The functional ingredients market size is projected to touch over US$ 210.58 billion by 2030, growing at a CAGR of 7.9% every year, according to a 2022 study by Precedence Research, the Canada-based market Insight Company.
The base year for the study has been considered 2021, the historic year 2017 and 2020, the forecast period considered is from 2022 to 2030. The functional ingredients market is analyzed on the basis of value (US$ Million), volume (Unit), and price (US$/Unit).
The global functional ingredients market is driven by various factors such as growing penetration of internet, rising adoption of the smartphones, rising penetration of the online delivery platforms, and rising demand for the conveniences associated with the food delivery. The rising disposable income, growing urban population, favorable government regulations, ease of doing business, and improved infrastructure that favors quick deliveries are the major factors that has augmented the growth of the global functional ingredients market.
The rising preferences for the online food delivery over dine-in in restaurants have forced the restaurants to go online. The rising number of cloud kitchens across the globe owing to the surging demand for the various international cuisines among the customers has fueled the growth of the market. The proliferation of digital technologies and increased awareness regarding the various food delivery platforms among the consumers has spurred the growth of the market.
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Functional Ingredients Market Scope
|Market Size by 2030||USD 210.58 Billion|
|Growth Rate from 2022 to 2030||CAGR of 7.9%|
|Largest Market||North America|
|Fastest Growing Market||Asia Pacific|
|Forecast Period||2022 to 2030|
Functional Ingredients Market: Report Highlights
- Based on the type, the vitamin segment dominated the market, garnering a market share of around 23% in 2020. This is attributed to the rapid increase in awareness regarding the benefits of vitamin and problems associated with its deficiency among the consumers. Moreover, the rising adoption of functional food rich in vitamin E especially in the developing regions has significantly driven the growth of this segment.
- Based on the source, the natural segment is estimated to be the most opportunistic segment during the forecast period. This is attributed to the higher profitability, ease of operations, and growing usage of plant based ingredients are the factors that favors the growth of the natural functional ingredients in the market.
Functional Ingredients Market: Regional Snapshot
Asia Pacific garnered a market share of over 32% and dominated the global functional ingredients market in 2020. The presence of around 60% of the global population in the region has presented lucrative growth opportunities for the market players. Moreover, the rising government investments in the infrastructural developments, urbanization, electrification, and development of IT and telecommunications infrastructure has prominently contributed towards the growth of the Asia Pacific functional ingredients market. The rising disposable income, increased popularity of functional ingredients among the youth, improved access to the internet, growing number of online sales platforms are some of the major factors that drives the market growth.
Moreover, the increased adoption of the online payment platforms and the various promotional offers and discounts offered by the online payment apps like Phonepe, Paytm, Amazon Pay, and GooglePay has significantly fostered the growth of the functional ingredients market in this region. The rising employment levels and busy and hectic schedules of the consumers are driving the sale of the functional food & beverages owing to the conveniences associated with it which is leading to rise in demand for functional ingredients. All these factors has made the Asia Pacific region, the fastest-growing functional ingredients market too.
North America was the second-largest market in 2020. This is attributed to the increased adoption of the smartphones and the internet coupled with the increased demand for the convenient home delivery services across North America. The busy and hectic life schedules along with the increased disposable income of the consumers have fostered the growth of the functional ingredients market in this region.
Functional Ingredients Market Dynamics
Increase in consumption of nutritive convenience and functional food
The global demand for functional food is expanding at a robust pace. Functional food ingredients like minerals, amino acids, vitamins, antioxidants, prebiotics, plant extracts, hydrocolloids, and carotenoids are the pivotal ingredients of functional food. The health-conscious population is swiftly expanding in a rising market, which will drive the demand for the food fortification. In addition, the differences of nutritional consumption across regions contribute greatly to the seeming differences in the populations’ health across the countries.
Multiple factors such as growth of the middle class in arising husbandry, adding cases of habitual conditions and micronutrient scarcities, new government fortification programs, growing interest in health and heartiness, and growth of the world’s aged population in regions similar as Europe, owing to COVID-19, is anticipated to drive the market of functional foods, which will further drive the demand for functional ingredients market in the process.
Higher cost for functional food products due to the addition of healthier or naturally sourced ingredients
The development and commerce aspects of functional food Ingredients are precious, complex, and uncertain. Factors behind the success of product development are consumer demand, technological conditions, and legislative, nonsupervisory background. Substantial investment is needed for the R&D of a strain to be used for the product of new functional Ingredients similar as probiotics. Probiotic strains and products are developed and produced in agreement with transnational food regulations.
In addition, largely specialized and castrated outfit and processes are needed for the birth and manufacturing of colorful other functional constituents. As a result of the high cost of product, the price of the final product is also rises. Distribution and marketing further add to the product price. Although consumers are aware of the health benefits deduced from these precious functional food ingredients, their high prices restrict consumers from buying the product.
Relinquishment of new technologies in the functional food assiduity
The preface of new technologies similar as nanoencapsulation, encapsulation, andbio-encapsulation drives technological inventions in the functional Ingredients industry. Encapsulation technology aids in improving the taste of numerous products. For instance, omega-3 adipose acids are associated with bad odor. The taste and scent of these Ingredients are enhanced with the usage of encapsulation technology.
The current advancements in liposome technology are being used in the manufacturing of several ingredients similar as probiotics and other functional food ingredients, offering multitudinous health benefits. Therefore, this has increased technological inventions for niche operations similar as gourmet food and infant.
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Complications related to the integration and contamination of functional food products
The knowledge of the consumers’ towards the health effects of goods of certain Ingredients can disturb the specific functional food acceptance. The functional Ingredients which are common such as fiber, minerals, and vitamins are preferred over advanced and new products such as foods amended with prebiotics, probiotics, carotenoids, flavonoids, and conjugated linolenic acid.
The researchers have to work in- depth to overcome all the challenges related to the selection and development of strain and affiliated product processes. The basic demand for probiotics is that products should contain sufficient figures of microorganisms up to the expiry date.
Some of the prominent players in the global Functional Ingredients Market include:
- Glanbia plc
- Hearthside food solutions llc
- Mars, incorporated
- Meiji co., ltd
- Nestlé s.a
- Raisio plc
- Royal frieslandcampinan.v
- Sanitarium health food company
- The kraftheinz company
Functional Ingredients Market Segmnets
- Probiotics & Prebiotics
- Botanical Extracts
- Fatty Acids
- Food & Beverages
- Personal Care
- Animal Feed
- North America
- South Korea
- Latin America
- Rest of Latin America
- Middle East & Africa (MEA)
- North Africa
- South Africa
- Rest of the Middle East & Africa
Thanks for reading you can also get individual chapter-wise sections or region-wise report versions such as North America, Europe, or the Asia Pacific.
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