New research by FMI has shown that China had the most significant segment of the functional food ingredients market in the Asia Pacific in 2022, with the region accounting for 45.7 percent of the market.
This significant segment is due to the increase of chronic diseases among consumers due to their hectic lifestyles and increased awareness regarding the benefits of functional food ingredients.
Food consumption behaviours in China have changed significantly as living standards have improved, creating greater accessibility to consumers for a broader range of consumer products, especially across functional ingredients products.
The demand for emulsifiers has increased because of the popularity of convenience foods, making China the largest market in the Asia Pacific for functional food ingredients products.
The functional food ingredient industry in China is focused on higher investments in research and development programs to introduce new ingredients to meet the diversified demand from consumers. Each of these factors is expected to positively impact the market in China, with an anticipated sales growth over the forecast period with a 7.4 percent CAGR.
In 2022, Japan's functional food ingredients market dominated over 22 percent of the Asia Pacific market share. In recent years, Japanese manufacturers in the functional food ingredient market have been trying to make their products more nutritious, following the ongoing high-protein trend in the food and beverage industry.
Consumer awareness in the country regarding anti-aging, weight management, and other health issues by consuming naturally-sourced protein has enabled many producers to offer protein-fortified products with health benefits. This trend has been an extensive driver for the growth of functional food ingredients in Japan, with a 6.2 percent CAGR from 2023 to 2033.