In 2022, the Asia Pacific functional food ingredients market is expected to be worth US$ 4.2 billion. By 2023, the valuation is expected to rise to US$ 4.34 billion, with a market value of US$ 8.5 billion expected by 2033, rising at a CAGR of 6.9% from 2023 to 2033.
Fresh fruit, packaged foods, dairy products, and functional beverages are just a few examples of functional food additives being used in fortified food and beverage products. The Asia Pacific market for functional food components is being driven by rising sales of healthy or functional drinks.
The market for functional food components in Asia Pacific is rising at an incredible rate, owing to the region’s growing number of health-conscious clientele. People are becoming more aware of the importance of preventative healthcare, which is driving up demand for functional foods. The increased emphasis on nutrition and welfare, as well as the availability of novel ingredient choices, are accelerating the region’s market expansion.
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Key Takeaways – Functional Food Ingredients Market Study
- Growing popularity of omega-3 as a supplement in the Asia Pacific region is expected to boost the growth of the functional food ingredients market, particularly in the spreadable fats and oils food products segment.
- ASEAN is ranked as the seventh-largest economy in APAC, and consumers in this region are more inclined towards intake of nutritional food products that offer various health benefits.
- Multinational companies manufacturing functional food ingredients are taking initiatives to tackle nutritional deficiencies. Companies such as Nestlé and Unilever have started food fortification to add both macro and micronutrients in their food products.
- Nestlé S.A. started fortification of its products such as cereals to target deficiencies in specific global markets. By 2016, the company fortified 200 billion servings of food and beverages, worldwide, while partnering with the HarvestPlus program (bio fortification) and agricultural research partners in India.
- Unilever PLC partnered with the World Food Program to launch ‘Together for Child Vitality’, an initiative to improve the nutrition and health of school-aged children. Unilever PLC fortifies products such as spreads, seasonings, porridges, and bouillons, which are affordable and easily accessible.
- Japan is perceived as a highly profitable market for manufacturers of functional food ingredients worldwide.
- In 2017-18, 8-10% of Japanese population was diabetic, which created significant opportunities for manufacturers of functional food ingredients to target this demographic by offering products to mitigate the impact of diabetes.
Manufacturers of functional food ingredients are mostly concerned with meeting regional or domestic needs. In India, omega-3, which is generally produced from meat, has been developed from vegetarian sources such as flaxseed oil and algae. Food and beverage firms are also prioritising research and development efforts in order to improve their product offers with multifunctional nutritional profiles.
Consumer preference for preventative healthcare continues to be a major driver of the APAC functional food ingredients market. According to a new research study by Future Market Insights (FMI), increased demand for natural functional food ingredients has been a noteworthy trend that will further alter prebiotic ingredient sales. This is going to be one of the most important factors impacting market growth in APAC.
Market Segments Covered in APAC Functional Food Ingredients Industry Analysis
By Ingredient Type:
- Prebiotic & Dietary Fibers
- Omega-3 Fatty Acids
- Dairy and Dairy-based Products
- Bakery and Confectionary
- Australia and New Zealand
- South Korea
- Rest of APAC