Asia Pacific Functional Food Ingredients Market Size (2024-2030)

The Asia Pacific Functional Food Ingredients Market was valued at USD 20.79 billion and is projected to reach a market size of USD 29.25 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of  5%. 

Functional food ingredients are additional substances that are added to increase the nutrition of food. Sources including fresh food, marine life, microbes, and inorganic raw materials can provide these bioactive chemicals. This market has seen tremendous improvement over the years. In the past, this market saw good growth with the emergence of various products and consumer awareness. Presently, this market is witnessing substantial progress owing to the ongoing health and wellness trends. Shortly, with a growing focus on R&D activities and innovation, this market will see significant development. During the forecast period, experts have predicted a considerable expansion.

Key Market Insights:

In global comparison, most revenue was generated in China (US$4,820.00m in 2023) for the Vitamins and minerals market.

GlobalData’s Q2 2021 consumer survey showed that 77 percent of the respondents in the APAC region found immunity-boosting ingredients to be somewhat/very appealing, while 56 percent believe antioxidants to have an affirmative impact on their health.

Asia-Pacific Functional Food Ingredients Market Drivers:

Increasing health consciousness is contributing to the market success.

Over the last ten years, consumers have become more aware of the food they consume. Various fitness trends are emerging to lead a healthy lifestyle. There has been an increase in the number of gyms and other working places. A greater percentage of the population has been embracing this change. Gym trainers recommend the consumption of various vitamins, minerals, and other probiotics to have a good immune system. Moreover, there is an increase in the number of nutritionists and dieticians who have proper knowledge about dosage and nutrient requirements. This has increased the usage of these supplements as they help enhance immunity, promote gut health, manage chronic diseases, and reduce malnutrition. Furthermore, the COVID-19 pandemic highlighted the importance of physical and mental wellbeing causing an expansion for this market.

The rising number of chronic health conditions is enlarging the market.

There have been many surveys and estimates that suggest that countries like China and India would have ¾th of the population to be diabetic. Secondly, there is an increase in the number of patients being detected with cancer. Moreover, mental health conditions are rising. This includes depression, anxiety, ADHD, sleeping disorders, etc. All these diseases and disorders have been linked with changes in lifestyle, consumption of junk, stress, hectic schedules, and radiation from electronic devices. Furthermore, there is an increase in the number of old aged people. All these factors have caused an upsurge in the consumption of functional food ingredients to prevent these diseases and live a healthy life.

Functional Food Ingredients Market Restraints and Challenges:

Consumer awareness, associated costs, and quality checks are the main concerns that the market is facing.

Limited knowledge about the new emerging products can be a very big barrier for the market. Vitamins, minerals, and other omega-3 fatty acids have been around for a long time. Probiotics, prebiotics, antioxidants, carotenoids, flavonoids, botanicals, and other dietary fibers are new in the market. This can lead to stereotypical assumptions and jargon. Additionally, they may be taken in excess amounts causing ill health and other side effects. Secondly, developing and researching these products takes a lot of money. This can demotivate the smaller research firms and startups. Furthermore, ensuring proper taste and texture along with nutrition is very challenging. Care should be taken to avoid any cross-contamination from mixing ingredients or other allergies.

Functional Food Ingredients Market Opportunities:

Veganism is the practice of including plant-based diets. In Asian countries, vegan diets are gaining immense popularity. This provides the market with ample opportunities for the development of products that have no preservatives and other soy proteins. Secondly, functional snacks are being prioritized which have a better taste as well as a high nutritional profile. Thirdly, technological advancements are boosting the market. Through various technologies, taste, quality, smoothness, and texture are enhanced. Furthermore, research activities are being carried out for fermented food products as alternatives for functional food ingredients. They contain healthy bacteria which is known to promote gut health. Fermented foods have been known to have a rich history in the Asia Pacific region. Popular plant sources included kimchi (cabbage), and other soybeans like kicap, douche, and cheonggukjang. Furthermore, with more investments and stability in the sports field, products that enhance the athlete's performance are being undertaken.

ASIA PACIFIC FUNCTIONAL FOOD  INGREDIENTS MARKET REPORT COVERAGE:

Functional Food Ingredients Market Segmentation:

Functional Food Ingredients Market Segmentation: By Source:

• Natural
• Animal
• Microbial
• Plant
• Synthetic

Based on the source, the natural segment is the largest in the market. This is because of the presence of important compounds, antioxidants, and vitamins in different herbs, spices, crops, fruits, vegetables, and other nuts. Moreover, the demand for a sustainable lifestyle is augmenting the segment. During the forecast period, this will see notable growth. The plant is the fastest-growing category. Many omega-3 fatty acids, minerals, and other phytochemicals are present in the stem, leaves, flowers, and roots. Ayurveda has a significant prominence in Asian countries. There are many plants whose medicinal properties are yet to be discovered. Certain herbs and other shrubs help with diabetes. Moreover, the growing veganism is further helping with the development. The microbial segment is showing substantial growth as well. Numerous studies are being conducted to find new strains and get information about the species, genetic makeup, mechanism, and other uses in curing human ailments.  

Functional Food Ingredients Market Segmentation: By Type:

• Probiotics
• Proteins & amino acids
• Phytochemicals & plant extracts
• Prebiotics
• Vitamins
• Minerals
• Carotenoids
• Others

Based on type, probiotics are the largest segment in the market. This is estimated to hold a total share of around 47%. They are important because of the health benefits they offer. They help with digestion, prevent bad bacteria, promote gut health, and immunity, and maintain healthy growth of microorganisms. Additionally, consumer demand is fueling the growth. Moreover, increasing research activities to broaden human knowledge about different types of bacterial strains are helping the segment to flourish. Proteins & amino acids are one amongst the fastest growing. Rice protein in particular is exhibiting quick growth. Rice protein aids muscle strength, has essential amino acids, reduces body fat, and blood sugar, and is good for hair growth. Furthermore, it is used as a formula for infants to help with their body growth. 

Functional Food Ingredients Market Segmentation: By Application:

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

Based on application, Food & Beverages are the largest segment in the market. This is due to their extensive usage, consumer demand, rising number of culinary applications, increasing wineries, growing population, and nutritional profile. They hold a total share of around 45%. Pharmaceuticals are the fastest-growing segment owing to the increase in chronic illness cases, aging population, personalized and precision medicine, investments, research activities, and Governmental support. They hold a total share of around 24%.

Functional Food Ingredients Market Segmentation: Regional Analysis:

• China
• India
• Japan
• Rest of Asia Pacific

Based on region, China is the largest region in the market holding a rough share of 36%. This is due to the presence of a vast population, number of eateries, applications, R&D activities, economic strength, presence of key companies, and technological advancements. However, India is the fastest growing owing to improving lifestyle, rising income, urbanization, increasing number of diseases, R&D, Governmental funds, emerging startups, and economic development. This region holds a total share of approximately 21%.

COVID-19 Impact Analysis on the Asia Pacific Functional Food Ingredients Market:

To enhance immunity, people started to focus on living a healthy lifestyle by incorporating balanced and healthy diets. According to a review article which was published in October 2022, by Frontier Media up to 50% of those who died due to COVID-19 had metabolic dysfunctions. People started increasing their usage of dietary supplements and functional food ingredients. This led to increased R&D activities by universities and other institutions to find suitable formulations. There were quite a few launches of products that had vitamin C & vitamin A and other essential minerals. These boosted the immune system providing protection. Probiotics were in demand owing to their advantages in gut health. Moreover, people were becoming aware of mental health and its importance. This led to an upsurge in the selling of products which were known to reduce anxiety and support cognitive health. Furthermore, E-Commerce helped in the marketing since lockdowns, movement restrictions, and social isolation were enforced.

Latest Trends/ Developments:

Companies in this industry are driven to increase their market share using a variety of tactics, including alliances, investments, and acquisitions. Along with maintaining competitive pricing, businesses are paying much to advance the existing ingredients and find new ones. This has also led to greater enlargement.

Michigan State University stated that a recent trend was a growing interest in gut health. Consumers were increasingly using probiotics and prebiotics for a healthy gut microbiome. To support this goal, there are various protein bars and flours that aid the digestive system with prebiotic apple cider vinegar and fibrous organic chia seeds.

Key Players:

1. Fonterra Co-operative Group
2. Ajinomoto Co., Inc.
3. Cargill Inc.
4. DSM
5. Kerry Group
6. Ingredion
7. Tate & Lyle PLC
8. Glanbia PLC
9. China Mengniu Dairy Company Limited
10. Yakult Honsha Co., Ltd.

In June 2022, Pharmactive Biotech Products announced a new strategic partnership with Singapore-based Nutraconnect to bring nutraceutical ingredients to the Asia-Pacific marketplace excluding Australia and New Zealand. Pharmactive provided its botanical extract ingredients, while Nutraconnect functioned as a growth engine for the region, connecting Pharmactive with local and regional nutraceutical players seeking high-quality, pure ingredients.

In April 2021, Thailand’s largest tea producer, Ichitan, ventured into the functional beverages space with the launch of Green Lab, a terpene-infused beverage positioned as providing relaxation and stress relief.

In September 2020, Tera Food and Beverage Company Limited, based in Thailand, launched ‘QminC’, a functional RTD drink infused with curcumin—the bioactive ingredient in turmeric, 20 percent lemon juice, the antioxidant L-Glutathione, and vitamins B6 and B12. Positioned as a multifunctional antioxidant drink with liver detoxifying, heart-protective, and immunity-enhancing properties, QminC went on to become one of the blockbusters launched in Thailand in 2020.