The global functional food ingredients market is expected to grow at a CAGR of 8.5 %. Technological advancement in food and beverage sector has led to healthy growth in this sector. Functional foods and beverages are those that provide an additional health benefit to the consumer beyond basic nutrition. Example: foods that have been fortified with beneficial nutrients or food that is free from certain components such as lactose or gluten-free. There is increasing demand for functional food across the globe. The change in lifestyle, rise in income levels and adoption of healthy consumption are the key factors of the functional food ingredients market. The functional food inhibits disease preventing, health boosting properties which in turn provide them with wide range of applications. The increase in health awareness among the people across globe tends to be the key driver in the market. Key applications of functional food are food and beverages, personal care, pharmaceuticals, animal feed. The functional food market is expected to grow in future as there is trend of organic products.
Increase in Consumption of Nutritious Food Drives the Market
There is tremendous rise in consumption of nutritious food products to ensure good health. The natural and organic food items are largely dominated by the market. The rise in demand has increased from past few decades, the diet food has also attracted the healthy consumers across various regions. The weight loss or management is a health benefit consumers are interested in getting from foods. About one-third of Americans listed increased energy, cardiovascular health, healthy aging or digestive health by use of functional food. In 2021 the global launches of functional food grew by 7.7 %. The pandemic has increased the social awareness of healthy consumption of food and beverages. The change in life style now includes consumption of healthy food by ensuring weight management, fresh mood and sufficient amount of protein intake. One of the biggest functional categories that we expect food and beverages to incorporate more in 2021 is those with a focus on mental health and mood modifying ingredients. We also expect repositioning around food and beverages that are not always deemed healthy for example, beers for running, hard seltzers, and fermented foods that provide probiotic benefits.
High Cost Restricting the Growth of the Market
The development of functional food is complex, expensive and uncertain. However various efforts are made by research and innovation departments in companies to assure cost efficient production. Technology used and high demand of functional food are key factors for driving the market. There is continuous investment on research and development to improve the market. The consumer needs have an increase in demand for past few years. The market is expected to grow if there is success in cost efficient methods. Instead of high cost there is high demand, this will drive the market in case of low cost products.
Covid-19 impact on the market
The pandemic led to major awareness about consumption of healthy food products across the globe. The pandemic had restricted various outdoor activities hence the weight management was general issue across regions. Functional food was on demand to ensure good health and enhance immunity. The pandemic lowered the manufacturing of due to lockdowns that were imposed to curtail the spread of infection. The supply chain was also hampered. Post pandemic period is expected to boost the sales. The demand is expected to continue as consumers ensure the healthy lifestyle.
Key players
The key players in this industry include DuPont de Nemours, Archer Daniels Midland Company, Cargill Incorporated, BASF SE, Royal Ingredients Group, Kerry Group, Tate & Lyle, Arla Foods, Ajinomoto, Koninklijke DSM N.V, Roquette Frères, Kemin Industries. The key strategies applied by these companies include focus on research and innovation, managing portfolios for investments, business partnerships and collaborations.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Functional food Ingredients market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
