by The Functional Food Market is estimated to be valued at US$ 204.22 Billion in 2023 and is expected to exhibit a CAGR Of 6.9% over the forecast period from 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Functional foods are foods that provide health benefits beyond basic nutrition. They are enriched with probiotics, prebiotics, proteins, fibers, vitamins, minerals or other components that may improve health or reduce disease risk. Some common functional food products include fortified cereals, dairy items, snack bars, juices and plant-based beverages. Their consumption promotes heart, digestive and brain health as well as enhances sports performance and weight management.
Market Dynamics:
The increasing prevalence of chronic diseases such as diabetes, obesity, cardiovascular disorders and cancer is a major factor driving the growth of functional food market. According to the Centers for Disease Control and Prevention, in 2020, chronic diseases accounted for over 75% of total healthcare costs in the United States. The growing awareness about relationship between diet and health has encouraged consumers to shift towards healthy food products with added nutrients and benefits. Additionally, growing millennial population coupled with the rising disposable incomes in developing nations are also fueling the adoption of premium-priced functional foods globally. Furthermore, continuous new product launches catering to specific health needs and convenience lifestyles provide lucrative growth opportunities for market players. However, stringent regulations regarding new ingredients and health claims may hinder the market growth.
Segment Analysis
The functional food market is segmented into grain, dairy, bakery and confectionery, snack food and beverage sectors. The grain segment holds a major share in the overall market due to increasing demand for fortified and enriched cereals and bakery products. The health conscious consumers are willing to spend on functional food products offering added health benefits, driving the growth of the grain segment.
PEST Analysis
Political: Governments of various countries are supporting the functional food industry through incentives, funds, promotions and regulations to develop products with added health benefits.
Economic: The rising income levels and growing health awareness are fueling the demand for functional food products with nutritional value additions. Increasing expenditures on healthcare are also positively impacting the market growth.
Social: Changing consumer lifestyles and busy schedules are leading to sedentary lives, increasing the prevalence of lifestyle diseases. More people are incorporating functional food in their regular diet to manage diseases and stay healthy.
Technological: Advancements in food science and biotechnology are enabling manufacturers to develop innovative food products with specific nutrients, vitamins, minerals and antioxidants beneficial for health conditions like diabetes, obesity, cardiovascular diseases.
Key Takeaways
The Global Functional Food Market Size is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period of 2023 to 2030, due to increasing health consciousness among consumers globally. The market size for 2023 is US$ 204.22 Bn.
North America dominates the functional food market due to growing demand for fortified food and drinks to address public health problems like obesity. Asia Pacific is expected to emerge as the fastest growing regional market with increasing health awareness in countries like China and India.
Key players operating in the Functional Food Market are Danone, Glanbia Plc, Hearthside Food Solutions Llc, Mars, Incorporated, Meiji Co., Ltd., Nestle S.A., Raisio Plc, Royal Frieslandcampina N.V., Sanitarium Health Food Company, And The Kraft Heinz Company. These companies are actively involved in new product launches and expanding their regional presence through strategic partnerships and mergers and acquisitions.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
