Functional Gummies Market

Report Overview

The global functional gummies market is valued at USD 8.6 Billion in 2022 and is expected to reach USD 25.3 Billion in 2032. It is expected to grow at a CAGR of 11.7% between 2023 and 2032.

Functional gummies are chewable supplements that provide all ingredients to promote healthy joint, bone, intestine, muscle function, etc. Functional gummies are the newest trend in the health and wellness world, offering a range of benefits. Functional gummies are one option for people who want to get their vitamins easily and conveniently.

These gummy snacks also come in flavors such as orange, grape, cherry limeade, etc. Functional gummies are chewable supplements that provide all ingredients to promote healthy joint, bone, intestine, muscle function, etc. These supplements comprise ingredients like glucosamine, MSM, gelatin, and chondroitin.

Individuals spend hours at the office, working out intensively and maintaining a healthy diet. To maintain such lifestyles, several demands are to be juggled, and ensuring that the digestive system is functioning properly cannot be easy. Functional gummies play an important role in maintaining a healthy gut as these are enriched with probiotics, prebiotics, vitamins, and enzymes, promoting healthy digestion.

Actual Numbers Might Vary in the Final Report

Key Takeaways

1. Market Growth: The global functional gummies market was valued at USD 8.6 billion in 2022 and is expected to reach USD 25.3 billion in 2032, exhibiting a compound annual growth rate (CAGR) of 11.7% between 2023 and 2032. This significant growth is indicative of the rising demand for functional gummies.
2. Functional Gummies Definition: Functional gummies are chewable supplements that offer a convenient way to obtain essential nutrients for various health benefits, including joint, bone, intestine, and muscle health. They come in various flavors, making them a popular choice for those looking to improve their well-being.
3. Nature of Gummies: The market is divided into two main segments based on the nature of gummies: gelatin and vegan. Vegan gummies are gaining popularity due to the increasing demand for plant-based and animal-friendly products, with a projected CAGR of 13.0%.
4. Product Types: The market is further segmented by product type into vitamins, DHA and omega-3, and probiotics gummies. Vitamin gummies dominate the market, with a CAGR of 13.2% and a revenue share of 55.5% in 2022. These gummies cater to a broad demographic, including children, adults, and the elderly.
5. End-User Segmentation: In terms of end-users, the adult segment holds the majority of the market share (81.8% in 2022). Adults are increasingly health-conscious and seek convenient ways to incorporate nutritional supplements into their daily routines, making functional gummies an attractive option.
6. Distribution Channels: The distribution channels for functional gummies include online platforms and offline stores. While offline stores held a significant share (57.0%) in 2022, online platforms are the fastest-growing segment with an estimated CAGR of 13.8% from 2023 to 2032, offering consumers convenience and accessibility.
7. Driving Factors: The demand for functional gummies is driven by their easy-to-consume and vegan-friendly nature. Consumers prefer the soft, chewable texture of gummies over traditional pills, especially when swallowing difficulties are a concern. The rise in health consciousness, increasing prevalence of cardiovascular diseases, and demand for user-friendly supplements are major growth drivers.
8. Growth Opportunities: There are opportunities for personalized functional gummies tailored to specific health goals, dietary preferences, or genetic profiles. Consumers increasingly seek products offering immunity support, stress relief, and improved sleep, making personalized gummies a potentially lucrative market.
9. Trending Factors: The market is witnessing innovation in ingredients, with a focus on natural and organic components. Consumers prioritize clean-label products and are interested in gummies made from natural and organic ingredients. Innovative ingredients such as adaptogens, botanical extracts, nootropics, and plant-based compounds are gaining traction for their potential health benefits.
10. Regional Analysis: North America is the leading market for functional gummies, with a 38.7% revenue share in 2022 and a projected CAGR of 11.9%. The region’s health-conscious consumers and higher disposable income contribute to its appeal. Europe is the second-largest market, with a revenue share of 26.0% in 2022 and a projected CAGR of 10.8%, driven by a diverse consumer base and strong wellness trends.
11. Key Market Players: Major players in the functional gummies market include Pharmavite LLC, Church & Dwight Co. Inc., Pfizer Inc., Unilever PLC, Bayer AG, Procter & Gamble Co., The Clorox Company, Nature’s Bounty Co., Catalent, Inc., and others. These companies are actively investing in collaborations, new product launches, and advanced production techniques to increase market share.

By Nature, Analysis

Vegan Gummies Are Accountable for The Majority Share Because of Rising Demand for Vegan Gummies Drives

By nature, the functional gummies market can be divided into vegan and gelatin gummies. The vegan gummies segment is estimated to be the most lucrative segment in the global functional gummies market and is projected to grow at a CAGR of 13.0%. Vegan gummies are packed with health benefits such as reducing inflammation, enhancing focus, and promoting a healthier sleep cycle.

There has been a steady increase in the number of people identifying as vegan or vegetarian worldwide. Health concerns, animal rights issues, and environmental concerns drive this shift. These consumers actively seek vegan alternatives in all product categories, including functional gummies.

In 2022, the vegan gummies segment is estimated to account for a revenue share of 74.8%. The gelatin gummies segment is estimated to account for a 25.2% revenue share in 2022 and is expected to register a CAGR of 9.8% during the forecast period. Gelatin is derived from animal collagen, usually from bovine (cattle) or porcine (pig) origins.

It provides the gummy texture that many consumers are familiar with. Gelatin gummies are suitable for the broader market but may not be consumed by vegetarians, vegans, or individuals with dietary constraints related to gelatin consumption.

Product Type Analysis

Vitamin Gummies Holds Significant Market Share Due to They Are Suitable for All Age Groups

The functional gummies market can be divided into vitamins, DHA and omega-3, and probiotics gummies based on product type. The vitamin gummies segment is estimated to be the most lucrative in the global functional gummies market, with a CAGR of 13.2% during the forecasted period and a 55.5% revenue share in 2022.

This dominance is because Vitamin gummies can cater to a vast demographic. They are suitable for children who might be finicky about swallowing pills, adults looking for a convenient supplement, and older individuals who might find gummies easier to consume than conventional tablets.

The DHA and omega-3 gummies segment held a revenue share of 25.3% in 2022 and will register a CAGR of 9.8% from 2023 to 2032. DHA and omega-3 gummies are popular supplementations, particularly for those who may not consume enough fish or other sources of omega-3 in their diet. These gummies are typically flavored and easy to consume, making them a convenient option for several individuals.

End-User Analysis

The Adult Segment Holds The Major Market Share in the End-Users Owing to Growing Health-Conscious Trend.

Based on end-user, the market is further divided into children and adults. The adult segment is the most lucrative in the global functional gummies market; it accounted for a market share of 81.8% in 2022 and a CAGR of 12.4% during the estimated period. In recent years, there has been an increasing emphasis on health and wellness among adults.

People are becoming more health-conscious and seeking convenient ways to incorporate nutritional supplements into their daily routines. Functional gummies provide a tasty and easy way for adults to address specific health concerns while enjoying a treat-like experience. The children segment is estimated to account for an 18.2% revenue share in 2022 and is expected to register a CAGR of 7.4% during the forecast period.

This can be attributed to health-conscious parenting; caregivers actively seek convenient and appealing ways to provide their children with essential nutrients and functional benefits.

Distribution Channel Analysis

The functional gummies market can be divided into online platforms and offline stores by distribution channels. The offline store’s segment accounted for a 57.0% share of total revenue in 2022 and is projected to register a CAGR of 9.7% during the forecast period.

The online platforms segment is the fastest growing segment in the market, with an estimated CAGR of 13.8% from 2023 to 2032, due to Online platforms providing unparalleled convenience and accessibility to consumers. They can browse a wide range of functional gummy products from the comfort of their homes, eliminating the need to travel to physical stores.

Key Market Segments

Based on Nature

• Gelatin Gummies
• Vegan Gummies

Based on Product Type

• Vitamin Gummies
• DHA and Omega-3 Gummies
• Probiotics Gummies

Based on End-User

• Children
• Adults

Based on the Distribution Channel

• Online Platforms
• Offline Stores

Driving Factors

Rising Demand for Functional Gummies as Consumers Seek Easy-to-Consume and Vegan-Friendly Health Supplements

Functional Gummies are gel-like products, softer in texture, making them easily chewable compared to tablets and hard pills. Additionally, individuals have reported globally a hard time swallowing pills. These benefits of gummies over traditional pills and tablets are expected to boost the revenue growth trajectory of this market.

Moreover, the increase in health-conscious consumer base, increasing prevalence of cardiovascular diseases (CVDs), and demand for supplements that are easy to consume are major factors expected to boost the economic growth of this market.

The booming dietary supplements industry and lifestyle changes due to increased awareness programs for preventive healthcare have positively impacted the demand for functional gummies, contributing to the growth of the functional gummies industry.

The increasing adoption of a vegan lifestyle in people has resulted in higher demands for vegan-based products. Individuals opt for functional gummies to fulfill the requirements of essential nutrients such as vitamins, proteins, etc. This factor is slated to augment the sales of functional gummies, further contributing towards the revenue growth prospects of the target industry.

Restraining Factors

Regulations, Formulation Complexity, and Competitive Constraints Are Challenges in the Functional Gummies Market

The functional gummies market faces strict regulations due to their health claims while being considered food products. Complying with diverse health authorities’ rules poses a hurdle for manufacturers. Developing functional gummies with accurate dosages of active ingredients while maintaining taste, texture, and stability can also be complex.

Unlike traditional supplements, gummies require specific formulation techniques to incorporate ingredients effectively. Moreover, the Easy availability of substitutes, the lower shelf-life of gummies compared to pills and powders, and the fact that gummies contain more sugar than other available supplements are expected to hinder the market sales revenue growth.

Growth Opportunities

Rising Demand for Personalized Functional Gummies Presents Lucrative Opportunities

Consumers are becoming more health-conscious and actively seeking products offering functional benefits, such as immunity support, stress relief, and improved sleep. Functional gummies have become an attractive alternative to traditional supplements due to their ease of consumption. Additionally, Consumers are increasingly seeking personalized solutions that address their unique health requirements. Personalized functional gummies could be a game-changer.

This approach could involve offering gummies catering to specific health goals, dietary preferences, or genetic profiles. Moreover, Manufacturers emphasize developing more advanced technologies so that nutraceuticals or active pharmaceutical ingredients can be more easily contained in higher concentration levels in functional gummies. This factor is expected to create new opportunities for players to expand their product portfolio, contributing positively to market revenue growth in the coming years.

Trending Factors

Rising Demand for Natural and Organic Functional Gummies Triggers Innovation in Ingredient Diversity and Health Benefits

Consumers are increasingly seeking personalized health products. This trend drives ingredient selection and dosage innovation, allowing companies to cater to broader consumer preferences. Also, as health-conscious consumers prioritize clean-label products, there’s a growing demand for functional gummies made from natural and organic ingredients.

The functional gummies market is witnessing a surge in innovative ingredients beyond traditional vitamins and minerals. Adaptogens, botanical extracts, nootropics, and plant-based compounds are gaining traction due to their potential health benefits. This trend is driving research and development efforts to identify new ingredients that can be incorporated into gummy formulations.

Furthermore, Consumers are becoming more informed about the potential benefits of various nutrients and bioactive compounds. This has led to a demand for functional gummies that provide specific health benefits, such as improved cognitive function, enhanced gut health, and beauty-related benefits like skin hydration and hair strength.

Regional Analysis

North America’s Functional Gummies Market Driven by Health-Conscious Consumers and Strong HI-High Disposable Income

North America is the most lucrative global functional gummies market. The North American market held a 38.7% revenue share in 2022 and is expected to register a CAGR of 11.9% during the forecast period. North American consumers are increasingly health-conscious and inclined towards wellness products. Additionally, North American consumers have relatively higher disposable income, which allows them to invest in premium products that contribute to their well-being.

Europe region is the second largest market of functional gummies, with a revenue share of 26.0%% in 2022, and projected to register a CAGR of 10.8% from 2023 to 2032 due to its diverse consumer base, high disposable income, strong wellness trends, and favorable regulatory environment that supports the growth of functional gummies.

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

The high level of competition has initiated the key players to increase their market share with collaborations, new product launches, acquisitions, and mergers. The companies are working on branding strategies to target the largest audience concerning specific applications. Players are also investing in advanced and automated production to increase efficiency.

Market Key Players

• Pharmavite LLC
• Church & Dwight Co. Inc.
• Pfizer Inc.
• Unilever PLC
• Bayer AG
• Procter & Gamble Co.
• The Clorox Company
• Nature’s Bounty Co.
• Catalent, Inc.
• Olly Public Benefit Corporation
• Herbaland
• Better Nutritionals LLC
• Rexall Sundown Inc.
• Santa Cruz Nutritionals
• Other Key Players

Recent Developments

• In March 2023, Restorative Botanicals launched its newest product line, featuring a range of mushroom supplements designed to support the body’s immune systems, brain function, gut health, and sleep. The products are available in capsules and gummies and contain 100% Certified Organic mushroom extracts, nootropics, and adaptogens. The gummies come in mandarin, elderberry, guava, and passionfruit, made with fruit-derived organic flavors.
• In February 2022, Amway introduced and launched nutritional supplements in the simplified form of jelly strips and gummies. A new range of products is designed for young ones as their go-to nutrition supplements.

Report Scope