January 13, 2026 – Functional ingredients are trending in Australasia, with brands focusing more and more on targeted benefits, rather than wide-ranging health value. New product development and launches are evolving across botanicals, protein, fiber, fatty acids, vitamins, minerals, and nutraceuticals. Their versatility and capacity for easy integration are driving growth in the Australasian market, and overall, functionality is becoming a key platform for innovation. Innova’s “Trending in Functional Ingredients in F&B in Australasia” report examines these current functional ingredient trends and how they will impact innovation strategy for the food and beverage industry.
Current State of the Functional Ingredient Market
Across the mainstream food and beverage market, Australasia market trends indicate that there has been a steady innovation shift towards functionality. Market insights indicate that Australasia has a large aging population, and chronic health conditions are on the rise. Functional ingredients offer consumers daily solutions to address these needs and simultaneously serve as a means of product differentiation and nutritional enhancement. They are also easily combined with beverages, bakery, dairy, and snacks, encouraging cross-category experimentation.
Established functional ingredients currently lead in the Australasian food and beverage market trends, due to scientific validation and ease within the regulatory landscape. However, emerging actives, such as botanicals and nutraceuticals, are increasingly becoming focal points in the market, alongside long-established ingredients like amino acids, fiber, vitamins, and minerals. This underscores a shift, as these emerging ingredients are scaling up but not overtaking foundational ones in the market.
Botanical Ingredients and Consumer Demand in Australasia
In the current Australasian food and beverage industry, botanical use is concentrated in everyday meal categories as a flavor enhancer. Market insights indicate that cereals are the leading category with 19% of launches with botanical ingredients and health claims.
Garlic and cocoa powder are the most commonly used botanicals, but ginger is becoming another prominent ingredient, delivering both taste and widely known health benefits. In launches with botanical ingredients, functional positionings centered on protein, energy and digestive health are gaining share to meet consumer demand, while broader clean label claims are losing prominence.
Nutraceuticals in Sports Nutrition and Soft Drinks
Functional ingredient trends indicate that nutraceuticals are concentrated in predominantly performance-oriented categories. This is led by sports nutrition, which accounts for 32% of launches with nutraceuticals. Cereals and soft drinks are also significant, as these ingredients can be easily incorporated into products without affecting taste or texture. Inulin, flaxseed, and caffeine are some of the core additives.
Protein-Based Innovation Moves Towards Precision
Diverse protein sources are scaling as consumer demand for satiety and strength continues to grow. Sports nutrition, cereals, and baking are the leading categories where protein ingredients are concentrated. This can be attributed to the fact that clear energy benefits, satiety, and strength can be delivered without disrupting product formats. Functional ingredient trends also show that soy protein isolate and wheat gluten protein are top ingredients due to their affordability and versatility when it comes to formulation.
Additionally, protein innovation is evolving towards more targeted and performance-led benefits. Although high fiber claims remain dominant for digestive health, low sugar and gut health are experiencing growth in launches, underlining rising interest in balance and digestive health. In general, the category is moving towards precision-oriented nutrition, where specific outcomes outweigh overarching wellness benefits.
Essential Wellness Vitamins Address Growing Energy Needs
Australasian market trends show that minerals, and vitamin ingredients are centered in the sports nutrition, soft drink, bakery, and cereal categories. Vitamin C and B vitamins are dominant ingredients, reflecting a growing emphasis on immunity, energy metabolism, and overall wellness. The fastest growth in mineral and vitamin-fortified launches is seen in low, no, reduced calorie positionings and those addressing low sugar and energy. Similar to protein innovation, market insights highlight that brands can expect a shift away from broad health benefits to those more closely aligned with Australasian consumers’ preferences for products that address active lifestyles and metabolism.
MCT-Led Fatty Acid Use Shape Performance Categories
The fatty acid landscape is largely shaped by MCTs, with the sports nutrition and soft drink categories responsible for nearly all activity. Metabolism and weight-related benefits are central fatty acid-related claims. In particular, weight management, low calorie, and fiber claims are expanding in the marketplace. Broader lifestyle-related cues are declining, but immune support may become a meaningful positioning to address consumer demands for well-being.
What’s Next for Functional Ingredient Trends in Australasia?
Brands looking to inform future strategy should note that botanicals with functional properties will continue to play an important role in Australasian market trends. Locally relevant botanicals like Kakadu plum and Mānuka offer distinctive properties, highlighting a product differentiation opportunity for regional ingredients to make an impact on new product development. Consumers are also seeking clean caffeine alternatives, opening the opportunity for adaptogens, nootropic botanicals, and plant-derived ingredients for alertness, support, and mood support. In combination with indulgent flavors, brands have the opportunity to marry functionality with enjoyment.
This article is based on Innova’s Trending in Functional Ingredients in F&B in Australasia report. This report is available to purchase or with an Innova Reports subscription. Reach out to learn more.