The functional ingredients market comprises natural ingredients that provide additional health or medicinal benefits beyond their basic nutritional value. These ingredients include vitamins, minerals, fatty acids, fiber, proteins and plant extracts. They play a crucial role in supplementing nutrition to the human body. The demand for functional ingredients is growing rapidly owing to increasing health awareness among consumers and demand for products offering additional health benefits. Rapid urbanization and changing lifestyles have increased the prevalence of lifestyle diseases such as obesity, diabetes and cardiovascular issues. As a result, consumers are adopting nutraceutical and dietary supplements to maintain health and wellness, driving the need for functional ingredients.
The Global Functional Ingredients Market is estimated to be valued at US$ 87.27 Bn in 2024 and is expected to exhibit a CAGR of 6.6% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the Functional Ingredients market are Archer Daniels Midland Company Cargill, Incorporated, E. I. du Pont de Nemours and Company, Ingredion Incorporated Koninklijke DSM N.V., Tate and Lyle plc FMC Corporation, and Omega Protein Corporation. These players are focusing on new product launches, partnerships, mergers and acquisitions to expand their market share.
There is immense Functional Ingredients Market Demand opportunities in developing markets owing to increasing health awareness and disposable income. Rapid urbanization is leading to lifestyle diseases creating demand for nutraceutical and sports nutrition products using functional ingredients.
Key players are expanding globally to leverage opportunities in emerging economies with large consumer bases. In 2021, Cargill acquired DSM’s pet food and aqua nutrition business to expand in the Asian markets. FMC Corporation acquired a German nutrition company to expand its portfolio of Algal DHA and Omega-3 ingredients across EMEA and Asia Pacific.
Market drivers - Rising awareness about the health benefits of functional ingredients is a key growth driver. With growing health issues, demand for dietary supplements and fortified foods containing functional ingredients is increasing. Availability of extensive research on benefits is further propelling the market growth.
Market restraints - High production costs and regulatory issues associated with certain types of functional ingredients act as key challenges. Also, lack of standardization and awareness in developing countries inhibits market potential. Alternative ingredients and shifting consumer preferences also impact market growth.
Segment Analysis
The functional ingredients market is primarily segmented into probiotics, proteins, dietary fiber, vitamins & minerals, and others. The probiotics segment is dominating the market owing to the health benefits associated with their consumption such as strengthening the immune system, aiding in digestion, preventing diarrhea etc. The growing application of probiotics in food & beverage, pharmaceutical and dietary supplements further drives the growth of this segment.
Global Analysis
Regionally, North America is projected to witness the fastest growth in the Functional Ingredients Market Regional Analysis during the forecast period. This is attributed to the rising health consciousness and growing demand for nutritional and healthy food items. In addition, presence of major players and availability of advanced technologies for developing innovative ingredients drive the growth of functional ingredients market in the region.
Asia Pacific dominates the global market and is expected to grow at a significant rate during the forecast years due to changing lifestyle, growing population and rise in per capita income in the region.
Choose the language that resonates you-
About Author-
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
(LinkedIn: www.linkedin.com/in/alice-mutum-3b247b137 )
Comments
0 comment