Market Trends of Functional Food Ingredient Industry
Escalating Demand for Functional and Fortified Food
Globally, the demand for functional and fortified food products is growing at a rapid pace due to increasing consumer preference for food products that are added with essential nutrients such as amino acids, proteins, and vitamins to meet their nutrient requirements. According to the research study on Food and Health published by International Food Information Council Foundation (IFIC), stated that 47% of United States consumers prefer food with additional nutrients. Hence, the food-fortification industry has become a major player in functional food ingredients including vitamins, minerals, and other nutrients. Moreover, the increasing incidence of nutrient deficiency among the global population is also driving the demand for functional food products. For instance, China is emerging as a production hub of fortified food due to the thriving demand for functional food products. A majority of the population in the country is dealing with iron and zinc deficiency which had resulted in an increased case of anemia and neural tube defect. This has, in turn, accelerated the demand for functional food ingredients to fortify food products with iron, zinc, and folic acid. The gaining traction for fortified food products among global consumers is encouraging key players in the market to innovate functional food ingredients with additional nutrient features. Hence, the development of fortified food products is anticipated to drive market growth over the forecast period.
North America Holds the Largest Share
The healthcare expenditure pattern in North America is growing each day. Therefore, consumers in the country are adopting preventive healthcare measures such as eating nutritious food. This factor is further driving the overall sales of functional food in the country. Furthermore, in North America, the sales of breakfast cereals are expected to benefit from the acceleration of a broad range of trends affecting the eating habits of Americans. A permanent shift away from three square meals a day to snacking and consuming multiple smaller meals throughout the day, rapid growth in the number of Americans actively engaged in fitness and weight management programs, and the desire for consumers to seek out alternative foods for breakfast are some of the factors boosting the demand for functional breakfast cereals. The prevalence of chronic illnesses as a result of fast-paced lives and growing consumer knowledge of the health advantages of functional foods are driving this dominance. The functional food ingredients industry is investing more money into research programs to introduce new ingredients that will meet the diverse needs of potential customers in the region. Cargill, Incorporated (US), Archer Daniels Midland Company (US), and DuPont are the major companies in the North American functional food ingredients market region. These companies have research and development labs where they create a wide range of functional food additives for the food and beverage industries, thereby, propelling market growth.
