The market for functional food ingredients is projected to reach about $2.5 billion by 2020, growing at a CAGR of about 6% from 2015 to 2020, according to a report from MarketsandMarkets.

The report defines and segments the functional food ingredients market on the basis of various types, applications, health benefits, and regions, with analyses and projections of the market size of each of these segments in terms of value and volume. It also identifies the driving and restraining factors for the functional food ingredients market with an analysis of the trends, opportunities, burning issues, and winning imperatives

Functional food ingredients can be defined as ingredients that have the capability to add a particular benefit to the end product. A proper understanding of the features of various specialty food ingredients allows food and beverage formulators to use their potential contributions to meet consumer demands. The features of these ingredients include preservation, texturization, emulsification, coloring, processing aids, and nutritional enhancement. The changing lifestyles and growing health awareness among consumers are some of the factors fueling the market for functional food ingredients.

The market is projected to reach about $2.5 billion by 2020, growing at a CAGR of about 6% from 2015 to 2020. In 2014, North America was the largest market for functional food ingredients. Asia-Pacific is projected to be the fastest-growing market during the review period. This is driven by the increasing consumer awareness and growing incidences of chronic diseases such as gut diseases, high blood pressure, diabetes, and rickets.

The report includes marketing and development strategies, along with the product portfolio of leading companies.