Functional Food Market (By Product: Dairy Products, Bakery & Cereals, Meat, Fish & Eggs, Fats & Oils, Soy Products, and Others; By Ingredient: Dietary Fibers, Carotenoids, Minerals, Fatty Acids, Vitamins, Prebiotics & Probiotics, and Others; By Application: Weight Management, Sports Nutrition, Digestive Health, Immunity, Cardio Health, Clinical Nutrition, and Others) - Global Market Size, Trends Analysis, Segment Forecasts, Regional Outlook 2020 - 2027


The global functional food market was valued at US$ 175 billion in 2020 and predicted to hit over US$ 309 billion by 2027 at a CAGR 7.5% during the forecast period 2020 to 2027.

Functional Food Market Size 2020 to 2027

Growth Factors

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.

Product Insights

Dairy products led the global functional food market in terms of revenue in the year 2019, 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.

Functional Food Market Share, By Product, 2020 (%)

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.

Application Insights

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 accounting for nearly 24% of the overall market in the year 2019. Further, the segment expected to witness a growth rate of around 8% between 2019 and 2027 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.

Functional Food Market Share, By Application, 2020 (%)

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.

Regional Insights

The Asia Pacific encountered as the largest markets for functional food and accounted for more than 40% of the total value share in the year 2019. 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.

Functional Food Market Share, By Region, 2020 (%)

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:

  • Cargill
  • BASF
  • General Mills Inc.
  • Standard Functional Foods Group Inc.
  • Coca-Cola Co.
  • GFR Pharma
  • Nutri-Nation
  • KFSU
  • Amway
  • Herbalife
  • Arla Foods

Report Scope of the Functional Food Market

Report Highlights Details
Market Size USD 309 Billion by 2027
Growth Rate CAGR of 7.5% from 2021 to 2027
Largest Market Asia Pacific
Fastest Growing Market North America
Base Year 2021
Forecast Period 2021 to 2027
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 2016 to 2027. This report includes market division and its revenue assessment by categorizing it depending on product, ingredient, application, and region:

By Product

  • Dairy Products
  • Bakery & Cereals
  • Meat, Fish & Eggs
  • Fats & Oils
  • Soy Products
  • Others

By Ingredient

  • Dietary Fibers
  • Carotenoids
  • Minerals
  • Fatty Acids
  • Vitamins
  • Prebiotics & Probiotics
  • Others

By Application

  • Weight Management
  • Sports Nutrition
  • Digestive Health
  • Immunity
  • Cardio Health
  • Clinical Nutrition
  • Others

By Regional Outlook

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Rest of the World
Request for Customize Report
Precedence offers custom market research services that help clients to get information on their business scenario required.

Frequently Asked Questions

What is the current size of functional food market?
According to Precedence Research, the global functional food market size was valued at USD 173.26 Billion in 2019 and expected to reach USD 309.00 Billion by 2027.
The global functional food market is poised to grow at a compound annual growth rate (CAGR) 7.5% during the forecast period 2020 to 2027.
The increasing prevalence of chronic diseases prompts consumers to shift towards healthier food consumption habits. Rising interest of consumer regarding immunity benefits of a proper diet accounts for the key factor that drives the growth of functional foods market across the globe. Geriatric population believed to get the maximum benefit from functional foods because of age-related health problems. Consequently, burgeoning geriatric population across the globe expected to bolster the market growth. Moreover, the rising disposable income along with increasing demand for fortified food & beverage products leads to increased uptake of functional foodsthis in turn propels the growth of the market.
Dairy products led the global market in terms of value in 2019, followed by the bakery & cereals segment and predicted to expand at a CAGR of nearly 8% during the analysis period.
The Asia Pacific encountered as the largest markets accounting for more than 40% of overall value share in 2019 due to the rising disposable income coupled with burgeoning population.
North America and Europe are the other most prominent revenue contributors owing to awareness among consumers pertaining to maintain good health and fitness through dietary plan
Some of the key players operating in the market are Cargill, BASF, General Mills Inc., Standard Functional Foods Group Inc., Coca-Cola Co., GFR Pharma, Nutri-Nation, KFSU, Amway, Herbalife, and Arla Foods among others.
Based on application, cardio health encountered the largest value share accounting for nearly 24% in 2019 because of rising demand for functional food in congestive heart failure, cardiovascular diseases, congenital heart defects, and hardening of arteries.

PROCEED TO BUY

   USD 4500
   USD 7000
   USD 9000

ASK FOR SAMPLE

No cookie-cutter, only authentic analysis – take the 1st step to become an Precedence client

Get a Sample