The global functional foods market size was valued at USD 280 billion in 2019 and is expected to reach USD 526 billion by 2028. The market is anticipated to expand at a considerable CAGR of 9% during the forecast period, 2021 – 2028. The growth of the market is attributed to rising demand for a healthy and nutrient-rich diet as well as increasing disposable income of people around the world.
Functional foods are medicinal foods that aid in prevention of diseases, improvement of health, and reduction of healthcare expenses. Functional food is rich in protein and nutrients and offers several health benefits. Amino acids, minerals, vitamins, minerals, proteins, fatty acids, and prebiotics are among these nutrients. Increased mental energy, boost to immune system, enhanced bone health, cholesterol management, improved heart health, and other benefits linked with eye health and eyesight are some benefits provided by functional foods. Innovation and economic growth in the global functional foods industry in recent years is attributed to increasing consumer knowledge of health and nutritional benefits of functional foods. Functional foods are in demand in developed countries. Consumers in developed countries are turning to functional foods and beverages to solve perceived nutritional deficiencies.
Market Trends, Drivers, Restraints, and Opportunities:
- The market is primarily driven by population growth and changes in consumer food preferences. People are worried about their health and willing to pay a high price for foods that are good for their health. As a result, this trend and public awareness boosts the functional food business.
- Rising global elderly population is expected to enhance the global functional food market, due age-related health issues.
- Increased adoption of functional foods is fueled by rising disposable income and growing demand for fortified food and beverage items, which drives the functional food market.
- High cost of many functional foods constrains their usage, which is projected to restrict the global market over the projected time frame.
- The worldwide economic downturn compelled consumers to seek low-cost goods and foodstuffs. This is expected to hinder market expansion.
- During the forecast period, surging investments by small and medium food product manufacturing companies are expected to generate major opportunities in the market.
- Explosive growth of the retail sector is expected to create considerable opportunities in the market during the forecast period.
Scope of the Report
The report on the global functional foods market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Global Functional Foods Market Segment Insights:
Based on types, the market is divided into functional bar, bakery/ breakfast cereals, yogurt, functional dairy, and other functional/ fortified foods products. The yogurt segment is expected to account for a key share of the market during the forecast period due to high affordability and high demand in developing countries, where per capita income and expenditures on healthy foods are low.
In terms of ingredients, the market is segregated into proteins & amino acids, minerals, probiotics, vitamins, prebiotics & dietary fibers, and others. The probiotic segment is expected to dominate the market during the forecast period. This is mostly due to increased awareness of the importance of probiotics in food, which include aiding in the balance of the digestive system, preventing and treating diarrhea, and providing supplements to enhance mental health disorders.
On the basis of applications, the market is categorized as sports nutrition, weight management, cardio health, and others. The sports nutrition segment is projected to dominate the market during the forecast period, due to increasing awareness that nutritional issues affect physical and mental performance ability of people who engage in intense exercises, such as bodybuilders and athletes.
In terms of end-users, the market is divided into convenience stores, supermarkets/ hypermarkets, online retail, and others. The online retail segment is anticipated to dominate the market during the forecast period, due to attractive pricing, strong sales and support, and seamless shopping experience for consumers. Leading manufacturers are aggressively entering popular e-commerce platforms.
Based on regions, the market is classified as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in Asia Pacific was valued at USD 100 billion in 2020 and is expected to grow at a CAGR of 10.0 percent from 2021 to 202, due to rising health awareness and increased discretionary expenditures in the region. Growing urbanization, rising healthcare spending, and increased awareness of the medical benefits of functional foods are expected to fuel the functional food market in Asia Pacific to great levels over the forecast period. Furthermore, changes in lifestyle and significant shifts in dietary preferences are driving the market.
Segments Covered in the Report:
- Functional Bar
- Bakery/ Breakfast Cereals
- Yogurt, Functional Dairy
- Functional/ Fortified Foods Products
- Proteins & Amino Acids
- Minerals, Probiotics
- Prebiotics & Dietary Fibers
- Sports Nutrition
- Weight Management
- Cardio Health
- Convenience Stores
- Supermarkets/ Hypermarkets
- Online Retail
By Key Players
- North America
- Latin America
- Asia Pacific
- Middle East & Africa
- Glanbia PLC
- Hearthside Food Solutions LLC
- Mars Incorporated
- Meiji Co. Ltd.
- Nestlé S.A.
- Raisio PLC
- Royal frieslandcampina N.V.
- Sanitarium Health Food Company
- The Kraft Heinz Company
Key players in the functional food industry used a variety of development strategies to increase their market share, boost profitability, and stay competitive. Glanbia PLC, Danone, Hearthside Food Solutions LLC, Mars Incorporated, Meiji Co., Ltd., Nestlé S.A., Raisio PLC, Royal frieslandcampina N.V., Sanitarium Health Food Company, and The Kraft Heinz Company are important players in the market. Functional foods are becoming popular, hence new players are entering the market to meet the growing need for economical products. The entry of new competitors into the market increased competition within the industry, which is a good element for the industry's growth.