Functional Food Ingredients Market Report 2026

The functional food ingredients market size has grown rapidly in recent years. It will grow from $129.78 billion in 2025 to $142.82 billion in 2026 at a compound annual growth rate (CAGR) of 10%. The growth in the historic period can be attributed to growth of functional food production, increasing use of dietary supplements, expansion of fortified food products, availability of diverse bioactive compounds, development of ingredient extraction technologies.

The functional food ingredients market size is expected to see rapid growth in the next few years. It will grow to $213.48 billion in 2030 at a compound annual growth rate (CAGR) of 10.6%. The growth in the forecast period can be attributed to increasing demand for personalized nutrition, rising focus on gut and immune health, expansion of plant-based ingredient sources, growing use in infant and clinical nutrition, increasing innovation in ingredient delivery systems. Major trends in the forecast period include increasing use of bioactive ingredient blends, rising demand for natural functional ingredients, expansion of fiber and probiotic applications, growing adoption of clean-label nutrients, enhanced focus on ingredient traceability.

The increasing demand for dairy products is expected to drive the growth of the functional food ingredients market going forward. Dairy products are derived from the milk of mammals, primarily cows, but also goats, sheep, and other animals. Functional food ingredients in dairy products provide nutritional benefits, support digestive and bone health, aid in weight management, help regulate blood sugar, enhance flavor, and offer lactose-free options. For example, in November 2024, the Foreign Agricultural Service, a US-based government department, reported that milk production in Australia is expected to increase by 1.1% in 2025, reaching 8.8 million metric tons, following a 2.7% rise in 2024 to an estimated 8.7 million metric tons. Therefore, growing demand for dairy products is fueling the expansion of the functional food ingredients market.

Leading companies in the functional food ingredients market are concentrating on creating clean label functional food ingredients. Clean label functional food ingredients are naturally sourced components that offer health benefits while being minimally processed and made from recognizable, straightforward ingredients that consumers can easily comprehend. For example, in February 2024, Ingredion Incorporated, a U.S.-based ingredient solutions provider specializing in a range of sweeteners, starches, and nutritional ingredients, launched NOVATION® Indulge 2940, the first functional native corn starch that delivers unique gelling and film-forming properties while meeting clean label standards. This innovative starch is particularly well-suited for dairy products and alternative cheese applications, enhancing texture and mouthfeel without compromising the consumer preference for familiar ingredients. This development addresses the challenges of creating clean label products and supports sustainability initiatives by improving functionality in applications like vegan pizza cheese and coated fried foods. Ultimately, it allows brands to provide both quality and alignment with health-conscious trends.

In September 2023, Barentz, a food company based in the Netherlands, acquired Unijaya for an undisclosed amount. This acquisition is intended to bolster Barentz's presence in the Asian market by improving its product portfolio and distribution capabilities, especially in the functional food ingredients sector. Unijaya, based in Indonesia, specializes in the distribution of active pharmaceutical ingredients and functional food ingredients.

Major companies operating in the functional food ingredients market are Cargill Incorporated, Archer Daniels Midland Company, BASF SE, Koninklijke DSM NV, Kerry Group, Ingredion Incorporated, Glanbia plc, DuPont Nutrition & Biosciences, FMC Corporation, Roquette Frères, Tate & Lyle PLC, Corbion N V, Chr Hansen Holding A S, Kemin Industries Inc, Beneo GmbH, Naturex S A, Ajinomoto Co Ltd, Royal FrieslandCampina N V, Lonza Group AG, Novozymes A S, Givaudan S A, Symrise AG.

North America was the largest region in the functional food ingredients market in 2025. Europe was the second-largest market in the functional food ingredients market. The regions covered in the functional food ingredients market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the functional food ingredients market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The main types of functional food ingredients are probiotics and prebiotics, carotenoids, dietary fibers fatty acids, vitamins, minerals, and others. Carotenoids are fat-soluble pigments found generally in fruits, flowers, plants, algae, and photosynthetic bacteria. They are also found in some non-photosynthetic bacteria, molds, and yeasts. Carotenoids act as a type of antioxidant for humans and are important for human health. It protects the human body against serious disorders such as heart disease, cancer, and degenerative eye disease. The different sources include natural, synthetic and are used in beverages, dairy products, infant food, bakery and confectionery, others.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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