The Global Functional Food Market size is expected to reach $259.7 billion by 2027, rising at a market growth of 8.5% CAGR during the forecast period. Functional food refers to the modified food items which are beneficial in enhancing the health of a person. However, it doesn’t cure disease but it proves to be useful in decreasing the risk of fatal diseases by enhancing the health of the body by offering nutrients and proteins.
Functional food in the diet contributes to the person’s physiological state. Functional foods refer to those ingredients that offer different kinds of health advantages which are far more than just offering nutritional value. For instance, they may minimize nutrient deficiencies, prevent diseases, and support ideal growth & development. A few kinds of functional foods have supplements or other included ingredients that are made to enhance the health.
The growth of the global functional food market would be accelerated by the growing demand for fortifying and nutritional food additives. The manufacturers operating in the food and beverage industry are implementing fortification of nutritional additives like omega-3 fatty acids, minerals, vitamins, fibers, and others in their product offerings. The significant reasons behind including the above-mentioned additives in the food and beverage sector are to enhance the nutritional value in food products.
The global outbreak of corona virus has had a severe impact on how people view their diet, health, and wellbeing. There is a sharp increment in the fear of disease and concerns regarding well-being. COVID-19 has fueled the interest in functional foods that provide wellbeing advantages like immunity and stress management. A year into the COVID-19 crisis, concerns regarding health problems are on the sharp rise. This reveals that consumers have significantly changed their attitudes towards health and wellness because of the virus.
The demand for functional foods has been increasing during the pandemic. Due to the global corona virus crisis, consumers have become aware of the importance of healthy food in their diet so as to increase the immunity and prevent themselves from the deadly COVID-19 infection. Many consumers opt for functional foods and other related products due to their benefits. Thus, COVID-19 brought a positive impact on the global functional food market during the forecast period.
Based on Application, the market is segmented into Cardio Health, Sports Nutrition, Clinical Nutrition, Weight Management, and Others. Cardio health emerged as the leading segment by obtaining the highest revenue share of the global market in 2020. It would showcase a major growth rate throughout the forecast period due to the rising demand for functional food in different types of cardiovascular diseases, hardening of arteries, congestive heart failure, and congenital heart defect.
Based on Product, the market is segmented into Dairy Products; Meat, Fish & Eggs; Bakery & Cereals; Soy Products; Fats & Oils and Others. Other main products segment involves fish and eggs, meat, soy products, and fats & oils. New developments across the bakery and cereals sector would segment the market demand. Increasing demand for functional snack and cereal bars like energy bars, protein bars, and nutrition bars would boost the growth of the market during the forecast period. Fortified cereals would showcase a major growth rate as companies like Kellogg introducing new product ranges in order to leverage the emerging market opportunities.
Based on Ingredient, the market is segmented into Vitamins; Proteins & Amino Acids; Prebiotics & Dietary Fibers; Minerals; Probiotics and Others. The vitamins segment procured the highest revenue share of the global functional food market in 2020 followed by prebiotics & dietary fibers. Consumption of fiber offers a wide range of advantages such as bowel health maintenance, reducing cholesterol levels, and regulating blood sugar levels, among others. These benefits, along with the increasing food industry, would a key trend, boosting the growth of dietary fiber segment.
| Report Attribute | Details |
|---|---|
| Market size value in 2020 | USD 137.2 Billion |
| Market size forecast in 2027 | USD 259.7 Billion |
| Base Year | 2020 |
| Historical Period | 2017 to 2019 |
| Forecast Period | 2021 to 2027 |
| Revenue Growth Rate | CAGR of 8.5% from 2021 to 2027 |
| Number of Pages | 264 |
| Number of Tables | 433 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling, Competitive Landscape |
| Segments covered | Application, Product, Ingredient, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. Asia Pacific garnered the major revenue share of the global market in 2020. The growth of the regional market would be boosted by the launch of e-commerce portals, such as Ali-Baba and Made-in-China in Southeast Asia.
Free Valuable Insights: Global Functional Food Market size to reach USD 259.7 Billion by 2027
The major strategies followed by the market participants are Acquisitions. Based on the Analysis presented in the Cardinal matrix; Nestle S.A. is the major forerunner in the Functional Food Market. Companies such as Royal FrieslandCampina N.V., Glanbia PLC, and Danone S.A. are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Danone S.A., Glanbia PLC, Mars, Inc., Meiji Holdings Co., Ltd., Nestle S.A., Royal Frieslandcampina N.V., The Kraft Heinz Company, Hearthside Food Solutions LLC, Raisio PLC, and Sanitarium Health and Wellbeing Company.
By Application
By Product
By Ingredient
By Geography
The global functional food market size is expected to reach $259.7 billion by 2027.
Rising consumption of nutritive convenience food and fortified food are driving the market in coming years, however, high cost of functional food products have limited the growth of the market.
Danone S.A., Glanbia PLC, Mars, Inc., Meiji Holdings Co., Ltd., Nestle S.A., Royal Frieslandcampina N.V., The Kraft Heinz Company, Hearthside Food Solutions LLC, Raisio PLC, and Sanitarium Health and Wellbeing Company.
Yes, Many consumers opt for functional foods and other related products due to their benefits. Thus, COVID-19 brought a positive impact on the global functional food market during the forecast period.
Dairy Products segment garnered the maximum revenue share of the global functional foods market in 2020, followed by the bakery and cereals segment.
The prebiotics and probiotics segment would be the fastest growing segment during the forecast period.
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