Functional food ingredients are defined as those ingredients that have been demonstrated to have specific physiological benefits, apart from the main nutritional benefits that are derived from food & beverages. The use of functional food ingredients in the manufacturing of functional food & beverage products is expected to provide nutritive health benefits, prevent/resist chronic diseases, or act as energy boosters.
Functional food ingredients are those that are able to provide certain distinctive performance benefits to a particular food product. The major function of these ingredients is to provide consumers with a wide variety of superior quality, safe, and healthy food products. Various clinical trials and scientific investigations performed by the US Food and Drug Administration (USFDA), European Food Safety Authority (EFSA), and other organizations provide a strong base for the use of functional food ingredients, such as probiotics, prebiotics, omega-3 fatty acids, vitamins, minerals, carotenoids, proteins, phytochemicals, plant extracts, and fibers & specialty carbohydrates, owing to their observed benefits on human health. These ingredients have drastically changed the consumer’s approach toward many food products—right from these products being looked at as solely a source of energy and nutrition, to now being perceived as food components with specific positive effects on human health.
The functional food ingredients market is rising with the increase in the consumption of nutritive convenience food and fortified food, growth in health awareness among consumers leading to healthier diets, growing incidences of chronic diseases, and growth in the need for food enrichment due to the high processing levels of food products. The increasing awareness and usage of functional ingredients and their application in a variety of food & beverage products support the growth of the functional food ingredients market.
According to a report published by MarketsandMarkets, the global demand for functional food ingredients is projected to grow at a CAGR of 6.6% over a period of five years, from USD 68.59 billion in 2018 to reach USD 94.21 billion by 2023. Global trends in functional food ingredients will result in developing regions achieving faster growth in terms of consumption and production than developed regions. Emerging nations such as Brazil, Japan, India, and China as well as Mexico and some countries in Africa are expected to expand and diversify their food & beverage industries. Overall, these emerging countries have the potential to be the key customers for functional food ingredients.
Amongst various functional food ingredient types, prebiotics are expected to grow at the highest rate during the forecast period. Prebiotics help in increased mineral absorption as well as improved bone strength and immunity, other than enhancing gut health. They are rapidly growing in popularity within the functional food market due to their diverse applications in dairy products, health drinks, nutrition bars, breakfast cereal, beverages, bakery products, meat products, mineral supplements, weight-loss products, green foods, infant food, and pet food.
Development of Different Techniques to Create High-value Carotenoids
There is a growing demand for natural carotenoids in their pure form as compared to synthetic ones, especially in the dietary supplements sector due to their high effectiveness and quality. The current methods used for natural means of production of carotenoids are limited and subject to contamination. These methods are costly owing to which the prices of natural carotenoids such as beta-carotene and lycopene are almost three times more than those of synthetic carotenoids.
Thus, the development of different techniques to increase the scope of natural carotenoid production and decrease the cost of these products offers several opportunities to the carotenoids market. A large number of patents are being registered for new techniques to produce natural carotenoids with higher precision, while incurring lower expenses. For example, the National Center for Agricultural Utilization Research, USDA developed a new general cloning method to make recombinant fungal strains that produce beta-carotene and lycopene.
Alternative Sources to Obtain Omega-3
In 2014, according to Nutraceuticals World, anchovy was the leading source of omega-3 and constituted about 70% of the market. End users in some parts of the world avoid fish-based products due to the taste, smell, and dietary preferences. Therefore, fish oil manufacturers are considering new algae, new zooplankton (krill), and genetically modified (GM) plants as alternative sources to produce omega-3. To meet this increasing demand for EPA & DHA, research is further developing the large-scale cultivation of microalgae by studying their various strains to further develop viable and cost-effective omega-3 products. New algae suppliers such as Algae Biosciences Inc. (US), Aurora Algae Inc. (US), and Lonza Group (Switzerland) are entering the market.
Krill has emerged as the next potential source for DHA & EPA, as krill oil comes attached to phospholipids, which lead to the better absorption and delivery of DHA to the brain. Aker Biomarine (Norway) is the only krill oil supplier sponsoring in-vitro, in-vivo, and human clinical trials with EPA & DHA from krill oil. GM plants are also being considered to play an important role to source omega-3. However, the amount of omega-3 harvested is generally lower through GM plants; therefore, the market penetration for manufacturers using GM plants to obtain omega-3 has been minimal. At the same time, there are some commercial barriers to overcome for the usage of GM plants as an alternative source. Therefore, such alternative sources, used for the production of omega-3, are expected to increase the market potential for functional foods requiring omega-3 as a primary or secondary ingredient.
Therefore, the market for functional food ingredients is expected to experience a significant growth rate, owing to R&D and expansion of production capacity, to enhance the applicability & accelerate growth. However, the higher cost for functional food products due to the inclusion of healthier or naturally sourced ingredients is expected to disrupt the market growth during the forecast period.
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