Food and Beverages

Functional Food and Beverages Market

Global Industry Analysis and Forecast 2023-2030

Pages : 120

Base Year : 2022

Released Year : February 2024

Format :Pdf Ppt Xls

Report ID:KR447

Author : Priyanka V.

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Base Year

2022

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Forecast Year

2023-2030

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Historical Years

2018-2021

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MarketValue (2022)

USD 261.23 Billion

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Forecasted Value (2030)

USD 551.47 Billion

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CAGR (2023 - 2030)

9.91%

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Fastest Growing Region (2023 - 2030)

Asia Pacific

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Largest Region

North America

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By Type

Functional Food & Beverages, Functional Beverages.

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By Application

Health & Wellness, Sports Nutrition, Weight Management, Immunity, Others.

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By Distribution Channel

Supermarkets & Hypermarkets, Convenience Stores, Specialty Stores, Others.


Market Perspective

The global Functional Food & Beverages Market was valued at USD 261.23 Billion in 2022 and is projected to reach USD 551.47 Billion by 2030, growing at a CAGR of 9.91% from 2023 to 2030.

The functional food and beverage industry is witnessing remarkable growth as consumers become more aware of the advantages of consuming these products in their diets. Functional foods and beverages are developed with the specific purpose of offering supplementary health benefits beyond fulfilling basic nutritional requirements. They are enriched with vitamins, minerals, antioxidants, and other bioactive substances that support overall health and enhance overall well-being. With the rising prevalence of lifestyle diseases such as obesity, diabetes, and cardiovascular disorders, there is a growing demand for functional food and beverages that can help prevent and manage these conditions. In addition to their potential preventive benefits, functional foods and beverages also offer convenience and versatility to consumers. These products come in various forms such as energy bars, protein shakes, and fortified beverages, making it easier for individuals to incorporate them into their daily routines. As a result, the functional food and beverage market for functional foods and beverages is expected to continue expanding as more people prioritize their health and seek out products that can support their well-being.

Analyst’s Review on Functional Food & Beverages Market

The global functional food and beverages market is experiencing substantial growth, driven by the increasing consumer demand for healthier and more nutritious food options. Consumers are becoming more conscious about their health and are actively seeking products that can provide additional health benefits. This trend has led to the rise of functional food and beverages, which are fortified with vitamins, minerals, and other bioactive ingredients that can improve overall well-being. These products not only cater to health-conscious individuals but also appeal to athletes and fitness enthusiasts who are looking for performance-enhancing food options. For example, protein bars and shakes have gained immense popularity among gym-goers as they offer a convenient and effective way to meet their daily protein requirements. Additionally, functional beverages infused with antioxidants and probiotics have become a go-to choice for those seeking improved digestion and immune system support. As a result, the functional food and beverages market is expected to grow rapidly in the coming years as more and more consumers prioritize their health and wellness.

Market Definition

Functional food & beverages are products that are often fortified with vitamins, minerals, or other beneficial ingredients and are designed to meet specific dietary needs or address certain health concerns. The functional food & beverages market includes a wide range of products such as fortified cereals, probiotic yogurt, energy bars, and herbal teas.

With increasing consumer awareness about the importance of a healthy lifestyle, the demand for functional food and beverages is expected to grow significantly in the coming years Additionally, consumers are becoming more conscious of the impact of their dietary choices on their overall well-being, leading to a shift towards functional food & beverages. For example, individuals with gluten intolerance can now find a wide variety of gluten-free products that cater to their specific dietary needs.

Market Dynamics

Growing consumer awareness about the importance of proper nutrition and its impact on health is driving the demand for functional food & beverages. Additionally, consumers are becoming more conscious of the role diet plays in maintaining good health and are actively seeking products that offer additional nutritional benefits. As a result, the functional food and beverage market for functional food & beverages has experienced significant growth in recent years. Furthermore, companies are responding to this demand by introducing a wide range of products that are fortified with vitamins, minerals, antioxidants, and other beneficial ingredients.

Moreover, consumers are increasingly looking for natural and organic options, further fueling the demand for functional food & beverages that are free from artificial additives and preservatives. This shift in consumer preferences has prompted food and beverage manufacturers to invest in research and development to create innovative products that cater to this growing demand. Thus, as more people become conscious of the link between diet and overall well-being, the functional food & beverage industry is projected to grow in the forecast period, with consumers driving the demand for products that support a healthy lifestyle.

However, the high costs associated with functional food and beverages have become a major hindrance to the growth of the global functional food and beverages market. These high costs can be attributed to several factors, including the use of premium ingredients, extensive research and development, and complex manufacturing processes. As a result, the final products are often priced higher than regular food and beverages, making them less accessible to a wider consumer base.

Segmentation Analysis

The global functional food & beverages market is segmented based on type, application, distribution channel, and geography.

Based on type, the functional food and beverage market is bifurcated into functional food and functional beverages. The functional food segment acquired the largest market share in 2022. This dominance is attributed to its numerous health benefits and increasing consumer awareness. These foods are specially formulated or modified to provide additional health benefits beyond basic nutrition. They are enriched with essential nutrients, vitamins, minerals, and bioactive compounds that promote overall well-being and prevent various diseases. Additionally, the rising prevalence of chronic diseases, such as obesity, diabetes, and cardiovascular disorders, has led consumers to adopt healthier eating habits, thereby boosting the consumption of functional food & beverages.

Based on application, the functional food and beverage market is segregated into health & wellness, sports nutrition, weight management, immunity, and others. The health & wellness segment dominated the market in 2022 due to growing awareness of the significance of maintaining a balanced diet and engaging in regular physical activity, individuals are actively pursuing products that can aid them in achieving their health objectives. Additionally, the rise of chronic diseases and lifestyle-related illnesses has fueled the demand for functional food & beverages that can provide targeted nutrition and address specific health concerns. As a result, companies are responding to this growing trend by developing innovative and nutritious products that cater to the demands of health-conscious consumers.

Based on distribution channel, the functional food and beverage market is bifurcated into supermarkets & hypermarkets, convenience stores, specialty stores, and online. Supermarkets and hypermarkets acquired largest market share in 2022, as supermarkets have become the go-to destinations for consumers looking for functional food and beverages. Additionally, these large retail stores offer a wide variety of products, allowing consumers to explore different options and make informed choices. Additionally, supermarkets and hypermarkets often have dedicated sections or shelves specifically for functional foods, making it easier for consumers to find what they are looking for which attracts the consumer base. Furthermore, these stores often collaborate with reputable brands and manufacturers, ensuring that the functional food and beverage products they offer are of high quality and meet industry standards. This combination of variety, convenience, trust, and affordability has led to the domination of functional food and beverages in these retail stores.

Geographical Analysis

Based on region, the global functional food & beverages market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

In 2022, North America accounted for the largest market share in 2022, due to a pronounced focus on health and wellness within the region, which is expected to stimulate substantial demand for functional products endowed with additional health benefits. The region's advanced food and beverage sector, characterized by continuous innovation and the introduction of novel functional products, plays a pivotal role in satisfying consumer preferences. Moreover, North America benefits from the presence of a considerable demographic of health conscious consumers looking to invest in functional food & beverages at premium pricing. Collectively, surging consumer interest, product innovation, and rising health consciousness position North America as a dominant force in the functional food & beverages market.

Asia Pacific is expected to be the fastest growing region in the market over the forecast period as there is a growing awareness and demand for healthier food options among consumers in the region. With increasing incomes and evolving lifestyles, individuals are growing more mindful of their well-being and actively pursuing functional food and beverages. Furthermore, the region has a large and diverse population, providing a substantial consumer base for these products. Furthermore, governments in many Asia-Pacific countries are promoting and supporting the development of the functional food & beverages industry through favorable policies and regulations, which is further fueling regional industry growth.

Competitive Landscape

The global functional food & beverages market study will provide valuable insights with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies, such as partnerships, mergers & acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments are the major strategic initiatives adopted by companies in this sector. Industry players are investing heavily in R&D activities, building new manufacturing facilities, and supply chain optimization. The major players in the market are:

  • The Coca-Cola Company
  • Danone S.A.
  • Glanbia plc
  • Hearthside Food Solutions LLC
  • Mars, Incorporated
  • Meiji Holdings Co., Ltd.
  • Nestlé S.A.
  • Raisio plc
  • Royal Friesland
  • The Kraft Heinz Company

Key Developments

  • August 2022 (Product Launch): Coca-Cola India recently launched Limca Sportz, an innovative beverage in the n-fizz category. This water-based drink is formulated with glucose and electrolytes, which makes it ideal for rehydrating individuals engaged in intense physical activities such as athletes and exercisers as it provides essential hydration to support their performance.
  • May 2022 (Product Launch): Koios launched six brand-new flavors of its Fit Soda functional beverage. These flavors include Cherry Slushee, Strawberry Snow Cone, Mimosa, Pumpkin Spice, Sweet Tea Lemonade, and Blueberry Lemonade. This launch doubled the number of Fit Soda flavors available in the product portfolio.

The global Functional Food & Beverages Market is segmented as:

By Type

  • Functional Food
  • Functional Beverages

By Application

  • Health & Wellness
  • Sports Nutrition
  • Weight Management
  • Immunity
  • Others

By Distribution Channel

  • Supermarkets & Hypermarkets
  • Convenience Stores
  • Specialty Stores
  • Online

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • France
    • UK
    • Spain
    • Germany
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America
CHOOSE LICENCE TYPE
CUSTOMIZATION OFFERED
  • Check Icon Additional Company Profiles
  • Check Icon Additional Countries
  • Check Icon Cross Segment Analysis
  • Check Icon Regional Market Dynamics
  • Check Icon Country-Level Trend Analysis
  • Check Icon Competitive Landscape Customization
  • Check Icon Extended Forecast Years
  • Check Icon Historical Data Up to 5 Years
Frequently Asked Questions (FAQ's)
The global functional food & beverages is projected to reach USD 551.47 billion by 2030, growing at a CAGR of 9.91% from 2023 to 2030.
The global functional food & beverages market was valued at USD 261.23 billion in 2022
The major driving factor for the market growth are increased awareness about healthy food & increased demand for fortified & functional food in the market.
Top manufacturers of functional food & beverages market are The Coca-Cola Company, Danone S.A., Glanbia plc, Hearthside Food Solutions LLC, Mars, Incorporated, Meiji Holdings Co., Ltd., Nestlé S.A., Raisio plc, Royal Friesland, and The Kraft Heinz Company, among others.
Asia-Pacific is the fastest growing region in the forecasted period (2023-2030).
By type, functional food segment will hold the maximum share in the functional food & beverages market in forecast period.
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