Global Functional Food Ingredients Market: Snapshot
The increasing demand for health benefitting foods that is needed beyond basic nutrition to promote optimal health is currently the cornerstone of the development of functional food ingredients market. The growing awareness among a large population demographic regarding the consumption of nutritive food rather than only satisfying taste and appeal considerations is providing a strong basis for the growth of players in the market. As a result, consumers are opting for nutritive convenience foods and nutritionally fortified foods in place of traditional convenience and junk foods. In particular, in developed economies, the changing perception of food cabinet as a medical cabinet is leading to an increasing number of consumers stocking up on wholesome foods. Hence, functional foods are increasingly becoming a commonality in the kitchens of health-savvy consumers.
Increasing product innovations complemented with the development of novel chemicals to enhance the taste and appeal of functional food is further giving an impetus to the functional food ingredients market. Furthermore, the easy availability of a large variety of functional foods is favoring the growth of this market.
However, the market is challenged by stringent regulatory agencies that have a lengthy approval process before food is available for commercial sales. These mandates are based on the safety norms in place for foods to be suitable for consumption for varied social demographics and varied age groups. Accredited agencies such as the UN’s FAO and FDA are constantly monitoring the use of colors and chemicals in foods, especially for new markets such as the global functional food ingredients market. As such, product manufacturers are under pressure to obtain approvals prior to manufacture and distribution, which adds up to the time taken for the final product to be available for commercial sales.
In terms of revenue, the global market for functional food ingredients is projected to be worth US$32.4 bn by 2024 increasing from US$19.38 bn in 2015 at a CAGR of 6.0% between 2016 and 2024.
Rising Disposable Incomes and Increasing Spending on Health Benefitting Foods to Boost Functional Food Ingredients Market in Asia Pacific and Latin America
North America stood as the largest market for functional food in 2015 accounting for US$6.99 bn revenue of the overall market. The region is displaying a robust demand for functional foods in comparison to functional beverages due to their increasing availability in restaurants and eating joints.
However, the emerging economies of Asia Pacific and Latin America are currently offering tremendous growth opportunities for players in the functional food ingredients market. Countries such as China, India, Brazil, and other nations that are in similar state of intense economic growth have a large working class population with disposable incomes and are spending heftily on healthy foods and nutritional supplements. This is expected to translate into great opportunities for manufacturers of functional food ingredients and also due to relatively relaxed regulations in Latin America and Asia Pacific.
Demand for Functional Foods to Remain High from Functional Beverages Segment
The demand for functional foods is expected to outdo the demand for functional beverages. Although beverages have been popular due to ease of manufacturing and can be modified to myriad tastes, functional foods are displaying a greater demand for health reasons.
Some of the leading players operating in the global functional food ingredients market are Associated British Foods PLC, Cargill Incorporated, Archer Daniels Midland Company, BASF SE, DMH Ingredients, Ajinomoto Co. Inc., Kerry Group PLC, Ingredion Incorporated, E.l. Du Pont De Nemours and Company, Arla Foods, and Koninklijke Dsm N.V.
Global Functional Food Ingredients Market: Overview
This report covers the analysis and forecast of the functional food ingredients market on a global and regional level. The study provides historic data of 2015 along with forecast for the period between 2016 and 2024 based on volume (Kilo Tons) and revenue (US$ Bn).
The study provides a decisive view of the functional food ingredients market by segmenting it based on ingredients type, health benefits, application, and regional demand. Application segments have been analyzed based on current trends and future potential. The market has been estimated from 2016 to 2024 in terms of volume (Kilo Tons) and revenue (US$ Bn). Regional segmentation includes the current and forecast demand for North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. These have been further sub-segmented into countries and regions with relevance to the market. The segmentation also includes demand for individual applications in all regions.
The study covers the drivers and restraints governing the dynamics of the market along with their impact on demand during the forecast period. Additionally, the report includes potential opportunities in the functional food ingredients market on the global and regional level.
Global Functional Food Ingredients Market: Scope of the Study
The study encompasses market attractiveness analysis, wherein applications have been benchmarked based on their market size, growth rate, and general attractiveness for future growth.
The market has been forecast based on constant currency rates. Prices of functional food ingredients vary in each region and are a result of the demand-supply scenario in the region. Hence, a similar volume-to-revenue ratio does not follow for each individual region. Individual pricing of functional food ingredients for each application has been taken into account while estimating and forecasting market revenue on a global basis. Regional average price has been considered while breaking down the market into segments in each region.
Global Functional Food Ingredients Market: Research Methodology
The report provides the size of the functional food ingredients market in 2015 and the forecast for the next nine years up to 2024. The size of the global functional food ingredients market is provided in terms of both volume and revenue. Market volume is defined in Kilo Tons, while market revenue for regions is in US$ Bn. The market size and forecast for each product segment is provided in the context of global and regional markets. Numbers provided in this report are derived based on demand generated from different applications and types of raw materials.
Market estimates for this study have been based on volume, with revenue being derived through regional pricing trends. The price for commonly utilized grades of functional food ingredients in each application has been considered, and customized product pricing has not been included. Demand for functional food ingredients has been derived by analyzing the global and regional demand for functional food ingredients in each application. The global functional food ingredients market has been analyzed based on expected demand. Market data for each segment is based on volume and corresponding revenues. Prices considered for calculation of revenue are average regional prices obtained through primary quotes from numerous regional suppliers, distributors, and direct selling regional producers based on manufacturers’ feedback. Forecasts have been based on the expected demand from functional food ingredients. We have used the top-down approach to estimate the global functional food ingredients market, split into regions.
The product type split of the market has been derived using a top-down approach for each regional market separately, with the global product type segment split being an integration of regional estimates. Companies were considered for the market share analysis based on their product portfolio, revenue, and manufacturing capacity. In the absence of specific data related to the sales of functional food ingredients of several privately held companies, calculated assumptions have been made in view of the company’s product portfolio and regional presence along with the demand for products in its portfolio.
Global Functional Food Ingredients Market: Competition Analysis
The report covers a detailed competitive outlook that includes market share and company profiles of key players operating in the global market. Key players profiled in the report include Cargill, Incorporated (U.S.), Ingredion Incorporated (U.S.), Archer Daniels Midland Company (U.S.), Kerry Group PLC (Ireland), Associated British Foods PLC (U.K.), E. I. Du Pont De Nemours and Company (U.S.), Arla Foods (Denmark), BASF SE (Germany), Koninklijke Dsm N.V. (Netherlands), DMH Ingredients (U.S.), Ajinomoto Co., Inc. (Japan).
The global functional food ingredients market has been segmented into:
Global Functional Food Ingredients Market: By Ingredients Type
- Proteins and Amino Acids
- Prebiotics and Dietary Fibre
- Omega 3 and 6 fatty acids
- Essential Oils
- Soy Protein
Global Functional Food Ingredients Market: By Health Benefits
- Bone Health
- Heart Health
- Weight Management
- Gut Health
Global Functional Food Ingredients Market: By Application
- Baby Food
- Sports/Nutrition Bars
- Dairy Alternatives
- Meat Alternatives
- Convenience Beverage
Global Functional Food Ingredients Market: By Geography
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East and Africa (MEA)
- South Africa
- Rest of MEA
- Latin America (LATAM)
- Rest of LATAM