Key Opportunities and Challenges in Functional Food Ingredients Market
by Mit K. SEOThe functional
food ingredients market is estimated to be valued at USD 68.60 billion
in 2018 and is projected to reach USD 94.21 billion by 2024, at a CAGR of 6.6%.
Functional food ingredients are those ingredients which have been demonstrated
to have specific physiological benefits, apart from the main nutritional
benefits that are derived from food & beverages. The usage of functional
food ingredients in the manufacturing of functional food & beverage
products is expected to provide nutritive health benefits, prevent/resist
chronic diseases, or act as energy boosters. The market is driven by the
increasing consumption of nutritive convenience food and fortified food and
growing health awareness among consumers leading to increased consumption of
healthier diets.
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Key Players:
·
DowDuPont (US)
·
ADM (US)
·
Arla Foods (Denmark)
·
BASF (Germany)
·
Cargill (US)
·
Chr. Hansen (Denmark)
·
DSM (Netherlands)
·
ABF (UK)
Cargill is one of
the market leaders for functional food ingredients. Although primarily focused
on the North American market, the company has expanded its protein production
capacities in Nashville, Tennessee, US. It supplies its products across the
globe, catering to the business needs of clients in 70 countries. The company
mainly focuses on achieving growth through expansions and new product launches
in domestic as well as overseas markets. For instance, in November 2017, it
invested USD 240 million in India, thereby enhancing the company’s market
access in the Indian functional food ingredients market.
Archer
Daniels Midland Company offers functional food ingredients through
its Wild Flavors and Specialty Ingredients segment. It offers a wide range of products
in the functional food ingredients market. The company majorly focuses on
growth strategies such as mergers and acquisitions to increase its market reach
in the global functional food ingredients market. For instance, in November
2017, the company expanded its product portfolio by introducing Nutriance, a
new range of innovative wheat protein concentrates, which finds applications in
sports nutrition and senior nutrition products.
The food
segment is projected to be larger & faster-growing during the forecast
period
The food segment is projected to be faster-growing, by
application, during the forecast period. The market for functional food is
increasing as consumers prefer balanced diets and food that not only takes care
of their appetite but also helps enhance their immunity. This, along with
product innovations in terms of flavors and variant offerings, presents
significant opportunities for the growth of applications in the functional food
ingredients market. Factors that are further fueling consumer interest in
functional foods are the rapid advances in science & technology, increase
in health care costs, aging, and growth in interest in attaining wellness
through diet.
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The natural
segment set to dominate the market by 2023
The functional food ingredients market, by source, is
projected to be dominated by the natural segment during the forecast period.
Functional food ingredients, in their natural form, are widely used due to
growing consumer demand for natural ingredients; the growing awareness about
the health benefits associated with ingredients sourced from natural sources is
driving the growth of the natural segment over the synthetic one.
South
America is projected to be the fastest-growing market during the forecast
period
The South American market is projected to grow at the highest
CAGR from 2018 to 2023. The region displays a variety of different demographic
and developmental trends; the common regional trends that are expected to help
drive market growth include rapid urbanization and increased life expectancy,
the high occurrence of obesity and malnutrition, rise in incidences of chronic
diseases, and mortality rates. All these factors have further propelled
consumers to move toward increased adoption of healthier products.
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Created on May 8th 2020 07:07. Viewed 331 times.