According to research published by Future Market Insights, increasing consumer awareness of health and fitness is expected to fuel the demand for functional foods across region.
“Further, rising consumption of processed food in developing economies such as India and China and a steadily increasing GDP is also expected to drive demand for functional foods across the region. A growing baby boomer population, changing lifestyle patterns, and increasing urbanisation is further likely to boost market growth in the Asia Pacific region,” states the report.
In terms of value, the market is projected to register CAGR of 5.9% during the forecast period.
Such growth is also being aided by leading firms increasing manufacturing capacity and/or setting up new branches in the region in order to further strengthen their market foothold.
Dairy focus
According to the report, Japan is likely to continue to dominate the market, accounting for a revenue share of 35.1% by 2026, while China is projected to register the second-highest CAGR of 6.3% in terms of value over the forecast period.
Probiotics are projected to be the fastest growing segment over the forecast period, enjoying CAGR of 6.6% over the next decade to $1.23bn – almost a quarter of the overall functional foods market.
It is therefore unsurprising that the dairy and dairy-based products segment is expected to be the largest category in 2026, with an anticipated value of $ 1.47bn on the back of a 6.4% CAGR.
The report adds: “The Asia Pacific functional food ingredients market was valued at $2.71bn in 2015 and is estimated to reach $2.85bn by the end of 2016, reflecting a year-on-year growth rate of 5.4%. The market is expected to be valued at US$ 5.04bn by the end of 2026, registering a CAGR of 6.1% over the forecast period [from 2015’s figure].
"The Asia Pacific functional food ingredients market is estimated to represent an absolute dollar opportunity of $147m in 2016 over 2015 and is expected to represent an incremental dollar opportunity of $2.19bn between 2016 and 2026.”