Functional Ingredients Market, By Product (Maltodextrin, Probiotics, Polydextrose, Modified Starch, Pectin , Omega-3 (EPA, DHA, ALA), Omega-6, Conjugated Linoleic Acid, Rice Protein , Protein Hydrolysate, Mung Bean Protein), By Application (Food & Beverages, Personal Care, Pharmaceuticals, Animal Feed, Other) , and By Geography (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa)

Published In : Jun 2023

Code : CMI5827

Pages :152

Formats :

Excel and PDF

Industry : Food and Beverages

Market Challenges And Opportunities

Global Functional Ingredients Market Drivers:

Growing demand for functional probiotic ingredients to propel market growth

The probiotics market continues to grow, and food companies are looking for new ways to incorporate these microorganisms into their products. For example, using functional probiotic ingredients such as lactic acid bacteria (LAB). LAB in fermented foods naturally enrich the gut with healthy microorganisms that promote immune system function, prevent intestinal problems and restrict growth of pathogenic microorganisms. Moreover, LAB also promote the growth of indigenous beneficial microorganisms in the gut.

Rising prevalence of chronic disease to uplift market growth

Increasing cases of chronic diseases, micronutrient deficiencies, growing demand for fortified foods owing to changing lifestyle and growing health awareness among consumers are some of the factors driving the market growth. Furthermore, the growing middle class in emerging economies and growth of the older population is again boosting the market for fortified foods and hence, the functional food ingredients.

Global Functional Ingredients Market Opportunities:

The global functional ingredient market is expected to witness potential opportunities in the near future owing to the increased awareness regarding the health benefits of functional food ingredients among the consumers, a rise in consumption of fortified foods to prevent micronutrient deficiencies, and presence of giant food companies actively creating and launching new products with functional ingredients. In addition to this, various initiatives undertaken by governments of the region to boost the economy and increase their food exports is driving demand for functional ingredients to boost immunity. These factors are further expected to present lucrative market opportunities.

The nutritional and functional food industry is a rapidly growing sector that provide opportunities to manufacturers for product differentiation. Increasingly consumers are seeking products that provide health benefits beyond basic nutrition, such as boosting mental alertness or promoting digestive health. This factor has fueled the development of a range of functional ingredients, many of which come from plants. The industry relies on scientific and clinical research to identify the beneficial effects of these compounds, which are then fortified into a wide variety of foods and beverages.

Global Functional Ingredients Market Restraints:

Stringent regulations related to safety and efficacy to hamper market growth

Stringent regulations related to safety and efficacy of functional ingredients are restraining the market growth. In order to avoid this issue, researchers studying the benefits of plant-based ingredients should unambiguously describe their source material and ensure that they are using multiple batches of the same material.

High cost to hinder market growth

One disadvantage of many functional foods is that they are comparatively more expensive than their traditional counterparts. This can be a deterrent for some consumers who may not have the financial means to purchase these more costly products.