by The global Functional Food Market is estimated to be valued at Us$ 204.22 Bn or billion in 2023 and is expected to exhibit a CAGR Of 6.9% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Functional foods are similar to conventional foods but provide additional health benefits beyond basic nutrition. They help reduce the risk of disease and promote good health. Some examples include fortified foods, probiotic foods, prebiotic foods, dietary supplements, and more. The growing prevalence of lifestyle diseases and increasing health awareness among people has raised the demand for functional foods. Their consumption supports weight management, digestive health, heart health, bone health, and other health aspects.
Market key trends:
The rising focus on preventive healthcare is a major trend in the functional food market. People are increasingly adopting healthy diets and lifestyle changes to prevent the onset of diseases. Functional foods play a vital role here as their consumption offers additional health perks. Another important trend is the growing vegan and vegetarian population worldwide. This has positively impacted the demand for plant-based functional food products catering to this demographic. Manufacturers are extensively developing innovative vegan-friendly options made from milk alternatives, soy, cereals, and more to capitalize on this change.
Porter’s Analysis
Threat of new entrants: The high investments required for R&D, production and branding along with regulations act as a barrier for new players.
Bargaining power of buyers: Buyers have high bargaining power due to the availability of various substitute options. Changing consumers tastes and preferences influence the demand.
Bargaining power of suppliers: The presence of various ingredient suppliers globally limits their bargaining power.
Threat of new substitutes: Substitute options like mainstream foods, dietary supplements, fortified foods, etc. pose threats.
Competitive rivalry: Intense competition exists among the existing players to launch new products and adopt innovative strategies.
Key Takeaways
The Global Functional Food Market Size is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period, due to increasing consumer health awareness. The market size for 2023 is US$ 204.22 Bn.
Regional analysis:
North America dominates the global market owing to rising health consciousness. Asia Pacific is expected to grow at the fastest pace during the forecast period due to growing middle-class population and their increased spending on healthy foods.
Key players operating in the functional food market are Danone, Glanbia Plc, Hearthside Food Solutions Llc, Mars, Incorporated, Meiji Co., Ltd., Nestle S.A., Raisio Plc, Royal Frieslandcampina N.V., Sanitarium Health Food Company, and The Kraft Heinz Company. Key players are focusing on new product launches, mergers, and acquisitions to strengthen their market presence.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
