The global functional food ingredients market is growing at a significant CAGR of around 6.5% during the forecast period (2019-2025). The market is driven by irregular diet patterns with a hectic work schedule, especially among working-class adults that result in a deficiency of nutritional levels. Other factors impacting the market growth positively include rising awareness campaign regarding preventive care and increasing consumer demand for functional food ingredients. Further, rising cases of undernourishment and malnutrition, especially in emerging economies spur the demand for functional food ingredients. Moreover, improper functioning of the digestive system results in a reduced level of vitamin and mineral content in human bodies that further increases the demand for vitamin supplements; thereby, surging the market growth.

The increasing cases of life style-oriented diseases such as CVD, CHD, Rheumatic Arthritis, and other lingering diseases are boosting the global functional food ingredients market. According to the American College of Cardiology, CVD accounted for around 800,000 mortalities in 2017 in the US alone. Among Americans, an average of one person dies from CVD, every 40 seconds. According to the American Heart Association, the number of US citizens with CVD is projected to reach 131.2 million (45% of the total US population) by 2035. Such a wide presence of cardiac patients in the country augments the demand for healthy foods, which in turn, fuels the growth of the global functional food ingredients market. In addition, the availability of alternative sources for obtaining Omega-3 fatty acids is offering growth to the global market. Krill oil can be considered as one of the alternatives of fish oil to derive omega-3 from them. In addition, apart from krill oil, other oils such as algal oil, hemp oil, flaxseed oil and chia seed oil can also be used as source to obtain omega-3 products.

Segmental Outlook  

The functional food ingredients market is classified on the basis of product type and source. Based on product type, the market is segmented into probiotics, prebiotics & dietary fiber, proteins & amino acids, phytochemical & plant extracts, omega-3 & 6 fatty acids, and others. Based on the source, the market is bifurcated into pulses natural source and synthetic source. Among these product types, the prebiotics & dietary fiber are significantly used as functional food ingredients. The prebiotics & dietary fibers increase the mineral absorption efficiency in the body, which in turn, increases the immunity and bone strength. 

Global Functional Food Ingredients Market Share by Product Type, 2018 (%)

Regional Outlook 

The global functional food ingredients market is classified on the basis of geography, which includes North America, Europe, Asia-Pacific, and Rest of the World. North America contributes a significant share in the global functional food ingredients market. The high incidence and prevalence rate of heart diseases due to a sedentary lifestyle, excessive consumption of alcohol, consumption of junk food, high intake of cholesterol and a huge number of diabetic and obese patients are majorly seen in the region. Owing to which, the North American are more focused on functional foods to gain nutrients to subside the negative effects of junk food. In the US, Alzheimer’s is one among a major cause for mortality. It is the top 10 cause of mortalities in the US that cannot be prevented, treated, or even slowed. However, the mortalities from other major causes have significantly decreased, whereas, the mortalities from Alzheimer’s disease have increased significantly in recent years. People suffering from dementia and Alzheimer's disease are found to have a deficiency of vitamin B12 and folic acid. This, in turn, is driving the market growth in the region.

Global Functional Food Ingredients Market Growth, by Region 2019-2025

Asia-Pacific is expected to propel with a considerable growth rate in the global market

Asia-Pacific is estimated to project a significant CAGR in the global market during the forecast period. The region is reporting a high rate of urbanization due to rapid growth in emerging economies of the region including India and China. According to the World Bank, in 2011, India and China accounted for 31.3% and 50.5% of the total population living in urban areas respectively, and the figures have increased to 33.6% and 57.9% respectively in 2017. This transformation is changing the lifestyle of people towards luxurious services and unhealthy eating habits, which as a result is augmenting the prevalence of chronic diseases, such as CVD and cancer. This, in turn, is augmenting the demand for functional food ingredients in the region. Moreover, the rapid expansion of food & beverages industry in the region will further support the market growth in forecast period. 

Market Players Outlook

The key players in the functional food ingredients market are contributing significantly by providing advanced technology-based products and through expanding their geographical presence across the globe. The key players operating in the global functional food ingredients market include BASF SE, Archer Daniels Midland Co., Cargill, Inc., DuPont de Nemours, Inc., Catalent, Inc., and Kerry Group PLC. These market players adopt various strategies such as product launch, partnerships, collaborations, merger, and acquisitions to sustain a strong position in the market. For instance, in August 2018 Catalent, Inc. completed the acquisition of Juniper Pharmaceuticals, Inc. The acquisition enables comoany to expandsits offerings in formulation development, clinical-scale oral dose manufacturing and bioavailability solutions. It enables to integrate global clinical and commercial supply network.

The Report Covers

• Market value data analysis of 2018 and forecast to 2025.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global functional food ingredients market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.