Functional foods are food products enriched with health-promoting and medicinal benefits ranging from disease prevention to overall improvement in wellness. Several food items such as yogurts, cereals, snacks, juices and beverages are fortified with omega-3 fatty acids, probiotics, fibers and plant extracts among others to provide added nourishment beyond basic nutrition. With the fast-paced lifestyles and sedentary routines, consumers are demanding more natural ways to boost immunity and prevent onset of lifestyle diseases with daily dietary intake. The global Functional Food Market is witnessing significant demand for products that not only satisfy hunger but also offer additional health advantages.
The global Functional Food Market is estimated to be valued at US$ 235.27 Mn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2031, as highlighted in a new report published by Coherent Market Insights.
The market growth is propelled by factors such as increasing prevalence of chronic diseases, rising health consciousness among individuals and growing geriatric population base globally. Product launches catering to disease-specific needs and offerings made from organic, plant-based and gluten-free ingredients will further support the industry expansion during the prediction years.
Market key trends:
Plant-based and Vegan Functional Foods Trend – Rising veganism and flexitarianism has spurred demand for plant-based and vegan functional foods made using ingredients such as nuts, seeds, soy, grains and other plant-based proteins. Major players are launching innovative food items made from plant-based proteins with added medicinal benefits for health-conscious consumers avoid animal products.
Innovations in Probiotic Fortified Foods – Probiotics functionalization of various food categories has gained significant traction over the past few years. Leading companies are investing in R&D to develop new probiotic strains and applications in yogurts, cheeses, juices, breads and cereals among others to boost immunity, digestive health and gut microflora.
Porter’s Analysis
Threat of new entrants: The functional food market has moderate threat of new entrants due to the established brands and global presence of existing players. However, new startups focusing on innovation can enter the market.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of various product options from different brands in the market.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power as there are numerous suppliers for raw materials used in functional foods.
Threat of new substitutes: The threat of substitutes is moderate to high as consumers can opt for other food and beverage products offering similar health and wellness benefits.
Competitive rivalry: The competitive rivalry in the market is high due to the presence of numerous global and regional brands offering a variety of product portfolio.
Key Takeaways
The Global Functional Food Market Size is expected to witness high growth over the forecast period of 2023 to 2031. The global Functional Food Market is estimated to be valued at US$ 235.27 Mn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2031.
Regional analysis – North America dominates the global market owing to the increasing health awareness among consumers in the US and Canada. Europe also captures significant market share due to rising demand for fortified and enriched food products. Asia Pacific is the fastest growing regional market due to increasing health consciousness and changing food consumption patterns in major countries like India and China. Latin America is also projected to showcase considerable growth rate during the forecast period.
Key players operating in the functional food market are F Hoffmann-La Roche, BASF, Unilever, Danone, Nestle, and Arla Foods. Key players operating in the functional food market offer a wide range of product portfolio targeting various application segments like sports nutrition, weight management, gut health, immunity, heart health, and brain health. They are engaged in new product launches and focus on marketing and promotional strategies to strengthen their global presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
