Functional ingredients market size to exceed $210.58 billion by 2030

Precedence investigation

Precedence investigation

The functional ingredients market size is expected to exceed US$210.58 billion by 2030 from a value of US$106.25 billion in 2021 and to grow at a CAGR of 7.9% between 2022 and 2030.

Tokyo, March 29, 2022 (GLOBE NEWSWIRE) — The world functional ingredients market it is driven by several factors, such as the increasing penetration of the internet, the growing adoption of smartphones, the increasing penetration of online delivery platforms, and the growing demand for the conveniences associated with food delivery. Increasing disposable income, growing urban population, favorable government regulations, ease of doing business, and improving infrastructure that favors rapid deliveries are the main factors that have increased the growth of the global functional ingredients market.

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Growing preferences for online food delivery over restaurant dining have forced restaurants to go online. The growing number of cloud kitchens around the world due to the growing demand for the various international kitchens among the customers has fueled the growth of the market. The proliferation of digital technologies and increased awareness of various food delivery platforms among consumers has spurred the growth of the market.

Scope of the report


Market size by 2029

$194.8 billion


7.9% from 2022 to 2030

By type

  • Probiotics and Prebiotics

  • protein

  • Botanical Extracts

  • Vitamin

  • minerals

  • Fatty acids

  • Others

For nature

per application

  • Food and drinks

  • Personal care

  • pharmaceutical products

  • Animal feeding

  • Others

By region

Report Highlights

  • Based on type, the vitamins segment dominated the market, gaining a market share of around 23% in 2020. This is attributed to the rapid rise in awareness of the benefits of vitamins and the problems associated with their deficiency among consumers . Furthermore, the increasing adoption of vitamin E-rich functional foods, especially in developing regions, has significantly fueled the growth of this segment.

  • According to the source, the natural segment is estimated to be the most opportunistic segment during the forecast period. This is attributed to the increased profitability, ease of operations and the increasing use of plant-based ingredients as factors that favor the growth of natural functional ingredients in the market.

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regional snapshot

Asia Pacific gained a market share of over 32% and dominated the global functional ingredients market in 2020. The presence of around 60% of the world’s population in the region has presented lucrative growth opportunities for market players. In addition, increasing government investments in infrastructure development, urbanization, electrification, and IT and telecommunication infrastructure development have prominently contributed to the growth of the Asia Pacific functional ingredients market. Rising disposable income, increased popularity of functional ingredients among young people, improving internet access, and growing number of online sales platforms are some of the main factors driving the growth of the market. Furthermore, the increased adoption of online payment platforms and the various promotional offers and discounts provided by online payment applications such as Phonepe, Paytm, Amazon Pay and GooglePay have significantly fostered the growth of the functional ingredients market in this region. Rising employment levels and busy, hectic consumer schedules are driving the sale of functional foods and beverages due to the associated conveniences, leading to an increase in demand for functional ingredients. All these factors have made the Asia Pacific region also the fastest growing market for functional ingredients.

North America was the second largest market in 2020. This is attributed to increased adoption of smartphones and the internet, along with increased demand for convenient home delivery services across North America. Busy and hectic schedules of life coupled with rising disposable incomes of consumers have fueled the growth of the functional ingredients market in this region.

market dynamics


Increased consumption of nutritious convenience and functional foods

The global demand for functional foods is expanding at a rapid rate. Functional food ingredients such as minerals, amino acids, vitamins, antioxidants, prebiotics, plant extracts, hydrocolloids, and carotenoids are the fundamental ingredients of functional foods. The health-conscious population is rapidly expanding in a growing market, which will drive the demand for food fortification. In addition, differences in nutritional consumption between regions contribute greatly to the apparent differences in the health of populations between countries. Multiple factors, such as the growth of the middle class in emerging ranching, the addition of cases of usual conditions and micronutrient shortages, new government fortification programs, growing interest in health and friendliness, and population growth Global aging in regions similar to Europe, due to COVID -19, is anticipated to boost the functional foods market, further driving market demand for functional ingredients in the process.


Higher cost of functional food products due to the addition of healthier or naturally derived ingredients

The development and trade aspects of functional food ingredients are precious, complex and uncertain. The factors behind the success of product development are consumer demand, technological conditions, and legislative background, not supervisory. Substantial investment is needed for the R&D of a strain that will be used to produce new functional probiotic-like ingredients. Probiotic strains and products are developed and produced in accordance with transnational food regulations. In addition, highly specialized and castrated equipment and processes are needed for the birth and manufacture of other colorful functional constituents. As a result of the high cost of the product, the price of the final product also increases. Distribution and marketing further increase the price of the product. Although consumers are aware of the inferred health benefits of these valuable functional food ingredients, their high prices deter consumers from purchasing the product.


Renunciation of new technologies in the assiduity of functional foods

The preface of new technologies such as nanoencapsulation, encapsulation and bioencapsulation drives technological inventions in the functional ingredients industry. Encapsulation technology helps improve the flavor of numerous products. For example, omega-3 fatty acids are associated with bad odor. The flavor and aroma of these ingredients are enhanced with the use of encapsulation technology. Current advances in liposome technology are being used in the manufacture of various probiotic-like ingredients and other functional food ingredients, which offer numerous health benefits. Therefore, this has increased technological inventions for niche operations such as gourmet and children’s food.


Complications related to the integration and contamination of functional food products

Consumers’ knowledge of the health effects of certain ingredient products can disrupt the acceptance of specific functional foods. Functional ingredients that are common, such as fiber, minerals, and vitamins, are preferred over new and advanced products, such as modified foods with prebiotics, probiotics, carotenoids, flavonoids, and conjugated linolenic acid. Researchers have to work hard to overcome all the challenges related to the selection and process development of strains and affiliated products. The basic requirement of probiotics is that the products contain sufficient quantities of microorganisms until the expiration date.

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Some of the Prominent Players in the Global Functional Ingredients Market are:

  • danone

  • hearthside food solutions llc

  • Mars, Incorporated

  • Glanbia plc

  • Meiji co., ltd.

  • nestle sa

  • Sanitarium health food company

  • Raisio plc

  • royalfrieslandcampinan.v

  • the kraft company

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