The functional food ingredients market is estimated at USD 98.9 billion in 2021 and is projected to grow at a CAGR of 6.8% to reach USD 137.1 billion by 2026. The growth in the functional food ingredients market is attributed to the growing health awareness among consumers, leading to an increase in the adoption of healthier diets. Food safety concerns & adherence to stringent international quality standards and regulations restrain the growth of the functional food ingredients market.

“The market for prebiotics, by type, is projected to witness the fastest growth in the market during the forecast period."
Prebiotics are generally defined as non-digestible food ingredients that beneficially affect the host by selectively stimulating the growth. It also stimulates the growth activity of one or a limited number of bacterial species already established in the colon and thus improve the host’s health. The most common type of prebiotic is soluble dietary fiber inulin and others (oligofructose, inulin, and polydextrose). As these ingredients help manage weight, sharpen mental faculties, and improve infant health, these products tend to be sought after by younger consumers. The market for prebiotics in food is growing rapidly. According to a report on the world prebiotics market by the National Center for Biotechnology Information, US, published in 2015, there were over 400 prebiotic food products and more than 20 companies producing oligosaccharides and fibers used as prebiotics.

“The natural source segment dominated the functional food ingredients market in 2020.”
Functional food ingredients are most widely sourced from natural sources. Most companies in the functional food ingredients offer products sourced from natural sources. Various studies have indicated that different kinds of food wastes obtained from fruits, vegetables, cereal, and other food processing industries can be used as a potential source of bioactive compounds and nutraceuticals, which have significant applications in treating various ailments. Different secondary metabolites, minerals, and vitamins have been extracted from food waste using various extraction approaches.

“The infant food segment dominated the functional food ingredients market in the food application.”
The market for infant food is estimated to account for the largest share of the food segment of the functional food ingredients market. Infant food promotes and improves the healthy growth & development of infants and thus, accounts for significant consumption of functional food ingredients. According to the World Health Organization (WHO), in 2019, about 45% of all child deaths (around 3.1 million child deaths annually) are attributed to malnutrition. Functional food ingredient addition to infant formula ensures the availability of the above-mentioned proteins, lipids, vitamins, and minerals to the infant in their growth years.

“European market is driven by consumer demand for a wide range of food products with functional benefits such as gut health, bone health, immunity, and heart health”.
Europe accounted for a share of about 30.9% in the global functional food ingredients market in 2020 in terms of value. Although the market in the region has been growing at a slower pace in comparison to all the geographic regions, the market for functional food & beverages is estimated to be positioned only second to North America. Over the years, the region has become highly aware of other non-nutritive biologically active compounds in food products, apart from the generalized vitamins and minerals. This has not only lead to many more consumers becoming aware of the benefits associated with the consumption of functional food & beverages but also to many manufacturers of functional food ingredients investing in the region to develop newer functional food products. The region had also launched a new functional food network for the European food industry to enable innovations in the field.

Break-up of Primaries:

  • By Company Type: Tier 1 - 23 %, Tier 2 - 30%, and Tier 3 - 47%
  • By Designation: D-Level - 36%, C-Level - 24%, and Others* - 40%
  • By Region: Asia Pacific – 45%, North America - 20%, Europe - 30%, Middle East & Africa – 5%

*Others include sales managers, marketing managers, and product managers.

Research Coverage:
The report segments the functional food ingredients market on the basis of by type, by health benefits, by application, by source; region. In terms of insights, this report has focused on various levels of analyses?the competitive landscape, end-use analysis, and company profiles, which together comprise and discuss views on the emerging & high-growth segments of the global functional food ingredients, high-growth regions, countries, government initiatives, drivers, restraints, opportunities, and challenges.

Reasons To buy this report:

  • To get a comprehensive overview of the functional food ingredients market
  • To gain wide-ranging information about the top players in this industry, their product portfolios, and key strategies adopted by them
  • To gain insights about the major countries/regions in which the functional food ingredients market is flourishing