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Unprecedented Growth in Functional Food Ingredients Market by 2028

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Lauren Miller

May 20, 2024 - 22:12 pm

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Surge in Functional Food Ingredients Market Anticipated by Global Research Firm

NEW YORK, May 20, 2024 – The worldwide market for functional food ingredients is anticipated to experience substantial growth, expanding by USD 53.14 billion from the year 2024 to 2028, as projected by a cutting-edge analysis from Technavio. This expansion is expected to occur at an impressive compound annual growth rate (CAGR) of approximately 7.38% throughout the forecast period.

For a deeper understanding of the anticipated market size and the trends observed between 2018 and 2022, interested parties can download a free sample report in minutes from Technavio's website.

Technavio's latest market research report titled Global Functional Food Ingredients Market 2024-2028

Key Market Trends Catalyzing Expansion

The functional food ingredients market is being propelled by a surge in demand for omega-3 fatty acids. Suppliers are diversifying their omega-3 sources, turning to alternatives like algae, krill, and genetically modified plants. The U.S. Food and Drug Administration's endorsement of these alternatives has further invigorated the market. Alongside this development, the industry is witnessing the embrace of organic food, the plant-based product revolution, the rise of e-commerce platforms, techniques for enhancing texture and stability, and the effort to upgrade the nutritional profile of foodstuffs.

Market trends show an increasing application across products including sauces, dressings, soups, bakery goods, and pharmaceuticals. New advancements such as high-pressure processing and microwave extraction are refining production processes. The sector is also witnessing heightened interest in vitamin D, prebiotics, and probiotics, and nutrigenomics catering to various health conditions and consumer preferences.

Hurdles Facing the Market

The flourishing growth of the global functional food ingredients market does face challenges, notably the elevated cost of functional foods. These span nutraceuticals to medical foods, with prices marked up by 30% to 500% due primarily to distribution, storage, transportation costs, and complex production processes.

Despite these challenges, the demand remains strong, driven by chronic disease prevalence, the increased prevalence of micronutrient deficiencies, and health-conscious consumers. There is a particular interest in ingredients offering antioxidant benefits, probiotics, dietary fibers, vitamins, and minerals. The market dynamics are also influenced by regulations, tech innovations, and the needs of the animal feed industry.

For an in-depth review of the market including drivers, trends, and challenges, interested buyers can purchase the report.

Segment Insight and Analysis

Breaking down the market, the functional food ingredients sector covers numerous segments, mainly based on product formulations and various applications.

Products Taking the Lead

The pivotal segments in 2023 include:

Probiotics and Prebiotics:

This segment rules the roost, with burgeoning demand owed to chronic disease management and a spike in micronutrient deficiencies. The rising middle-class population and governmental fortification endeavors are significant consumers of these ingredients.

Proteins and Amino Acids:

Products like yogurt, buttermilk, and Greek yogurt, rich in probiotic strains like Lactobacillus and Bifidobacterium, command attention due to health benefits they offer. International food laws play a vital role in ensuring the safety and quality of nutrients like fiber, minerals, vitamins, and a sundry of others.

Dietary Fibers, Vitamins, and Minerals:

The dietary supplements and animal feed industries are investing in fibers, amino acids, and probiotic ingredients due to their necessity and the health benefits they bestow. Advances in technology for probiotic strains are making notable improvements in gut health, the immune system, and cognitive function.

Other Trends:

Probiotic supplements, allergen-free proteins, and “clean label” products reflect consumer preferences that are actively shaping the market.

To get a more extensive breakdown of the market segmentation with a geographical analysis forecast for 2024-2028 and historical data from 2018-2022, those interested can download a sample report.

Applications – Where Functional Ingredients are Making Waves

Food and Beverages:

The functional food ingredients are extensively utilized in the food and beverage industry to create products that offer health benefits beyond basic nutrition.

Pharmaceuticals:

These ingredients are also finding their way into the pharmaceutical domain, being incorporated into various health products to address specific dietary needs and health issues.

Other Industries:

Apart from the food, beverage, and pharmaceutical sectors, these ingredients are also employed in other industries, diversifying their use and enhancing their market potential.

Global Reach – Geographical Dispersion

The market stretches broadly across several key regions:

Asia-Pacific (APAC):

This region is witnessing rapid growth in functional food ingredients due to shifting consumer trends and increasing health awareness.

North America:

The North American market remains robust, driven by a strong focus on health and wellness and advancements in food technology.

Europe:

Europe exhibits strong growth potential, with increasing demand for natural and organic ingredients.

Middle East and Africa, South America:

These regions are gradually picking up pace, with an uptick in demand and changing lifestyles.

A Glimpse at Prominent Market Participants

The functional food ingredients market sees the active participation of several key companies whose profiles include:

  • Ajinomoto Co. Inc.
  • AMCO Proteins
  • Archer Daniels Midland Co.
  • Arla Foods amba
  • Associated British Foods Plc
  • BASF SE

...and many others, all contributing to the market's growth and dynamics with their pioneering products and technologies.

Outstanding Market Research Analysis

The Functional Food Ingredients Market is not just about the variety of products; it's also about the breadth of the origins from which these ingredients are sourced. Ingredients such as carotenoids, minerals, fiber, and vitamins are integral to addressing chronic diseases and micronutrient deficiencies, particularly among middle-class demographics.

Technological advancements and government fortification programs have paved the way for the production of fortified food, ensuring accessibility and promoting health. Furthermore, the popularity of probiotic strains is on the upswing, with recognized benefits for health and wellness.

Cutting-Edge Technologies Redefining Ingredient Extraction

The ingredients are often derived using state-of-the-art processes:

  • High-hydrostatic pressure
  • Ultrasound-assisted extraction
  • Microwave-assisted extraction
  • Pulsed electric field
  • Supercritical fluid extraction

These modern techniques ensure the extraction and preservation of functional food ingredients, optimizing their efficacy and bioavailability.

Consumer Preferences Driving Market Performance

Cardiovascular health, for instance, is a major concern for consumers and fibers, along with antioxidants, are acknowledged for their vital role in this realm. Functional ingredients are thus poised to make a significant impact, aligning with the consumer shift towards healthier living. Energy drinks, protein-enriched sports beverages, and plant-based produce are tapping into this growing demand, fostering the market's substantial growth.

Report Synopsis

To provide a comprehensive overview of the Functional Food Ingredients Market, the report includes:

  1. An executive summary
  2. An examination of the market landscape
  3. Market sizing analyses
  4. Historical data insights
  5. Five Forces Analysis
  6. Detailed market segmentation
  7. A look at the customer landscape
  8. Insights into the geographic landscape
  9. An exploration of key market drivers, challenges, and trends
  10. An in-depth analysis of company landscapes
  11. Company profiles and analysis
  12. An appendix providing additional information

Technavio – A Trailblazer in Market Research

Technavio stands as a leading global technology research and advisory company. Their comprehensive research spans across emerging market trends, offering actionable insights that aid businesses in recognizing market opportunities and formulating strategic plans to fortify their market positions. Housing over 500 specialized analysts, Technavio has an expansive report library consisting of more than 17,000 reports, which encompass 800 technologies across 50 countries. Their expanding client base, including over 100 Fortune 500 companies, depends on Technavio's expansive coverage, detailed research, and market insights to navigate varying market scenarios.

Connect with Technavio

For additional details or to explore the Functional Food Ingredients Market reports further, individuals can reach out to Technavio:

  • Jesse Maida, Media & Marketing Executive
  • US: +1 844 364 1100
  • UK: +44 203 893 3200
  • Email: [email protected]
  • Website: www.technavio.com

Overall, as the world leans more towards a health-centric lifestyle, the functional food ingredients market is set to expand significantly. This growth is underpinned by consumer demands, technological advancements, and increased accessibility to healthy food options. As global behemoths and new entrants innovate to meet this demand, the market outlook for functional food ingredients appears exceptionally promising.

SOURCE: Technavio