USD 280.7 Billion
Report ID: SQMIG30I2226 | Region: Global | Published Date: February, 2024 | Pages: 157 | Tables: 99 | Figures: 76
Global Functional Foods Market size was valued at USD 280.7 Billion in 2021 and is poised to grow from USD 304.2 Billion in 2022 to USD 586.1 Billion by 2030, by rising at a CAGR of 8.5% during the forecast period (2023-2030).
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.
Global Market Size
USD 280.7 Billion
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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.
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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.
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Global Functional Foods Market Drivers
Increasing Consumer Awareness and Health Consciousness
Global Functional Foods Market Restraints
High Development and Production Costs
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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
Global Functional Foods Market Recent Developments
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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.
|Market size value in 2021
|USD 280.7 Billion
|Market size value in 2030
|USD 304.2 Billion
|Forecast Unit (Value)
|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)
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Parent Market Analysis
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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.
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