About Functional Ingredients
A functional ingredient is a bioactive compound that has health-promoting, energy-boosting, and/or disease-preventing benefits. These can be used in the manufacture of functional food products. A number of functional ingredients can also be used for the preparation of nutraceuticals. These ingredients give foods and beverages flavor and function without spoiling ingredient statements. These compounds are recovered typically by separation, purification, and concentration techniques. Rising healthcare costs and the aging population are driving the demand for functional foods.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
CAGR | 6.8% |
Manufacturers continuously focus on research and development efforts to innovate and develop new functional ingredients with enhanced properties and benefits. This can involve investing in scientific expertise, technology, and partnerships to create unique and effective ingredients. Established and emerging Vendors should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
BASF (Germany), Dow Chemical Company (United States), Archer Daniels Midland (United States), Golden Grain Group (China), Kerry Inc. (Ireland), Ajinomoto Health & Nutrition North America, Inc. (United States), DSM (Netherlands), Roquette Freres (France), Ingredion Incorporated (United States) and Royal Cosun (Netherlands) are some of the key players that are part of study coverage. Additionally, the Vendors which are also part of the research coverage are Nexira (France), Symrise (Germany), Groupe Legris Industries (Belgium), Kanegrade Ltd. (United Kingdom) and Hayashibara Co., Ltd (Japan).
Segmentation Overview
AMA Research has segmented the market of Global Functional Ingredients market by Type (Protein, Probiotics and Prebiotics, Botanical Extracts, Minerals, Fatty Acids, Fibers and Others), Application (Food, Beverages, Pharmaceuticals, Animal Feed and Others) and Region.
On the basis of application, Food segment is dominating the market in the year 2023 where as Beverages segment stood as second largest market .On the basis of geography, the market of Functional Ingredients has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Source, the sub-segment i.e. Marine Sources will boost the Functional Ingredients market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Increasing Popularity of Food Extrusion Technology in the Agro-Food Processing Industry
Market Growth Drivers:
Rising Health Concerns and Adoption of Healthy Lifestyle among Consumers, Increasing Preferences of Consumers for Food Products without Chemicals and Artificial Ingredients and Consumers Are Increasingly Choosing Products with Added Functional Benefits
Challenges:
High Initial Cost Associated with the Installation of Functional Ingredients
Restraints:
High Cost of Functional Foods
Opportunities:
Rising Healthcare Costs Is Driving Demand for Functional Foods Thus Boosting Demand for Functional Ingredients and Increasing Consumption of Convenience Foods with High Nutrient Content
Market Leaders and their expansionary development strategies
In September 2018, Hayashibara Co., Ltd. announced that it has made a long-term agreement with Lonza Ltd. (Lonza), a leading supplier to the pharmaceutical, biotech, and specialty ingredients markets. The agreement will enhance a strategic partnership between the companies to further expand the market of capsules made from Pullulan.
In the United States, the Food and Drug Administration (FDA) regulates functional ingredients used in food, dietary supplements, and cosmetics. The Federal Trade Commission (FTC) also plays a role in regulating advertising and marketing claims related to functional ingredients.
Key Target Audience
Functional Ingredients Manufacturer, Functional Ingredients Traders/Distributors/Suppliers, Functional Ingredients Raw Material Supplier, Functional Ingredients End-Users, Functional Ingredients Importer/Exporter, Regulatory & Government Bodies, Research & Consulting Firms and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.