different demographics. Demand for probiotics-based food and beverage products is expected to drive market growth. Consumers' health consciousness, increasing incomes, and urbanization also increase the demand for fortified and nutritious food and beverages. Millennials are increasingly adopting healthy food in their diets, and functional ingredients are being recognized for their weight management benefits. They are also utilized in pharmaceutical applications for their solubility and content.
Key Highlights from Report
· Based on the Type segmentation, the Probiotics segment is anticipated to dominate the Functional Food Ingredients market with the largest market share in the forecast period considering the rising customer awareness regarding the health benefits of probiotics and increasing demand for probiotic-rich food and beverage products like yogurt, kefir, and probiotic supplements.
· Furthermore, based on the segmentation of Health Benefits, the Cardiovascular Health segment accounted for the maximum CAGR during the forecast period. The increasing importance of a healthy and nutritious diet in treating cardiovascular diseases, rising cases of cardiovascular diseases, and growing emphasis on prevention are driving the demand for the segment.
· Moreover, based on the Application segmentation, the Food segment dominated the Functional Food Ingredients market, which is anticipated to continue. Micronutrients are majorly employed in the food industry to enhance the nutritional content of food products and give certain health advantages. This is responsible for its rapid rise.
· In addition, based on the Source segmentation, the Natural segment dominated the Functional Food Ingredients market, which is anticipated to continue because of the rising consumer demand for clean-label and natural ingredients-based products.
· In terms of Region, North America held the major market share in 2022 and is likely to be the most gainful market in the future. Elements including high consumer awareness and demand for healthy and nutrient-rich food products are aiding this market expansion.
Functional Food Ingredients are substances, most commonly probiotics, omega-3 fatty acids, vitamins, minerals, and antioxidants, providing additional health benefits beyond essential nutrition. These ingredients are used to enhance the nutritional content of food products. Probiotics are helpful bacteria that help control and enhance gut health and boost the immune system. The benefit of consuming vitamins and minerals is that it helps in smooth functioning of various body metabolisms, and antioxidants help reduce the risk of heart disease and some types of cancer. Functional Food Ingredients are increasingly popular as consumers seek to improve their health through their diet.
The global demand for micronutrient-based food items is growing due to changing consumer preferences and rising disposable income in emerging countries, resulting in changing lifestyles. This demand is also fueled by the rising incidence of nutrient deficiencies among the global population. Because of the high demand for functional foods, China is becoming a significant producer of fortified food products. In a country like China, a significant chunk of the population faces vitamin and mineral deficiency, resulting in a substantial rise in severe health issues and, thus, a rise in demand for micronutrient food products.
However, some key restraints for the Functional Food Ingredients market include high costs associated with research and development, stringent regulations and labeling requirements, and limited consumer awareness and acceptance of functional foods.
North America Functional Food Ingredients market is expected to witness a noteworthy development with a significant growth rate over the analysis period. A significant number of customers in the region are aware of the health benefits of Functional Food Ingredients, and growing cases of severe health problems like chronic illness led to increased demand for healthy products as a preventive major, boosting the demand for functional food ingredient market. In addition, the North America n population is highly health-conscious and actively seeks products that offer additional health benefits. The presence of major industry players and advanced food processing technologies further support the growth of North America 's Functional Food Ingredients market.
The Global Functional Food Ingredients Market is Segmented as follows
- Health Benefits
- Gut Health
- Cardiovascular Health
- Nutritive Health
- Weight Management
- Other Health Benefits
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
List of the Key Players of the Global Functional Food Ingredients Market is
Cargill Inc. (U.S.), BASF SE (Germany), Archer Daniels Midland Company (U.S.), DuPont de Nemours Inc. (U.S.), Arla Foods Amba (Denmark), Kerry Group (Ireland), Koninklijke DSM NV (Netherlands), Ingredion Inc. (U.S.), Tate & Lyle PLC (UK), Foodchem International Corporation (China)
The Global Functional Food Ingredients Market Scope can be Tabulated as below
|Market Size Provided for Years
|2017 - 2030
|2017 - 2021
|2023 - 2030
|Regions & Counties Covered
|Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis