Press release
Asia Pacific Functional Food Ingredients Market expected to account for US$ 5.04 Bn by the end of 2026
The Asia Pacific functional food ingredients market is anticipated to expand at a CAGR of 5.9% in terms of value during the forecast period 2016 to 2026 and is expected to account for US$ 5.04 Bn by the end of 2026, registering a 0.6X increase in terms of value during the forecast period.The Asia Pacific functional food ingredients market has been segmented on the basis of ingredient type into vitamins, minerals, prebiotic and dietary fibre, probiotics, carotenoids, protein, and omega 3 fatty acids; and on the basis of application into beverages, dairy and dairy based products, infant food, and bakery and confectionery. Among all ingredients in the Asia Pacific functional food market, probiotics are projected to be the fastest growing segment over the forecast period owing to the increasing number of manufacturing companies that incorporate probiotic bacteria especially in dairy based products such as yogurt. Out of the total Asia Pacific functional food ingredients, probiotics accounts for approximately 23.5% market share.
Key market drivers and trends
Rising demand for functional/fortified foods and an increasing consumer awareness of health and fitness is expected to fuel the demand for functional foods across the Asia Pacific region, which in turn will likely drive market growth over the forecast period. Further, rising consumption of processed food in developing economies such as India and China and a steadily increasing GDP is also expected to drive demand for functional foods across the region. A growing baby boomer population, changing lifestyle patterns, and increasing urbanisation is further likely to boost market growth in the Asia Pacific region.
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The most prominent trends witnessed among leading players in the Asia Pacific functional food ingredients market is expansion by increasing manufacturing capacity and setting up new branches within the Asia Pacific region in order to further strengthen market foothold. Leading ingredients providers operating in the Asia Pacific region continuously participate in various exhibitions in order to showcase their ingredient portfolio, build brand visibility, and enter new markets.
Region-wise market projections
The Asia Pacific functional food ingredients market was valued at US$ 2.71 Bn in 2015 and is estimated to reach US$ 2.85 Bn by the end of 2016, reflecting a Y-o-Y growth rate of 5.4%. The market is expected to be valued at US$ 5.04 Bn by the end of 2026, registering a CAGR of 6.1% over the forecast period. The Asia Pacific functional food ingredients market is estimated to represent an absolute dollar opportunity of US$ 147.0 Mn in 2016 over 2015 and is expected to represent an incremental dollar opportunity of US$ 2.19 Bn between 2016 and 2026. Japan is likely to dominate the Asia Pacific functional food ingredients market during the forecast period, accounting for a revenue share of 35.1% by 2026. The market in China is projected to register the second-highest CAGR of 6.3% in terms of value over the forecast period.
Key market players
Key players in the Asia Pacific functional food ingredients market include functional food ingredients suppliers and customers. Asia Pacific functional food ingredients suppliers focused in the report include Sciphar Natural Products Co. Ltd., Marathwada Chemical Industries Pvt. Ltd., NEW ASIA INGREDIENTS PTE LTD, FENCHEM BIOTEK LTD., Arjuna Natural Extracts Ltd., Shandong Yuwang Industrial Co., Ltd., Supreem Pharmaceuticals Mysore Pvt. Ltd., Bio Actives Japan Corporation, Global Specialty Ingredients (M) Sdn. Bhd., and Excellent Health Products Co. Ltd. Functional food ingredients customers profiled in the report include Nestlé S.A., PepsiCo Inc., ConAgra Foods Inc., Kellogg Company, Yakult Honsha Co. Ltd., Danone SA, Meiji Holdings Co. Ltd., The Coca-Cola Co., Tata Global Beverages Ltd., and General Mills, Inc.
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