The global functional food market size was valued at USD 305.4 billion in 2022 and it is predicted to hit around USD 597.1 billion by 2032, growing at a registered CAGR 6.93% during the forecast period 2023 to 2032.
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.
Dairy products led the global functional food market in terms of revenue in the year 2022, 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.
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 in the year 2022. Further, the segment expected to witness a high growth rate of between 2023 and 2032 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.
The Asia Pacific encountered as the largest markets for functional food in the year 2022. 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.
Key Companies & Market Share Insights
The global functional food industry seeks intense competition among the industry participants.These market players have their manufacturing facilities and distribution channels spread across the globe. In addition, presence of dominant players offers significant challenges for the new entrants to gain foothold in the market.
Some of the prominent players in the functional food market include:
Report Scope of the Functional Food Market
|Market Size||USD 597.1 Billion by 2032|
|Growth Rate||CAGR of 6.93% from 2023 to 2032|
|Largest Market||Asia Pacific|
|Fastest Growing Market||North America|
|Forecast Period||2023 to 2032|
|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|
Segments Covered in the Report
This research study comprises complete valuation of the market revenue with the help of widespread quantitative and qualitative insights, and prognoses of the market. This report presents breakdown of market into forthcoming and niche segments. Additionally, this research study gauges market revenue growth and its drift at global, regional, and country from 2023 to 2032. This report includes market division and its revenue assessment by categorizing it depending on product, ingredient, application, and region:
By Regional Outlook
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