Global Functional Ingredients Market by Product (Rice Protein, Probiotics), by Application (Food & Beverages, Pharmaceuticals) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global functional ingredients market was worth USD 64.13 trillion in 2019. It is projected to grow at 6.4% compound annual growth rate (CAGR), between 2020 and 2027. Market growth can be attributed to changing regulations in the food- and beverage markets, rising awareness and growing demand for clean-label products.

The industry's growth is expected to be boosted by rising health concerns and increasing health issues such as obesity, diabetes, and other digestive disorders. Increasing demand for functional ingredients has resulted from substantial producer investments and new products.

Probiotics are a key part of the U.S. industry. They have a wide range of probiotics that cater to specific demographics such as genders and seniors. Regional players have been able to use these niche markets to create their product portfolios and maximize their resources. The U.S. market will be driven by an increased demand for probiotic-based foods and beverages in the coming years.

Functional ingredients are ingredients that have health-promoting, disease-preventing, or energy-boosting benefits. Expect the elements to be extracted from a natural source to make the final product.

Customers in many regions are becoming more aware of their health and are requesting nutritional food and beverages. Consumers are increasingly turning to high-nutrition, convenience-packed foods and beverages. The demand is driven by rising incomes and an increasing number of urban residents.

The millennial generation is becoming more aware of the benefits of nutrition food products in their diets. Functional ingredients are being used by consumers around the world to manage their obesity. Because they are water-soluble, have high actual content and low viscosity, they are widely used in pharmaceutical applications as a coating material.

Product Insights

The market was dominated by and accounted for 52.2% of global revenue in 2019. The functional ingredient category is a key growth area for probiotic products. Strong research efforts are underway in order to improve dairy products where probiotic organisms such as Lactobacillus and Bifidobacterium can be integrated.

These probiotic-based products can adapt to the gut microbial composition. This may lead to improved gut health. The probiotics market is growing rapidly and offers many opportunities for key players who understand the needs of end consumers.

The fastest CAGR in terms of revenue is 8.9%. This is due to the fact that rice protein will be used in a variety of food applications such as baked goods and nutritional drinks. This is predicted to have a positive impact on the future segment growth. Over the forecast period, customers have been increasingly focusing on nutrition and a rise in demand for rice protein in many sports and energy-related dietary products.

Rice protein can be used in place of whey protein isolates and soy protein. It is made by separating proteins from carbohydrates in brown rice. This protein has a distinct flavor than its counterparts in the functional ingredient market. The rising demand for protein-based nutrition products is expected to increase due to consumer awareness about healthy lifestyles.

Application Insights

Food and beverages dominated the market, accounting for 41.9% of global volume in 2019. The rise in awareness and benefits of nutrition and health has prompted a shift in the global demand for functional ingredients.

Buyers are very positive about functional food that offers additional health and wellness benefits. The overall market growth has been aided by the increasing geriatric population, rising healthcare costs, changing lifestyles, medical discoveries, food innovation, and consumer expectations about higher prices. According to research, nine out of ten adults eat at least 55% of their daily vitamin and mineral intakes.

Asia Pacific is expected to be the driving force behind the demand for food and beverage ingredients due to factors like increasing globalization, changing lifestyles and increased spending power. The forecast period will see a rise in demand for bioactive ingredients due to increased awareness in many countries such as China, India and Indonesia.

Fortification of nutritional additives is a common practice among food and beverage manufacturers. The purpose of including these additives in food and beverages is to increase the nutritional content.

Regional Insights

North America was the dominant market, accounting for 30.1% of global volume in 2019. The increasing health concerns and rising health issues such as obesity, digestion disorders, diabetes and other health problems are important factors that will drive the demand for the product across countries like the U.S., Canada and Mexico.

Food industry has increased R&D to develop products that promote mental well-being and health. It outlines the context for a rapidly growing market in major countries like the U.S., Mexico, and other places, despite the uncertainty of the existing regulations. The changing regulations in food and the growing self-care movement will also contribute to the industry's growth. There is overwhelming scientific evidence that demonstrates the crucial link between diet and health.

The fastest growing market is expected to be in Asia Pacific over the forecast period. The region has a wide range of opportunities for growth due to strong government policies in agriculture trade to support functional food and attract market investment. Because agriculture is a significant contributor to their GDPs, countries like Japan, South Korea and China rely on it in some way.

Asia Pacific is home to one of the most important functional ingredient markets. This is due to its growing population and increasing disposable income. The region's functional food market is experiencing rapid growth due to rising consumption of processed foods and growing awareness about health and fitness.

Market Share Insights & Key Companies

Key developments in product innovation and application development have been key drivers of the market. These innovations and growth are expected to be key parameters to being competitive in the market. Key players frequently acquire and join joint ventures in an effort to increase their product portfolios, and to gain substantial revenue shares.

ADM and Royal DSM, as well as other raw material producers, are investing in new technologies and expansions. Major players in the industry are also embracing collaborations and agreements. These are some of the most prominent players in global functional ingredient market:

• Archer Daniels Midland Company

• Ingredion Incorporated

• Golden Grain Group Limited

• FMC Corporation

• Omega Protein Corporation

• NutriBiotic

• Cargill Incorporated

• Tate & Lyle plc

• Roquette Freres

Up Market Research published a new report titled “Functional Ingredients Market research report which is segmented by Product (Rice Protein, Probiotics), by Application (Food & Beverages, Pharmaceuticals), By Players/Companies Omega Protein Corporation, Archer Daniels Midland Company, Roquette Fr¨res, Tate & Lyle plc, Ingredion Incorporated, FMC Corporation, NutriBiotic, Golden Grain Group Limited, Cargill Incorporated”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Functional Ingredients Market Report Segments:

The market is segmented by Product (Rice Protein, Probiotics), by Application (Food & Beverages, Pharmaceuticals).

Functional Ingredients Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Functional Ingredients Market

Overview of the regional outlook of the Functional Ingredients Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Functional Ingredients Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Functional Ingredients Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Rice Protein

                2. Probiotics

                1. Food & Beverages

                2. Pharmaceuticals

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Functional Ingredients Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
• Channel & Customer Management
• Identifying Appropriate Advertising Appeals

Reasons to Purchase the Functional Ingredients Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.