Press release
Functional Ingredients Market Size, Share, Trends, Demand, Growth and Competitive Outlook | Cargill, Incorporated (US) BASF SE (Germany) ADM (US)
Global Functional Ingredients Market Size, Status, and forecast for the 2025-2032. The research provides accurate economic, global, and country-level predictions and analyses. It provides a comprehensive perspective of the competitive market as well as an in-depth supply chain analysis to assist businesses in identifying major changes in industry practices. The market report also examines the current state of the Functional Ingredients Market industry, as well as predicted future growth, technological advancements, investment prospects, market economics, and financial data. Additionally, the report includes upstream and downstream analyses of key players, as well as global certainties and assurances. The report evaluates dynamic aspects such as forecast market information, Porter's Five Forces Analysis, sales estimates, wide product portfolio, market scenarios, and possibility studies.The global functional ingredients market size was valued at USD 73.2 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 6.7% from 2025 to 2032.
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Worldwide Functional Food Ingredients Market Dynamics
Market Drivers:
Busy schedules, rising health consciousness, and awareness about nutritional deficiencies drive consumers to seek out products that offer both convenience and health benefits. Nutritive convenience foods, such as pre-packaged salads, smoothies, and meal replacement bars, provide quick and easy solutions for individuals on the go, while fortified food products, including fortified cereals, milk, and beverages, address specific nutrient deficiencies and offer added health benefits.In response to this growing demand, various manufacturers have capitalized on the trend by launching a plethora of functional food and beverage products. These products are formulated with specific ingredients, such as vitamins, minerals, probiotics, and omega-3 fatty acids, to provide additional health benefits beyond basic nutrition. From energy-boosting snacks to immunity-boosting drinks, the functional food and beverage market has witnessed a surge in innovative product offerings catering to diverse consumer needs.
Market Restraints:
High production costs and the necessity for significant R&D investments pose primary constraints within the functional food ingredients market. Production costs soar due to factors such as raw material scarcity and the sourcing complexities of naturally derived ingredients. Extracting bioactive compounds from rare plants or marine organisms, for instance, amplifies expenses owing to cultivation challenges and environmental regulations.Furthermore, stringent quality and safety standards inflate costs as manufacturers must invest in extensive testing and compliance measures to ensure product consistency and regulatory adherence. development of new, more affordable functional ingredients, further constraining market growth.
Major Players in Functional Ingredients Markets are:
Cargill, Incorporated (US) BASF SE (Germany) ADM (US) International Flavors & Fragrances Inc. (US) Arla Foods amba (Denmark) Kerry Group plc (Ireland) Ajinomoto Co., Inc. (Japan) DSM (Netherlands) Ingredion (US) Tate & Lyle (UK)
Industry News:
In February 2024, Cargill, Incorporated (US) and ENOUGH (UK) expanded their partnership to innovate sustainable protein options using ENOUGH's fermented mycoprotein technology. Cargill, Incorporated's investment, and commercial agreement will boost ABUNDA mycoprotein production, known for its meat-like texture and sustainability. This partnership allows Cargill, Incorporated to tap into the growing demand for alternative protein sources, enhancing its position in the functional food ingredients market and leveraging its global footprint to scale up production efficiently.
In September 2023, BASF SE (Germany) unveiled Product Carbon Footprints (PCFs) for selected human nutrition ingredients including Vitamin AP 1,7 TOC and Vitamin E Acetate 98%. Certified methodology reveals at least 20% lower emissions compared to the global market average. This initiative, under ISO 14067:2018, aids BASF SE in offering a competitive advantage while supporting customer emission reduction goals. By showcasing superior PCFs for functional food ingredients, this initiative not only strengthens BASF's competitive edge but also enhances its reputation as a sustainable leader in the functional food ingredients market, fostering trust and loyalty among consumers and partners.
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Global Functional Ingredients Market Segmentation:
Functional Ingredients, Product Outlook
Maltodextrin
Probiotics
Polydextrose
Modified starch
Pectin
Omega-3 (EPA, DHA,ALA)
Omega-6
Conjugated linoleic acid
Rice protein
Protein hydrolysate
Mung bean protein
Functional Ingredients, Application Outlook
Food & beverages
Personal care
Pharmaceuticals
Animal feed
Others
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The following areas and countries are covered in the worldwide Functional Ingredients Market file:
North America (US, Canada, Mexico)
Europe (Germany, France, UK, Russia, Italy)
Asia Pacific (China, Japan, South Korea, India, Southeast Asia)
South America (Brazil, Argentina, Colombia, etc.)
Middle East and Africa (Saudi Arabia, UAE), Egypt, Nigeria, and South Korea)
The North America region dominated the market with the highest revenue share of 32.2% in 2024. In the North American functional ingredient industry, functional food and beverages are expected to hold a major share of the market due to the increasing demand for fortified food and beverages. The dietary supplements segment is also expected to witness a significant growth rate in the coming years due to the increasing demand for dietary supplements for health and wellness.
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