Increasing Consumer Awareness about Health and Wellness is Harnessing the Industry Growth for Multifunctional Food Ingredients | Future Market Insights, Inc.
Future Market Insights Global and Consulting Pvt. Ltd.
7 min read
Future Market Insights Global and Consulting Pvt. Ltd.
The multifunctional food ingredients market which was worth US$ 109.33 billion in 2024 is bound to reach USD 186.62 billion by 2034, at a CAGR of 5.5%.
NEWARK, Del, Feb. 12, 2024 (GLOBE NEWSWIRE) -- The multifunctional food ingredient market is anticipated to achieve a valuation of US$ 109.33 billion in 2024, with projections to increase to US$ 186.62 billion by 2034. The forecast period is expected to witness a development at a CAGR of 5.5%.
Consumers are demanding ingredients that provide basic nutrition and offer additional health benefits. In response to this demand, manufacturers are incorporating multifunctional ingredients into processed foods to enhance taste, texture, and shelf life while improving their nutritional profile. These ingredients, such as emulsifiers, stabilizers, antioxidants, and flavor enhancers, can be used across various food and beverage sectors, including bakery, dairy, beverages, and snacks. However, the popularity of clean labels and natural ingredients among consumers has posed a challenge to the market.
Manufacturers now use natural sources like plant extracts and fermentation products to create multifunctional food ingredients. Despite these ingredients' advantages, complex approval processes, cost concerns, and limited consumer awareness can hinder market growth. Manufacturers may also face difficulties achieving desired product characteristics or maintaining consistency in formulations, which can impact product quality and consumer satisfaction. One of the most dominant multifunctional ingredients in the market is humectants. They enhance texture, mouthfeel, and shelf life as bulking agents, stabilizers, and preservatives.
Consumers prefer humectants derived from natural sources due to the rising demand for clean-label products with fewer synthetic additives. The food and beverage processing industry remains the key end-user segment, driving the demand for multifunctional ingredients across various product categories and shaping the market's trajectory.
“The multifunctional food ingredients market is propelled by increasing consumer demand for clean-label and natural products, driven by heightened awareness of food ingredients. Manufacturers can seize this opportunity by innovating ingredients that provide clean-label solutions alongside enhanced functionality in food products. Additionally, the growing popularity of functional foods and nutraceuticals presents a significant opportunity for manufacturers. They can develop ingredients that address specific health concerns by incorporating bioactive compounds, vitamins, and minerals into food formulations, offering tangible benefits and differentiation in a competitive market,” – Says Nandini Roy Choudhury, Client Partner at Future Market Insights
Key Takeaways from the Market Study
The humectant additive type dominates the multifunctional food ingredient market with a 4.4% CAGR.
Food and beverage processing leads the multifunctional food ingredient industry, accounting for a 5.4% CAGR.
The multifunctional food ingredient industry in Canada is predicted to rise by a moderate 7.4% CAGR through 2034.
The multifunctional food ingredient industry in Peru is projected to inflate at a CAGR of 11.9% through 2034.
The multifunctional food ingredient industry in the Philippines is anticipated to develop at a CAGR of 10.1% through 2034.
The multifunctional food ingredient industry in Germany is estimated to rise at a whopping 6.2% CAGR through 2034.
The multifunctional food ingredient market in South Korea has the potential to increase at a 3.1% CAGR through 2034.
Companies now prioritize innovation, education, and collaboration to drive growth in the multifunctional food ingredient market. This involves allocating resources toward research and development to create innovative ingredients that cater to emerging consumer trends while also providing superior functionality and health benefits.
Companies also emphasize educating consumers about the advantages and applications of multifunctional ingredients to increase market acceptance and adoption. Additionally, they try to foster strategic partnerships and collaborations with other industry stakeholders, such as food manufacturers, research institutions, and regulatory bodies, to leverage shared expertise, resources, and market access and capitalize on new opportunities to drive market expansion.
Recent Developments:
McCormick launched a line of 15 Flavor Maker Seasonings on January 23, 2024, made with McCormick spices only, which can be used as toppings and ingredients.
GELITA introduced its PeptENDURE® collagen peptides for enhanced endurance performance and showcased its range of gelatin solutions for confectionery, gummies, and soft gels at Fi Europe on November 14, 2023.
Meala FoodTech secured US$ 1.9 million in pre-seed funding on February 8, 2023, to advance its multifunctional protein platform.
Nandini Roy Choudhury (Client Partner for Food & Beverages at Future Market Insights, Inc.) has 7+ years of management consulting experience. She advises industry leaders and explores off-the-eye opportunities and challenges. She puts processes and operating models in place to support their business objectives.
She has exceptional analytical skills and often brings thought leadership to the table.
Nandini has vast functional expertise in key niches, including but not limited to food ingredients, nutrition & health solutions, animal nutrition, and marine nutrients. She is also well-versed in the pharmaceuticals, biotechnology, retail, and chemical sectors, where she advises market participants to develop methodologies and strategies that deliver results.
Her core expertise lies in corporate growth strategy, sales and marketing effectiveness, acquisitions, post-merger integration, and cost reduction. Nandini has an MBA in Finance from MIT School of Business. She also holds a Bachelor’s Degree in Electrical Engineering from Nagpur University, India.
Nandini has authored several publications, and quoted in journals including Beverage Industry, Bloomberg, and Wine Industry Advisor.
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