Functional Food And Beverages Market
PUBLISHED: 2023 ID: SMRC24069
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Functional Food And Beverages Market

Functional Food and Beverages Market Forecasts to 2030 - Global Analysis By Type (Functional Foods and Functional Beverages), By Ingredient (Carotenoids, Amino Acids, Dietary Fibers and Other Ingredients), Application, Distribution Channel and By Geography

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4.1 (94 reviews)
Published: 2023 ID: SMRC24069

This report covers the impact of COVID-19 on this global market
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Years Covered

2021-2030

Estimated Year Value (2023)

US $358.74 BN

Projected Year Value (2030)

US $768.62 BN

CAGR (2023-2030)

11.5%

Regions Covered

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Countries Covered

US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa

Largest Market

North America

Highest Growing Market

Asia Pacific


According to Stratistics MRC, the Global Functional Food and Beverages Market is accounted for $358.74 billion in 2023 and is expected to reach $768.62 billion by 2030 growing at a CAGR of 11.5% during the forecast period. Foods and drinks that have been enhanced with particular nutrients or ingredients to offer additional health benefits are referred to as functional foods and beverages. These products are often created to address particular health concerns, support specific bodily functions, or improve the quality of life. Functional foods and beverages can include a wide range of items, such as probiotic yogurt for gut health and fortified cereals with added vitamins and minerals.

According to the Food and Agriculture Organization (FAO), in 2050, the global demand for food, particularly nutrient-rich, will be twice as compared to 2013.



Market Dynamics:

Driver:

Increasing demand for nutrition-rich and healthy diets

The increasing demand for healthy and nutrition-rich diets is a significant driver in the functional food and beverages market. As consumers become more health-conscious, they seek products that not only provide basic sustenance but also offer specific health benefits. This demand is fueled by a growing awareness of the link between diet and overall well-being, including disease prevention and improved vitality. Moreover, functional foods and beverages, enriched with vitamins, minerals, antioxidants, and beneficial ingredients like probiotics or omega-3 fatty acids, cater to these consumer preferences, aligning with a broader trend towards proactive health management and preventive nutrition.

Restraint:

High Product costs

High product costs are expected to limit the functional food and beverages market. The development, formulation, and production of functional products often require specialized ingredients and processes, making them more expensive than standard foods and beverages. Consumers may be hesitant to invest in these higher-priced items, leading to potential market limitations. Additionally, the price barrier can hinder the market's accessibility for some demographic groups, impacting their ability to incorporate health-focused products into their diets.

Opportunity:

New product developments and innovation to support growth

With an ever-evolving understanding of health and nutrition, there is room for creating novel, science-backed products that address specific health concerns and cater to changing consumer preferences. The demand for innovative ingredients, formulations, and delivery methods, such as personalized nutrition and functional superfoods, continues to grow. Furthermore, companies that invest in research and development, along with creative marketing, can tap into this opportunity by offering unique and appealing functional products, meeting the increasing consumer appetite for better health through dietary choices, and thus driving market expansion.

Threat:

High regulation standards

Stringent regulatory requirements pose a significant threat to the functional food and beverages market. The complex and evolving nature of health claims, labeling, and safety standards can create hurdles for manufacturers seeking to launch new products. Compliance with these regulations is time-consuming and costly, potentially stifling innovation and product development. It may also lead to consumer skepticism regarding product claims and efficacy. In addition, navigating these requirements demands a substantial investment in research, testing, and legal expertise, which can deter smaller players and limit market access, ultimately hampering the industry's growth and competitiveness.

Covid-19 Impact:

The functional food and beverage market was greatly impacted by the COVID-19 pandemic. It increased consumer awareness of health and wellness, which fueled demand for goods boosting defense mechanisms, general health, and wellbeing. Products that function and contain antioxidants and vitamins to strengthen the immune system have grown in popularity. In addition, there was a brief decline in demand for foods and drinks with functional ingredients that promote physical fitness. In spite of these challenges, the sector showed resiliency by adapting to shifting consumer preferences and market dynamics.

The health and wellness segment is expected to be the largest during the forecast period

In the anticipated timeframe, it is anticipated that the health and wellness segment will hold the largest market share. This dominance is mainly driven by consumers' growing attention to their health, preventive medicine, and pursuit of a balanced diet. Functional foods and beverages that are enhanced with necessary nutrients, antioxidants, and healthy ingredients fit in perfectly with this trend. As a result of these factors, this segment is expanding, signaling a significant shift towards dietary choices that are focused on health.

The functional beverages segment is expected to have the highest CAGR during the forecast period

The functional beverages segment is poised to experience the highest growth rate in the functional food and beverages market during the forecast period. This surge is driven by shifting consumer preferences towards convenient and health-conscious drink options. Functional beverages offer a wide range of benefits, from hydration to specific health improvements such as enhanced energy, weight management, and mental well-being. Additionally, the market has seen innovations in product formulations, flavors, and packaging, making these beverages increasingly appealing. In addition, the convenience and portability of functional drinks align well with modern lifestyles, contributing to their projected prominence in the market's growth trajectory.

Region with largest share:

The North American region is expected to witness the largest market share owing to growing numbers of consumers concerned about their health choosing foods that are high in nutritive and functional ingredients. The region's food market is expanding as a result of consumers' growing emphasis on maintaining good physical, mental, and overall health through a balanced diet. Additionally, the presence of major food corporations in the area, including Tyson Foods, General Mills, and others, who are actively pursuing their potential in the functional food and beverage space, can further support regional market growth in the upcoming years.

Region with highest CAGR:

The functional food and beverages market in Asia Pacific is expanding rapidly due to the region's diverse cultures and populations, which have led to a wide variety of culinary traditions and dietary preferences. In recent years, there has been a notable shift towards Western-style diets, convenience foods, and increased consumption of processed and functional foods. Demand for healthy and natural products has surged, driving growth in segments like organic foods and plant-based alternatives. Moreover, the burgeoning middle-class population and urbanization are reshaping food retail and distribution, which is propelling market growth.



Key players in the market

Some of the key players in Functional Food and Beverages market Arla Foods, Celsius Holding, Inc., Danone S.A., Fonterra Co-operative Group Limited, General Mills Inc., Glanbia Plc, Hearthside Food Solutions LLC, Kraft Heinz Company, Nestle S.A, PepsiCo Inc., Red Bull GmbH, Suntory Holdings Ltd, The Bountiful Company, The Coca-Cola Company, The Hain Celestial Group, Tyson Foods Inc. and Universal Nutrition.

Key Developments:

In May 2023, Kirin Holdings has partnered with Kellogg Japan to introduce a new addition to Kellogg’s All-Bran portfolio, as it aims to support immune system health. According to Kirin, the new product can be enjoyed as a daily meal. In addition, the company highlights that this is the first ‘meal’-type product containing L. lactis strain Plasma as a functional food, as opposed to a snack or side dish.

In May 2023, Functional frozen food manufacturer Blender Bites Ltd. is launching a line of frozen coffee-based beverages. The brand’s 1-Step Frappés are designed to offer a nutritious and convenient beverage option for health-conscious consumers. Formulated from organic, dairy-free, gluten-free and functional ingredients, like collagen and lion’s mane, each serving of the blended iced coffee includes 90 mg of caffeine and a combination of 12 vitamins and minerals.

In February 2023, Biotechnology company Kyowa Hakko USA and sparkling beverage company Centr debuted Centr Enhanced, a sparkling water that features a blend of nootropic and adaptogenic ingredients. The launch of Centr Enhanced marks the first time Centr is stepping outside of the CBD-related category. Centr Enhanced sparkling water includes Kyowa Hakko’s Cognizin citicoline, which is a nutrient that supports “comprehensive brain health,” according to the company. The product claims to elevate mood, to reduce stress, and to improve focus, mental clarity, memory and energy.

Types Covered:
• Functional Foods
• Functional Beverages

Ingredients Covered:
• Carotenoids
• Amino Acids
• Dietary Fibers
• Electrolytes
• Fatty Acids
• Minerals
• Probiotics
• Other Ingredients

Applications Covered:
• Health & Wellness
• Cardio Health
• Clinical Nutrition
• Digestive Health
• Immunity
• Sports Nutrition
• Weight Management
• Other Applications

Distribution Channels Covered:
• Supermarkets and Hypermarkets
• Convenience Stores
• E-commerce
• Other Distribution Channels

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary

2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions

3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Application Analysis
3.7 Emerging Markets
3.8 Impact of Covid-19

4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry

5 Global Functional Food and Beverages Market, By Type
5.1 Introduction
5.2 Functional Foods
5.2.1 Bakery Products
5.2.2 Confectionery Products
5.2.3 Dairy Products
5.2.4 Infant Food Products
5.2.5 Snacks
5.2.6 Whole Grains
5.2.7 Other Functional Foods
5.3 Functional Beverages
5.3.1 Antioxidant Drinks
5.3.2 Dairy-based Beverages
5.3.3 Energy Drinks
5.3.4 Fortified Juices
5.3.5 Sports Drinks
5.3.6 Other Functional Beverages

6 Global Functional Food and Beverages Market, By Ingredient
6.1 Introduction
6.2 Carotenoids
6.3 Amino Acids
6.4 Dietary Fibers
6.5 Electrolytes
6.6 Fatty Acids
6.7 Minerals
6.8 Probiotics
6.9 Other Ingredients

7 Global Functional Food and Beverages Market, By Application
7.1 Introduction
7.2 Health & Wellness
7.3 Cardio Health
7.4 Clinical Nutrition
7.5 Digestive Health
7.6 Immunity
7.7 Sports Nutrition
7.8 Weight Management
7.9 Other Applications

8 Global Functional Food and Beverages Market, By Distribution Channel
8.1 Introduction
8.2 Supermarkets and Hypermarkets
8.3 Convenience Stores
8.4 E-commerce
8.5 Other Distribution Channels

9 Global Functional Food and Beverages Market, By Geography
9.1 Introduction
9.2 North America
9.2.1 US
9.2.2 Canada
9.2.3 Mexico
9.3 Europe
9.3.1 Germany
9.3.2 UK
9.3.3 Italy
9.3.4 France
9.3.5 Spain
9.3.6 Rest of Europe
9.4 Asia Pacific
9.4.1 Japan
9.4.2 China
9.4.3 India
9.4.4 Australia
9.4.5 New Zealand
9.4.6 South Korea
9.4.7 Rest of Asia Pacific
9.5 South America
9.5.1 Argentina
9.5.2 Brazil
9.5.3 Chile
9.5.4 Rest of South America
9.6 Middle East & Africa
9.6.1 Saudi Arabia
9.6.2 UAE
9.6.3 Qatar
9.6.4 South Africa
9.6.5 Rest of Middle East & Africa

10 Key Developments
10.1 Agreements, Partnerships, Collaborations and Joint Ventures
10.2 Acquisitions & Mergers
10.3 New Product Launch
10.4 Expansions
10.5 Other Key Strategies

11 Company Profiling
11.1 Arla Foods
11.2 Celsius Holding, Inc.
11.3 Danone S.A.
11.4 Fonterra Co-operative Group Limited
11.5 General Mills Inc.
11.6 Glanbia Plc
11.7 Hearthside Food Solutions LLC
11.8 Kraft Heinz Company
11.9 Nestle S.A
11.10 PepsiCo Inc.
11.11 Red Bull GmbH
11.12 Suntory Holdings Ltd
11.13 The Bountiful Company
11.14 The Coca-Cola Company
11.15 The Hain Celestial Group
11.16 Tyson Foods Inc.
11.17 Universal Nutrition

List of Tables
1 Global Functional Food and Beverages Market Outlook, By Region (2021-2030) ($MN)
2 Global Functional Food and Beverages Market Outlook, By Type (2021-2030) ($MN)
3 Global Functional Food and Beverages Market Outlook, By Functional Foods (2021-2030) ($MN)
4 Global Functional Food and Beverages Market Outlook, By Bakery Products (2021-2030) ($MN)
5 Global Functional Food and Beverages Market Outlook, By Confectionery Products (2021-2030) ($MN)
6 Global Functional Food and Beverages Market Outlook, By Dairy Products (2021-2030) ($MN)
7 Global Functional Food and Beverages Market Outlook, By Infant Food Products (2021-2030) ($MN)
8 Global Functional Food and Beverages Market Outlook, By Snacks (2021-2030) ($MN)
9 Global Functional Food and Beverages Market Outlook, By Whole Grains (2021-2030) ($MN)
10 Global Functional Food and Beverages Market Outlook, By Other Functional Foods (2021-2030) ($MN)
11 Global Functional Food and Beverages Market Outlook, By Functional Beverages (2021-2030) ($MN)
12 Global Functional Food and Beverages Market Outlook, By Antioxidant Drinks (2021-2030) ($MN)
13 Global Functional Food and Beverages Market Outlook, By Dairy-based Beverages (2021-2030) ($MN)
14 Global Functional Food and Beverages Market Outlook, By Energy Drinks (2021-2030) ($MN)
15 Global Functional Food and Beverages Market Outlook, By Fortified Juices (2021-2030) ($MN)
16 Global Functional Food and Beverages Market Outlook, By Sports Drinks (2021-2030) ($MN)
17 Global Functional Food and Beverages Market Outlook, By Other Functional Beverages (2021-2030) ($MN)
18 Global Functional Food and Beverages Market Outlook, By Ingredient (2021-2030) ($MN)
19 Global Functional Food and Beverages Market Outlook, By Carotenoids (2021-2030) ($MN)
20 Global Functional Food and Beverages Market Outlook, By Amino Acids (2021-2030) ($MN)
21 Global Functional Food and Beverages Market Outlook, By Dietary Fibers (2021-2030) ($MN)
22 Global Functional Food and Beverages Market Outlook, By Electrolytes (2021-2030) ($MN)
23 Global Functional Food and Beverages Market Outlook, By Fatty Acids (2021-2030) ($MN)
24 Global Functional Food and Beverages Market Outlook, By Minerals (2021-2030) ($MN)
25 Global Functional Food and Beverages Market Outlook, By Probiotics (2021-2030) ($MN)
26 Global Functional Food and Beverages Market Outlook, By Other Ingredients (2021-2030) ($MN)
27 Global Functional Food and Beverages Market Outlook, By Application (2021-2030) ($MN)
28 Global Functional Food and Beverages Market Outlook, By Health & Wellness (2021-2030) ($MN)
29 Global Functional Food and Beverages Market Outlook, By Cardio Health (2021-2030) ($MN)
30 Global Functional Food and Beverages Market Outlook, By Clinical Nutrition (2021-2030) ($MN)
31 Global Functional Food and Beverages Market Outlook, By Digestive Health (2021-2030) ($MN)
32 Global Functional Food and Beverages Market Outlook, By Immunity (2021-2030) ($MN)
33 Global Functional Food and Beverages Market Outlook, By Sports Nutrition (2021-2030) ($MN)
34 Global Functional Food and Beverages Market Outlook, By Weight Management (2021-2030) ($MN)
35 Global Functional Food and Beverages Market Outlook, By Other Applications (2021-2030) ($MN)
36 Global Functional Food and Beverages Market Outlook, By Distribution Channel (2021-2030) ($MN)
37 Global Functional Food and Beverages Market Outlook, By Supermarkets and Hypermarkets (2021-2030) ($MN)
38 Global Functional Food and Beverages Market Outlook, By Convenience Stores (2021-2030) ($MN)
39 Global Functional Food and Beverages Market Outlook, By E-commerce (2021-2030) ($MN)
40 Global Functional Food and Beverages Market Outlook, By Other Distribution Channels (2021-2030) ($MN)

Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

List of Figures

List of Figures
Figure 1 Global Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 2 North America Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 3 US Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 4 Canada Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 5 Mexico Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 6 Europe Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 7 Germany Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 8 UK Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 9 Italy Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 10 France Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 11 Spain Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 12 Rest of Europe Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 13 Asia Pacific Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 14 Japan Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 15 China Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 16 India Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 17 Australia Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 18 New Zealand Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 19 South Korea Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 20 Rest of Asia Pacific Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 21 South America Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 22 Argentina Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 23 Brazil Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 24 Chile Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 25 Rest of South America Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 26 Middle East & Africa Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 27 Saudi Arabia Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 28 UAE Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 29 Qatar Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 30 South Africa Functional Food and Beverages Market Outlook (2021-2030) ($MN)
Figure 31 Rest of Middle East & Africa Functional Food and Beverages Market Outlook (2021-2030) ($MN)

RESEARCH METHODOLOGY


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.


Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.


For more details about research methodology, kindly write to us at info@strategymrc.com

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