Latin America Functional Food Ingredients Market

Latin America Functional Food Ingredients Market was worth USD 267.7 million in 2021 and estimated to be growing at a CAGR of 6.4 %, to reach USD 365.05 million by 2026. The term functional food ingredients is used for ingredients having capability to add additional value to food.

Functional Food Ingredients are the ingredients that have the ability to add additional benefit to the food product often one related to health-promotion or disease prevention. Functional foods are designed to have physiological benefits and/or reduce the risk of chronic disease beyond basic nutritional functions, and may be similar in appearance to conventional food and consumed as part of a regular diet. The features of these ingredients include preservation, texturization, emulsification, colouring, processing aids, and nutritional enhancement.

Factors fuelling the growth of market are increasing demand for fortified/fortified food, rising dietary problems coupled with modern lifestyles, prevalence in chronic diseases driving consumers to shift to healthier food products and growing awareness regarding the immunity enhancing property of proper diet and food habits. However, the market growth is hindered by factors like strict government legislations, limited accessibility and availability of ingredients and their expensive nature.

The Latin America market for Functional Food Ingredients is segmented based on Type, Application and Health Benefit. Based on Type – Protein, Vitamin, Mineral, Prebiotic and Probiotic, Hydrocolloid, Essential Oil, Fatty Acid and Carotenoid. Based on Application – Food and Beverage. Based on Health Benefit - Gut, Bone, Health, Immunity, Nutrition and others. Based on Geographical analysis the market is separated into regions of Brazil, Argentina, Mexico and Rest of Latin America. Brazil is leading the market regionally, due to high consumption and demand of fortified/functional as well as due to presence of a well-developed food industry. Argentina is expected to grow the fastest owing to its increasing economy with a large population base ready to spend on functional food and rapidly growing consumer markets. Vitamin and mineral ingredients hold the major share in the type segment as these substances are vital for a healthy diet and play important role in all life cycles for body development. Prebiotics and probiotics are expected to grow the fastest due to increasing awareness regarding beneficiary micro-organisms. Food applications hold major share in applications segment while beverage applications are expected to grow at a rapid pace.

Some of the key players dominating this market include Archer Daniels Midland Company, Cargill, Incorporated, Koninklijke DSM N.V., BASF SE, Arla Foods, Tate and Lyle PLC, Ingredion Incorporated, Kerry Group PLC, E. I. Du Pont De Nemours and Company and Associated British Foods.