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
The Functional Food Ingredients market was valued at approximately USD 4.3 Billion in 2023 and is expected to grow at a robust CAGR of around 11.2% during the forecast period (2024-2032). The growth of the global functional food ingredients market is driven by increasing consumer demand for health-enhancing foods and rising awareness of the role of nutrition in preventing chronic diseases.
Functional food 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 increasing the growth of the functional food ingredients market.
This section discusses the key market trends influencing the Functional Food Ingredients segments as identified by our research experts.
Protein and Amino Acids revolutionizing the market.
The protein & amino acids segment holds the largest share of the functional Food Ingredient market in 2023. Soy-based proteins are a prominent source of protein for vegetarians and vegans. They include a small calorific value, a high nutrient density, and a significantly low carbon footprint, and a low cost. Soy, corn, pulses, millet, sorghum, wheat, groundnuts, barleys, and beans are good sources of amino acids. Because of this consumer have preferred natural and plant-based products which in turn has boosted the demand towards plant-based food amino acids.
North America to hold a significant share of the market
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 market growth.
Functional Food Ingredients is competitive, with several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are 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 facilitate customers with hi-tech and innovative products/technologies.
Recent Developments
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1. Market Introduction
2. Research Methodology Or Assumption
3. Executive Summary
4. Market Dynamics
5. Pricing Analysis
6. Global Functional Food Ingredients Market Revenue (usd Mn), 2022-2032f
7. Market Insights By Type
8. Market Insights By Health Benefits
9. Market Insights By Application
10. Market Insights By Source
11. Market Insights By Region
12. Value Chain Analysis
13. Competitive Landscape
14. Company Profiled
15. Acronyms & Assumption
16. Annexure
Analyzing the historical market, estimating 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 in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, numerous findings and assumptions were taken into consideration to validate these insights. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global Functional Food Ingredients market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up 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 of the industry. Detailed methodology is explained below:
Step 1: In-Depth Study of Secondary Sources:
A detailed secondary study was conducted to obtain the historical market size of the Functional Food Ingredients market 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 Functional Food Ingredients, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report, such as type, health benefits, application, source, and region. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that 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 the Functional Food Ingredients market. Further, we conducted factor analysis using dependent and independent variables such as type, health benefits, application, source, and Functional Food Ingredients regions. A thorough analysis was conducted of demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Functional Food Ingredients market sector across the globe.
Current Market Sizing: Based on actionable insights from the above three steps, we arrived at the current market size, key players in the global Functional Food Ingredients 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/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
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, 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.
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global Functional Food Ingredients. Data was split into several segments and sub-segments after studying various parameters and trends in the type, health benefits, application, source, and regions of the global Functional Food Ingredients market.
The current & future market trends of global Functional Food Ingredients were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends 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 from a first-mover advantage. Other quantitative goals of the studies include:
Q1: What is the global Functional Food ingredient's current size and growth potential?
Q2: What are the driving factors for the growth of global Functional Food ingredients?
Q3: Which segment has the largest share of the global Functional Food Ingredients by type?
Q4: What are the emerging technologies and trends in global Functional Food Ingredients?
Q5: Which region will dominate global Functional Food Ingredients?
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