Functional Food Ingredients Market Size, Share - 2026

The global functional food ingredients market is valued at US$ 98.9 billion in 2021 and is projected to reach US$ 137.1 billion by 2026, exhibiting a CAGR of 6.8% over the forecast period. Prebiotics and probiotics are the emerging functional food ingredient segments in which researchers are focusing on developing different applications and benefits. Nutrigenomics or personalized nutrition is a specialized diet in which food scientists seek to treat chronic health conditions such as cardiovascular disease, obesity, Alzheimer’s disease, and diabetes using specific functional food ingredients. 

Drivers: Increase in consumption of nutritive convenience and fortified food 

The global demand for fortified food is expanding at a robust pace. Functional food ingredients such as vitamins, minerals, antioxidants, hydrocolloids, prebiotics, amino acids, plant extracts, and carotenoids are the key ingredients of fortified food. The health-conscious population is rapidly expanding in emerging markets, which will drive the demand for the fortification of food. The nutritional consumption differences across regions contribute greatly to the apparent differences in the health of populations across the countries. 

Opportunities: Adoption of new technologies in the functional food industry 

The introduction of new technologies such as encapsulation, nanoencapsulation, and bio-encapsulation drives technological innovations in the functional food ingredients market. Encapsulation technology helps in enhancing the taste of many food products. For instance, omega-3 fatty acids are associated with bad odors. The taste and fragrance of these ingredients are enhanced with the use of encapsulation technology. The recent advancements in liposome technology are being used in the manufacturing of several ingredients such as probiotics and other ingredients, offering numerous health benefits. Thus, this has increased technological innovations for niche applications such as gourmet food and infant. 

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Plant source is projected to be the fastest-growing segment in the natural source segment from 2021 to 2026 

Prebiotics, proteins, omega-3 fatty acids, minerals, fibers, phytochemicals, and plant extracts are the major types of ingredients derived from plant sources. Plant-based proteins are a major source of protein for vegetarians and vegans. Their high nutritional profile, low carbon footprint, and low price are driving their consumption. Soy, corn, pulses, millet, sorghum, sunflower seeds, wheat, groundnuts, barley, and beans are some of the major plant-based sources that are rich in amino acid content. The growing inclination of consumers toward natural and plant-based products has been fueling the demand for plant-based food amino acids over the last few years. Phytochemicals are also derived from plant sources such as fruits & vegetables, nuts & seeds, and spices & herbs, among others. 

The energy drinks segment in the beverages application is projected to grow at the highest CAGR in the functional food ingredients market during the forecast period 

Functional food ingredients such as vitamins, minerals, and proteins are used in energy drinks. Many energy drinks have been developed by companies to provide specific medical or health benefits, such as promoting heart health, improving immunity, and helping to boost energy. With the broadening range of functional applications being sought by consumers, suppliers are looking to utilize new ingredients that better meet the functional goals of consumers. In the sports drink field, suppliers are expanding their choice of ingredients to enhance sports nutrition benefits. Drinks with creatine and branch-chained amino acids are growing in popularity. 

Top Companies in Functional Food Ingredients Market 

Key players in this market include Cargill, Incorporated (US), BASF SE (Germany), Archer Daniels Midland Company (US), DuPont (US), Arla Foods (Denmark), Kerry Group (Ireland), Ajinomoto Co., Inc. (Japan), Koninklijke DSM N.V. (Netherlands), Ingredion Incorporated (US), and Tate & Lyle PLC (UK). Some of the other players include Chr. Hansen Holding A/S (Denmark), Kemin Industries, Inc. (US), BENEO (Germany), Royal Cosun (Netherland), Roquette Frères (France), Soylent (US), A&B Ingredients (US), Golden Grain Group Limited (China), Sugarlogix (US), and Stratum Nutrition (US).