Functional Food Market Size & Growth| Industry Forecast 2028

report image

Functional Foods Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Product Type (Bakery and Confectionery, Dairy and Frozen Desserts, Sweet and Savory Snacks, Breakfast Cereals, and Others), Category (Organic and Conventional), and Distribution Channel (Supermarkets and Hypermarkets, Convenience Stores, Online Retail, and Others)

Publication Month: Mar 2022 | Report Code: TIPRE00018000 | No. of Pages: No. of Pages150 | Category: Food and Beverages | Status: Published

The functional foods market was valued at US$ 233,620.18 million in 2021 and is projected to reach US$ 418,439.42 million by 2028. It is expected to grow at a CAGR of 8.7% from 2021 to 2028.

Functional foods are whole, fortified, enriched, or improved foods that give health benefits and essential nutrients (e.g., vitamins and minerals) when consumed in adequate amounts as part of a varied diet regularly. Functional foods have unique health benefits beyond the typical daily intake of nutrients, such as increased bone health, cholesterol management, and improved heart health. Further, functional foods market expansion is expected to be driven by the rising demand for nutritious and fortifying food additives. Food manufacturers are fortifying their products with healthy additions such as omega-3 fatty acids, fiber, vitamins, and minerals. The goal of adding the additives mentioned above into the food industry is to raise the nutritional value of food items.

Asia Pacific held the largest share of the global functional foods market in 2020 and Asia Pacific is expected to grow significantly over the forecast period. An increase in consumer interest and a better understanding of the immunity-boosting properties of appropriate diet and dietary habits are among the primary drivers fueling the expansion of functional foods in the region. Further, fast food intake is causing harmful changes in health conditions and increasing the incidence of chronic diseases such as diabetes and obesity. Consumers are spending more money on nutritional foods to boost their general health as they become more aware of these health issues, increasing the region's functional foods market growth.


Strategic Insights

Report Coverage - Functional Foods Market
Report CoverageDetails
Market Size Value inUS$ 233,620.18 million in 2021
Market Size Value byUS$ 418,439.42 million by 2028
Growth rateCAGR of 8.7% from 2021 to 2028.
Forecast Period2021- 2028
Base Year2021
No. of Pages150
No. of Tables83
No. of Charts & Figures81
Historical data availableYes
Segments coveredProduct Type, Category, and Distribution Channel
Regional scopeNorth America; Europe; Asia Pacific; Latin America; MEA
Country scopeUS, UK, Canada, Germany, France, Italy, Australia, Russia, China, Japan, South Korea, Saudi Arabia, Brazil, Argentina
Report coverageRevenue forecast, company ranking, competitive landscape, growth factors, and trends
Free Sample Copy Available

Impact of COVID-19 Pandemic on Functional Foods Market

The COVID-19 pandemic affected many industries due to nationwide lockdowns, business shutdowns, and supply chain disruptions. There was a mixed impact of the pandemic on the functional foods market. Initially, due to lockdowns and business shutdowns, manufacturers suffered from a shortage of raw materials and labor, which affected their production and supply. However, as people became more health-conscious, they preferred health-boosting products. Functional foods experienced significant demand as they help improve bone health, manage cholesterol levels, and heart health. Moreover, the demand for functional or fortified foods has expanded throughout many regions due to positive and intense marketing by corporations and recommendations from health specialists such as doctors, nutritionists, and others. For instance, according to the Functional Food & Beverage 2020 Report from the Hartman Group, based on April research, 31% of consumers are taking more supplements, and 29% are consuming more functional foods/beverages due to the pandemic. Furthermore, many nations are vaccinated, and governments have relaxed the restrictions imposed on manufacturing and trade. Thus, the COVID-19 pandemic significantly impacted the functional foods market.

Functional Foods Market Breakdown – by Region

Functional Foods Market Breakdown – by Region

Get more information on this report :

Market Insights

Rising Demand for Healthy Snacking 

Due to recent changes in consumer behavior, the worldwide snacks market is shifting away from oily-spicy snacks and toward healthier, sugar-free, nutrient-rich, and low-oil variants packaged in small quantities. This is boosting the growth of the functional foods market as these foods are typically high in important nutrients, including vitamins, minerals, healthy fats, and fiber. New-age consumers seek nutritious, on-the-go, and affordable snacking options that suit their daily nutritional demands while appealing to their taste buds. For instance, according to a recent Mondelez survey, over 59% of adults worldwide prefer to consume multiple small meals throughout the day rather than a few larger ones. Consumers are increasingly interested in functional snacks for energy, focus, and relaxation, particularly in the form of bars and meal replacement foods. Furthermore, incorporating a personalized nutrient premix into a snack food is an effective strategy to incorporate beneficial nutrients such as omega-3 fatty acids, vitamins, and minerals. Functional snacks not only fill the stomach but also provide a longer-lasting cure to hunger. These ingredients supply the building blocks that the body requires while eating nutrient-dense foods. As a result, people will not be as hungry throughout the day. This factor is expected to provide several key trends that will impact the global functional foods market over the coming years.

Category Insights

Based on category, the functional foods market is segmented into organic and conventional. The conventional segment held a larger market share. The organic segment is projected to grow at a faster CAGR during the forecast period. The increasing demand of consumers for organic functional food has motivated the companies and cultivators to promote organic farming, which is driving the segment. Manufacturers are developing organic functional food to cater to the increasing demand from consumers. For instance, Nature's Path Foods, a US manufacturer of packaged certified organic breakfast cereal, reported stellar growth for its Organic Optimum Power Breakfast Cereal. Thus, increased demand for organic foods due to the rise in health awareness, as well as awareness about the harmful effects of pesticides, is driving the organic functional food segment.

Product Type Insights

Based on product type, the functional foods market is segmented into bakery and confectionery, dairy and frozen desserts, sweet and savory snacks, breakfast cereals, and others. The dairy and frozen desserts segment is expected to hold the largest market share in the global functional foods market over the forecast period. Fermented dairy products provide health benefits and are widening the range of functional dairy products. Along with this, the nutritional benefits provided by milk play a significant role in controlling chronic diseases. Fortified milk contains various nutrients, and it is a good source of vitamin A and D and helps prevent iron deficiency anemia in children. It also helps improve bone health as fortified milk is a good source of calcium, phosphorous, and vitamin D. Frozen dessert is basically a dessert made by freezing liquids, semi-solids, and sometimes solids. Functional frozen desserts are providing health benefits to the consumers as they include various functional ingredients such as prebiotics and probiotics. Thus, the health benefits offered by functional frozen desserts are fueling the segment’s growth in the global functional foods market.

Functional Foods Market, by Category – 2020 and 2028

Functional Foods Market, by Category – 2020 and 2028

Get more information on this report :


Distribution Channel Insights

Based on distribution channel, the functional foods market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others. The supermarkets and hypermarkets segment accounted for the largest market share in the functional foods market in 2020, while the online retail segment is expected to be the fastest-growing segment during the forecast period. The e-commerce boom has effectively supplied significant opportunities to online retail sales of functional food products. Following the commencement of the pandemic, leading manufacturers are more actively accessing popular e-commerce platforms with a mix of tempting prices, robust sales and support, and an upgraded shopping experience for consumers. This aspect is expected to help online platforms become one of the fastest-growing distribution channels globally. These factors are driving the online retail channel segment of the functional foods market.

The key players operating in the functional foods market include Unilever; Clif Bar & Company.; Laird Superfood; Abbott; Danone S.A.; GENERAL MILLS, INC.; HILDUR; Nestlé;  Kellogg Company; and Good Source Foods, LLC. These players are engaged in developing innovative products to meet the emerging consumer trends. Moreover, they are involved in mergers & acquisitions, business expansion, and partnerships to expand their market share globally.

Report Spotlights

  • Progressive industry trends in the functional foods market to help players develop effective long-term strategies
  • Business growth strategies adopted by developed and developing markets
  • Quantitative analysis of the functional foods market from 2019 to 2028
  • Estimation of global demand for functional foods
  • Porter's five forces analysis to illustrate the efficacy of buyers and suppliers operating in the industry
  • Recent developments to understand the competitive market scenario
  • Market trends and outlook, as well as factors driving and restraining the growth of the functional foods market
  • Assistance in the decision-making process by highlighting market strategies that underpin commercial interest, leading to the market growth
  • The size of the functional foods market size at various nodes
  • Detailed overview and segmentation of the market, as well as the functional foods industry dynamics
  • Size of the functional foods market in various regions with promising growth opportunities

Frequently Asked Questions

The major key players operating in the global functional foods market include Abbott Laboratories; Clif Bar and Company; Danone S.A.; General Mills, Inc; Good Source Foods, LLC; Hildur Functional Foods Pvt. Ltd; Kellogg Company; Laird Superfood; Nestlé S.A.; and Unilever Plc.
In 2020, Asia Pacific dominated the global functional foods market. The region is expected to continue its dominance during the forecast period. Trends in this market are influenced by the increased demand for nutrient-rich foods as well as the rising trend of healthy snacking across the region. The increased prevalence of chronic diseases across the region is also driving the demand for functional foods to support the healthier lifestyle of the consumers.
The market for the organic segment is expected to grow at a faster pace during the forecast period due to the increased concern regarding personal health, the environment, and animal welfare. The growing environmental concerns over the use of harmful chemicals in agriculture and farming and its harmful effects on consumers’ health have led to an increased demand for organic functional foods.
The increased demand for nutrient-rich foods as well as the increased prevalence of chronic diseases across the world is driving the growth of the functional foods market. Along with this, the COVID-19 pandemic has had a significant impact on consumer buying behavior and eating habits. There has been an increase in health concerns and the growing awareness regarding the consumption of natural and functional food post-pandemic which is also driving the growth of the functional foods market. Along with this, the rising trend of healthy snacking across the world is also increasing the demand for functional foods.
In 2020, the dairy & frozen dessert segment accounted for the largest functional foods market share, based on product type. Consumers are increasingly consuming dairy products as it is important for building healthy bones and for maintaining a healthy weight. Yogurt is the most popular functional dairy product and is an excellent source of protein, calcium, and potassium. Also, there is a growing trend of fortification of dairy products which further drives the growth of the segment.
Based on product type, the sweet and savory snacks segment was the fastest-growing segment in the market. The growing trend of healthy snacking across regions such as North America, Europe, and the Asia Pacific is driving the demand for savory snacks across the world. Consumers are increasingly interested in functional snacks for energy, focus, and relaxation, particularly in the form of bars and meal replacement foods.

The List of Companies - Functional Foods Market

  1. ABBOTT LABORATORIES
  2. CLIF BAR AND COMPANY
  3. DANONE S.A.
  4. GENERAL MILLS, INC
  5. GOOD SOURCE FOODS, LLC
  6. HILDUR FUNCTIONAL FOODS PVT. LTD
  7. KELLOGG COMPANY
  8. LAIRD SUPERFOOD
  9. NESTLé S.A.
  10. UNILEVER PLC
  • Save and reduce time carrying out entry-level research by identifying the growth, size, leading players, and segments in the global functional foods market.
  • Highlights key business priorities in order to assist companies to realign their business strategies
  • The key findings and recommendations highlight crucial progressive industry trends in the global functional foods market, thereby allowing players across the value chain to develop effective long-term strategies
  • Develop/modify business expansion plans by using substantial growth offering developed and emerging markets
  • Scrutinize in-depth global market trends and outlook coupled with the factors driving the functional foods market as well as those hindering it.
  • Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing, and distribution
TIPRE00018000
Your data will never be shared with third parties, however, we may send you information from time to time about our products that may be of interest to you. By submitting your details, you agree to be contacted by us. You may contact us at any time to opt-out.

Get the Latest COVID-19 Analysis on this market




tip-analyst

Have a question?

Shejal will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.

Speak To Analyst
Pricing
  • $3000
  • $4550
  • $6550
  • $8550

Sample PDF showcases the content structure and the nature of the information included in the report which presents a qualitative and quantitative analysis.

    Inquire for Discount