Growth of packaged food and beverage industry is expected to drive growth in the market. The growth in disposable income and change in food habits has led to a high requirement for packaged food products, particularly in North America and Europe. The demand for packaged product is mainly driven by increased and health and hygiene concerns. Technavio’s analysts have predicted that the functional food ingredients market will register a CAGR of close to 7% by 2022.
Market Overview
Increased demand for functional food ingredients from probiotics segment
The probiotics segment of the global functional food ingredients market is gaining traction as customers prefer a more balanced diet that can not only take care of their appetite but also offer nutritional benefits.
Functional foods and beverages with high sugar
Functional foods and beverages with high sugar content act as a major challenge for the growth of the functional food ingredients market. The reason being the excessive consumption of this food can lead to high incidences of sugar and obesity.
Competitive Landscape
The market appears to be fragmented and with the presence of several companies including BASF and Cargill the competitive environment is quite intense. Factors such as the growth of packaged food and beverage industry and the increased demand for functional food ingredients from probiotics segment, will provide considerable growth opportunities to functional food ingredients manufactures. BASF, Cargill, Chr. Hansen Holding, DowDuPont, DSM, and Naturex are some of the major companies covered in this report.