USD 304.2 Billion
Global Functional Foods Market Size, Share, Growth Analysis, By Ingredient(Carotenoids, Dietary Fibers), By Product(Bakery & Cereals, Dairy Products), By Application(Sports Nutrition, Weight Management) - Industry Forecast 2024-2031
Report ID:
SQMIG30I2226 |
Region:
Global |
Published Date: March, 2024
Pages:
198
|
Tables:
99 |
Figures:
76
Global Functional Foods Market Insights
Global Functional Foods Market size was valued at USD 304.2 Billion in 2022 and is poised to grow from USD 330.06 Billion in 2023 to USD 633.91 Billion by 2031, by rising at a CAGR of 8.5% during the forecast period (2024-2031).
Rising demand for nutrient-rich foods as a result of hectic lives, as well as improved consumer knowledge of the health benefits of certain foods, are likely to fuel market expansion in the United States. Furthermore, growing medical costs, aging population concerns about preserving excellent health, and greater consumer awareness in the link among well-being and healthy eating are boosting nutritious food demand in the country.
Due to the emphasis on living well, life expectancy has consistently grown in recent years. Consumers are becoming more health-conscious and are paying more attention about their lifestyles & diets, which has increased global demand for functional foods. Furthermore, increased consumer knowledge relating to the health advantages supplied by functional foods has been further enhanced by rising awareness efforts by government agencies, nonprofit organizations, and enterprises, which is expected to fuel market expansion.
Food and beverage manufacturers are reinforcing their goods with nutritious additions such as fibers, omega-3 fats, vitamins, and minerals, among others. The fundamental motivation for using such chemicals into food and beverage production is to boost the nutritional value of food items.
The majority of companies in the functional food market are releasing new goods in order to attract and suit the needs of consumers. The introduction of new goods into the market is assisting these firms in increasing their sales and capturing a larger proportion of the practical food market.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Dairy Products
Fastest Growth
Dairy Products
Growth Rate
8.5% CAGR
Global Functional Foods Market ($ Bn)
Country Share for North America Region (%)
Global Functional Foods Market By Product ($ Bn)
Global Functional Foods Market By Product (%)
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Global Functional Foods Market Segmental Analysis
The global functional foods market is segmented based on ingredient, product, application, and region. Based on ingredient, the market is segmented into carotenoids, dietary fibers, fatty acids, minerals, prebiotics & probiotics, and vitamins. Based on product the market is segmented into bakery & cereals, dairy products, meat, fish & eggs, soy products, fats & oils. Based on application the market is segmented into sports nutrition, weight management, immunity, digestive health, clinical nutrition, and cardio health. Based on region the global functional foods market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.
Global Functional Foods Market Analysis by Ingredient
Carotenoids in the component segment are expected to grow at a 7.2% CAGR from 2023 to 2030. They can be found on the market in a variety of forms, such lutein, beta-carotene, lycopene, the nutrient as zeaxanthin, canthaxanthin, & annatto. The key impetus for the sector is the significance of carotenoids in the management of eye problems, cancer, and diabetes. During the forecast period, increased R&D for the manufacture of high-value organic carotenoids is expected to provide new market options.
Fiber consumption has been linked to a variety of benefits, including improved intestinal health, lower cholesterol, and improved control of blood sugar, among others. These benefits, combined with the expanding healthy food market, are likely to have a substantial impact on the expansion of the dietary fiber segment. Dietary fiber, which is abundant in vegetables, beans, fruits, and whole grains, is widely recognised for its capacity to prevent or alleviate constipation. Fiber-rich meals can give extra health advantages such as weight maintenance and lowering the risk of diabetes and heart disease, that will positively impact market growth.
The segment of vitamin-based food products is expected to increase fast, with a CAGR of 9.7% during the forecast period. These functional components are accessible in a variety of forms, including vitamin A (retinoids and carotenoids), vitamin B (folic acid), vitamin C (ascorbic acid), and vitamin D (cholecalciferol). Consumers' understanding of the connection among health and diet is driving the need for vitamin-based food items. Increasing awareness of preventive medicine as a result of the COVID-19 pandemic, rapid developments in technology and science, rising interest in achieving wellness through diet, a growing elderly population, modifications to food laws affecting product claims as well as labels, and rising healthcare costs, among other factors, are fueling interest in these supplements.
Global Functional Foods Market Analysis by Product
In terms of revenue, the dairy goods segment held more than 38% of the market in 2022, led by the baking & cereals segment. Meat, eggs, soybeans, fish, & fats and oils are some of the other key product categories. Yogurt, milk drinks, & spreads are all great ways to get functional nutrients into your body. They contain a lot of useful chemicals and can be utilized in cooking as functional food additives. The dairy products segment is predicted to grow at a CAGR of roughly 7.9% over the forecast period.
The bakery & cereals segment held a 26% market share in 2021. In the future years, new product advancements in the bakery & cereals sectors are projected to increase the industry. Furthermore, rising demand for cereal bars and functional snacks like protein bars, nutritious bars, and energy bars is expected to drive significant market growth throughout the forecast period. To win market share, corporations such as Kellogg's are releasing novel lines of goods such as fiber-rich Crunchy Granola, Special K, the cereal and Corn Flakes supplemented with iron, zinc and 9 vital vitamins.
Global Functional Foods Market By Product (%), 2023 (%)
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Global Functional Foods Market Regional Insights
North America accounts for more than 24.7% of the global market for nutritional foods. Immunity, losing weight, digestive health, and heart health are the most important application areas in the North American market. This might be due to consumers' increased interest in health in the United States, Canada, and Mexico, which is expected to drive demand for functional food and drinks. Furthermore, the increased popularity with protein bars, shakes, & cookies amongst millennials as healthy snacking options is expected to drive demand for nutritious foods in North America over the next several years.
Asia Pacific is one of the most significant markets for multifunctional food items, with 35.8% of total sales, owing to its expanding population and increasing disposable income. The market in the region is being driven by growing consumption of processed foods as well as rising health and fitness consciousness in developing countries. Consumer awareness and concern about food safety are increasing in the region, notably in the months following the outbreak of the COVID-19 epidemic, which impacted buying habits and, as a result, fueled market growth.
Global Functional Foods Market By Geography, 2024-2031
- Largest
- Fastest
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Global Functional Foods Market Dynamics
Global Functional Foods Market Drivers
Increasing Consumer Awareness and Health Consciousness
- There is a growing awareness among consumers about the importance of maintaining a healthy lifestyle and making dietary choices that promote well-being. This increased health consciousness has fueled the demand for functional foods, as consumers seek products that offer additional health benefits beyond basic nutrition.
Global Functional Foods Market Restraints
High Development and Production Costs
- Developing and manufacturing functional foods with specific health benefits can involve significant research, development, and production costs. These costs, along with the need for clinical trials and regulatory compliance, can pose financial challenges for manufacturers. High costs can limit the availability and affordability of functional foods in some market segments.
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Global Functional Foods Market Competitive Landscape
The market for functional foods is very competitive, with many public and private companies working on product research and innovation. Public corporations have been active in launching tactics to achieve market competitive advantages. Privately held market players are anticipated in the near future. Amway Corp., for example, invested USD 15 million in its Michigan manufacturing facility in 2021 to redesign a 90,000-square-foot production plant to exclusively create sugar-free XS Energy Drinks that are sold globally. This new mill produces XS energy drinks for the United States, Latin America, and Canada.
In recent years, the functional foods market has seen significant advancements in terms of product innovation & portfolio expansion, among other things. For example, in March 2021, Arla Foods Chemicals introduced Lacprodan ISO for beverage fortification, launching a new protein-enriched fruit drink idea.
Top Player’s Company Profiles in Global Functional Foods Market
- Nestlé S.A.
- Danone S.A.
- General Mills, Inc.
- Kellogg Company
- The Coca-Cola Company
- PepsiCo, Inc.
- Abbott Laboratories
- Yakult Honsha Co., Ltd.
- GlaxoSmithKline plc
- Archer Daniels Midland Company
- DuPont de Nemours, Inc.
- Amway Corporation
- The Hain Celestial Group, Inc.
- Meiji Holdings Co., Ltd.
- BASF SE
- Royal FrieslandCampina N.V.
- Dean Foods Company
- Unilever N.V.
- Kraft Heinz Company
- Campbell Soup Company
Global Functional Foods Market Recent Developments
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The Kellogg Company declared in July 2023 that it will invest $50 million in a new functional food research and development center. Situated in Battle Creek, Michigan, the center's primary objective will be to create novel products that cater to the increasing needs of consumers for more convenient and healthful food options.
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Nestlé revealed a new range of plant-based protein powders under the Garden of Life brand in June 2023. The powders are intended to assist people satisfy their protein demands in a tasty and convenient way. They are prepared with a blend of pea, rice, and hemp protein.
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Danone purchased White Rabbit, a probiotic yogurt-focused Chinese dairy company, in June 2023. Danone plans to increase its market share in China, the largest dairy market in the world, as part of this transaction.
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Nestlé announced in April 2023 the introduction of two new vegan chocolate chips under the Toll House brand. The chips are supposed to be dairy-free and were introduced to satisfy consumer desire for plant-based foods.
Global Functional Foods Key Market Trends
- Increasing Demand for Personalized Nutrition: There is a growing trend towards personalized nutrition, where consumers seek functional foods tailored to their individual health needs, dietary preferences, and genetic profiles. Advances in technology, such as genetic testing and data analytics, are enabling companies to develop personalized functional food products and services to meet the specific requirements of consumers.
- Focus on Natural and Clean Label Ingredients: Consumers are increasingly concerned about the quality and safety of the ingredients used in functional foods. They prefer products with natural, organic, and clean label ingredients, free from artificial additives, preservatives, and genetically modified organisms (GMOs). Manufacturers are responding to this trend by incorporating natural and clean label ingredients into their functional food formulations.
- Growth in Plant-based and Alternative Protein Functional Foods: The rising popularity of plant-based diets and the growing demand for alternative protein sources are driving the development of plant-based functional food products. Plant-based and alternative protein functional foods cater to consumers seeking vegetarian, vegan, and flexitarian options that offer health benefits, including improved heart health, weight management, and sustainable nutrition.
- Expansion of Functional Beverages: Functional beverages, such as fortified juices, probiotic drinks, and herbal teas, are experiencing significant growth in the market. These beverages offer convenience, hydration, and targeted health benefits in a liquid format. Functional beverage companies are innovating with new ingredients, flavors, and packaging formats to meet the evolving preferences of consumers.
Global Functional Foods Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyzes the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global functional foods market analysis, the increased demand for nutritional & fortifying additives to foods is likely to drive market expansion over the forecast period. The COVID-19 pandemic had a limited influence on the functional foods sector. The demand for foods that are fortified with key nutrients has surged due to their medical advantages such as immune boosting. However, the supply network was disrupted as a result of global lockdowns, which impacted overall production. Companies are focused on rigorous and positive advertising to promote nutritious foods as well as growing their online distribution, which may have a favorable impact on the market in the coming years.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 304.2 Billion |
| Market size value in 2031 | USD 633.91 Billion |
| Growth Rate | 8.5% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global Functional Foods Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global Functional Foods Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global Functional Foods Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Functional Foods Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Functional Foods Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global Functional Foods Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Functional Foods Market Report Snapshots
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