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Functional Food Ingredients Market : Key Growth Factors and Industry Analysis 2017-2025

Functional Food Ingredients Market : Key Growth Factors

BASF SE, Cargill, Inc., and Associated British Foods PLC were the dominant names in the global functional food ingredients market for 2015. Their collective share of 52.8% speaks a lot about the consolidated nature of the global functional food ingredients market, especially due to the stronger presence of these players in developed economies. There also exist a large number of local players across all regions that have to compete with the key players.

This 213 page report gives readers a comprehensive overview of the Functional Food Ingredients Market. Browse through to unlock the hidden opportunities in this market @

As per a report published by Transparency Market Research, the global functional food ingredients market is in a state of consolidation, especially by larger and prominent players with local entities in terms of mergers, acquisitions, and aggressive marketing strategies. In terms of revenue, the global functional food ingredients market is expected to reach 20.35 bn by the end of 2016, and is expected to reach US$32.40 bn by 2024, after expanding at a CAGR of 6.0% from 2016 to 2024. In terms of volume, the global functional food ingredients market is expected to advance at a CAGR of 5.1% from 2016 to 2024.

High Nutritional Value of Functional Foods Attracts Large Volume of Consumers Globally

“The leading factor contributing to the growth of the global functional food ingredients market is the advantages that it holds over conventional foods and diets. Studies conducted in the recent past had already shown the effectiveness of functional foods in the intake of nutritive supplements. This was followed by a quickly-growing demographic of consumers from each economic class favoring functional foods amid a growing concern for personal health. Consumers are showing signs of slowly progressing towards healthier foods over convenience and junk foods. One change in perspective especially visible in developed economies is the perception of a food cabinet as a medicine cabinet, as more and more consumers are stocking up their food supplies at home on the basis of completing a wholesome diet. This is instrumental in bringing the growing variety of functional foods into the kitchens of common consumers,” states a TMR analyst.

An interesting factor augmenting the global functional food ingredients market is the incorporation of elements of functional nutrition into convenience foods. There is a growing number of convenience foods available in the market today that can help consumer save time taken to eat while adding a heavily marketed nutritive aspect rather than the conventional path of taste and appeal. Players from the food and beverages industry are also progressing fast into research and development efforts to improve the taste of functional foods and to incorporate them in a wider array of food and beverage types.

Regulations Continue to Hinder Functional Foods Production

Foods especially are heavily controlled in terms of approval and regional distribution by several regulatory bodies. These regulations are based on the safety of consumption of foods by several social demographics and age groups, along with the use of permissible flavorings and food colors. Organizations such as the FDA and the UN’s FAO are constantly monitoring the usage of chemicals in foods and being a new market, the global functional food ingredients market is under strict scrutiny. This will increase the pressure on manufacturers to obtain approvals before manufacture and distribution and adds to the time taken for a food product to reach shelves.

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“The emerging economies are currently of very high value to players from the global functional food ingredients market. China, Brazil, India, and other nations in the similar economic state of intense growth are revealing the perfect audience for healthy foods and nutritional supplements, within a growing working class that holds a growing amount of disposable income. This will continue to be a field of great opportunities for functional food ingredients manufacturers, also due to the relatively relaxed regulations in the Asia Pacific and Latin America,” adds the analyst.

About Us

Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.

TMR’s data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, Transparency Market Research employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business reports.


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