Functional Foods Market Size, Share, and Trend Forecast

The global functional food and beverages market size is projected to reach USD 793.60 billion in 2032, exhibiting a CAGR of 10.23% during the forecast period. Increasing malnutrition worldwide will be the primary growth driver for this market in the near future, shares Fortune Business Insights™ in its new report, titled “Functional Food and Beverages Market Size, Share & Industry Analysis, By Type (Cereals & Grains, Fats & Oils, Dairy Products, Bakery Products, and Other Functional/Fortified Foods) Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Retail, and Others), and Regional Forecasts, 2024 – 2032”. According to the World Health Organization (WHO), close to 462 million people are underweight and 52 million children under the age of 5 are suffering from wasting. Moreover, roughly 45% of deaths among children below 5 years of age occur due to under-nutrition. As a result, governments have spurred into action in both developed and developing countries. For instance, in 2019, the UK government made it mandatory to fortify flour with folic acid to prevent occurrence of congenital disabilities in children. Similarly, in July 2019, the Indian government announced distribution of rice fortified with folic acid, Vitamin B12, and iron through the Public Distribution System (PDS). The market for functional foods and beverages, thus, stands to gain from these developments.

The functional food and beverages market report states that the value of this market stood at USD 333.34 billion in 2023.

Information Source: https://www.fortunebusinessinsights.com/functional-foods-market-102269

Other than this, the report contains the following:

Detailed segmentation of the market and piece-meal study of the each segment;
Exhaustive research into the various market drivers and restraints;
Comprehensive analysis of the regional developments and competitive milieu of the market; and
Panoramic understanding of the industry outlook and trends shaping the market.

Market Driver

High Nutritional Value of Functional Foods to Spike Uptake

The popularity of fortified food and beverages has been steadily climbing in recent years, mainly due to the hectic and unhealthy lifestyles people are leading in urban areas. As a result, there is growing demand for nutrition-rich food and beverage items fueled by rising health and wellness concerns. Functional foods have emerged as an attractive option for many consumers, given their wide-ranging and long-term benefits. For example, functional foods and beverages fortified with omega-3 fatty acids can boost brain function, secure heart health, and reduce inflammation. The benefits of functional foods are not limited to just chronic and lifestyle-based disorders; they have proven efficacy in tackling the effects of under-nourishment too. For example, the National Institutes of Health reported that introduction of wheat flour fortified with iron in Jordan led to 50% reduction in the incidence of iron deficiency anemia among children.

Regional Analysis

Evolving Lifestyles in Asia-Pacific to Aid the Region Register Impressive CAGR

Asia-Pacific is slated to dominate the functional food and beverages market share and grow at a CAGR of 9.20% during the forecast period. The central reason for this rise is the rapidly changing lifestyles of people that are increasing the prevalence of chronic conditions in the region. An example of this is the increasing consumption of fast or “junk” food. Thus, there is a surging demand for nutritional foods as people are getting more health conscious, especially in India. In addition to foodstuffs, there is also a high demand for functional hydration, particularly in tropical countries where water loss from the body is high. After Asia-Pacific, North America is expected to be the second-largest region for this market, anticipated to register a CAGR of 7.06% in the forthcoming years.

Competitive Landscape

Development of Exciting Products to Stimulate Intense Competition

One of the leading functional food and beverages market trends is the increasing focus of key players on the developing and launching new and exciting products in the market. Not only do these frequent launches help companies solidify their position in the market, but they also periodically realign the overall dynamics of market competition.

Industry Developments:

December 2019: GCI Nutrients, the US-based nutraceuticals leader, launched a new functional food and beverage technical advisory service. The aim behind setting up this division is to offer sound advice to customers who want to use the company’s branded ingredients to create their own functional food and beverage items.
October 2019: The American functional beverage pioneer Drink Nutrient introduced a new drink line, with each individual pack delivering the 13 essential vitamins, thereby enhancing the nutrition quotient of one’s drink. The offering does not contain GMOs, acrylamide, gluten, or any artificial ingredients.

List of Key Players Covered in the Report: