Global Functional Food Ingredients Market Insights Forecasts to 2033

• The Global Functional Food Ingredients Market Size was Valued at USD 118.94 Billion in 2023
• The Market Size is Growing at a CAGR of 6.79% from 2023 to 2033
• The Worldwide Functional Food Ingredients Market Size is Expected to Reach USD 229.52 Billion by 2033
• North America is expected to Grow the fastest during the forecast period.

The Global Functional Food Ingredients Market Size is Anticipated to Exceed USD 229.52 Billion by 2033, Growing at a CAGR of 6.79% from 2023 to 2033.

Market Overview

Functional foods are those that provide health advantages beyond their nutritional value. Some varieties include vitamins or other components intended to boost health. A nation's overall production is significantly influenced by its population's nutritional state. It also serves as an indicator of the level of social and economic development. The modern world is plagued by a slew of lifestyle disorders, which has increased the number of chronic diseases recorded. The necessity of the hour is to build strong and effective dietary patterns that include more foods with enriched advantages in addition to the macro and micronutrients they provide. Thus, functional food ingredients comprise all matrices that provide benefits in addition to the typical nutrients included within them. Consumers are increasingly looking for microbiome elements such as probiotics, prebiotics, essential oils, hydrocolloids, and postbiotics in personalized food and beverage items, owing to rising health awareness about nutritious convenience foods. This aspect has pushed food and beverage makers to seek functional food additives, resulting in market growth throughout the forecast period for the functional food ingredients market.

Report Coverage

This research report categorizes the market for the global functional food ingredients market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global functional food ingredients market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global functional food ingredients market.

Driving Factors

The functional food ingredients market is expected to expand during the projected period, driven by factors such as increased consumption of fortified food due to increased consumer health awareness and demand for nutritious convenience food. Healthcare expenditure, preventative healthcare adoption, and consumer awareness of the health benefits of functional foods all contribute to regional growth. Nonetheless, the market opportunity rests in the expanding health-conscious population in developing countries over the projection period. Furthermore, the world's aging population has increased demand for functional food components that address age-related health issues such as cognitive decline and bone health. Despite rising demand, tight laws and clearance processes present obstacles for industry competitors. Compliance with regulatory requirements and acquiring essential permissions for new substances can be time-consuming and expensive, limiting market expansion.

Restraining Factors

These high production costs and R&D investments create barriers for both producers and consumers. Manufacturers must balance competitive pricing, product quality, and innovation. As a result, customers may pay higher prices for functional food products, thereby discouraging wider adoption. Furthermore, inadequate R&D expenditure may impede the development of new, more cheap functional ingredients, limiting market growth.

Market Segmentation

The global functional food ingredients market share is classified into type, purpose, and application.

• The carotenoids segment is expected to hold the largest share of the global functional food ingredients market during the forecast period.   

Based on the type, the global functional food ingredients market is categorized into vitamins, minerals, prebiotics, probiotics, hydrocolloids, essential oils, omega fatty acids, and carotenoids. Among these, the carotenoids segment is expected to hold the largest share of the global functional food ingredients market during the forecast period. They are sold in a number of forms, including lutein, beta-carotene, lycopene, astaxanthin, zeaxanthin, canthaxanthin, and annatto. Carotenoids' usefulness in the treatment of eye problems, cancer, and diabetes is the key driving force behind the sector. Increased R&D for the manufacture of high-value natural carotenoids is expected to open up new market opportunities throughout the projected period.

• The cardio health segment is expected to grow at the fastest CAGR during the forecast period.   

Based on the purpose, the global functional food ingredients market is categorized into weight management, digestive health, and cardio health. Among these, the cardio health segment is expected to grow at the fastest CAGR during the forecast period. Sports enthusiasts have a significant impact on the demand for functional foods high in vitamins and proteins. These products also help athletes recover energy, improve muscular endurance, and reduce physical wear and tear. A growing range of health objectives, such as strengthening bone and muscular strength, promoting weight loss, and improving joint health, are driving up demand for functional foods. These foods improve digestion and reduce wrinkles, lowering the risk of cardiovascular disease and type 2 diabetes. These features are expected to raise the demand for functional foods in the cardio health.

• The dairy segment is expected to hold a significant share of the global functional food ingredients market during the forecast period.

Based on the application, the global functional food ingredients market is categorized into beverages, bakery, dairy, snacks. Among these, the dairy segment is expected to hold a significant share of the global functional food ingredients market during the forecast period. Meat, eggs, soy products, fish, and fats and oils are among the most important product sectors. Yogurt, milk drinks, and spreads are all effective delivery strategies for functional meals. They contain several healthy chemicals and can be utilized as functional food additives in cooking. Population expansion increases consumer goods demand, which is predicted to boost the availability of dairy based functional meals.

Regional Segment Analysis of the Global Functional Food Ingredients Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia Pacific is projected to hold the largest share of the global functional food ingredients market over the forecast period.

Asia Pacific is projected to hold the largest share of the global functional food ingredients market over the forecast period. In the Asia Pacific area, shifting dietary patterns and increased health consciousness are driving demand for functional foods fortified with specific ingredients that target distinct health advantages. This tendency is especially noticeable in China, India, and Japan, where there is a rising recognition of the value of preventative healthcare. Furthermore, the rich and diverse culinary culture of Asia Pacific countries, combined with the predominance of traditional medicine systems such as Ayurveda and Traditional Chinese Medicine, opens up potential for the introduction of functional substances derived from natural sources. Furthermore, the Asia Pacific region has a growing population, rapid urbanization, and rising disposable incomes, all of which contribute to increased consumer expenditure on health-related products.

North America is expected to grow at the fastest CAGR growth of the global functional food ingredients market during the forecast period. The North American market's primary application segments are immunity, weight management, digestive health, and cardiac health. This is due to the increased interest in fitness among consumers in the United States, Mexico, and Canada, which is expected to drive demand for functional foods and beverages. Furthermore, the increased popularity of protein bars, shakes, and cookies among millennials as healthy snacking options is expected to drive demand for functional foods in North America in the coming years.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global Functional Food Ingredients market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Koninklijke DSM NV
• Cargill
• BASF SE
• Archer Daniels Midland Company
• DuPont de Nemours, Inc.
• Arla Foods amba
• Kerry Group
• Ingredion Incorporated
• Tate & Lyle PLC
• Foodchem International Corporation
• Others

Key Market Developments

• In January 2024, as a first-time exhibitor at the Food Ingredients China (FIC) expo, Louis Dreyfus Company (LDC), a renowned global merchant and processor of agricultural goods, will showcase its range of plant-based ingredients and packaged cooking oils.

• In April 2023, Nestlé, the Swiss food giant, has announced the debut of two new vegan chocolate chips under the Toll House brand. These chips are said to be dairy-free and were introduced to fulfill the need for plant-based foods.

• In February 2023, Hindustan Unilever Ltd (HUL) has launched their new chocolate flavor Millet Horlicks in Tamil Nadu. The company claims that Millet Horlicks in chocolate flavor is HUL's first product with super-grain, which contains multi-millets such as Finger Millet (Ragi), Sorghum (Jowar), Foxtail Millet and Pearl Millet (Bajra), which are said to be a natural source of calcium, iron, protein, and fiber.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Global Functional Food Ingredients Market based on the below-mentioned segments: 

Global Functional Food Ingredients Market, By Type

• Vitamins
• Minerals
• Prebiotics
• Probiotics
• Hydrocolloid
• Essential Oils
• Omega Fatty Acids
• Carotenoids

Global Functional Food Ingredients Market, By Purpose

• Weight Management
• Digestive Health
• Cardio Health

Global Functional Food Ingredients Market, By Application

• Beverages
• Bakery
• Dairy
• Snacks

Global Functional Food Ingredients Market, By Regional

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa