According to Emergen Research, the global functional ingredients market size was USD 67.94 billion in 2020 and is expected to reach USD 109.22 billion in 2028 and register a robust revenue CAGR of 6.3% during the forecast period, 2021-2028. The high prevalence of lifestyle-associated diseases worldwide, changing dietary patterns, increasing demand for probiotic-based food and beverages, and high preference for functional food with plant-based ingredients are some key factors expected to drive global Functional Ingredients market growth.
Functional ingredients are a diverse group of compounds that can positively influence the health of the consumer above basic nutritional value. These functional ingredients possess disease-preventing, health-promoting, and energy-boosting properties and are thus used in the manufacturing of functional food products. Functional ingredients are obtained from various sources such as plants, animals, microorganisms, or inorganic raw materials.
Over recent years, there has been a sudden increase in the cases of chronic diseases and lifestyle-associated diseases such as diabetes, cancer, obesity, and cardiovascular diseases due to changing lifestyles, high consumption of unhealthy food and drinking habits, and lack of physical fitness. Factors such as the rapidly increasing global population, rising awareness about the importance of maintaining a healthy and active lifestyle, and growing preference for fortified food and beverages are some key factors expected to drive global market growth during the forecast period.
Other factors such as the high usage of functional ingredients in personal care products and the pharmaceutical industry, growing demand for nutraceuticals, and increasing investments by leading companies to develop more effective ingredients and products are expected to fuel global market growth going ahead. However, factors such as high costs of some functional ingredients, side effects associated with functional ingredients, availability of low-cost alternatives from domestic suppliers, and unawareness about the importance of functional ingredients in many developing countries can hamper market growth to a certain extent during the forecast period.
COVID-19 Impact Analysis
- Social distancing and restrictions severely disrupted businesses and operations
- Lockdowns caused disruptions in transportation and logistics
- Impacted manufacturing activities and mining operations globally
- took a toll on the economy of various countries
- Caused sudden and drastic downturn in economic activity
- Disrupted agriculture, fisheries, dairy, and other sectors
- Caused loss of employment and financial crisis
- Supply impacts were further compounded owing to reduced disposable income
- Emergence of variants continues to cause concerns and impact normal routines
Rice Proteins Segment To Register Rapid Revenue CAGR:
The rice protein segment is expected to register a rapid revenue CAGR between 2021 and 2028. Factors such as increasing consumer trends for a healthy and active lifestyle, high usage of rice proteins in various food products such as baked food or beverages, and high consumption of functional foods such as sports and energy-related dietary products, drinks, and energy bars are some key factors expected to drive revenue growth of the segment during the forecast period.
Food and Beverage Segment to Account for Significantly Larger Revenue Share:
The food and beverage segment is expected to account for the largest revenue share over the forecast period. Revenue growth of this segment can be attributed to factors such as a high consumer base, rising awareness about health benefits of better functional ingredients, availability of various food products, health drinks, and energy drinks that help to improve immunity and boost energy, and increasing investments in developing innovative and more effective products.
North America to Lead In Terms of Revenue Share:
North America is expected to dominate other regional markets during the forecast period attributable to increasing health concerns, rising prevalence of chronic diseases, growing awareness about the benefits of functional food, and the presence of leading functional food manufacturers across the region. In addition, ongoing research-based activities on exploring natural sources of bioactive ingredients, a rising consumer base, and growing demand for functional food products from sports and gym enthusiasts are other factors expected to fuel market growth in North America.
Major Companies in the Market Include:
- Ingredion Incorporated
- FMC Corporation
- Archer Daniels Midland Company
- Golden Grain Group Limited
- Cargill Inc.
- Roquette Freres SA
- Omega Protein Corporation
- BASF SE
- BENEO GmbH
- Zimitech, Inc.
For this report, Emergen Research has segmented the global functional ingredients based on product, source, application, and region:
Product Outlook (Revenue, USD Billion; 2018–2028)
- Modified Starch
- Conjugated Linoleic Acid
- Protein Hydrolysate
- Rice Protein
- Mung Bean Protein
- Omega-3 (EPA, DHA, ALA)
Source Outlook (Revenue, USD Billion; 2018–2028)
Application Outlook (Revenue, USD Billion; 2018–2028)
- Food & Beverages
- Animal Feed
- Personal Care
Regional Outlook (Revenue, USD Billion; 2018–2028)
- North America
- the U.S.
- the U.K.
- Rest of Europe
- the Asia Pacific
- South Korea
- Rest of APAC
- Latin America
- Rest of LATAM
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of MEA