Functional Food Market

Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 - By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

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Industry: Food & Beverage


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Numerous Benefits of Functional Foods Shines Spotlight on Global Market

Functional foods are supplements and other foodstuffs that include biologically active components that enhance health. These rich in nutrients, minerals, vitamins, and fibre food products are developed to help consumers reduce the prevalence of nutritional deficiencies. Functional foods are also rich in antioxidants that eliminate free radicals, preventing chronic conditions such as diabetes, cancer, and heart disease when consumed over a prolonged period. An increasing recognition of link between health and diet by modern-day consumers has fuelled growth of the global functional foods market over the last decade.

Probiotics for Improved Gut Function and Immunity Gives Functional Foods Market a Boost

Medline Plus states that lactose intolerance is a major health concern amongst children and adults. This has brought attention to pre and probiotics, which aid lactose digestion by slowing orocecal transit and mitigating discomfort. Probiotics raise the IgA antibody levels in infants and ingesting yoghurt stimulates the production of cytokines in cells. Products enriched with probiotics include yoghurt, cheese, cultured buttermilk, and kefir.

Modern consumers are extremely health-conscious, which has encouraged companies to offer functional beverages enriched with probiotics. Along with conventional milk, alternative milks such as protein and almond milk have demonstrated the maximum sales potential and are sweeping the functional foods market as they provide lactose intolerant people with the perfect mix of nutrition and taste.

Lack of Dietary Fibre Consumption Makes Consumers Gravitate Towards Functional Foods

Dietary fibre aids in the management of diabetes, heart disease, and weight by lowering cholesterol, maintaining blood sugar levels, and ensuring healthy bowel movement. The Harvard School of Public Health states that adults need 30g of dietary fibre daily but most Americans do not consume the recommended amount. As there is a significant shortfall between recommended intake and actual consumption, companies can justifiably add dietary fibres to their functional foods.

Dietary fibre supplementation via functional foods such as crackers, cookies, beverages, imitation cheeses, spices, and cereal-based products is expected to spike as consumers realise its immediate need. Fibres are used as binders, volume enhancers, fat reducers, and rheological modifiers in baked goods, fried foods, and sauces respectively. Companies are heavily marketing digestive benefits with ‘added fibre’ claims and this should spike demand in the functional foods market.

Functional Foods for Cardiovascular Health to Climb Up as Consumers Focus on Healthy Living

The cardiovascular health segment represents a quarter of the global functional foods market and is anticipated to grow at a robust pace as individuals aim to improve lifestyles for a better quality of life. The WHO states that cardiovascular disease causes 17.9 million deaths annually with a third being premature and occurring in those below 70. Several functional foods such as flaxseed, psyllium, stanol-ester margarine, and oats improve cardiovascular health by reducing blood lipid levels, minimizing platelet aggression, and decreasing plaque formation. Consumers have realized that reducing red meat consumption and shifting to a plant-based diet with low saturated fat is the best way of preventing heart disease. People are seeking cardioprotective diets to live longer, healthier lives and incorporating functional foods into one’s diet is an ideal way to do so.

Broadening Demographic of Sports Nutrition Increases Demand for Functional Foods

Once the exclusive domain of male athletes below 35, sports nutrition is now vital to baby boomers, casual gymgoers, and female athletes. There has been an emphasis on personal fitness and weight management through the right blend of exercise and diet, opening up limitless opportunities for companies in the sports nutrition segment. In a survey by Glanbia Nutritionals, nearly half of ageing consumers listed maintaining muscle health as a priority concern. Products rich in leucine, omega-3, and protein can sufficiently address this but are underrepresented in the functional foods market. Companies are striving to overcome this by releasing high protein performance beverages, nutrient-rich plant waters such as watermelon or coconut water, and functional and protein enhanced bars. While the core demographic remains male bodybuilders, companies foresee greater growth potential in casual fitness enthusiasts and individuals looking to manage weight in this segment of the functional foods market.

Asian Customers Seek Functional Foods with Traditional Chinese Herbs and Indian Spices

Asia Pacific region accounts for the largest share of the functional foods market with China continuing to grow at an exponential rate. The functional food market in China has four subdivisions – naturally healthy, fortified foods, better-for-you, and organic products. There is massive scope for ingestible beauty products. This trend is encouraging people to consider what they consume for the best skin and haircare results. Companies are investing sizeable sums into incorporating traditional Chinese herbs such as jiang hiang into their line-up.

Neighbouring India has a longstanding heritage of Ayurvedic medicine and spices such as turmeric, chilli, and garlic have been part of the cuisine for centuries. Recently, Indian companies have begun adding vitamin A to Vanaspati and milk to counteract the high prevalence of diabetes and cardiovascular ailments in the subcontinent.

The functional food market is comparatively less developed in Europe compared to the U.S. or even Japan. In a report by the Institute for Prospective Technological Studies, the per capita expenditure on functional foods in Japan and the U.S. is 4x and 2x higher than the EU respectively. Nevertheless, there is genuine interest for functional foods across the continent and companies are selling their wares in larger supermarkets such as Tesco, Lidl, and Aldi instead of specialty stores to gain maximum traction. The U.S market has been characterized by the launch of functional foods that claim to prevent disease with sales of functional beverages such as shelf-stable water and prebiotic plant milks growing in triple digits there. Weight reduction is a primary goal of U.S consumers and companies are launching products that help consumers achieve this.

Constant Product Launches Vital to Stay Ahead of Rivals in Functional Foods Market

Companies profiled in the report on the functional foods market are Dean Foods, Danone, Nestle, Marico, General Mills, Unilever, Mondelez International, Stonyfield Farm, Inc., Yakult Honsha, Sanitarium Health, Raisio Group, FrieslandCampina, Kraft Foods Inc, Kellogs, and The Kraft Heinz Company.

In 2020, Danone unveiled Silk Kids Almondmilk Yogurt Alternative for the U.S. market. The yoghurt alternative has 25% less sugar per ounce than other options and is fortified with Vitamin D and Calcium. The lactose free yoghurt is available in three flavours of Strawberry, Apple Cinnamon, and Mixed Berry.

In 2021, the Indian FMCG conglomerate, Marico, entered the market for plant-based meat in the subcontinent. The company unveiled soy-based meat-style pieces in West Bengal to promote a ‘healthier lifestyle’. The company states that their soy chunks are a good source of vegetable protein, low on fat, and high in fibre.

Regional Classification of the Global Functional Food Market is Listed Below:

North America

  • U.S.
  • Canada

Europe

  • Germany
  • France
  • Spain
  • U.K.
  • Italy
  • Russia
  • Rest of Europe

Asia Pacific

  • China
  • Japan
  • India
  • Southeast Asia
  • Rest of Asia Pacific

 Latin America

  • Brazil
  • Mexico
  • Rest of Latin America

Middle East and Africa

  • GCC
  • South Africa
  • Rest of Middle East & Africa

*Regions and countries are subject to change based on data availability.

Key Elements Included In The Study: Global Functional Food Market

  • Functional Food Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value, 2019 - 2022
  • Market Value at Regional and Country Level, 2023 - 2030
  • Market Dynamics and Economic Overview
  • Market Size in Value, Growth Rates, and Forecast Figures, 2023 - 2030
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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1. Executive Summary
     1.1. Global Functional Foods Market: Snapshot
     1.2. Future Projections, 2023 - 2030, (US$ Mn)
     1.3. Key Segment Analysis and Competitive Insights
     1.4. Analyst Recommendations

2. Market Overview
     2.1. Market Definitions and Segmentations
     2.2. Market Dynamics
            2.2.1. Drivers
                    2.2.1.1. Driver A
                    2.2.1.2. Driver B
                    2.2.1.3. Driver C
            2.2.2. Restraints
                    2.2.2.1. Restraint 1
                    2.2.2.2. Restraint 2
            2.2.3. Market Opportunities Matrix
     2.3. Value Chain Analysis
     2.4. Porter’s Five Forces Analysis
     2.5. Covid-19 Impact Analysis
            2.5.1. Supply
            2.5.2. Demand
     2.6. Government Regulations
     2.7. Recent Industry Developments
     2.8. Economic Analysis
     2.9. Quality Certification
     2.10. PESTLE Analysis

3. Global Functional Foods Market Outlook, 2018 – 2027
     3.1. Global Functional Foods Market Outlook, by Food Type, Value (US$ Mn), 2019 - 2030
            3.1.1. Key Highlights
                    3.1.1.1. Dairy Products
                    3.1.1.2. Cereal & Flour
                    3.1.1.3. Bakery & Confectionary
                    3.1.1.4. Sweet & Savory Snacks
                    3.1.1.5. Breakfast Cereals
                    3.1.1.6. Infant Food
                    3.1.1.7. Misc.
            3.1.2. Market Attractiveness Analysis
     3.2. Global Functional Foods Market Outlook, by Distribution Channels, Value (US$ Mn), 2019 - 2030
            3.2.1. Key Highlights
                    3.2.1.1. Supermarkets & Hypermarkets
                    3.2.1.2. Specialty Stores
                    3.2.1.3. Online Stores
                    3.2.1.4. Misc. (Pharmacies, etc.)
            3.2.2. Market Attractiveness Analysis
     3.3. Global Functional Foods Market Outlook, by Region, Value (US$ Mn), 2019 - 2030
            3.3.1. Key Highlights
                    3.3.1.1. North America
                    3.3.1.2. Europe
                    3.3.1.3. Asia Pacific
                    3.3.1.4. Latin America
                    3.3.1.5. Middle East & Africa
            3.3.2. Market Attractiveness Analysis

4. North America Functional Foods Market Outlook, 2019 - 2030
     4.1. North America Functional Foods Market Outlook, by Food Type, Value (US$ Mn), 2019 - 2030
            4.1.1. Key Highlights
                    4.1.1.1. Dairy Products
                    4.1.1.2. Cereal & Flour
                    4.1.1.3. Bakery & Confectionary
                    4.1.1.4. Sweet & Savory Snacks
                    4.1.1.5. Breakfast Cereals
                    4.1.1.6. Infant Food
                    4.1.1.7. Misc.
     4.2. North America Functional Foods Market Outlook, by Distribution Channels, Value (US$ Mn), 2019 - 2030
            4.2.1. Key Highlights
                    4.2.1.1. Supermarkets & Hypermarkets
                    4.2.1.2. Specialty Stores
                    4.2.1.3. Online Stores
                    4.2.1.4. Misc. (Pharmacies, etc.)
     4.3. North America Functional Foods Market Outlook, by Country, Value (US$ Mn), 2019 - 2030
            4.3.1. Key Highlights
                    4.3.1.1. U.S.
                    4.3.1.2. Canada

5. Europe Functional Foods Market Outlook, 2019 - 2030
     5.1. Europe Functional Foods Market Outlook, by Food Type, Value (US$ Mn), 2019 - 2030
            5.1.1. Key Highlights
                    5.1.1.1. Dairy Products
                    5.1.1.2. Cereal & Flour
                    5.1.1.3. Bakery & Confectionary
                    5.1.1.4. Sweet & Savory Snacks
                    5.1.1.5. Breakfast Cereals
                    5.1.1.6. Infant Food
                    5.1.1.7. Misc.
     5.2. Europe Functional Foods Market Outlook, by Distribution Channels, Value (US$ Mn), 2019 - 2030
            5.2.1. Key Highlights
                    5.2.1.1. Supermarkets & Hypermarkets
                    5.2.1.2. Specialty Stores
                    5.2.1.3. Online Stores
                    5.2.1.4. Misc. (Pharmacies, etc.)
     5.3. Europe Functional Foods Market Outlook, by Country, Value (US$ Mn), 2019 - 2030
            5.3.1. Key Highlights
                    5.3.1.1. Germany
                    5.3.1.2. France
                    5.3.1.3. U.K.
                    5.3.1.4. Italy
                    5.3.1.5. Russia
                    5.3.1.6. Rest of Europe
            5.3.2. BPS Analysis/Market Attractiveness Analysis

6. Asia Pacific Functional Foods Market Outlook, 2019 - 2030
     6.1. Asia Pacific Functional Foods Market Outlook, by Food Type, Value (US$ Mn), 2019 - 2030
            6.1.1. Key Highlights
                    6.1.1.1. Dairy Products
                    6.1.1.2. Cereal & Flour
                    6.1.1.3. Bakery & Confectionary
                    6.1.1.4. Sweet & Savory Snacks
                    6.1.1.5. Breakfast Cereals
                    6.1.1.6. Infant Food
                    6.1.1.7. Misc.
     6.2. Asia Pacific Functional Foods Market Outlook, by Distribution Channels, Value (US$ Mn), 2019 - 2030
            6.2.1. Key Highlights
                    6.2.1.1. Supermarkets & Hypermarkets
                    6.2.1.2. Specialty Stores
                    6.2.1.3. Online Stores
                    6.2.1.4. Misc. (Pharmacies, etc.)
     6.3. Asia Pacific Functional Foods Market Outlook, by Country, Value (US$ Mn), 2019 - 2030
            6.3.1. Key Highlights
                    6.3.1.1. China
                    6.3.1.2. Japan
                    6.3.1.3. South Korea
                    6.3.1.4. India
                    6.3.1.5. Southeast Asia
                    6.3.1.6. Rest of Asia Pacific
            6.3.2. BPS Analysis/Market Attractiveness Analysis

7. Latin America Functional Foods Market Outlook, 2019 - 2030
     7.1. Latin America Functional Foods Market Outlook, by Food Type, Value (US$ Mn), 2019 - 2030
            7.1.1. Key Highlights
                    7.1.1.1. Dairy Products
                    7.1.1.2. Cereal & Flour
                    7.1.1.3. Bakery & Confectionary
                    7.1.1.4. Sweet & Savory Snacks
                    7.1.1.5. Breakfast Cereals
                    7.1.1.6. Infant Food
                    7.1.1.7. Misc.
     7.2. Latin America Functional Foods Market Outlook, by Distribution Channels, Value (US$ Mn), 2019 - 2030
            7.2.1. Key Highlights
                    7.2.1.1. Supermarkets & Hypermarkets
                    7.2.1.2. Specialty Stores
                    7.2.1.3. Online Stores
                    7.2.1.4. Misc. (Pharmacies, etc.)
     7.3. Latin America Functional Foods Market Outlook, by Country, Value (US$ Mn), 2019 - 2030
            7.3.1. Key Highlights
                    7.3.1.1. Brazil
                    7.3.1.2. Mexico
                    7.3.1.3. Rest of Latin America
            7.3.2. BPS Analysis/Market Attractiveness Analysis

8. Middle East & Africa Functional Foods Market Outlook, 2019 - 2030
     8.1. Middle East & Africa Functional Foods Market Outlook, by Food Type, Value (US$ Mn), 2019 - 2030
            8.1.1. Key Highlights
                    8.1.1.1. Dairy Products
                    8.1.1.2. Cereal & Flour
                    8.1.1.3. Bakery & Confectionary
                    8.1.1.4. Sweet & Savory Snacks
                    8.1.1.5. Breakfast Cereals
                    8.1.1.6. Infant Food
                    8.1.1.7. Misc.
     8.2. Middle East & Africa Functional Foods Market Outlook, by Distribution Channels, Value (US$ Mn), 2019 - 2030
            8.2.1. Key Highlights
                    8.2.1.1. Supermarkets & Hypermarkets
                    8.2.1.2. Specialty Stores
                    8.2.1.3. Online Stores
                    8.2.1.4. Misc. (Pharmacies, etc.)
     8.3. Middle East & Africa Functional Foods Market Outlook, by Country, Value (US$ Mn), 2019 - 2030
            8.3.1. Key Highlights
                    8.3.1.1. GCC
                    8.3.1.2. South Africa
                    8.3.1.3. Egypt
                    8.3.1.4. Rest of Middle East & Africa
            8.3.2. BPS Analysis/Market Attractiveness Analysis

9. Competitive Landscape
     9.1. Company Market Share Analysis, 2022
     9.2. Competition Matrix (By Tier and Size of companies)
     9.3. Strategic Collaborations
     9.4. Company Profiles
            9.4.1. Nestlé S.A.
                    9.4.1.1. Company Overview
                    9.4.1.2. Product Portfolio
                    9.4.1.3. Financial Overview
                    9.4.1.4. Business Strategies and Development
(*Note: Above details would be available for below list of companies based on availability)
            9.4.2. General Mills Inc.
            9.4.3. The Kellogg Company
            9.4.4. Danone S.A.
            9.4.5. PepsiCo Inc.
            9.4.6. Arla Foods amba
            9.4.7. The Coca Cola Company
            9.4.8. Cargill Inc.
            9.4.9. Herbalife
            9.4.10. The Craft Heinz Company
            9.4.11. Archer Daniels Midland Company
            9.4.12. Kerry Group Plc

10. Appendix
     10.1. Acronyms and Abbreviations
     10.2. Research Scope & Assumptions
     10.3. Research Methodology and Information Sources

Our Research Methodology

Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.

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