Functional Ingredients Market Size, Share and Regional Forecast 2034

Functional Ingredients Market Size, Share and Trends 

The global functional ingredients market size was valued at USD 121.46 billion in 2024 and is expected to grow steadily from USD 127.78 billion in 2025 to reach nearly USD 201.65 billion by 2034, with a CAGR of 5.20% during the forecast period from 2025 to 2034. The increased trend of cooking with function and flavor raises the importance of functional foods.

Key Highlights

• By region, North America dominated the market with the highest share 35% in 2024, due to supportive food research initiatives and agricultural programs by the U.S. government authorities. 
• By region, Asia Pacific is expected to grow at the fastest CAGR, due to the establishment of industrial manufacturing plants across the region. 
• By region, Europe is a notably growing area, driven by a broad portfolio of food and beverage products in the European markets. 
• By type, the vitamin segment dominated the market share in 2024, due to the popular health benefits of rich nutritional contents in vitamins. 
• By type, the probiotics and prebiotics segment is expected to grow at the fastest CAGR during the forecast period, driven by the increased need to balance B-group vitamins for strong bone health. 
• By nature, the natural segment dominated the market share in 2024, driven by the emerging trend of organic food and farming. 
• By nature, the synthetic segment is expected to grow at the fastest CAGR during the forecast period, attributed to several economic and environmental benefits of synthetic food production. 
• By application, the food and beverages segment dominated the market share in 2024, due to the strong position of the global markets in the food and beverage sector. 
• By application, the personal care segment is expected to grow at the fastest CAGR during the forecast period, driven by the high preference of healthy people and patients for personal care routines.

Industry Coverage

Market Overview

Growing Preference Towards the Heathy Food Products

The functional ingredients market introduces various natural compounds like adaptogens like ashwagandha that help with stress and antioxidants in berries that fight cell damage. The customers are looking for functional food that help immunity, meals that boost gut health, and ingredients that reduce stress or improve mood. The sourcing of these many ingredients from reliable and ethical suppliers and a clear mentioning of key ingredients with their benefits on the menu drive professionalism. 

• In February 2025, Arla Foods Ingredients announced the launch of a toolbox to help South American functional food manufacturers in the development of high-protein and dairy-based desserts. (Source: Nutraceutical business review)

Plant Protein and Sweetener Solutions of Cargill, the Global Consistent Performer in the Food and Beverage Market

(Source1: cargill)
(Source2: cargill)

Functional Ingredients Market Trends

• Functional Hydration: The products with immunity claims gained high popularity, which include food and beverages with protein, energy, prebiotics, and probiotics. The primary growth drivers of the functional ingredients market also include energy drinks and bottled water. It reflects a growing shift towards health-oriented and functional beverages. The various functional drinks offer several benefits and increase sales. 
• Metabolic Monitoring: Consumers prioritize weight management, heart health, digestive health, muscle strength, and endurance. People are increasingly looking for energy drinks that boost immunity and bone health. They also prefer products for metabolism, inflammation, and blood sugar control.

Market Opportunity

How Does the U.S. Food and Drug Administration (FDA) Drive Nutritional Goals?

The FDA makes efforts towards the best public health interventions to improve nutrition, reduce chronic illnesses, and prevent premature death. It also promotes nutritious eating patterns by educating people about healthier food choices. These efforts help to transform the food supply chain through healthier food supply. The FDA introduced claims like ‘healthy’ on food labels to help consumers identify healthy food products. Some of the products like low-fat yogurt, trail mix, olive oil, king salmon, etc. are qualified as healthy under the final rule of the FDA.

Market Challenges

What are the Concerns Associated with Dietary Intakes and Recommendations?

According to one of the reports published by the U.S. Food and Drug Administration (FDA) in January 2025, 75% of the U.S. population lives with dietary patterns which are low in fruits, vegetables, and dairy products. Moreover, 63% of people living in the U.S. exceed the limit for added sugars while 77% of people exceed saturated fat limit. The U.S. faces a major epidemic of diet-related chronic diseases such as type 2 diabetes, cardiovascular diseases, and obesity.

Regional Insights

How North America Dominated the Functional Ingredients Market in 2024? 

North America dominated the functional ingredients market in 2024. The presence of consistent global industrial performers like Cargill ensures expertise in capitalizing on trends, overcoming formulation challenges, and utilizing innovative new ingredients. Cargill provides food formulation master series to its customers and helps them with its multimedia library. North American companies are introducing a broad portfolio of non-GMO ingredients including starches, texturizers, fibers, sweeteners, etc. which feature the promising non-GMO claim of America on their labels. Some of these companies are driving sugar-reduction resource centers by addressing the global shift towards sugar-reduction solutions. They are utilizing skilled R&D experts to formulate a wide range of food and beverage products including functional ingredients to meet global consumer preferences.

• In December 2024, the U.S. Food and Drug Administration (FDA) announced a final rule to update the ‘Healthy’ claim that has enabled manufacturers to use it in food packages. (Source: FDA)

Agriculture and Food Research Programs by the U.S. Department of Agriculture (USDA)

• Agriculture and Food Research Initiative (AFRI): It is the leading competitive grants program in the U.S. for agricultural sciences. The National Institute of Food and Agriculture (NIFA) recognized this program for its research, education, and grants to encourage the economies of rural communities. It was awarded to raise food production, resolve any climate impacts, and many other necessary actions. (Source: USDA)
• The Food for Progress Program: It aims to support developing countries and build strong agricultural sectors. It has set two goals of increasing agricultural productivity and expanding the trade of agricultural products. (Source: USDA)

Asia Pacific is Expected to Grow at the Fastest CAGR in the Functional Ingredients Market During the Forecast Period. 

The leading Asian Pacific and global companies in the food and beverage sector are innovating excellent products such as fats, oils, hydrocolloids, proteins, lecithins, starch derivatives, sweeteners, etc. Furthermore, they are introducing cocoa and chocolate products, edible oil, food ingredients, and health-promoting ingredients. The Asian Pacific industries are leading with their expertise in animal nutrition, agriculture, beauty, bio Industrial, food service, and many more sectors. This region holds a strong position in import and export, trade, capital markets, risk management, and data asset solutions. The food and beverage manufacturers in the Asian Pacific region are utilizing the expertise of ingredients and formulations to deliver products of high-quality, taste, and texture.

How India Drives Food Processing Excellence by Embracing Values to Expand Markets? 

The Ministry of Food Processing Industries is encouraging investments and the development of infrastructure by implementing schemes. The Make in India Initiative drives food processing excellence and the food processing sector. There is an establishment of Mega Food Parks in India with necessary resources and processing facilities. The Investors' portal of the Indian Ministry provides information about policies, resources, incentives, and collaborations with Invest India. This enables regulatory frameworks, investor support, and partnerships. 

• In March 2025, Cargill announced the inauguration of its new corn milling plant in Madhya Pradesh, India to fulfill an increasing demand for safe and high-quality food solutions. (Source: cargill)

Europe is Seen to Grow at a Notable Rate in the Functional Ingredients Market in 2024. 

The companies that have a global presence are introducing several products and services in Europe. These products include alcohol, alternative proteins, food processing salts, texturizing systems, etc. Moreover, the other product portfolio in the European markets is related to bakery, culinary, beverages, chocolate confectionery, dairy, dairy alternatives, pet food, snacks, cereals, sugar confectionery, and specialized nutrition. The European markets offer pure-label-friendly solutions and plant-based solutions that offer simplicity and functionality to end users. Some of these pure-label-friendly solutions by companies like Cargill are Wavepure, Citripure, SimPure, and SweetPure. 

How is France Rapidly Growing in the Food and Drink Market?

France holds a good position in the markets for organic food and plant-based foods, which also creates good opportunities for suppliers. France is the leading importer of many natural ingredients which further used for the food additives. The greater demand for the natural food additives in France, which increases the annual turnover of French food and drink markets. 

• In March 2024, the French government announced a package of €90 million to boost organic farming and resolve organic farming-related economic challenges. (Source: iGrow News)

Segmental Insights

Type Insights

How Vitamin Segment Dominated the Functional Ingredients Market in 2024? 

The vitamin segment dominated the functional ingredients market in 2024. Vitamins are found in fruits and vegetables which make the immune system stronger, increase its effectiveness, and help to fight against infections and diseases. B-group vitamins help consumers to get good amounts of carbohydrates, protein, and fat by enabling the body to utilize essential nutrients. They also help the cells in the human body to make new DNA which increases their importance among health-conscious consumers. 

The Probiotics and Prebiotics Segment is Expected to Grow at the Fastest CAGR in the Functional Ingredients Market During the Predicted Timeframe. 

The consumption of yogurt and fermented foods is the best choice to add helpful probiotics to a diet, which raises the importance of these products in the market and healthcare. The intake of good bacteria in the gut prevents or limits the intake of sugar, processed foods, and saturated fat in diets. Probiotics and prebiotics help the body to maintain healthy bowel function and act effectively in case of inflammatory bowel disease.

Nature Insights

What Made Natural the Dominant Segment in the Functional Ingredients Market in 2024? 

The natural segment dominated the functional ingredients market in 2024. The foods with natural ingredients are rich in micro and macronutrients without causing any risk to consumers. They help to regulate consistency in daily routines by strengthening the immune system of health. They are low in sugar, improve heart health, high in fiber, and help to control blood sugar levels. They offer environmental sustainability, improve skin health, and reduce the risk of developing diseases. 

The Synthetic Segment is Expected to Grow at the Fastest CAGR in the Functional Ingredients Market During the Forecast Period. 

Synthetic ingredients offer environmental benefits by reducing greenhouse gas emissions through traditional animal agriculture as one of the significant contributors to the environment. Synthetic food production can meet the global need for food production by addressing food security challenges, which also benefits areas with no access to traditional agriculture. Synthetic food production delivers cost-effectiveness by requiring fewer resources and a controlled environment. 

Application Insights 

Why Did the Food and Beverages Segment Dominate the Functional Ingredients Market in 2024? 

The food and beverages segment dominated the functional ingredients market in 2024. Food and beverages are good on the basis of science-backed research by addressing the needs of consumers and educating people about their importance. Manufacturers are enabled to use proven ingredients in these products based on their effectiveness. They are popular among global consumers due to quality research, trust, and brand credibility. They are safe, clinically proven, and natural health solutions.

The Personal Care Segment is Expected to Grow at the Fastest CAGR in the Functional Ingredients Market During the Predicted Timeframe. 

Personal care covers a wide range of services, such as personal hygiene, dressing, day-to-day assistance, etc. by addressing individual needs. Personal care is very beneficial to people with learning disabilities, physical disabilities, and mental health challenges. It also benefits people with chronic conditions, complex care needs, and recovering from surgery. 

Recent Developments in the Functional Ingredients Market

Archer Daniels Midland Company

• Collaboration: In October 2024, Archer Daniels Midland Company announced a partnership with the food fortification initiative to fight against hunger for 1 billion people across the globe. (Source: ADM)

Ingredion Incorporated

• Launch: In February 2024, Ingredion Incorporated announced the expansion of its clean label texturizers named NOVATION® Indulge 2940 starch, which is the first functional native product having gelling and improved mouthfeel properties. (Source: Ingredion)

Functional Ingredients Market Leading Companies

• BASF
• Cargill
• Ingredion Incorporated
• Archer Daniels Midland Company
• Kerry Group
• Tate & Lyle PLC
• DuPont de Nemours
• DSM
• Arla Foods
• Associated British Foods
• Associated British Foods
• Chr. Hansen Holding A/S
• IFF
• Nuritas
• Ajinomoto
• Corbion
• FuXion Biotech
• Danone SA
• PepsiCo
• 1440 Foods
• BIOPHYTIS

Segments Covered in the Report

By Type

• Probiotics & Prebiotics 
• Proteins
• Botanical Extracts
• Vitamin 
• Minerals
• Fatty Acids
• Others

By Nature

• Synthetic 
• Natural 

By Application

• Food & Beverages 
• Personal Care 
• Pharmaceuticals
• Animal Feed
• Others

By Region

• North America
• Asia Pacific
• Europe
• Middle East and Africa
• Latin America