Functional Foods Market Size, Share, Growth Analysis and Forecast to 2032

Tara3042

2 weeks ago

Read Time:3 Minute, 51 Second

The global functional foods and beverages market is projected to reach USD 793.60 billion by 2032, growing at a compound annual growth rate (CAGR) of 10.23% during the forecast period. According to Fortune Business Insights™, this growth is primarily driven by rising global malnutrition rates. These findings are detailed in their report, “Functional Food and Beverages Market Size, Share & Industry Analysis, By Type (Cereals & Grains, Fats & Oils, Dairy Products, Bakery Products, and Other Functional/Fortified Foods), Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Retail, and Others), and Regional Forecasts, 2024 – 2032.”

The World Health Organization (WHO) reports that approximately 462 million people globally are underweight, with 52 million children under five suffering from wasting. Undernutrition contributes to nearly 45% of deaths in this age group. In response, governments worldwide have implemented measures to address malnutrition. For instance, the UK introduced mandatory folic acid fortification in flour in 2019 to reduce congenital disabilities. Similarly, India began distributing fortified rice enriched with folic acid, Vitamin B12, and iron through its Public Distribution System (PDS) in July 2019. Such initiatives are expected to drive significant demand for functional foods and beverages.

As of 2023, the market for functional foods and beverages was valued at USD 333.34 billion.

Information Source: https://www.fortunebusinessinsights.com/functional-foods-market-102269

Other than this, the report contains the following:

Detailed segmentation of the market and piece-meal study of the each segment;
Exhaustive research into the various market drivers and restraints;
Comprehensive analysis of the regional developments and competitive milieu of the market; and
Panoramic understanding of the industry outlook and trends shaping the market.

Market Driver

High Nutritional Value of Functional Foods to Spike Uptake

The growing popularity of fortified foods and beverages is largely attributed to the fast-paced, often unhealthy lifestyles prevalent in urban areas. This trend reflects a rising demand for nutrient-dense products, driven by increasing awareness of health and wellness. Consumers are increasingly seeking functional foods for their long-term health benefits. For instance, omega-3 fortified products are recognized for enhancing brain function, supporting heart health, and reducing inflammation. These benefits not only help manage chronic and lifestyle-related health issues but also play a vital role in addressing undernutrition.

A report from the National Institutes of Health highlights the profound impact of fortified foods. For example, the introduction of iron-fortified wheat flour in Jordan resulted in a 50% reduction in iron deficiency anemia among children, demonstrating the effectiveness of such products in alleviating nutritional deficiencies.

Regional Analysis

Evolving Lifestyles in Asia-Pacific to Aid the Region Register Impressive CAGR

The Asia-Pacific region is poised to lead the functional foods and beverages market, with a projected compound annual growth rate (CAGR) of 9.20% during the forecast period. This growth is primarily attributed to shifting lifestyles in the region, which have contributed to an increase in chronic health conditions. For example, the rising consumption of fast food has driven demand for healthier, nutrient-rich alternatives, particularly in countries like India where health awareness is on the rise. Additionally, the need for functional hydration products is significant in tropical climates, where high water loss necessitates replenishing beverages.

North America is expected to be the second-largest market, with a forecasted CAGR of 7.06% during the same period.

Competitive Landscape

Development of Exciting Products to Stimulate Intense Competition

A key trend in the functional foods and beverages market is the increasing focus of leading companies on developing and launching innovative products. These regular product introductions enhance market presence and actively redefine the competitive landscape. By delivering fresh and appealing options, companies can better adapt to changing consumer preferences, ensuring their relevance and competitiveness in a dynamic industry.

Industry Developments:

December 2019: GCI Nutrients, the US-based nutraceuticals leader, launched a new functional food and beverage technical advisory service. The aim behind setting up this division is to offer sound advice to customers who want to use the company’s branded ingredients to create their own functional food and beverage items.
October 2019: The American functional beverage pioneer Drink Nutrient introduced a new drink line, with each individual pack delivering the 13 essential vitamins, thereby enhancing the nutrition quotient of one’s drink. The offering does not contain GMOs, acrylamide, gluten, or any artificial ingredients.

List of Key Players Covered in the Report: