Global
Functional Food Ingredients Market: Snapshot
The
increasing demand for health benefitting foods that is needed beyond
basic nutrition to promote optimal health is currently the
cornerstone of the development of functional food ingredients market.
The growing awareness among a large population demographic regarding
the consumption of nutritive food rather than only satisfying taste
and appeal considerations is providing a strong basis for the growth
of players in the market. As a result, consumers are opting for
nutritive convenience foods and nutritionally fortified foods in
place of traditional convenience and junk foods. In particular, in
developed economies, the changing perception of food cabinet as a
medical cabinet is leading to an increasing number of consumers
stocking up on wholesome foods. Hence, functional foods are
increasingly becoming a commonality in the kitchens of health-savvy
consumers.
Increasing
product innovations complemented with the development of novel
chemicals to enhance the taste and appeal of functional food is
further giving an impetus to the functional food ingredients market.
Furthermore, the easy availability of a large variety of functional
foods is favoring the growth of this market.
However,
the market is challenged by stringent regulatory agencies that have a
lengthy approval process before food is available for commercial
sales. These mandates are based on the safety norms in place for
foods to be suitable for consumption for varied social demographics
and varied age groups. Accredited agencies such as the UN’s FAO and
FDA are constantly monitoring the use of colors and chemicals in
foods, especially for new markets such as the global
functional food ingredients market. As such, product
manufacturers are under pressure to obtain approvals prior to
manufacture and distribution, which adds up to the time taken for the
final product to be available for commercial sales.
In
terms of revenue, the global market for functional food ingredients
is projected to be worth US$32.4 bn by 2024 increasing from US$19.38
bn in 2015 at a CAGR of 6.0% between 2016 and 2024.
Rising
Disposable Incomes and Increasing Spending on Health Benefitting
Foods to Boost Functional Food Ingredients Market in Asia Pacific and
Latin America
North
America stood as the largest market for functional food in 2015
accounting for US$6.99 bn revenue of the overall market. The region
is displaying a robust demand for functional foods in comparison to
functional beverages due to their increasing availability in
restaurants and eating joints.
However,
the emerging economies of Asia Pacific and Latin America are
currently offering tremendous growth opportunities for players in the
functional food ingredients market. Countries such as China, India,
Brazil, and other nations that are in similar state of intense
economic growth have a large working class population with disposable
incomes and are spending heftily on healthy foods and nutritional
supplements. This is expected to translate into great opportunities
for manufacturers of functional food ingredients and also due to
relatively relaxed regulations in Latin America and Asia Pacific.
Demand
for Functional Foods to Remain High from Functional Beverages Segment
The
demand for functional foods is expected to outdo the demand for
functional beverages. Although beverages have been popular due to
ease of manufacturing and can be modified to myriad tastes,
functional foods are displaying a greater demand for health reasons.
Some
of the leading players operating in the global functional food
ingredients market are Associated British Foods PLC, Cargill
Incorporated, Archer Daniels Midland Company, BASF SE, DMH
Ingredients, Ajinomoto Co. Inc., Kerry Group PLC, Ingredion
Incorporated, E.l. Du Pont De Nemours and Company, Arla Foods, and
Koninklijke Dsm N.V.
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