The functional food ingredients market size has grown strongly in recent years. It will grow from $120.27 billion in 2024 to $130.79 billion in 2025 at a compound annual growth rate (CAGR) of 8.7%. The growth in the historic period can be attributed to increasing health consciousness, rising incidence of lifestyle-related diseases, consumer demand for natural and clean label products, research and development in nutraceuticals, collaboration between food and pharmaceutical industries.
The functional food ingredients market size is expected to see rapid growth in the next few years. It will grow to $194.54 billion in 2029 at a compound annual growth rate (CAGR) of 10.4%. The growth in the forecast period can be attributed to personalized nutrition and customization, integration of functional ingredients in conventional foods, focus on mental and cognitive health, expansion of the senior population, e-commerce and direct-to-consumer trends. Major trends in the forecast period include advancements in food biotechnology, advancements in food science and technology, rising demand for plant-based ingredients, focus on gut health ingredients, emergence of adaptogens.
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What are the key drivers behind the rapid expansion of the functional food ingredients market?
The rise in demand for fortified food & beverage products is expected to contribute to the growth of the functional food ingredients market. Fortified foods are functional foods that lack natural nutrients; nutrients are added to them. These foods boost nutrition and provide health advantages. Fortified foods are functional foods without natural nutrients in them, nutrients are added to them, and these foods improve nutrition, add health benefits. Fortified foods & beverage products consumption is increasing due to growing health consciousness in consumers, increasing disease occurrences, increasing consumer’s disposable income. The medicinal properties of these foods in providing healing benefits apart from energy and essential nutrients are motivating consumers to spend more on healthy food products. For instance, in April 2022, according to a report shared by Common Thread Collective, a US-based e-commerce growth agency, in 2021, global food and beverage sales were $435.3 billion, and in 2022 it was $506 billion. It is expected to reach $857 billion by 2025. Therefore, the rise in demand for fortified food & beverage products will drive the functional food ingredients market growth.
What is the segmentation for the functional food ingredients market?
The functional food ingredients market covered in this report is segmented –
1) By Type: Probiotics And Prebiotics, Carotenoids, Dietary Fibers, Fatty Acids, Vitamins, Minerals, Others
2) By Source: Natural Synthetic
3) By Application: Beverages, Dairy Products, Infant Food, Bakery And Confectionery, Others
Subsegments:
1) By Probiotics And Prebiotics: Probiotic Strains, Inulin, Oligosaccharides, Other Probiotic And Prebiotic Ingredients
2) By Carotenoids: Beta-Carotene, Lutein, Zeaxanthin, Lycopene, Other Carotenoids
3) By Dietary Fibers: Soluble Fiber, Insoluble Fiber, Functional Fiber
4) By Fatty Acids: Omega-3 Fatty Acids, Omega-6 Fatty Acids, Medium-Chain Triglycerides (MCTs), Other Fatty Acids
5) By Vitamins: Water-Soluble Vitamins, Fat-Soluble Vitamins
6) By Minerals: Macrominerals, Trace Minerals
7) By Others: Plant Extracts, Amino Acids, Phytosterols, Other Functional Ingredients
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Who are the most influential companies in the functional food ingredients market?
Major companies operating in the functional food ingredients market include Cargill Incorporated, Nestle, Archer Daniels Midland Company, BASF SE, Arla Foods amba, Koninklijke DSM NV, Ajinomoto, Kerry Group, Ingredion Incorporated, Glanbia plc, DuPont Nutrition & Biosciences, FMC Corporation, Roquette Frères, Royal Cosun, Ashland, Tate & Lyle PLC, Corbion N.V., Brevel, Chr. Hansen Holding A/S, Kemin Industries Inc., Naturex, Beneo, The Every Company, Nuritas, Foodchem International Corporation, Global Specialty Ingredients (GSI), A&B Ingredients, Shiru Inc., Sophie’s Bionutrients Pte. Ltd., Clean Food Group, Paragon Pure, Canomiks
What are the most influential trends expected to drive the functional food ingredients market forward?
Major companies operating in the functional food ingredients market are focused on developing clean label functional food ingredients. Clean label functional food ingredients are naturally derived components that provide health benefits while being minimally processed and made from recognizable, straightforward ingredients that consumers can easily understand. For instance, in February 2024, Ingredion Incorporated , a US-based ingredient solutions provider that specializes in producing a variety of sweeteners, starches, and nutrition ingredients, introduced NOVATION® Indulge 2940, the first functional native corn starch that provides distinct gelling and film-forming properties while adhering to clean label standards. This innovative starch is especially ideal for dairy products and alternative cheese applications, improving texture and mouthfeel without sacrificing consumer demand for familiar ingredients. This development addresses the challenges of creating clean label products while also supporting sustainability initiatives by enhancing functionality in applications such as vegan pizza cheese and coated fried foods. Ultimately, it enables brands to offer both quality and alignment with health-conscious trends.
What are the major regional insights for the functional food ingredients market, and which region holds the top position?
The countries covered in the functional food ingredients market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
What Does The Functional Food Ingredients Market Report 2025 Offer?
The functional food ingredients market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
Functional food ingredients are bioactive compounds or ingredients used in manufacturing functional food products. The ingredients in functional foods provide health benefits, and some of them include supplements or other additives.
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