Functional Food Ingredients Market

Global Market Study on Functional Food Ingredients: Plant-based Ingredients Witnessing Rapidly Rising Demand

Functional Food Ingredients Market


Some foods considered to be functional are natural whole foods where new scientific information about their health qualities can be used to proclaim benefits. Many fruits, vegetables, grains, and dairy products contain several natural components that deliver benefits beyond basic nutrition. 

Considering the ongoing trend of vegan and plant-based food consumption, manufacturers in the functional food ingredients market space are focused on producing plant-based ingredients such as plant-extracts, fibers, omega n-3 fatty acids, vitamins, oils, etc. These factors are expected to fuel the expansion of the global functional food ingredients market size over the next ten years.

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  • DuPont de Nemours, Inc.
  • Archer Daniels Midland Company
  • Cargill, Incorporated
  • BASF SE 
  • Royal Ingredients Group
  • Kerry Group
  • Tate & Lyle PLC
  • Ingredion Incorporated
  • Tereos S.A
  • Meelunie B.V.
  • Roquette Frères S.A.
  • Euroduna Food Ingredients GmbH
  • Blattmann Schweiz AG
  • BENEO GmbH
  • A&B Ingredients

Functional Food Ingredients Market Trends

Rise of Protein in Functional Foods Benefitting Market: The role of proteins as physiologically active components in diets has been increasingly acknowledged in recent years. Consumers understand protein; whether associated with weight management, physical performance, or keeping an aging body lean and strong, protein has come to represent health, and people are increasingly building their diets around it.

Protein is becoming a priority for consumers around the world as it considered ‘anti-fat’ and ‘anti-sugar’, and a high source of instant energy. Thus, consumers are increasingly seeking protein ingredients in food & beverage products, which is expected to positively impact the growth of the global functional food ingredients market.

Increasing Focus on Credible Labeling and Certifications Flourishing Demand for Functional Food Ingredients: Manufacturers of food & beverages and nutraceuticals are focused on providing clean label, organic, natural, non-GMO, and other authenticated certifications to ensure the quality of their products. Increasing number of health-conscious consumers and rising spending power of consumers on food & beverage products are driving demand for organic, natural, and clean label products.

Thus, key players in the global functional food ingredients market are focused on providing certifications such as organic, natural, clean label, and non-GMO to attract more customers from the food & beverage and nutraceutical industry.

  • Key players such as Cargill, Ingredion Inc., DUPONT, and others are focused on providing organic, clean label, and non-GMO certifications to ensure the quality and authenticity of their functional food ingredients.

Changes in Lifestyle and Rise of Chronic Diseases Promoting Use of Functional Food Ingredients: Increased affluence and urbanization is also linked to a lifestyle where daily routine requires less physical activity, and there is greater access to foods with higher energy densities. Further, prevalence of chronic non-communicable diseases such as CVD, high blood pressure, and type-2 diabetes has increased, leading to concerns about escalating costs of healthcare and reduced quality of life. Modern lifestyles are also linked to various mental health problems such as depression, poor concentration, and loss of memory. Thus, for the prevention of such diseases, consumers are focused on the consumption of healthy and nutritionally-rich products, which is expected to create huge opportunities for the global functional food ingredients market.

functional food  ingredients market

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Regional Outlook of Functional Food Ingredients Market

North America will hold the highest functional food ingredients market share by value during the forecast period of 2020 to 2030. This is attributable to growing ingredient transparency among well-informed consumers, which has led to an increase in functional food ingredients in food products.

Moreover, Europe will also hold a significant market value share in the global functional food ingredients market over the forecast period. European consumers are comparatively more health-conscious than any other region in the world. Besides, consumers are highly aware of the food and food ingredients used in food products.

Functional foods are advertised as an added health benefit above the food product's traditional nutritional value. These factors are expected to fuel the growth of the functional food ingredients in Europe.

The market in South Asia and East Asia is expected to witness a high growth rate during the forecast period. Asia Pacific is one of the fastest-growing regions in the world, based on both, population and economy.

Growth of food & beverage and nutraceutical industries are fueling the demand for functional food ingredients in this region. Also, growing economies and rising spending power of consumers on food & beverage products are anticipated to fuel the growth of the global functional food ingredients market in the region.

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COVID-19 Impact on Functional Food Ingredients Market

As the global economy is facing a drastic and deleterious change due to the COVID-19 disease outbreak, the food & beverage industry is also witnessing unwanted consequences. Food ingredients business is major part of the food & beverage industry, which has witnessed a slowdown in product sales.

These food ingredients are acquired from various sources, such as functional food ingredients from plants and marine source, which require daily manufacturing activities. Since the slowdown of industrial work across the world due to COVID-19, the production of functional food ingredients has been affected.

Additionally, sourcing raw materials for production is also becoming difficult, as the pandemic has caused major supply chain disruptions in the food & beverage industry. Major end users of functional food ingredients are beverage manufacturers, who are also facing challenges due to pandemic.

However, as restrictions are eased, sales of food & beverage products will increase, which will positively impact the growth of the functional food ingredients market. Thus, the coronavirus is expected to create a high to moderate impact on the functional food ingredients market.

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Analysts’ Viewpoint

Functional food ingredients have increasing applications in various functional food as well as beverage preparations, including healthy beverages, soft drinks, and sports drinks. Infant food and bakery manufacturers are also propelling the demand for functional food ingredients, as consumer inclination toward health beneficial and nutritional products is rising.

Leading manufacturers in the functional food ingredients industry are strategically investing to increase their production capacities to meet the rising demand for functional food products across the globe. Manufacturers are investing in research & development to introduce new and innovative functional food ingredients to increase the value of their food products. However, high pricing associated with functional food ingredients is restricting the market from reaching its full potential.

Key Segments of Global Functional Food Ingredients Market

PMR’s report on the global functional food ingredients market offers information divided into three segments - type, end use, and region.


  • Vitamins
  • Minerals
  • Prebiotics & Dietary Fibers
  • Probiotics
  • Carotenoids
  • Proteins
  • Omega-3 Fatty Acids

End Use

  • Beverages
  • Dairy & Dairy-based Products
  • Infant Food
  • Bakery & Confectionery


  • North America
  • Latin America
  • Europe
  • South Asia
  • East Asia
  • Oceania
  • Middle East & Africa

Key Questions Answered in PMR’s Global Functional Food Ingredients Market

  • Which region will hold the highest market share in the global functional food ingredients market during the forecast period?
  • Which region is experiencing the highest growth (CAGR)?
  • Which factors are impacting the global functional food ingredients market?
  • What are the global trends impacting the functional food ingredients market?
  • What strategies must emerging players adopt to capture opportunities in various regions in the functional food ingredients market?
  • What is the market structure of the global functional food ingredients market?


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