The Functional Food Ingredients Market was valued at approximately USD 4.3 Billion in 2023 and is expected to grow at a robust CAGR of around 11.2% during the forecast period 2024-2032
Functional foods ingredients offer a health benefit beyond basic nutrition for the improvement of outer or inner health.
The increasing prevalence of chronic diseases is augmenting the consumer shift towards
healthier food alternatives. In addition, the Rising consumer interest, and
high awareness of immunity-enhancing properties of proper diet and food habits,
are some of the key factors fueling the growth of the global functional food
ingredients market. Moreover, the increase in functional food ingredient
product sales is burgeoning the growth of the functional food ingredients
market.
Based on Type, the market is fragmented into Probiotics, Proteins & amino acids, Phytochemicals & plant extracts, Prebiotics, Fibers & specialty carbohydrates, Omega-3 fatty acids, Carotenoids, Vitamins, and Minerals. The protein & amino acids segment garners a significant share of the functional food ingredient market in 2020. The functional food ingredients such as prebiotics, omega-3 fatty acids, proteins, minerals, fibers, and phytochemicals are mainly derived from plant sources. Plant-based proteins are a major source of protein for vegetarians and vegans.
Based on Health
Benefits, the market is segmented into Gut health, Cardiovascular health, Bone
health, Immunity, Nutritive health, Weight management, and Other health benefits.
The Nutritive Health segment garners a significant share of the functional food
ingredient market in 2020. The increasing awareness among the population
concerning the health benefits of probiotics and prebiotics is intensifying the
segment growth. Moreover,
the rising demand for dietary supplements and rising disposable income are
further generating lucrative functional food ingredients market growth
opportunities.
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For a better understanding of the market adoption of Functional Food Ingredients, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, and the Rest of North America), Europe (Germany, France, Spain, United Kingdom and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. North America will dominate the Functional Food Ingredients market on account of the increase in demand for high-priced fortified nutritional food & beverage products in the region. The application of food ingredients is estimated to increase at a faster pace in the region due to its demand among consumers. In addition, the changing customers' lifestyles are also propelling the growth of the functional food industry in the North American region. Some of the major players operating in the market include Amway, Archer Daniels Midland Company, Arla Foods, BASF SE, Cargill Inc, DSM NV, General Mills Inc, Herbalife, Ingredion Incorporated, and Kerry Group PLC. Several M&As along with partnerships have been undertaken by these players to boost their presence in different regions.
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Global Functional Food
Ingredients Market Segmentation
Market Insight, by Type
Probiotics
Proteins & amino acids
Phytochemicals & plant extracts
Prebiotics
Fibers & specialty carbohydrates
Omega-3 fatty acids
Carotenoids
Vitamins
Minerals
Market Insight, by Health Benefits
Gut health
Cardiovascular health
Bone health
Immunity
Nutritive health
Weight management
Other health benefits
Market Insight, by Application
Food
Beverages
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