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 will be primarily driven by rising global malnutrition rates. This forecast is outlined in their report titled “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 are underweight, and around 52 million children under five suffer from wasting. Nearly 45% of deaths among children in this age group are linked to undernutrition. In response to these challenges, governments are implementing measures to combat malnutrition. For instance, in 2019, the UK government mandated folic acid fortification in flour to prevent congenital disabilities, and in July 2019, the Indian government began distributing rice fortified with folic acid, Vitamin B12, and iron through the Public Distribution System (PDS). These initiatives are expected to significantly enhance the market 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 can be attributed to the fast-paced and often unhealthy lifestyles prevalent in urban environments. This trend highlights an increasing demand for nutrition-rich products, driven by heightened health and wellness awareness. Consumers are finding functional foods, which offer various long-term health benefits, increasingly appealing. For instance, products enriched with omega-3 fatty acids are recognized for their ability to enhance brain function, support heart health, and reduce inflammation. These benefits not only address chronic and lifestyle-related health issues but also help combat undernutrition. The National Institutes of Health reported that the introduction of iron-fortified wheat flour in Jordan resulted in a 50% reduction in iron deficiency anemia among children, demonstrating the significant impact that fortified foods can have on addressing nutritional deficiencies.
Regional Analysis
Evolving Lifestyles in Asia-Pacific to Aid the Region Register Impressive CAGR
The Asia-Pacific region is projected to lead the functional foods and beverages market, with an anticipated growth rate of 9.20% CAGR during the forecast period. This growth is driven by the region's rapidly changing lifestyles, which are contributing to an increase in chronic conditions. For example, the rising consumption of fast or “junk” food has created a growing demand for nutritional options, as consumers become more health-conscious, particularly in countries like India. Additionally, there is a significant demand for functional hydration products in tropical countries, where high water loss increases the need for replenishing beverages.
Following Asia-Pacific, North America is expected to be the second-largest market for functional foods and beverages, with a projected CAGR of 7.06% in the coming years.
Competitive Landscape
Development of Exciting Products to Stimulate Intense Competition
A key trend in the functional foods and beverages market is the increasing focus by leading companies on developing and launching innovative products. These frequent product introductions not only help firms strengthen their market presence but also periodically alter the competitive dynamics within the industry. By offering new and exciting options, companies can better position themselves to adapt to changing consumer preferences.
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:
- The Coca-Cola Company
- Celsius Holdings, Inc.
- PepsiCo, Inc.
- Glanbia plc
- Nestle S.A.
- Arla Foods amba
- Hearthside Food Solutions LLC
- Tyson Foods, Inc.
- General Mills, Inc.
- Danone S.A.
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