Functional Foods Market

Product Overview:

Functional Foods Market size was USD 262.34 billion in 2021 and projected to grow from USD 311.3 billion in 2023 to USD 681.3 billion by 2032, exhibiting a CAGR of 9.1% during the forecast period.

Functional foods are referred to as a modified food that are said to improve health having the advantages exceeding normal daily intake of nutrients like improving health of heart, boosting bone health, cholesterol management etc. It does not state to heal the disease but aids in minimising the risk of diseases by enhancing the health by giving essential nutrients. The aim of adding additives into the functional food is expected to boost the nutritional value of food products. Functional foods are whole, enriched, protective foods that provide health benefits.

Market Highlights

Functional Foods Market is expected to project a CAGR of 9.1% during the forecast period, 2022-2032

Functional Foods Market is expected to reach USD 681.3 billion, growing at a CAGR of 9.1% during forecast period owing to the rising awareness about maintaining health and about preventive healthcare. The demand for foods containing of dietary fibres has increased due to the growing consumption of functional foods that may boost the health and nutrition thereby having positive impact on market growth. The initiatives taken by the government and non-governmental bodies to promote awareness on nutritional benefits offered by functional foods is also expected to boost the growth of the market.

Functional Foods Market Segmentation

Organic is expected to grow with high CAGR during the forecast period

Functional Foods Market is classified based on the Category into Organic, Conventional. Organic segment is expected to dominate the market during the forecast period owing to the growing demand for organic functional food which is resulting in the increased production by the key market players and is anticipated to drive the growth of segment in the market. The health benefits offered by the organic foods and the growing awareness about healthy living and as harmful effects of pesticides may aid in boosting the growth of the segment in the market during the forecast period.

Digestive Health segment is expected to grow with high CAGR during the forecast period

Functional Foods Market is classified based on the Application into Sports Nutrition, Immunity, Cardio Health, Weight Management, Clinical Nutrition, Digestive Health, Others. Digestive health is expected to dominate the market during the forecast period due to the preference to maintain good digestive system. Presence of several health benefit like weight loss, improving joint health, bone and muscular strength, reducing risk of CVS & diabetes, reduce the wrinkles and is prone to noncommunicable diseases which may boost the growth of the market.

Market Dynamics

Growth Drivers

Increasing Geriatric Population is Expected to Boost the Growth of the Market

Old age population is increasing and the improper lifestyles of people may result in facing various health issues. The growing chronic diseases from young age is expected to increase the necessity of consuming functional foods, thereby boosting the growth of the market. The growing awareness and increasing health conscious of gut health are resulting in consuming special foods with additional health benefits, and following healthy diet patterns is anticipated to boost the growth of the market.

Development of Innovative Products is Expected to Boost the Growth of the Market

The increasing research and development to progress the functional food items is driving the market growth. New functional food product launches by key market players in the developing countries may result in meeting the customer demands. The development of new technologies to invent and produce functional food items like encapsulation, vacuum impregnation, edible coating technique are aiding in growth of market. The focus on clean, natural and minimally processed products is increasing. The products containing list of simple ingredients is increasing. The acceptance of functional food products has increased due to the awareness on individual health which resulted in personalized nutrition and is expected to drive the demand for the growth of the market.

Restraint

Unpleasant Flavours May Restrain the Growth of the Market

Functional food products have unpleasant taste. Considering the flavour of the products, the market growth of functional foods may be restrained.

Recent Developments

• In July 2022, Laird Superfood introduced its plant-based protein bar prepared from hemp seeds, peas, dietary fibres, pumpkin seeds, and other essential amino acids.

• In March 2022, Danone released the new drinkable yogurt Active+ to improve health and immunity which contains vitamins C, D, and zinc to aid in maintaining the immune system.

Functional Foods Market

Key Players Covered:

• Amway
• Cargill
• Arla Foods
• BASF
• Nutri-Nation
• GFR Pharma
• Herbalife
• Good Source Foods, LLC.
• Nestlé
• HILDUR
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Functional Foods Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. Asia Pacific dominated the functional food market in 2021 and is expected to continue its dominance over the forecast period owing to the growing population and their increasing disposable income. The consumption of processed food is increasing along with awareness related to fitness & health which is anticipated to boost the growth of the market. The consumption of foods with added minerals and vitamins is increasing along with the growing awareness on healthy habits which is expected to drive the demand for the growth of the Functional Foods Market.

Impact of Covid-19 on Functional Foods Market

The COVID-19 outbreak had resulted in the economic downfall. Several countries had imposed lockdowns and travel bans to control the coronavirus spread. The awareness of maintaining health and immunity along with the presence of a health benefits like boosting the immunity and presence of ingredients like minerals, vitamins, antioxidants, probiotics, had increased the demand for functional foods. Online shopping had also boosted the functional food market. Covid-19 had a positive impact on the growth of the Functional Foods Market.

Functional Foods Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada

• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa and Rest of MENA.

Functional Foods Market Scope and Segments

Frequently Asked Questions (FAQ):