Market Overview:
Global Functional Food Market Size Was Valued at USD 218.41 Billion In 2022 And Is Projected to Reach USD 313.53 Billion By 2030, Growing at A CAGR of 5.3% From 2023 To 2030.
Functional foods are types of foods that offer health benefits and additional nutritional value to the human body. Foods fortified with fiber, probiotics, prebiotics, vitamins, and minerals, as well as fruits, whole grains, fermented foods, seeds, nuts, and vegetables are some of the nutrient-rich functional foods. Modified functional foods such as yogurt, milk, rice, coconut, almond and cashew milk, eggs, granola, pasta, and others are some of the healthy alternatives providing nutritional benefits. Functional foods are high in demand as they prevent nutrition deficiencies, cell damage, and chronic diseases, and they boost the growth and development of infants and children.
Top Key Players in the Functional Food Market:
Merit Functional Foods (Winnipeg),0020Danone SA (France), Del Monte Pacific Limited (DMPL) (Singapore), Dr Pepper Snapple Group, Inc. (USA), General Mills, Inc. (USA), Glanbia Nutritionals Limited (UK), MaxiNutrition (UK), GNC Holdings, Inc. (USA), Hangzhou Wahaha Group Co., Ltd. (China), Herbalife International, Inc. (USA), Kellogg Company (USA), Meiji Holdings Co., Ltd. (Japan), Natural Products, Inc., and Other Major Players.
Market Dynamics and Factors for the Functional Food Market:
Drivers:
Rising Demand for Nutritional and Fortified Food products
In recent years, population around several developing economies have changed their eating habits, dietary patterns, and purchasing behavior owing to the rising chronic and lifestyle diseases. Increasing stress levels and hectic lifestyles have contributed to such occurrence of health diseases. This led to a drastic change in eating habits, and the replacement of meals with healthy snacking options such as protein bars and nutritional biscuits. Also, the ongoing trend of consuming protein-rich food products as it is considered anti-sugar, anti-fat, and a source of instant energy, will support the expansion of the market. Furthermore, to improve nutrition and add health benefits, fortified food products are high in demand.
Opportunities:
Adoption of Emerging Technologies in the Functional Food Industry
The introduction and adoption of emerging technologies such as high-hydrostatic pressure, encapsulation, radio-frequency drying, ultrasound-assisted and microwave-assisted extraction, and bio-encapsulation drive the growth of technological innovations in the functional food ingredients industry. In addition, the newly adopted technologies such as pulsed electric fields and high-voltage electrical discharge supported the growth in the development of functional ingredients. Further, for the overall simplification of processes and fast growth, the adoption of new technologies can be a lucrative opportunity. For instance, omega-3 fatty acids possess bad odor. Thus, the fragrance and taste of these ingredients are enhanced by using encapsulation technology.
Segmentation Analysis of the Functional Food Market:
By Ingredient, the carotenoids segment is expected to have the highest share of the functional food market in the analysis period. Carotenoids act as photoprotective agents and as light-harvesting pigments. Carotenoids are also essential in reducing the risk of several ailments, oxidative stress, and eye-related disorders.
By Product, the dairy product segment holds the largest market share. The increasing consumer inclination towards aiding digestive health has influenced the market growth of probiotics and prebiotics dairy products. Additionally, increasing spending on healthy and cost-effective dairy products such as yogurt is most likely to drive the growth of the dairy product segment.
Regional Analysis of the Functional Food Market:
Asia-Pacific is the major dominating region for functional food products and ingredients. Rising consumer interest, and a better understanding of the immunity-enhancing property of proper diet and food habits, are some of the major factors driving the market growth of functional foods in this region. Also, there is a huge demand for vitamin-fortified and mineral-enriched food and beverage products in many parts of the Asia Pacific region. Furthermore, in countries such as China, Japan, and India, key players are becoming more creative and innovative with dairy packaging, tastes, flavors, and ingredients by introducing fortified variants to the marketplace. Yogurt, owing to its multifunctional properties, holds great demand among consumers. A large portion of the Chinese population is lactose intolerant.
Key Industry Development:
- In November 2021, Merit Functional Foods, a solutions-based plant protein company, announced that its new 94,000-square-foot facility in Winnipeg, Manitoba, is scaled completely to supply leading food and beverage customers with the best and highest purity pea and canola proteins available for use in plant-based applications.
- In August 2021, Danone expanded its collaboration with artificial intelligence firm Brightseed to investigate the health benefits of plants. Over the forthcoming years, the two firms will together explore the potential of lesser-known plants and many common crops, as well as work on building a framework for a health-focused and regenerative global food system, all while accelerating Danone's plant-based product development.
