Food Fortification Market

Market Overview

The global food fortification market size was valued at USD 96 billion in 2023 and is projected to reach USD 223 billion by 2032, registering a CAGR of 9.8% during the forecast period (2024-2032). The increasing consumer awareness regarding fortified food and its associated health advantages is expected to act as a catalyst.

Food fortification adds micronutrients, such as vitamins, minerals, and proteins, to food and beverages to enhance their nutritional value.  The World Health Organization (WHO) supports the food fortification procedure since it has been recognized as the primary means of improving micronutrient health. The food fortification industry is currently experiencing expansion due to a variety of causes, including increased demand for fortified food items and rising concerns about micro-nutrient deficiency. According to the World Health Organization (WHO), an estimated 149 million children below the age of 5 have had impaired growth about their age, commonly known as stunted growth. The primary cause of the health issue is the individuals' failure to meet the essential prerequisites.

Additionally, the increasing desire for healthier and more nutritious food and the growing awareness of the importance of good health are significant factors driving the expansion of the market for food-fortifying agents. Other factors contributing to market expansion include the shift in lifestyle and increasing demand for healthier food and beverages due to a growing population and higher personal income. The increasing incidence of chronic diseases and growing knowledge of the role and advantages of food-fortifying agents will significantly boost the market's growth rate. The food fortifying agents market will have profitable growth prospects due to increasing food and beverage technology advancements.

Highlights

1. Dairy products generate the highest revenue share based on product.
2. Minerals generate the highest revenue share based on nutrients.
3. Ready-to-eat generates the highest revenue share based on type.

Market Dynamics

Food Fortification Market Drivers

Global Malnutrition Challenges and Nutritional Deficiency Awareness

The significant global malnutrition issues primarily drive the escalating need for food fortification. Although worldwide hunger rates have remained stable from 2021 to 2022, numerous regions throughout the globe are experiencing worsening food emergencies. The global population experiencing hunger has increased by around 122 million individuals since 2019 as a result of the pandemic, recurring weather disturbances, and wars, such as the war In Ukraine. In 2022, almost 2.4 billion people, primarily women and individuals living in rural regions, lacked regular access to healthy, safe, and adequate food. The prevalence of child malnutrition remains significantly elevated. In the year 2021, 148.1 million children, equivalent to 22.3% of the population, experienced stunted growth—additionally, 45 million children, accounting for 6.8% of the total, suffered from wasting. Furthermore, 37 million children, making up 5.6% of the population, were classified as overweight.

Additionally, persistent malnutrition, most common in underdeveloped regions, presents substantial health hazards. There is a growing recognition among governments and groups that fortifying staple food with essential nutrients is a viable approach to addressing these challenges on a larger scale. Consumer awareness of health and the risk of vitamin deficiencies, which can cause health conditions like anemia, scurvy, beriberi, and pellagra, has consistently increased demand for fortified food and beverages. Furthermore, studies indicate that these disorders can impact well-nourished persons, not just those who are malnourished.

Furthermore, the increasing recognition of nutritional inadequacies and their influence on health motivates consumers to search for fortified food and beverages actively. With increasing awareness about health, individuals are actively selecting items that provide additional nutritional advantages. Food makers meet this need for improved nutrition by enriching various products, including cereals and dairy. The knowledge of dietary deficiencies influences consumer choices and fosters partnerships between governments, non-governmental organizations, and the commercial sector to adopt and promote fortification initiatives. The increase in consumer and stakeholder knowledge highlights the importance of food fortification in tackling nutritional issues and advancing public health.

Food Fortification Market Restraints

Cost of Fortification and Nutrient Stability

The expense associated with fortification, including the acquisition, treatment, and dissemination of fortified components, might be a substantial obstacle. For numerous food businesses, the initial capital needed for fortification, which includes the procurement of fortified ingredients, machinery, and quality control procedures, can be significant. Consumers may bear the burden of these additional expenses, which could make fortified items less accessible, especially in areas with lower socioeconomic status.

Furthermore, maintaining the stability of nutrients is a critical concern. Specific vitamins and minerals are susceptible to degradation caused by heat, light, and oxygen, which can occur during processing and storage. Ensuring stability and bioavailability over the product's shelf life is crucial to guarantee that consumers obtain the expected nutritional benefits. Developing products that can withstand these obstacles while meeting regulatory criteria increases the complexity and cost of food fortification projects. To overcome these limitations, continuous research and innovation are required to provide affordable fortification techniques that preserve the nutritional content of fortified food, thus increasing its accessibility and benefits for a broader range of consumers.

Food Fortification Market Opportunity

Biofortification Programs and Fortification in Convenience Food

Biofortification initiatives are significantly contributing to the increase in demand for food fortification. These efforts tackle widespread nutrient inadequacies by improving the nutrient content of primary crops such as rice, wheat, and maize using biofortification processes. Consumers can obtain vital nutrients from their regular diet, decreasing the need for dietary supplements. The Commercialisation of Biofortified Crops (CBC) Programme was initiated in 2019 to combat prevalent hidden hunger in Africa and Asia by significantly increasing the availability of food and food products derived from biofortified staple crops.

HarvestPlus is co-led by CIAT and the International Food Policy Research Institute (IFPRI). Since its establishment in 2004, the initiative has introduced more than 130 biofortified crops in 30 countries across Africa, Asia, and Latin America. HarvestPlus successfully expanded its reach to two million additional agricultural households in 2015 by providing enhanced nutritional value crops. This aligns with its objective of reaching a target audience of 100 million individuals by 2020 and 1 billion individuals by 2030 by giving biofortified food. The swift increase in speed was partially attributed to the extensive implementation of zinc-rich crops in South Asia, marking their initial arrival In the region. Such an approach enhances public health and generates a profitable biofortified food and ingredients market.

In addition, its fortification is an essential factor contributing to convenience food's popularity. With the rise of urbanization and the growing prevalence of busy lifestyles, people are increasingly opting for packaged and convenient meals. Food makers acknowledge this pattern and integrate fortification to satisfy the desire for more nutritious choices. Fortified convenience foods provide consumers with the advantages of additional nutrients, making them a practical option for keeping a well-balanced diet in today's fast-paced society. Consequently, the food fortification industry is witnessing continuous growth propelled by these influential factors.

Regional Analysis

The global food fortification market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America Dominates the Global Market

North America is the most significant global food fortification market shareholder and is estimated to grow at a CAGR of 9.2% over the forecast period. The food fortification market in North America has experienced an increasing focus on targeting specific health issues. The growing popularity of fortified products, including vitamins, minerals, and functional additives, is driven by a health-conscious populace. In addition, government efforts to address vitamin inadequacies and enforce fortification programs contribute to the industry's growth. At the Seventy-sixth World Health Assembly, the delegates approved the resolution to enhance the prevention of micronutrient deficiencies by implementing safe and efficient food fortification.

In addition, the resolution calls upon Member States to make determinations regarding the fortification of food with micronutrients and the provision of supplements, as well as to explore methods of enhancing financing and monitoring systems. The resolution was passed within the framework of the United Nations Decade of Action on Nutrition (2016-2025) report. The objective of the Nutrition Decade is to expedite the fulfillment of the commitments made during the Second International Conference on Nutrition (ICN2), attain the global targets for nutrition and diet-related noncommunicable diseases (NCDs) by 2025, and contribute to the achievement of the Sustainable Development Goals by 2030.

Asia-Pacific is estimated to grow at a CAGR of 9.5% over the forecast period. The food fortification industry in the Asia-Pacific is influenced by the varied dietary preferences and nutritional requirements of its large population. Governments and international organizations actively tackle vitamin deficiencies through fortification programs, especially in staple foods.  Additionally, the market is experiencing a significant increase in the fortification of traditional food to meet the region's cultural diversity. With the increasing awareness of nutrition and well-being, food makers are actively investigating creative fortification techniques to cater to the specific needs of an ever-changing market.

Europe holds a significant market share. There is a growing fascination in Europe with natural and clean-label fortification. Consumers are progressively searching for products that utilize natural supplies of vitamins and minerals. Since the early 20th century, Europe has effectively eliminated nutritional deficiency-related conditions like goiter, rickets, and pellagra. To address the issues of cretinism and goiter, the practice of fortifying salt with essential nutrients was initially introduced in Switzerland in 1923 and subsequently adopted by other nations.

Additionally, several European countries have widely adopted the practice of fortifying foods with vitamin D. A recent study examining the impact of this fortification on cancer mortality rates revealed a noteworthy decrease in the number of deaths attributed to vitamin D food fortification. In the United Kingdom, food products are presently enriched with supplementary vitamins and minerals, such as vitamin E, folic acid, iron, calcium, and other fortifying agents. Additionally, incorporating organic and non-GMO fortification is a significant and noteworthy trend. Furthermore, fortified dairy and plant-based alternatives are increasingly popular, corresponding to the growing need for functional and fortified food in the region. 

Segmental Analysis

The global food fortification market is segmented based on product, nutrient, and type. 

Based on the product, the market is bifurcated into Dairy Products, Fats, Oils Products, Confectionery Products, Bakery Products, Beverages, Infant Formulas, and Others. 

Dairy and dairy-based goods dominated in 2023. The practice of fortifying dairy products has become increasingly popular since it helps to increase the consumption of calcium and vitamin D. Calcium-enriched milk and dairy substitutes are targeted toward individuals seeking to enhance their bone health. In addition, yogurt enriched with probiotics has experienced increasing appeal due to its promotion of digestive health. These patterns correspond with the growing focus on holistic well-being and the demand for functional food that provides benefits beyond conventional dairy products.

The infant formula segment is the fastest growing. The infant formula segment supplies infants with essential nutrients for their growth and development. Current developments in this field include enhancing formulations with omega-3 fatty acids, prebiotics, and necessary vitamins. With the increased knowledge of nutrition among parents, there is a rising need for formulas that closely replicate the composition of breast milk. Breast milk is recognized for enhancing cognitive and immune system development. The infant formula sector consistently sees advancements and enhancements to satisfy these changing consumer demands.

The market is segmented based on vitamins, proteins, minerals, prebiotics, probiotics, and other nutrients. 

The minerals segment dominated in 2023. A significant increase in the demand for the mineral segment is anticipated in the projected timeframe. Therefore, operational business entities have the potential to take advantage of market opportunities and incorporate vitamins and minerals to enhance the nutritional value of various food products. Due to the prevalence of inadequate dietary choices, a significant increase in demand for minerals is expected in the future due to the widespread occurrence of iron deficiency among individuals.

The protein segment is the fastest growing. Proteins and amino acids are essential nutrients in maintaining optimal health. The fortification of food with proteins and amino acids has become increasingly popular due to the growing need for functional and high-protein diets. This trend appeals to people passionate about fitness, adherents of vegetarianism, and those seeking to control their weight effectively. Fortified products encompass plant-based protein sources, such as soy, and products supplemented with necessary amino acids to fulfill nutritional needs.

The vitamins segment is the second largest. Vitamins are crucial in driving the growth of the worldwide food fortification market as they help to combat widespread deficits in essential nutrients, improve public health, and meet regulatory requirements. Fortified meals, enhanced with essential vitamins like A, D, and B-complex, help address malnutrition and promote immunological function, cognitive development, and overall well-being. The increasing knowledge about health and government initiatives is fueling the need for fortified products, which in turn is leading to the expansion of the market. 

Based on the type, the market is segmented into Frozen, Ready-To-Mix, Ready-To-Eat, Ready-To-Drink, and Others. 

The ready-to-eat segment dominated in 2023. As people's lifestyles become more hectic, consumers increasingly desire food options that are both convenient and nutritious. Conveniently prepared foods, fortified with vital nutrients, provide a pragmatic approach to enhance public health. The rise of this phenomenon is fuelled by a growing recognition of the need for well-rounded diets and the implementation of government programs that promote the addition of essential nutrients to combat malnutrition. 

The frozen segment is the fastest growing. Due to the increased demand from consumers for healthy and quick meal choices, producers are now adding critical vitamins and minerals to frozen foods. This trend aims to tackle nutritional inadequacies and enhance public health. Furthermore, the prolonged duration for which frozen meals may be stored without spoiling guarantees the preservation of nutrients, thus increasing their attractiveness. Fortification in frozen meals also aligns with global health goals, promoting a well-rounded diet among diverse populations. Therefore, the frozen segment plays a crucial role in driving the growth of the food fortification market. 

Recent Developments

• April 2024 - General Mills (NYSE: GIS) successfully finalized the purchase of Edgard & Cooper, a prominent European company specializing in high-quality pet food. This sale allows the firm to continue implementing its Accelerate strategy, prioritizing its core markets, global platforms, and local gem brands. The goal is to achieve sustainable, profitable development and provide top-tier returns to shareholders in the long run.
• April 2024 - General Mills and TOMORROW X TOGETHER (TXT) collaborated to introduce the refreshing essence of Gen Z's renowned band to your morning meal. They collaborate to launch limited-edition cereal boxes with General Mills' well-known brands. These boxes will include standees of each member of TXT, allowing fans to create a standalone display of the band members and enhance their memorabilia collection.