Global Refined Functional Carbohydrates Market - 2023-2030

Overview

Global Refined Functional Carbohydrates Market reached US$ 223.03 million in 2022 and is expected to reach US$ 344.8 million by 2030, growing with a CAGR of 5.6% during the forecast period 2023-2030.

The market for refined functional carbohydrates has experienced notable growth and innovation in recent years, owing to a combination of factors that align with changing consumer preferences and health-conscious decisions. A primary driver fueling the expansion of the refined functional carbohydrates market is the heightened awareness surrounding health and wellness.

Refined functional carbohydrates play a pivotal role in the development of products that cater to individuals seeking more effective ways to manage these conditions. Their ability to offer low-sugar and low-calorie alternatives is aligned with the global endeavor to address these pressing health issues. Furthermore, the market has responded to consumer preferences for clean-label products and natural ingredients by spotlighting refined functional carbohydrates sourced from natural origins.

Similarly, North America dominates the refined functional carbohydrates market, capturing the largest market share of over 1/3rd. The growth in the region is reshaping the landscape of the food and beverage industry, as consumers actively seek out products featuring straightforward and easily recognizable components. Refined functional carbohydrates derived from sources like plant fibers resonate with this preference for ingredients that offer greater transparency and reliability.

Dynamics

Elevated Health and Wellness Awareness

As individuals become more attuned to the importance of maintaining good health and averting chronic ailments, they are actively seeking out food and beverage products that provide functional benefits. Refined functional carbohydrates, encompassing prebiotic fibers and low-glycemic sweeteners, are widely acknowledged for their potential to bolster digestive health, regulate blood sugar levels, and curtail calorie intake.

According to a Nielsen survey done in 2021, 67% of customers globally actively monitor their body mass index, and 49% make nutritional choices to take action on health concerns. The refined functional carbohydrates are harnessed to devise low-sugar and low-calorie products, serving the needs of individuals striving to manage their weight.

The movement toward clean-label products, characterized by straightforward and easily recognizable ingredients, is gaining traction. Refined functional carbohydrates sourced from natural origins, like plant fibers, are in sync with this preference for unadulterated and healthful constituents. They offer consumers a more transparent and dependable option.

Escalating Prevalence of Chronic Health Conditions

Obesity stands as a prominent health concern, accompanied by an array of chronic conditions. Over the next 12 years, over four billion people, or 51% of the global population, will be obese or overweight, according to the World Obesity Federation's 2023 atlas. Refined functional carbohydrates enable the formulation of products with reduced sugar and calorie content, making them a sought-after choice for individuals actively seeking effective weight management solutions.

Diabetes is another prevalent chronic condition, with the effective regulation of blood sugar levels being of paramount importance. Refined functional carbohydrates play a crucial role in creating products that assist individuals in maintaining optimal blood sugar levels, thereby contributing to enhanced health outcomes for those living with diabetes and those at risk.

The refined functional carbohydrates market encompasses a diverse array of products, including functional foods and dietary supplements, specifically tailored to address chronic health conditions. These products frequently feature specialized ingredients known to have a positive impact on health, rendering them a pivotal component of a comprehensive strategy to manage these conditions.

High Production Expenses

The high production costs associated with refined functional carbohydrates present a substantial constraint in the market. The process of refining and isolating functional carbohydrates from their source materials, such as corn, wheat, or rice, can be resource-intensive and laborious. It often requires specialized equipment and technologies, contributing to significant capital expenditures.

Variability in raw material prices, attributed to factors like weather conditions and supply-demand dynamics, further impacts the cost structure for manufacturers. To maintain quality control and ensure the consistency of refined functional carbohydrates, extensive quality assurance measures are necessary, resulting in higher production costs. These elevated production expenses can translate into higher prices for products containing refined functional carbohydrates, potentially discouraging cost-conscious consumers and limiting the market's growth prospects.

Competition from Natural Substitutes

The presence of natural alternatives and consumers' inclination towards whole foods can pose a challenge to the refined functional carbohydrates market. Many consumers prioritize a "clean label" and favor naturally occurring dietary fibers and sugars found in fruits, vegetables, and whole grains over refined or processed ingredients.

This consumer preference has driven the rise of natural alternatives, such as psyllium husk, inulin derived from chicory root, and other naturally sourced fiber options. These alternatives often enjoy a more favorable perception, as they are considered less processed and closer to their natural state.

Manufacturers of refined functional carbohydrates must grapple with this competition from natural alternatives and may need to make investments in marketing and product positioning strategies to convey the distinct benefits of their products. The popularity of natural ingredients can curtail market expansion and necessitate innovation in both product development and marketing to appeal to and retain consumers.

Segment Analysis

The global refined functional carbohydrates market is segmented based on product, source, application and region.

Mannan Oligosaccharides (MOS) Fuel Surge in Refined functional Carbohydrates Market

The mannan oligosaccharides (mos) segment held 34.5% in the global market share. The refined functional carbohydrate known as Mannan Oligosaccharides (MOS) has emerged as a sought-after ingredient in the food and beverage industry, with a particular focus on animal nutrition and certain human dietary supplements.

MOS is acknowledged for its ability to promote digestive health. Functioning as a prebiotic, it selectively stimulates the growth and activity of beneficial gut microorganisms. This characteristic is highly valued in both animal and human nutrition. In the realm of animal feed, MOS is employed to enhance the gut microbiota of livestock, poultry, and companion animals, leading to improved digestion and nutrient absorption. In human supplements, MOS is promoted for its potential to nurture a balanced and healthy gut microbiome.

The global animal feed industry has experienced substantial growth driven by the increasing demand for high-quality animal products and rising meat consumption. MOS is integrated into animal nutrition to enhance the overall well-being and performance of animals. As consumers seek meat and dairy products with improved quality, the demand for MOS in animal feed has significantly risen.

For MOS market participants, the creation of new products and strategic alliances with customers are expected to be crucial success factors. In May 2002, in order to improve the operation of dogs' urinary tracts, Protexin Veterinary created CystoPro, a new pet care product containing MOS. This new launch is anticipated to encourage other pet care product manufacturers to add MOS to their product lineups to support urinary tract health.

Geographical Penetration

Adoption of Wholesome Foods in U.S.

The North America refined functional carbohydrates market held the largest market share of 40.3% in 2022 in the refined functional carbohydrates market analysis. The increase will result from the region's increased demand for animal protein. The average daily protein intake for Americans is 81 grams, 85% of which comes from animal sources. By 2032, the regional market industry will profit from increased public awareness of the advantages of RFC, including its ability to increase immunity and lower disease rates.

Consumers in North America are actively health-conscious and seek out products that offer health benefits. Refined functional carbohydrates, which encompass low-glycemic sweeteners and prebiotic fiber are in high demand due to their recognized ability to manage blood sugar levels, digestive health, and reduce calorie intake. These benefits strongly resonate with the region's health and wellness trends, fueling consumer preferences for products incorporating these ingredients.

North American consumers have displayed a growing preference for clean-label products. Refined functional carbohydrates can satisfy this preference as they are often derived from natural sources like corn or chicory root. They offer a clean and straightforward ingredient label, serving as a viable alternative to synthetic additives or high-sugar components. This aligns with the demand for more natural and wholesome food and beverage offerings.

Competitive Landscape

The major global players in the market include: Cargill, Inc., ADM, DuPont de Nemours, Inc., Ingredion Incorporated, Tate & Lyle PLC, Roquette Freres, Sudzucker AG, Beneo GmbH, Grain Processing Corporation, and Kerry Group plc.

COVID-19 Impact Analysis

The outbreak of COVID-19 caused significant disruptions in global supply chains, affecting the sourcing and transportation of raw materials essential for the production of refined functional carbohydrates. Lockdowns, trade restrictions, and workforce shortages in some regions resulted in challenges related to ingredient availability.

The pandemic triggered changes in consumer preferences, particularly a growing demand for healthier and functional foods. This shift provided opportunities for products incorporating refined functional carbohydrates, which are commonly used in low-sugar, high-fiber, and functional food applications. The health crisis heightened awareness about the importance of well-being and immune health.

Consequently, refined functional carbohydrates with recognized health benefits, such as prebiotics and soluble fibers, gained traction as consumers sought out products that supported their health goals. The pandemic led to an upsurge in demand for nutraceuticals, including dietary supplements containing refined functional carbohydrates. Consumers looked to bolster their immune systems, leading to a broader utilization of these ingredients in health and wellness products.

Russia-Ukraine War Impact Analysis

The ongoing conflict between Russia and Ukraine could potentially disrupt the sourcing of agricultural raw materials, including corn and wheat, which serve as essential components in the production of certain refined functional carbohydrates. These countries are notable exporters of agricultural commodities, and any interruptions may affect ingredient availability and pricing.

The conflict has the potential to cause interruptions in transportation and logistics networks, which are critical for the movement of ingredients and finished products within and beyond the region. Such disruptions can impact the delivery of refined functional carbohydrates to manufacturers and consumers.

Geopolitical tensions and conflicts create an atmosphere of uncertainty in the global market. Companies may exhibit caution in making long-term investments or commitments in regions affected by the conflict, potentially influencing the overall market dynamics. Any disturbances in the agricultural supply chain arising from the conflict can introduce price volatility for raw materials utilized in refined functional carbohydrates. Manufacturers may need to adapt their pricing strategies and explore alternative sourcing options.

By Product

• Mannan Oligosaccharides
• Beta-glucan
• D-Mannose

By Source

• Corn
• Potato
• Rice
• Others

By Application

• Animal Nutrition
• Food and Beverages
• Pharmaceuticals and Nutraceuticals

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• In February 2022, the most prominent taste and nutrition firm, Kerry, announced two substantial biotechnology acquisitions that will increase its expertise, technological portfolio, and manufacturing capabilities, including refined functional carbohydrates. In addition to confirming that it has purchased the Mexican enzyme maker Enmex, the company has stated that it has marked an agreement to acquire the top biotechnology innovation company, c-LEcta.
• In May 2021, Cargill acquired Leman Decoration Group, a supplier of cake decorations and toppings for the bakery industry. While the focus of the acquisition was on bakery decorations, it also had implications for the refined functional carbohydrates market used in baking.
• In November 2020, Roquette, a key player in the refined functional carbohydrates market, invested in its pea processing plant in Portage la Prairie, Manitoba, Canada. This investment aimed to support the growing demand for plant-based protein and ingredients, including pea-based refined carbohydrates.

Why Purchase the Report?

• To visualize the global refined functional carbohydrates market segmentation based on product, source, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of refined functional carbohydrates market-level with all segments.
• The PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global refined functional carbohydrates market report would provide approximately 61 tables, 58 figures and 202 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies