Functional Foods Market Report 2026

The functional foods market size has grown strongly in recent years. It will grow from $310.68 billion in 2025 to $341 billion in 2026 at a compound annual growth rate (CAGR) of 9.8%. The growth in the historic period can be attributed to growth of fortified food consumption, expansion of dairy-based functional products, rising awareness of nutrition-related health issues, availability of functional ingredients, increased retail penetration of health foods.

The functional foods market size is expected to see strong growth in the next few years. It will grow to $498.43 billion in 2030 at a compound annual growth rate (CAGR) of 10%. The growth in the forecast period can be attributed to increasing demand for personalized and condition-specific nutrition, rising focus on aging population nutrition, expansion of sports and clinical nutrition segments, growing preference for natural functional foods, increasing innovation in functional food formulations. Major trends in the forecast period include increasing fortification of everyday foods, rising demand for immunity-boosting products, expansion of plant-based functional foods, growing adoption of functional dairy and bakery items, enhanced focus on preventive nutrition.

The rising demand for nutrient-rich foods is expected to drive the growth of the functional foods market going forward. Nutrient-rich foods provide a high concentration of essential nutrients relative to their calorie content. Functional foods go a step further by offering vital nutrients, including vitamins, minerals, healthy fats, and fiber, which help maintain good health and reduce the risk of chronic diseases. For example, in 2023, a study by The International Food Information Council (IFIC), a US-based non-profit focused on science-based food safety and nutrition information, found that the most common eating patterns were high-protein (18%), mindful eating (17%), calorie-counting (12%), clean eating (12%), and intermittent fasting (12%). Therefore, growing demand for nutrient-rich foods is supporting the expansion of the functional foods market.

Major companies in the functional foods market are emphasizing microbiome-supporting formulations, such as probiotic and prebiotic beverages, to strengthen their market position. For instance, in August 2025, GoodBelly, a US-based digestive health beverage company, launched reformulated Wellness Shots containing a clinically studied DE111 probiotic strain, 3 g prebiotic fiber, and essential vitamins - providing a compact, gut health-focused functional drink. In November 2024, Lifeway Foods, a US fermented dairy producer, introduced a Probiotic Smoothie + Collagen line using kefir cultures, delivering 12 live cultures, 25-30 billion CFU, and 5 g collagen per serving to support gut, skin, and joint health. This trend appeals to health-conscious and wellness-oriented consumers seeking functional nutrition, while requiring careful regulatory compliance and transparency regarding health claims.

In May 2024, Danone, a food company based in the US, acquired Functional Formularies for an undisclosed sum. This acquisition aligns with Danone's 'Renew Danone' strategy, which seeks to boost growth and competitiveness within its Medical Nutrition segment. Functional Formularies is a nutritional food company located in the US.

Major companies operating in the functional foods market are Nestlé Alimentana SA, BASF SE, PepsiCo Inc., Unilever plc, Abbott Laboratories, The Coca-Cola Company, GlaxoSmithKline Company, Mondelez International Inc., Danone SA, Kraft Foods Inc., General Mills Inc., Royal FrieslandCampina NV, Kellogg Company, Kirin Holdings Company Ltd., Dr PepperSnapple Group Inc., Red Bull GmbH, Ajinomoto Co. Inc., Meiji Holdings Company Ltd., Givaudan SA, Glanbia plc, Barilla Holding SpA, Arla Foods UK plc, Ocean Spray Cranberries Inc., Sanitarium Health and Wellbeing Company, Raisio Oyj, Lifeway Foods Inc., GFR Pharma Ltd., BNL Food Group Inc., Suiza Foods Corporation, Murray Goulburn Co-Operative Co. Limited.

Asia-Pacific was the largest region in the functional food market in 2025. Western Europe was the second-largest region in the global functional foods market. The regions covered in the functional foods market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the functional foods market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The functional food market consists of sales of fatty acids, carotenoids, prebiotics & probiotics, vitamins, dietary fibers, minerals, and other functional foods. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.