by Functional ingredients are extensively used in food and beverages, nutraceuticals, and dietary supplements due to their health-promoting properties. Functional ingredients provide various health benefits such as improved heart health, bone health, immune function, and weight management. It enhances the nutritional value of the products and adds an extra dimension of wellness. The growing consumer awareness about health and wellness is boosting the demand for functional food and beverages incorporated with functional ingredients.
The global Functional Ingredients Market is estimated to be valued at US$ 94.31 Mn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The surging demand for nutraceuticals has been propelling the Functional Ingredients Market. Functional ingredients are widely incorporated in nutraceuticals due to their antioxidant, antimicrobial, and prebiotic properties. Nutraceuticals are gaining considerable traction among consumers as preventive healthcare alternatives. The rapid growth of the global nutraceutical industry is directly influencing the Functional Ingredients Market growth. According to Nutraceuticals World, the global nutraceutical market was valued at US$ 459 Billion in 2021 and is estimated to reach US$ 722 Billion by 2028, growing at a CAGR of 6.5% during the forecast period.
SWOT Analysis
Strength: Functional ingredients like prebiotics, probiotics, and peptides that are clinically proven to provide targeted health benefits. These ingredients help in maintaining gut and immune health.
Weakness: High research and development costs associated with new functional ingredient development. Certification and approval processes for new ingredients are complex and time consuming.
Opportunity: Growing consumer preference for health, wellness, and nutraceutical products offers opportunities for functional ingredients. Rising chronic disease incidence rates also drive demand.
Threats: Stringent regulations regarding use of health and structure-function claims on products. Customers may switch to alternative ingredients if clinical evidence is not strong.
Key Takeaways
The Global Functional Ingredients Market Growth is expected to witness high over the forecast period of 2024 to 2031. The global Functional Ingredients Market is estimated to be valued at US$ 94.31 Mn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2024 to 2031.
Regional analysis: Asia Pacific region is expected to witness fastest growth rate over the forecast period driven by increasing demand in large economies like India and China. India and China together account for around 35% of global population and have growing middle-class with increasing incomes. This factors drive demand for health and wellness products containing functional ingredients in the region. North America and Europe currently dominate the global market owing to higher health awareness, R&D spending and established markets.
Key players operating in the Functional Ingredients market are Alkremes Plc., Teva Pharmaceutical Industries Ltd., Glenmark Pharmaceuticals, Titan Pharmaceuticals, Inc., Pfizer, Inc., GlaxoSmithKline plc., Johnson & Johnson, Perrigo Company plc., Cipla Limited, Hikma Pharmaceuticals Plc., Dr. Reddy€TMs Laboratories Limited, Indivior Inc., and Mylan N.V. These companies invest heavily in new product development and marketing to strengthen market presence. Partnerships and mergers are also common in this competitive landscape.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
