Abstract: This disclosure relates generally to method and system for designing the formulated products. Conventional techniques for designing the formulated products, meeting final functional properties, are limited. Further, understanding user requirements and active incorporation of the user requirements during design phase is quite challenging. The present disclosure herein provides method and system that solve the technical problem of extracting the functional requirement by establishing continuous conversation with the user. An optimal prediction function for each functional requirement is determined by using a plurality of prediction models. An optimization technique along with an objective function is employed to determine optimized solutions comprising list of ingredients, possible concentration level of each ingredient, the process parameters, and the operating parameters for obtaining the desired formulation based on the user requirement.