USD 110.2 billion
Functional Food Ingredients Market Size, Share, and Growth Analysis
Functional Food Ingredients Market By Type (Vitamins, Minerals), By Purpose (Weight Management, Digestive Health), By Application (Beverages, Bakery), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG30B2054 |
Region:
Global |
Published Date: February, 2025
Pages:
182
|Tables:
99
|Figures:
69
Format -
Functional Food Ingredients Market Insights
Functional Food Ingredients Market size was valued at USD 110.2 billion in 2023 and is poised to grow from USD 118.02 billion in 2024 to USD 204.31 billion by 2032, growing at a CAGR of 7.1% during the forecast period (2025-2032).
Increasing health consciousness and rising emphasis on the consumption of nutritious food are expected to bolster the sales of functional food ingredients over the coming years. Growing investments in the research and development of novel functional food ingredients are also expected to create new opportunities for functional food ingredient suppliers in the long run. Targeting veganism and plant-based diet trends can also help maximize the demand for functional food ingredients over the coming years. Rising awareness regarding benefits associated with consumption of functional food ingredients is also expected to expand the business scope for market players. Increasing consumption of functional beverages is also slated to favor the global functional food ingredients market growth in the future. However, lack of awareness in emerging regions, stringent regulations, challenges in maintaining ingredient stability, and high production costs are forecasted to impede the demand for functional food ingredients across the study period and beyond.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Probiotics
Fastest Growth
Vitamins
Growth Rate
7.1% CAGR
Global Functional Food Ingredients Market ($ Bn)
Country Share for North America Region (%)
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Functional Food Ingredients Market Segments Analysis
Global Functional Food Ingredients Market is segmented by Type, Purpose, Application and region. Based on Type, the market is segmented into Vitamins, Minerals, Prebiotics, Probiotics, Hydrocolloids, Essential Oils, Omega Fatty Acids, Carotenoids and Others. Based on Purpose, the market is segmented into Weight Management, Digestive Health, Cardio Health and Others. Based on Application, the market is segmented into Beverages, Bakery, Dairy, Snacks and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Type
Probiotics are estimated to account for a dominant global functional food ingredients market share over the coming years. Growing awareness regarding the benefits of probiotics and increasing incidence of gut and digestive disorders are projected to help this segment hold sway over others. Rising investments in the R&D of novel probiotic products containing Bifidobacterium and Lactobacillus species is also slated to boost revenue generation going forward. Moreover, the increasing availability of multiple beverages and foods enriched with probiotics at an affordable price is also slated to help cement the dominance of this segment through 2031.
Meanwhile, the demand for vitamins is expected to increase at an impressive pace across the study period and beyond. Increasing health issues related to vitamin deficiency and rising awareness regarding importance of vitamins in human nutrition are slated to help this segment boost revenue generation. Vitamin A, B, C, D, and K are expected to be some of the most in-demand vitamins across multiple industry verticals going forward. Extensive use of vitamins in multiple essential biological processes of humans is also estimated to bolster its demand in the long run.
Analysis by Application
Food & beverages are estimated to emerge as the dominant segment in the global functional food ingredients industry going forward. High health consciousness, emphasis on improvement of nutritional intake, and growing awareness regarding the benefits of functional ingredients are helping this segment hold sway over others. Surging popularity of functional beverages and increasing affordability of the same are also slated to create new opportunities for functional food ingredients suppliers over the coming years. From dairy products to bakery products, almost all foods and beverages are expected to witness a robust hike in adoption of functional food ingredients in the long run.
On the other hand, the demand for functional food ingredients in pharmaceuticals is slated to rise at a notable pace. Growing demand for natural ingredients in pharmaceuticals as people try to abstain from chemicals and synthetic ingredients are creating new opportunities for functional food ingredient suppliers. Surging demand for nutraceuticals and dietary supplements is also expected to bolster the sales of functional food ingredients in the future. Use of functional food ingredients to prepare raw materials and compounds required for pharmaceutical manufacturing is also slated to open up new avenues of business for functional food ingredient companies through 2031 and beyond.
Global Functional Food Ingredients Market By Type
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Functional Food Ingredients Market Regional Insights
North America is expected to secure the top spot in terms of the global functional food ingredients market size going forward. High consumer spending potential and high awareness regarding functional ingredient benefits are slated to help this region bring in the most revenue of all regions. Growing prevalence of chronic diseases, rising incidence of obesity, and increasing interest in improving fitness and nutrition of American consumers helps this region lead the global functional food ingredient demand outlook. Canada and the United States are forecasted to emerge as the most opportune markets for functional food ingredients vendors operating in the North American region.
The Asia-Pacific region is slated to emerge as the fastest expanding market for functional food ingredient suppliers in the long run. Evolving consumer preferences, growing adoption of healthy lifestyles, and increasing awareness regarding health benefits of functional food ingredients are some key factors offering new opportunities. Growing disposable income of people in this region is also estimated to directly promote the sales of functional food ingredients going forward. China, Japan, and India are slated to be highly opportune markets as aging population and health consciousness rises in these countries across the study period.
Global Functional Food Ingredients Market By Region
- Largest
- Fastest
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Functional Food Ingredients Market Dynamics
Functional Food Ingredients Market Drivers
Rising Health Consciousness
- Increasing health consciousness and awareness regarding diet and nutrition among people around the world is expected to bolster the global functional food ingredients market growth in the future. Consumers are actively seeking products fortified with vitamins, minerals, probiotics, and antioxidants to address specific health concerns like immunity, digestion, and heart health.
Increasing Geriatric Population
- Rapidly increasing number of aging people around the world are also expected to favor the demand for functional food ingredients over the coming years. These aged people are more inclined to opt for foods with specific functional ingredients that help them address age-related health issues such as osteoporosis, joint health, and cognitive decline going forward.
Functional Food Ingredients Market Restraints
Limited Consumer Awareness
- In multiple underdeveloped and developing countries, the awareness regarding the health benefits associated with functional food consumption is quite limited. This lack of awareness is expected to slow down the sales of functional food ingredients in these regions and have a negative impact on a global level as well.
Stringent Regulatory Requirements
- Functional food ingredients are subject to some highly strict regulations to ensure the safety of consumers. Functional food ingredient companies must comply with mandates regarding labeling, safety, and health benefit claims to help them expand their business sustainably. However, compliance with these regulations could be challenging and time-consuming thereby hurting global functional food ingredients market outlook.
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Functional Food Ingredients Market Competitive Landscape
Functional food ingredient manufacturers are slated to invest in ensuring compliance with stringent mandates to maximize their sales potential. Raising awareness regarding the health benefits of functional foods is also slated to be a key strategy for functional food ingredient suppliers in the long run. Functional food ingredient companies can capitalize on the growing popularity of clean-label and plant-based food products through 2031 and beyond.
Top Players in Functional Food Ingredients Market
- Givaudan (Switzerland)
- Glanbia (Ireland)
- Corbion (Netherlands)
- Kerry Group (Ireland)
- Bachem Holding (Switzerland)
- DSM-Firmenich (Netherlands)
- Tate & Lyle (United Kingdom)
- Ingredion Incorporated (United States)
- Archer Daniels Midland Company (United States)
- Cargill (United States)
- BASF SE (Germany)
- DuPont Nutrition & Biosciences (United States)
- Roquette Freres (France)
- Ajinomoto Co., Inc. (Japan)
- Lonza Group (Switzerland)
- Novozymes (Denmark)
- FMC Corporation (United States)
- Sensient Technologies Corporation (United States)
- IFF (International Flavors & Fragrances) (United States)
Recent Developments
- In October 2022, Teijin, a renowned Japanese multinational organization announced the launch of a new institute for functional foods. Teijin Meguro Institute was launched to help strengthen the research and development of probiotics for use in functional foods.
- In November 2022, Geno, a leading provider of sustainable and plant-based materials announced its foray into the functional ingredients market. The company launched a new sugar-free ingredient called Avela™ natural (R)-1,3-Butanediol.
- In December 2022, Merit Functional Foods, a provider of functional ingredients announced the launch of USDA Certified Organic pea protein ingredient. Organic Peazazz C850 was launched to satisfy the surging demand for alternative protein sources around the world.
Functional Food Ingredients Key Market Trends
- Focusing on Veganism and Plant-based Foods: Functional food ingredient companies can focus on developing and launching new plant-based functional ingredients to maximize their business scope. Growing popularity of veganism is expected to push more people to opt for plant-based diets thereby also favoring the demand for plant-based functional food ingredients as well.
- Demand for Personalized Nutrition: Functional food ingredient providers can also expand their business scope by focusing on personalized nutrition as its demand rises among people. Creating functional food formulations using specific functional ingredients for individual needs can help improve revenue generation in the long run. Targeting this functional food ingredients market trend can help companies improve their application scope as people opt for specific diets.
Functional Food Ingredients Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, rising health consciousness among consumers and surging demand for clean label products are key factors promoting the demand for functional food ingredients. However, limited consumer awareness and stringent regulations are expected to hamper sales of functional food ingredients in the future. North America is estimated to emerge as the top consumer of functional food ingredients owing to the presence of more aware consumers and high awareness regarding health benefits of functional foods. Demand for personalized nutrition and rising popularity of veganism are slated to offer new opportunities for functional food ingredient vendors through 2031.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 110.2 billion |
| Market size value in 2032 | USD 204.31 billion |
| Growth Rate | 7.1% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Functional Food Ingredients Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Functional Food Ingredients Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Functional Food Ingredients Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Functional Food Ingredients Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Functional Food Ingredients Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Functional Food Ingredients Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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