Functional Ingredients Market Expected To Witness A Substantial Growth Of $105.64 Billion By 2027: Grand View Research Inc.

 

The global functional ingredients market size is projected to reach USD 105.64 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 6.4% from 2020 to 2027. Growing demand for healthy food with high nutritional value is anticipated to augment the market growth over the forecast period.

The demand for nutraceuticals & functional foods is expected to witness an upward surge owing to consumers opting for immunity boosting supplements during the COVID-19 pandemic. Furthermore, a decline in the consumption of poultry, meat and seafood products across the globe is expected to increase the demand for plant and animal-based protein supplements in the near future. The report will account for Covid19 as a key market contributor.

Functional ingredients are considered to be natural ingredients that possess health-promoting, disease-preventing, and energy-boosting properties. Owing to the tremendous advantages offered by the said ingredients, their demand has witnessed an increase in the global food and beverage market in the past few years.

Growing trend focusing on the strengthening of foods with herbal, vitamins, and mineral extracts benefits the functional ingredients industry and the resulting efforts to produce a more conducive environment for their integration in foods and beverages. Furthermore, health awareness among customers across several regions is rising progressively, thereby augmenting the demand for nutrient-rich foods and drinks.

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Probiotics emerged as the largest product segment in 2020 and is projected to maintain its lead over the forecast period on account of increasing consumer inclination towards preventive healthcare in conjunction with the expansion of efficient probiotic strains on account of factors like rising disposable income and increase in the aging population.

Functional Ingredients Market Report Highlights

• In terms of revenue, the rice protein product segment is projected to expand at the fastest CAGR of 8.9% over the forecast period as it is extensively being utilized in bars, nutritional beverages, confectioneries, desserts, and baked food products
• Growing health concerns, coupled with rising incidence of digestive disorders caused by unhealthy lifestyles, are expected to be the significant drivers of the functional ingredients industry over the forecast period
• The probiotics product segment led the market and accounted for 52.2% share in terms of revenue in 2020 on account of growing health concerns and increasing health issues, such as obesity, diabetes, and digestive disorders
• Asia Pacific is expected to register the fastest CAGR of 6.1% in terms of volume from 2020 to 2027 owing to numerous expansions across emerging countries, like China, India, and Japan, especially in the food and beverage sector
• In November 2017, DowDuPont acquired FMC Corporation’s Health & Nutrition business segment that will support DuPont’s position in the specialty ingredients industry, coupled with increasing its footprint in developing markets globally.

The market is highly competitive and fragmented, with significant players present in the industry. The market has witnessed rapid growth owing to growing consumer consciousness concerning their health and proper diet. The new entrants will have to focus on new product development through varied research and development to compete with existing industry players.

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.

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Furthermore, awareness is increasing among the millennial population concerning the adoption of nutritional food items in their dietary regimes. Consumers across the globe are using the advantages of functional ingredients in obesity management. They are broadly utilized in the pharmaceutical application as a coating material since they exhibit decent water solubility, high actual content, and low viscosity. The market has been witnessing key expansions in application development, product innovation, and others. Such growth and innovations are projected to be the significant parameters for being competitive in this market, with frequent acquisitions and joint ventures being taken by key players in an attempt to expand their product portfolios and gain significant revenue shares.

Companies such as ADM and Royal DSM are investing in the development of newer technologies and expansions, along with raw material producers. Collaborations and agreements are also among the crucial strategies adopted by major players in the industry. Some of the prominent players in the global functional ingredients market are:

• Archer Daniels Midland Company
• Ingredion Incorporated
• Golden Grain Group Limited
• FMC Corporation
• Omega Protein Corporation
• NutriBiotic
• Cargill Incorporated
• Tate & Lyle plc
• Roquette Frères

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

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