Multifunctional Food Ingredients Market - Forecast(2023 - 2028)

Multifunctional Food Ingredients Market size was valued as $15.73 billion in 2019 and is poised to grow at a CAGR of 7.21% during the forecast period 2020-2025. Multifunctional food ingredients are utilized to exchange gums, gluten, fats, and other such expensive or unhealthy ingredients. Additionally, these ingredients help in improving the product’s shelf life and aid in fulfilling the prevailing food safety norms. The demand for multifunctional ingredients is propelling with the rise in demand for natural ingredients and clean label products. The marketplace for multifunctional food ingredients has three segments, ingredient type, application and geography.

The report: “Multifunctional Food Ingredients Market Forecast (2020-2025)”, by Industry ARC, covers an in-depth analysis of the following segments of the Multifunctional Food Ingredients Market. 

By Type: Emulsions & flavors, Hydrocolloids, Fibers, Oat extracts, Yeast extracts, Bulking agents, Others

By Application: Bakery & confectionery products, Meat & poultry, Dessert & toppings, Dairy products, Processed food products, Others

By  Geography: North America, Asia-Pacific, Europe, Rest of World

The global multifunctional food ingredients market set to dominated by the hydrocolloids and bulking agents’ segments during the forecast period 2020-2025. Hydrocolloids are used to modulate the viscosity and texture of liquid products such as sauces. The increasing demand for sauces and other flavoring formulations is set to drive the demand for hydrocolloids in the coming years. Bulking agents are poised to be the fastest growing segment of the global multifunctional food ingredients market in the coming years. Multifunctional fibers made from fruits and vegetable peal and pulp helps to replace expensive ingredients such as eggs, oil and pectin. With increasing application of bulking agents, this segment is poised to show fastest growth in near future.

The application type of Multifunctional food ingredients market covers dairy product, bakery and confectionery products, meat and poultry, dessert and toppings, and processed food products. Multifunctional food ingredients ensure food safety and enhances shelf life, increases product yield, maintains taste, texture and appearance. Bakery & Confectionery is forecast to be the fastest-growing segment with a CAGR of 5.43% during the forecast period 2020-2025 owing to growing demand of confectionary items. Multifunctional food ingredients in confectionery products, helps to increase flavor intensity and taste enhancement and ensures product stability during shelf life. Multifunctional flaxseed ingredients act as gum replacer in cereal products such as tortillas, gluten-free products, pizza crusts, sheeted dough, batters and breads.

North America dominates the market with 41.67% of total Market owing to the adoption of advanced technologies in food manufacturing and increase in awareness among consumers about food safety. With increasing demands for processed food and ready-to-eat products, multifunctional food ingredients market is set to register healthy CAGR during forecast period 2020-2025. Asia-Pacific lacks in developed infrastructure and other facilities acts as a major hindrance in the market growth for multifunctional food ingredients owing to lack of availability of facilities. 

The drivers of the market are shift in consumers towards healthy foods, population expansion, improved cold chain logistics, and adoption of automation systems & products.  Players operating in the multifunctional food ingredients market are poised to leverage this opportunity during the forecast period 2020-2025. Health-conscious consumers have reduced the consumption of products that are high in sweeteners and carbs, food that has high in fat content. 

The use of new raw materials derived from marine sources is another trend that is set to grow during the forecast period 2020-2025; marine source like algae is used owing to desirable oil and fiber content. 

The industry is poised to experience vulnerability owing to climatic and environmental factors, resource scarcity and periodically with governing regulatory.

Other important challenges are Infrastructure, unavailability of raw materials owing to seasonal fluctuations, and lack of knowledge resulting in technological barriers in developing regions particularly, Asia-Pacific. It acts as a major hindrance in the market growth for multifunctional food ingredients. Furthermore, inadequate supply chain in developing economies is restraining the growth of this market.

Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Multifunctional Food Ingredients Market. Key companies of this market are Cargill Inc., E.I. Du Pont De Nemours and Company, Kerry Group PLC, Archer Daniels Midland Co., Royal DSM N.V., Ingredion Incorporated, Givaudan, Sensient Technologies Corporation, Tate & Lyle and CHR Hansen Holding A/S among others.