Functional Food Ingredients Market: Current Analysis and Forecast (2021-2027)

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Emphasis on Type (Probiotics, Proteins & Amino Acids, Phytochemicals & Plant Extracts, Prebiotics, Fibers & Specialty Carbohydrates, Omega-3 Fatty Acids, Carotenoids, Vitamins, and Minerals); Health Benefits (Gut Health, Cardiovascular Health, Bone Health, Immunity, Nutritive Health, Weight Management, Others); Application (Food, Beverages); Source (Natural, Synthetic); Region/Country

Published:

Nov-2021

Pages:

317

Table:

68

Figure:

176

Report ID:

UMCG21492

Geography:

Clear
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Report Description
Table of content
Research Methodology

Report Description

Functional Food Ingredients Market 2
Functional Food Ingredients Market 2

Functional foods ingredients offer a health benefit beyond basic nutrition for the improvement of outer or inner health. The Academy of Nutrition and Dietetics categorizes the three main functional foods such as natural products (vegetables, fruits, grains, dairy, fish, and meat), enriched or fortified foods, and synthesized food ingredients like prebiotics. The increasing prevalence of chronic diseases is augmenting the consumer shift towards healthier food alternatives. In addition, the Rising consumer interest, and high awareness of immunity-enhancing properties of proper diet and food habits, are some of the key factors fueling the growth of the global functional food ingredients market. Moreover, the increase in functional food ingredient product sales is burgeoning the growth of the functional food ingredients market. According to the U.S. Census 2020, with 109 million Americans aged 50 or older and 48 million aged 65 and older, lifestyle issues and conditions of aging will progressively drive functional food sales.

Global Estimated deaths due to Chronic Diseases, 2019

Functional Food Ingredients Market 1
Functional Food Ingredients Market 1

Insights Presented in the Report

“Amongst Type, Dairy & Frozen Desserts segment holds the major share.”

Based on Type, the market is fragmented into Probiotics, Proteins & amino acids, Phytochemicals & plant extracts, Prebiotics, Fibers & specialty carbohydrates, Omega-3 fatty acids, Carotenoids, Vitamins, and Minerals. The protein & amino acids segment garners a significant share of the functional food ingredient market in 2020. Plant-based proteins are a major source of protein for vegetarians and vegans. Their low carbon footprint, high nutritional profile, and low price are major factors driving their consumption. Plant-based sources such as Soy, corn, pulses, millet, sorghum, sunflower seeds, wheat, groundnuts, barley, and beans are highly enriched in amino acid content. The increasing inclination of consumers toward natural and plant-based products has been encouraging the demand for plant-based food amino acids.

“Amongst Health Benefits, Nutritive Health segment holds the major share.”

Based on Health Benefits, the market is segmented into Gut health, Cardiovascular health, Bone health, Immunity, Nutritive health, Weight management, and Other health benefits. The Nutritive Health segment garners a significant share of the functional food ingredient market in 2020. The increasing awareness among the population concerning the health benefits of probiotics and prebiotics is intensifying the segment growth. Moreover, the rising demand for dietary supplements and rising disposable income are further generating lucrative functional food ingredients market growth opportunities.

“Amongst Application, the Beverages segment is anticipated to grow at the highest CAGR.”

Based on Application, the market is bifurcated into Food and Beverages. The Beverages segment holds the largest share in 2020 and is expected to register the highest CAGR in the upcoming period. Many Functional food ingredients for example minerals, vitamins, and proteins are used in energy drinks. Numerous energy drinks have been developed by manufacturing companies to deliver specific health benefits, for example promoting heart health, energy-boosting, and improving immunity. With the ever-increasing range of functional applications being sought by consumers, suppliers are using new ingredients that better meet the functional goals of consumers. For instance, in the sports drink field, suppliers are developing their choice of ingredients to improve sports nutrition benefits. Drinks with branch-chained amino acids and creatines growing in popularity.

“Amongst Source, the Natural segment is anticipated to witness significant growth.”

Based on the Source, the market is bifurcated into Natural and Synthetic. The Natural segment is further segmented into Animal, Microbial, and Plant. The Natural segment holds the largest share in 2020 and is expected to register the highest CAGR in the upcoming period owing to a high preference towards food ingredients in natural form, rising consumer demand for natural ingredients. Moreover, the rising health benefits coupled with ingredients obtained from natural sources are also fueling the functional food ingredients market.

“North America region signifies one of the largest markets”

For a better understanding of the market adoption of Functional Food Ingredients, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, and the Rest of North America), Europe (Germany, France, Spain, United Kingdom and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. North America will dominate the Functional Food Ingredients market on account of the increase in demand for high-priced fortified nutritional food & beverage products in the region. The application of food ingredients is estimated to increase at a faster pace in the region due to its demand among consumers. In addition, the changing customers’ lifestyles are also propelling the growth of the functional food industry in the North American region. In addition, the rising awareness of functional food ingredients due to the rising food allergies is also deriving the market growth. Some of the major players operating in the market include Amway, Archer Daniels Midland Company, Arla Foods, BASF SE, Cargill Inc, DSM NV, General Mills Inc, Herbalife, Ingredion Incorporated, and Kerry Group PLC. Several M&As along with partnerships have been undertaken by these players to boost their presence in different regions. Several M&As along with partnerships have been undertaken by these players to boost their presence in different regions.

Reasons to buy this report:

  • The study includes market sizing and forecasting analysis validated by authenticated key industry experts
  • The report presents a quick review of overall industry performance at one glance
  • The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
  • Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
  • The study comprehensively covers the market across different segments
  • Deep dive regional level analysis of the industry

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1.1.Market Definitions
1.2.Limitation
1.3.Stake Holders
1.4.Currency used in Report
2.1.Research Process of the Functional Food Ingredients Market
2.2.Research Methodology of the Functional Food Ingredients Market
2.3.Forecasting Method
2.4.Respondent Profile
2.5.Main Objective of the Functional Food Ingredients Market Study
3MARKET SYNOPSIS

 

4.       EXECUTIVE SUMMARY

 

5GLOBAL FUNCTIONAL FOOD INGREDIENTS MARKET COVID-19 IMPACT

 

6GLOBAL FUNCTIONAL FOOD INGREDIENTS MARKET REVENUE (USD BN), 2019-2027F

 

7.1.Probiotics
7.2.Proteins & amino acids
7.3.Phytochemicals & plant extracts
7.4.Prebiotics
7.5.Fibers & specialty carbohydrates
7.6.Omega-3 fatty acids
7.7.Carotenoids
7.8.Vitamins 
7.9.Minerals 
8.1.Gut health
8.2.Cardiovascular health
8.3.Bone health
8.4.Immunity
8.5.Nutritive health
8.6.Weight management
8.7.Other health benefits
9.1.Food
9.2.Beverages 
10.1.Natural
 10.1.1.
 10.1.2.
 10.1.3.
10.2.Synthetic
11.1.North America Functional Food Ingredients Market 
 11.1.1.United States
 11.1.2.Canada
 11.1.3.Rest of North America
11.2.Europe Functional Food Ingredients Market 
 11.2.1.Germany
 11.2.2.U.K.
 11.2.3.France
 11.2.4.Spain
 11.2.5.Rest of Europe
11.3.Asia Pacific Functional Food Ingredients Market
 11.3.1.China
 11.3.2.Japan
 11.3.3.India
 11.3.4.Australia
 11.3.5.Rest of Asia Pacific
11.4.Rest of World Functional Food Ingredients Market 
12.1.Market Drivers
12.2.Market Challenges
12.3.Impact Analysis

 

13FUNCTIONAL FOOD INGREDIENTS MARKET OPPORTUNITIES
14FUNCTIONAL FOOD INGREDIENTS MARKET TRENDS
15LEGAL & REGULATORY FRAMEWORK

 

16.1.Demand Side Analysis
16.2.Supply Side Analysis
 16.2.1.Top Product Launches
 16.2.2.Top Business Partnerships
 16.2.3.Top Business Expansions, Investments and Divestitures
 16.2.4.Top Merger and Acquisitions

 

17VALUE CHAIN ANALYSIS
18.1.Competitive Landscape
 18.1.1.Company Shares, By Revenue
19.1.Amway. 
19.2.Archer Daniels Midland Company.
19.3.Arla Foods.
19.4.BASF SE. 
19.5.Cargill Inc.
19.6.DSM NV. 
19.7.General Mills Inc.
19.8.Herbalife.
19.9.Ingredion Incorporated.
19.10.Kerry Group PLC.
20DISCLAIMER

Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future market of the Global Functional Food Ingredients market were the three major steps undertaken to create and analyze the adoption of Functional Food Ingredients for the different applications such as Food and Beverages etc. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the Functional Food Ingredients sector. Post assumption and validation of market numbers through primary interviews, we employed a top-down approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

The detailed secondary study was conducted to obtain the historical market size of the Functional Food Ingredients through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Functional Food Ingredients market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments for major regions. Major segments included in the report are Type, Health Benefits, Application, Source, and Region. Further country-level analyses were conducted to evaluate the overall adoption of Functional Food Ingredients in every region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of Functional Food Ingredients. Further, we conducted factor analysis using dependent and independent variables such as Rising consumer interest, and high awareness of immunity-enhancing properties of proper diet and food habits.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down approach was applied to arrive at the market forecast about 2027 for different segments and subsegments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

  • The industry’s market size, in terms of value (USD) and the adoption rate of Functional Food Ingredients across the major markets domestically
  • All percentage shares, splits, and breakdowns of market segments and sub-segments
  • Key players in the Functional Food Ingredients market in terms of services offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Functional Food Ingredients Market 3
Functional Food Ingredients Market 3

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Functional Food Ingredients market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of Application, Type, Health Benefits, Source and Region of the Functional Food Ingredients market.

Main Objective of the Functional Food Ingredients Market Study

The current & future market trends of Functional Food Ingredients were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

  • Analyze the current and forecast market size of Functional Food Ingredients in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
  • Segments in the study include areas of Type, Health Benefits, Application, Source, and Region
  • Define and analysis of the regulatory framework for the Functional Food Ingredients industry
  • Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
  • Analyze the current and forecast market size of the Functional Food Ingredients market for the major region
  • Major regions studied in the report include North America (the United States and Canada), Europe (Germany, France, Spain, and United Kingdom), Asia-Pacific (China, Japan, India, and Australia), and the Rest of the World
  • Company profiles of the Functional Food Ingredients market and the growth strategies adopted by the market players to sustain in the fast-growing market
  • Deep dive regional level analysis of the industry