The global functional food market was valued at US$ 175 billion in 2020 and predicted to hit over US$ 309 billion by 2027 at a CAGR 7.5% during the forecast period 2021 to 2027.
Growth Factors:
Increasing demand for fortifying and nutritional food additives anticipated to propel the market growth in the coming years. Food &beverage manufacturers focus on deploying fortification of nutritional additives that include fibers, omega-3 fatty acids, minerals, vitamins, and others in their product offerings. The prime motive of incorporating the above-mentioned additives in the food &beverage products is to boost the nutritional content in food items.
Functional ingredients for example probiotics and omega-3 are largely used in yogurt and fish oils to decrease the risk of cardiovascular diseases along with for improving the quality of intestinal microflora. Such trend of adding functional ingredients in food products projected to trigger the market growth over the analysis period. Moreover, the Environmental Protection Agency (EPA) together with the European Commission have framed favorable regulations to augment the consumption as well as production of naturally derived ingredients in wake of increasing concerns for reducing Greenhouse Gas (GHG) emissions.
Additionally, positive outlook on food &beverage industry, especially in Brazil, Russia, India, China and South Africa (BRICS) predicted to continue to drive the market over the upcoming timeframe. Rising domestic consumption of food &beverages because of new product launches, the expansion of retail network, and population growth expected to influence the market growth in BRICS. In addition, regulatory support for assisting Foreign Direct Investments (FDI) at domestic level in BRICS owing to political change particularly in China and India aimed at improving the manufacturing output in the countries and expected to intensify the growth of the market.
Report Scope of the Functional Food Market
|
Report Highlights |
Details |
|
Market Size |
USD 309 Billion by 2027 |
|
Growth Rate |
CAGR of 7.5% from 2021 to 2027 |
|
Largest Market |
Asia Pacific |
|
Fastest Growing Market |
North America |
|
Base Year |
2021 |
|
Forecast Period |
2021 to 2027 |
|
Segments Covered |
Product, Ingredient, Application, Region |
|
Companies Mentioned |
Cargill, BASF, General Mills Inc., Standard Functional Foods Group Inc., Coca-Cola Co., GFR Pharma, Nutri-Nation, KFSU, Amway, Herbalife, and Arla Foods |
Product Insights
Dairy products led the global functional food market in terms of revenue in the year 2019, followed by the bakery & cereals segment and predicted to expand at a CAGR of around 8% during the analysis period. New developments across the bakery & cereals sector anticipated to boost the market growth.
Rising demand for functional snack along with cereal bars that include protein bars, energy bars, and nutrition bars likely to drive market growth over the forecast timeframe. Fortified cereals projected to grow at a rapid pace together with launch of new products from companies such as Kellogg to capture significant market share.
Application Insights
The global market functional foods was studied for various application segments that include weight management, clinical nutrition, sports nutrition, digestive health, immunity, and cardio health among others. Cardio health encountered the largest value share accounting for nearly 24% of the overall market in the year 2019. Further, the segment expected to witness a growth rate of around 8% between 2019 and 2027 because of rising demand for functional food in congestive heart failure, cardiovascular diseases, congenital heart defects, and hardening of arteries. Besides this, digestive health expected to register significant growth over in the upcoming time-period due to great interest among women during the course of their reproductive life along with men particularly after 40 years of age, to maintain a health digestive system.
Rising demand for functional foods & beverages owing to significant number of health objectives that includes weight loss, improving joint health, and bone &muscle strength. These food products help prominently in reducing the risk of type 2 diabetes and cardiovascular diseases by enhancing the digestion. They also proved effective in decreasing wrinkles on face. Functional foods promote optimal health by boosting metabolism, decreasing the risk of non-communicable diseases, aiding better digestion, improving nutrition absorption, and help to lose weight. The aforementioned factors remarkably trigger the demand for functional food in the digestive health segment.
Regional Insights
The Asia Pacific encountered as the largest markets for functional food and accounted for more than 40% of the total value share in the year 2019. The prominent growth of the region was mainly due to the rising disposable income coupled with burgeoning population. Rapid growth in the consumption of processed food together with rising awareness pertaining to fitness & health in the developing countries are the prime factors that drive the market growth.
Furthermore, the region is categorized by increasing concern for food safety among consumers that subsequently drives the growth of the region. Food fortification expected to be the prime focus of the government to fight against the increasing concerns of poverty and malnutrition. The aforementioned factor anticipated to contribute prominently towards the market growth.
Some of the prominent players in the Functional Food Market include:
Segments Covered in the Report
This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2030 and covers subsequent region in its scope:
By Product
By Ingredient
By Application
By Geography
North America
Europe
Asia Pacific
Latin America
Middle East & Africa (MEA)
Key Points Covered in Functional Food Market Study:
Cross-segment Market Size and Analysis for Mentioned Segments
Additional Company Profiles
(Upto 5 With No Cost)
Additional Countries (Apart
From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers