Functional ingredients Market To Achieve Potentially Significant Gains With Rising CAGR In Forecast Period 2023-2030

Posted by Mrudula Anil Karmarkar on June 5th, 2023

The global functional ingredients market size is expected to reach USD 122.3 billion by 2030, expanding at 6.6% CAGR from 2023 to 2030, according to a new report by Grand View Research, Inc. Factors such as increasing consumer awareness about the health benefits of functional ingredients, growing demand for functional food and beverage products, and increasing investment in research and development are driving the market growth.

Another aspect that is propelling the market expansion is the growing incidence of chronic diseases. Consumers are becoming increasingly aware of the link between chronic diseases such as obesity and diabetes & their diet. Consumers are searching for functional food and beverage products that can help to prevent or manage these conditions. As an illustration, there is a rising demand for functional food and beverage products that contain high levels of fiber, such as fruits and whole grains, which can help prevent or manage diabetes and heart disease.

Leading manufacturers in the market include DuPont de Nemours; Cargill; Kerry Group; and Arla Foods. These companies are known for their strong brand recognition, extensive product portfolio, and investments in research and development to develop new functional ingredients.For example, DuPont de Nemours, Inc. recently launched a range of new probiotic ingredients that can be used in a variety of food and beverage applications.

Overall, the market is a rapidly growing industry, driven by the increasing consumer demand for functional food and beverage products. Leading manufacturers in the market are focusing on product development, expansion, research and development, and sustainability to meet the changing needs of consumers and to stay competitive in the industry. For example, DSM expanded its production facilities in North America to meet the growing demand for functional ingredients in the region.

This is attributed to increasing consumer awareness about the health benefits of functional ingredients, growing demand for functional food and beverage products, and increasing investment in research and development. Additionally, the rise in the number of health-conscious consumers and the increasing incidence of chronic diseases are also expected to contribute to market growth. Key functional ingredients include probiotics, vitamins, minerals, fibers, and amino acids, which are widely used in food and beverage, dietary supplements, and animal feed industries.

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The U.S. functional ingredient industry is expected to witness a significant growth rate due to several factors. One of the major factors driving the market growth is the advancement in technology and subsequently, innovations in functional ingredients. Companies are constantly developing new ingredients that offer a wide range of health benefits, such as reducing the risk of cancer and improving cognitive function. For instance, Cargill, Inc., another major player in the market, has developed a new line of plant-based proteins that can be used in functional food and beverage products.

Functional ingredients Market Report Highlights

• Rice protein is expected to witness the highest growth rate of more than 9% over the forecast period owing to its utilization in nutritional beverages, confectioneries, baked food products, bars, and desserts
• Food & beverage application is expected to grow at 7.1% CAGR from 2023 to 2030 due to various health benefits
• Asia Pacific is expected to register the fastest CAGR of 8.0% during the forecast period, due to the rise in popularity of ingredients such as folate, prenatal multivitamin, vitamin D3, and magnesium in countries such as China, Japan, and India
• The market is expected to be driven by a shift in consumer preferences towards premium personal care products made with natural and herbal ingredients, particularly in the personal care sector
• As the market grows, it is likely to become difficult for new players to enter because most of the major players are already well-established throughout the value chain

The rising demand for functional probiotic ingredients is playing a significant role in driving the growth of the market. Probiotics are live microorganisms that, when consumed in adequate amounts, can provide health benefits. They are considered functional ingredients because of their ability to improve gut health, boost the immune system, and prevent or manage chronic diseases.

The COVID-19 pandemic had a moderate impact on the market. The pandemic led to a heightened awareness of health and immunity among consumers, which increased the demand for ingredients that can boost immunity and overall health. For instance, there has been an increase in demand for vitamins, minerals, and probiotics, which are known to support the immune system.

The global functional ingredients industry is becoming increasingly consolidated, with a few large companies controlling a large share of the market. This is driven by mergers and acquisitions, as well as partnerships and collaborations between companies. Companies are investing heavily in research and development to develop new functional ingredients that can provide a wide range of health benefits. This includes developing ingredients that can help to prevent or manage chronic diseases such as diabetes, heart disease, and cancer.

List of Key Players in the Functional ingredients Market

• ADM
• Ingredion Incorporate
• Cargill, Incorporated
• ate & Lyle
• Roquette Frères
• Golden Grain Group Limited
• FMC Corporation  
• Plasma Nutrition Inc.
• NutriBiotic
• Omega Protein Corporation