Growth Opportunities in the Functional Food Ingredients Market | Key Players are BASF SE, Archer Daniels Midland Company, DuPont, Arla Foods, Kerry Group, Ingredion Incorporated, and Tate & Lyle PLC

January 18 20:25 2022
Growth Opportunities in the Functional Food Ingredients Market | Key Players are BASF SE, Archer Daniels Midland Company, DuPont, Arla Foods, Kerry Group, Ingredion Incorporated, and Tate & Lyle PLC
The global functional food ingredients market size is estimated to be valued at USD 98.9 billion in 2021. It is projected to reach USD 137.1 billion by 2026, recording a CAGR of 6.8%

The global Functional Food Ingredients Market size is estimated to be valued at USD 98.9 billion in 2021. It is projected to reach USD 137.1 billion by 2026, recording a CAGR of 6.8% during the forecast period. The inclination toward nutritional and convenience food and the rise in demand for fortified food & beverage products is expected to drive the growth of the functional food ingredients market during the forecast period. However, factors such as adherence to the international quality standards & regulations and lack of awareness about functional ingredients such as prebiotics and probiotics in developing countries act as restraints to the growth of the market.

Functional Food Ingredients Market

Download PDF Brochure @

Drivers: Increase in consumption of nutritive convenience and fortified food

The global demand for fortified food is expanding at a robust pace. Functional food ingredients such as vitamins, minerals, antioxidants, hydrocolloids, prebiotics, amino acids, plant extracts, and carotenoids are the key ingredients of fortified food. The health-conscious population is rapidly expanding in emerging markets, which will drive the demand for the fortification of food. The nutritional consumption differences across regions contribute greatly to the apparent differences in the health of populations across the countries. Various factors such as increasing instances of chronic diseases and micronutrient deficiencies, growth of the middle class in emerging economies, new government fortification programs, growth of the world’s older population in regions such as Europe, and growing interest in health and wellness, owing to COVID-19, is expected to drive the sales of fortified foods, further driving the demand for functional food ingredients.

Plant source is projected to be the fastest-growing segment in the natural source segment from 2021 to 2026

Prebiotics, proteins, omega-3 fatty acids, minerals, fibers, phytochemicals, and plant extracts are the major types of functional food ingredients derived from plant sources. Plant-based proteins are a major source of protein for vegetarians and vegans. Their high nutritional profile, low carbon footprint, and low price are driving their consumption. Soy, corn, pulses, millet, sorghum, sunflower seeds, wheat, groundnuts, barley, and beans are some of the major plant-based sources that are rich in amino acid content. The growing inclination of consumers toward natural and plant-based products has been fueling the demand for plant-based food amino acids over the last few years. Phytochemicals are also derived from plant sources such as fruits & vegetables, nuts & seeds, and spices & herbs, among others.

The energy drinks segment in the beverages application is projected to grow at the highest CAGR during the forecast period

Functional food ingredients such as vitamins, minerals, and proteins are used in energy drinks. Many energy drinks have been developed by companies to provide specific medical or health benefits, such as promoting heart health, improving immunity, and helping to boost energy. With the broadening range of functional applications being sought by consumers, suppliers are looking to utilize new ingredients that better meet the functional goals of consumers. In the sports drink field, suppliers are expanding their choice of ingredients to enhance sports nutrition benefits. Drinks with creatines and branch-chained amino acids are growing in popularity.

Speak to Analyst @

North America is projected to account for the largest market size during the forecast period

The North American region dominates the market in 2020. This dominance is driven by the prevalence of chronic diseases due to hectic lifestyles and increasing awareness among consumers regarding the health benefits of functional foods. In addition, the region has the highest prevalence of obesity. The functional food ingredients industry focuses on investing more in research programs with an aim to introduce new ingredients to address the diversified demands from potential customers in the region. The key market players in the North American functional food ingredients industry include Cargill, Incorporated (US), Archer Daniels Midland Company (US), and DuPont (US). These industry players have their R&D centers where they develop a wide range of functional food ingredients for the food & beverage industry. Cargill invested USD 146 million to expand its protein production facility in Nashville, Tennessee, US.

Key players in this market include Cargill, Incorporated (US), BASF SE (Germany), Archer Daniels Midland Company (US), DuPont (US), Arla Foods (Denmark), Kerry Group (Ireland), Ajinomoto Co., Inc. (Japan), Koninklijke DSM N.V. (Netherlands), Ingredion Incorporated (US), and Tate & Lyle PLC (UK). Some of the other players include Chr. Hansen Holding A/S (Denmark), Kemin Industries, Inc. (US), BENEO (Germany), Royal Cosun (Netherland), Roquette Frères (France), Soylent (US), A&B Ingredients (US), Golden Grain Group Limited (China), Sugarlogix (US), and Stratum Nutrition (US).

About MarketsandMarkets™

MarketsandMarkets™ provides quantified B2B research on 30,000 high growth niche opportunities/threats which will impact 70% to 80% of worldwide companies’ revenues. Currently servicing 7500 customers worldwide including 80% of global Fortune 1000 companies as clients. Almost 75,000 top officers across eight industries worldwide approach MarketsandMarkets™ for their painpoints around revenues decisions.

Our 850 fulltime analyst and SMEs at MarketsandMarkets™ are tracking global high growth markets following the “Growth Engagement Model – GEM”. The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write “Attack, avoid and defend” strategies, identify sources of incremental revenues for both the company and its competitors. MarketsandMarkets™ now coming up with 1,500 MicroQuadrants (Positioning top players across leaders, emerging companies, innovators, strategic players) annually in high growth emerging segments. MarketsandMarkets™ is determined to benefit more than 10,000 companies this year for their revenue planning and help them take their innovations/disruptions early to the market by providing them research ahead of the curve.

MarketsandMarkets’s flagship competitive intelligence and market research platform, “Knowledgestore” connects over 200,000 markets and entire value chains for deeper understanding of the unmet insights along with market sizing and forecasts of niche markets.

Media Contact
Company Name: MarketsandMarkets
Contact Person: Mr. Aashish Mehra
Email: Send Email
Phone: 18886006441
Address:630 Dundee Road Suite 430
City: Northbrook
State: IL 60062
Country: United States