The Asia Pacific functional food ingredients market was valued at US$ 4.2 billion in 2022. By 2023, the valuation is likely to increase to US$ 4.34 billion and is further anticipated to reach a market value of US$ 8.5 billion by 2033, growing at a CAGR of 6.9% from 2023 to 2033.
Functional food ingredients have special abilities to add extra benefits to any food product, in the form of disease prevention or health promotion and are intended to provide benefits in terms of physiological effects and mitigate the risk of chronic diseases in addition to basic nutritional functions. They resemble conventional foods and can be taken as part of a regular diet.
Food manufacturers in the Asia Pacific region are constantly developing food products that include functional ingredients such as omega-3s and probiotics to meet the growing consumer demand for food products with various health benefits. The expansion of manufacturing facilities by providers to further strengthen their market presence in the Asia Pacific functional food ingredients market is one of the upcoming trends observed in the region. The functional food ingredients market is estimated to account for 9.6% of the overall food ingredients market which is inferred to be valued at US$ 43.6 billion in the year 2023.
| Report Attribute | Details |
|---|---|
| Estimated Market Value (2022) | US$ 4.2 billion |
| Expected Market Value (2023) | US$ 4.34 billion |
| Projected Forecast Value (2033) | US$ 8.5 billion |
| Anticipated Growth Rate (2023 to 2033) | 6.9% CAGR |
The market for functional food ingredients is fragmented, and the major producers only possess minor market shares. This is a result of the extensive selection of functional food additives produced by various producers. But there are significant international companies in the market for functional food additives.
Several recent changes have occurred in this market.
The demand for functional food ingredients in the Asia Pacific region is expected to rise in the coming years as a result of several factors, including increasing rates of nutritional deficiencies and chronic illnesses, the government's new fortification programs, the emergence of middle-class in emerging economies, the aging of the global population, and growing interest in health and wellness.
Strict regulations hurt the expansion of the market for functional food additives despite these promising possibilities. Businesses must compete for health claims by undertaking several clinical research and obtaining official certification, which raises the cost. High investment thus presents a challenge for emerging market players with constrained financial resources.
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The demand for functional food ingredients in the Asia Pacific reached a valuation of US$ 3.71 billion in 2018, according to a report from Future Market Insights (FMI). From 2018 to 2022, sales witnessed significant growth in the Asia Pacific functional food ingredients Market, registering a CAGR of 2.6%.
Global consumption of food supplements has rapidly increased over the years due to increased awareness among consumers regarding leading a healthier lifestyle. Minerals, vitamins, hydrocolloids, prebiotics, antioxidants, plant extracts, carotenoids, and amino acids are among the functional food Ingredients found in fortified foods. In developing markets, the health-conscious diet system is expanding rapidly, fuelling demand for food fortification. Differences in nutritional consumption across regions play a significant role in the differences in population health across countries.
Numerous factors, including rising rates of micronutrient deficiencies and chronic diseases, new government fortification programs, the rise of the middle class in emerging economies, the world's aging population, and increased interest in health and wellness, are anticipated to boost sales of fortified foods in the coming years, thereby increasing Asia Pacific functional food ingredients market demand.
Consumer Focus on Fortified Foods and Microbiome Ingredients
The demand for microbiome components in customized food and beverage products, like probiotics, essential oils, prebiotics, hydrocolloids, as well as postbiotics, is being driven by consumers' growing health consciousness towards convenient, wholesome foods. This feature has prompted producers of food and beverages to look for functional food additives, which has fueled the market's expansion throughout the study period.
The need for nutritious convenience food and rising fortified food consumption, among other driving factors, are expected to cause the APAC market for functional food components to expand over the projected period. Regional growth is being supported by elements including healthcare spending, the use of preventive healthcare, and consumer knowledge of the health benefits of functional foods. The market potential stems from the rising number of health-conscious consumers who are health-conscious in emerging countries throughout the course of the projected period.
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An increase in Demand for Carotenoids Is Going to Drive the Market Growth
In 2022, the carotenoids segment took up 32.8% of the Asia Pacific market share. Carotenoids are naturally occurring pigments found in most plants that act as antioxidants and are found primarily in algae, plants, and photosynthetic bacteria; however, humans and animals must rely on food to obtain these compounds. The product has witnessed an increase in demand from the functional food market as it is extensively being used by manufacturers in the F&B industry.
These are widely used as natural, safe colorants in feed, food, and cosmetics. Being necessary for photosynthesis and plant growth, they are also the main source of vitamin A in the human diet. They lower the risk of a variety of chronic health problems, including heart disease, cancer, and macular degeneration. These aforementioned benefits of carotenoids are likely to create a lucrative market for the product in the forecast period.
Increased Application of Functional Food Ingredients in Beverages to Boost Product Sales
In 2022, the application of these functional food ingredients in the food and beverage sector acquired 27.2% of the Asia Pacific market share. Minerals, vitamins, and proteins are some of the functional food ingredients that are extensively used in the production of beverages specifically energy drinks. This is because multiple manufacturers in the beverage industry are developing drinks for special purposes such as health and medical benefits like improving immunity, heart health, boost energy to mention a few.
Suppliers are focusing on broadening their offerings in the sports beverage segment by introducing new ingredients that better meet the functional expectations of the consumers and enhance nutritional benefits. In the long run, these strategies adopted by manufacturers in the beverage industry are likely to positively fuel the sales of functional food ingredients.
Rising Cases of Chronic Diseases to Bolster Market Growth
In 2022, the China functional food ingredients market acquired 45.7% of the Asia Pacific market. China dominates the functional food ingredient market in the Asia Pacific region due to the ubiquity of chronic diseases as a result of the hectic lifestyle of the consumers in the country, in addition to increased awareness regarding the benefits of functional food ingredients.
The food consumption patterns in China have shifted significantly as living standards have improved, exposing more consumers to a broader range of consumer products, particularly functional ingredients products. The food industry's demand for emulsifiers has increased because of the popularity of convenience foods, making China the largest market in the Asia Pacific for functional food ingredients products.
The functional food ingredient industry in China is currently focusing on higher investments in research and development programs to introduce new ingredients to meet the diversified demand from consumers. These aforementioned factors are likely to positively impact the market in China and witness sales growth over the forecast period with a 7.4% CAGR.
Japan Functional Food Ingredients Market to Show Growth
In 2022, over 22% of the Asia Pacific market share was accounted by the functional food ingredients market in Japan. In recent years, Japanese manufacturers in the functional food ingredient market have been trying to make their products more nutritious, following the ongoing high-protein trend in the food and beverage industry.
Consumer awareness in the country regarding anti-aging, weight management, and other health issues by consuming naturally-sourced protein is enabling many producers to offer protein-fortified products with health benefits in the market. This trend has been an extensive driver for the growth of functional food ingredients in Japan with a 6.2% CAGR from 2023 to 2033.
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The key players in this market include:
The functional food ingredients market is fragmented, and the key manufacturers hold small shares in the market. This is due to the wide range of functional food ingredients manufactured by separate manufacturers. However, prominent players in the functional food ingredients market have a notable global presence.
Some of the key developments in the Asia Pacific functional food ingredients market are:
| Report Attribute | Details |
|---|---|
| Growth Rate | CAGR of 6.9% from 2023 to 2033 |
| Market Value in 2023 | US$ 4.34 billion |
| Market Value in 2033 | US$ 8.5 billion |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | US$ billion for value |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered |
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| Countries Covered |
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| Key Companies Profiled |
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| Customization & Pricing | Available upon Request |
The market is valued at US$ 4.3 billion in 2023.
Archer Daniels Midland Company and BASF SE are the key market players.
The market is forecast to register a CAGR of 6.9% through 2033.
From 2018 to 2022, the market registered a CAGR of 2.6%.
Increasing rates of micronutrient deficiencies are encouraging market growth.
1. Executive Summary 1.1. APAC Market Outlook 1.2. Demand-side Trends 1.3. Supply-side Trends 1.4. Technology Roadmap Analysis 1.5. Analysis and Recommendations 2. Market Overview 2.1. Market Coverage / Taxonomy 2.2. Market Definition / Scope / Limitations 3. Market Background 3.1. Market Dynamics 3.1.1. Drivers 3.1.2. Restraints 3.1.3. Opportunity 3.1.4. Trends 3.2. Scenario Forecast 3.2.1. Demand in Optimistic Scenario 3.2.2. Demand in Likely Scenario 3.2.3. Demand in Conservative Scenario 3.3. Opportunity Map Analysis 3.4. Product Life Cycle Analysis 3.5. Supply Chain Analysis 3.5.1. Supply Side Participants and their Roles 3.5.1.1. Producers 3.5.1.2. Mid-Level Participants (Traders/ Agents/ Brokers) 3.5.1.3. Wholesalers and Distributors 3.5.2. Value Added and Value Created at Node in the Supply Chain 3.5.3. List of Raw Material Suppliers 3.5.4. List of Existing and Potential Buyer’s 3.6. Investment Feasibility Matrix 3.7. Value Chain Analysis 3.7.1. Profit Margin Analysis 3.7.2. Wholesalers and Distributors 3.7.3. Retailers 3.8. PESTLE and Porter’s Analysis 3.9. Regulatory Landscape 3.9.1. By Key Countries 3.10. Country Parent Market Outlook 3.11. Production and Consumption Statistics 3.12. Import and Export Statistics 4. Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 4.1. Historical Market Size Value (US$ Million) & Volume (MT) Analysis, 2018 to 2022 4.2. Current and Future Market Size Value (US$ Million) & Volume (MT) Projections, 2023 to 2033 4.2.1. Y-o-Y Growth Trend Analysis 4.2.2. Absolute $ Opportunity Analysis 5. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Ingredient Type 5.1. Introduction / Key Findings 5.2. Historical Market Size Value (US$ Million) & Volume (MT) Analysis By Ingredient Type, 2018 to 2022 5.3. Current and Future Market Size Value (US$ Million) & Volume (MT) Analysis and Forecast By Ingredient Type, 2023 to 2033 5.3.1. Vitamins 5.3.2. Minerals 5.3.3. Prebiotic & Dietary Fibers 5.3.4. Probiotics 5.3.5. Carotenoids 5.3.6. Proteins 5.3.7. Omega-3 Fatty Acids 5.4. Y-o-Y Growth Trend Analysis By Ingredient Type, 2018 to 2022 5.5. Absolute $ Opportunity Analysis By Ingredient Type, 2023 to 2033 6. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Introduction / Key Findings 6.2. Historical Market Size Value (US$ Million) & Volume (MT) Analysis By Application, 2018 to 2022 6.3. Current and Future Market Size Value (US$ Million) & Volume (MT) Analysis and Forecast By Application, 2023 to 2033 6.3.1. Beverages 6.3.2. Dairy and Dairy-based Products 6.3.3. Bakery and Confectionary 6.4. Y-o-Y Growth Trend Analysis By Application, 2018 to 2022 6.5. Absolute $ Opportunity Analysis By Application, 2023 to 2033 7. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. Introduction 7.2. Historical Market Size Value (US$ Million) & Volume (MT) Analysis By Country, 2018 to 2022 7.3. Current Market Size Value (US$ Million) & Volume (MT) Analysis and Forecast By Country, 2023 to 2033 7.3.1. APAC 7.4. Market Attractiveness Analysis By Country 8. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 8.1. Historical Market Size Value (US$ Million) & Volume (MT) Trend Analysis By Market Taxonomy, 2018 to 2022 8.2. Market Size Value (US$ Million) & Volume (MT) Forecast By Market Taxonomy, 2023 to 2033 8.2.1. By Country 8.2.1.1. China 8.2.1.2. India 8.2.1.3. Japan 8.2.1.4. ASEAN 8.2.1.5. Australia and New Zealand 8.2.1.6. South Korea 8.2.1.7. Rest of Asia-Pacific 8.2.2. By Ingredient Type 8.2.3. By Application 8.3. Market Attractiveness Analysis 8.3.1. By Country 8.3.2. By Ingredient Type 8.3.3. By Application 8.4. Key Takeaways 9. Key Countries Market Analysis 9.1. China 9.1.1. Pricing Analysis 9.1.2. Market Share Analysis, 2022 9.1.2.1. By Ingredient Type 9.1.2.2. By Application 9.2. India 9.2.1. Pricing Analysis 9.2.2. Market Share Analysis, 2022 9.2.2.1. By Ingredient Type 9.2.2.2. By Application 9.3. Japan 9.3.1. Pricing Analysis 9.3.2. Market Share Analysis, 2022 9.3.2.1. By Ingredient Type 9.3.2.2. By Application 9.4. ASEAN 9.4.1. Pricing Analysis 9.4.2. Market Share Analysis, 2022 9.4.2.1. By Ingredient Type 9.4.2.2. By Application 9.5. Australia 9.5.1. Pricing Analysis 9.5.2. Market Share Analysis, 2022 9.5.2.1. By Ingredient Type 9.5.2.2. By Application 9.6. New Zealand 9.6.1. Pricing Analysis 9.6.2. Market Share Analysis, 2022 9.6.2.1. By Ingredient Type 9.6.2.2. By Application 9.7. South Korea 9.7.1. Pricing Analysis 9.7.2. Market Share Analysis, 2022 9.7.2.1. By Ingredient Type 9.7.2.2. By Application 10. Market Structure Analysis 10.1. Competition Dashboard 10.2. Competition Benchmarking 10.3. Market Share Analysis of Top Players 10.3.1. By Country 10.3.2. By Ingredient Type 10.3.3. By Application 11. Competition Analysis 11.1. Competition Deep Dive 11.1.1. Archer Daniels Midland Company 11.1.1.1. Overview 11.1.1.2. Product Portfolio 11.1.1.3. Profitability by Market Segments 11.1.1.4. Sales Footprint 11.1.1.5. Strategy Overview 11.1.1.5.1. Marketing Strategy 11.1.1.5.2. Product Strategy 11.1.1.5.3. Channel Strategy 11.1.2. BASF SE 11.1.2.1. Overview 11.1.2.2. Product Portfolio 11.1.2.3. Profitability by Market Segments 11.1.2.4. Sales Footprint 11.1.2.5. Strategy Overview 11.1.2.5.1. Marketing Strategy 11.1.2.5.2. Product Strategy 11.1.2.5.3. Channel Strategy 11.1.3. Cargill, Incorporated 11.1.3.1. Overview 11.1.3.2. Product Portfolio 11.1.3.3. Profitability by Market Segments 11.1.3.4. Sales Footprint 11.1.3.5. Strategy Overview 11.1.3.5.1. Marketing Strategy 11.1.3.5.2. Product Strategy 11.1.3.5.3. Channel Strategy 11.1.4. Arla Foods Ingredients Group P/S 11.1.4.1. Overview 11.1.4.2. Product Portfolio 11.1.4.3. Profitability by Market Segments 11.1.4.4. Sales Footprint 11.1.4.5. Strategy Overview 11.1.4.5.1. Marketing Strategy 11.1.4.5.2. Product Strategy 11.1.4.5.3. Channel Strategy 11.1.5. E. I. DuPont De Nemours and Company 11.1.5.1. Overview 11.1.5.2. Product Portfolio 11.1.5.3. Profitability by Market Segments 11.1.5.4. Sales Footprint 11.1.5.5. Strategy Overview 11.1.5.5.1. Marketing Strategy 11.1.5.5.2. Product Strategy 11.1.5.5.3. Channel Strategy 11.1.6. Kerry Group PLC 11.1.6.1. Overview 11.1.6.2. Product Portfolio 11.1.6.3. Profitability by Market Segments 11.1.6.4. Sales Footprint 11.1.6.5. Strategy Overview 11.1.6.5.1. Marketing Strategy 11.1.6.5.2. Product Strategy 11.1.6.5.3. Channel Strategy 11.1.7. Corbion N.V 11.1.7.1. Overview 11.1.7.2. Product Portfolio 11.1.7.3. Profitability by Market Segments 11.1.7.4. Sales Footprint 11.1.7.5. Strategy Overview 11.1.7.5.1. Marketing Strategy 11.1.7.5.2. Product Strategy 11.1.7.5.3. Channel Strategy 11.1.8. Tate & Lyle PLC 11.1.8.1. Overview 11.1.8.2. Product Portfolio 11.1.8.3. Profitability by Market Segments 11.1.8.4. Sales Footprint 11.1.8.5. Strategy Overview 11.1.8.5.1. Marketing Strategy 11.1.8.5.2. Product Strategy 11.1.8.5.3. Channel Strategy 11.1.9. AkzoNobel N.V. 11.1.9.1. Overview 11.1.9.2. Product Portfolio 11.1.9.3. Profitability by Market Segments 11.1.9.4. Sales Footprint 11.1.9.5. Strategy Overview 11.1.9.5.1. Marketing Strategy 11.1.9.5.2. Product Strategy 11.1.9.5.3. Channel Strategy 11.1.10. Jungbunzlauer Suisse AG 11.1.10.1. Overview 11.1.10.2. Product Portfolio 11.1.10.3. Profitability by Market Segments 11.1.10.4. Sales Footprint 11.1.10.5. Strategy Overview 11.1.10.5.1. Marketing Strategy 11.1.10.5.2. Product Strategy 11.1.10.5.3. Channel Strategy 11.1.11. Ingredion Inc. 11.1.11.1. Overview 11.1.11.2. Product Portfolio 11.1.11.3. Profitability by Market Segments 11.1.11.4. Sales Footprint 11.1.11.5. Strategy Overview 11.1.11.5.1. Marketing Strategy 11.1.11.5.2. Product Strategy 11.1.11.5.3. Channel Strategy 11.1.12. Koninklijke DSM N.V. 11.1.12.1. Overview 11.1.12.2. Product Portfolio 11.1.12.3. Profitability by Market Segments 11.1.12.4. Sales Footprint 11.1.12.5. Strategy Overview 11.1.12.5.1. Marketing Strategy 11.1.12.5.2. Product Strategy 11.1.12.5.3. Channel Strategy 11.1.13. APAC Specialty Ingredients (M) Sdn. Bhd. (GSI) 11.1.13.1. Overview 11.1.13.2. Product Portfolio 11.1.13.3. Profitability by Market Segments 11.1.13.4. Sales Footprint 11.1.13.5. Strategy Overview 11.1.13.5.1. Marketing Strategy 11.1.13.5.2. Product Strategy 11.1.13.5.3. Channel Strategy 11.1.14. Supreem Pharmaceuticals Mysore Pvt. Ltd. 11.1.14.1. Overview 11.1.14.2. Product Portfolio 11.1.14.3. Profitability by Market Segments 11.1.14.4. Sales Footprint 11.1.14.5. Strategy Overview 11.1.14.5.1. Marketing Strategy 11.1.14.5.2. Product Strategy 11.1.14.5.3. Channel Strategy 11.1.15. Bio Actives Japan Corporation 11.1.15.1. Overview 11.1.15.2. Product Portfolio 11.1.15.3. Profitability by Market Segments 11.1.15.4. Sales Footprint 11.1.15.5. Strategy Overview 11.1.15.5.1. Marketing Strategy 11.1.15.5.2. Product Strategy 11.1.15.5.3. Channel Strategy 11.1.16. FENCHEM BIOTEK LTD. 11.1.16.1. Overview 11.1.16.2. Product Portfolio 11.1.16.3. Profitability by Market Segments 11.1.16.4. Sales Footprint 11.1.16.5. Strategy Overview 11.1.16.5.1. Marketing Strategy 11.1.16.5.2. Product Strategy 11.1.16.5.3. Channel Strategy 12. Assumptions & Acronyms Used 13. Research Methodology
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Asia Pacific Functional Food Ingredients Market
