Functional Foods Market Size, Share & Trends Analysis Report By Ingredient (Carotenoids, Prebiotics & Probiotics, Fatty Acids, Dietary Fibers), By Product, By Application, By Region, And Segment Forecasts, 2022 - 2030

Research Methodology

A three-pronged approach was followed for deducing the functional foods market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for functional foods market to gather the most reliable and current information possible.

• We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
• We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
• We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
• We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
• We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of functional foods market data depending on the type of information we’re trying to uncover in our research.

• Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

• Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

• Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

• Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

• Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

• Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

• This step also entails the finalization of the report scope and data representation pattern.

• Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Functional Foods Market Categorization:

The functional foods market was categorized into four segments, namely ingredient (Carotenoids, Dietary Fibers, Fatty Acids, Minerals, Prebiotics & Probiotics, Vitamins), product (Bakery & Cereals, Dairy Products, Meat, Fish & Eggs, Soy Products, Fats & Oils), application (Sports Nutrition, Weight Management, Immunity, Digestive Health, Clinical Nutrition, Cardio Health), and regions (North America, Europe, Asia Pacific, Central & South America, Middle East & Africa).

Segment Market Methodology:

The functional foods market was segmented into ingredient, product, application, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

• Demand estimation of each product across countries/regions summed up to from the total market.

• Variable analysis for demand forecast.

• Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

• Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

• Used extensively for new product forecasting or analyzing penetration levels.

• Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

• Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

• This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The functional foods market was analyzed at a regional level. The global was divided into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into seventeen countries, namely, the U.S.; Canada; Mexico; the UK.; Germany; France; Italy; Spain; China; Japan; India; Australia; South Korea; Brazil; Argentina; Saudi Arabia; South Africa.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Functional foods market companies & financials:

The functional foods market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

• Cargill, Incorporated, Established in 1865, Cargill, Incorporated has its headquarters in Minnesota, U.S. It is a privately held manufacturer of food & beverage ingredients that caters to diverse industries worldwide. The company's range of products is divided into segments such as food ingredients & bio-industrial, animal nutrition, protein & salt, agricultural supply chain, and metals & shipping. Its extensive product line encompasses agriculture, animal nutrition, food service, food & beverage, industrial, pharmaceutical, meat & poultry, transportation, risk management, beauty, bio-industrial, and carbon solutions. Cargill boasts a network of over 1,500 specialists from various fields, including research & development, intellectual property, and technical services. These experts are stationed at more than 200 locations worldwide to assess regional needs and provide tailored solutions. As of 2022, the company has a global workforce of 155,000 employees spread across approximately 70 countries. As of 2020, Cargill has deployed around 24,000 staff members to cater, food & beverage manufacturers, and retailers with food ingredients, food and non-food applications as well as foodservice companies.

• ADM, Established in 1902, Archer Daniels Midland Company (ADM) has its headquarters in Illinois, U.S. It specializes in processing agricultural products and operates more than 280 processing facilities worldwide. Besides fibrous products, ADM produces a variety of food ingredients such as vegetable oil, flour, protein meal, and corn sweeteners. The company also provides a range of services, encompassing farmer services, financial services, and logistics. Its operations are backed by over 200 companies and trade associations, including Advanced Biofuels Canada, the American Soybean Association, the U.S. Canola Association, and the National Associations of Manufacturers. ADM serves a wide array of industries, including food & beverage, animal nutrition, industrial, and fuel. The company's global operations cover all aspects of the food chain, from processing to storage. It is a publicly traded company listed on the New York Stock Exchange. As of December 2021, ADM had a presence in over 190 countries, supported by a workforce of 40,739 employees. The company markets its dietary fibers under the 'Fibersol' brand, which finds use in products like yogurts, frozen desserts, and candies.

• The Green Labs LLC, Established in 2009, The Green Labs LLC is a privately held company with its headquarters in New Jersey, U.S. The company specializes in the production of organic ingredients such as powders, oils, extracts, and herbs. It has manufacturing units located in several countries including the U.S., Brazil, China, India, Peru, and Ecuador. The company primarily operates under five product categories: oil powders, Brazilian powder & extracts, vegetable protein powders, dietary fibers, and organic vegetable powders. It provides a variety of services including handling of international logistics, third-party laboratory testing in the U.S. and South America, lab testing certified by GMP, project management services for dietary supplements in South America and the U.S., and warehousing services. As of 2019, the company employs a team of six individuals.

• Taiyo International, Established in 1946, Taiyo International is a privately held firm with its headquarters in Minneapolis, U.S. The firm specializes in the production of functional food ingredients, catering to the supplement and food & beverage sectors. The company operates through three business divisions: Agri-Food Division, Interface Solution Division, and Nutrition Division. A variety of the company’s products are derived from natural sources, such as matcha powder and suntheanine, both of which are extracted from green tea. Additionally, the company markets water-soluble dietary fibers under its Sunfiber brand. Taiyo International operates seven manufacturing facilities, with three in Japan and remaining in India and China.

• J. RETTENMAIER & SÖHNE GmbH + Co KG, Established in 1878, J. RETTENMAIER & SÖHNE GmbH + Co KG is a family-owned enterprise that has been passed down through five generations. The company's headquarters are located in Rosenberg, Germany, and it boasts 90 sales and production sites across the globe. The company's primary focus is on the processing, research, and development of organic, functional fibers derived from renewable, plant-based raw materials. The company's operations are divided into three business segments: Life Science, Fiber Solutions, and Consumer Products. The company's products find applications in a variety of areas, including filtration, chemistry, and asphalt production. The diverse array of fibers produced by the company are utilized in several end-use industries such as automotive, construction, pharmaceutical, and food & beverage. The company operates production facilities in Asia, Europe, and the Americas. It has earned various quality management certifications, including the Eco-Certificate by IMO Institute für Marktökologie GmbH and PEFC by Agrar- und Lebensmittel Kontrollorganisation GmbH. As of 2020, the company employed over 3,500 individuals in different nation across the globe.

• Emsland Group, Established in 1928, Emsland Group is a company based in Emlichheim, Germany. The company provides product solutions in the areas of food innovation, retail & food service, specialties, and animal food & feed. Its offerings are catered to various industries including dairy, confectionery, and baked goods. The company's portfolio includes a variety of natural raw materials such as pea fiber, potato fiber, pea starch, and pea protein. Under its Emfibre brand, the company provides a broad selection of insoluble plant-based fibers. Emsland Group has a footprint in seven locations, each possessing a distinct core competency and well-distributed capacity. It operates production plants in Emlichheim, Golßen, Kyritz, Wietzendorf, Cloppenburg, Wittingen, and Hagenow. The company employed 20,400 individuals in these sevem location as of October 2020.

• Batory Foods, Established in 1979, Batory Foods is a company based in Illinois, U.S., primarily involved in the food manufacturing sector. The company provides a diverse range of product categories such as dairy ingredients, fibers, fine ingredients, and non-GMO ingredients. Although the company offers a broad spectrum of product categories, it is particularly renowned for its sweeteners, including organic and specialty sweeteners. Batory Foods serves a variety of markets including bakery, dairy, beverages, meat, and pet food, among others. The company distributes its products across the U.S., specializing in just-in-time deliveries. Batory Foods operates 21 distribution centers throughout the U.S., with locations in cities like Chicago, IL, and Los Angeles, CA. The company has developed a nationwide network of distribution centers and warehouses, designed through integrated logistics principles to expedite deliveries. As of December 2022, the company had a workforce of 336 employees.

• Lonza, Established in 1897, Lonza is a publicly traded company on the SIX Swiss Exchange, with its corporate headquarters in Basel, Switzerland. The company has a global footprint with operations in various countries including the U.S., Spain, the U.K., South Africa, Argentina, and Hungary, to name a few. Lonza's business is divided into four primary segments: small molecules, cell & gene, capsules & health ingredients, and biologics. The acquisition of Capsugel in 2017 marked a significant milestone in Lonza's strategic journey, positioning it as a leading, value-added, and integrated solutions provider in the healthcare sector. Capsugel is a worldwide provider of consumer healthcare products, nutritional supplements, and various dosage forms for medicines, including nasal, oral, and others. Lonza serves a diverse range of end-use industries such as pharma & biotech, water treatment, agro ingredients, coatings & composites, and bioresearch. The company prides itself on its superior regulatory expertise, advanced manufacturing systems, deep market understanding, quality control systems, comprehensive technical-customer support, and robust R&D capabilities. It boasts a production capacity of 2,500 metric tons of bulk ingredients annually. As of 2021, Lonza had facilities in over 60 countries and employed over 16,218 permanent staff members to deliver its services.

• BENEO, A division of the Südzucker Group, BENEO was established in 2007 and is based in Mannheim, Germany. The company specializes in the manufacture and distribution of Orafti inulin and oligofructose. The business operations of the BENEO Group are divided into four segments: sugar, special products, cropenergies, and fruit, with inulin and oligofructose falling under the special product category. Additionally, BENEO provides functional food ingredients such as alternative carbohydrates, rice derivatives, and wheat gluten. BENEO inulin is known for its texture-enhancing properties, while BENEO oligofructose serves as natural sweeteners. The company also offers other varieties of inulin like Orafti Synergy1, which are highly soluble and act as natural sweeteners. With six manufacturing facilities in Germany, Belgium, Chile, Netherlands, and Italy, the company operates in more than 80 countries. As of August 2022, BENEO employed over 1000 individuals globally.

• Roquette Frères, Established in 1933, Roquette Frères is a company based in Lestrem, France. It has a diverse portfolio of operations that span pharma, food & nutrition, biopharma, cosmetics, industrial markets, and animal nutrition. The industrial markets division encompasses bio-industry, chemicals, oral care, paper & board, performance materials, and water treatment solutions. Roquette Frères is recognized as one of the world's leading producers of starch. The company has a significant operational footprint, with activities in over 100 countries across Europe, Asia Pacific, and North America. Its products are distributed globally through its headquarters, offices, production sites, and research & development centers located in various countries such as Brazil, Canada, China, France, Germany, India, Japan, Spain, and the U.K. Roquette Frères is actively engaged in research & development, introducing innovative products like Beauté by Roquette, a plant-based preservative booster that eliminates main strains in cosmetic products.

Value chain-based sizing & forecasting

Supply Side Estimates

• Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

• Segment revenue determination via variable analysis and penetration modeling.

• Competitive benchmarking to identify market leaders and their collective revenue shares.

• Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

• Identifying parent markets and ancillary markets

• Segment penetration analysis to obtain pertinent

• revenue/volume

• Heuristic forecasting with the help of subject matter experts

• Forecasting via variable analysis

Functional Foods Market Report Objectives:

• Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

• Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

• Understanding market estimates and forecasts (with the base year as 2021, historic information from 2017 to 2021, and forecast from 2022 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Functional Foods Market Report Assumptions:

• The report provides market value for the base year 2021 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

• The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

• We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

• All market estimates and forecasts have been validated through primary interviews with the key industry participants.

• Inflation has not been accounted for to estimate and forecast the market.

• Numbers may not add up due to rounding off.

• Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

• Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

• Latin America includes Central American countries and the South American continent

• Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

• Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

• Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.