There is a large pool of people around the world who suffer from a number of disorders such as cardiovascular disease, obesity, and immune deficiency. Functional foods have emerged as something that can go a long way towards fulfilling the deficiencies. According to a recent business and commerce study by TMR, the opportunities in the global functional food ingredients market translated into a revenue of $19.38 billion in 2015, and projects the demand to multiply at notable CAGR of 6% during the forecast period of 2016 to 2024 to reach a worth of $32.40 billion by 2024.
A growing percentage of geriatrics in the world’s population is the primary driver of the global functional food ingredients market, according to TMR. People aged over 60 years invariably suffer from deficiency diseases and functional food ingredients may help them counter their chronic diseases. Growing healthcare awareness among the urban population and their increasing disposable income, growing demand for fortified food and beverage products, and research and development activities to proliferate the applicability are some of the other factors augmenting demand for functional food ingredients. On the other hand, regulatory framework to maintain food safety and vulnerability to seasonal changes are a few restraints curtailing market progress.
Ingredient-wise, the TMR report segments the functional food ingredients market into proteins and amino acids, vitamins, minerals, prebiotics and dietary fiber, probiotics, carotenoids, essential oils, omega-3 and 6 fatty acids, hydrocolloids, and soy protein. Currently, the probiotics segment provides for the maximum demand, gaining traction from increased consumption of dairy and baked products as well as dietary supplements. In terms of health benefits, the market has been bifurcated into bone health, nutrition, weight management, heart health, immunity, and gut health.
Backed by the U.S., North America emerged as the region with maximum demand in the global functional food ingredients market, serving a demand worth of $6.99 billion in 2015. Growing concerns of obesity, diabetes, and digestive disorders are driving demand. That being said, the emerging economies of India and China are vastly populated and disposable income is increasing among the urban population, which is expected to turn Asia-Pacific into a region of high opportunities for vendors of this market in the near future.
The analysts of the TMR report have detected to a moderately consolidated competitive landscape of the global functional food ingredients, with top three companies, viz. BASF SE, Cargill, Inc., and Associated British Foods PLC, reserving 52.8% of the total shares in 2015. While these companies are ahead of the curve via their impressive product portfolio and strong geographical presence, research and development of innovative products is expected to remain their primary strategy to counter the challenge coming from some of the other notable players such as Archer Daniels Midland Company, Golden Grain Group Limited, Ingredion Incorporated, FMC Corporation, NutriBiotic, Omega Protein Corporation, Roquette Frères, and Tate & Lyle plc. In the longer run, the companies will need to develop products that comply with government regulations and prove that their products are as beneficial as they are claimed to be.