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Functional Food Ingredients - Global Market Trajectory & Analytics

  • ID: 5302736
  • Report
  • February 2022
  • Region: Global
  • 649 Pages
  • Global Industry Analysts, Inc

FEATURED COMPANIES

  • Ajinomoto Co., Inc.
  • Arla Foods
  • BASF SE
  • CP Kelco U.S., Inc.
  • Fuerst Day Lawson Ltd.
  • Kerry Group plc

Global Functional Food Ingredients Market to Reach $118.4 Billion by 2026


Functional food ingredients are substances with health-promoting, disease-preventing, and energy-boosting advantages. Functional food ingredients improve infant health, help in weight management, and enable preventing medical conditions such as diabetes and high blood pressure. Growth in the global market is being driven by growing consumer consciousness about their health and wellness, and the awareness that safe fortified foods could contribute to an enjoyable and healthy life. In addition, rising incidences of many chronic diseases including high blood pressure and diabetes are driving demand for functional food ingredients, which could help prevent these diseases. Other factors spurring growth include growing numbers of gym goers and fitness centers; changes in the regulations for the food & beverage sector; increasing consumer demand for wholesome and clean-label food & beverage products with high nutritional content; and product innovations, developments, new investments, and new product launches by many companies.

Amid the COVID-19 crisis, the global market for Functional Food Ingredients estimated at US$75.6 Billion in the year 2020, is projected to reach a revised size of US$118.4 Billion by 2026, growing at a CAGR of 7.6% over the analysis period. Natural, one of the segments analyzed in the report, is projected to grow at a 8.1% CAGR to reach US$77.2 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Synthetic segment is readjusted to a revised 6.8% CAGR for the next 7-year period. This segment currently accounts for a 40.6% share of the global Functional Food Ingredients market. There is growing demand for natural carotenoids such as lycopene and beta-carotene in their pure form, and these could replace synthetic carotenoids, particularly in the production of dietary supplements, because of their high quality and effectiveness.



The U.S. Market is Estimated at $25.6 Billion in 2021, While China is Forecast to Reach $14.1 Billion by 2026


The Functional Food Ingredients market in the U.S. is estimated at US$25.6 Billion in the year 2021. The country currently accounts for a 30.93% share in the global market. China, the world second`s largest economy, is forecast to reach an estimated market size of US$14.1 Billion in the year 2026 trailing a CAGR of 10.5% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 6.2% and 6.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.7% CAGR while Rest of European market (as defined in the study) will reach US$15.4 Billion by the end of the analysis period. North America and Europe dominate global market share, driven by increasing health concerns and complications such as diabetes, obesity, and digestive disorders in these regions. Growth in the Asia-Pacific region is due to the growing population and increasing disposable income of consumers. Moreover, strong government policies supporting the agricultural trade related to functional foods is attracting investments from market players, creating a wide scope for development of the industry in the region.

Select Competitors (Total 73 Featured) -

  • Ajinomoto Co., Inc.
  • Amway Corporation
  • Archer-Daniels-Midland Company
  • Arla Foods
  • Ashland Inc.
  • Associated British Foods plc
  • BASF SE
  • Cargill, Inc.
  • CP Kelco U.S., Inc.
  • DMH Ingredients, Inc.
  • Fuerst Day Lawson Ltd.
  • Ingredion Inc.
  • International Flavors & Fragrances Inc.
  • Kerry Group plc
  • Koninklijke DSM N.V.
  • Royal Avebe U.A.
  • Tate & Lyle plc
Frequently Asked Questions about the Global Market for Functional Food Ingredients

What is the estimated value of the Global Market for Functional Food Ingredients?

The Global Market for Functional Food Ingredients was estimated to be valued at $75.6 Billion in 2020.

What is the growth rate of the Global Market for Functional Food Ingredients?

The growth rate of the Global Market for Functional Food Ingredients is 7.8%, with an estimated value of $118.4 Billion by 2026.

What is the forecasted size of the Global Market for Functional Food Ingredients?

The Global Market for Functional Food Ingredients is estimated to be worth $118.4 Billion by 2026.

Who are the key companies in the Global Market for Functional Food Ingredients?

Key companies in the Global Market for Functional Food Ingredients include Ajinomoto Co., Inc., Amway Corporation, Archer, Daniels, Midland Company, Arla Foods, Ashland Inc., Associated British Foods plc and Cargill, Inc..
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • Ajinomoto Co., Inc.
  • Arla Foods
  • BASF SE
  • CP Kelco U.S., Inc.
  • Fuerst Day Lawson Ltd.
  • Kerry Group plc

I. METHODOLOGY


II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

  • Impact of COVID-19 Pandemic and Looming Global Recession
  • 2020 Marked as a Year of Disruption & Transformation
  • World Economic Growth Projections (Real GDP, Annual % Change) for 2020 through 2022
  • COVID-19 Pandemic Leads to Increased Consumer Focus on Health and Wellness Products
  • From Food Security to Health Security, the Pandemic Sends Functional Foods Cruising Down a New Road of Opportunity
  • Rising Interest in Functional Foods Drives Functional Food Ingredients Market
  • Functional Food Ingredients – Global Key Competitors Percentage Market Share in 2022 (E)
  • Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2022 (E)
  • An Introduction to Functional Food Ingredients
  • Global Market Prospects & Outlook
  • Robust Growth in Functional Foods & Drinks to Bolster Demand for Functional Food Ingredients
  • Probiotics and Prebiotics to Boost Market Prospects
  • Developed Regions Lead, Developing Economies to Spearhead Market Growth
  • Competition
  • Regional and Cultural Customization: Important for Success in the Emerging Markets
  • Strong Research Backup and Media Publicity: Key Product Differentiators
  • Recent Market Activity

2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS

  • Growing Focus on Healthy Lifestyles Amidst the Ongoing Pandemic Drives Focus onto Functional Foods, Driving Demand for Ingredients
  • Focus Grows on Natural Foods and Clean Label
  • Consumers Focus on Less Processed Foods Drives Market Prospects
  • Increasing Prevalence of Chronic & Lifestyle Diseases Enhances Consumer Spending on Functional Foods & Boosts Demand for Ingredients
  • Global Cancer Incidence: Number of New Cancer Cases in Million for the Years 2018, 2020, 2025, 2030, 2035 and 2040
  • World Diabetes and Population Statistics (2019, 2030 & 2045)
  • Global Annual Medical Cost of CVD in US$ Billion: 2010, 2015, 2020, 2025 and 2030
  • Growing Prominence of Functional Foods & Drinks in Weight Management Augurs Well for Market Demand
  • Obesity Prevalence Rate (%) in Select Countries for the Years 2019 and 2030P
  • Average Per Capita Annual Health Expenditure (In US$) due to Obesity by Country
  • Plant-Centric Demand to Buoy Functional Foods & Drinks Ingredients Market
  • Plants in Convenient Formats
  • Plant Milk for Digestive Wellness
  • Probiotics Remain the Preferred Ingredient for Gut Health Foods
  • Role of Probiotics in Management of COVID-19 and Other Diseases
  • Prebiotics: An Important Ingredient Promoting Gut Health, Brain Health, and Immunity
  • Potential Role of Prebiotics and Probiotics in Prevention & Treatment of Coronavirus Infections
  • Manufacturers of Prebiotic Ingredients See Major Opportunities in the Post-COVID-19 World
  • Growing Role of Prebiotic Ingredients in Functional Foods
  • Rising Awareness of Brain-Gut Connection and Resultant Focus on Maintaining Gut Health Drive Demand for Prebiotic Ingredients
  • Dairy Industry: A Major Consumer of Prebiotic Ingredients
  • Trend towards Higher Fiber Consumption Drives Demand for Prebiotic Fibers
  • Percentage Prebiotic Fiber Content in Select Foods
  • Prebiotics and Probiotics: Working Together to Improve Digestive Health
  • More Natural, Organic and Functional Versions to Drive Energy Drinks Growth
  • Antioxidants Gain Importance in Functional Beverages
  • Soy-based Functional Ingredients Become Mainstream
  • Carotenoids Find Growing Use in Functional Foods & Beverages
  • Myriad Benefits of Beta Carotene Drive Applications in Health and Functional Foods
  • Omega-3 Emerges as a Popular Heart-Healthy Ingredient, Driving Demand for Marine Functional Food Ingredients
  • Alternative Sources of Omega-3
  • Robust Demand for Nutraceuticals & Supplements Creates a Strong Foundation for the Growth of Astaxanthin
  • Global Dietary Supplements Market Size (in US$ Billion) for the Years 2019, 2022 and 2025
  • Astaxanthin Finds Role in COVID-19 Management
  • Protein-Fortified Products Rise in Demand
  • Rice Protein Emerges as a Latest Functional Ingredient
  • Dietary Fat Emerges as a New Ingredient for Functional Food & Drinks
  • High Demand for Functional Ingredients in Snack Foods
  • Rising Consumer Interest in Fruit-based Functional Ingredients
  • Rising Demand for Natural Ingredients in Functional Foods
  • Endurance, Cardiovascular, Bone Health, and Other Wide Ranging Benefits Drive Robust Demand for Protein-Based Products
  • Mood Enhancers Gain Momentum
  • Innovations Drive Market Expansion
  • Nanotechnology Evolves as a Boon for Functional Food Manufacturers
  • Nanoencapsulation Improves Delivery and Bioavailability
  • Demographic and Macro Factors Influencing Growth in Functional Food Ingredients Market
  • Ballooning Global Population
  • World Population (in Thousands) by Geographic Region for the Years 2019, 2030, 2050, 2100
  • Millennials Focus on Health & Wellness
  • Global Millennials Population Spread by Region: 2019
  • Millennial Population as a Percentage (%) of Total Population in Select Countries: 2019
  • Focus of Young Working Women on Healthy Living
  • Urbanization Trend
  • World Urban Population in Thousands: 1950-2050P
  • Burgeoning Middle Class Population
  • Global Middle Class Population (In Million) by Region for the Years 2020, 2025 and 2030
  • Global Middle Class Spending (US$ Trillion) by Region for the Years 2020, 2025, 2030
  • Complexities and Challenges: Integration and Adulteration of Functional Food Products

4. GLOBAL MARKET PERSPECTIVE


III. MARKET ANALYSIS

UNITED STATES

  • Functional Food Ingredients Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2022 (E)
  • Market Overview
  • COVID-19 Triggers Interest in Immunity Boosting Diet, Driving Opportunities for Functional Food Ingredients Market
  • Rising Consumption of Functional Foods & Beverages Boosts Market
  • Healthy Functional Beverages Find Favor Among Consumers
  • Demand for Products Promoting Gut and Digestive Health to Fuel Ingredients Market
  • United States: A Niche yet Important Market for Prebiotics
  • Inulin: A Major Prebiotics Ingredients
  • Fiber Polydextrose, Oligofructose and Inulin: Notable Prebiotics for Gut and Digestive Health
  • Prebiotics Maintain Gut Microbiome and Improve Sleep Patterns

CANADA

  • Canada: A Key Supplier for Functional Ingredients and Foods
  • Healthy Growth of Functional Foods Market to Propel Demand
  • Rising Consumer Interest in Gut Health Products Drive Market Demand for Prebiotics

JAPAN

  • Functional Food Ingredients Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2022 (E)
  • Market Overview
  • Aging Population: A Prime Target for Functional Food Makers
  • Japanese Elderly (65+ Years) Population: 2000-2050
  • Japan: A Major Market for Prebiotics

CHINA

  • Functional Food Ingredients Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2022 (E)
  • Market Overview

EUROPE

  • Functional Food Ingredients Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2022 (E)
  • Consumer Focus on Health and Wellness Boosts Growth Prospects
  • Changing Demographics Propel Market Growth
  • European Population By Age Group: Percentage Share Breakdown of Age Groups for 2020 & 2040
  • Health Benefits Drive Adoption of Prebiotic Ingredients
  • Major Products in Prebiotics Market

FRANCE

  • Functional Food Ingredients Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2022 (E)

GERMANY

  • Functional Food Ingredients Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2022 (E)
  • Increasing Focus on Health and Wellness Drives Demand for Functional Food Ingredients
  • Prebiotics Market Poised for Growth

ITALY

UNITED KINGDOM

  • Functional Food Ingredients Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2022 (E)
  • Market Overview

SPAIN


RUSSIA


REST OF EUROPE

ASIA-PACIFIC

  • Functional Food Ingredients Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2022 (E)
  • Asia-Pacific: A Promising Market for Functional Foods & Beverages
  • Health and Wellness Trend Drives Strong Market Demand for Prebiotics

AUSTRALIA

  • Functional Food Ingredients Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Australia for 2022 (E)

INDIA

  • Functional Food Ingredients Market Presence - Strong/Active/Niche/Trivial - Key Competitors in India for 2022 (E)
  • Lucrative Opportunities for Functional Foods and Drinks Drive Market Gains

SOUTH KOREA


REST OF ASIA-PACIFIC

LATIN AMERICA

  • Functional Food Ingredients Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Latin America for 2022 (E)

ARGENTINA

BRAZIL

  • Market Overview

MEXICO

  • Market Overview

REST OF LATIN AMERICA

MIDDLE EAST

  • Functional Food Ingredients Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Middle East for 2022 (E)

IRAN


ISRAEL


SAUDI ARABIA


UNITED ARAB EMIRATES


REST OF MIDDLE EAST

AFRICA

  • Functional Food Ingredients Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Africa for 2022 (E)
  • Active Players in Africa

IV. COMPETITION

  • Total Companies Profiled: 73
Note: Product cover images may vary from those shown

A selection of companies mentioned in this report includes:

  • Ajinomoto Co., Inc.
  • Amway Corporation
  • Archer-Daniels-Midland Company
  • Arla Foods
  • Ashland Inc.
  • Associated British Foods plc
  • BASF SE
  • Cargill, Inc.
  • CP Kelco U.S., Inc.
  • DMH Ingredients, Inc.
  • Fuerst Day Lawson Ltd.
  • Ingredion Inc.
  • International Flavors & Fragrances Inc.
  • Kerry Group plc
  • Koninklijke DSM N.V.
  • Royal Avebe U.A.
  • Tate & Lyle plc
Note: Product cover images may vary from those shown