The functional food ingredients market is estimated to be valued at USD 68.60 billion in 2018 and is projected to reach USD 94.21 billion by 2023, at a CAGR of 6.6%. Functional food ingredients help manage weight, improve infant health, and help prevent conditions such as high blood pressure. These products are popular among younger consumers who are becoming increasingly health conscious. The market is driven by the growth in the need for food enrichment due to high processing levels of food products and R&D and expansion of production capacity to enhance applicability & accelerate growth.
The South American market is projected to grow at the highest CAGR from 2018 to 2023. The region displays a variety of different demographic and developmental trends; the common regional trends that are expected to help drive market growth include rapid urbanization and increased life expectancy, the high occurrence of obesity and malnutrition, rise in incidences of chronic diseases, and mortality rates. All these factors have further propelled consumers to move toward increased adoption of healthier products.
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This report includes a study of marketing and development strategies, along with the product portfolios of leading companies. It includes the profiles of leading manufacturers such as Cargill (US), Archer Daniels Midland Company (US), Koninklijke DSM N.V. (Netherlands), DowDuPont (US), BASF SE (Germany), and Arla Foods (Denmark). Royal Cosun (Netherlands), Ingredion Incorporated (US), Arla Foods (Denmark), Tate & Lyle (US), Ajinomoto (Japan), Kerry Group (Ireland), BENEO (Germany), Chr. Hansen (Denmark), Kemin Industries (US), and Roquette Frères (France) are other players that hold a significant share of the functional food ingredients market.
Market Dynamics:
Drivers
1. Increase in Consumption of Nutritive Convenience Food and Fortified Food
2. Growth in Health Awareness Among Consumers Leading to an Increased Consumption of Healthier Diets
3. Growth in Incidences of Chronic Diseases
4. Growth in Need for Food Enrichment Due to High Processing Levels of Food Products
5. Research & Development and Expansion of Production Capacity to Enhance Applicability & Accelerate Growth
Restraints
1. Higher Cost for Functional Food Products Due to the Inclusion of Healthier Or Naturally Sourced Ingredients
Opportunities
1. Development of Different Techniques to Create High-Value Natural Carotenoids
2. Alternative Sources to Obtain Omega-3
Challenges
1. Complexities Related to the Integration and Adulteration
of Functional Food Products
