Functional Food Ingredients Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2031 - By Product, Technology, Grade, Application, End-user, Region

The global functional food ingredients market is set to witness substantial growth over the forecast period from 2024 to 2031, according to recent market analysis. With an estimated revenue of US$ 17 billion in 2024, the market is expected to surge at a value CAGR of 7.0%, reaching a remarkable US$ 28 billion by the end of 2031. This growth trajectory is propelled by various factors, including evolving consumer preferences, lifestyle changes, and increasing awareness regarding health and wellness.

Focus on Credible Labeling and Certifications

In response to the escalating demand for clean label, organic, and natural products, key players in the global functional food ingredients market, such as Cargill, Ingredion Inc., and DUPONT, are prioritizing credible labeling and certifications. These certifications, including organic, clean label, non-GMO, and others, serve as a testament to the quality and authenticity of functional food ingredients. As health-conscious consumers continue to seek products with transparent labeling, the emphasis on certifications is expected to drive market growth significantly.

Savvy Consumers to Accelerate Market Growth

The increasing awareness among consumers regarding health-related issues is driving the demand for functional food products enriched with essential nutrients. With a growing population and rising urbanization contributing to health concerns such as high blood pressure, weight issues, and diabetes, there is a notable shift towards healthier dietary choices. Consequently, manufacturers are leveraging functional food ingredients to meet the demand for nutritionally rich products, thereby fueling market expansion.

Changes in Lifestyle and the Increase of Chronic Diseases

The prevalence of chronic non-communicable diseases, coupled with modern lifestyle factors, underscores the importance of incorporating functional foods into daily routines. Consumers, particularly younger demographics, are increasingly embracing functional foods to support physical and mental well-being. As concerns about healthcare costs and quality of life continue to rise, there is a clear opportunity for the global functional food ingredients market to address these evolving consumer needs.

Lack of Awareness in Underdeveloped Countries

While functional food ingredients enjoy robust growth in developed regions, underdeveloped countries face challenges related to low awareness and affordability. Despite the numerous health benefits offered by functional foods, limited penetration and low consumer incomes hinder market expansion in these regions. Addressing this disparity presents an opportunity for industry players to diversify their market reach and foster inclusive growth.

Country-wise insights

North America currently dominates the global Functional Food Ingredients market, with the United States holding the highest market value share, surpassing 60%. This is attributed to the strong consumer preference in the U.S. for food products and ingredients rich in vitamins, minerals, and natural nutrients.

In the Middle East & Africa region, the demand outlook for Functional Food Ingredients is optimistic. The market value for this region in 2024 was substantial and is projected to grow steadily by the end of 2031. Consumers in the Middle East & Africa are increasingly drawn towards clean label and organic products, which is expected to drive sales of functional food ingredients in the coming years.

Category-Wise Insights

Among functional food ingredient types, vitamins experience high demand globally, with a revenue of US$ 3,989.1 million in 2023. This trend is attributed to consumer preferences for vitamin supplements and fortified food products. Additionally, the beverage industry emerges as a significant contributor to market growth, with an estimated demand of US$ 6,746.2 million in 2023, fueled by the increasing popularity of functional beverages.

Competitive Analysis

Leading manufacturers in the functional food ingredients market are focusing on expanding production capacity, adopting latest technologies, and obtaining globally recognized certifications to enhance product quality and credibility.

Key companies profiled

• DuPont de Nemours, Inc.
• Archer Daniels Midland Company
• Cargill, Incorporated
• BASF SE
• Kerry Group
• Tate & Lyle PLC
• Ingredion Incorporated
• Tereos S.A
• Meelunie B.V.
• Roquette Frères S.A.
• Euroduna Food Ingredients GmbH
• Blattmann Schweiz AG
• BENEO GmbH
• A&B Ingredients

Functional Food Ingredients Industry Research by Category

By Type:

• Vitamins
• Minerals
• Prebiotics & Dietary Fibers
• Probiotics
• Carotenoids
• Proteins
• Omega-3 Fatty Acids

By End Use:

• Beverages
• Dairy & Dairy Based Products
• Infant Food
• Bakery & Confectionery

By Region:

• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa

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