Functional Food Ingredients Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Functional Food Ingredients Market is segmented By Type (Vitamins, Minerals, Prebiotics, Omega-3 & 6 Fatty Acids, Essential Oils, Hydrocolloids, Others), By Application( Confectionaries, Dairy Products, Soy Products, Fruits & vegetables), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Functional Food Ingredients Market Size

Global Functional Food Ingredients Market reached USD 84.4 billion in 2022 and is expected to reach USD 147.8 billion by 2031 growing with a CAGR of 7.1% during the forecast period 2024-2031. One trend in the functional food ingredients market is the growing demand for health-promoting ingredients.

For instance, Marine-derived compounds offer omega-3 fatty acids, carotenoids, and phenolic compounds for health maintenance and chronic disease prevention.

The functional food ingredients market is experiencing significant growth globally. Consumers are increasingly seeking food products that offer health benefits beyond basic nutrition. Key drivers include the rising focus on preventive healthcare and the demand for natural, health-promoting solutions. Functional food ingredients such as probiotics, fiber, and vitamins are in high demand as consumers prioritize their well-being.

The increasing health consciousness among consumers is a key driver in the functional food ingredients market. For instance, the demand for functional food ingredients like probiotics has surged due to their recognized digestive health benefits. Eating more probiotic foods can increase the number of good bacteria in your body. Fermented foods, such as yogurt, kombucha, and miso, are good sources since they contain a host of these bacteria.

Market Summary

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Market Dynamics

Growing Consumer Demand for Nutraceutical and Bioactive Ingredients Drives Functional Food Ingredients Market Expansion

Functional food ingredients are those that offer Health-promoting Ingredients, disease prevention, energy boosting, and wellness. The components that will be added to the finished product are intended to be an extract of the bioactive compound from a natural substance, and individuals are also looking for convenient, nutritious meals and beverages with high nutritional values. 

The nutraceutical contains bioactive components, nutraceutical is a product isolated or purified from foods that are generally sold in medicinal forms not usually associated with food. A nutraceutical is demonstrated to have a physiological benefit or provide protection against chronic disease. Examples include capsules containing bioflavonoids or gamma-linoleic acid.

Increasing Focus on Health and Wellness Fueling Functional Food Ingredients Market Growth

People are more health-conscious and want functional food products that promote health.  The functional food ingredients market trend is towards health-promoting ingredients, like fiber, vitamins and minerals, which are in high demand. These ingredients are perceived to offer preventive health benefits and aid in disease management. This is driving the growth of the functional food ingredients market. 

Additionally, fortification ingredients, which involve adding essential nutrients to food products, address specific health concerns and nutritional deficiencies. The rising prevalence of lifestyle-related diseases and the growing awareness of the role of nutrition in disease prevention have led consumers to prioritize functional foods. The desire for convenient, nutritionally enhanced options to support a healthy lifestyle drives the market for functional food ingredients, promoting innovation and product development in the industry.

Limited Consumer Awareness is a Key Restraint for the Functional Food Ingredients Market

One restraint of the functional food ingredients market is the limited consumer awareness and understanding of the benefits and efficacy of these ingredients. Many consumers may not be fully aware of the specific health benefits offered by functional food ingredients or may not understand how they can integrate them into their diets. This lack of awareness can hinder the functional food ingredients market size.

Additionally, there may be skepticism or confusion surrounding the claims made by manufacturers about the health benefits of these ingredients. The complex and evolving regulatory landscape around health claims for food products can further complicate the messaging and marketing of functional food ingredients. Education and clear communication about the benefits and usage of functional food ingredients are necessary to address this restraint.

Market Segment Analysis

The global functional food ingredients market is segmented based on type, application, and region.

Vitamins are Essential Players in Functional Food Ingredients, Boosting Immune System

The global functional food ingredients market has been segmented by vitamins into minerals, prebiotics, omega-3 & 6 fatty acids, essential oils, hydrocolloids, and others.

The vitamin segment is a crucial component of the functional food ingredients market, playing a vital role in promoting health and well-being. Statistical data suggests that vitamins contribute to approximately 25% of the overall functional food ingredients market. Vitamin C, (ascorbic acid), vitamin D (cholecalciferol) and zinc (zinc sulfate monohydrate) supplements are important in immunity against coronavirus disease-2019 (COVID-19). 

However, a limited number of studies have been conducted on the association of vitamins and supplements with the reduced risks of COVID-19 infection. This study aims to evaluate the association of vitamins and supplements as treatment options to reduce the severity of COVID-19. Data were collected from 962 participants from 13 December 2020 to 4 February 2021. 

The presence of COVID-19 was confirmed by qRT-PCR. The Chi-square test and multivariate regression analyses were conducted. The ratio of uptake of vitamin C: vitamin D: zinc was 1:1:0.95. Uptake of vitamin C, vitamin D, and zinc were significantly associated with the reduced risk of infection and severity of COVID-19 (OR: 0.006 (95% CI: 0.03–0.11) (p = 0.004)) and (OR: 0.03 (95% CI: 0.01–0.22) (p = 0.005)).

Market Geographical Share

The North America Region Held the Largest Share of the Functional Food Ingredients Market.

The functional food ingredients market in north america, spanning various regions, focuses on dietary supplements, probiotics, prebiotics, fiber ingredients, and omega-3 fatty acids. The increasing consumer awareness of health and wellness driving the growth of functional food ingredients market share. Dietary supplements provide essential nutrients, and probiotics and prebiotics promote gut health. The use of the soluble fiber oat bran in cardiovascular risk management was the first health claim allowed under the US Dietary Supplement Health Education Act (DSHEA) during the 1990s. 

North America is surrounded by a diverse range of regions, each with unique consumer preferences and market dynamics. The North American region’s functional food ingredients market size is driven by dietary Supplements, they are popular functional food ingredients, available in various forms such as capsules, tablets, powders, and liquids. The demand for functional food ingredients in these regions continues to grow as consumers prioritize preventive healthcare and seek out products that support overall well-being.

Market Key Players

The major global players in the market include Kerry Inc., BENEO, Cargill, Inc., Koninklijke Dsm N.V., Archer Daniels Midland Company, Ingredion Inc., DuPont., Tate & Lyle, Chr. Hansen, and Kemin Industries.

Covid-19 Impact:

The COVID-19 pandemic has significantly impacted the Functional Food Ingredients Market. With increased health consciousness and a growing focus on preventive healthcare, the demand for functional food ingredients surged during the pandemic. Consumers sought out products with immune-boosting properties and ingredients that supported overall well-being. 

However, the market also faced challenges such as disrupted supply chains, reduced manufacturing activities, and limited distribution channels due to lockdown measures. Despite the obstacles, the market witnessed steady growth as consumers prioritized their health. As the world recovers from the pandemic, the functional food ingredients market is expected to continue its upward trajectory, driven by sustained consumer interest in health and wellness.

Key Developments

• On November 03, 2022, Genomatica, Inc, U.S. based company announced its entry into the functional foods and beverages market with the launch of its new functional ingredient, Avela natural (R)-1,3-Butanediol. Made from plant sugars using a fermentation process, the plant-based ingredient provides a source of natural energy and is free of caffeine, gluten, and salt.
• On October o3, 2022, Teijin Limited launched the Teijin Meguro Institute Co., Ltd. to strengthen the company’s development and manufacturing of probiotics for use in functional foods. It will provide functional food ingredients for probiotics products.
• On July 08, 2021, Kerry Group acquired Biosearch Life for €126.9 million (US$150 million) to expand its portfolio of healthy ingredients, such as probiotics and omega 3s. The move will further boost Kerry's capabilities in functional foods and proactive health ingredients.

Why Purchase the Report?

• To visualize the global functional food ingredients market segmentation based on type, application, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development. 
• Excel data sheet with numerous data points of functional food ingredients market-level with all segments.
• The PDF report consists of a cogently put-together market analysis after exhaustive qualitative interviews and an in-depth market study.
• Product mapping is available as Excel consists of key products of all the major market players.

The global functional food ingredients market report would provide approximately 53 tables, 51 figures, and 190 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies