Functional Food Ingredients Market Investment Opportunities, Industry Share & Trend Analysis Report to 2026

Market Size – USD 68.45 billion in 2018, Market Growth – CAGR of 6.4%, Market Trends – Growth in need for food enrichment due to high processing levels of food products

According to the current analysis of Reports and Data, the global Functional Food Ingredients market was valued at USD 68.45 billion in 2018 and is expected to reach USD 113.01 billion by the year 2026, at a CAGR of 6.4%. Functional foods offer enhanced benefits beyond their fundamental nutritional value. They encompass an extensive range of products. Some products are generated around a ingredient, for example, foods containing probiotics, prebiotics, or plant stanols and sterols. Other foodstuffs or drinks can be fortified with a nutrient that would not usually be present to any great extent (for instance, folic acid fortified bread or breakfast cereals).

Functional foods and drinks provide vast benefits in health terms. A large number of adults use such kinds of foods and beverages products for a variety of fitness-related concerns, including high cholesterol, obesity, high blood pressure, and heart condition. Brands that incorporate ingredients that address those issues have a high likelihood of capturing consumers’ attention. Consumers forego some taste for nutritional value, but there’s still a high taste threshold that consumers don’t cross, no matter the benefits a product offers. Thus, maintaining the taste with nutritional benefits is a challenge to the market.

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The global Functional Food Ingredients market is remarkably fragmented with major players like DowDuPont (US), Archer Daniels Midland Company (US), Arla Foods (Denmark), BASF SE (Germany), Cargill (US), Chr. Hansen (Denmark), Amway, Kerry Group PLC., Nestle, Standard Functional Foods Group Inc. among others that collectively constitute a competitive market.

Further key findings from the report suggest

  • The phytochemical and plant extracts segment is expected to register a growth at a CAGR of 6.1% during the forecast period
  • Nucleotides, a component of non-protein nitrogen in human milk, may be important for normal immune function. Supplementation of infant formula with nucleotides seems to be beneficial in clinical trials, although further research is needed before routine nucleotide supplementation of infant formula can be considered. The success of commercially prepared infant formulas has stimulated the development of numerous formulations and several hundred varieties of proprietary infant formulas are now available throughout the world.
  • Omega-3 oils are essential fatty acids that offer a wide range of benefits, including cardiovascular, eye, and brain health. Long-chain omega-3 oils, especially EPA and DHA, are primarily used as nutritional and pharmaceutical products. They have a range of mechanisms of action, including direct membrane effects and anti-inflammatory benefits. Due to the full range of potential health benefits of EPA and DHA, in particular, there has been a lot of research effort aimed at adding these ingredients into food and beverage.
  • Regular intake of probiotics can positively influence a person’s nutrition. Their way of acting on the body is very complex, and so not all the benefits for the wellbeing are established, and further research in this field is required. Probiotics seem to influence digestive condition positively. It has been observed that probiotics can reduce the mean duration of diarrhea in patients with an infectious form of diarrhea. Probiotics may also help prevent antibiotic-associated diarrhea

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For the purpose of this report, Reports and Data has segmented the Functional Food Ingredients market on the basis of type, source, application and region:

Type Outlook (Revenue in Billion USD; 2016–2026)

  • Probiotics
  • Proteins & amino acids
  • Phytochemical & plant extracts
  • Prebiotics
  • Fibers & specialty carbohydrates
  • Omega-3 fatty acids
  • Carotenoids
  • Vitamins
  • Minerals

Source Outlook (Revenue in Billion USD; 2016–2026)

  • Natural
    • Animal
    • Microbial
    • Plant
  • Synthetic

Application Outlook (Revenue in Billion USD; 2016–2026)

  • Food
    • Dairy Products
    • Bakery Products
    • Confectionery Products
    • Meat and Meat Products 
    • Infant Food
  • Beverages
    • Energy Drinks
    • Juices
    • Health Drinks

Regional Outlook (Revenue in Billion USD; 2016–2026)

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • UK
    • Spain
    • Italy
    • Rest of the Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Rest of Asia-Pacific
  • Middle East & Africa
  • Latin America
    • Brazil

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Key Points Addressed in the Report:

  • A detailed analysis of the global Functional Food Ingredients market through assessment of key market aspects such as technology, product type, application, end-use, and overall industry dynamics.
  • Qualitative and quantitative analysis of the market estimation from 2021 to 2028 and CAGR calculation for the forecast period.
  • All-inclusive assessment of market dynamics with emphasis on drivers, restraints, opportunities, and limitations.
  • Extensive profiling of key companies operating in the market including company overview, financial standing, product offerings, product portfolio, recent product and technological advancement, and business expansion plans.

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