The scope of the recent study, titled 'Functional Foods Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Product Type (Bakery and Confectionery, Dairy and Frozen Desserts, Sweet and Savory Snacks, Breakfast Cereals, and Others), Category (Organic and Conventional), and Distribution Channel (Supermarkets and Hypermarkets, Convenience Stores, Online Retail, and Others),' includes the description of factors fueling the market growth, estimation and forecast of revenue, and identification of significant market players and their key developments, along with market share analysis.
The functional foods market was valued at US$ 233,620.18 million in 2021 and is projected to reach US$ 418,439.42 million by 2028. It is expected to grow at a CAGR of 8.7% from 2021 to 2028.
Functional foods are foods that provide health benefits in addition to nutritional value. The category includes foods fortified with vitamins, minerals, probiotics, and fiber, as well as nutrient-rich ingredients, including fruits and vegetables. The surging demand for nutrient-enriched food drives the functional foods market.
Based on distribution channel, the functional foods market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others. The supermarkets and hypermarkets segment held a significant share in the global functional foods market in 2020. However, the online retail segment is projected to grow at the fastest CAGR over the forecast period, owing to its convenience in terms of shopping and product delivery. Furthermore, consumers can buy desirable products remotely. During the COVID-19 pandemic, online retail channels gained popularity as they offered home delivery services. These factors are expected to boost the segment's growth during the forecast period.
Based on geography, the functional foods market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM). Asia Pacific functional foods market is expected to register the fastest growth over the forecast period. The rapidly changing lifestyle of consumers and the change in eating habits have been driving the healthy snacks market in Asia-Pacific. The region is witnessing a rise in the number of single-person and dual-income-no-kids (DINK) households. Long working hours drive the consumer preference toward healthy snacking options over meals, which is fueling the demand for convenient food and on-the-go food products. According to Mr. Sagar Kurade, president of All India Food Processors' Association, fortified or functional packaged food is benefiting strongly from rising disposable income levels in India. These products are also benefiting from a strong health and wellness trend, with many people increasingly focused on obtaining optimum nutrition. Consequently, consumers are increasingly willing to pay more for fortified or functional packaged food, which is an important factor driving the functional food market across the region.
The functional foods market witnessed mixed impacts of the COVID-19 pandemic. As people became health-conscious due to the pandemic, they preferred functional foods that help boost immunity and maintain overall health. This factor positively impacted the functional foods market growth. However, due to severe disruption of supply chains, there was a shortage of raw materials, which negatively impacted the profitability of small-scale and large-scale functional foods manufacturers. A shortfall in product supply created a demand and supply gap, which affected the growth of the functional foods market. However, the functional foods market is moving toward stability as the restrictions imposed by the governments of different nations are relaxed. Manufacturers are recovering from the losses as they are operating at full capacity. All these factors are projected to boost the functional foods market growth over the forecast period significantly. Thus, the COVID-19 pandemic significantly impacted the functional foods market in the short term; however, later, it opened lucrative growth opportunities for the market.
Based on product type, the functional foods market is segmented into bakery and confectionery, dairy and frozen desserts, sweet and savory snacks, breakfast cereals, and others. Based on category, the functional foods market is segmented into organic and conventional. In terms of distribution channel, the functional foods market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others. Based on geography, the functional foods market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM).
Reasons to Buy
The functional foods market was valued at US$ 233,620.18 million in 2021 and is projected to reach US$ 418,439.42 million by 2028. It is expected to grow at a CAGR of 8.7% from 2021 to 2028.
Functional foods are foods that provide health benefits in addition to nutritional value. The category includes foods fortified with vitamins, minerals, probiotics, and fiber, as well as nutrient-rich ingredients, including fruits and vegetables. The surging demand for nutrient-enriched food drives the functional foods market.
Based on distribution channel, the functional foods market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others. The supermarkets and hypermarkets segment held a significant share in the global functional foods market in 2020. However, the online retail segment is projected to grow at the fastest CAGR over the forecast period, owing to its convenience in terms of shopping and product delivery. Furthermore, consumers can buy desirable products remotely. During the COVID-19 pandemic, online retail channels gained popularity as they offered home delivery services. These factors are expected to boost the segment's growth during the forecast period.
Based on geography, the functional foods market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM). Asia Pacific functional foods market is expected to register the fastest growth over the forecast period. The rapidly changing lifestyle of consumers and the change in eating habits have been driving the healthy snacks market in Asia-Pacific. The region is witnessing a rise in the number of single-person and dual-income-no-kids (DINK) households. Long working hours drive the consumer preference toward healthy snacking options over meals, which is fueling the demand for convenient food and on-the-go food products. According to Mr. Sagar Kurade, president of All India Food Processors' Association, fortified or functional packaged food is benefiting strongly from rising disposable income levels in India. These products are also benefiting from a strong health and wellness trend, with many people increasingly focused on obtaining optimum nutrition. Consequently, consumers are increasingly willing to pay more for fortified or functional packaged food, which is an important factor driving the functional food market across the region.
Impact of COVID-19 Pandemic on Functional Foods Market
The functional foods market witnessed mixed impacts of the COVID-19 pandemic. As people became health-conscious due to the pandemic, they preferred functional foods that help boost immunity and maintain overall health. This factor positively impacted the functional foods market growth. However, due to severe disruption of supply chains, there was a shortage of raw materials, which negatively impacted the profitability of small-scale and large-scale functional foods manufacturers. A shortfall in product supply created a demand and supply gap, which affected the growth of the functional foods market. However, the functional foods market is moving toward stability as the restrictions imposed by the governments of different nations are relaxed. Manufacturers are recovering from the losses as they are operating at full capacity. All these factors are projected to boost the functional foods market growth over the forecast period significantly. Thus, the COVID-19 pandemic significantly impacted the functional foods market in the short term; however, later, it opened lucrative growth opportunities for the market.
Functional Foods Market Breakdown - by Region
The report segments the functional foods market as follows:
Based on product type, the functional foods market is segmented into bakery and confectionery, dairy and frozen desserts, sweet and savory snacks, breakfast cereals, and others. Based on category, the functional foods market is segmented into organic and conventional. In terms of distribution channel, the functional foods market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others. Based on geography, the functional foods market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM).
Reasons to Buy
- Save and reduce time carrying out entry-level research by identifying the growth, size, leading players, and segments in the global functional foods market
- Highlights key business priorities in order to assist companies to realign their business strategies
- The key findings and recommendations highlight crucial progressive industry trends in the global functional foods market, thereby allowing players across the value chain to develop effective long-term strategies
- Develop/modify business expansion plans by using substantial growth offering developed and emerging markets
- Scrutinize in-depth global market trends and outlook coupled with the factors driving the functional foods market as well as those hindering it
- Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing, and distribution
Table of Contents
1. Introduction
3. Research Methodology
4. Global Functional Foods Market Landscape
5. Global Functional Foods Market - Key Market Dynamics
6. Functional Foods Market- Analysis
7. Functional Foods Market Analysis - by Product Type
8. Functional Foods Market Analysis - by Category
9. Functional Foods Market Analysis - by Distribution Channel
10. Functional Foods Market - Geographic Analysis
11. Impact of COVID-19
12. Industry Landscape
13. Company Profiles
14. Appendix
List of Tables
List of Figures
Executive Summary
The functional foods market was valued at US$ 233,620.18 million in 2021 and is projected to reach US$ 418,439.42 million by 2028. It is expected to grow at a CAGR of 8.7% from 2021 to 2028.Functional food is a modified food that claims to benefit health. It does not cure disease, but it does help minimize the risk of fatal diseases by enhancing the body's health by giving essential minerals and proteins. Functional foods in the diet improve the physiological state of the individuals. Functional foods are enriched with functional nutrients and the product's basic nutritional content to give various health-related benefits. Amino acids, vitamins, minerals, proteins, fatty acids, and prebiotics are examples of nutrition. Because of growing consumer awareness, functional products have grown in popularity. In this day and age, when a pandemic like COVID-19 has swept the world, and everyone is concerned about increasing their immunity, functional foods are becoming quite popular, which is boosting the functional foods market growth.
Based on product type, the functional foods market is segmented into bakery and confectionery, dairy and frozen desserts, sweet and savory snacks, breakfast cereals, and others. The dairy and frozen desserts segment accounted for the largest market share in 2020. Dairy products include food made from milk such as butter, cheese, ice cream, yogurt, and condensed and dried milk. Consumers are increasingly consuming dairy products as it is important for building healthy bones and maintaining a healthy weight. Yogurt is being increasingly used as a functional food due to its high nutritional value and enormous health benefits. Different fruits such as peaches, cherries, apricots, papaya, , and blueberries are being used to make yogurt to provide different flavors and make it healthier and more nutritious.
Based on region, the functional foods market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM). In 2020, Asia Pacific held the largest share of the global functional foods market, and it is projected to register the fastest growth over the forecast period. The changing lifestyle preference in Asia Pacific is having a significant impact on the functional foods market growth in Asia Pacific. People are increasingly consuming products that provide functional benefits. With the rise in health awareness among consumers, the demand for functional foods products continues to grow.
Moreover, according to the Asia Pacific Observatory on Health Systems and Policies, most countries in Asia Pacific will experience rapidly aging societies over the next few decades. The high proportion of deaths across Asia Pacific is caused by chronic noncommunicable diseases (NCDs), particularly in Southeast Asia and Western Pacific. Major NCDs include cardiovascular diseases, diabetes, cancers, and chronic respiratory diseases. The increased prevalence of chronic diseases has led to a rise in focus on personal health and wellbeing. Consumers are increasingly demanding food products that will provide certain health and nutritional benefits. This will support the change in consumers' lifestyles. The Functional Food Center of the United States (FFC) stated that functional foods have scientifically proven benefits for improving general health and minimizing the impacts of chronic diseases. These foods also contain vital nutrients that can help prevent chronic diseases. Thus, the increasing prevalence of chronic diseases is driving the demand for functional foods growth across the region.
The leading players in the functional foods market include Unilever; Clif Bar & Company; laird superfood; Abbott; Danone S.A.; General Mills, Inc.; Hildur; Nestlé; Kellogg company; and Good Source Foods, LLC.
The overall size of the global functional foods market has been derived using primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights into the topic. Participants in this process include industry experts such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the functional foods market.
Companies Mentioned
- Abbott Laboratories
- Clif Bar and Company
- Danone S.A.
- General Mills, Inc
- Good Source Foods, LLC
- Hildur Functional Foods Pvt. Ltd
- Kellogg Company
- Laird Superfood
- Nestlé S.A.
- Unilever plc
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 150 |
| Published | March 2022 |
| Forecast Period | 2021 - 2028 |
| Estimated Market Value ( USD | $ 233620.18 Million |
| Forecasted Market Value ( USD | $ 418439.42 Million |
| Compound Annual Growth Rate | 8.7% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
