The global functional food ingredient market is estimated to grow at a CAGR of 6.8% in the forecasted period (2022-2028).
Raw material costs are likely to grow as a result of COVID-19 because of trade barriers, disruptions in raw material supply, and inefficient distribution systems. Due to the scarcity and high cost of raw materials, as well as high production costs, the global functional food ingredients market is expected to experience challenges. In the COVID-19 age, food supply chain security is becoming increasingly important. Because the majority of vitamins are imported from China, there was a shortage, and COVID-19 had a negative impact on transportation. The COVID-19 outbreak has brought global attention to the supply chain’s vulnerability. Manufacturers are exploring for alternative ingredients due to trade barriers. On the other hand, local merchants and regional raw material suppliers will benefit. During Covid 19, many convenience food businesses throughout the world were shut down. As a result, there was initially little demand for functional food components.
Functional food ingredients are designed to provide certain functions that go beyond simple nourishment. These components are essential in the prevention of both acute and chronic illnesses. Functional foods are made up of natural or synthetic components that promote good health and offer energy. Prebiotics are an example of an element that encourages the growth of helpful bacteria in the large intestine while limiting the growth of bacteria that may be harmful to intestinal health.
The functional food ingredients market is expected to grow over the projected period, owing to factors such as an increase in fortified food consumption as a result of rising consumer health awareness and demand for nutritious convenience food. Furthermore, as the prevalence of chronic diseases rises, so does the need for functional foods, driving the market for functional food ingredients. Nonetheless, during the projection period, the market opportunity resides in the expanding health-conscious population in developing countries.
Ingredients in functional foods have health benefits that go beyond their nutritional value. Some of them include vitamins or other components that are meant to boost one’s health. Vitamins, minerals, prebiotics, probiotics, hydrocollooids, essential oils, omega-3 & 6 fatty acids, and carotenoids make up the functional food ingredient market. Bakery & Cereals, Dairy Products, Meat, Fish & Eggs, and Soy Products are all examples of applications. North America, Europe, Asia-Pacific, South America, the Middle East, and Africa are the regions studied. Market sizing and forecasting have been done on the basis of value for each segment (in USD million).
Consumption of nutrient-dense foods/fortified foods is on the rise
The demand for fortified foods is quickly rising over the world. Some of the most essential functional food constituents are vitamins, minerals, antioxidants, hydrocolloids, prebiotics, amino acids, plant extracts, and carotenoids. The number of health-conscious people in emerging nations is rapidly increasing, boosting demand for food fortification. The apparent inequalities in population health between countries are primarily attributable to differences in dietary intake among regions. Sales are expected to be driven by rising cases of chronic diseases and micronutrient deficiencies, the growth of the middle class in emerging economies, new government fortification programmes, the world’s older population in regions like Europe, and rising interest in health and wellness as a result of COVID-19.
North America has the largest share of the market.
The trend in healthcare spending in North America is increasing by the day. As a result, people in the country are taking preventative healthcare steps including consuming healthy meals. This aspect is also influencing overall functional food sales in the country. Furthermore, sales of breakfast cereals in North America are likely to gain from the acceleration of a wide range of trends affecting Americans’ eating patterns. Some of the factors driving demand for functional breakfast cereals include a permanent shift away from three square meals a day to snacking and consuming multiple smaller meals throughout the day, rapid growth in the number of Americans actively engaged in fitness and weight management programmes, and the desire for consumers to seek out alternative foods for breakfast.
Competitive Landscape
Key players in this market include Cargill, Incorporated (US), BASF SE (Germany), Archer Daniels Midland Company (US), DuPont (US), Arla Foods (Denmark), Kerry Group (Ireland), Ajinomoto Co., Inc. (Japan), Koninklijke DSM N.V. (Netherlands), Ingredion Incorporated (US), and Tate & Lyle PLC (UK). Some of the other players include Chr. Hansen Holding A/S (Denmark), Kemin Industries, Inc. (US), BENEO (Germany), Royal Cosun (Netherlands), Roquette Frères (France), Soylent (US), A &B Ingredients (US), Golden Grain Group Limited (China), Sugarlogix (US), and Stratum Nutrition (US).
By Type
● Vitamins
● Minerals
● Prebiotics
● Probiotics
● Hydrocolloids
● Essential Oils
● Omega-3 & 6 Fatty Acids
● Carotenoids
By Application
● Bakery & Cereals
● Dairy Products
● Meat
● Fish & Eggs
● Soy Products
Recent Happenings
➜ Kerry Group, an Irish food manufacturer, announced in July 2021 that it will acquire Biosearch Life for USD150 million. Kerry Group will be able to increase its healthy ingredient portfolios, such as probiotics and omega-3, as a result of this acquisition.
➜ BASF SE, Azelis, and BASF will form a collaboration in Greece for health components and colourants in the food and beverage and dietary supplement markets in September 2020.
➜ Kerry’s nutritional plant protein portfolio, pevesa Biotech, was expanded in September 2020 to strengthen its position in non-allergic and organic plant protein ingredients.
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