Functional Ingredients Market (By Type: Probiotics & Prebiotics, Proteins, Botanical Extracts, Vitamin, Minerals, Fatty Acids and Others; By Source: Natural and Synthetic; By Application: Food & Beverages, Personal Care, Pharmaceuticals, Animal Feed, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022 – 2030

The global functional ingredients market size was valued at US$ 106.25 billion in 2021 and is expected to hit US$ 210.58 billion by 2030, poised to grow at a CAGR of 7.9% during the forecast period 2022 to 2030.

Growth Factors:

The market growth is attributed to factors including growing demand for clean label products, shifting regulations in the food and beverage market, and rising awareness among consumers.

Increasing health concerns and growing health issues like obesity, diabetes, and digestive disorders are the significant factors projected to boost the industry growth in the coming years. New investments and introduction of innovative products by substantial producers have resulted in considerable demand for functional ingredients in the food and beverage industry.

The U.S. probiotics industry is characterized by the presence of demographic-specific probiotics, such as for genders and geriatrics. These niche markets have provided regional players the chance to adopt distinguished strategies to develop their product portfolio and maximize their resources. Excessive demand for probiotics-based food and beverage products is projected to drive the U.S. market over the next few years.

Functional ingredients are those ingredients that have disease-preventing, energy-boosting, and health-promoting advantages. The elements that will be added to the end product are expected to be an extract from a natural source of the active ingredient.

Health awareness among customers across several regions is progressively increasing, thereby enhancing the demand for nutritional foods and beverages. Furthermore, consumers are shifting toward fortified convenience wholesome foods and drinks that are rich in nutritional content. Growing income levels, coupled with increasing number of urban residents, are propelling the demand.

Report Scope of the Functional Ingredients Market

Type Insights

Based on the type, the vitamins segment was the dominating segment. This is majorly credited to benefits associated with functional food rich in vitamin such as healthy skin, improved vision, improved blood circulation and better immune system of the body. Furthermore, some consumers require vitamin supplements as they have certain medical conditions which can lead to insufficiencies and functional food provides essential nutrients and vitamins in order to fulfill that particular deficiencies. Casual food or regular meal is not that much efficient enough to provide essential vitamin which led consumer to consume functional food as an additional food to have a healthy body.

On the other hand, the probiotics & prebiotics segment is estimated to be the most opportunistic segment during the forecast period. This is attributed owing to the growing popularity of probiotics among the population which is fuelled by the rising health awareness among the consumers

Source Insights

On the basis of source, the natural segment is the dominating functional ingredient segment in the year 2020 owing the abundant sources of ingredients. Nutritional and epidemiological studies have shown that plants are a rich source of nutraceutical ingredients by having disease-preventing and health-promoting properties. Various plant-based foods arebioactive compound rich in nature with physiological effects, like antioxidant, antimutagenic, anti-inflammatory or antibacterial activities. However, synthetic functional ingredient is the fastest growing segment in the market owing to the myriad demand of the ingredients and inadequate availability fosters huge opportunities to for the synthetic ingredients in the market.

Region Insights

North America dominated the market and accounted for 34% share of global volume in 2021. Increasing health concerns and growing health issues, such as obesity, digestive disorders, and diabetes, are significant factors expected to propel the demand for the product in countries, such as U.S., Canada, and Mexico.

Products targeting health and mental well-being have prompted the food industry to increase new food R&D initiatives. Despite the uncertainties of existing regulations, it outlines the context of a rapidly expanding market in major countries, like the U.S. and Mexico. The industry is also expected to grow on account of the changes in food regulations, growing self-care movement, and overwhelming scientific evidence, highlighting the critical link between diet and health.

Asia Pacific is projected to witness the fastest growth in the market over the forecast period. Strong government policies in the agricultural trade to support functional foods and attract market investments have created a broad scope for development in the region. Countries like China, India, South Korea, Taiwan, and Japan rely on agriculture to some extent because the sector is a considerable contributor to their GDPs.

Asia Pacific has one of the largest functional ingredient markets due to the burgeoning population and rising disposable income among consumers. Rapidly growing consumption of processed food, along with increasing awareness regarding health and fitness in developing economies, is a significant factor boosting the functional food market growth in the region.

Some of the prominent players in the Functional Ingredients Market include:

• Danone
• Glanbia plc
• Hearthside food solutions llc
• Mars, incorporated
• Meiji co., ltd
• Nestlé s.a
• Raisio plc
• Royal frieslandcampinan.v
• Sanitarium health food company
• The kraftheinz company

Segments Covered in the Report

This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2030 and covers subsequent region in its scope:

By Type

• Probiotics & Prebiotics
• Proteins
• Botanical Extracts
• Vitamin
• Minerals
• Fatty Acids
• Others

By Nature

• Synthetic
• Natral

By Application

• Food & Beverages
• Personal Care
• Pharmaceuticals
• Animal Feed
• Others

By Geography

North America

• U.S.
• Canada

Europe

• Germany
• France
• United Kingdom
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Rest of Latin America

Middle East & Africa (MEA)

• GCC
• North Africa
• South Africa
• Rest of Middle East & Africa

Key Points Covered in Functional Ingredients Market Study:

• Growth of Functional Ingredients in 2022
• Market Estimates and Forecasts (2017-2030)
•  Brand Share and Market Share Analysis
•  Key Drivers and Restraints Shaping Market Growth
•  Segment-wise, Country-wise, and Region-wise Analysis
•  Competition Mapping and Benchmarking
•  Recommendation on Key Winning Strategies
•  COVID-19 Impact on Demand for Functional Ingredients and How to Navigate
•  Key Product Innovations and Regulatory Climate
•  Functional Ingredients Consumption Analysis
•  Functional Ingredients Production Analysis
•  Functional Ingredients and Management