Functional Ingredients Market Size, Share, and Trends 2025 to 2034

Functional Ingredients Market Size and Forecast 2025 to 2034

The global functional ingredients market size was estimated at USD 121.43 billion in 2024 and is anticipated to reach around USD 201.49 billion by 2034, expanding at a CAGR of 5.19% from 2025 to 2034. The global functional ingredients market growth is attributed to the increasing demand for functional food and beverage products and increasing consumer awareness about the health benefits of functional ingredients.

Functional Ingredients Market Key Takeaways

• North America dominated the global functional food ingredients market with the largest share of 35% in 2024.
• Asia Pacific is expected to expand at a double digit CAGR of 11.52% during the forecast period. 
• By products, the probiotics segment has held the highest market share in 2024.
• By products, the rice protein segment is expanding at a notable CAGR during the forecast period.
• By application, the food and beverages segment accounted for the highest market share in 2024.

How AI is Changing the Functional Ingredients

Artificial intelligence is revolutionizing various industries, and the functional ingredients industry is no exception. By optimizing multiple aspects of production, research, and development, AI is changing the functional ingredients industry. AI technologies can be preferred through massive amounts of data from several sources such as chemical libraries, genomic databases, and scientific literature. By analyzing their molecules structure, AI can predict the potential health effects of compounds. AI can control and monitor fermentation processes in real time and improve conditions to produce ingredients such as enzymes and probiotics. In addition, Artificial intelligence can recommend personalized formulations and analyze individual health data. Functional ingredients provide great potential for preventing various health diseases, such as blood glucose regulation by using artificial intelligence. A functional ingredient is predicted and produced from Pisum sativum (pea) protein by hydrolysis, using artificial intelligence. These advanced trends are expected to revolutionize the growth of the functional ingredients market.

U.S. Functional Ingredients Market Size and Growth 2025 to 2034

The U.S. functional ingredients market size was evaluated at USD 34 billion in 2024 and is predicted to be worth around USD 57.58 billion by 2034, rising at a CAGR of 5.40% from 2025 to 2034. 

On the basis of region, the market is classified into North America, Europe, Asia-Pacific and LAMEA. Asia Pacific region is estimated to grow at a considerable pace during the forecast period. Growing urbanization, spending capacity and rising population with more health consciousness are majorly boosting the growth of the functional ingredients market in developing countries of the region of Asia-Pacific including India and China. In addition, rising old age population and obese population has been significantly contributing for the growth of functional ingredients market in Asia Pacific region. As clinical nutrition and weight management are the surging applications of the functional food due to proportional and significant sources of proteins, vitamins and fatty acids which helps to improve the health of human body.

Furthermore, North America had the major market share of the functional ingredients market in the year 2024 with a revenue share of 35%. Increasing buying power, improved access to the digital technologies, higher penetration of internet, and increased adoption online sales channels are some of the major factors that has propelled the growth of the North America functional ingredients market. The high demand for the health supplements coupled with the busy and hectic schedules of the consumers is boosting the demand for the functional ingredients.

Functional Ingredients Market Growth Factors

• The increasing health concerns and growing health issues like obesity, diabetes, and digestive disorders are the major factors that augment the growth of the functional ingredients market.
• The growth in demand for functional food & beverages and rising health consciousness among consumers are the key driving factors for the growth of the functional ingredients market.
• The growing disposable income of consumers, changing preferences, and Western style eating habits augmented the sales for the food and beverage industry which in turn augmented the growth of the functional ingredient market.  
• As end-users consider food safety important, and nutritional benefits, and are looking for products that possess health-promoting and disease-preventing properties, further drive the market growth. 
• The launch of various new technologies such as nanoencapsulation, encapsulation, and bio-encapsulation propels technological innovations in the industry of functional food ingredients.
• The gradual advancements in the technology of liposomes are being utilized in the production of many ingredients such as functional food ingredients and probiotics, which offer various health benefits to its consumer.

Market Scope

Application Insights

By application, the food & beverages segment led the global market. The global rise in demand for food and beverages, especially in markets such as Asia Pacific, is leading to substantial growth in this segment.  Rising disposable income, high urbanization, and changing consumer preferences toward functional foods are driving demand in the market. 

By application, the personal care market is predicted to see significant growth over the forecast period. Consumers' preference for personal care products with natural ingredients and functional foods is driving demand and innovation in this sector. Growing access to e-commerce and online shopping has also increased the consumer base for functional food ingredients. 

Type Insights

Based on the type, the vitamins segment was the dominating segment. This is majorly credited to benefits associated with functional food rich in vitamin such as healthy skin, improved vision, improved blood circulation and better immune system of the body. Furthermore, some consumers require vitamin supplements as they have certain medical conditions which can lead to insufficiencies and functional food provides essential nutrients and vitamins in order to fulfill that particular deficiencies. Casual food or regular meal is not that much efficient enough to provide essential vitamin which led consumer to consume functional food as an additional food to have a healthy body.

On the other hand, the probiotics & prebiotics segment is estimated to be the most opportunistic segment during the forecast period. This is attributed owing to the growing popularity of probiotics among the population which is fuelled by the rising health awareness among the consumers

Nature Insights

The natural segment is the dominating functional ingredient segment in the year 2024 owing the abundant sources of ingredients. Nutritional and epidemiological studies have shown that plants are a rich source of nutraceutical ingredients by having disease-preventing and health-promoting properties. Various plant-based foods arebioactive compound rich in nature with physiological effects, like antioxidant, antimutagenic, anti-inflammatory or antibacterial activities. However, synthetic functional ingredient is the fastest growing segment in the market owing to the myriad demand of the ingredients and inadequate availability fosters huge opportunities to for the synthetic ingredients in the market.

Functional Ingredients Market Companies

• Danone
• Glanbia plc
• Hearthside food solutions llc
• Mars, incorporated
• Meiji co., ltd
• Nestlé s.a
• Raisio plc
• Royal frieslandcampinan.v
• Sanitarium health food company
• The kraftheinz company

Key Market Developments

• In February 2024, a leading global provider of specialty ingredient solutions to the pioneer of clean label ingredients and the food and beverage manufacturing industry, Ingredion Incorporated announced the NOVATION® Indulge 2940 starch. The aim behind this announcement was to meet the demands of health-conscious consumers looking for plant-based texture in their foods.
• In July 2024, Cargil launched new food ingredient solutions. This solution addresses prevailing consumer trends from plant-based formulation and offers improved functionality.

Segments Covered in the Report

By Type

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

By Nature

• Synthetic
• Natral

By Application

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

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa