Functional Food Ingredients Market by Type (Antioxidants, Carotenoids, Omega-3 Fatty Acids), Source (Natural, Synthetic), Health Benefits, Application - Global Forecast 2024-2030

Functional Food Ingredients Market by Type (Antioxidants, Carotenoids, Omega-3 Fatty Acids), Source (Natural, Synthetic), Health Benefits, Application - Global Forecast 2024-2030

The Functional Food Ingredients Market size was estimated at USD 100.67 billion in 2023 and expected to reach USD 108.25 billion in 2024, at a CAGR 8.10% to reach USD 173.74 billion by 2030.

Functional food ingredients are components typically added to foods to provide health benefits beyond basic nutrition. These ingredients target various health-related concerns, such as enhancing immune function, improving digestive health, reducing the risk of chronic disease, or providing additional energy. The utilization of functional food ingredients in conventional and fortified foods positively influences specific bodily functions or conditions and meets basic nutritional requirements. The rising awareness regarding balanced nutrition and diet in consumers' daily lives boosts the need for functional food ingredients. The growing preference for plant-based and organic foods worldwide also propels the demand for functional food ingredients. However, the difficulties associated with processing these ingredients are a significant concern for the key players operating in the global space. Companies frequently work towards research and development (R&D) activities to maintain their agility within the landscape. Moreover, the recent advancements in the taste profiles of functional food ingredients and ongoing government approvals for these ingredients have created future opportunities for manufacturers and suppliers.

Regional Insights

In America, countries including the United States and Canada, a growing trend for health and wellness products and the need for natural and organic ingredients in fortified food created a significant demand for functional food ingredients. At the same time, the research and development (R&D) activities by key companies in this region have also propelled the market of functional food ingredients. Similarly, Europe's stringent regulations governing the functional food ingredients market witnessed a strong interest in non-GMO, organic, and sustainably sourced ingredients. Meanwhile, the Middle East and Africa regions present a diverse landscape for functional food ingredients with varying levels of market maturity. In the wealthy Gulf states, there is an increasing demand for premium health products, including those containing functional ingredients. Moreover, in Asia and the Pacific region, countries including China, Japan, and India have exhibited rapid growth in demand for functional food ingredients, influenced by the aging population and rising income levels. Traditional Chinese medicinal ingredients that offer health benefits are increasingly used in functional foods in this country. China's focus on innovation has led to substantial investment in this sector and the implementation of favorable policies to support market growth.

Market Insights

• Market Dynamics
  
  The market dynamics represent an ever-changing landscape of the Functional Food Ingredients Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.
  • Market Drivers
    • Growing awareness about the need to maintain balanced nutrition and diet
    • Preference for plant-based and organic functional foods
    • Rising availability of functional foods in restaurants and cafes
    • Market Restraints
      • Low palatability and adverse product recalls of certain functional foods
      • Market Opportunities
        • Advancements to optimize taste profiles and production of functional food ingredients
        • Ongoing government approvals and certifications for functional food ingredients
        • Market Challenges
          • Difficulties in processing and production of functional food ingredients
          • Market Segmentation Analysis
            • Type: Availability of varied functional ingredients in preference to their characteristics in food & beverage applications
            • Source: Increasing uses of organic food ingredients offering better health outcomes and sustainability
            • Health Benefits: Growing preference towards Omega-3 fatty acids and vitamins in daily meals to cater to numerous health concerns
            • Application: Pertaining use of functional food ingredients in dairy products and dietary supplements promoting digestive health and boosting the immune system
            • Market Disruption Analysis
            • Porter’s Five Forces Analysis
            • Value Chain & Critical Path Analysis
            • Pricing Analysis
            • Technology Analysis
            • Patent Analysis
            • Trade Analysis
            • Regulatory Framework Analysis
            FPNV Positioning Matrix
            
            The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Functional Food Ingredients Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
            
            Market Share Analysis
            
            The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Functional Food Ingredients Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
            
            Recent Developments
            • Corbion Announces Completion of its New Circular Lactic Acid Plant in Thailand
              
              Corbion, a company specializing in sustainable ingredient solutions based in Amsterdam, achieved a major milestone with the mechanical completion of a groundbreaking circular lactic acid facility in Rayong, Thailand. This state-of-the-art plant is poised to set new industry benchmarks for sustainability by producing lactic acid with a significantly reduced carbon footprint, outperforming all current manufacturing processes. The plant's innovative design enables the recycling of process chemicals, effectively eliminating the need for lime and avoiding the creation of gypsum as a residual by-product, marking this as a more cost-efficient approach than traditional lactic acid production methods.
              
              ADM Adds to Flavors Portfolio with Deal for FDL
              
              Archer Daniels Midland Company (ADM), a global player in nutrition and agricultural origination and processing, successfully agreed to acquire FDL Ltd, a UK-based manufacturer of innovative flavor and functional ingredient systems. This acquisition aligns with ADM's commitment to expand its capabilities and portfolio in the rapidly growing food and beverage industry, ensuring the delivery of a broad array of value-added products to meet the escalating demand for functional and health-forward food options. FDL's expertise and product line are expected to complement ADM's existing offerings, positioning the company to provide an enhanced, holistic suite of solutions to customers globally.
              
              Kerry to Acquire the Lactase Enzymes Business of Chr. Hansen and Novozymes
              
              Kerry Group is set to expand its reach in the functional food ingredients sector through a strategic acquisition that involves key assets from the lactase enzyme business of two major industry players, Chr. Hansen Holding A/S and Novozymes A/S. As part of this agreement, Kerry acquired specific trade elements and assets from Chr. Hansen's lactase portfolio and take full ownership of Nuocheng Trillion Food (Tianjin) Co., Ltd, a subsidiary of Novozymes in China.
            Strategy Analysis & Recommendation
            
            The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Functional Food Ingredients Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
            
            Key Company Profiles
            
            The report delves into recent significant developments in the Functional Food Ingredients Market, highlighting leading vendors and their innovative profiles. These include Aarkay Food Products Ltd., Ajinomoto Co., Inc., Akay Natural Ingredients Private Limited, Amway Corporation, Archer Daniels Midland Company, Arla Foods Group, Associated British Foods PLC, BASF SE, Beneo GmbH, Carbery Food Ingredients Limited, Cargill, Incorporated, Chr. Hansen Holding A/S, Corbion N.V., Evonik Industries AG, Ginkgo Bioworks Holdings, Inc., Glanbia PLC, ICL Group Ltd., Ingredion Incorporated, International Flavors & Fragrances Inc., Kao Corporation, Kemin Industries, Inc., KEMTIA by Productos Aditivos Group, Kerry Group PLC, Koninklijke DSM N.V., Lacto Japan Co., Ltd., Maypro Group, Nuritas Ltd., Paleo B.V., Pellagic Food Ingredients Pvt. Ltd., Sensient Technologies Corporation, Shiru, Inc., Tate & Lyle PLC, Teijin Limited, and The Every Company.
            
            Market Segmentation & Coverage
            
            This research report categorizes the Functional Food Ingredients Market to forecast the revenues and analyze trends in each of the following sub-markets:
            • Type
              • Antioxidants
              • Carotenoids
              • Omega-3 Fatty Acids
              • Prebiotics
              • Probiotics
              • Proteins & Peptides
              • Vitamins & Minerals
              • Source
                • Natural
                • Synthetic
                • Health Benefits
                  • Bone Health
                  • Gut Health
                  • Heart Health
                  • Immunity
                  • Nutritive Health
                  • Weight Management
                  • Application
                    • Bakery & Confectionery
                    • Beverages
                    • Dairy Products
                    • Dietary Supplements
                    • Infant Formula
                    • Meat & Meat Products
                    • Region
                      • Americas
                        • Argentina
                        • Brazil
                        • Canada
                        • Mexico
                        • United States
                          • California
                          • Florida
                          • Illinois
                          • New York
                          • Ohio
                          • Pennsylvania
                          • Texas
                          • Asia-Pacific
                            • Australia
                            • China
                            • India
                            • Indonesia
                            • Japan
                            • Malaysia
                            • Philippines
                            • Singapore
                            • South Korea
                            • Taiwan
                            • Thailand
                            • Vietnam
                            • Europe, Middle East & Africa
                              • Denmark
                              • Egypt
                              • Finland
                              • France
                              • Germany
                              • Israel
                              • Italy
                              • Netherlands
                              • Nigeria
                              • Norway
                              • Poland
                              • Qatar
                              • Russia
                              • Saudi Arabia
                              • South Africa
                              • Spain
                              • Sweden
                              • Switzerland
                              • Turkey
                              • United Arab Emirates
                              • United Kingdom
                              
                              
                              Please Note: PDF & Excel + Online Access - 1 Year