Global Functional Foods Market By Product (Soy products, Dairy Products, Bakery & Cereals, Fats & Oils, Meat, Fish, & Eggs, and Other Products), By Ingredient, By Application, By Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Functional Foods Market size is expected to be worth around USD 678.3 Billion by 2032 from USD 306.2 Billion in 2023, growing at a CAGR of 8.5% during the forecast period from 2022 to 2032.

Functional foods can be explained as upgraded food that helps to improve health. It does not cure the disease but can reduce the risk of having one. It provides healthy and needed nutrition, like proteins and fibers, to the body. This helps the body’s organs to function properly and carry out seamless functioning throughout the body.

In simple words, the functional foods in regular meals provide extra benefits to the state of the body of any individual. The rising awareness among individuals towards good health has shown a significant rise in the adoption of functional foods in the market.

Moreover, the increasing demand for nutrient-rich food among individuals across the world due to busy and hectic lifestyles for better health is driving the growth of the functional foods market. With increasing innovations in the healthcare sector, life expectancy has increased over the last few years.

This is due to the innovations and research in the healthcare sector, which offers different solutions to live longer. However, rising cost and prices in the healthcare sector has forced individuals to adopt a healthy lifestyle by consuming nutrient-rich food to prevent the malfunction of the body’s vitals.

This is propelling the growth of functional foods in the market. With the wide adoption of healthy food across the world, the functional foods market is anticipated to experience significant growth in the upcoming period.

Key Takeaways

1. Market Growth: The Functional Foods Market is projected to reach a substantial size of approximately USD 678.3 Billion by the year 2032. This represents a notable increase from the USD 306.2 Billion market size in 2022, with a Compound Annual Growth Rate (CAGR) of 8.5% over the forecast period from 2022 to 2032.
2. Definition of Functional Foods: Functional foods are enhanced food products designed to improve health by providing essential nutrition like proteins and fibers. While they don’t cure diseases, they can reduce the risk of developing health issues and help maintain overall bodily functions.
3. Rising Health Awareness: Increased awareness among individuals about the importance of good health has led to a significant uptick in the adoption of functional foods. This trend is largely driven by people seeking nutrient-rich options to combat the challenges of busy and hectic lifestyles.
4. Longer Life Expectancy: The healthcare sector’s innovations and research have contributed to an increase in life expectancy. However, the rising cost of healthcare has prompted individuals to embrace healthier lifestyles, including consuming nutrient-rich foods to prevent health issues.
5. Driving Factors: The growth of the functional foods market is primarily driven by rising health awareness, busy lifestyles, and the preference for nutrient-rich foods over fast and unhealthy options. Governments and nonprofit organizations are also contributing to this growth by promoting nutrient-rich diets.
6. Product Analysis: Dairy products, including milk, yogurt, and buttermilk, dominate the product segment of the functional foods market. These products are rich in nutrients like calcium and proteins, making them popular choices for health-conscious consumers.
7. Ingredient Analysis: Vitamins are a key ingredient in functional foods due to their importance in providing essential nutrients for a healthy diet. Additionally, carotenoids, such as beta carotene and lycopene, are gaining significance for their potential health benefits.
8. Application Analysis: Cardiohealth is a leading application segment in the functional foods market, driven by the demand for foods that can help prevent cardiovascular diseases. Digestive health is also on the rise, especially among individuals above 40 years of age.
9. Regional Dominance: The Asia Pacific region holds a significant share of the global functional foods market, driven by a large population, increasing disposable incomes, and growing health awareness. North America is another prominent region, with individuals adopting healthy food choices.
10. Key Players: The global functional foods market features both major and small companies. Key players include BASF SE, Herbalife International of America Inc., Amway Corp., The Coca-Cola Company, and Cargill Incorporated, among others.
11. Growth Opportunities: Increasing demand for natural carotenoids and ongoing developments in nutrient-rich food items present opportunities in the market. Consumers prefer natural over synthetic carotenoids for purity.
12. Latest Trends: Functional ingredients like omega-3 and probiotics are being incorporated into various food items to enhance their nutritional value. On-the-go snacks with high nutrient content are gaining popularity, catering to busy lifestyles.

Driving Factors

Rising Health Awareness and Busy Schedules Among the Individuals to Drive the Market Growth

The increasing demand for nutrient-rich food due to busy schedules, hectic lifestyles, and emerging diseases is driving the growth of the functional foods market. The increased life expectancy and health awareness have been promoting the use of functional foods among individuals for the last few years. Individuals prefer functional food over fast food and hard-to-digest food for its benefits.

These key factors are boosting the growth of the functional foods market. Many governments and nonprofit organizations across the world are spreading awareness of nutrient-rich food and good food habits. This is helping the functional foods market to grow further.

Moreover, the key companies in the functional foods market are fortifying their products with nutritional additives like fibers, minerals, omega-3 fatty acids, vitamins, and many other nutrients. Adding such nutrients to food items increases the nutritional value of the food item and also raises consumer demand in the market. These strategies by the key companies are driving the growth of the functional foods market.

Restraining Factors

High Investment and Complex Production Operations Obstructing the Market Development

The development of the nutritional contents by commercial aspects in functional foods requires a huge amount of investment for production. The development of the nutrients at the production level requires a lot of money and specific conditions to produce proper nutrients.

It involves complex processes and advanced technological conditions to comply. Therefore, it requires huge funding for the research and development of the companies for the development of functional foods. This high cost of production and complex operations are obstructing the growth of the functional foods market.

Product Analysis

The Dairy Products Dominated the Product Segment of the Functional Foods Market

The functional foods market is classified into soy products, dairy products, bakery & cereals, fats & oils, meat, fish, & eggs, and other products, on basis of products. From these products, dairy products lead the product segment by accounting for a significant revenue share in the global functional foods market.

Dairy products like milk, yogurt, buttermilk, and many other products are rich in nutrients like calcium and proteins. Therefore, many individuals prefer to consume dairy products as a functional food in their diet. This is driving the growth of the functional foods market in the product segment.

However, the bakery and cereal products are also anticipated to experience significant growth during the forecast period. The increasing developments in bakery and cereal products are expected to boost the growth of the bakery and cereal segment during the forecast period.

The increasing consumer demand for snacks like nutrition bars, energy bars, and protein bars will further drive the growth of the market during the forecast period.

Ingredient Analysis

The High Importance of Vitamins in the Nutrients Helps the Market Grow

Based on ingredients, the functional foods market is classified into dietary fibers, minerals, carotenoids, vitamins, probiotics & prebiotics, and other ingredients. Among these ingredients, the vitamin segment dominates the ingredient analysis in the global functional foods market.

The growth of the vitamins is owing to the high importance of the vitamins in healthy nutrients. The increased consumer preference towards a healthy and nutrient-rich diet is boosting the growth of vitamins in the ingredients segment of the functional foods market.

Also, the carotenoids are anticipated to grow significantly during the forecast period. Carotenoids are available in various types of forms, like beta carotene, lycopene, astaxanthin, canthaxanthin, annatto, and lutein.

The wide applications of these carotenoids in the treatment of cancer, diabetes, and eye disorders are expected to drive the growth of carotenoids in the ingredient segment of the global functional foods market.

Application Analysis

Cardio Health Leads the Functional Foods Market with Major Share in Account.

Functional foods are divided into sports nutrition, weight management, clinical nutrition, digestive health, immunity, cardio health, and other applications on the basis of application. Out of these applications, cardiohealth holds the major share in the global functional foods market due to the increasing demand for functional foods for the prevention of congestive heart failure, congenital heart failure, hardening of veins, and other cardiovascular diseases.

This has significantly raised the demand for healthy, functional foods in the market. Also, digestive health is anticipated to experience significant growth due to the increasing adoption of ladies above 40 years of age to maintain a good digestive system.

Moreover, sport-playing athletes and individuals have a big impact on the growth of sports nutrition in the functional foods market.

Key Market Segments

Product

• Soy products
• Bakery & cereals
• Meat, fish, & eggs
• Dairy Products
• Fats & oils
• Other Products

Ingredient

• Vitamins
• Minerals
• Dietary Fibers
• Carotenoids
• Probiotics & prebiotics
• Other Ingredients

Application

• Sport Nutrition
• Digestive Health
• Weight Management
• Immunity
• Clinical Nutrition
• Cardio Health
• Other Applications

Growth Opportunity

Increasing Natural Carotenoids Demand and Ongoing Developments are Expected to Create Many Opportunities

Many individuals across the world prefer to consume natural carotenoids over synthetic carotenoids due to their pure form. The production of synthetic carotenoids has a risk of contamination. Therefore, individuals prefer to consume natural carotenoids over synthetic carotenoids.

This will encourage many companies to offer natural carotenoids in functional food items thereby creating many lucrative opportunities in the market.

Also, with increasing health awareness, the demand for nutrient-rich food items has also risen in the last few years. To fulfill the market demand, many companies are focusing on the development of more nutrient-rich food items in the market. This is anticipated to create many opportunities in the market over the forecast period.

Latest Trends

Increasing Demand for Functional Ingredients in Food Items and the Rising Popularity of on-the-go snacks

The functional nutrients and ingredients like omega-3 and probiotics are used in huge amounts in yogurt and fish oils to improve the quality of the microflora in the intestine and to reduce the risk of cardiovascular-related diseases. This trend of adding extra functional nutrients to food items is anticipated to propel the growth of the functional foods market during the forecast period.

Also, the trend of on-the-go snacks is significantly affecting the growth of the functional foods market. Many companies are offering on-the-go snacks with high nutrient content. This attracts people to consume on-the-go snacks in their busy and hectic life schedules. Many individuals prefer on-the-go snacks with high nutrient contents, and this is positively affecting the growth of the functional foods segment.

Regional Analysis

The Asia Pacific Region Dominates the Global Functional Foods Market by Covering Major Revenue Share.

The Asia Pacific region leads the functional foods market by accounting for a major revenue share of 33.4% in the market. The presence of a major population in the region and increasing disposable incomes of individuals are driving the growth of the Asia Pacific region in the global functional foods market.

The individuals in the Asia Pacific region have become more aware of health and started to consume nutrient-rich and healthy food. This is also fueling the growth of the functional foods market in the Asia Pacific region.

After the Asia Pacific region, North America covers a big share of the functional foods market. The growth of North America is attributed to the increasing inclination of individuals towards healthy food items for applications in cardio and digestive health, better immunity, and weight management.

Individuals are adopting a healthy lifestyle by consuming functional food products in the North American region. This is propelling the growth of North America in the global functional foods market.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

The global functional foods market is fragmented into many small and big companies. Major players in the market are adopting various strategies like collaboration, partnership, mergers, and acquisition to expand their share in the market and strengthen their position in the market.

Some of the key players are BASF SE, Herbalife International of America Inc., Amway Corp., The Coca-Cola Company, Cargill Incorporated, GFR Pharma, Arla Foods, Nutri Nation, and Other Key Players

Top Key Players

• BASF SE
• Amway Corp.
• Herbalife International of America Inc.
• The Coca-Cola Company
• Cargill Incorporated
• GFR Pharma
• Cargill Incorporated
• Standard Functional Foods Group Inc.
• Arla Foods
• Nutri Nation
• Other Key Players

Recent Developments

• In March 2022, Danone introduced their new drinkable yogurt Activa+, which offers better immunity and health. Activa+ contains zinc vitamins D and C to maintain a good immune system.
• In July 2022, Laira Superfood launched their new plant-based protein bar which is made from hemp seeds, dietary fibers, peas, and all the needed amino acids.

Report Scope