The global functional foods and beverages market is expected to reach USD 793.60 billion by 2032, growing at a compound annual growth rate (CAGR) of 10.23% during the forecast period. According to Fortune Business Insights™, this growth will be driven largely by increasing global malnutrition rates. This forecast is detailed in their report, “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.”
The World Health Organization (WHO) reports that approximately 462 million people are underweight, and around 52 million children under five suffer from wasting. Nearly 45% of deaths among children under five are linked tao under-nutrition. In response to these challenges, governments are implementing measures to combat malnutrition. For example, in 2019, the UK government mandated folic acid fortification in flour to prevent congenital disabilities, and in July 2019, the Indian government began distributing rice fortified with folic acid, Vitamin B12, and iron through the Public Distribution System (PDS). These initiatives are expected to significantly boost the market for functional foods and beverages.
As of 2023, the market for functional foods and beverages was valued at USD 333.34 billion.
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 growing popularity of fortified foods and beverages can be attributed to the fast-paced and often unhealthy lifestyles common in urban environments. This trend underscores a rising demand for nutrition-rich products driven by increased health and wellness awareness. Functional foods, which provide various long-term health benefits, are becoming more attractive to consumers. For example, products enriched with omega-3 fatty acids are known to boost brain function, support heart health, and reduce inflammation. These benefits not only address chronic and lifestyle-related health issues but also help combat under-nutrition. The National Institutes of Health reported that introducing iron-fortified wheat flour in Jordan led to a 50% reduction in iron deficiency anemia among children, illustrating the significant impact of fortified foods on addressing nutritional deficiencies.
Regional Analysis
Evolving Lifestyles in Asia-Pacific to Aid the Region Register Impressive CAGR
The Asia-Pacific region is projected to lead the functional food and beverages market, with an anticipated growth rate of 9.20% CAGR during the forecast period. This growth is driven by the region's rapidly changing lifestyles, which are contributing to an increase in chronic conditions. For instance, the rising consumption of fast or “junk” food has led to a growing demand for nutritional options, as consumers become more health-conscious, particularly in countries like India. Additionally, there is a notable demand for functional hydration products in tropical countries, where high water loss from the body increases the need for replenishing beverages.
Following Asia-Pacific, North America is expected to be the second-largest market for functional foods and beverages, with a projected CAGR of 7.06% in the coming years.
Competitive Landscape
Development of Exciting Products to Stimulate Intense Competition
A key trend in the functional food and beverages market is the growing emphasis by leading companies on developing and launching innovative products. These frequent product launches not only help firms strengthen their market presence but also periodically shift the competitive dynamics of the industry. By introducing new and exciting offerings, companies can better position themselves and adapt to evolving consumer preferences.
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:
- 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.
Blog Related Insights:
Comments
0 comment