Functional Ingredients Market Size, Share & Trends Analysis Report By Product (Probiotics, Rice Protein), By Application (Food & Beverages, Pharmaceuticals), By Region, And Segment Forecasts, 2023 - 2030

Research Methodology

A three-pronged approach was followed for deducing the functional ingredients 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 ingredients 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 ingredients 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 Ingredients Market Categorization:

The functional ingredients market was categorized into three segments, namely product (Maltodextrin, Probiotics, Polydextrose, Modified starch, Pectin, Omega-3 (EPA,DHA,ALA), Omega-6, Conjugated linoleic acid, Rice protein, Protein hydrolysate, Mung bean protein), application (Food & beverages, Personal care, Pharmaceuticals, Animal feed), and region (North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa).

Segment Market Methodology:

The functional ingredients market was segmented into 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 ingredients market was analyzed at a regional level. The globe 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 seven countries, namely, the U.S.; Germany; the UK; China; India; Thailand; Brazil.

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 ingredients market companies & financials:

The functional ingredients 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:

• Archer Daniels Midland Company (ADM) - Archer Daniels Midland Company (ADM) operates as an agriculture product processor and food ingredient provider in the U.S. The company was founded in 1902 and is headquartered in Illinois, U.S. It is a public company and trades under the symbol ADM on the New York Stock Exchange (NYSE). The company operates through its four reportable segments, namely origination, oilseeds, carbohydrate solutions, and nutrition. Under the origination segment, it buys, stores, cleans, and transports agricultural commodities, such as oilseeds, corn, wheat, milo, oats, rice, and barley, and resells these commodities primarily as food & feed ingredients and as raw materials to the agricultural processing industry.

• Ingredion Incorporated - Ingredion Incorporated was established in 1906 and is headquartered in Illinois, U.S. The company is engaged in the manufacturing and marketing of sweeteners and starches for various end-use industries. Its major business segments include food & beverages, pharmaceuticals, animal feed, corrugating products, paper, textile, and health & wellness, which operate across North America, South America, Asia Pacific, the Middle East & Africa, and Europe. The company’s products are extensively used in high fructose corn syrups, dextrose, maltodextrins, biomaterials, industrial starches, glucose syrups, high maltose syrups, caramel, and colors. It also offers edible corn oil, refined corn oil, salad dressings, and several other food items.

• Cargill, Incorporated - Cargill, Incorporated was incorporated in 1930 and has corporate headquarters in Minnesota, U.S. The company is an American privately held global corporation engaged in the development, manufacturing, and distribution of agriculture, food, financial services, and industrial products. It has segregated its business into four segments, namely animal nutrition & protein, food ingredients & applications, origination & processing, and industrial & financial services. The company offers a broad range of products to cater to various industries including food & beverage, animal nutrition, bio-industrial, food service, meat & poultry, pharmaceutical, beauty, energy & industrial, and agriculture.

• Tate & Lyle - Tate & Lyle, a public company, was founded in 1921 and is headquartered in London, UK. The company is a manufacturer of food & beverage ingredients and solutions including starches, Splenda, alcohol, citric acid, and high fructose corn syrup, which find numerous applications. Its different expertise divisions include beverages, dairy, soups, sauces & dressings, bakery & snacks, confectionery, human nutrition science, and animal nutrition. The company offers products that provide solutions for healthy living, clean labeling, sugar & calorie reduction, digestive health & enrichment, adding texture, and non-GMO alternatives.

• Roquette Frères - Roquette Frères, a producer of modified starch and starch derivatives, was established in 1933 and is headquartered in Lestrem, France. The company is engaged in the manufacturing and distribution of specialty food ingredients and pharmaceutical excipients. It transforms plant-based raw materials, such as corn, maize, wheat, potatoes, and peas, into various high-quality ingredients for a variety of food and non-food industries across the globe. The company caters its products and services to various industries including human nutrition, pharmacy-cosmetology, fermentation, paper/board, chemistry-bio, and animal feed. Its product portfolio includes native & modified starches, cereal sugars, dietary fibers, polyols, derivatives of fermentation & fine chemistry products, proteins and their derivatives, cyclodextrins, organic acids & salts, plant-based resins, fiber, and bio-ethanol.

• Golden Grain Group Limited - Golden Grain Group Limited was registered in 2000 and is headquartered in Shandong, China. The company provides a wide range of products such as feed additives, pharmaceutical raw materials, household chemicals, food & beverage additives, agricultural fertilizers, waterproofing materials, and construction chemicals. It exports its products to more than 60 countries worldwide. The company supplies products and innovative solutions to medicine, food & beverage, agriculture, personal care & household, animal feed, and nutrition industries. Within the food & beverage additive segment, the company offers starch sugars (trehalose, maltodextrin, dextrose anhydrous, maltose syrup, dextrose monohydrate, maltose syrup, glucose syrup, and high fructose corn syrup), polyols (xylitol, sorbitol solution, mannitol, sorbitol powder, and maltitol powder), food sweeteners, food thickeners, vitamin series, dietary fibers, and plant protein powder.

• FMC Corporation - FMC Corporation was founded in 1883 and is headquartered in Pennsylvania, U.S. It is a chemical manufacturing company that serves industrial, consumer, and agricultural sectors through its products and innovative solutions. The company operates through three major business segments, namely FMC lithium, FMC agricultural solutions, and FMC health & nutrition. FMC health & nutrition segment provides an extensive range of products such as microcrystalline cellulose for use as drug tablet binders, food ingredients, nutraceutical encapsulates, pharmaceutical excipients, natural colorants, alginates for food ingredients, and omega-3s (EPA and DHA) for pharmaceutical and nutraceutical uses. As of 2018, the company employed 7,300 people worldwide.

• Plasma Nutrition Inc. - Plasma Nutrition Inc. was founded in 2015 and is headquartered in New York, U.S. The company implements ingredient optimization technology, which allows it to modify the characteristics of proteins on a commercial scale, altering their mode of absorption and utilization by the body. It also offers a wide range of protein hydrolysates, enzymes, and food additives. Furthermore, the company aims to provide special benefits to the protein-deficient population through its wide range of protein-rich products. In 2016, it participated in a cohort of Food-X, a major food business accelerator in the world that partners with companies operating across value chains and helps them build better corporate relationships. The company has introduced several whey protein-based products through its partnership with PERFORMIX.

• NutriBiotic - NutriBiotic was founded in 1980 and is headquartered in California, U.S. The company is a manufacturer as well as a marketer of personal care products, supplements, grapefruit seed extracts, vitamins, and protein powders. It also produces naturally flavored and non-flavored rice protein powder, which is gluten-free and GMO-free in nature. Within its protein segment, the company offers rice protein, organic rice protein, whey protein, and pea protein. Its vitamin C supplements include meta C, vitamin C (amla), vitamin C (ascorbic acid), ascorbic acid powder, ascorbic acid w/bioflavonoids, ascorbate bio-c, calcium ascorbate, sodium ascorbate, hypo-aller-c, buffered vitamin c, and electro-c.

• Omega Protein Corporation - Omega Protein Corporation was established in 1913 and is headquartered in Texas, U.S. The company offers a wide range of products including fish oils, fish meals, fish soluble, cod liver oil, flaxseed, krill oil, black currant seed oil, coconut oil, borage seed oil, evening primrose oil, hempseed, dairy protein, and nutraceuticals. The company had a workforce of over 1000 personnel as of December 2019. Furthermore, omega-3 product mainly serves the human nutrition sector with its products enhancing its usage in cod liver oil, flaxseed, and krill oil. It produces about 17,000 tons of omega-3 products and operates across 17 locations including the U.S., the UK, Italy, and the Netherlands. The company has partnerships with Russell 2000 and Peer Group.

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 Ingredients 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 2022, historic information from 2018 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Functional Ingredients Market Report Assumptions:

• The report provides market value for the base year 2022 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.