The global functional food and beverage market size was valued at USD 333.34 billion in 2023 and is expected to grow from USD 364.18 billion in 2024 to USD 793.60 billion by 2032, registering a CAGR of 10.23% during the forecast period (2024–2032).
Asia Pacific dominated the market in 2023, accounting for 39.25% of the global share, and is anticipated to maintain its lead due to rising health awareness and dietary shifts. Meanwhile, the U.S. functional foods market is projected to expand significantly, reaching an estimated USD 117.22 billion by 2032. This growth is fueled by the increasing adoption of nutritionally rich and functional food products among health-conscious consumers.
Functional Foods and Beverages: A Growing Trend
Functional foods and beverages are fortified with essential nutrients such as amino acids, vitamins, minerals, proteins, fatty acids, and prebiotics, which offer multiple health benefits beyond basic nutrition. Their popularity has surged in recent years, driven by increasing consumer awareness of the role of diet in maintaining overall health and wellness.
Information Source: https://www.fortunebusinessinsights.com/functional-foods-market-102269
List of Key Players Covered in the Report:
- The Coca-Cola Company
- Celsius Holdings, Inc.
- PepsiCo, Inc.
- Glanbia plc
- Nestle S.A.
- Arla Foods amba
- Hearthside Food Solutions LLC
- Tyson Foods, Inc.
- General Mills, Inc.
- Danone S.A.
Market Driver
High Nutritional Value of Functional Foods to Drive Growth
The increasing popularity of fortified foods and beverages is primarily fueled by the fast-paced, often unhealthy lifestyles prevalent in urban areas. This has led to a growing demand for nutrient-rich products as consumers become more aware of health and wellness. Functional foods are increasingly favored for their long-term health benefits. For instance, omega-3 fortified products are known to enhance brain function, support heart health, and reduce inflammation. These attributes not only aid in managing chronic and lifestyle-related health conditions but also address undernutrition.
A report from the National Institutes of Health underscores the effectiveness of fortified foods. For example, the introduction of iron-fortified wheat flour in Jordan resulted in a 50% reduction in iron deficiency anemia among children, demonstrating the substantial impact of such initiatives in combating nutritional deficiencies.
Regional Analysis
Shifting Lifestyles in Asia-Pacific to Propel Growth at a Notable CAGR
Asia-Pacific is anticipated to dominate the functional foods and beverages market with a robust compound annual growth rate (CAGR) of 9.20% during the forecast period. This growth is driven by evolving lifestyles in the region, which have contributed to an increase in chronic health conditions. The rising consumption of fast food has heightened the demand for healthier, nutrient-rich alternatives, particularly in countries like India, where health awareness is steadily rising. Additionally, the tropical climate in the region amplifies the need for functional hydration products to counter high water loss, further driving demand.
North America is expected to be the second-largest market, with a projected CAGR of 7.06% during the same period, fueled by increasing consumer interest in health-centric products.
Competitive Landscape
Innovative Product Development to Foster Intense Market Competition
A key trend in the functional foods and beverages market is the strategic focus on innovation by leading companies. The continuous introduction of novel products not only strengthens market presence but also reshapes the competitive landscape. By delivering fresh and appealing options, companies can better align with evolving consumer preferences and maintain their relevance in a dynamic market.
Industry Developments:
- December 2019: GCI Nutrients, a U.S.-based nutraceuticals leader, launched a technical advisory service for functional food and beverage development. This service aims to support customers in utilizing the company’s branded ingredients to create custom functional products.
- October 2019: Drink Nutrient, an American functional beverage pioneer, introduced a new product line delivering the 13 essential vitamins in each pack. The drinks are free from GMOs, acrylamide, gluten, and artificial ingredients, enhancing their appeal to health-conscious consumers.
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