Functional Foods and Beverages Market

Functional Foods and Beverages Market Size

[170+ Pages Research Report] to surpass USD 549.79 billion by 2030 from USD 237.23 billion in 2020 at a CAGR of 8.9 % in the coming years, i.e., 2021-30. 

Functional food is described as food that has additional nutritional value as well as the potential to improve health. Functional food, according to physicians, is an important way to minimize disease risk and maintain optimum health. Similarly, a functional beverage is a non-alcoholic beverage flavored with vitamins, spices, minerals, amino acids, or raw fruit. Functional foods are natural and processed foods that contain nutritional elements as well as active biological compounds that, when consumed in the correct quantity and quality, result in a healthy body. Functional foods provide many health benefits for chronic disease prevention and treatment. The global functional foods market is being boosted by growing interest, rising healthcare spending, and raising public consciousness about the importance of eating a healthy diet to improve one's immune system.

Market Highlights

Global Functional Foods and Beverages market is expected to project a notable CAGR of 8.9% in 2030.

Food and beverage manufacturers are employing fortification of nutritional additives including omega-3 fatty acids, fibers, vitamins, minerals, and others in their product offerings. In addition to that, health-promoting ingredients or natural components have been discovered to have potential benefits for the human body in functional foods and beverages.        

Global Functional Foods and Beverages Market: Segments

Dietary Fibers segment to grow with the highest CAGR during 2020-30

Global Functional Foods and Beverages market is segmented by ingredient into Carotenoids, Dietary Fibers, Fatty Acids, Minerals, Prebiotics & Probiotics, Vitamins, and Others. Dietary Fibers segment held the largest market share in the year 2020. Fiber intake is linked to a variety of health benefits, including bowel health maintenance, cholesterol reduction, and blood sugar regulation, to name a few. These benefits, together with the increasing functional food industry, are expected to drive the dietary fiber segment forward. Dietary fiber, which is often found in fruits, vegetables, whole grains, and legumes, is best known for its ability to prevent and alleviate constipation. Fiber-rich foods, on the other hand, will help to maintain a healthy weight and reduce risk of diabetes and heart disease.

Cardio Health segment to grow with the highest CAGR during 2020-30

Global Functional Foods and Beverages market is divided by application into Sports Nutrition, Weight Management, Immunity, Digestive Health, Clinical Nutrition, Cardio Health, and Others. Over the forecast period, the Cardio health segment is projected to expand at the fastest pace owing to the demand for functional foods in the treatment of cardiovascular disorders, congestive heart failure, arterial hardening, and congenital heart defects Digestive health is expected to develop as a result of a strong desire to preserve digestive health among women throughout their reproductive lives and men, especially after 40 years of age.

Bakery & Cereals segment to grow with the highest CAGR during 2020-30

Global Functional Foods and Beverages market is segmented by product into Bakery & Cereals, Dairy Products, Fish & Eggs, Soy Products, Fats & Oils, and Others. Bakery & Cereals segment held the largest market share in the year 2020. During the forecast period, it is predicted to be the largest and fastest-growing market. The industry is expected to benefit from new innovations in the bakery and cereals sectors. Over the forecast era, rising demand for functional snack and cereal bars such as energy bars, protein bars, and nutrition bars is expected to drive significant growth. Companies like Kellogg are introducing new product lines to grab market share, so fortified cereals are expected to rise quickly.

Market Dynamics

Drivers

Rising interest coupled with health benefits and surging demand from end-users

The global functional foods market is being boosted by growing interest, rising healthcare spending, and raising public consciousness about the importance of eating a healthy diet to improve one's immune system. People who are concerned about the specific health benefits of their foods and beverages have become interested in functional foods and beverages. Consumers are more concerned with both convenience and health; as a result, convenience and health play a significant role in consumer decision-making when purchasing food and beverages. People choosing to avoid diseases by eating nutritious and nutritional food rather than becoming ill as a result of various diseases can be a global market growth driver. In the near future, young people who place a higher value on fitness will drive market growth in a positive direction.

Positive outlook in the BRICS countries and increase in distribution network

Over the forecast period, the market is expected to be driven by a positive outlook on the food and beverage industry, especially in Brazil, Russia, India, China, and South Africa (BRICS). Domestic food and beverage consumption is projected to rise as a result of the expansion of distribution networks, new product releases, and population growth in the BRICS. Furthermore, regulatory support for facilitating Foreign Direct Investment (FDI) at the domestic level in the BRICS as a result of political change, especially in India and China, is expected to amplify development. There has been a steady increase in life expectancy in recent years, as well as a greater emphasis on efficiency. Consumers are becoming more health-conscious and are paying more attention to their lifestyles and diets, resulting in an increase in demand for functional foods around the world.

Restraint

Bitter taste associated with the market due to herbs and botanical extracts

Bitter taste associated with the market due to use of herbs and botanical extracts is expected to be a critical factor relating to the purchase decision of the consumer, which is expected to hamper the market for functional food and beverages.

Global Functional Foods and Beverages Market: Key Players

• Nestle SA

Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis

• Archer Daniels Midland Co.
• General Mills, Inc.
• Kellogg Co.
• Keurig Dr. Pepper Inc.
• PepsiCo Inc.
• The Kraft Heinz Co.
• Campbell Soup Co.
• Fonterra Co-operative Group Ltd.
• Other Prominent Players

Global Functional Foods and Beverages Market: Regions

Global Functional Foods and Beverages market is segmented based on regional analysis into five major regions. These include North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. Global Functional Foods and Beverages in Asia Pacific held the largest market share in the year 2020. Due to a growing population and increasing disposable income, APAC is one of the largest markets for these items. Consumption of processed foods is rapidly increasing, and there is a growing understanding of health and fitness in emerging economies, which are major driving factors for the regional market. Growing consumer concerns about food safety are affecting consumer behavior and, as a result, driving development in the area. To combat the concerns about malnutrition and hunger, the government is required to prioritize food fortification. As a result, this factor is expected to have a major impact on business growth.

Global Functional Foods and Beverages Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Global Functional Foods and Beverages Market report also contains analysis on:

Functional Foods and Beverages Market Segments:

• By Ingredient
  • Carotenoids
  • Dietary Fibers
  • Fatty Acids
  • Minerals
  • Prebiotics & Probiotics
  • Vitamins
  • Others
• By Application
  • Sports Nutrition
  • Weight Management
  • Immunity
  • Digestive Health
  • Clinical Nutrition
  • Cardio Health
  • Others
• By Product
  • Bakery & Cereals
  • Dairy Products
  • Meat, Fish & Eggs
  • Soy Products
  • Fats & Oils
  • Others
• Functional Foods and Beverages Market Dynamics
• Functional Foods and Beverages Market Size
• Supply & Demand
• Current Trends/Issues/Challenges
• Competition & Companies Involved in the Market
• Value Chain of the Market
• Market Drivers and Restraints

Functional Foods and Beverages Market Report Scope and Segmentation