Functional Ingredients Market: By Type (Fiber, Fatty Acids, Botanical Extracts, Vitamins & Minerals, Probiotics & Prebiotics, Proteins & Amino Acids, and Others), By Source (Natural, and Synthetic), By Application (Animal Feed, Pharmaceuticals, Food & Beverages, and Cosmetics & Personal Care), By Functionality (Antioxidants, Health & Wellness, Sports Nutrition, Natural Colors & Flavors, and Others), and Geography

Functional Ingredients Market was valued at USD 75,389.2 million in 2023 and is poised to grow at a CAGR of 6.9% from 2024 to 2030. Consumers are shifting towards a more proactive approach to health, seeking to prevent illness rather than simply treat it. Functional ingredients, perceived as offering additional health benefits beyond basic nutrition, resonate with this mindset. The increasing prevalence of chronic diseases like diabetes, heart disease, and obesity is driving demand for functional ingredients that can help manage these conditions. Also, the global population is aging, leading to a heightened interest in functional ingredients promoting healthy aging, cognitive function, and joint health. In addition, consumers are increasingly demanding transparency in their food choices.

Functional ingredients derived from natural sources like plants, herbs, and minerals align with the clean-label movement, fostering trust and brand loyalty. Moreover, the desire for minimally processed, whole foods fuels the demand for functional ingredients that can be seamlessly integrated into existing food and beverage formulations without compromising on taste or texture. The rise of personalized nutrition creates new avenues for functional ingredients. These ingredients can be used to create customized products catering to individual health needs and goals. Also, consumers are increasingly seeking functional ingredients that address specific concerns, such as gut health, immune support, or improved athletic performance. However, functional ingredients can be more expensive than their non-functional counterparts, leading to higher product prices. Consumers might not perceive the added value of functional ingredients to justify the price premium.

Functional Ingredients Market Key Developments:

• In July 2021, Kerry Group, an Irish-based food company, acquired the company Biosearch Life just for an amount of $150 million deal. With this acquisition, the company can expand its portfolio of healthy ingredients such as omega 3 and probiotics. The healthy ingredient portfolio expansion will boost its functional foods and proactive health ingredients proficiencies. Though, Biosearch Life, is a company based in Spain, which is a biotechnology company that is into the manufacturing of healthy natural ingredients such as Probiotics, Omega-3, and Botanical Extracts.