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Asia Pacific Functional Food Ingredients Market: APAC Industry Analysis and Opportunity Assessment, 2016–2026

©2015 Future Market Insights, All Rights Reserved

Table of Contents (1/11)

©2015 Future Market Insights, All Rights Reserved2

1. Asia Pacific Functional Food Ingredients Market Executive Summary

2. Assumptions & Acronyms Used

3. Research Methodology

4. Market Overview

4.1. Introduction

4.1.1. Market Definition

4.1.2. Market Taxonomy

4.2. Market Dynamics

4.2.1. Drivers

4.2.2. Restraints

4.2.3. Opportunity

4.3. Asia Pacific Functional Food Ingredients Market Forecast, 2014–2026

4.3.1. Market Size (Value) Forecast

4.3.1.1. Y-o-Y Growth Projections

4.3.1.2. Absolute $ Opportunity

4.4. Market Trends

4.5. Key Regulations

4.6. Asia Pacific Market Snapshot (2015)

4.6.1. Market Overview By Ingredient Type

4.6.2. Market Overview By Application

4.6.3. Market Overview By Country

5. Asia Pacific Functional Food Ingredients Market Analysis, By Ingredient Type

5.1. Asia Pacific Functional Food Ingredients Market Analysis & Forecast, 2016–2026

5.1.1. Y-o-Y Growth Comparison, By Ingredient Type

5.1.2. Basis Point Share (BPS) Analysis, By Ingredient Type



5.2. Market Forecast By Ingredient Type

5.2.1. Vitamins


5.2.1.2. Market Value Forecast

5.2.2. Minerals

5.2.3. Prebiotics & Dietary Fibre

5.2.4. Probiotics

5.2.5. Carotenoids

5.2.6. Protein

5.2.7. Omega 3 Fatty Acids

5.3. Market Attractiveness By Ingredient Type

5.4. Market Trends

6. Asia Pacific Functional Food Ingredients Market Analysis, By Application


6.1.1. Y-o-Y Growth Comparison, By Application

6.1.2. Basis Point Share (BPS) Analysis, By Application

6.2. Market Forecast By Application

6.2.1. Beverages


6.2.1.2. Market Value Forecast

6.2.2. Dairy & dairy-based products

6.2.3. Infant Food

6.2.4. Bakery & Confectionery

6.3. Market Attractiveness By Application

6.4. Market Trends



7. Asia Pacific Functional Food Ingredients Market Analysis, By Country


7.1.1. Y-o-Y Growth Projections, By Country

7.1.2. Basis Point Share (BPS) Analysis, By Country

7.2. Market Forecast By Country

7.2.1. Singapore Market Value Forecast

7.2.2. India Market Value Forecast

7.2.3. Japan Market Value Forecast

7.2.4. China Market Value Forecast

7.2.5. Thailand Market Value Forecast

7.2.6. Malaysia Market Value Forecast

7.2.7. Indonesia Market Value Forecast

7.3. Regional Key Trends

8. Singapore Functional Food Ingredients Market Analysis

8.1. Singapore Market Forecast

8.1.1. Market Value Forecast By Country


8.1.2. Market Value Forecast By Ingredient Type

8.1.2.1. Vitamins

8.1.2.2. Minerals

8.1.2.3. Prebiotics & Dietary Fibre

8.1.2.4. Probiotics

8.1.2.5. Carotenoids

8.1.2.6. Protein

8.1.2.7. Omega 3 Fatty Acids



8.1.3. Market Value Forecast By Application

8.1.3.1. Beverages

8.1.3.2. Dairy & dairy-based products

8.1.3.3. Infant Food

8.1.3.4. Bakery & Confectionery

8.1.4. Market Attractiveness Analysis

8.1.4.1. By Country

8.1.4.2. By Ingredient Type

8.1.4.3. By Application

9. India Functional Food Ingredients Market Analysis

9.1. India Market Forecast




9.1.2.1. Vitamins

9.1.2.2. Minerals


9.1.2.4. Probiotics


9.1.2.6. Protein



9.1.3.1. Beverages







9.1.4.1. By Country



10. Japan Functional Food Ingredients Market Analysis

10.1. Japan Functional Food Ingredients Market Forecast




10.1.2.1. Vitamins

10.1.2.2. Minerals


10.1.2.4. Probiotics


10.1.2.6. Protein



10.1.3.1. Beverages





10.1.4.1. By Country





11. China Functional Food Ingredients Market Analysis

11.1. China Functional Food Ingredients Market Forecast

11.1.1. Market Value Forecast By Country/Region



11.1.2.1. Vitamins

11.1.2.2. Minerals




11.1.2.6. Protein



11.1.3.1. Beverages








12. Thailand Functional Food Ingredients Market Analysis

12.1. Thailand Functional Food Ingredients Market Forecast






12.1.2.1. Vitamins

12.1.2.2. Minerals




12.1.2.6. Protein



12.1.3.1. Beverages








13. Malaysia Functional Food Ingredients Market Analysis

13.1. Malaysia Functional Food Ingredients Market Forecast


13.1.1.1. Vitamins

13.1.1.2. Minerals






13.1.1.6. Protein



13.1.2.1. Beverages








14. Indonesia Functional Food Ingredients Market Analysis

14.1. Indonesia Functional Food Ingredients Market Forecast




14.1.2.1. Vitamins

14.1.2.2. Minerals




14.1.2.6. Protein





14.1.3.1. Beverages








15. Competitive Landscape—By Ingredient

15.1. Competition Dashboard

15.2. Company Profiles

15.2.1. Sciphar Natural Products Co., Ltd.

15.2.1.1. Overview

15.2.1.2. Product Offering

15.2.1.3. Key Strategies

15.2.2. Marathwada Chemical Industries Pvt. Ltd.

15.2.3. FENCHEM BIOTEK LTD.

15.2.4. Arjuna Natural Extracts Ltd.

15.2.5. NEW ASIA INGREDIENTS PTE LTD.

15.2.6. Shandong Yuwang Industrial Co., Ltd.

15.2.7. Supreem Pharmaceuticals Mysore Pvt. Ltd.

15.2.8. Bio Actives Japan Corporation

15.2.9. Global Specialty Ingredients (M) Sdn. Bhd.

15.2.10. Excellent Health Products Co., Ltd.

16. Competitive Landscape—By Product



16.1. Competition Dashboard

16.2. Company Profiles

16.2.1. Nestlé S.A.

16.2.1.1. Overview

16.2.1.2. Operating Brands

16.2.1.3. Key Strategy

16.2.1.4. Key Developments

16.2.1.5. Key Financials

16.2.2. PepsiCo, Inc.

16.2.3. ConAgra Foods, Inc.

16.2.4. Kellogg Company

16.2.5. Yakult Honsha Co., Ltd.

16.2.6. Danone S.A.

16.2.7. Meiji Holdings Co., Ltd.

16.2.8. The Coca-Cola Co.

16.2.9. Tata Global Beverages Ltd.

16.2.10. General Mills, Inc.

List of Figures


Figure 1: Asia Pacific Functional Food Ingredients Market Value & Y-o-Y Growth Forecast, 2015–2026

Figure 2: Asia Pacific Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), 2016–2026

Figure 3: Asia Pacific Functional Food Ingredients Market Value Share and BPS Analysis By Ingredient Type, 2016 & 2026

Figure 4: Asia Pacific Functional Food Ingredients Market Y-o-Y Growth by Ingredient Type, 2016–2026

Figure 5: Asia Pacific Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Vitamins Segment, 2016─2026

Figure 6: Asia Pacific Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Minerals Segment, 2016─2026

Figure 7: Asia Pacific Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Prebiotics & Dietary Fibre Segment, 2016─2026

Figure 8: Asia Pacific Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Probiotics Segment, 2016─2026

Figure 9: Asia Pacific Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Carotenoids Segment, 2016─2026

Figure 10: Asia Pacific Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Protein Segment, 2016─2026

Figure 11: Asia Pacific Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Omega 3 Fatty Acids Segment, 2016─2026

Figure 12: Asia Pacific Functional Food Ingredients Market Value Share and BPS Analysis By Application, 2016 & 2026

Figure 13: Asia Pacific Functional Food Ingredients Market Y-o-Y Growth by Application, 2016–2026

Figure 14: Asia Pacific Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Beverages Segment, 2016─2026

Figure 15: Asia Pacific Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Dairy & dairy-based products Segment, 2016─2026

Figure 16: Asia Pacific Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Infant Food Segment, 2016─2026

Figure 17: Asia Pacific Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Bakery & Confectionery Segment, 2016─2026

Figure 18: Asia Pacific Functional Food Ingredients Market Attractiveness Analysis By Ingredients Type, 2016–2026

Figure 19: Asia Pacific Functional Food Ingredients Market Attractiveness Analysis By Application, 2016–2026

Figure 20: Asia Pacific Functional Food Ingredients Market Value Share and BPS Analysis By Country, 2016 & 2026

List of Figures


Figure 21: Asia Pacific Functional Food Ingredients Market Y-o-Y Growth by Country, 2016–2026

Figure 22: Asia Pacific Functional Food Ingredients Market Attractiveness Analysis By Country, 2016–2026

Figure 23: Singapore Functional Food Ingredients Market Value (US$ Mn), 2015–2026

Figure 24: Singapore Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), 2016–2026

Figure 25: Singapore Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Vitamins Segment, 2016─2026

Figure 26: Singapore Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Minerals Segment, 2016─2026

Figure 27: Singapore Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Prebiotics & Dietary Fibre Segment, 2016─2026

Figure 28: Singapore Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Probiotics Segment, 2016─2026

Figure 29: Singapore Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Carotenoids Segment, 2016─2026

Figure 30: Singapore Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Protein Segment, 2016─2026

Figure 31: Singapore Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Omega 3 Fatty Acids Segment, 2016─2026

Figure 32: Singapore Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Beverages Segment, 2016─2026

Figure 33: Singapore Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Dairy & dairy-based products Segment, 2016─2026

Figure 34: Singapore Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Infant Food Segment, 2016─2026

Figure 35: Singapore Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Bakery & Confectionery Segment, 2016─2026

Figure 36: Singapore Functional Food Ingredients Market Attractiveness Analysis By Ingredients Type, 2016–2026

Figure 37: Singapore Functional Food Ingredients Market Attractiveness Analysis By Application, 2016–2026

Figure 38: India Functional Food Ingredients Market Value

Figure 39: India Functional Food Ingredients Market

Figure 40: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Vitamins Segment, 2016─2026

List of Figures


Figure 41: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Minerals Segment, 2016─2026

Figure 42: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Prebiotics & Dietary Fibre Segment, 2016─2026

Figure 43: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Probiotics Segment, 2016─2026

Figure 44: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Carotenoids Segment, 2016─2026

Figure 45: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Protein Segment, 2016─2026

Figure 46: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Omega 3 Fatty Acids Segment, 2016─2026

Figure 47: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Beverages Segment, 2016─2026

Figure 48: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Dairy & dairy-based products Segment, 2016─2026

Figure 49: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Infant Food Segment, 2016─2026

Figure 50: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Bakery & Confectionery Segment, 2016─2026

Figure 51: India Functional Food Ingredients Market Attractiveness Analysis By Ingredients Type, 2016–2026

Figure 52: India Functional Food Ingredients Market Attractiveness Analysis By Application, 2016–2026

Figure 53 Japan Functional Food Ingredients Market Value (US$ Mn), 2015–2026

Figure 54: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), 2016–2026

Figure 55: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Vitamins Segment, 2016─2026

Figure 56: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Minerals Segment, 2016─2026

Figure 57: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Prebiotics & Dietary Fibre Segment, 2016─2026

Figure 58: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Probiotics Segment, 2016─2026

Figure 59: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Carotenoids Segment, 2016─2026

Figure 60: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Protein Segment, 2016─2026

List of Figures


Figure 61: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Omega 3 Fatty Acids Segment, 2016─2026

Figure 62: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Beverages Segment, 2016─2026

Figure 63: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Dairy & dairy-based products Segment, 2016─2026

Figure 64: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Infant Food Segment, 2016─2026

Figure 65: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Bakery & Confectionery Segment, 2016─2026

Figure 66: Japan Functional Food Ingredients Market

Figure 67: Japan Functional Food Ingredients Market

Figure 68: China Functional Food Ingredients Market Value (US$ Mn), 2015–2026

Figure 69: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), 2016–2026

Figure 70: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Vitamins Segment, 2016─2026

Figure 71: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Minerals Segment, 2016─2026

Figure 72: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Prebiotics & Dietary Fibre Segment, 2016─2026

Figure 73: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Probiotics Segment, 2016─2026

Figure 74: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Carotenoids Segment, 2016─2026

Figure 75: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Protein Segment, 2016─2026

Figure 76: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Omega 3 Fatty Acids Segment, 2016─2026

Figure 77: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Beverages Segment, 2016─2026

Figure 78: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Dairy & dairy-based products Segment, 2016─2026

Figure 79: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Infant Food Segment, 2016─2026

Figure 80: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Bakery & Confectionery Segment, 2016─2026

List of Figures


Figure 81: China Functional Food Ingredients Market Attractiveness Analysis By Ingredients Type, 2016–2026

Figure 82: China Functional Food Ingredients Market Attractiveness Analysis By Application, 2016–2026

Figure 83: Thailand Functional Food Ingredients Market Value

Figure 84: Thailand Functional Food Ingredients Market

Figure 85: Thailand Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Vitamins Segment, 2016─2026

Figure 86: Thailand Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Minerals Segment, 2016─2026

Figure 87: Thailand Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Prebiotics & Dietary Fibre Segment, 2016─2026

Figure 88: Thailand Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Probiotics Segment, 2016─2026

Figure 89: Thailand Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Carotenoids Segment, 2016─2026

Figure 90: Thailand Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Protein Segment, 2016─2026

Figure 91: Thailand Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Omega 3 Fatty Acids Segment, 2016─2026

Figure 92: Thailand Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Beverages Segment, 2016─2026

Figure 93: Thailand Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Dairy & dairy-based products Segment, 2016─2026

Figure 94: Thailand Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Infant Food Segment, 2016─2026

Figure 95: Thailand Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Bakery & Confectionery Segment, 2016─2026

Figure 96: Thailand Functional Food Ingredients Market Attractiveness Analysis By Ingredients Type, 2016–2026

Figure 97: Thailand Functional Food Ingredients Market Attractiveness Analysis By Application, 2016–2026

Figure 98: Malaysia Functional Food Ingredients Market Value (US$ Mn), 2015–2026

Figure 99: Malaysia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), 2016–2026

Figure 100: Malaysia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Vitamins Segment, 2016─2026

List of Figures


Figure 101: Malaysia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Minerals Segment, 2016─2026

Figure 102: Malaysia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Prebiotics & Dietary Fibre Segment, 2016─2026

Figure 103: Malaysia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Probiotics Segment, 2016─2026

Figure 104: Malaysia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Carotenoids Segment, 2016─2026

Figure 105: Malaysia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Protein Segment, 2016─2026

Figure 106: Malaysia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Omega 3 Fatty Acids Segment, 2016─2026

Figure 107: Malaysia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Beverages Segment, 2016─2026

Figure 108: Malaysia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Dairy & dairy-based products Segment, 2016─2026

Figure 109: Malaysia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Infant Food Segment, 2016─2026

Figure 110: Malaysia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Bakery & Confectionery Segment, 2016─2026

Figure 111: Malaysia Functional Food Ingredients Market Attractiveness Analysis By Ingredients Type, 2016–2026

Figure 112: Malaysia Functional Food Ingredients Market Attractiveness Analysis By Application, 2016–2026

Figure 113: Indonesia Functional Food Ingredients Market Value (US$ Mn), 2015–2026

Figure 114: Indonesia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), 2016–2026

Figure 115: Indonesia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Vitamins Segment, 2016─2026

Figure 116: Indonesia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Minerals Segment, 2016─2026

Figure 117: Indonesia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Prebiotics & Dietary Fibre Segment, 2016─2026

Figure 118: Indonesia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Probiotics Segment, 2016─2026

Figure 119: Indonesia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Carotenoids Segment, 2016─2026

Figure 120: Indonesia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Protein Segment, 2016─2026

List of Figures


Figure 121: Indonesia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Omega 3 Fatty Acids Segment, 2016─2026

Figure 122: Indonesia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Beverages Segment, 2016─2026

Figure 123: Indonesia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Dairy & dairy-based products Segment, 2016─2026

Figure 124: Indonesia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Infant Food Segment, 2016─2026

Figure 125: Indonesia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Bakery & Confectionery Segment, 2016─2026

Figure 126: Indonesia Functional Food Ingredients Market Attractiveness Analysis By Ingredients Type, 2016–2026

Figure 127: Indonesia Functional Food Ingredients Market Attractiveness Analysis By Application, 2016–2026

List of Table


Table 1: Asia Pacific Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Ingredient Type,

Table 2: Asia Pacific Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Application, 2015–2026

Table 3: Asia Pacific Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity by Country, 2015–2026

Table 4: Singapore Functional Food Ingredients Market Value (US$ Mn) and absolute $ opportunity (US$ Mn) by Ingredient Type,

Table 5: Singapore Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Application, 2015–2026

Table 6: India Functional Food Ingredients Market Value (US$ Mn) and absolute $ opportunity (US$ Mn) by Ingredient Type, 2015–2026

Table 7: India Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Application, 2015–2026

Table 8: Japan Functional Food Ingredients Market Value (US$ Mn) and absolute $ opportunity (US$ Mn) by Ingredient Type, 2015–2026

Table 9: Japan Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Application, 2015–2026

Table 10: China Functional Food Ingredients Market Value (US$ Mn) and absolute $ opportunity (US$ Mn) by Ingredient Type, 2015–2026

Table 11: China Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Application, 2015–2026

Table 12: Thailand Functional Food Ingredients Market Value (US$ Mn) and absolute $ opportunity (US$ Mn) by Ingredient Type,

Table 13: Thailand Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Application, 2015–2026

Table 14: Malaysia Functional Food Ingredients Market Value (US$ Mn) and absolute $ opportunity (US$ Mn) by Ingredient Type,

Table 15: Malaysia Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Application, 2015–2026

Table 16: Indonesia Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Ingredient Type, 2015–2026

Table 17: Indonesia Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Application, 2015–2026

Executive Summary

Section 1


Asia Pacific Functional Food Ingredients Market :Executive Summary (1/3)

• Increasing demand for fortified food products

• Increasing baby boomer population

• Stringent government regulations• Raw material supply chain issues

Dri

vers R

estrain

ts

In this report, the Asia Pacific functional foodingredients market is segmented on the basis ofingredients type, application and region

In terms of ingredients type, the probioticsingredients segment is expected to be valued atUS$ 1,277.4 Mn by 2026, expanding at a CAGR of6.6% over the forecast period (2016–2026)

In terms of application, the dairy and dairy-basedproducts segment is expected to be valued atUS$ 1,473.1 Mn by 2026, expanding at a CAGR of6.4% during the forecast period

By country, Japan is expected to dominate theAsia Pacific functional food ingredients market,accounting for a revenue share of 35.1% by 2026

Increasing Participation in exhibitions:

Various ingredients suppliers operating in the AsiaPacific region are continuously participating inexhibitions in order to showcase their respectiveingredients portfolio and to also enter into newmarkets.

Increasing use of probiotics in dairy anddairy-based products

Companies are increasingly manufacturing foodproducts incorporated with probiotic bacteria.Probiotic dairy products such as yogurts includebacteria strains such as lacidophilus andbifidobacterium.

Overview Market TrendsSegment

Application

• Beverages• Dairy & Dairy Based

Products• Infant Food• Bakery & Confectionery

Ingredients Type

• Vitamins• Minerals• Prebiotics• Probiotics• Carotenoids• Protein• Omega 3 Fatty Acids

Asia Pacific Functional Food Ingredients Market


8.8%

14.9%

31.7%

19.1%

4.8%

11.8%

8.9%

Asia Pacific Functional Food Ingredients Market : Executive Summary (2/3)

7.9%14.6%

35.1%

19.9%

4.1%

10.7%

7.8%

Singapore India Japan China Thailand Malaysia Indonesia

25.9%

29.2%

24.1%

20.8%

Bakery & Confectionery

Infant Food

Dairy & Dairy Based Products

Beverages

16.6%

16.9%

6.8%

25.3%

4.2%

12.1%

18.1%

Omega 3 Fatty AcidsProteinCarotenoidsProbioticsPrebiotics & Dietary FibreMineralsVitamins

16.0%

16.7%

7.7%

23.6%

5.2%

12.7%

18.1%

Omega 3 Fatty Acids

Protein

Carotenoids

Probiotics

Prebiotics & Dietary Fibre

Minerals

Vitamins

2016 (E) 2026 (F)

By Ingredients TypeBy Ingredients Type By Application

Source: FMI, 2016

Global Natural and Organic Personal Care Products Market Value 2016 and 2024

Segment Share

CAGR (2016–2024) 5.9%

2016(E)

2026 (F)

25.8%

27.7%

24.6%

22.0%


Infant Food


Beverages

By Application


Asia Pacific Functional Food Ingredients Market : Executive Summary (3/3)

Overall Market Approach

Target Countries

Differential Strategy

Expansion: Expansion by further extending product lines and manufacturing facilitiesrelated to functional food ingredients in the Asia Pacific region

Advanced Technology : Various ingredient manufacturers in Asia Pacific region areusing advanced technology for producing various functional food ingredients suchOmega 3 fatty acids

Japan: Japan represents the most lucrative market in the region, followed by Chinaand India. Japan accounts for significantly higher market share and is expected towitness substantial revenue growth over the forecast period.

Although China and India currently account for relatively moderate share of the AsiaPacific functional food ingredients market, the markets in these countries areexpected to witness rapid growth over the forecast periodadoption of HCS systemsfor cell analysis in this region

Expansion of production capacity and also investing continuously in R&D in order tocater to evolving demand for functional food ingredients across markets in countriesin Asia Pacific

Launch new food ingredients with multifunctional properties such as capability tocombat various diseases and also to prevent early onset of ageing


Assumptions & Acronyms Used

Section 2


Assumptions & Acronyms Used

Market & Forecast :

Yearly change in inflation rate has not been considered whileforecasting market numbers

Product-wise weighted Average Selling Price (ASP) has beenconsidered to deduce market values

Top-down approach has been used to assess market numbers foreach product category

Bottom-up approach has been used to counter-validate theapplication segment types to arrive at the market numbers

Macro-economic indicators, such as the healthcare industryoutlook, healthcare spending, Gross Domestic Product andothers, have been considered to arrive at the estimated marketnumbers

All values for market size are presented in US$ (US Dollar)

All the indicated denominations are in US$ (US Dollar)

Source :

Company annual & financial reports

Magazines, journals and newsletters

Assumptions Acronyms Used

CAGR Compound Annual Growth Rate

Y-o-Y Year-on-Year

GDP Gross Domestic Product

BPS Basis Point Share

FSSAIFood Safety and Standards Authority of India

Mn Million


Research Methodology

Section 3



Systematic Research Approach

In-depth secondary research is used to determine

top industry players, products, applications, overall

market size, industry connotations, identify

distributors and manufactures, etc.

FMI formulates a detailed discussion guide to

interview industry experts

List of industry players (yacht charter service

providers) and industry specialists is developed

FMI conducts interviews with industry expert,

industry participants for data collection and

verification

Data is validated by the triangulation method,

wherein, the secondary and primary data along with

FMIs analysis are consolidated to develop the final

report

The data is scrutinized using the MS-Excel software,

to obtain qualitative and quantitative insights about

the industry

FMI delivers industry insights and information in the

required format (PDF)

Market Profiling

Discussion Guide Formulation

Respondents List Development

Data Analysis

Data Validation

Data Collection

A

C

B

Primary Research

Company Analysis

Desk Research

Identifying Key Opinion Leaders

Questionnaire Design

In-depth Interviews

Market Participants

Key Strengths

Product Portfolio

Key Focus Segments

SOLUTION

Primary Research#

Linkedin Zoominfo Salesforce Onesource

Paid Publications#

Factiva GBI Genios Meltwater

Secondary Research#

Company Websites

Company Annual Reports

White Papers Financial Reports

# includes sources of databases



Inputs from regional

manufacturers, sencondary &

primary sources, and

benchmarking method

Excluded regional average profitability margins from estimated data collected from distributors

Estimating approximate annual consumption of end-use sectors in target

geographies

Market Value and Volume Estimates

Inputs from Government Databases, Trade Value and Volume

(Import & Export)

Growth Rate Projection and Forecast Factors

Historical demand trends

Functional food industry growth rate

Financial performance of top five companies

Macro-economic indicators such as GDP and population

Influence of increasing disposable income



Secondary Research Primary Research Analysis and Result

Functional food ingredients producers and suppliers annual report and company website

– Product offerings

– Recent developments

– Product launches

– Production technology

– Strategies

Newspapers / Magazines /Journal

– Mergers and acquisitions

– Tie-ups and collaboration

– Production technologies

– New technologies

– Consumer perception

IMF/World Bank/Country Government websites/ ITC

– Macro-economic data points

– Trade (import export) data

Data collection and benchmarking estimates

– Identification of data gaps

– Revisiting primary and secondary sources

Data analysis

– Estimating sales figures for current year

– Mapping impact of selected forecast factors

– Identification of trends and variations in the market

– Mapping market trends on projections

– Market split based on collected data

– Developing forecast

Data triangulation

– Study of parent market and end-user Industry trends

Functional Food Ingredients Manufacturers

– Production capacity, annual production, annual sales

– Financials (approximate – current and historic)

– Approximate market share

– Regional presence

– Frequency of new product launches

– Short- and long-term expansion plans

– Collaborations or tie-ups

– Demand drivers and major challenges

Distributors

– Segment-wise volume sales estimates

– Average purchase price

– Profit margins

– Average sales price

Industry Experts

– Trends

1 2 3


Market Overview

Section 4


Asia Pacific Functional Food Ingredients : Market Overview

Functional food ingredients are types of ingredients added to food products to enhance nutritional content and also to enhance medicinal benefits. Major functional food ingredients include omega 3, vitamins, probiotics, proteins, prebiotics and others.

Various functional food ingredients are designed to offer specific health benefit such as omega-3 fatty acids (e.g. DHA) for enhancing heart health and vitamin E for improving and maintaining bone health

Functional food ingredients find application in various products such as beverages, dairy an dairy-based products, infantfood and formulas and bakery and confectionery. Among all application segments, dairy & dairy-based applicationsegment is currently the most dominant, followed by the beverage application segment.

Various food ingredient manufacturers are adopting strategies to cater to regional or domestic requirements ofcustomers. In India for instance, omega-3, which is nonvegetarian-derived product, has been developed from vegetarianvariants such as flaxseed oil and algae.


Source: FMI, 2016

Asia Pacific Functional Food Ingredients :Taxonomy

Vitamins Minerals Prebiotics &

Dietary Fibre Probiotics Carotenoids Protein Omega 3 Fatty

Acids

Beverages Dairy & Dairy-

based Products Infant Food Bakery &

Confectionery

Singapore India Japan China Thailand Malaysia Indonesia


Asia Pacific Functional Food Ingredients Market :Demand Side Drivers (1/3)

Various food manufacturers operating in the Asia Pacific functional food ingredientsmarket are developing and introducing value-added food products with functionalingredients such as probiotics and omega-3 in order to cater to growing consumerdemand for food products that offer various health benefits.

In 2011, the total number of functional food product launches increased to 493, which isapproximately double that recorded in 2010

Rising demand for functional/fortified

foods

Increasing consumer awareness regarding personal and family health across various countries in Asia Pacific is expected to fuel demand for functional food across the region, in turn driving overall growth of the APAC functional food ingredients market over the forecast period

For instance, according to the Health and Food Forum, Japan, concerns regarding health andwellness among consumers in Japan aged between the age of 20 and 70 years is increasingsignificantly. Consumer survey results indicate that around 90% of consumers in the countrymake purchasing decisions based on functionality of offered food products.

Increasing consumerawareness related to

health and fitness


Source: FMI, 2016

Asia Pacific Functional Food Ingredients Market : Demand Side Drivers (2/3)

One of the major factors driving demand for functional food ingredients in Asia Pacificis changing eating habits of consumers, including rising consumption of processedfoods in developing economies such as India and China due increasing purchasingpower parity

Moreover, growing GDP in emerging markets such as India and China is estimated todrive demand for convenience and processed food products In 2013 for instance, GDPs of China and India were approximately US$ 13,390 Bn and US$

4,990 Bn respectively

Developing economies

Food exhibitions

The APAC market for functional food ingredients is expected to witness significant growth over the forecast period owing to rising demand for functional food products in APAC. In order to strengthen supply channel for raw ingredients, food manufacturers in the region are sourcing functional food ingredients from various ingredient providers in order to meet the evolving and unmet demand for functional food products.


Source: FMI, 2016

Asia Pacific Functional Food Ingredients Market :Demand Side Drivers (3/3)

Asia Pacific functional food ingredients market is expected to witness robust marketgrowth owing to increasing baby boomer population across various countries such asIndia and China

Growth rate of elderly population (1.9%) was higher than that of the total population inthe world (1.2%) in 2013. According to the United Nations Department of Economicand Social Affairs, 437 million persons in China are projected to be aged above 60 yearsby 2050, and India would have 324 million people above 60 years of age by 2050.Population above 60 years of age is estimated to expand 3.5X that of the totalpopulation from 2025 to 2030.

Increasing baby boomer population

changing lifestyle and increasing

urbanization

The lifestyle of urban population is fast-paced as compared to that of the ruralpopulation, with urban populations being more health conscious. This is a majorfactor resulting in shift in consumption of food products containing functionalingredients owing to the various associated health benefits.

According to the United Nations Department of Economic and Social Affairs (UNDESA), India and China recorded largest rise in urban population in Asia in 2013. Indiais expected to have 404 million urban dwellers, while China is projected to be hometo 292 million urban dwellers by 2050.


Source: FMI, 2016

Asia Pacific Functional Food Ingredients Market : Supply Side Drivers (1/2)

Various companies operating in the functional food products market are introducingnew products, including functional food ingredients

For instance, Wahaha Group offers various brands for drinking milk products such as RuWa and Shuang Wai , which contain various functional ingredients such as amino acids,vitamins and calcium

Moreover, demand for Asia Pacific functional food ingredients is driven by increasingdemand for healthy convenience food coupled with growing consumer concernsregarding value-added food products. Due to increasing demand for functional foodingredients, technology providers are introducing new technologies in order to enableeasy incorporation of functional ingredients in food products. In 2011 for instance, Cargill, Incorporated launched Vitex AYS stabilizers, which is a

functional food ingredients system that enables dairy food product manufacturers to controlraw material cost with regard to yogurt, without affecting its characteristics. Vitex AYS is acombination of hydrocolloids and starch, which is a cost-effective alternative to gelatin anddoes not affect the texture and flavour of yogurt.

Research and development

Expansion of production facilities

Growing health concerns have resulted in increased demand for functional foodproducts over the last few years, which in turn is driving demand for functional foodingredients. Various drug manufacturing companies are adopting the strategy ofenhancing their market presence by increasing production capacity at existing plants andengaging in new product development.

In 2014, BASF SE expanded its production of omega-3 fatty acid in Asia in order to enhanceits offerings in the nutrition and health segments


Source: FMI, 2016

Asia Pacific Functional Food Ingredients Market : Restraints (1/1)

Regulatory framework

Raw material supply chain issues

Regulations related to functional food and ingredients are expected to hamper growth ofthe Asia Pacific functional food ingredients market over the forecast years. In Japan ,Foods for Specific Health Use (FOSHU), include regulatory framework for food fortifiedwith minerals and vitamins. FOSHU approval requires that food containing ingredientseffectively enhance functions of the human body.

Moreover, Food with Nutrient Functional Claims (FNFC) refer to food products that arelabelled with the functions of the added nutritional ingredients Seventeen nutrients, including two vitamins and five minerals, are permitted for use in FNFC

products, and also includes minimum and maximum daily intake to ensure sufficient nutrientintake and safety. In addition, eight nutrients are not permitted for use in FNFC, which includevitamin K and phosphorus.

Various challenges related to raw material sourcing are hampering growth of the APACfunctional food ingredients market. Various functional food ingredients are used forapplication as essential raw materials for wine and beer making, baking, bioremediationand fermentation. However, increasing use of functional food sources in these processesand applications is resulting in supply chain issues. For instance, yeast finds wide application in baking and fermentation, thus resulting in supply

chain issues for beta-glucan manufacturers. Moreover, yeast is also prone to microbialcontamination, which reduces shelf life, and extraction of beta glucan is also a complexprocess.


Source: FMI, 2016

Asia Pacific Functional Food Ingredients Market : Opportunity

Food associations in Asia Pacific

region and increasing number

of health conscious

consumers

ASEAN is ranked the seventh largest economy in APAC, and consumers in the region are moreinclined towards nutritional food products offering various health benefits. Functional foodingredients are considered natural and healthy and also natural alternatives to medicines.

Moreover, various food associations in the Asia Pacific region are indirectly fuelling demand forfunctional food ingredients such as Japan Health Food & Nutrition Food Association, which is agovernment approved health-promoting organization, with the objective of promoting functionalfoods and nutritional supplements and in turn functional food ingredients in Japan.

Expanding food and beverage

industry

Food and beverage manufacturers are developing food products with vitamins and other nutrients inorder to enhance health benefits. These manufacturers are collaborating with ingredient providers inorder to deliver functional food products.

Moreover, increasing demand for functional beverages such as instant beverages including coffee-mix products, which contain a diverse range of functional ingredients, such as calcium,oligosaccharides etc. are encouraging manufacturers to continuously introduce new products themarket.


Source: FMI, 2016

Asia Pacific Functional Food Ingredients Market & AnalysisAsia Pacific functional food ingredients market is anticipated to increase 0.6X in terms of value during the forecast period

Figure 1: Asia Pacific Functional Food Ingredients Market Value & Y-o-Y Growth Forecast, 2015–2026

Figure 2: Asia Pacific Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), 2016–2026

Key Takeaways

Figure indicates Asia Pacific functional food ingredients market value & Y-o-Y growth forecast between 2015–2026, and figure indicatesabsolute $ opportunity over 2016–2026

In 2015, the Asia Pacific functional food ingredients market was valued at US$ 2,707.1 Mn and is estimated to reach US$ 2,854.1 Mn by 2016end, reflecting Y-o-Y growth rate of 5.4%

The Asia Pacific market is expected to be valued at US$ 5,043.1 Mn by 2026 end, registering a CAGR of 6.1% over the forecast period

The Asia Pacific functional food ingredients market is estimated to represent absolute $ opportunity of US$ 147.0 Mn in 2016 over 2015 and isexpected to represent incremental $ opportunity of US$ 2,189.0 Mn between 2016 and 2026

2,7

07

.1

2,8

54

.1

3,0

11

.1

3,1

78

.5

3,3

58

.4

3,5

50

.5

3,7

58

.9

3,9

83

.3

4,2

22

.7

4,4

77

.7

4,7

51

.3

5,0

43

.1

5.3%5.4% 5.5% 5.6%

5.7% 5.7%5.9%

6.0% 6.0% 6.0% 6.1% 6.1%

5%

5%

5%

6%

6%

0

1,000

2,000

3,000

4,000

5,000

6,000

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2022(F)

2023(F)

2024(F)

2025(F)

2026(F)

Y-o-Y G

row

th R

ate

Rev

enu

e (

US$

Mn

)

2,7

07

.1

3,7

58

.9

5,0

43

.1

+1

47

.0

+1

57

.0

+1

67

.4

+1

79

.9

+1

92

.1

2015 (A) 2016 (E) 2017 (F) 2018 (F) 2019 (F) 2020 (F) 2021 (F) 2026 (F)

US$

Mn

Source: FMI, 2016


Asia Pacific Functional Food Ingredients Market :Trends

Expansion

Increasing Participation in Exhibitions

Various ingredients providers operating in the Asia Pacific region are continuously participating in various exhibitions in order toshowcase ingredients product portfolio and also to enter into new markets

Global Specialty Ingredients (M) Sdn. Bhd. is participating in food ingredient exhibitions such as India Food Exhibition 2016, at Bangalore, INDIA,Food Ingredients 2016, at New Delhi, INDIA, Pro Food & Pack 2016, at Colombo, Sri Lanka etc. in order to increase consumer awarenessregarding functional food ingredients

One of the most prominent trends in the Asia Pacific functional food ingredients market is companies expanding manufacturing capacityand also setting up new branch offices in Asia Pacific region in order to further strengthen footprint in markets in the region

In 2014, FENCHEM BIOTEK LTD. set up its second branch in Thailand in order to strengthen its presence in the South Asia market

The company also plans to expand its raw material processing capacity by 800 Mts by 2016 end, in order to cater to increasing demand fornatural vitamin E and natural phytosterols from various food manufacturers


Source: FMI, 2016

Asia Pacific Functional Food Ingredients Market: Regulations

Japan: Functional Food ingredients used in the food products must satisfy the standards for the minimum and maximum daily levelsof twelve vitamins and five minerals. Foods for specified health uses (FOSHU) require pre-marketing approval, and refer to productsthat contains dietary ingredients and promote health.

India : The manufacture, storage, distribution, sale and import of nutraceuticals in India are regulated under the Food Safety andStandards Act (FSSA).

India : According to FSSAI, The presence of commonly used starter culture of lactic acid producing bacteria such as Lactococcus spp.(earlier known as Streptococcus spp.), Lactobacillus spp. and others used in the preparation in curd and related products shall not beconsidered as probiotics, if the probiotic properties have not been substantiated.

China : China has a lengthy and costlyregistration process, with three main entitiesinvolved in policing the industry. The State Foodand Drug Administration (SFDA) is in charge ofdietary supplements and registration. TheMinistry of Health (MOH), oversees the SFDA andthe approval of new novel food ingredients.Finally, the Administration of Quality SupervisionInspection and Quarantine (AQSIQ) controls allthe imports and exports


Asia Pacific Functional Food Ingredients Market Analysis, By Ingredient Type

Section 5


Asia Pacific Functional Food Ingredients Market Snapshot By Ingredient Type

Revenue, 2016 (E) (US$ Mn) Revenue, 2026 (F) (US$ Mn)CAGR %(2016–2026)

Market Share %, 2026

Vitamins 457.6 839.0 6.2% 16.6%

Minerals 476.8 852.0 6.0% 16.9%

Prebiotics & Dietary Fibre 220.3 342.5 4.5% 6.8%

Probiotics 673.7 1,277.4 6.6% 25.3%

Carotenoids 147.7 209.7 3.6% 4.2%

Protein 362.3 609.2 5.3% 12.1%

Omega 3 Fatty Acids 515.8 913.3 5.9% 18.1%

US $

62

Mn

US $ 381.4 Mn

US $ 375.2 Mn

US $ 122.2Mn

US $

603.7

Mn

US $

246.9

Mn

US $

397.5

Mnz

Source: FMI, 2016

Vitamins Minerals Prebiotics & Dietary Fibre Probiotics Carotenoids Protein Omega 3 Fatty Acids


Asia Pacific Functional Food Ingredients Market Value Share and BPS Analysis By Ingredient Type

Figure 3: Asia Pacific Functional Food Ingredients Market Value Share and BPS Analysis By Ingredient Type, 2016 & 2026

Figure 4: Asia Pacific Functional Food Ingredients Market Y-o-Y Growth by Ingredient Type, 2016–2026

16.0% 16.6%

16.7% 16.9%

7.7% 6.8%

23.6% 25.3%

5.2% 4.2%

12.7% 12.1%

18.1% 18.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 (E) 2026 (F)

Vitamins Minerals

Prebiotics & Dietary Fibre Probiotics

Carotenoids Protein

Omega 3 Fatty Acids

+60

Change in BPS

US$ 2,854.1 Mn US$ 5,043.1 Mn

-60

-100

-90

Note: Sum may not be equal to 100% due to rounding off

+20

+170

Source: FMI, 2016

2016E

2017F

2018F

2019F

2020F

2021F

2022F

2023F

2024F

2025F

2026F

Vitamins 5.4% 5.5% 6.1% 5.8% 6.3% 6.3% 6.3% 6.7% 6.4% 6.7% 6.4%

Minerals 5.7% 5.6% 5.7% 5.8% 5.7% 6.0% 5.8% 5.9% 6.1% 6.2% 6.9%

Prebiotics & DietaryFibre

4.6% 4.3% 4.1% 4.3% 4.7% 4.5% 4.2% 4.5% 4.7% 4.7% 5.0%

Probiotics 6.0% 6.1% 6.2% 6.5% 6.2% 6.4% 6.8% 6.7% 7.0% 6.9% 7.3%

Carotenoids 4.9% 3.5% 3.3% 3.3% 3.6% 3.4% 3.7% 3.6% 3.7% 3.7% 3.9%

Protein 5.2% 5.3% 5.2% 5.0% 5.2% 5.2% 5.4% 5.5% 5.4% 5.5% 5.5%

Omega 3 Fatty Acids 5.1% 5.9% 5.6% 6.0% 5.9% 6.2% 6.3% 6.1% 5.9% 5.9% 5.0%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

8.0%

Source: FMI, 2016


Asia Pacific Functional Food Ingredients Market Analysis & Forecast By Ingredient Type

Table 1: Asia Pacific Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Ingredient Type, 2015–2026

Ingredient Type 2015 A 2016 E 2017 F 2018 F 2019 F 2020 F 2021 F 2026 FCAGR

(2016–2026)

VitaminsValue 434.3 457.6 482.6 512.0 541.7 576.1 612.2 839.0 6.2%

Opportunity 25.0 23.3 25.0 29.4 29.7 34.3 36.2 50.6

MineralsValue 451.0 476.8 503.7 532.5 563.3 595.5 631.4 852.0 6.0%

Opportunity 23.1 25.8 26.9 28.8 30.8 32.2 35.9 54.7


Value 210.6 220.3 229.9 239.3 249.6 261.3 273.1 342.5 4.5%

Opportunity 10.6 9.8 9.6 9.4 10.3 11.7 11.8 16.2

ProbioticsValue 635.5 673.7 714.6 758.8 807.9 858.1 913.4 1277.4 6.6%

Opportunity 31.6 38.1 41.0 44.1 49.1 50.1 55.3 86.9

CarotenoidsValue 140.8 147.7 152.8 158.0 163.2 169.0 174.9 209.7 3.6%

Opportunity 7.6 6.9 5.2 5.1 5.3 5.8 5.8 7.9

ProteinValue 344.4 362.3 381.4 401.3 421.5 443.6 466.7 609.2 5.3%

Opportunity 15.8 17.9 19.1 19.9 20.2 22.1 23.2 31.7

Omega 3 Fatty Acids

Value 490.6 515.8 546.0 576.6 611.0 646.9 687.1 913.3 5.9%

Opportunity 22.6 25.2 30.2 30.6 34.4 35.9 40.2 43.8

Total 2,707.1 2,854.1 3,011.1 3,178.5 3,358.4 3,550.5 3,758.9 5,043.1 5.9%

Source: FMI, 2016


Asia Pacific Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Vitamins segment is expected to witness significant growth in comparison to minerals segment over the forecast period

Figure 5: Asia Pacific Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Vitamins

Segment, 2016─2026Key Takeaways

Vitamins segment is estimated to be valued at US$ 457.6Mn by 2016 and is expected to reach US$ 839.0 Mn by2026 end, expanding at a CAGR of 6.2% over the forecastperiod

Vitamins segment is estimated to create absolute $opportunity of US$ 23.3 Mn in 2016 over 2015. Thissegment is expected to create incremental $ opportunityof US$ 381.4 Mn between 2016 and 2026.

Vitamins

Minerals

Figure 6: Asia Pacific Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn ), by Minerals


Minerals segment is estimated to be valued at US$ 476.8Mn by 2016 and is expected to reach US$ 852.0 Mn by2026 end, expanding at a CAGR of 6.0% over the forecastperiod

This segment is estimated to create absolute $opportunity of US$ 25.8 Mn in 2016 over 2015 and isexpected to create incremental $ opportunity of US$375.2 Mn between 2016 and 2026

43

4.3

61

2.2

83

9.0

+2

3.3

+2

5.0

+2

9.4

+2

9.7

+3

4.3

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

45

1.0

63

1.4

85

2.0

+2

5.8

+2

6.9

+2

8.8

+3

0.8

+3

2.2

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Asia Pacific Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Probiotics segment is expected to exhibit significant growth in comparison to prebiotics & dietary fibre segment over the forecast period

Figure 7: Asia Pacific Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Prebiotics

& Dietary Fibre Segment, 2016─2026Key Takeaways

Prebiotics & dietary fibre segment is estimated to bevalued at US$ 220.3 Mn by 2016 and is expected to reachUS$ 342.5 Mn by 2026 end, expanding at a CAGR of 4.5%over the forecast period



Probiotics

Figure 8: Asia Pacific Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Probiotics


Probiotics segment is estimated to be valued at US$673.7 Mn by 2016 and is expected to reach US$ 1,277.4Mn by 2026 end, expanding at a CAGR of 6.6 % over theforecast period

Probiotics segment is estimated to create absolute $opportunity of US$ 38.1 Mn in 2016 over 2015. Thissegment is expected to create incremental $ opportunityof US$ 603.8 Mn between 2016 and 2026.

21

0.6

27

3.1

34

2.5

+9

.8

+9

.6

+9

.4

+1

0.3

+1

1.7

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

63

5.5

91

3.4

1,2

77

.4

+3

8.1

+4

1.0

+4

4.1

+4

9.1

+5

0.1

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Asia Pacific Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Protein segment is expected to exhibit significant growth in comparison to carotenoids segment over the forecast period

Figure 9: Asia Pacific Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by

Carotenoids Segment, 2016─2026Key Takeaways

Carotenoids segment is estimated to be valued at US$147.7 Mn by 2016 and is expected to reach US$ 209.7Mn by 2026 end, expanding at a CAGR of 3.6% over theforecast period


Carotenoids

Protein

Figure 10: Asia Pacific Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Protein


Protein segment is estimated to be valued at US$ 362.3Mn by 2016 and is expected to reach US$ 609 Mn by2026 end, expanding at a CAGR of 5.3 % over the forecastperiod

Protein segment is estimated to create absolute $opportunity of US$ 17.9 Mn in 2016 over 2015. Thissegment is expected to create incremental $ opportunityof US$ 246.9 Mn between 2016 and 2026.

14

0.8

17

4.9

20

9.7

+6

.9

+5

.2

+5

.1

+5

.3

+5

.8

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

34

4.4

46

6.7

60

9.2

+1

7.9

+1

9.1

+1

9.9

+2

0.2

+2

2.1

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Asia Pacific Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Omega 3 fatty acids segment is anticipated to exhibit above average growth over the forecast period

Figure 11: Asia Pacific Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Omega 3

Fatty Acids Segment, 2016─2026

49

0.6

68

7.1

91

3.3

+2

5.2

+3

0.2

+3

0.6

+3

4.4

+3

5.9

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Key Takeaways

Omega 3 fatty acids segment is estimated to be valued atUS$ 515.8 Mn by 2016 and is expected to reach US$913.3 Mn by 2026 end, expanding at a CAGR of 5.9%over the forecast period


Omega 3 Fatty Acids

Source: FMI, 2016


Asia Pacific Functional Food Ingredients Market Trends : By Ingredient Type

Vitamins

Minerals

Demand for dairy products, especially fluid milk including both fresh and UHT milks is increasing significantly. Increasing traction of e-Commerce is a majorfactor driving growth of the China functional food and ingredients market. Moreover, China has a substantial elderly population, which includes over 210million persons aged over age 60 years, which offers major unmet opportunity for fortified products that are rich in calcium such as yogurt.

Calcium is a major ingredient in functional food products. Japan is expected to witness increase in demand for calcium ingredients owing to deficiency ofcalcium ingredients in Japanese food products. Apart from calcium, other important functional ingredients used in food products are potassium, magnesiumand phosphorous.

In China, major end users of the milk calcium are pharmaceuticals and dairy industries. However, milk calcium is expected to be mainly used in foodproducts such as chewing gum and candy products over the forecast period.

Increasing level of awareness among end users, rising health concerns and growing ageing population is driving overall vitaminconsumption in the region. Change in lifestyle of middle class population with increasing disposable income are factors also supportingthis trend in countries such as India, Indonesia and China.

The market is witnessing increased demand for vitamin D and vitamin C to promote bone health and reinforce immune system againstcommon cold and cough

Japan is considered the largest market for vitamins, owning to its vast middle-age and elderly population, followed by China. In Thailand,vitamin E consumption is increasing amongst Thai women, owning to its antioxidant properties and ability to slow down the ageingprocess.



Probiotics

Omega 3 Fatty Acids

Omega-3 fatty acid ingredients are sourced primarily from fish oil. Demand for these products is increasing, including for products such as dietarysupplements ,functional foods and pharmaceuticals

Companies developing omega-3 fatty acids are producing omega 3 fatty acids from alternative sources, which are of high quality and rich in DHA. Inaddition, companies are also developing omega 3 fatty acids that are rich oil that contain combination of EPA/DHA.

Biotech company namely Martek Biosciences Corporation, which is a division of Koninklijke DSM N.V., produces DHA (Docosahexaenoic acid) oil from microalgae and alsoarachidonic acid (omega-6 fatty acid) which is primarily used in infant formula. Moreover, Koninklijke DSM N.V. plans to develop EPA/DHA combination oil, produced using afermentation process that can be used as an alternative to fish source-derived omega 3 fatty acids.

Rising health conscious consumers and growing awareness about probiotics are factors expected to fuel demand for probiotics.Companies are increasingly manufacturing foods that incorporate probiotic bacteria, especially dairy-based products. Probiotic dairyproducts such as yogurts containing bacteria strains such as Lacidophilus and Bifidobacterium, contribute significantly to revenue of theprobiotic foods segment.

The most common types of probiotics are Lactic acid bacteria, and include specie from the Lactobacillus, Pediococcus andBifidobacterium genera. Moreover, growing consumer awareness in Asia Pacific region, especially in Japan, about gout and low purinediet is prompting various companies to develop dairy-based products containing probiotics.

In April 2015 for instance, Meiji Holdings Co., Ltd. launched PA-3 yogurt range, which includes probiotics namely Lactobacillus gasseri PA-3 – aprobiotic lactic acid bacteria strain that metabolises purine and prevents formation of uric acid, thus preventing gout disease


In Japan, demand for prebiotic oligosaccharides is increasing due to rising applications in breakfast cereals, cereal bars, baked goods,baby food and various dairy products. Among all types of oligosaccharides, demand for starch oligosaccharides is highest currently.

The main commercial oligosaccharides used as prebiotic agents includes inulin, isomalto-oligosaccharides, lactulose,Fructooligosaccharides, galacto-oligosaccharides, xylo oligosaccharides and soybean oligosaccharides

GOS (galacto-oligosaccharides) find application in a wide range of food products such as sweeteners, sugar substitutes and bulkingagents. In addition, these are used in a range of product such as bread, ‘sports’ drinks, jams, fermented milk products and confectioneryproducts.

Moreover, other type of prebiotic widely used is lactulose, which is used in a number of food and beverage applications with FOSHU(Foods for Specified Health Use) status

Another prebiotic oligosaccharide namely IMO (isomalto-oligosaccharides) is used in various food applications. In Japan, the volume ofIMOs manufactured is estimated to be approximately three times greater than for either GOS or FOS. In addition, Lactosucrose is a non-digestible trisaccharide used in a range of drinks, confectioneries, and as a table sugar.

Asia Pacific Functional Food Ingredients Market : By Ingredient Type

Prebiotic & Dietary Fiber


Application of plant-based protein is the major trend being witnessed in the Asia Pacific region. Among plant-based proteins, soyaprotein is the most popular ingredient used to formulate protein enriched foods in order to meet the rising consumer demand forprotein-based functional food products. Soya protein ingredients contain higher proportion of essential amino acids such as lysine andtryptophan as compared to other plant-derived proteins.

Most protein functional foods products are usually formulated with a blend of soya flour or soya protein isolates and corn. By usingeither soya protein concentrates or soya protein isolates, the nutritional value of functional foods can be increased significantly.

Furthermore, soy protein is considered a cost-effective solution, due to which manufacturers are able to reduce production costs perunit of protein when compared to other sources of protein such as dairy, corn and animal-derived

Moreover, ingredient providers are offering soy-based protein ingredients, which are used in a diverse range of applications

Archer Daniels Midland Company offers versatile soya proteins used for diverse applications, which include CLARISOY isolated soya protein rangefor protein fortification of beverage systems and Textura range of protein crisps that can be used in applications such as confectionery, desserts,snacks etc. Although whey still appears to be the dominant protein source in protein-enriched beverages, popularity of blending whey proteinwith other proteins such as soya and casein is increasing among manufacturers.


Protein


Major demand for carotenoids is arising from functional food products manufacturers owing to health functionalities (vitamins, anti-oxidants) as well as coloring properties. Presently, beta-carotene is the preferred choice for yellow/orange hues for functional foodproducers and it also imparts a number of health benefits in humans.

Divis Laboratories Limited developed a range of beta-carotene emulsions, beadlet, spray-dried powders and suspensions for nutritionalbars/fortified oils and fats and energy drinks

As various pH stable carotenoids are available in different emulsion forms, it will continue to be the first choice for manufacturers foryellow/orange and red colour. Dairy and beverages products are the most potential segment for carotenoid functional ingredientsmanufacturers.

Beta-carotene is expected to account for significant market share as recent regulations in China bans annatto residues in whey, which is apotential additive in most dairy products

Asia Pacific Functional Food Ingredients Market : Trends

Carotenoids


Asia Pacific Functional Food Ingredients Market Analysis, By Application

Section 6


Asia Pacific Functional Food Ingredients Market Snapshot By Application

Revenue, 2016 (E) (US$ Mn) Revenue, 2026 (F) (US$ Mn)CAGR %

(2016–2026)Market Share %, 2026

Beverages 735.0 1,304.2 5.9% 25.9%

Dairy & dairy-based products 789.6 1,473.1 6.4% 29.2%

Infant Food702.9 1,215.4 5.6% 24.1%

Bakery & Confectionery 626.6 1,050.4 5.3% 20.8%

US$ 569.2Mn

US$ 683.5 Mn

US$ 512.5Mn

US$ 423.8Mn

Source: FMI, 2016

Beverages Dairy & dairy-based products Bakery & ConfectioneryInfant Food


Asia Pacific Functional Food Ingredients Market Value Share and BPS Analysis By Application

Figure 12: Asia Pacific Functional Food Ingredients Market Value Share and BPS Analysis By Application, 2016 & 2026

Figure 13: Asia Pacific Functional Food Ingredients Market Y-o-Y Growth by Application, 2016–2026

25.8% 25.9%

27.7% 29.2%

24.6% 24.1%

22.0% 20.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 (E) 2026 (F)

Beverages Dairy & Dairy Based Products

Infant Food Bakery & Confectionery

+10

Change in BPS

US$ 2,854.1 Mn US$ 5,043.1 Mn

-120

-50

+150


Source: FMI, 2016

2016E

2017F

2018F

2019F

2020F

2021F

2022F

2023F

2024F

2025F

2026F

Beverages 5.6% 5.7% 5.7% 5.8% 5.8% 6.0% 5.9% 6.0% 6.1% 6.3% 5.8%

Dairy & Dairy BasedProducts

6.0% 6.2% 6.3% 6.2% 6.2% 6.3% 6.5% 6.6% 6.6% 6.7% 6.7%

Infant Food 5.6% 5.6% 5.7% 5.7% 5.5% 5.6% 5.5% 5.5% 5.4% 5.7% 6.1%

Bakery & Confectionery 4.4% 4.2% 4.4% 4.8% 5.3% 5.5% 5.9% 5.8% 5.9% 5.5% 5.8%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

Source: FMI, 2016


Asia Pacific Functional Food Ingredients Market Analysis & Forecast By Application

Table 2: Asia Pacific Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Application, 2015–2026


(2016–2026)

BeveragesValue 696.1 735.0 776.7 820.7 868.3 918.6 973.3 1,304.2 5.9%

Opportunity 36.0 38.9 41.7 43.9 47.6 50.4 54.7 71.4

Dairy & dairy-based products

Value 744.9 789.6 838.8 891.6 947.0 1,006.0 1,069.2 1,473.1 6.4%

Opportunity 39.5 44.7 49.3 52.8 55.4 59.0 63.2 92.8

Infant FoodValue 665.7 702.9 742.3 784.5 828.9 874.1 922.9 1,215.4 5.6%

Opportunity 32.9 37.1 39.4 42.2 44.4 45.2 48.9 70.3


Value 600.4 626.6 653.2 681.7 714.3 751.8 793.5 1,050.4 5.3%

Opportunity 27.9 26.3 26.6 28.5 32.6 37.5 41.6 57.2

Total 2,707.1 2,854.1 3,011.1 3,178.5 3,358.4 3,550.5 3,758.9 5,043.1 5.9%

Source: FMI, 2016


Asia Pacific Functional Food Ingredients Market Analysis & Forecast By Application Dairy & dairy-based products segment is expected to exhibit significant growth in comparison to beverages segment over the forecast period

Figure 14: Asia Pacific Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by

Beverages Segment, 2016─2026Key Takeaways

Beverages segment is estimated to be valued at US$735.0 Mn by 2016 and is expected to reach US$ 1,304.2Mn by 2026 end, expanding at a CAGR of 5.9% over theforecast period

Beverages segment is estimated to create absolute $opportunity of US$ 38.9 Mn in 2016 over 2015. Thissegment is expected to create incremental $ opportunityof US$ 569.1 Mn between 2016 and 2026.

Beverages


Figure 15: Asia Pacific Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn ), by Dairy &

dairy-based products Segment, 2016─2026Key Takeaways

Dairy & dairy-based products segment is estimated to bevalued at US$ 789.6 Mn by 2016 and is expected to reachUS$ 1,473.1 Mn by 2026 end, expanding at a CAGR of6.4% over the forecast period


69

6.1

97

3.3

1,3

04

.2

+3

8.9

+4

1.7

+4

3.9

+4

7.6

+5

0.4

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

74

4.9

1,0

69

.2

1,4

73

.1

+4

4.7

+4

9.3

+5

2.8

+5

5.4

+5

9.0

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Asia Pacific Functional Food Ingredients Market Analysis & Forecast By Application Infant food segment is expected to exhibit significant growth in comparison to bakery & confectionery segment over the forecast period

Figure 16: Asia Pacific Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Infant

Food Segment, 2016─2026Key Takeaways

Infant food segment is estimated to be valued at US$702.9 Mn by 2016 and is expected to reach US$ 1,215.4Mn by 2026 end, expanding at a CAGR of 5.6% over theforecast period

Infant food segment is estimated to create absolute $opportunity of US$ 37.1 Mn in 2016 over 2015. Thissegment is expected to create incremental $ opportunityof US$ 512.5 Mn between 2016 and 2026.

Infant Food


Figure 17: Asia Pacific Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn ), by Bakery &

Confectionery Segment, 2016─2026Key Takeaways

Bakery & confectionery segment is estimated to bevalued at US$ 626.6 Mn by 2016 end and is expected toreach US$ 1,050.4 Mn by 2026 end, expanding at a CAGRof 5.3 % over the forecast period


66

5.7

92

2.9

1,2

15

.4

+3

7.1

+3

9.4

+4

2.2

+4

4.4

+4

5.2

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

60

0.4

79

3.5

1,0

50

.4

+2

6.3

+2

6.6

+2

8.5

+3

2.6

+3

7.5

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Asia Pacific Functional Food Ingredients Market Trends : By Application

Beverages

Dairy & Dairy-based Products

In Asia Pacific region, dairy products that include probiotic ingredients witness maximum number of launches. Among the dairy product segment,spoonable yogurt and yogurt drinks account for highest number of probiotic product launches.

In 2012 approximately 45% of probiotic products launched were in Asia Pacific region

Probiotic yogurt is witnessing strong growth among the various dairy application segments of the functional food ingredients market. Variousmanufacturers are developing dairy products, which contain probiotic cultures such as Lactobacillus and Bifidobacterium bacteria. Moreover, therising trend of development of dairy products such as yogurts fortified with calcium and oligosaccharides is expected to continue over the forecastperiod.

In October 2013, Abbott Laboratories launched calciSure in order to meet the bone health related needs of consumers in Asia, which include blend of nutrients such as calcium,vitamins and magnesium and fructooligosaccharides to enable maintaining of a healthy digestive system

Demand for beverages with functional ingredients in increasing significantly in Asia Pacific region, which include countries such as Indiaand China. Due to growing demand for healthy alternatives, beverage manufacturers are developing new products that target specifichealth conditions such as weight management, stress relief etc.

Asia Pacific functional food ingredients market is expected to exhibit significant growth owing to rising number of product categoriessuch as energy shots, enhanced water and juices

The most upcoming trend in the Asia Pacific region is increasing uptake of functional ingredients in the form of beverage shot, typicallydelivered in a small, single-serve two or three ounce bottle, which is portable and also contains various nutrients in order to perform aspecific function. These energy shots typically contain functional ingredients such as B vitamins meant to provide various health benefits.

In Japan, shots are popular for taking specific nutrients and also by consumers to try out new functional ingredients. Shot products are usuallyplaced at the point-of-purchase to enable quick grab-and-go ease.


Asia Pacific Functional Food Ingredients Market Trends :By Application

Infant Food


Increasing demand for convenience food coupled with increasing introduction of bakery and confectionery products in the region is inturn fuelling demand for functional food ingredients such as Omega 3 fatty acids

Omega 3 ingredients are used in bakery products in order to increase shelf life and also to prevent unpleasant odour in these products.Moreover, these ingredients are also added owing to various associated functionalities such as prevention of diseases such as cancer etc.

For instance, Koninklijke DSM N.V. manufactures marine-based omega 3 ingredient named Meg 3, which is used by Allied Bakeries for Kingsmill50/50 bread in order to improve shelf life and also to prevent odour

Major ingredient usually added to infant food is probiotics, and are primarily added to infant formula due to beneficial effects on thehealth of infants such as reduction of various respiratory issues. Various bacteria usually added to infant food include lactobacillus andbifi dobacterium. The purpose of addition of these bacteria is to strengthen the immune system of infants aged between 1and 3 years.

In February 2015, Nestlé SA and ingredient supplier BioGaia announced the launch of a new toddler formula, which includes patented probioticlactobacillius reutri protectis. This product is primarily sold in emerging markets such as India and China.


Asia Pacific Functional Food Ingredients Market Attractiveness Analysis By Application & Ingredient Type

Figure 18: Asia Pacific Functional Food Ingredients Market Attractiveness Analysis By Ingredients Type, 2016–2026

Figure 19: Asia Pacific Functional Food Ingredients Market Attractiveness Analysis By Application, 2016–2026

Vitamins

Minerals


Probiotics

CarotenoidsProtein

Omega 3 Fatty Acids

Low Medium High

Low

Med

ium

Hig

h

Gro

wth

Ind

ex

(20

16–

2026

)

Total Index(Absolute Index + CAGR Index)

Bubble Size represents market

size for 2026 (F)

Beverages

Dairy & Dairy Based

Products

Infant Food


Low Medium High

Low

Med

ium

Hig

h

Gro

wth

Ind

ex

(20

16–

2026

)



size for 2026 (F)

Source: FMI, 2016 Source: FMI, 2016


Asia Pacific Functional Food Ingredients Market Analysis, By Region

Section 7


Asia Pacific Functional Food Ingredients Market Snapshot

Asia Pacific Functional Food Ingredients Market

Singapore

2016 (E): US$ 252.3

Mn

CAGR: 4.6%

2026 (F): US$ 395.9

Mn

2015 (A): US$ 241.2

Mn

Note: CAGR is calculated from 2016 to 2026

India

2016 (E): US$ 425.3

Mn

CAGR: 5.6%

2026 (F): US$ 736.3

Mn

2015 (A): US$ 403.4

Mn

Japan

2016 (E): US$ 903.6

Mn

CAGR: 6.9%

2026 (F): US$

1,767.6 Mn

2015 (A): US$ 849.8

Mn

China

2016 (E): US$ 544.0

Mn

CAGR: 6.3%

2026 (F): US$

1,002.1 Mn

2015 (A): US$ 515.4

Mn

Thailand

2016 (E): US$ 137.6

Mn

CAGR: 4.2%

2026 (F): US$ 208.3

Mn

2015 (A): US$ 132.1

Mn

Malaysia

2016 (E): US$ 337.9

Mn

CAGR: 4.8%

2026 (F): US$ 538.6

Mn

2015 (A): US$ 323.5

Mn

Indonesia

2016 (E): US$ 253.4

Mn

CAGR: 4.5%

2026 (F): US$ 394.4

Mn

2015 (A): US$ 241.7

Mn

Source: FMI, 2016


Asia Pacific Functional Food Ingredients Market Value Share and BPS Analysis By Country

Figure 20: Asia Pacific Functional Food Ingredients Market Value Share and BPS Analysis By Country, 2016 & 2026

Figure 21: Asia Pacific Functional Food Ingredients Market Y-o-Y Growth by Country, 2016–2026

14.9% 14.6%

31.7% 35.1%

19.1%19.9%

4.8%4.1%

11.8% 10.7%

8.9% 7.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 (E) 2026 (F)

Singapore India Japan China

+340

Change in BPS

US$ 2,854.1 Mn US$ 5,043.1 Mn

-110

-110

-70

+80


-30

Source: FMI, 2016

2016E 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F

Singapore 4.6% 4.2% 4.5% 4.6% 4.6% 4.7% 4.8% 4.9% 4.9% 4.9% 4.0%

India 5.4% 5.6% 5.3% 5.4% 5.6% 5.6% 6.0% 5.8% 6.0% 5.7% 5.5%

Japan 6.3% 6.6% 6.5% 6.4% 6.5% 7.0% 6.6% 7.0% 6.7% 7.6% 8.4%

China 5.5% 5.8% 5.8% 6.2% 5.8% 6.1% 6.4% 6.0% 6.5% 6.2% 8.0%

Thailand 4.1% 3.3% 4.4% 5.2% 5.3% 4.5% 4.6% 3.9% 5.1% 3.7% 2.4%

Malaysia 4.5% 4.5% 4.6% 5.0% 4.7% 4.9% 5.1% 5.0% 5.2% 5.1% 3.5%

Indonesia 4.8% 4.3% 4.9% 4.3% 5.6% 4.5% 5.3% 5.9% 5.0% 4.5% 1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

Source: FMI, 2016


Asia Pacific Functional Food Ingredients Market Analysis & Forecast By Country

Table 3: Asia Pacific Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity by Country, 2015–2026


(2016–2026)

SingaporeValue 241.2 252.3 262.9 274.6 287.1 300.4 314.6 395.9 4.6%

Opportunity 9.8 11.1 10.6 11.8 12.5 13.2 14.2 15.3

IndiaValue 403.4 425.3 449.3 473.3 498.7 526.5 555.9 736.3 5.6%

Opportunity 17.7 21.9 24.0 24.0 25.4 27.8 29.4 38.3

JapanValue 849.8 903.6 963.5 1,026.3 1,092.1 1,163.1 1,244.6 1,767.6 6.9%

Opportunity 52.8 53.8 59.9 62.8 65.8 71.0 81.4 136.5

ChinaValue 515.4 544.0 575.7 609.2 647.2 684.4 726.5 1,002.1 6.3%

Opportunity 27.0 28.6 31.7 33.5 38.0 37.3 42.1 74.6

ThailandValue 132.1 137.6 42.1 48.4 156.2 164.4 171.8 208.3 4.2%

Opportunity 4.6 5.5 4.6 6.3 7.7 8.2 7.4 4.9

MalaysiaValue 323.5 337.9 353.2 369.3 387.9 406.2 426.3 538.6 4.8%

Opportunity 15.0 14.4 15.3 16.1 18.6 18.3 20.1 18.3

IndonesiaValue 241.7 253.4 264.4 277.3 289.2 305.5 319.3 394.4 4.5%

Opportunity 9.3 11.7 10.9 12.9 11.9 16.3 13.8 3.8Total 2,707.1 2,854.1 3,011.1 3,178.5 3,358.4 3,550.5 3,758.9 5,043.1 5.9%

Source: FMI, 2016


Asia Pacific Functional Food Ingredients Market Attractiveness Analysis By Country

Figure 22: Asia Pacific Functional Food Ingredients Market Attractiveness Analysis By Country, 2016–2026

Figure indicates market attractiveness analysis by country for2016–2026

Bubble size represents total incremental opportunity index andY-axis depicts market share index for 2016–2026

Among all countries, Japan is expected to register comparativelyhigher CAGR during the forecast period

Rising demand for functional food products registered as FOSHU isexpected to fuel growth of the functional food ingredients marketin Japan. Additionally, other factors such as increasing demand forfunctional beverages with amino acids is expected to contribute togrowth of the functional food ingredients market in the countryduring the forecast period.

In 2016, Japan is estimated to account for higher value share of31.7% value share of the Asia Pacific functional food ingredientsmarket and is expected to gain significant market share by 2026end

The market in China is projected to register second-highest CAGRof 6.3% in terms of value over the forecast period

Increasing participation of ingredient providers in various

exhibitions to showcase functional ingredients portfolio is expected

to boost demand for functional food ingredients among various

end consumers

Key Takeaways

Singapore

India

JapanChina

ThailandMalaysia

Indonesia

Low Medium High

Low

Med

ium

Hig

h

Gro

wth

Ind

ex

(20

16–

2026

)



size for 2026 (F)

Source: FMI, 2016


Singapore Functional Food Ingredients Market Analysis

Section 8


Singapore Functional Food Ingredients MarketSingapore functional food ingredients market is expected to exhibit significant growth during the forecast period

Figure 23: Singapore Functional Food Ingredients Market Value (US$ Mn), 2015–2026

Figure 24: Singapore Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), 2016–2026

Key Takeaways

The functional food ingredients market in Singapore is estimated to be valued at US$ 252.3 Mn by 2016 and is expected to reach US$395.9 Mn by 2026 end, expanding at a CAGR of 4.6% over the forecast period

The functional food ingredients market in the country is estimated to represent absolute $ opportunity of US$ 11.1 Mn in 2016 over2015, and is expected to represent incremental $ opportunity of US$ 143.6 Mn between 2016 and 2026

24

1.2

25

2.3

26

2.9

27

4.6

28

7.1

30

0.4

31

4.6

39

5.9

0

50

100

150

200

250

300

350

400

450

2015 (A)2016 (E) 2017 (F) 2018 (F) 2019 (F) 2020 (F) 2021 (F) 2026 (F)

Val

ue

(U

S$ M

n)

Value

24

1.2

31

4.6

39

5.9

+1

1.1

+1

0.6

+1

1.8

+1

2.5

+1

3.2

2015 (A) 2016 (E) 2017 (F) 2018 (F) 2019 (F) 2020 (F) 2021 (F) 2026 (F)

US$

Mn



Singapore Functional Food Ingredients Market Analysis & Forecast By Ingredient TypeProbiotics segment is expected to remain dominant in terms of value growth over the forecast period, owing to increasing demand for yogurt containing probiotics

Table 4: Singapore Functional Food Ingredients Market Value (US$ Mn) and absolute $ opportunity (US$ Mn) by Ingredient Type, 2015–2026


(2016–2026)

VitaminsValue 33.9 35.6 37.2 39.0 40.9 43.0 45.1 58.1 5.0%

Opportunity 1.5 1.7 1.6 1.8 1.9 2.0 2.2 2.5

MineralsValue 43.4 45.3 47.3 49.5 51.7 54.2 56.8 71.3 4.6%

Opportunity 1.7 1.9 2.0 2.2 2.2 2.4 2.6 2.7


Value 19.1 19.8 20.5 21.2 22.0 22.8 23.6 28.1 3.6%

Opportunity 0.6 0.7 0.6 0.7 0.8 0.8 0.9 0.6


Opportunity 2.8 3.3 3.1 3.7 4.0 4.0 4.2 5.6


Opportunity 0.2 0.2 0.3 0.3 0.3 0.2 0.2 0.2

ProteinValue 31.2 32.4 33.7 35.0 36.4 37.9 39.5 48.3 4.1%

Opportunity 1.1 1.2 1.3 1.3 1.4 1.5 1.5 1.6

Omega 3 Fatty Acids

Value 43.5 45.5 47.1 48.9 50.8 53.0 55.7 69.2 4.3%

Opportunity 1.9 2.0 1.6 1.7 1.9 2.2 2.6 2.1 Total 241.2 252.3 262.9 274.6 287.1 300.4 314.6 395.9 4.6%

Source: FMI, 2016


Singapore Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Vitamins segment is expected to exhibit significant growth in comparison to minerals segment over the forecast period

Figure 25: Singapore Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Vitamins




Vitamins

Minerals

Figure 26: Singapore Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn ), by Minerals




33

.9

45

.1

58

.1

+1

.7

+1

.6

+1

.8

+1

.9

+2

.0

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

43

.4

56

.8

71

.3

+1

.9

+2

.0

+2

.2

+2

.2

+2

.4

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Singapore Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Probiotics segment is expected to exhibit significant growth in comparison to prebiotics & dietary fibre segment over the forecast period

Figure 27: Singapore Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Prebiotics


Prebiotics & dietary fibre segment is estimated to bevalued at US$ 19.8 Mn by 2016 and is expected to reachUS$ 28.1 by 2026 end, expanding at a CAGR of 3.6% overthe forecast period

This segment is estimated to create absolute $opportunity of US$ 0.7 Mn in 2016 over 2015 and isexpected to create incremental $ opportunity of US$ 8.3Mn between 2016 and 2026


Probiotics

Figure 28: Singapore Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Probiotics


Probiotics segment is estimated to be valued at US$ 64.0Mn by 2016 and is expected to reach US$ 108.5 Mn by2026 end, expanding at a CAGR of 5.4 % over the forecastperiod


19

.1

23

.6

28

.1

+0

.7

+0

.6

+0

.7

+0

.8

+0

.8

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

60

.7

82

.9

10

8.5

+3

.3

+3

.1

+3

.7

+4

.0

+4

.0

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Singapore Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Protein segment is expected to exhibit significant growth in comparison to carotenoids segment over the forecast period

Figure 29: Singapore Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by


Carotenoids segment is estimated to be valued at US$9.7 Mn by 2016 and is expected to reach US$ 12.4 Mn by2026 end, expanding at a CAGR of 2.5% over the forecastperiod


Carotenoids

Protein

Figure 30: Singapore Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Protein


Protein segment is estimated to be valued at US$ 32.4Mn by 2016 and is expected to reach US$ 48.3 Mn by2026 end, expanding at a CAGR of 4.1% over the forecastperiod


9.5

11

.0

12

.4

+0

.2

+0

.3

+0

.3

+0

.3

+0

.2

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

31

.2

39

.5

48

.3

+1

.2

+1

.3

+1

.3

+1

.4

+1

.5

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Singapore Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Omega 3 fatty acids segment is expected to exhibit above average growth over the forecast period

Figure 31: Singapore Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Omega 3


43

.5

55

.7

69

.2

+2

.0

+1

.6

+1

.7

+1

.9

+2

.2

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Key Takeaways

Omega 3 fatty acids segment is estimated to be valued atUS$ 45.5 Mn by 2016 and is expected to reach US$ 69.2Mn by 2026 end, expanding at a CAGR of 4.3% over theforecast period


Omega 3 Fatty Acids

Source: FMI, 2016


Singapore Functional Food Ingredients Market Analysis & Forecast By Application

Table 5: Singapore Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Application, 2015–2026

Application 2015 A 2016 E 2017 F 2018 F 2019 F 2020 F 2021 F 2026 FCAGR

(2016–2026)

BeveragesValue 65.2 68.2 71.2 74.3 77.8 81.6 85.7 110.2 4.9%

Opportunity 2.7 3.0 3.0 3.2 3.5 3.8 4.1 4.6


Value 75.4 79.5 83.5 88.1 92.7 97.6 102.9 134.8 5.4%

Opportunity 3.7 4.1 4.0 4.6 4.6 4.9 5.3 6.5

Infant FoodValue 57.8 60.3 62.6 64.9 67.6 70.1 72.9 85.6 3.6%

Opportunity 2.3 2.5 2.3 2.4 2.6 2.6 2.8 2.3


Value 42.8 44.3 45.6 47.2 49.1 51.0 53.1 65.3 4.0%

Opportunity 1.2 1.5 1.3 1.6 1.8 2.0 2.1 1.9

Total 241.2 252.3 262.9 274.6 287.1 300.4 314.6 395.9 4.6%


Singapore Functional Food Ingredients Market Analysis & Forecast By Application Dairy & dairy-based products segment is expected to exhibit significant growth in comparison to beverages segment over the forecast period

Figure 32: Singapore Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by


Beverages segment is estimated to be valued at US$ 68.2Mn by 2016 and is expected to reach US$ 110.2 Mn by2026 end, expanding at a CAGR of 4.9% over the forecastperiod


Beverages


Figure 33: Singapore Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn ), by Dairy &


Dairy & dairy-based products segment is estimated to bevalued at US$ 79.5 Mn by 2016 and is expected to reachUS$ 134.8 Mn by 2026 end, expanding at a CAGR of 5.4%over the forecast period


65

.2

85

.7

11

0.2

+3

.0

+3

.0

+3

.2

+3

.5

+3

.8

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

75

.4

10

2.9

13

4.8

+4

.1

+4

.0

+4

.6

+4

.6

+4

.9

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Singapore Functional Food Ingredients Market Analysis & Forecast By Application Bakery & confectionery segment is expected to exhibit significant growth in comparison to infant food segment over the forecast period

Figure 34: Singapore Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Infant


Infant food segment is estimated to be valued at US$60.3 Mn by 2016 and is expected to reach US$ 85.6 Mnby 2026 end, expanding at a CAGR of 3.6% over theforecast period


Infant Food


Figure 35: Singapore Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn ), by Bakery &


Bakery & confectionery segment is estimated to bevalued at US$ 44.3 Mn by 2016 and is expected to reachUS$ 65.3 Mn by 2026 end, expanding at a CAGR of 4.0%over the forecast period


57

.8

72

.9

85

.6

+2

.5

+2

.3

+2

.4

+2

.6

+2

.6

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

42

.8

53

.1

65

.3

+1

.5

+1

.3

+1

.6

+1

.8

+2

.0

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Singapore Functional Food Ingredients Market Attractiveness Analysis By Application & Ingredient Type

Figure 36: Singapore Functional Food Ingredients Market Attractiveness Analysis By Ingredients Type, 2016–2026

Figure 37: Singapore Functional Food Ingredients Market Attractiveness Analysis By Application, 2016–2026

Vitamins

Minerals


Probiotics

CarotenoidsProtein

Omega 3 Fatty Acids

Low Medium High

Low

Med

ium

Hig

h

Gro

wth

Ind

ex

(20

16–

2026

)



size for 2026 (F)

Beverages


Infant Food


Low Medium High

Low

Med

ium

Hig

h

Gro

wth

Ind

ex

(20

16–

2026

)



size for 2026 (F)



Various ingredients providers are setting up new production plants in Singapore, for production of various ingredients for applicationssuch as nutritional drinks, infant food and sports nutrition products

In November 2012 for instance, Vitablend Asia Pacific Pte Ltd. opened a new state-of-the-art manufacturing plant in Singapore in order to caterto growing customer base in the Asia Pacific region. This company produces antioxidants, nutritional premixes and functional blends primarily forinfant and clinical nutrition at this facility.

Moreover, companies such as CP Kelco, Ingredion Incorporated and Koninklijke DSM N.V. plan to set up a new research centres inSingapore in order to cater to various needs of end user industries

In June 2014 Ingredion Incorporated announced plans for expansion of its Asia Pacific headquarters in Singapore. The new space will include astate-of-the-art research and development centre in order to cater to demand for various ingredient solutions.

Singapore Functional Food Ingredients Market Trends

Singapore


India Functional Food Ingredients Market Analysis

Section 9


India Functional Food Ingredients MarketFunctional food ingredients market in India is expected to exhibit significant market growth, owing to rising demand for ready-to-eat-food products with functional ingredients

Figure 38: India Functional Food Ingredients Market Value (US$ Mn), 2015–2026

Figure 39: India Functional Food Ingredients MarketAbsolute $ Opportunity (US$ Mn), 2016–2026

Key Takeaways

The functional food ingredients market in India is estimated to be valued at US$ 425.3 Mn by 2016 and is expected to reach US$ 736.3Mn by 2026 end, expanding at a CAGR of 5.6% over the forecast period

The functional food ingredients market in India is expected to represent absolute $ opportunity of US$ 21.9 Mn in 2016 over 2015 and isexpected to represent incremental $ opportunity of US$ 311.0 Mn between 2016 and 2026

40

3.4

42

5.3

44

9.3

47

3.3

49

8.7

52

6.5

55

5.9

73

6.3

0

100

200

300

400

500

600

700

800

2015 (A)2016 (E) 2017 (F) 2018 (F) 2019 (F) 2020 (F) 2021 (F) 2026 (F)

Val

ue

(U

S$ M

n)

Value

40

3.4

55

5.9

73

6.3

+2

1.9

+2

4.0

+2

4.0

+2

5.4

+2

7.8

2015 (A) 2016 (E) 2017 (F) 2018 (F) 2019 (F) 2020 (F) 2021 (F) 2026 (F)

US$

Mn



India Functional Food Ingredients Market Analysis & Forecast By Ingredient TypeProbiotics segment is expected to remain dominant in terms of value over the forecast period, due to increasing application of probiotics in beverages and infant formula

Table 6: India Functional Food Ingredients Market Value (US$ Mn) and absolute $ opportunity (US$ Mn) by Ingredient Type, 2015–2026


(2016–2026)

VitaminsValue 48.7 51.6 54.6 57.8 61.1 64.9 68.8 93.4 6.1%

Opportunity 2.4 2.9 3.0 3.2 3.3 3.8 3.9 5.6

MineralsValue 64.3 67.6 71.4 75.4 79.3 83.7 88.3 116.7 5.6%

Opportunity 2.6 3.2 3.8 4.1 3.9 4.4 4.6 6.3


Value 23.9 24.8 25.7 26.6 27.4 28.3 29.3 34.9 3.5%

Opportunity 0.7 1.0 0.8 0.9 0.9 0.9 0.9 1.4


Opportunity 4.9 5.2 6.2 6.9 7.4 8.6 8.9 12.5


Opportunity 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.3

ProteinValue 44.0 45.9 48.2 50.4 52.6 55.1 57.7 73.5 4.8%

Opportunity 1.5 2.0 2.2 2.2 2.3 2.5 2.6 3.5

Omega 3 Fatty Acids

Value 121.0 128.4 136.1 142.6 150.1 157.5 165.8 214.3 5.3%


Source: FMI, 2016


India Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Vitamins segment is expected to exhibit significant growth in comparison to minerals segment over the forecast period

Figure 40: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Vitamins


Vitamins segment is estimated to be valued at US$ 51.6Mn by 2016 and is expected US$ 93.4 Mn by 2026 end,expanding at a CAGR of 6.1% over the forecast period


Vitamins

Minerals

Figure 41: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Minerals




48

.7

68

.8

93

.4

+2

.9

+3

.0

+3

.2

+3

.3

+3

.8

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

64

.3

88

.3

11

6.7

+3

.2

+3

.8

+4

.1

+3

.9

+4

.4

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


India Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Probiotics segment is expected to exhibit significant market growth in comparison to prebiotics & dietary fibre segment during the forecast period

Figure 42: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Prebiotics &

Dietary Fibre Segment, 2016─2026Key Takeaways

Prebiotics & dietary fibre segment is estimated to bevalued at US$ 24.8 Mn in 2016, and expected to reachUS$ 34.9 Mn by 2026 end, expanding at a CAGR of 3.5%over the forecast period



Probiotics

Figure 43: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Probiotics


Probiotics segment is estimated to be valued at US$ 98.8Mn by 2016 and is expected to reach US$ 193.0 Mn by2026 end, expanding at a CAGR of 6.9% over the forecastperiod


23

.9

29

.3

34

.9

+1

.0

+0

.8

+0

.9

+0

.9

+0

.9

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

93

.6

13

6.9

19

3.0

+5

.2

+6

.2

+6

.9

+7

.4

+8

.6

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


India Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Protein segment is expected to exhibit significant growth in comparison to carotenoids segment over the forecast period

Figure 44: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Carotenoids


Carotenoids segment is estimated to be valued at US$8.0 Mn by 2016, and is expected to reach US$ 12.4 Mnby 2026 end, expanding at a CAGR of 2.5% over theforecast period


Carotenoids

Protein

Figure 45: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Protein Segment,

2016─2026Key Takeaways

Protein segment is estimated to be valued at US$ 45.9Mn, and expected to reach US$ 73.5 Mn by 2026 end,expanding at a CAGR of 4.8% over the forecast period


7.8

9.1

10

.4

+0

.2

+0

.2

+0

.2

+0

.2

+0

.2

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

44

.0

57

.7

73

.5

+2

.0

+2

.2

+2

.2

+2

.3

+2

.5

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


India Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Omega 3 fatty acids segment is expected to exhibit above average growth in the functional food ingredients market in India over the forecast period

Figure 46: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Omega 3 Fatty

Acids Segment, 2016─2026

12

1.0

16

5.8

21

4.3

+7

.4

+7

.6

+6

.5

+7

.5

+7

.4

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Key Takeaways



Omega 3 Fatty Acids

Source: FMI, 2016


India Functional Food Ingredients Market Analysis & Forecast By Application

Table 7: India Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Application, 2015–2026


(2016–2026)

BeveragesValue 109.0 115.1 121.7 127.9 135.1 142.8 151.2 205.4 6.0%

Opportunity 4.8 6.1 6.6 6.2 7.2 7.7 8.5 12.0


Value 126.2 134.1 142.8 152.0 161.4 171.4 182.1 250.9 6.5%

Opportunity 6.6 8.0 8.6 9.2 9.4 10.1 10.6 15.8


Opportunity 4.1 4.5 5.3 5.4 5.3 5.8 5.7 5.4


Value 71.6 74.9 78.4 81.5 85.0 89.3 93.9 122.2 5.0%

Opportunity 2.2 3.3 3.5 3.1 3.5 4.2 4.6 5.1

Total 403.4 425.3 449.3 473.3 498.7 526.5 555.9 736.3 5.6%

Source: FMI, 2016


India Functional Food Ingredients Market Analysis & Forecast By Application Dairy & dairy-based products segment is expected to exhibit significant growth in comparison to beverages segment over the forecast period

Figure 47: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Beverages


Beverages segment is estimated to be valued at US$115.1 Mn by 2016 and is expected to reach US$ 205.4Mn by 2026 end, expanding at a CAGR of 6.0% over theforecast period


Beverages


Figure 48: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Dairy & dairy-

based products Segment, 2016─2026Key Takeaways



10

9.0

15

1.2

20

5.4

+6

.1

+6

.6

+6

.2

+7

.2

+7

.7

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

12

6.2

18

2.1

25

0.9

+8

.0

+8

.6

+9

.2

+9

.4

+1

0.1

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


India Functional Food Ingredients Market Analysis & Forecast By Application Bakery & confectionery segment is expected to exhibit significant growth in comparison to infant food segment over the forecast period

Figure 49: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Infant Food


Infant food segment is estimated to be valued at US$101.2 Mn in 2016 and is expected to reach US$ 157.8 Mnby 2026 end, expanding at a CAGR of 4.5% over theforecast period

This segment is estimated to create absolute $opportunity of US$ 4.5 Mn in 2016 over 2015. Thissegment is expected to create incremental $ opportunityof US$ 56.7 Mn between 2016 and 2026

Infant Food


Figure 50: India Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Bakery &


Bakery & confectionery segment is estimated to bevalued at US$ 74.9 Mn in 2016 and is expected to reachUS$ 122.2 Mn by 2026 end, expanding at a CAGR of 5.0%over the forecast period


96

.6

12

8.8

15

7.8

+4

.5

+5

.3

+5

.4

+5

.3

+5

.8

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

71

.6

93

.9

12

2.2

+3

.3

+3

.5

+3

.1

+3

.5

+4

.2

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


India Functional Food Ingredients Market Attractiveness Analysis By Application & Ingredient Type

Figure 51: India Functional Food Ingredients Market Attractiveness Analysis By Ingredients Type, 2016–2026

Figure 52: India Functional Food Ingredients Market Attractiveness Analysis By Application, 2016–2026

Vitamins

Minerals


Probiotics

CarotenoidsProtein

Omega 3 Fatty Acids

Low Medium High

Low

Med

ium

Hig

h

Gro

wth

Ind

ex

(20

16–

2026

)



size for 2026 (F)

Beverages


Infant Food


Low Medium High

Low

Med

ium

Hig

h

Gro

wth

Ind

ex

(20

16–

2026

)



size for 2026 (F)



Companies such as Koninklijke DSM N.V., Archer Daniels Midland Company and BASF SE have strong presence in India. Addition of foodingredients such as proteins, omega 3 and omega 6 fatty acids and vitamins is increasing along with rising trend towards healthy foodoptions. Meanwhile, consumers enjoy convenience in ready-to-eat and ready-to-drink fortified products that offer functional healthbenefits above the basic nutritional value of foodstuffs.

Despite low level of consumer awareness compared to other countries, functional food ingredients are anticipated to witness significantdemand in India due to increasing preference of consumers for functional food and beverages

Currently, most popular probiotics products in India are dahi (Indian yogurt) and also probiotic beverages such as buttermilk, fermentedand unfermented milk and flavoured milk. In addition, various types of products that include probiotic ingredients are smoothies andinfant/toddler formula.

Moreover, various companies operating in the Asia Pacific region are incorporating novel technologies in order to enhance usability andstability of ingredients such as microencapsulation technology to enhance shelf life of probiotic ingredients, which are added tofunctional foods to impart various health-related benefits to consumers

India Functional Food Ingredients Market Trends

India


Japan Functional Food Ingredients Market Analysis

Section 10


Japan Functional Food Ingredients MarketJapan functional food ingredients market is projected to exhibit significant market growth due to increasing demand for functional foods containing ingredients such as vitamins and amino acids

Figure 53 Japan Functional Food Ingredients Market Value (US$ Mn), 2015–2026

Figure 54: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), 2016–2026

Key Takeaways

The functional food ingredients market in Japan is estimated to be valued at US$ 903.6 Mn by 2016 and is expected to reach US$ 1,767.6Mn by 2026 end, expanding at a CAGR of 6.9% over the forecast period

The functional food ingredients market in Japan is estimated to represent absolute $ opportunity of US$ 53.8 Mn in 2016 over 2015 andis expected to represent incremental $ opportunity of US$ 864.0 Mn between 2016 and 2026

84

9.8

90

3.6

96

3.5

1,0

26

.3

1,0

92

.1

1,1

63

.1

1,2

44

.6 1

,76

7.6

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2015 (A)2016 (E) 2017 (F) 2018 (F) 2019 (F) 2020 (F) 2021 (F) 2026 (F)

Val

ue

(U

S$ M

n)

Value

84

9.8

1,2

44

.6

1,7

67

.6

+5

3.8

+5

9.9

+6

2.8

+6

5.8

+7

1.0

2015 (A) 2016 (E) 2017 (F) 2018 (F) 2019 (F) 2020 (F) 2021 (F) 2026 (F)

US$

Mn



Japan Functional Food Ingredients Market Analysis & Forecast By Ingredient TypeProbiotics segment is expected to remain dominant during the forecast period in terms of value, attributed to rising awareness among Japanese consumers regarding health benefits associated with probiotic beverages

Table 8: Japan Functional Food Ingredients Market Value (US$ Mn) and absolute $ opportunity (US$ Mn) by Ingredient Type, 2015–2026


(2016–2026)

VitaminsValue 129.1 137.0 146.2 156.5 166.3 178.3 192.0 279.3 7.4%

9.5 7.9 9.2 10.3 9.8 12.0 13.7 22.9

MineralsValue 153.2 163.5 174.9 186.3 198.8 211.4 226.9 322.1 7.0%

Opportunity 9.8 10.3 11.4 11.4 12.5 12.6 15.6 24.9


Value 68.4 72.3 76.5 80.3 84.3 88.8 93.7 123.6 5.5%

Opportunity 4.6 3.9 4.3 3.8 4.0 4.5 5.0 7.6


Opportunity 15.8 16.6 17.8 18.9 20.3 21.4 24.3 44.6


Opportunity 2.2 2.3 1.6 1.6 1.8 2.4 2.3 3.9

ProteinValue 93.2 99.1 105.3 111.4 117.2 123.6 131.1 177.6 6.0%

Opportunity 5.6 5.9 6.2 6.1 5.8 6.5 7.5 11.6

Omega 3 Fatty Acids

Value 140.8 147.8 157.3 168.0 179.7 191.3 204.4 282.8 6.7%

Opportunity 5.3 7.0 9.5 10.7 11.7 11.7 13.1 21.0 Total 849.8 903.6 963.5 1,026.3 1,092.1 1,163.1 1,244.6 1,767.6 6.9%

Source: FMI, 2016


Japan Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Vitamins segment is expected to exhibit significant market growth in comparison to minerals segment during the forecast period

Figure 55: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Vitamins



Vitamins segment is estimated to create absolute $opportunity of US$ 7.9 Mn in 2016 over 2015. Thissegment is expected to create incremental $ opportunityof US$ 142.3 Mn between 2016 and 2026

Vitamins

Minerals

Figure 56: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Minerals




12

9.1

19

2.0

27

9.3

+7

.9

+9

.2

+1

0.3

+9

.8

+1

2.0

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

15

3.2

22

6.9

32

2.1

+1

0.3

+1

1.4

+1

1.4

+1

2.5

+1

2.6

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Japan Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Probiotics segment is expected to exhibit significant growth in comparison to prebiotics & dietary fibre segment over the forecast period

Figure 57: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Prebiotics &



Prebiotics & dietary fibre segment is estimated to createabsolute $ opportunity of US$ 3.9 Mn in 2016 over 2015.This segment is expected to create incremental $opportunity of US$ 51.3 Mn between 2016 and 2026.


Probiotics

Figure 58: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Probiotics


Probiotics segment is estimated to be valued at US$239.5 Mn by 2016 and is expected to reach US$ 512.8Mn by 2026 end, expanding at a CAGR of 7.9 % over theforecast period


68

.4

93

.7

12

3.6

+3

.9

+4

.3

+3

.8

+4

.0

+4

.5

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

22

3.0

34

2.3

51

2.8

+1

6.6

+1

7.8

+1

8.9

+2

0.3

+2

1.4

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Japan Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Protein segment is expected to exhibit significant growth in comparison to carotenoids segment over the forecast period

Figure 59: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Carotenoids


Carotenoids segment is estimated to be valued at US$44.4 Mn by 2016 and is expected to reach US$ 69.5 Mnby 2026 end, expanding at a CAGR of 4.6% over theforecast period

Carotenoids segment is estimated to create absolute $opportunity of US$ 2.3 Mn in 2016 over 2015. Thissegment is expected to create incremental $ opportunityof US$ 25.1 Mn between 2016 and 2026.

Carotenoids

Protein

Figure 60: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Protein Segment,




42

.1

54

.0

69

.5

+2

.3

+1

.6

+1

.6

+1

.8

+2

.4

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

93

.2

13

1.1

17

7.6

+5

.9

+6

.2

+6

.1

+5

.8

+6

.5

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Japan Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Omega 3 fatty acids segment is anticipated to exhibit above average growth over the forecast period

Figure 61: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Omega 3 Fatty


14

0.8

20

4.4

28

2.8

+7

.0

+9

.5

+1

0.7

+1

1.7

+1

1.7

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Key Takeaways



Omega 3 Fatty Acids

Source: FMI, 2016


Japan Functional Food Ingredients Market Analysis & Forecast By Application

Table 9: Japan Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Application, 2015–2026


(2016–2026)

BeveragesValue 230.5 246.8 264.6 282.9 301.9 322.0 345.7 491.2 7.1%

Opportunity 15.4 16.2 17.8 18.3 19.0 20.1 23.7 37.8


Value 263.6 282.2 304.2 326.6 350.4 375.4 403.6 592.5 7.7%

Opportunity 16.5 18.6 22.0 22.4 23.8 24.9 28.2 50.2


Opportunity 12.2 11.7 14.0 14.6 14.7 14.2 16.7 26.7


Value 152.2 159.5 165.7 173.1 181.4 193.1 206.0 297.0 6.4%

Opportunity 8.7 7.3 6.2 7.5 8.2 11.7 12.9 21.7

Total 849.8 903.6 963.5 1,026.3 1,092.1 1,163.1 1,244.6 1,767.6 6.9%

Source: FMI, 2016


Japan Functional Food Ingredients Market Analysis & Forecast By Application Dairy & dairy-based products segment is expected to exhibit significant growth in comparison to beverages segment over the forecast period

Figure 62: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Beverages




Beverages


Figure 63: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Dairy & dairy-




23

0.5

34

5.7

49

1.2

+1

6.2

+1

7.8

+1

8.3

+1

9.0

+2

0.1

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

26

3.6

40

3.6

59

2.5

+1

8.6

+2

2.0

+2

2.4

+2

3.8

+2

4.9

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Japan Functional Food Ingredients Market Analysis & Forecast By Application Bakery & confectionery segment is expected to exhibit significant growth in comparison to infant food segment over the forecast period

Figure 64: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Infant Food


Infant food segment is estimated to be valued at US$215.1 Mn by 2016 and is expected to reach US$ 386.9Mn by 2026 end, expanding at a CAGR of 6.0% over theforecast period


Infant Food


Figure 65: Japan Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Bakery &




20

3.4

28

9.3

38

6.9

+1

1.7

+1

4.0

+1

4.6

+1

4.7

+1

4.2

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

15

2.2

20

6.0

29

7.0

+7

.3

+6

.2

+7

.5

+8

.2

+1

1.7

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Japan Functional Food Ingredients Market Attractiveness Analysis By Application & Ingredient Type

Figure 66: Japan Functional Food Ingredients Market Attractiveness Analysis By Ingredients Type, 2016–2026

Figure 67: Japan Functional Food Ingredients Market Attractiveness Analysis By Application, 2016–2026

Vitamins

Minerals

Prebiotics & Dietary Fibre Probiotics

Carotenoids

Protein

Omega 3 Fatty Acids

-

0.90

1.80

0.00 1.00 2.00 3.00 4.00 5.00

Low Medium High

Low

Med

ium

Hig

h

Gro

wth

Ind

ex

(20

16–

2026

)



size for 2026 (F)

BeveragesDairy & Dairy Based

Products

Infant Food


Low Medium High

Low

Med

ium

Hig

h

Gro

wth

Ind

ex

(20

16–

2026

)



size for 2026 (F)



Demand for functional food products containing functional ingredients that are registered as FOSHU is significantly high. Demand forfunctional beverages and chewing gums that contain vitamins and amino acids is comparatively higher in the market in Japan.

In the confectionery segment, the fastest-growing sub-segment is cereal bars. Various functional cereal bars that have positive effects onhealth are being continuously introduced into the Japanese market. Functional snack bars containing dietary fibre, vitamin C and aminoacids are some popular ingredients among consumers in the country.

Moreover, food products such as beverages and dairy products containing probiotic ingredients have positive effects on the humandigestive system. Probiotic beverages and yogurts are widely available and considered as healthy snacks among Japanese consumers.

Moreover, calcium-enriched products are high in demand in Japan as these enhance bone strength and are especially preferred bymiddle-aged female consumers. Various other functional ingredients such as calcium, polyphenols and oligosaccharides are increasinglygaining traction among various end user industries.

Japan Functional Food Ingredients Market Trends

Japan


China Functional Food Ingredients Market Analysis

Section 11


China Functional Food Ingredients MarketIncreasing application of functional food ingredients in food products to develop new food products with various health benefits is expected to drive growth of the functional food ingredients market in China

Figure 68: China Functional Food Ingredients Market Value (US$ Mn), 2015–2026

Figure 69: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), 2016–2026

Key Takeaways

The functional food ingredients market in China is estimated to be valued at US$ 544.0 Mn by 2016 and is expected to reach US$ 1002.1Mn by 2026 end, expanding at a CAGR of 6.3% over the forecast period

The functional food ingredients market in China is estimated to represent absolute $ opportunity of US$ 28.6 Mn in 2016 over 2015 andexpected to represent incremental $ opportunity of US$ 458.1 Mn between 2016 and 2026

51

5.4

54

4.0

57

5.7

60

9.2

64

7.2

68

4.4

72

6.5

1,0

02

.1

0

200

400

600

800

1,000

1,200

2015 (A)2016 (E) 2017 (F) 2018 (F) 2019 (F) 2020 (F) 2021 (F) 2026 (F)

Val

ue

(U

S$ M

n)

Value

51

5.4

72

6.5

1,0

02

.1

+2

8.6

+3

1.7

+3

3.5

+3

8.0

+3

7.3

2015 (A) 2016 (E) 2017 (F) 2018 (F) 2019 (F) 2020 (F) 2021 (F) 2026 (F)

US$

Mn



China Functional Food Ingredients Market Analysis & Forecast By Ingredient TypeIn terms of value, vitamins segment is expected to remain dominant during the forecast period, attributed to various health benefits such as antioxidant properties associated with consumption of vitamin ingredients

Table 10: China Functional Food Ingredients Market Value (US$ Mn) and absolute $ opportunity (US$ Mn) by Ingredient Type, 2015–2026


(2016–2026)

VitaminsValue 79.1 82.8 86.9 92.9 99.3 105.9 112.8 160.5 6.8%

Opportunity 5.8 3.7 4.0 6.0 6.4 6.6 6.9 13.0

MineralsValue 108.3 115.2 121.9 129.5 137.8 146.2 155.6 218.0 6.6%

Opportunity 5.8 6.8 6.7 7.6 8.3 8.4 9.4 18.1


Value 51.4 53.7 56.4 58.9 62.2 65.6 68.9 90.2 5.3%

Opportunity 2.6 2.3 2.7 2.6 3.2 3.4 3.3 5.8


Opportunity 3.1 7.6 9.1 8.8 11.0 9.6 11.4 20.6


Opportunity 3.1 2.6 1.8 1.6 1.5 1.4 1.6 2.7

ProteinValue 67.5 71.3 76.1 81.2 86.9 92.5 98.9 140.5 7.0%

Opportunity 4.0 3.8 4.8 5.1 5.7 5.6 6.4 10.8

Omega 3 Fatty Acids

Value 31.9 33.6 36.2 38.0 39.7 42.0 45.1 60.0 6.0%

Opportunity 2.6 1.7 2.6 1.8 1.8 2.3 3.1 3.5 Total 515.4 544.0 575.7 609.2 647.2 684.4 726.5 1,002.1 6.3%

Source: FMI, 2016


China Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Vitamins segment is expected to exhibit significant growth in comparison to minerals segment during the forecast period

Figure 70: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Vitamins




Vitamins

Minerals

Figure 71: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Minerals




79

.1

11

2.8

16

0.5

+3

.7

+4

.0

+6

.0

+6

.4

+6

.6

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

10

8.3

15

5.6

21

8.0

+6

.8

+6

.7

+7

.6

+8

.3

+8

.4

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


China Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Probiotics segment is expected to exhibit significant growth in comparison to prebiotics & dietary fibre segments over the forecast period

Figure 72: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Prebiotics &





Probiotics

Figure 73: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Probiotics


Probiotics segment is estimated to be valued at US$152.4 Mn by 2016 and is expected to reach US$ 280.4Mn by 2026 end, expanding at a CAGR of 6.3% over theforecast period


51

.4

68

.9

90

.2

+2

.3

+2

.7

+2

.6

+3

.2

+3

.4

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

14

4.8

20

2.4

28

0.4

+7

.6

+9

.1

+8

.8

+1

1.0

+9

.6

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


China Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Protein segment is expected to exhibit significant growth in comparison to carotenoids segment over the forecast period

Figure 74: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Carotenoids




Carotenoids

Protein

Figure 75: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Protein Segment,




32

.4

42

.8

52

.4

+2

.6

+1

.8

+1

.6

+1

.5

+1

.4

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

67

.5

98

.9

14

0.5

+3

.8

+4

.8

+5

.1

+5

.7

+5

.6

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


China Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Omega 3 fatty acids segment is anticipated to exhibit above average growth over the forecast period

Figure 76: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Omega 3 Fatty


31

.9

45

.1

60

.0

+1

.7

+2

.6

+1

.8

+1

.8

+2

.3

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Key Takeaways



Omega 3 Fatty Acids

Source: FMI, 2016


China Functional Food Ingredients Market Analysis & Forecast By Application

Table 11: China Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Application, 2015–2026


(2016–2026)

BeveragesValue 56.3 58.9 61.6 64.2 67.1 69.8 72.9 92.1 4.6%

Opportunity 2.6 2.5 2.8 2.6 2.9 2.7 3.1 5.3


Value 103.3 109.2 115.9 122.8 130.8 138.6 147.4 202.5 6.4%

Opportunity 5.6 6.0 6.6 7.0 7.9 7.8 8.8 13.7


Opportunity 9.8 13.2 14.2 15.1 17.1 17.1 19.2 33.8


Value 155.5 162.4 170.6 179.4 189.4 199.1 210.0 283.4 5.7%

Opportunity 9.0 6.9 8.1 8.8 10.0 9.7 10.9 21.8

Total 515.4 544.0 575.7 609.2 647.2 684.4 726.5 1,002.1 6.3%

Source: FMI, 2016


China Functional Food Ingredients Market Analysis & Forecast By Application Dairy & dairy-based products segment is expected to exhibit significant growth in comparison to beverages segment over the forecast period

Figure 77: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Beverages




Beverages


Figure 78: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Dairy & dairy-




56

.3

72

.9

92

.1

+2

.5

+2

.8

+2

.6

+2

.9

+2

.7

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

10

3.3

14

7.4

20

2.5

+6

.0

+6

.6

+7

.0

+7

.9

+7

.8

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


China Functional Food Ingredients Market Analysis & Forecast By Application Infant food segment is expected to exhibit significant growth in comparison to bakery & confectionery segment over the forecast period

Figure 79: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Infant Food


Infant food segment is estimated to be valued at US$213.5 Mn by 2016 and is expected to reach US$ 424.1Mn by 2026 end, expanding at a CAGR of 7.1% over theforecast period


Infant Food


Figure 80: China Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Bakery &




20

0.3

29

6.2

42

4.1

+1

3.2

+1

4.2

+1

5.1

+1

7.1

+1

7.1

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

15

5.5

21

0.0

28

3.4

+6

.9

+8

.1

+8

.8

+1

0.0

+9

.7

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


China Functional Food Ingredients Market Attractiveness Analysis By Application & Ingredient Type

Figure 81: China Functional Food Ingredients Market Attractiveness Analysis By Ingredients Type, 2016–2026

Figure 82: China Functional Food Ingredients Market Attractiveness Analysis By Application, 2016–2026

Vitamins

Minerals


Probiotics

Carotenoids

Protein

Omega 3 Fatty Acids

Low Medium High

Low

Med

ium

Hig

h

Gro

wth

In

de

x (2

01

6–2

02

6)



size for 2026 (F)

Beverages


Infant Food

Bakery & Confectioner

y

(0.10)

0.10

0.30

0.50

0.70

0.90

1.10

1.30

1.50

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00

Low Medium High

Low

Med

ium

Hig

h

Gro

wth

Ind

ex

(20

16–2

026)



size for 2026 (F)



China Functional Food Ingredients Market Trends

China

Consumption of food products that contain bacteria such as probiotics is relatively high in China. Various functional ingredients are trending infood products, which include carotenoids, fatty acids, probiotics, prebiotics, plant sterols and soy proteins.

In 2012, the most popular functional food ingredients used by various functional food manufacturers included food acids, calcium and vitamin Ein milk formulas, probiotics in flavoured milk drinks and yogurt

Various companies operating in China are introducing new products such as functional food ingredients in order to enhance health benefits offood products

The Menhniu Dairy Industry introduced product called Yiyoute, which contains GOS (galactooligosaccharide), minerals, vitamins and wheyprotein powder, which enable building immunity and increasing calcium intake. In 2011, this product won the Innovation Award at the 2 SIALChina food show.

In addition, various events are organised in China in order to enable showcasing of various ingredients such as health ingredients,nutraceuticals and functional food


Thailand Functional Food Ingredients Market Analysis

Section 12


Thailand Functional Food Ingredients MarketIncreasing consumer preferences for food products with various health benefits is expected to fuel growth of the functional food ingredients market in Thailand

Figure 83: Thailand Functional Food Ingredients Market Value (US$ Mn), 2015–2026

Figure 84: Thailand Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), 2016–2026

Key Takeaways

The functional food ingredients market in Thailand is estimated to be valued at US$ 137.6 Mn by 2016 and is expected to reach US$208.3 Mn by 2026 end, expanding at a CAGR of 4.2% over the forecast period

The functional food ingredients market in the country is estimated to represent absolute $ opportunity of US$ 5.5 Mn in 2016 over 2015and is expected to represent incremental $ opportunity of US$ 70.7 Mn between 2016 and 2026

13

2.1

13

7.6

14

2.1

14

8.4

15

6.2

16

4.4

17

1.8

20

8.3

0

50

100

150

200

250

2015 (A) 2016 (E) 2017 (F) 2018 (F) 2019 (F) 2020 (F) 2021 (F) 2026 (F)

Val

ue

(U

S$ M

n)

Value

13

2.1

17

1.8

20

8.3

+5

.5

+4

.6

+6

.3

+7

.7

+8

.2

2015 (A) 2016 (E) 2017 (F) 2018 (F) 2019 (F) 2020 (F) 2021 (F) 2026 (F)

US$

Mn



Thailand Functional Food Ingredients Market Analysis & Forecast By Ingredient TypeIn terms of value, vitamins segment is expected to remain dominant during the forecast period

Table 12: Thailand Functional Food Ingredients Market Value (US$ Mn) and absolute $ opportunity (US$ Mn) by Ingredient Type,2015–2026


(2016–2026)

VitaminsValue 37.0 38.6 40.4 42.4 44.5 47.0 49.7 64.2 5.2%

Opportunity 1.3 1.6 1.7 2.0 2.2 2.5 2.6 2.6

MineralsValue 31.7 33.1 34.3 36.0 38.1 40.3 42.1 51.2 4.4%

Opportunity 1.0 1.5 1.2 1.7 2.1 2.2 1.9 1.3


Value 10.4 10.7 10.8 11.0 11.4 11.8 12.1 13.4 2.3%

Opportunity 0.2 0.3 0.1 0.3 0.4 0.4 0.2 0.1


Opportunity 1.1 1.1 0.4 1.1 1.4 1.5 1.3 0.4


Opportunity 0.1 0.1 0.0 0.1 0.1 0.1 0.0 0.1

ProteinValue 19.7 20.6 21.2 22.0 23.0 24.1 25.0 28.8 3.4%

Opportunity 0.6 0.9 0.6 0.8 1.0 1.1 0.9 0.2

Omega 3 Fatty Acids

Value 7.8 7.8 8.3 8.6 9.1 9.6 10.1 11.8 4.2%

Opportunity 0.2 (0.0) 0.4 0.4 0.5 0.5 0.4 0.2 Total 132.1 137.6 142.1 148.4 156.2 164.4 171.8 208.3 4.2%

Source: FMI, 2016


Thailand Functional Food Ingredients Market Analysis & Forecast By Ingredient TypeVitamins segment is expected to exhibit significant growth in comparison to minerals segment over the forecast period

Figure 85: Thailand Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Vitamins




Vitamins

Minerals

Figure 86: Thailand Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Minerals



Minerals segment is estimated to create absolute $opportunity of US$ 1.5 Mn in 2016 over 2015. Thissegment is expected to create incremental $ opportunityof US$ 18.1 Mn between 2016 and 2026.

37

.0

49

.7

64

.2

+1

.6

+1

.7

+2

.0

+2

.2

+2

.5

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

31

.7

42

.1

51

.2

+1

.5

+1

.2

+1

.7

+2

.1

+2

.2

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Thailand Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Probiotics segment is expected to exhibit significant growth in comparison to prebiotics & dietary fibre over the forecast period

Figure 87: Thailand Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Prebiotics





Probiotics

Figure 88: Thailand Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Probiotics




10

.4

12

.1

13

.4

+0

.3

+0

.1

+0

.3

+0

.4

+0

.4

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

21

.5

28

.4

34

.0

+1

.1

+0

.4

+1

.1

+1

.4

+1

.5

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Thailand Functional Food Ingredients Market Analysis & Forecast By Ingredient TypeProtein segment is expected to exhibit significant growth in comparison to carotenoids segment over the forecast period

Figure 89: Thailand Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by


Carotenoids segment is estimated to be valued at US$4.1 Mn by 2016 and expected to reach US$ 4.9 Mn by2026 end, expanding at a CAGR of 1.8% over the forecastperiod


Carotenoids

Protein

Figure 90: Thailand Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Protein Segment,




3.9

4.4

4.9

+0

.1

+0

.0

+0

.1

+0

.1

+0

.1

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

19

.7

25

.0

28

.8

+0

.9

+0

.6

+0

.8

+1

.0

+1

.1

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Thailand Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Omega 3 fatty acids segment is anticipated to exhibit above average growth over the forecast period

Figure 91: Thailand Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), by Omega 3 Fatty


7.8

10

.1

11

.8

+(0

.0)

+0

.4

+0

.4

+0

.5

+0

.5

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Key Takeaways


This segment is expected to create incremental $opportunity of US$ 4.0 Mn between 2016 and 2026

Omega 3 Fatty Acids

Source: FMI, 2016


Thailand Functional Food Ingredients Market Analysis & Forecast By Application

Table 13: Thailand Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Application, 2015–2026


(2016–2026)

BeveragesValue 42.4 44.1 45.7 47.8 50.1 52.5 55.0 66.9 4.3%

Opportunity 1.6 1.7 1.6 2.0 2.3 2.5 2.5 1.9


Value 22.4 23.4 24.0 25.0 26.0 27.1 27.8 32.8 3.4%

Opportunity 0.7 1.0 0.6 0.9 1.1 1.1 0.6 1.1


Opportunity 0.3 0.4 0.3 0.3 0.4 0.5 0.4 0.4


Value 55.5 57.9 59.9 62.9 66.8 70.9 74.8 92.2 4.8%

Opportunity 2.0 2.4 2.0 3.0 3.9 4.1 3.9 1.4

Total 132.1 137.6 142.1 148.4 156.2 164.4 171.8 208.3 4.2%

Source: FMI, 2016


Thailand Functional Food Ingredients Market Analysis & Forecast By Application Beverages segment is expected to exhibit significant growth in comparison to dairy & dairy products segment over the forecast period

Figure 92: Thailand Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by




Beverages


Figure 93: Thailand Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Dairy & dairy-




42

.4

55

.0

66

.9

+1

.7

+1

.6

+2

.0

+2

.3

+2

.5

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

22

.4

27

.8

32

.8

+1

.0

+0

.6

+0

.9

+1

.1

+1

.1

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Thailand Functional Food Ingredients Market Analysis & Forecast By Application Bakery & confectionery segment is expected to exhibit significant market growth in comparison to infant food segment over the forecast period

Figure 94: Thailand Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by InfantFood Segment, 2016─2026Key Takeaways



Infant Food


Figure 95: Thailand Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn ), by Bakery &



Bakery & confectionery segment is estimated to createabsolute $ opportunity of US$ 2.4 Mn in 2016 over 2015.This segment is expected to create incremental $opportunity of US$ 34.3 Mn between 2016 and 2026.

11

.8

14

.2

16

.4

+0

.4

+0

.3

+0

.3

+0

.4

+0

.5

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

55

.5

74

.8

92

.2

+2

.4

+2

.0

+3

.0

+3

.9

+4

.1

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Thailand Functional Food Ingredients Market Trends

Thailand

Demand for convenience and fast food, snack foods and dairy products is significantly high due to rising trend towards convenienceamong consumers, who prefer to prepare food easily, coupled with rapidly changing lifestyle. Thai consumers prefer food productsthat offer multi-features and benefits such as added nutrients and intense flavours, which in turn is driving increasing intake offunctional food ingredients through various food products.

Demand in Thailand for food products with functional ingredients such as those fortified with fiber, calcium, vitamins, iron and foodproducts with natural ingredients

Increasing application of new types of functional ingredients in various dietary supplements in Thailand that offer various healthbenefits


Thailand Functional Food Ingredients Market Attractiveness Analysis By Application & Ingredient Type

Figure 96: Thailand Functional Food Ingredients Market Attractiveness Analysis By Ingredients Type, 2016–2026

Figure 97: Thailand Functional Food Ingredients Market Attractiveness Analysis By Application, 2016–2026

Vitamins

Minerals


Probiotics

Carotenoids

Protein

Omega 3 Fatty Acids

Low Medium High

Low

Med

ium

Hig

h

Gro

wth

Ind

ex

(20

16–

2026

)



size for 2026 (F)

Beverages


Infant Food


Low Medium High

Low

Med

ium

Hig

h

Gro

wth

Ind

ex

(20

16–

2026

)



size for 2026 (F)



Malaysia Functional Food Ingredients Market Analysis

Section 13


Malaysia Functional Food Ingredients MarketVarious initiatives taken by the government such as health campaigns and welfare program are expected to drive demand for functional food ingredients in Malaysia

Figure 98: Malaysia Functional Food Ingredients Market Value (US$ Mn), 2015–2026

Figure 99: Malaysia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), 2016–2026

Key Takeaways

The functional food ingredients market in Malaysia is estimated to be valued at US$ 337.9 Mn by 2016 and is expected to reach US$538.6 Mn by 2026 end, expanding at a CAGR of 4.8% over the forecast period

The functional food ingredients market in the country is estimated to represent absolute $ opportunity of US$ 14.4 Mn in 2016 over2015 and is expected to represent incremental $ opportunity of US$ 200.7 Mn between 2016 and 2026

32

3.5

33

7.9

35

3.2

36

9.3

38

7.9

40

6.2

42

6.3

53

8.6

0

100

200

300

400

500

600

2015 (A)2016 (E) 2017 (F) 2018 (F) 2019 (F) 2020 (F) 2021 (F) 2026 (F)

Val

ue

(U

S$ M

n)

Value

32

3.5

42

6.3

53

8.6

+1

4.4

+1

5.3

+1

6.1

+1

8.6

+1

8.3

2015 (A) 2016 (E) 2017 (F) 2018 (F) 2019 (F) 2020 (F) 2021 (F) 2026 (F)

US$

Mn



Malaysia Functional Food Ingredients Market Analysis & Forecast By Ingredient TypeProbiotics segment is expected to remain dominant in terms of value over the forecast period

Table 14: Malaysia Functional Food Ingredients Market Value (US$ Mn) and absolute $ opportunity (US$ Mn) by Ingredient Type,2015–2026


(2016–2026)

VitaminsValue 38.5 40.4 42.2 44.0 46.1 48.2 50.4 63.3 4.6%

Opportunity 1.5 1.9 1.7 1.8 2.1 2.1 2.3 2.3

MineralsValue 25.9 26.9 27.8 28.7 29.8 30.8 31.9 37.9 3.5%

Opportunity 1.2 1.1 0.9 0.9 1.1 1.0 1.1 1.0


Value 23.0 23.9 24.6 25.1 25.8 26.6 27.4 31.8 2.9%

Opportunity 1.4 1.0 0.6 0.5 0.7 0.8 0.9 0.6


Opportunity 2.4 2.3 2.3 2.5 2.9 2.8 3.1 3.2


Opportunity 1.6 1.1 0.9 0.9 1.1 1.0 1.1 0.5

ProteinValue 57.5 60.0 62.9 65.7 68.7 71.6 74.7 92.6 4.4%

Opportunity 2.0 2.5 2.9 2.8 3.0 2.9 3.2 3.2

Omega 3 Fatty Acids

Value 94.5 99.0 105.0 111.6 119.4 127.1 135.6 183.9 6.4%


Source: FMI, 2016


Malaysia Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Vitamins segment is expected to exhibit significant market growth in comparison to minerals segment over the forecast period

Figure 100: Malaysia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Vitamins


Vitamins segment is estimated to be valued at US$ 40.4Mn by 2016 and is expected to reach US$ 63.3 Mn by2026 end, expanding at CAGR of 4.6% over the forecastperiod


Vitamins

Minerals

Figure 101: Malaysia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn ), by Minerals



Minerals segment is estimated to create absolute $opportunity of US$ 1.1 Mn in 2016 over 2015. Thissegment is expected to create incremental $ opportunityof US$ 10.9 Mn between 2016 and 2026.

38

.5

50

.4

63

.3

+1

.9

+1

.7

+1

.8

+2

.1

+2

.1

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

25

.9

31

.9

37

.9

+1

.1

+0

.9

+0

.9

+1

.1

+1

.0

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Malaysia Functional Food Ingredients Market Analysis & Forecast By Ingredient TypeProbiotics segment is expected to exhibit significant market growth in comparison to prebiotics & dietary fibre segment during the forecast period

Figure 102: Malaysia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Prebiotics





Probiotics

Figure 103: Malaysia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Probiotics


Probiotics segment is estimated to be valued at US$ 50.9Mn by 2016 and is expected to reach US$ 82.2 Mn by2026 end, expanding at a CAGR 4.9% over the forecastperiod


23

.0

27

.4

31

.8

+1

.0

+0

.6

+0

.5

+0

.7

+0

.8

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

48

.7

64

.5

82

.2

+2

.3

+2

.3

+2

.5

+2

.9

+2

.8

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Malaysia Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Protein segment is expected to exhibit significant market growth in comparison to carotenoids segment during the forecast period

Figure 104: Malaysia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by




Carotenoids

Protein

Figure 105: Malaysia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Protein



Protein segment is estimated to create absolute $opportunity of US$ 2.5 Mn in 2016 over 2015. Thissegment is expected to create incremental $ opportunityof US$ 32.6 Mn between 2016 and 2026

35

.5

41

.7

46

.9

+1

.1

+0

.9

+0

.9

+1

.1

+1

.0

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

57

.5

74

.7

92

.6

+2

.5

+2

.9

+2

.8

+3

.0

+2

.9

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Malaysia Functional Food Ingredients Market Analysis & Forecast By Ingredient TypeOmega 3 fatty acids segment is anticipated to exhibit above average growth over the forecast period

Figure 106: Malaysia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Omega 3


94

.5

13

5.6

18

3.9

+4

.6

+5

.9

+6

.6

+7

.8

+7

.7

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Key Takeaways


Omega 3 fatty acids segment is estimated to createabsolute $ opportunity of US$ 4.6 Mn in 2016 over 2015.This segment is expected to create incremental $opportunity of US$ 84.8 Mn between 2016 and 2026.

Omega 3 Fatty Acids

Source: FMI, 2016


Malaysia Functional Food Ingredients Market Analysis & Forecast By Application

Table 15: Malaysia Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Application, 2015–2026


(2016–2026)

BeveragesValue 123.2 129.0 135.4 143.2 151.9 160.5 169.1 221.3 5.5%

Opportunity 5.9 5.8 6.5 7.7 8.8 8.6 8.6 8.6


Value 64.4 67.0 69.6 72.7 76.0 79.3 82.8 102.1 4.3%

Opportunity 2.7 2.7 2.5 3.1 3.3 3.3 3.5 3.1


Opportunity 2.0 2.0 1.6 1.9 2.0 1.4 1.5 1.4


Value 90.8 94.8 99.5 102.9 107.4 112.4 118.8 149.7 4.7%

Opportunity 4.4 4.0 4.7 3.4 4.5 5.0 6.4 5.2

Total 323.5 337.9 353.2 369.3 387.9 406.2 426.3 538.6 4.8%

Source: FMI, 2016


Malaysia Functional Food Ingredients Market Analysis & Forecast By Application Beverages segment is expected to exhibit significant market growth in comparison to Dairy & dairy-based products segment over the forecast period

Figure 107: Malaysia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by




Beverages


Figure 108: Malaysia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn ), by Dairy &




12

3.2

16

9.1

22

1.3

+5

.8

+6

.5

+7

.7

+8

.8

+8

.6

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

64

.4

82

.8

10

2.1

+2

.7

+2

.5

+3

.1

+3

.3

+3

.3

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Malaysia Functional Food Ingredients Market Analysis & Forecast By Application Bakery & confectionery segment is expected to exhibit significant growth in comparison to infant food segment over the forecast period

Figure 109: Malaysia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Infant




Infant Food


Figure 110: Malaysia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn ), by Bakery &




45

.2

55

.5

65

.4

+2

.0

+1

.6

+1

.9

+2

.0

+1

.4

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

90

.8

11

8.8

14

9.7

+4

.0

+4

.7

+3

.4

+4

.5

+5

.0

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Malaysia Functional Food Ingredients Market Trends

Malaysia

Rapidly growing fast food industry coupled with modern lifestyle resulting in changing food habits of consumers in Malaysia and alsoleading to onset diseases such as diabetes, heart disease etc. In response to this, the government of Malaysia has undertakeninitiatives to strengthen consumer awareness towards healthy lifestyle and also various manufacturers have increased production offoods, which include functional ingredients. This in turn has resulted into increased usage of functional ingredients in food products.

Demand for functional ingredients such as omega 3, probiotics, calcium, vitamin E and fibre is increasing significantly in Malaysia.Among these ingredients, omega 3 and dietary fibre segments are expected to contribute significant market shares over the forecastperiod.

In Malaysia, the government of Malaysia has undertaken various initiatives such as health campaigns, welfare programmes etc. inorder to promote awareness among consumers regarding food products containing functional ingredients. Moreover, all food, drinkand food ingredients imported or manufactured locally are required to comply with Malaysian food regulations.


Vitamins

Minerals


Probiotics

CarotenoidsProtein

Omega 3 Fatty Acids

Low Medium High

Low

Med

ium

Hig

h

Gro

wth

Ind

ex

(20

16–

2026

)



size for 2026 (F)

Malaysia Functional Food Ingredients Market Attractiveness Analysis By Ingredients Type, Application

Figure 111: Malaysia Functional Food Ingredients Market Attractiveness Analysis By Ingredients Type, 2016–2026

Figure 112: Malaysia Functional Food Ingredients Market Attractiveness Analysis By Application, 2016–2026

Beverages


Infant Food Bakery & Confectionery

Low Medium High

Low

Med

ium

Hig

h

Gro

wth

Ind

ex

(20

16–

2026

)



size for 2026 (F)



Indonesia Functional Food Ingredients Market Analysis

Section 14


Indonesia Functional Food Ingredients MarketTradeshows organised across Indonesia to promote functional food ingredients is expected to fuel demand for such ingredients among various end-user industries

Figure 113: Indonesia Functional Food Ingredients Market Value (US$ Mn), 2015–2026

Figure 114: Indonesia Functional Food Ingredients Market Absolute $ Opportunity (US$ Mn), 2016–2026

Key Takeaways

The functional food ingredients market in Indonesia is estimated to be valued at US$ 253.4 Mn by 2016 and is expected to reach US$394.4 Mn by 2026 end, expanding at a CAGR of 4.5% over the forecast period

The functional food ingredients market in the country is estimated to represent absolute $ opportunity of US$ 11.7 Mn in 2016 over2015 and is expected to represent incremental $ opportunity of US$ 140.9 Mn between 2016 and 2026

24

1.7

25

3.4

26

4.4

27

7.3

28

9.2

30

5.5

31

9.3

39

4.4

0

50

100

150

200

250

300

350

400

450

2015 (A)2016 (E) 2017 (F) 2018 (F) 2019 (F) 2020 (F) 2021 (F) 2026 (F)

Val

ue

(U

S$ M

n)

Value

24

1.7

31

9.3

39

4.4

+1

1.7

+1

0.9

+1

2.9

+1

1.9

+1

6.3

2015 (A) 2016 (E) 2017 (F) 2018 (F) 2019 (F) 2020 (F) 2021 (F) 2026 (F)

US$

Mn



Indonesia Functional Food Ingredients Market Analysis & Forecast By Ingredient TypeIn terms of value, omega 3 fatty acids segment is expected to remain dominant during the forecast period

Table 16: Indonesia Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Ingredient Type, 2015–2026


(2016–2026)

VitaminsValue 68.0 71.4 75.2 79.4 83.4 88.7 93.3 120.2 5.3%

Opportunity 2.9 3.5 3.8 4.2 4.0 5.3 4.5 1.8

MineralsValue 24.2 25.3 26.1 27.1 27.8 29.1 29.8 34.8 3.3%

Opportunity 1.0 1.1 0.8 1.0 0.7 1.2 0.8 0.4


Value 14.4 15.1 15.5 16.1 16.5 17.5 18.1 20.4 3.1%

Opportunity 0.4 0.7 0.4 0.6 0.4 0.9 0.6 0.2


Opportunity 1.5 2.0 1.9 2.1 2.1 2.3 2.2 0.0


Opportunity 0.3 0.3 0.3 0.4 0.2 0.5 0.4 0.1

ProteinValue 31.3 32.9 34.0 35.6 36.7 38.7 39.9 47.9 3.8%

Opportunity 1.1 1.6 1.2 1.6 1.1 2.0 1.1 0.6

Omega 3 Fatty Acids

Value 51.0 53.5 56.0 59.0 62.3 66.3 70.5 91.2 5.5%


Source: FMI, 2016


Indonesia Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Vitamins segment is expected to exhibit significant growth in comparison to minerals segment over the forecast period

Figure 115: Indonesia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Vitamins




Vitamins

Minerals

Figure 116: Indonesia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn ), by Minerals




68

.0

93

.3

12

0.2

+3

.5

+3

.8

+4

.2

+4

.0

+5

.3

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

24

.2

29

.8

34

.8

+1

.1

+0

.8

+1

.0

+0

.7

+1

.2

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Indonesia Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Probiotics segment is expected to exhibit significant growth in comparison to prebiotics & dietary fibre segment over the forecast period

Figure 117: Indonesia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Prebiotics





Probiotics

Figure 118: Indonesia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Probiotics




14

.4

18

.1

20

.4

+0

.7

+0

.4

+0

.6

+0

.4

+0

.9

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

43

.3

56

.0

66

.6

+2

.0

+1

.9

+2

.1

+2

.1

+2

.3

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Indonesia Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Protein segment is expected to exhibit significant growth in comparison to carotenoids segment over the forecast period

Figure 119: Indonesia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by


Carotenoids segment is estimated to be valued at US$9.9 Mn by 2016 and is expected to reach US$ 13.3 Mn by2026 end, expanding at a CAGR of 3.0% over the forecastperiod

Carotenoids segment is estimated to create absolute $opportunity of US$ 0.3 Mn in 2016 over 2015. Thissegment is expected to create incremental $ opportunityof US$ 3.4 Mn between 2016 and 2026.

Carotenoids

Protein

Figure 120: Indonesia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Protein




9.6

11

.7

13

.3

+0

.3

+0

.3

+0

.4

+0

.2

+0

.5

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

31

.3

39

.9

47

.9

+1

.6

+1

.2

+1

.6

+1

.1

+2

.0

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Indonesia Functional Food Ingredients Market Analysis & Forecast By Ingredient Type Omega 3 fatty acids segment is anticipated to exhibit above average growth over the forecast period

Figure 121: Indonesia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by Omega 3


51

.0

70

.5

91

.2

+2

.5

+2

.5

+3

.0

+3

.2

+4

.0

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Key Takeaways



Omega 3 Fatty Acids

Source: FMI, 2016


Indonesia Functional Food Ingredients Market Analysis & Forecast By Application

Table 17: Indonesia Functional Food Ingredients Market Value (US$ Mn) and Absolute $ Opportunity (US$ Mn) by Application, 2015–2026


(2016–2026)

BeveragesValue 69.6 73.1 76.6 80.5 84.4 89.4 93.7 117.1 4.8%

Opportunity 3.0 3.5 3.5 3.9 3.9 5.0 4.3 1.2


Value 89.6 94.0 98.9 104.5 109.7 116.5 122.5 157.5 5.3%

Opportunity 3.6 4.4 4.9 5.5 5.2 6.8 6.1 2.3


Opportunity 2.3 2.9 1.8 2.4 2.2 3.7 2.6 0.3


Value 32.0 32.9 33.6 34.7 35.3 36.0 36.9 40.6 2.1%

Opportunity 0.5 0.9 0.7 1.0 0.6 0.8 0.9 0.0

Total 241.7 253.4 264.4 277.3 289.2 305.5 319.3 394.4 4.5%

Source: FMI, 2016


Indonesia Functional Food Ingredients Market Analysis & Forecast By Application Dairy & dairy products segment is expected to exhibit significant growth in comparison to beverages segment over the forecast period

Figure 122: Indonesia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by




Beverages


Figure 123: Indonesia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn ), by Dairy &




69

.6

93

.7

11

7.1

+3

.5

+3

.5

+3

.9

+3

.9

+5

.0

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

89

.6

12

2.5

15

7.5

+4

.4

+4

.9

+5

.5

+5

.2

+6

.8

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Indonesia Functional Food Ingredients Market Analysis & Forecast By Application Infant food segment is expected to exhibit significant growth in comparison to bakery & confectionery segment over the forecast period

Figure 124: Indonesia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn), by InfantFood Segment, 2016─2026Key Takeaways



Infant Food


Figure 125: Indonesia Functional Food IngredientsMarket Absolute $ Opportunity (US$ Mn ), by Bakery &


Bakery & confectionery segment is estimated to bevalued at US$ 32.9 Mn by 2016 and is expected to reachUS$ 40.6 Mn by 2026 end, expanding at a CAGR of 2.1 %over the forecast period


50

.6

66

.1

79

.2

+2

.9

+1

.8

+2

.4

+2

.2

+3

.7

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

32

.0

36

.9

40

.6

+0

.9

+0

.7

+1

.0

+0

.6

+0

.8

2015(A)

2016(E)

2017(F)

2018(F)

2019(F)

2020(F)

2021(F)

2026(F)

US$

Mn

Source: FMI, 2016

Source: FMI, 2016


Indonesia Functional Food Ingredients Market Trends

Indonesia

Various exhibitions are organized across the country in order to showcase various food and beverage ingredients and also to expandpresence in various untapped markets

Food Ingredients Asia is an international trade show that facilitates various companies such as BASF SE, Archer Daniels MidlandCompany, Koninklijke DSM N.V etc. to showcase their functional food products and also source the latest information regardingfunctional ingredients used for bakery, beverage and dairy-based products

In September 2016, Food Ingredients Asia is scheduled to be organized in which over 650 leading food and beverage ingredientsupplier are expected to participate and showcase their latest additions related to functional food ingredients in Jakarta, Indonesia


Vitamins

Minerals


Probiotics

CarotenoidsProtein

Omega 3 Fatty Acids

Low Medium High

Low

Med

ium

Hig

h

Gro

wth

Ind

ex

(20

16–

2026

)



size for 2026 (F)

Indonesia Functional Food Ingredients Market Attractiveness Analysis By Application & Ingredient Type

Figure 126: Indonesia Functional Food Ingredients Market Attractiveness Analysis By Ingredients Type, 2016–2026

Figure 127: Indonesia Functional Food Ingredients Market Attractiveness Analysis By Application, 2016–2026

Beverages


Infant Food


Low Medium High

Low

Med

ium

Hig

h

Gro

wth

Ind

ex

(20

16–

2026

)



size for 2026 (F)



Competitive Landscape – By Ingredient

Section 15


Functional Food Market: Competition Dashboard (1/2)

Key PlayersSciphar Natural Products

Co., Ltd Marathwada Chemical

Industries Pvt. Ltd.NEW ASIA INGREDIENTS

PTE LTDFENCHEM BIOTEK

LTD.Arjuna Natural Extracts

Ltd.

Country Shaani, China Aurangabad, IndiaAng Mo Kio Avenue,

SingaporeNanjung, China Alwaye, India

Established 2006 1962 1997 1995 1992

Employees 200-300 500 N.A. 300 ~300

ProductsProbiotics, Prebiotic &

Dietary Fibre, Protein and Carotenoids

Vitamins Protein Vitamins, Protein Omega-3

Application Beverage, Dairy and Bakery Beverage Beverage and DairyBeverage, Dairy and

BakeryInfant Food

Major Presence

China China China China China

India India India India India

Japan Japan Japan Japan Japan

Malaysia Malaysia Malaysia Malaysia Malaysia

Indonesia Indonesia Indonesia Indonesia Indonesia

Singapore Singapore Singapore Singapore Singapore

Thailand Thailand Thailand Thailand Thailand

High Medium LowSource: FMI, 2016


Functional Food Market: Competition Dashboard (1/2)

Key PlayersShandong Yuwang Industrial Co., Ltd.

Supreem Pharmaceuticals Mysore Pvt. Ltd.

Bio Actives Japan Corporation

Global Specialty Ingredients (M) Sdn.

Bhd.

Excellent Health Products Co.,Ltd

Country Shandong, China Mysore, India Tokyo, Japan Selangor, Malaysia Jiangsu, China

Established 1999 1985 2006 2005 2012

Employees ~1,000 100+ 200+ 50

Products Omega-3, ProteinVitamins, Minerals,

ProteinOmega-3 Vitamins, Minerals

Vitamins, Omega-3, Carotenoids

ApplicationDairy, Bakery & Confectionery

Dairy, Bakery & Confectionery

Beverage, Dairy, Confectionery

Beverage, Dairy, Bakery, Infant Food

Food and Beverage

Major Presence

China China China China China

India India India India India

Japan Japan Japan Japan Japan

Malaysia Malaysia Malaysia Malaysia Malaysia

Indonesia Indonesia Indonesia Indonesia Indonesia

Singapore Singapore Singapore Singapore Singapore

Thailand Thailand Thailand Thailand Thailand

Source: FMI, 2016 High Medium Low


Sciphar Natural Products Co., Ltd. (1/2)

Source: Company Website

Company Overview

Headquarter

Shaanxi, China

Employees

200–300

Key Management

Bruce Duan

Established

2006

Sciphar Natural Products Co., Ltd offers naturally derived ingredients related to dietary supplements, functionalfoods and ingredients for the beverages sector

Its specialization is extraction and offering of natural functional food ingredients, herbal oils, sweeteners and plantproteins

Currently, the company operates through four subsidiaries including Shaani Sciphar Hi-tech Industry Co., Ltd.,Shaanxi Sciphar Biotechnology Co., Ltd., Shaani Sciphar Natural Products Co., Ltd. and Sanyuan ScipharBiotechnology Co. Ltd.

Company Description

Company Website

www.sciphar.com

Products

Sciphar Natural Products Co., Ltd.

Company Name

Vitamins Minerals ProbioticsOmega 3

Fatty AcidsPrebiotic &

Dietary FibreProtein Carotenoids

X X X


Sciphar Natural Products Co., Ltd. (2/2)

Source: Company Website & FMI, 2016

Geographical Presence, 2015 Key Takeaways

Key Strategies

Source: FMI Analysis, 2016

Sciphar Natural Products Co., Ltd. focuses on offering qualityfunctional ingredients, soy protein and probiotics & prebiotics Its soy protein has wide application in meat products, cold

drinks, and can be added to products such as yogurt, milkpowder, ice cream and in bakery products includingbiscuits, puddings etc.

Probiotics & prebiotics ingredient of the company aregaining traction in terms of application in soft drinks, milk-based drinks, milk powder etc.

Company is offering vegetarian ingredient such as soy protein, oat protein, corn protein, rice protein etc. The key target customers for the companyinclude food and dairy product manufacturers For instance, the company offers soy protein as a vegetarian protein to Indian food manufacturers due to higher demand for vegetarian-based foods among

consumers in the country Presently, Sciphar Natural Products Co., Ltd primarily operates in region such as China, Japan and India. However, the company is focusing on increasing its

consumer base in other regions through various agreements with international distributors in Europe, North America, Southeast Asia and Africa.

China Japan

High Medium Low

India


Marathwada Chemical Industries Pvt. Ltd. (1/2)


Headquarter

Aurangabad, India

Employees

500

Key Management

Mr. Madhusudan Rathi

Established

1962

The group operates through three business segments including Marathwada Chemical industries Pvt. Ltd.,Matrix Fine Sciences Pvt. Ltd. and Clean Science and Technology Private Limited

Matrix Fine Science Pvt. Ltd. operates in the nutraceutical business, offering food and feed ingredients, bio-fuels and vitamins

Matrix Fine Science Pvt. Ltd. specializes in extraction of vitamin E (Natural Tocopherol) and primarily caters toneed of food, pharma, nutraceuctical and cosmetics industry

Company Description

Company Website

www.matrixfinesciences.com

Products

Marathwada Chemical Industries Pvt. Ltd.

Company Name


Fatty Acids

Prebiotic & Dietary

FibreProtein Carotenoids

X X X X X X

Company Overview


Marathwada Chemical Industries Pvt. Ltd. (2/2)



Key Strategies

High Medium Low

Company’s vitamin E is one of the essential nutrientsupplements used in nutraceutical products and has higherdemand for application in the functional beverage sector,where it is used as an ingredient in drinks/beverages

Natural Tocopherol is another ingredient offered by thecompany, which finds wide application as a antioxidant invarious industries including food, pharmaceuticals,nutraceuticals and chemicals industry

In 2016, company plans to expand its raw material processing by 800 Mts to cater to growing demand for natural vitamin E and naturalphytosterols from food, feed and pharmaceuticals manufacturers

Company lays greater emphasis on its R&D initiatives so as to keep pace with the modern trends, and cater to growing demand fromconsumers for healthier and innovative products. With its advanced R&D facility, company plans to extract vitamin E from corn andrapeseed.

Source: FMI Analysis, 2016

China Japan

India

Malaysia Indonesia


FENCHEM BIOTEK LTD. (1/2)


Headquarter

Nanjung, China

Employees

300

Key Management

Mr. Xiaogang Feng

Established

1995

FENCHEM BIOTEK LTD. is a global manufacturer of specialty ingredients and product solutions. Its businesssegments include nutritional & health, food & beverage, cosmetics & personal care, feed & pet food, API &agrochem and coating & constructions

Company’s business operations include extraction of raw materials, manufacture of products, offering oftailor-made solutions and solution-based services on a global level

FENCHEM BIOTEK LTD. offers vitamin D, vitamin E, vitamin H and vitamin B under its business segment ofnutrition & health

Company Description

Company Website

www.fenchem.com

Products

FENCHEM BIOTEK LTD.

Company Name


Fatty Acids

Prebiotic & Dietary


X X X X X

Company Overview


FENCHEM BIOTEK LTD. (2/2)



Key Strategies

The company focuses on development of innovativeingredients, tailor-made solutions and specific health relatedsupplements, which it offers through its nutrition & healthbusiness segment Vitamins, antioxidants, amino acids, herbal extracts and

joint health are some key products of Fenchem, whichdelivers health benefits to consumers

Majority of revenue contribution in FENCHEM BIOTEK LTD.business comes from the company’s nutrition & healthsegment, followed by feed & pet food

In 2014, FENCHEM BIOTEK LTD. set up its second sales office in the Southeast Asian region in Thailand, in order to strengthen itspresence in market in this region. Expansion of its business in Thailand has also enabled the company to further develop its businessrelationships and logistic support in Asia market.

In 2014, company launched two new Vitamin E based products, which find wide application in the food and supplements industry dl-alpha tocopheryl acetate 75% powder and d-alpha tocopheryl acetate 950IU powder are the two new products launched in

its product portfolio of vitamins. Intake of these products helps to prevent diseases such as cancer, strokes, cataracts,cardiovascular diseases and also from problems related to ageing.

High Medium LowSource: FMI Analysis, 2016

China

Thailand

Malaysia


Arjuna Natural Extracts Ltd. (1/2)


Headquarter

Alwaye,India

Employees

~300

Key Management

Kunjachan Puthussery Joseph

Established

1992

Arjuna Natural Extracts Ltd. is a manufacturer and exporter of nutraceutical and pharmaceutical products,which include Omega 3, herbal extracts, essential oils and dietary supplements. In India, Arjuna is one of theleading manufacturers of concentrated Omega 3 fatty acids extracted from fish oil.

Company has customer base in over 40 countries. In order to satisfy its global level customers, company alsomeet various global regulations related to production process and product specific market regulations for itsnutraceutical products.

Arjuna Natural Extracts Ltd. offers two forms of Omega-3 fatty acids such as Omega-3 Oil and Omega-3Powder

Company Description

Company Website

www.arjunanatural.com

Products

Arjuna Natural Extracts Ltd.

Company Name


Fatty Acids

Prebiotic & Dietary


X X X X X X

Company Overview


Arjuna Natural Extracts Ltd. (2/2)



Key Strategies


Omega-3 oil of the company witnesses greater demandamong supplement retailers due to its high quality of fattyacids

Omega-3 powder is one of the exclusive products of thecompany, which also finds significant demand among infantfood and food supplement manufacturers

Arjuna Natural Extracts Ltd. focuses on innovation and development of new products to compete with global level players and iscurrently into tie-ups with universities in the U.S., Japan and Australia for research initiatives

Moreover, the company uses indigenous technology in its manufacturing process of Omega 3 fatty acids

India

Japan


NEW ASIA INGREDIENTS PTE LTD. (1/2)


Headquarter

Ang Mo Kio Avenue, Singapore

Employees

N.A.

Key Management

N.A.

Established

1997

NEW ASIA INGREDIENTS PTE LTD. is one of the leading food ingredient companies in Singapore offering awide spectrum of products such as soy protein, functional food gum and food flavours, which are mostlysupplied in Asia Pacific region

NEW ASIA INGREDIENTS PTE LTD. is a recognized brand in the food ingredient market in Singapore, and apartfrom offering food ingredients, the company focuses offers clients services as a food technology consultantand also provided technical consultation to food manufacturers

Company Description

Company Website

www.newasia.com

Products

NEW ASIA INGREDIENTS PTE LTD.

Company Name


Fatty Acids

Prebiotic & Dietary


X X X X X X

Company Overview


NEW ASIA INGREDIENTS PTE LTD. (2/2)



Key Strategies


NEW ASIA INGREDIENTS PTE LTD. produces two varieties ofsoy protein for food manufacturing sector. These include:

Isolated Soy Protein, which is available in two brands:NEWPRO and NEWSOY Series, and Soy ProteinConcentrate, which is available under brand nameNEWCON and NEWSOY Series

Majority of its soy protein ingredients find application inbeverage, dairy-based products, meat processing,nutritional supplements and health care products

The company offers ingredients that are popular with vegetarian consumers. Moreover, the company is focused on offering products cost-effectivelyto consumers

For instance, NEW ASIA INGREDIENTS PTE LTD. launched NEWSOY 460 ingredient as a soy protein ingredient, which has been developed as a meatreplacer for manufacturing veggie food products and also for application where meat textural functional ingredient is required

Apart from this, soy protein is also cost-effective as compared to meat-based products, which ultimately minimizes the production cost of functionalfood products

China

Singapore Malaysia

Indonesia

Thailand


Shandong Yuwang Industrial Co., Ltd. (1/2)


Headquarter

Shandong, China

Employees

~1000

Key Management

Liu Xiqian

Established

1999

Shandong Yuwang Industrial Co., Ltd. is part of a group of companies, which operates through four differentindustries: soybean processing, bio-pharmaceuticals, fine chemicals and advanced carbon/ceramic materials

The company currently has nine factories, one research station, one technology centre, two engineeringresearch centres and 20 sales subsidiaries

Company is one of the leading player in the soy protein market, and currently has capacity of producing100,000 tonnes of isolated soya protein

Company Description

Company Website

www.yuwangcn.com

Products

Shandong Yuwang Industrial Co., Ltd.

Company Name


Fatty Acids

Prebiotic & Dietary


X X X X X

Company Overview


Shandong Yuwang Industrial Co., Ltd. (2/2)



Key Strategies


Shandong Yuwang Industrial Co., Ltd. has divided its soyprotein products in four different categories, which furthercomprises 15 types of products Demand for company’s soy protein products is higher than

that for functional food and nutritional products Principal applications of its soy protein brands is in dairy,

bakery, confectionery, beverage, frozen foods, vegetarianfood and meat-based products

Company is focused towards product development and product innovation. Yuwang offers gel type soy protein-based ingredient, whichis widely accepted by domestic as well as international customers due to its unique quality of retaining water and comprehensiveupgrade of its soya oil

In terms of both value and volume, Shandong Yuwang Industrial Co., Ltd. is ranked first in the China soya protein industry. Reasonbehind its higher revenue share in the Chinese market is due to its advanced R&D systems, tailored solutions, specialized post-doctoralworking station and provincial technology centre for soy protein products.

China

Malaysia

India


Supreem Pharmaceuticals Mysore Pvt. Ltd. (1/2)


Headquarter

Mysore, India

Employees

100+

Key Management

Mr. S N Rao

Established

1985

Supreem Pharmaceuticals Mysore Pvt. Ltd. is one of the leading manufacturers of vitamins, minerals andnutraceuticals products, and has expertise of over 30 years in processing and stabilizing of vitamins,pharmaceuticals, herbal extracts & formulations, food supplements and minerals

Company supplies over 92 products to pharmaceutical and food industries and operates its business in morethan 20 countries worldwide

Continuous participation of Supreem in international exhibitions is creating good brand recognition in thenutraceutical industry of India

Company Description

Company Website

www.supreempharma.in

Products

Supreem Pharmaceuticals Mysore Pvt. Ltd.

Company Name


Fatty Acids

Prebiotic & Dietary


X X X X

Company Overview


Supreem Pharmaceuticals Mysore Pvt. Ltd. (2/2)



Key Strategies


Vitamins, sodium, calcium and protein are the three primaryproducts Supreem Pharmaceuticals offers in the food industry Sodium Caseinate is one of the company’s specialty

products, which include high quality milk protein content. Itfinds application in bakery products, ice creams, meat,dietary supplements and also in meat-based products.

Protein is another product which finds high demand forapplication in dairy, bakery, confectionery and dieteticproducts

Supreem Pharmaceuticals Mysore Pvt. Ltd. is focused towards R&D, due to which the company has developed in-house ingredients forapplication in the food industry Sodium Caseinate and Calcium Caseinate are two in-house developed products, which has a variety of applications in functional

food products These products have some unique characteristics such as higher solubility, water absorption capacity, good foaming capability

and can be used as an emulsifier and stabilizer

China

Malaysia

India

Japan

Singapore

Indonesia


Bio Actives Japan Corporation (1/2)


Headquarter

Tokyo, Japan

Employees

200+

Key Management

Faizal Mohamed

Established

2006

Bio Actives Japan Corporation manufactures and supplies food and functional food ingredients and thecompany’s business is divided into three product categories: nutritional ingredients, natural flavours andnatural colours

Company has further categorized its nutritional ingredient segment as per the health benefits and accordingto which it offers specialized products Nutritional ingredients are categorized in a different division such as weight management, antioxidants, eye

care, brain health, men’s care, joint care, women’s care and others

Company Description

Company Website

www.bioactives.co.jp

Products

Bio Actives Japan Corporation

Company Name


Fatty Acids

Prebiotic & Dietary


X X X X X X

Company Overview


Bio Actives Japan Corporation (2/2)



Key Strategies


Bio Actives Japan Corporation offers its products at regionaland global levels, including food and beverages, dairy,confectionery and supplement industry

Omega-3 fatty acids of the company witnesses greater demandfrom Europe and U.S. based companies. The company offersbreakfast cereals, edible oils, beverages etc.

Bio Actives Japan Corporation is focused towards its client base in the food and beverages industry. Omega-3 fatty acid of the company isonly available in powdered form, and provides various health benefits.

Company was awarded by the Department of Scientific and Industrial Research (DSIR), Government of India, for its contribution indevelopment of natural active ingredient.

India

Japan

Thailand


Global Specialty Ingredients (M) Sdn. Bhd. (GSI) (1/2)


Headquarter

Selangor, Malaysia

Employees

N.A.

Key Management

Robert Basker

Established

2005

Global Specialty Ingredients (M) Sdn. Bhd. (GSI) offers an extensive range of functional food ingredients,specialty ingredients and natural food ingredients to food as well as non-food industries. The company alsooffers product solutions and tailored services to its customers.

Currently, over 13 types of products are available in GSI’s broad product portfolio of food and functionalingredients, and it supplies these products in Malaysia, Southeast Asia, Asia Pacific, Middle East, EasternEurope, Africa, Latin America and Europe

GSI’s product portfolio includes functional emulsifiers, functional food ingredients, processing aidsand absorbents, antioxidant, antimicrobials & preservatives, chocolates, stabilizers, thickeners,texturizers, colors, flavours, vitamins, enzymes, essential oils, sweeteners etc.

Company Description

Company Website

www.gsi-worldwide.com

Products

Global Specialty Ingredients (M) Sdn. Bhd.

Company Name


Fatty Acids

Prebiotic & Dietary


X X X X X

Company Overview


Global Specialty Ingredients (M) Sdn. Bhd. (2/2)



Key Strategies


Global Specialty Ingredients (M) Sdn. Bhd. is one of thepremium food ingredient manufacturers and distributors inMalaysia, and offers its products primarily to bakery, dairy,snacks, meat processing, beverages, biodiesel, vegetable oilsand fats, chemicals, and personal care product manufacturingcompanies

Vitamin A, C, D, E and mineral blends of GSI are some of themajor functional ingredient products used in the food andbeverage industry, for fortification of oils and fats and inpreparation of infant food

Company is focused towards showcasing its ingredients in Asia pacific region in order to strengthen its regional footprint

For promotion and awareness of its functional food ingredients in Asia Pacific region, Global Specialty Ingredients (M) Sdn. Bhd.participates in various food and food ingredient exhibitions such as India Food Exhibition 2016, Bangalore, India, Food Ingredients2016, New Delhi, India, Pro Food & Pack 2016, Colombo, Sri Lanka, PIPOC 2015 Kuala Lumpur, Malaysia etc.

Malaysia

India

Indonesia


Excellent Health Products Co., Ltd. (EHP) (1/2)


Headquarter

Jiangsu, China

Employees

~50

Key Management

Victor Wan

Established

2012

Excellent Health Products Co., Ltd (EHP) offers a broad spectrum of raw ingredients required innutritional supplements, pharmaceuticals industry and dietary supplements. Company also offersspecialized services related to research in health-based food products.

EHP exports over 90% of its products to foreign markets, and only 10% of its products are offered inthe Chinese market. Company exports its products to the Americas, Africa, Eastern Europe, WesternEurope, the Middle East, and Asia and Oceania region.

Company Description

Company Website

www.sino-excellent.com

Products

Excellent Health Products Co., Ltd.

Company Name


Fatty Acids

Prebiotic & Dietary


X X X X

Company Overview


Excellent Health Products Co., Ltd. (2/2)



Key Strategies


Excellent Health Products Co., Ltd has wide product portfolio ofraw materials and products related to nutraceuticals, herbalextracts, biological products and dietary supplement products In its functional food ingredient range product range, EHP

offers 28 different varieties of vitamins, 7 varieties of naturalcarotenoids and Omega-3 fatty acids

Vitamins of EHP find application in the food industry, dietarysupplements, pharmaceutical and cosmetics. O

Company is primarily focused towards development and innovation of new products, as currently the company is emphasizing oningredients required in supplements, which is especially related to health care Carotenoids, Vitamin C and Omega-3 fatty acids are the three main ingredients on which currently EHP is focusing, as these

products witness higher demand for application in functional food product due to increasing health conscious consumers The reason behind greater emphasis on these ingredients is because of increasing ageing population in developing economies as

intake of these ingredients provide health benefits such as improving eyesight, minimizing risk of cataract, prevention of heart-related issues, cholesterol and other cardiovascular diseases

China

India


Competitive Landscape – By Product

Section 16


Competition Dashboard (1/2)

Key Players Nestlé S.A. PepsiCo, Inc. ConAgra Foods, Inc. Kellogg Company Yakult Honsha Co.,

Ltd.

Headquarter Vevey, Switzerland New York, U.S. Chicago, U.S. Michigan, U.S. Tokyo, Japan

Employees 3,35,000 2,63,000 33,000+ 29,790 2,872

Established 1905 1965 1971 1922 1955

Revenue US$ 928, 47.1 Mn US$ 63,056.0 Mn US$ 15,832 Mn US$ 13,525 Mn US$ 3075.6 Mn

Product TypeBeverages, Dairy

Products, Infant FoodFood & Beverages Food Food

Beverage & Dairy Products

Brands

Meritene, Boost, Modulen, Vitaflo,

Nesfluid, Isosource, Optisource

Quaker Oats, Gatorade, Tropicana

Aleia Side Meals, Ranch Style Beans,

Hunt’s, Sundrop Oils, Health choice Meals

Raisin Bran, All-Bran, Smart Start, Raisin

Wheat, Optivita

Yakult Ace, Chosei Tonyu

Kokusandaizu Shiyo, Yakult Nyusankin Soy, Gyutto Kenko, Pretio

Presence

North America North America North America North America North America

Latin America Latin America Latin America Latin America Latin America

Europe Europe Europe Europe Europe

Asia Pacific Asia Pacific Asia Pacific Asia Pacific Asia Pacific

Middle East & Africa Middle East & Africa Middle East & Africa Middle East & Africa

High Medium LowSource: FMI, 2016


Competition Dashboard (2/2)

Key Players Danone SAMeiji Holdings Co.,

Ltd.The Coca-Cola Co.

Tata Global Beverages Ltd.

General Mills, Inc.

Headquarter Paris, France Tokyo, Japan Georgia, U.S. Kolkata, India Minneapolis, U.S.

Employees 99,781 16,456 1,23,000 3,000 42,000

Established 1919 2009 1919 1962 1866

Revenue US$ 24,317.2 Mn US$ 9,705 Mn US$ 44,294 Mn US$ 1,275.3 Mn US$ 17,630 Mn

Product Type Dairy Products Dairy Products Beverage BeverageFood & Dairy

Products

Brands

Danonino, Oikos, Prostokvashino, Activia, Actimel

Meiji Probio Yogurt, Meiji Probio Yogurt

Drink

Powergrade, Fuze, Core Power,

Vitaminwater

Tata Water Plus, Tetley, Tata Gluco

Plus

Cheerios, Yoplait, Nature Valley

Presence

North America North America North America North America North America

Latin America Latin America Latin America Latin America

Europe Europe Europe Europe Europe

Asia Pacific Asia Pacific Asia Pacific Asia Pacific Asia Pacific

Middle East & Africa Middle East & Africa Middle East & Africa Middle East & Africa

Source: FMI, 2016 High Medium Low


Nestlé S.A. (1/3)

Company Overview


Headquarter

Employees (2015)

CEO & President

Revenue (2015)

Vevey, Switzerland

www.nestle.com

1905

3,35,000

Mr. Paul Bulcke

Brands

Meritene ModulenBoost

Nesfluid Isosource

Nestlé S.A. is a leading nutrition, health and wellnessproducts company, offering products in seven differentcategories: powdered and liquid beverages, nutritionand health science, milk products and ice cream,prepared dishes and cooking aids, pet care,confectionery and water

Company offers products and health solutions in 189countries globally, and is currently expanding its productofferings into developing countries

Nestlé Health Science brand of the company is focusedtowards development of functional food, health careproducts and nutritional products

Website)

Established

US$ 928,47.1 Mn

Vitaflo

Optisource


Nestlé S.A. (2/3)

Key Developments

In 2015, Nestlé Malaysia launched Nestlé Omega Plus ready–to- drink UHT milk. This product is enriched with omega,aciticol, calcium and plant sterol and cholesterol levels inthe human body and alleviate risk of coronary heartdiseases.

In 2011, the company launched Nestlé ACTIPLUS yogurt forIndian consumers, developed from probiotics ingredient,which support healthy digestion and prevents constipation


Geographic Presence, 2015

High, Medium, Low

Key Strategy

Nestlé S.A. is inclined towards innovation in product development and primarily focuses on functional food products that are rich invitamins and minerals

In 2015, the company launched BOOST Calorie Smart – a next generation nutrition drink enriched with 25 vitamins and added minerals, andenriched with extra calcium and vitamin D, which helps to maintain bone health. This product was specially launched to target adults to helpthem to meet daily nutritional intake.

Company is focused towards manufacturing value-added food products in order to cater to the evolving demand for food productsthat include functional ingredients

In 2010, the company announced plans to invest US$ 500 Mn in its new business venture “Nestlé Health Science”. This business venture istotally focused towards development of those food products, ingredients and supplements, which help to prevent consumers fromcardiovascular diseases, cholesterol, obesity, diabetes, blood pressure and Alzheimer disease.

North America

Latin America

Middle East & Africa

Europe

Asia Pacific


Nestlé S.A. (3/3)

11 19.2 7 8.1

6.77

12.22

4.33 4.54

0

2

4

6

8

10

12

14

0

5

10

15

20

25

2012 (A) 2013 (A) 2014 (A) 2015 (A)

Operating Margin (%) Net Margin (%)

Operating and Net Margin, 2012–2015 (%)




Key Ratios (Based on Latest Filings)

December2012

December2013

December2014

December2015

Revenue (US$ Mn) 101,487.2 97,919.1 104,259.4 92,847.1

Operating Income (US$ Mn)

15,314.8 13,852.6 12,376.3 12,975.7

Net Income (US$ Mn) 11,664.2 10,616.3 16,406.4 9,480.7

Operating Margin % 15.1 14.1 11.9 14.0

Gross Margin % 47.6 47.9 48.2 49.6

Tax Rate % 25.6 26.1 32.7 28.0

Net Margin % 11.4 10.8 15.7 10.2

Return on Invested Capital %

13.1 11.9 16.7 10.7

Asset Turnover (Average)

0.7 0.7 0.7 0.6

21.6%

16.8%16.4%14.2%

13.0%

10.0%

8.0%Powdered & Liquid Beverages

Nutrition & Health Science

Milk Products & Ice cream

Prepared Dishes & Cooking Aid

Petcare

Confectionery

Water

Business segment


PepsiCo, Inc. (1/3)

Company Overview


Headquarter

Employees (2015)

CEO & President

Revenue (2015)

New York, U.S.

www.pepsico.com

1965

2,63,000

Ms. Indra K Nooyi

Brands

Quaker Oats Gatorade

PepsiCo. Inc. manufactures and markets foods, snacksand beverages under the following brands: Frito-Lay,Quaker Oats, Tropicana, Gatorade, Pepsi, Mountain Dewand many others

Quaker Oats, Gatorade and Tropicana are some of itsbrands which offer functional food products withvarious health benefits

Company offers breakfast cereals and snacks under itsbrand Quaker Oats and sports drinks and food productsunder brand The Gatorade Company, Inc.

Website)

Established

US$ 63,056 Mn

Tropicana


PepsiCo, Inc. (2/3)

Key Developments

In 2015, PepsiCo Inc. opened its first manufacturing plant ofQuaker Oats in China and offers a variety of productsincluding Quaker cereal powder drink, instant oats, mealsetc.

In 2015, the company launched fruit and vegetable juiceunder its new essentials range, which is enriched withvitamins and minerals and extra vitamin C and zinc.Tropicana Essential helps in maintaining a healthy immunesystem.



High, Medium, Low

Key Strategy

The company is focused on research & development and product innovation, and on setting up innovation centres with advancedtechnologies and equipment to drive revenue growth

In 2015, the company invested US$ 715 Mn in R&D to expand its product portfolio for food, drinks and snacks and launched various newproducts under its brand Quaker grains (Quaker Oats), fruits and vegetable juice (Tropicana), sports nutrition (Gatorade) and juices andsmoothies (Naked Juice) to cater to changing needs of health conscious consumers

In 2012, PepsiCo, Inc. opened its most integrated R&D centre in China to leverage new untapped opportunities with regard to food andbeverages, and also to accelerate its growth in markets in China and other Asian countries

North America

Latin America


Europe

Asia Pacific


PepsiCo, Inc. (3/3)

13.9 14.6 14.4 13.2

9.4

10.1

9.7

8.6

7.5

8

8.5

9

9.5

10

10.5

12.5

13

13.5

14

14.5

15

2012 (A) 2013 (A) 2014 (A) 2015 (A)







December2012

December2013

December2014

December2015

Revenue (US$ Mn) 65,492 66,415 66,683 63,056


9,112 9,705 9,581 8,353

Net Income (US$ Mn) 6,178 6,740 6,513 5,452


Gross Margin % 52.2 53.0 53.7 55.0

Tax Rate % 25.1 23.6 25.1 26.0

Net Margin % 9.4 10.1 9.7 8.6


13.8 14.0 14.2 13.3


0.8 0.8 0.9 0.9

53.0%47.0%

Food

Beverages

Business segment


ConAgra Foods, Inc. (1/3)

Company Overview


Headquarter

Employees (2015)

CEO & President

Revenue (2015)

Chicago, U.S.

www.conagrafoods.com

1971

33,000+

Mr. Sean Connolly

Brands

Health choice Meals

Hunt’sRanch Style

Beans

Sundrop Oils

Aleia Side Meals

ConAgro Foods, Inc. offers processed and packaged foodproducts and operates in both the consumer as well asthe commercial food segment

Company offers a wide range of products includingfrozen food, snacks, heart health food, dietary food,nutritional bars, frozen meals and nutritional as well ashealthy living food

Currently, the company is emphasizing on nutrition andhealth food, and a vast majority of new productslaunched by the company over the past fie years fallunder the health and nutrition category

Website)

Established

US$ 15,832 Mn



Key Developments

In 2013, ConAgra Foods, Inc. launched Sundrop Heartlite oil inIndia, which contains omega 3, omega 6 and vitamins E andthese functional ingredients helps to manage cholesterol,increase immunity, makes skin healthy and are also essentialfor biological functions



High, Medium, Low

Key Strategy

ConAgra Foods, Inc. is focused on expansion through acquisition of various private brands in the breakfast cereals, snacks, bars,meals segment, and also brands related to bakery products

In 2015, the company acquired Blake’s All Natural Foods, in order to enhance its presence in the natural and organic meals space

Company is focused towards expanding its footprint in the market in Asia Pacific in order to cater to growing demand for functionalfood products

In Asia, ConAgra Foods, Inc. sells its product Wesson Canola Oil, which offers best nutritional balance and has ability to minimize risks relatedto cardiovascular and coronary heart diseases

North America

Latin America


Europe

Asia Pacific



6.3 9.2 5.4

-1

3.52

4.99

1.7

-1.61

-2

0

2

4

6

-2

0

2

4

6

8

10

2012 (A) 2013 (A) 2014 (A) 2015 (A)







May2012

May2013

May2014

May2015

Revenue (US$ Mn) 13,236 15,491 17.703 15,832


829 1,424 955 (163)

Net Income (US$ Mn) 467 773 303 (252)

Operating Margin % 6.3 9.2 5.4 (1.0)

Gross Margin % 21.3 23.0 21.0 20.9

Tax Rate % 31.3 34.84 51.7 -

Net Margin % 3.5 4.9 1.7 -1.6


7.9 8.5 3.76 -0.2


1.1 0.9 0.8 0.8

46.1%

28.2%

25.7%

Consumer Foods

Commercial Foods

Private Brands

Business segment


Kellogg Company (1/3)

Company Overview


Headquarter

Employees (2015)

CEO & President

Revenue (2015)

Michigan, U.S.

www.kelloggs.com

1922

29,790

Mr. John A Bryant

Brands

Kellogg’s Raisin Bran

Kellogg’s Optivita

Kellogg’s Smart Start

Kellogg’s Raisin Wheat

Kellogg Company offers ready-to-eat and conveniencefood products, including cereals, toaster pastries, warmbreakfasts, bars, crackers, beverages and fruit flavoredsnacks

Company sells its products in over 180 countries undervarious brands such as Kellogg’s, Corn Flakes, Nutri-Grain, Pop-Tarts, Eggo and many others

Currently, the company is focusing on offering healthierand nutritious breakfast and various functional foodproducts, which help to safeguard against cardiovasculardiseases, diabetes and blood pressure

Website)

Established

US$ 13,525 Mn

Kellogg’s All-Bran



Key Developments

In 2010, Kellogg India launched “Heart to Heart” Oats in itsbreakfast cereal category. This product was specially launchedto target heart health conscious consumers in India as itreduces cholesterol and blood pressure levels.



High, Medium, Low

Key Strategy

Company primarily adopts branding strategies for its functional food products in developing countries by focusing on heart healthfood products

In 2012, the company unveiled a new logo “Heart Healthy Selection” specially for heart health cereals so that consumers can easilyrecognize heart-healthy breakfast food. It also helps to easily attract health conscious consumers as the logo indicates that the product is arich source of fibre, low in saturated fats, low in cholesterol and reduces risk of cardiovascular diseases.

Company focuses on joint ventures in order to expand its geographical presence in the Chinese breakfast and cereals market

In 2012, the company signed a 50:50 joint agreement with Wilmar International Limited, under which Wilmar International Limited will useKellogg’s and Pringles brands of Kellogg Company

North America

Latin America


Europe

Asia Pacific



11 19.2 7 8.1

6.77

12.22

4.33 4.54

0

2

4

6

8

10

12

14

0

2

4

6

8

10

12

14

16

18

20

2012 (A) 2013 (A) 2014 (A) 2015 (A)



Source: Company Website Source: Company Website


December2012

December2013

December2014

December2015

Revenue (US$ Mn) 14,197 14,792 14,580 13,525


1,562 2,837 1,024 1,091

Net Income (US$ Mn) 961 1,807 632 614


Gross Margin % 38.3 41.3 34.7 34.6

Tax Rate % 27.4 30.3 22.5 20.5

Net Margin % 6.7 12.2 4.3 4.5


12.7 18.5 7.5 7.9


1.0 0.9 0.9 0.8


Yakult Honsha Co., Ltd. (1/3)

Company Overview


Headquarter

Employees (2015)

CEO & President

Revenue (2015)

Tokyo, Japan

www.yakult.co.jp

1955

2,872

Mr. Sumiya Hori

Brands

Yakult AceYakult

Nyusankin Soy

Chosei TonyuKokusandaizu

Shiyo

Gyutto Kenko

Pretio

Yakult Honsha Co., Ltd. operates through three differentbusiness sectors: food and beverage products,cosmetics and pharmaceuticals

Company offers functional food products in its food andbeverage product segment, which includes dairyproducts, noodles, juices and soft drinks, and serves 33countries globally

Yakult Honsha Co., Ltd. is the pioneer in probiotics andits ingredients find wide application in dairy productsand also in products that enable maintenance of health

Website)

Established

US$ 3,075.6 Mn



Key Developments

In 2015, company set up its production plant of dairyproducts in China to leverage the untapped opportunitiesarising from increasing awareness regarding personal healthand benefits probiotics offer.

In 2014, Yakult Honsha Co., Ltd. launched its secondmanufacturing plant for producing fermented milk productsin Indonesia to expand its business in the country



High, Medium, Low

Key Strategy

The company lays strong emphasis on R&D initiatives, especially on research related to probiotics and its uses

In 2015, Yakult Honsha Co., Ltd. launched ferment milk highly enriched with Lactobacillus casei, which helps to reduce risk of diseasesrelated to constipation and digestion

Yakult Honsha Co., Ltd. is planning to enter into the market in Southeast Asia and Middle East and to expand its consumer base inother countries of the world

By the end of 2016, the company plans to start production and sales in Myanmar, with sales offices in Dubai, as these countries representsignificantly high market potential, and also have been achieved considerable economic growth in the recent past

North America

Latin America

Europe

Asia Pacific



6.7 7.2 9.1 9.5

4.2

5.1

6.4

6.8

0

1

2

3

4

5

6

7

8

0

1

2

3

4

5

6

7

8

9

10

2012 (A) 2013 (A) 2014 (A) 2015 (A)




March2012

March 2013

March 2014

March 2015

Revenue (US$ Mn) 3,798.5 3,386.5 3,407.1 3,075.6


252.9 244.7 311.4 291.6

Net Income (US$ Mn) 211.2 206.1 263.2 255.1


Gross Margin % 54.4 53.8 55.4 55.2

Tax Rate % 3.0 30.4 31.4 32.3

Net Margin % 4.2 5.1 6.4 6.8


4.2 4.9 5.9 5.6


0.8 0.8 0.7 0.6



Danone SA (1/3)

Company Overview


Headquarter

Employees (2015)

CEO & President

Revenue (2015)

Paris, France

www.danone.com

1919

99,781

Mr. Emmanuel Faber

Brands

Activia

OikosDanonino

Prostokvashino

Danone SA operates in the food processing sector andoffers products through divisions such as Fresh DairyProducts, Waters, Early Life Nutrition and MedicalNutrition

Company is operating its business across 120 countriesand consumers in European and Asian markets are themajor source of its sales revenue

Through its fresh dairy product segment, Danaone SAoffers probiotic drinks and functional ingredient-basedproducts including milk, yogurt, cream, infant food andvarious other dairy products. The company realizesaround 50% of its total revenues from its fresh dairyproduct segment.

Website)

Established

US$ 24,317.2 Mn

Actimel


Danone SA (2/3)

Key Developments

In 2011, Danaone SA launched its yogurt product Activia inIndia, especially for health conscious consumers, as it is aprobiotic dairy product, which helps to manage cholesterollevels in the body



High, Medium, Low

Key Strategy

Danaone adopts acquisitions and joint ventures as a strategy as it enables the company to focus on product innovation and brandrecognition in order to expand its presence in the market in China

In 2014, Danone SA acquires 25% stake in Yashili International – a Chinese infant formula firm – in order to expand and strengthen itspresence in the Chinese infant food market. The company has also invested a substantial amount in its business operations to increase itsproduction capacity, update and adopt advanced technologies and to increase the number of distribution channels in the country.

In 2013, Danaone signed a joint venture agreement with COFCO, China, for the production of dairy-based products, including probioticyogurt and Danaone Activia brand. This joint venture enables the company to build its strong leadership position in the dairy sector and alsoto unlock new potential related to functional foods in the country.

North America

Latin America

Europe

Asia PacificMiddle East and Africa


Danone SA (3/3)

13.2 10 10.2 9.9

8.01

6.6

5.2 5.7

0

2

4

6

8

10

0

2

4

6

8

10

12

14

2012 (A) 2013 (A) 2014 (A) 2015 (A)






49.3%

22.3%

21.3%

7.1% Fresh dairy products

Waters

Early life nutrition

Medical nutrition

Business segment


December2012

December2013

December2014

December2015

Revenue (US$ Mn) 27,834.7 27,296.2 29,076.4 24,317.2


3,663.9 2,727.31 2,957.9 2,397.8

Net Income (US$ Mn) 2,230 1,822.4 1,538.8 1,390.9


Gross Margin % 50.1 48.5 47.7 50.0

Tax Rate % 29.1 32.3 32.5 32.5

Net Margin % 8.01 6.6 5.2 5.7


13.7 13.5 6.2 6.4


0.7 0.7 0.6 0.7


Meiji Holdings Co., Ltd. (1/3)

Company Overview


Headquarter

Employees (2015)

CEO & President

Revenue (2015)

Tokyo, Japan

www.meiji.com

2009

16,456

Mr. Masahiko Matsuo

Brands

Meiji Probio Yogurt Drink

Meiji Probio Yogurt

Meiji Holdings Co., Ltd. offers food and pharmaceuticalproducts. In its group, the company operates twocompanies: Meiji Co., Ltd. (Food Business) and MeijiSeika Pharma Co., Ltd., (Pharmaceutical Business).

Through its food segment, the company offers dairy,milk, ice cream, yogurt, confectionery, beverage andhealth food products

Majority of the company’s food products are sold inmarkets in Asia Pacific and the U.S. Over 85% of itsrevenue comes from its food segment business.

Website)

Established

US$ 9,705 Mn



Key Developments

In 2011, Meiji Holdings Co., Ltd. Set up its dairy manufacturingplant in the high potential dairy market of China to offer milk,yogurt and other dairy-based products, and to enhanceconsumer base



High, Medium, Low

Key Strategy

Meiji Holdings Co., Ltd. focuses on broadening its product portfolio of dairy products to meet the robust demand for functional foodproducts from the Asia Pacific market

In 2015, the company launched two new functional yogurts containing lactobacillus: Meiji Probio Yogurt PA-3 and Meiji Probio Yogurt PA-3Drink. These products were specially launched to target consumers who are more concerned towards purine intake.

North America Europe




1.8 2.3 3.2 4.4

0.6

1.41.6

2.6

0

0.5

1

1.5

2

2.5

3

0

1

2

3

4

5

2012 (A) 2013 (A) 2014 (A) 2015 (A)






87.8%

12.2%Food Segment

PharmaceuticalSegment

Business segmentKey Ratios (Based on Latest Filings)

March2012

March2013

March2014

March2015

Revenue (US$ Mn) 13,481.2 11,952.1 11,165.8 9,705.0


245.4 274.3 354.9 430.8

Net Income (US$ Mn) 85.6 178.7 184.7 263.0


Gross Margin % 33.4 34.0 34.3 34.7

Tax Rate % 51.6 33.1 43.6 35.3

Net Margin % 0.6 1.4 1.6 2.6


1.6 3.4 3.8 5.6


1.5 1.4 1.4 1.4


The Coca-Cola Co. (1/3)

Company Overview


Headquarter

Employees (2015)

CEO & President

Revenue (2015)

Georgia, U.S.

www.coca-colacompany.com

1919

123,000

Mr. Muhtar Kent

Brands

Core Power

Powergrade

The Coca-Cola Co. is one of the leading beveragecompanies, offering a robust product portfolio of over500 brands in global markets

Currently, the company serves beverages in more than200 countries and its beverages are available in differentvarieties such as reduced calorie value, low or no-calorieoptions

Brands of beverages include Diet Coke, Sprite, Coca-ColaZero, Minute Maid, Georgia etc., and in its functionalbeverage product portfolio, the company offers brandssuch as Powergrade, Corepower, Vitamin water,Oadwalla and Fuze

Website)

Established

US$ 44,294 Mn

Fuze

Vitaminwater



Key Developments

In 2015, the company established its 45th production facility inNorthern China in order to cater to the growing demand fromthe market in China and enhance consumer experience in thecountry

In 2013, the company launched innovative product Nutriboostin the Indonesia market, under its Minute Maid brand, whichis a beverage combination of milk and juice rich in vitaminsand calcium, and helps to maintain bone density, tissueformation and offers various other health benefits



High, Medium, Low

Key Strategy

The Coca Cola Co. adopts acquisitions and investment strategies to drive sales, innovation and to enhance consumer base. Thecompany also acquires various brands in the beverages market in order to expand its product portfolio of functional drinks.

In 2015, the company acquired Xiamen Culiangwang Beverage Technology Co., Ltd. of China, as the company manufactures plant-basedprotein drinks. The strategy behind this acquisition, is to offer a diverse range of plant-based protein drinks to consumers in China, as thecountry is one of the fastest growing market for these products.

In 2015, the company announced its strategic investment in Monster Beverage Corporation, which is an energy drink manufacturer, in orderto expand its business in the global energy drinks market



Latin America



22.4 21.8 21.1 19.7

18.718.3

15.4

16.6

0

2

4

6

8

10

12

14

16

18

20

18

18.5

19

19.5

20

20.5

21

21.5

22

22.5

23

2012 (A) 2013 (A) 2014 (A) 2015 (A)



Operating and Net Margin, 2012–2015 (%)Key Ratios

(Based on Latest Filings)

December

2012December

2013December

2014December

2015

Revenue (US$ Mn) 48,017 46,854 45,998 44,294


10,779 10,228 9,708 8,728

Net Income (US$ Mn) 9,019 8,584 7,098 7,351


Gross Margin % 60.3 60.7 61.1 60.5

Tax Rate % 23.0 24.8 23.6 23.3

Net Margin % 18.7 18.3 15.4 16.6


4.2 12.5 9.8 10.6


0.5 0.5 0.5 0.4


Tata Global Beverages Ltd. (1/3)

Company Overview


Headquarter

Employees (2015)

CEO & President

Revenue (2015)

Kolkata, India

www.tataglobalbeverages.com

1962

3,000

Mr. Ajoy Kumar Misra

Brands

Tata Gluco Plus

Tata Water Plus

Tata Global Beverages Ltd. operates through threebeverage segments: tea, coffee and water. Currently, itsproduct portfolio comprises Tata Tea, Tetley, Vitax,Himalaya, Grand Coffee and other international brandsof tea and coffee.

Company has brand presence in 40 countries andmajority of company’s revenue is generated frommarkets in Europe and Asia Pacific

Tata Global Beverages Ltd. is a leading tea company inthe world, and its tea business accounts 45% of its totalrevenue

Website)

Established

US$ 1,275.3 Mn

Tetley



Key Developments

In April 2016, Tata Global Beverages Ltd. brand launched threefunctional tea products: Tetley Super Green Tea Heart forhealthy heart, Tetley Super Green Tea Detox for detoxingsupplement selenium and Tetley Super Green Tea Beauty forhealthy complexion

In 2012, the company formed a 50:50 joint venture withPepsiCo India to launch nutrient water- Tata Water Plus. Theproduct is available in two different variants including Zincand Chromium, and offers health benefits such asstrengthening immune system and improving overall health.



High, Medium, Low

Key Strategy

In order to cater to increasing demand for beverages enriched with vitamin and nutrients, the company launched fortified drinks,following in-depth research and use of advanced technological for research

In 2013, Tata Global Beverages Ltd., through a joint venture with Tornante Company, launched innovative fortified drink – Activate – whichis based on cap-dosing technology





7.3 9 9.1 6.2

5.3 5

6.2

3.1

0

1

2

3

4

5

6

7

0

2

4

6

8

10

2012 (A) 2013 (A) 2014 (A) 2015 (A)






74.0%

25.0%

1.0%

Tea

Coffee

Other

Business segmentKey Ratios (Based on Latest Filings)

December

2012December

2013December

2014December

2015

Revenue (US$ Mn) 1,291.4 1,344.9 1,292.5 1,275.3


94 121.6 118 79.6

Net Income (US$ Mn) 68.3 68.2 80.2 39.5


Gross Margin % 45.7 50.9 51.0 51.4

Tax Rate % 24.7 25.7 26.1 43.1

Net Margin % 5.3 5.0 6.2 3.1


8.3 7.9 9.0 4.3


0.83 0.86 0.83 0.82


General Mills, Inc. (1/3)

Company Overview


Headquarter

Employees (2015)

CEO & President

Revenue (2015)

Minneapolis, U.S.

www.generalmills.com

1866

42,000

Mr. Kendall J Powell

Brands

Nature Valley

Cheerios

General Mills, Inc. operates in the business ofmanufacturing and marketing of consumer food productsand sells its products in over 100 countries globally

Product portfolio of the company includes meals, cereals,snacks, baking products, yogurt and many others

Company offers an extensive range of functional foodproducts, targeting consumes seeking preventivemeasures related to cardiovascular diseases, cognitivefunction, healthy cholesterol levels, weight managementetc.

Website)

Established

US$ 17,630 Mn

Yoplait



Key Developments

In 2015, General Mills, Inc. launched its brand Yoplait Yogurtin China, as yogurt is one of the most preferred dairy productsamong Chinese consumers due to various health benefits

In 2014, Cheerios launched two new breakfast cerealproducts: Cheerios Protein Oats & Honey and CheeriosProtein Honey & Cinnamon. These products are enriched withvitamins, minerals and proteins, which helps to maintainhealthy cholesterol levels and reduce risk of heart diseases.



High, Medium, Low

Key Strategy

General Mills, Inc. offers new and innovative product, targeting middle-class consumers in emerging market of China, India andIndonesia

In 2014, the company established its innovation centre in China, which focuses on development of high-quality products including yogurt,premium ice cream, snacks, cereals, convenient meals and many other products

In 2014, the company announced plans to expand its business into various other cities in China to consistently meet demand for associatedproducts among consumers in the country


Asia Pacific

Latin America



15.4 16 16.5 11.8

9.410.4 10.1

6.9

0

2

4

6

8

10

12

0

5

10

15

20

2012 (A) 2013 (A) 2014 (A) 2015 (A)






19.2%

16.7%15.9%

15.7%

10.6%

10.6%

5.3% 4.4% 1.5% Snacks

Yogurt

Convenient Sales

Cereal

Dough

Baking mies and ingredients

Vegetables

Super-premium ice cream

Other

Business segmentKey Ratios

(Based on Latest Filings)May2012

May 2013

May 2014

May 2015

Revenue (US$ Mn) 16,658 17,774 17,909 17,630


2,562 2,852 2,957 2,077

Net Income (US$ Mn) 1,567 1,855 1,824 1,221


Gross Margin % 36.3 36.1 35.6 33.7

Tax Rate % 32.1 29.2 33.2 33.3

Net Margin % 9.4 10.4 10.1 6.9


13.3 14.6 13.5 9.6


0.84 0.81 0.78 0.78


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Asia Pacific Functional Food Ingredients Market - Vitafoods ...

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