The Global Functional Oil Powder Market was valued at US$ 1.45 Billion in 2025 and is projected to reach US$ 2.28 Billion by 2034, growing at a Compound Annual Growth Rate (CAGR) of 6.9% during the forecast period (2024–2034). This robust growth is fueled by rising consumer demand for convenient, shelf-stable nutritional ingredients, the expanding health and wellness sector, and increased application in infant formula, dietary supplements, and functional foods.

As the food and nutrition industry pivots towards powder-based solutions for enhanced stability, ease of handling, and formulation flexibility, the market leaders in functional oil powders are pioneering advanced microencapsulation technologies and clean-label products. In this blog, we profile the Top 10 Companies in the Functional Oil Powder Industry—a diverse group of specialty ingredient suppliers, food giants, and biotech innovators shaping the future of nutritional delivery systems.

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🔟 1. BASF SE

Headquarters: Ludwigshafen, Germany
Key Offering: Omega-3 Powders, Vitamin Powders, Customized Nutrient Solutions

BASF is a global leader in nutrition and health ingredients, offering a wide range of functional oil powders through its Human Nutrition division. Their expertise in microencapsulation ensures high stability and bioavailability of sensitive lipids like omega-3s and vitamins in various food and supplement applications.

Innovation Focus:

• Advanced microencapsulation technologies for improved oxidative stability

• Clean-label and non-GMO project verified powder solutions

• Strategic R&D in personalized nutrition delivery systems

Download FREE Sample Report: Functional Oil Powder Market – View in Detailed Research Report

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9️⃣ 2. Kerry Group

Headquarters: Tralee, Ireland
Key Offering: ProDiem® Nutrient Systems, Lipid Powders, Taste Masking Solutions

Kerry Group is a world-leading taste and nutrition company, providing sophisticated functional oil powder systems for infant nutrition, clinical nutrition, and wellness products. Their ProDiem® range offers tailored nutrient delivery with enhanced stability and sensory profiles.

Innovation Focus:

• Integrated taste-masking and stabilization technologies

• Sustainable sourcing and production practices

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8️⃣ 3. FrieslandCampina Ingredients

Headquarters: Amersfoort, Netherlands
Key Offering: Betapol® OPO Powder, Vana-Sana® DHA Powder, Milk Lipid Powders

FrieslandCampina Ingredients specializes in advanced lipid ingredients derived from milk, offering powders like Betapol® which mimics the fat structure of human milk fat for infant formula. Their portfolio supports cognitive development and overall nutrition.

Innovation Focus:

• Pioneering in OPO (Oleic-Palmitic-Oleic) structured lipids

• Focus on early life and performance nutrition segments

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7️⃣ 4. Archer Daniels Midland Company (ADM)

Headquarters: Chicago, Illinois, USA
Key Offering: Powd’Lipo™, NutriSperse®, Custom Powdered Oils

ADM is a global leader in human and animal nutrition, offering a comprehensive portfolio of functional oil powders under brands like Powd’Lipo™. These ingredients are designed for applications in beverages, baking, and nutritional supplements, providing excellent dispersibility and shelf life.

Innovation Focus:

• Plant-based and sustainable ingredient solutions

• Expansion of production capacity for specialty powders

Download FREE Sample Report: Functional Oil Powder Market – View in Detailed Research Report

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6️⃣ 5. DSM-Firmenich

Headquarters: Kaiseraugst, Switzerland
Key Offering: life’sDHA™ Powder, MCT Powders, Vitamin Powders

DSM-Firmenich, formed by the merger of two giants, is a powerhouse in health, nutrition, and bioscience. Their functional oil powder portfolio includes algal-based DHA powders and MCT powders targeted at brain health, energy, and specialized dietary needs.

Innovation Focus:

• Algal-based sustainable omega-3 solutions

• Commitment to science-backed nutritional benefits

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5️⃣ 6. International Flavors & Fragrances Inc. (IFF)

Headquarters: New York, New York, USA
Key Offering: Encapsulated Oils, Nutrient Delivery Systems, Health & Wellness Powders

IFF’s Health & Biosciences division offers advanced microencapsulation solutions for functional oils, protecting ingredients from oxidation and masking unwanted flavors. Their technologies are critical for incorporating sensitive nutrients into a wide array of food and beverage products.

Innovation Focus:

• Proprietary encapsulation platforms for maximum stability

• Focus on holistic health solutions: gut, metabolic, and immune health

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4️⃣ 7. AAK AB

Headquarters: Malmö, Sweden
Key Offering: AkoninoLi™ Lipid Powders, Infant Formula Lipids, Specialty Fat Systems

AAK is a leading provider of specialty vegetable fats and oils, with a growing presence in functional oil powders. Their solutions are particularly strong in the infant nutrition sector, offering lipid profiles designed to support healthy development.

Innovation Focus:

• Co-development partnerships with food manufacturers

• Dedicated focus on plant-based and sustainable lipid sources

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3️⃣ 8. Ingredion Incorporated

Headquarters: Westchester, Illinois, USA
Key Offering: HI-CAP® Encapsulants, Starch-Based Delivery Systems, Custom Powders

Ingredion specializes in ingredient solutions derived from plants, including starches and biomaterials used for encapsulating functional oils. Their HI-CAP® product line is widely used for creating stable, free-flowing oil powders for the food and supplement industries.

Innovation Focus:

• Clean-label and non-GMO encapsulation carriers

• Expansion into texture and stability solutions for plant-based foods

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2️⃣ 9. Glanbia plc

Headquarters: Kilkenny, Ireland
Key Offering: Performance Nutrition Powders, Custom Nutrient Premixes, Lipid Blends

Glanbia Nutritionals is a major player in nutritional ingredients and premixes, offering functional oil powders integrated into its extensive portfolio. They serve the sports nutrition, wellness, and functional food markets with science-backed formulations.

Innovation Focus:

• Strong R&D in sports and active nutrition

• Strategic acquisitions to bolster ingredient technology portfolio

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1️⃣ 10. Lonza Group

Headquarters: Basel, Switzerland
Key Offering: Capsugel® Lipid Multi-Particulates (LMP), Specialty Nutrient Powders

Lonza is a global leader in life sciences, providing advanced delivery technologies for pharmaceuticals and supplements. Their Capsugel® LMP technology encapsulates lipids into fine powders, offering superior bioavailability and stability for sensitive ingredients.

Innovation Focus:

• Pharmaceutical-grade manufacturing standards for nutraceuticals

• Innovations in bioavailability enhancement for poorly soluble actives

Get Full Report Here: Functional Oil Powder Market – View in Detailed Research Report

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🌍 Outlook: The Future of Functional Oil Powders Is Smarter and More Personalized

The functional oil powder market is experiencing a significant transformation, driven by technological advancements and shifting consumer preferences. While traditional liquid oils still hold a major share, the industry is rapidly adopting powdered formats for their superior handling, stability, and formulation versatility across multiple sectors.

📈 Key Trends Shaping the Market:

• Rising demand for plant-based and sustainable powder solutions

• Increased application in clinical and elderly nutrition products

• Advancements in spray-drying and microencapsulation technologies

• Growing focus on clean-label and allergen-free powder carriers

Get Full Report Here: Functional Oil Powder Market – View in Detailed Research Report

The companies profiled above are not only supplying ingredients—they are enabling the next generation of convenient, effective, and stable nutritional products that meet the evolving demands of global consumers.