USD 304.2 Billion
Report ID:
SQMIG30I2226 |
Region:
Global |
Published Date: September, 2024
Pages:
198
|Tables:
129
|Figures:
77
Functional Foods Market size was valued at USD 258.63 Billion in 2023 and is poised to grow from USD 273.81 Billion in 2024 to USD 432.15 Billion by 2032, growing at a CAGR of 0.0587 during the forecast period (2025-2032).
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 304.2 Billion
Largest Segment
Dairy Products
Fastest Growth
Dairy Products
Growth Rate
8.5% CAGR
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The global functional foods market is segmented based on ingredient, product, application, and region. Based on ingredients, the market is segmented into carotenoids, dietary fibers, fatty acids, minerals, prebiotics & probiotics, vitamins, and others. Based on product the market is segmented into bakery & cereals, dairy products, meat, fish & eggs, soy products, fats & oils, and others. Based on application the market is segmented into sports nutrition, weight management, immunity, digestive health, clinical nutrition, cardio health, and others. Based on region the global functional foods market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.
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.
Analysis by Product
In terms of revenue, the dairy goods segment held more than 38% of the market in 2023, 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.
Analysis by Type
Probiotics play a pivotal role in maintaining human health, particularly by fostering a balanced gut microbiome. The gut microbiome influences various bodily functions, from digestion and nutrient absorption to immune response and even mental health. Its impact extends far beyond the digestive system, affecting systemic inflammation, metabolism, and overall well-being. Gut health is intricately linked to the body's immune system, with about 70% of the immune system residing in the gut-associated lymphoid tissue (GALT). Probiotics help modulate this immune response, enhancing the body's ability to defend against pathogens while reducing the risk of inflammatory diseases.
Given the profound influence of gut health on overall wellness, probiotics emerge as a crucial functional food ingredient. Probiotics, by type segment, are estimated to dominate the functional food ingredients market due to their multifaceted benefits and the impact they have on overall health. While vitamins, minerals, and proteins are essential, probiotics offer unique advantages, they not only support digestion and nutrient absorption but also bolster immune function, regulate inflammation, and promote mental well-being through the gut-brain axis.
Additionally, probiotics have demonstrated efficacy in addressing specific health concerns such as irritable bowel syndrome, inflammatory bowel disease, and antibiotic-associated diarrhea, further fueling their market dominance. Their versatility and demonstrated health benefits position probiotics as indispensable functional food ingredients for maintaining holistic health and vitality. Some of the key players that offer probiotics include Cargill, Incorporated (US), Chr. Hansen A/S (Denmark), and A&B Ingredients, Inc. (US).
Companies involved in offering and utilizing strategic developments in probiotics ingredients are poised to meet the evolving demands of health-conscious consumers, capitalize on the growing interest in gut health, and drive innovation in the development of functional foods. For instance, in October 2022, TEIJIN LIMITED (Japan) took a significant step forward in its dedication to developing and producing probiotics for functional foods with the establishment of Teijin Japan Limited, marking a significant milestone for the company. This new subsidiary is committed to addressing the evolving needs of health-conscious consumers by leveraging expertise in probiotics, which are essential for improving intestinal health, in addition to prebiotics that promote their growth.
Analysis by Application
With the largest market share of all the segments, the food segment emerged as the dominant segment in the market for functional food ingredients. The market for functional food ingredients is experiencing growth fueled by a rising preference for convenient, nutritious food options and an increasing demand for fortified food and beverage products. This expansion is driven by a rapidly growing health-conscious population, especially evident in emerging markets, which seek out fortified food products incorporating functional food ingredients.
Functional foods are becoming increasingly popular among consumers who are looking for specific health benefits like better digestion, immune system support, or increased energy levels in addition to nutritional value.
To satisfy the many demands and inclinations of health-conscious consumers, food manufacturers are actively introducing functional ingredients into a broad variety of food products, from snacks and beverages to dairy products and baked goods by meeting sustainability demands. For instance, in March 2023, ADM introduced the Knwble Grwn brand of functional food ingredients, aimed at offering consumers sustainably sourced, plant-based food ingredients that prioritize wholesomeness. These products are cultivated by small or underrepresented farmers utilizing regenerative agricultural practices, contributing to environmental conservation efforts. This new brand aligns with ADM's existing sustainability initiatives, further reinforcing the company's commitment to environmental stewardship and responsible sourcing practices.
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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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Drivers
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.
Restraints
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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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 Functional Foods Market
Functional Foods Market Recent Developments
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.
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.
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.
Nestle 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.
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 258.63 Billion |
Market size value in 2032 | USD 432.15 Billion |
Growth Rate | 0.0587 during the forecast period (2025-2032).% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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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 |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the 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 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.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Functional Foods Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the 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.
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Report ID: SQMIG30I2226
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