|Study Period:||2016 - 2026|
|Fastest Growing Market:||Asia Pacific|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The Global Functional Food Market was valued at USD 176,518.97 million in 2020 and the market is projected to grow at a CAGR of 2.71% during the forecast period 2021-2026.
The market was positively impacted by COVID-19 in 2020. The global pandemic has shown an impact on the proper functioning of the functional food in various region. The COVID-19 has also vastly accelerated consumers interest in health diet, with a considerable up-tick in the number of people who expect the food they eat to deliver functional benefits, including immunity. The pandemic resulted in the generation of opportunities for many private players to emerge in the markets to cater to the inflated demand for functional food products, which in turn benefited the emerging manufacturers. In addition, consumers are now ready to experiment with new products, especially plant-based or vegan, which has prompted companies to look at interesting and affordable products.
Over the medium term, functional food offers specific health benefits that are beyond the regular daily intake of nutrients, such as, improved mental energy, immune system strengthening, improved bone health, cholesterol management, improved heart health, and other benefits associated with eye health and vision.
Utilizing ingredients, such as natural food/beverage colors, low-calorie natural sweeteners, and kosher ingredients, is in vogue. Manufacturers are embracing innovation to gain cost-leadership and fixed suppliers in the early development stage. One of the major advantages of functional food is that consumers are readily paying a premium for its various functional advantages.
Scope of the Report
Functional foods can be considered to be those whole, fortified, enriched or enhanced food that provide health benefits beyond the provision of essential nutrients (e.g., vitamins and minerals), when they are consumed at efficacious levels as part of a varied diet on a regular basis. The Functional Food Market is segmented by product type, distribution channel, and geography. On the basis of product type, the market is segmented into bakery products, breakfast cereals, snack/functional bar, dairy products, baby food, and other product types. By distribution channel, the market is segmented into supermarkets and hypermarkets, specialist retailers, convenience stores, online retail, and other distribution channels. Based on geography, the report offers a detailed analysis of the regions, which includes North America, South America, Europe, Asia-Pacific, and Middle East & Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).
|By Product Type|
|Other Product Types|
|By Distribution Channel|
|Other Distribution Channels|
Key Market Trends
Increasing Consumption of Nutrient-Enriched Food to Enhance Overall Health
The growing population and change in food fashion among people are the major drivers for the market. Individuals are more concerned about health and are willing to pay extra for food that is specifically beneficial to health. Therefore this tendency and awareness among people help the functional food market to grow. The increasing demand for nutrient-enriched foods, due to the hectic lifestyles of people and the rising awareness of the health benefits of these foods among them, is predicted to drive market growth. This has led the consumer interest in diet and health, which increased the demand for functional foods. Moreover, consumers are inclined toward foods containing functional ingredients to reduce the risk of certain health conditions, such as obesity, weight management, diabetes, and cardiovascular diseases. The hectic lifestyles and increasing stress have contributed to the increasing prevalence of such health disorders.
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Asia-Pacific Dominates the Market
Asia-Pacific is the major markets for functional food products. Increasing consumer interest, and a better understanding of the immunity-enhancing property of proper diet and food habits, are some of the key factors driving the growth of regions vitamin fortified and mineral enriched food & beverage products sale. Moreover, in countries such as Japan and China, manufacturers are becoming more creative with dairy packaging, ingredients, and flavors, hence, introducing fortified variants easily, which in turn boosting the functional food market. Yogurt, owing to its multifunctional attributes, holds great prominence among consumers. A large section of the Chinese population is lactose intolerant, and hence, the consumers find plant-based yogurt to be a relatively better option due to its fermented nature, which makes it easily digestible. For instance, in May 2021, the Chinese plant-based snacking company, Marvelous Foods, launched its flagship store for its signature product Yeyo Coconut yogurt on the e-commerce platform, Tmall. Yeyo is plant-based coconut yogurt, which has zero added sugar, artificial flavors, and sweeteners. The initial launch features three SKUs, and the range includes a ‘pure’ sugar-free flavor, plus two yogurt-granola cups that have seasonal fruit and nut granola topping for flavor and nutrition.
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Global functional food market is fragmented and competitive in nature having a large number of domestic and multinational players competing for market share. Companies focusing on new product launches with healthier ingredients/organic claims along with acquisition, merger, partnership, and expansions as their key marketing strategy. Some of the major players in the market studied are Danone SA, Nestle SA, PepsiCo Inc., The Kellogg's Company, and Abbott Laboratories. Key players are now focusing on social media platforms and online distribution channels for their products’ online marketing and branding to attract more customers. In order to attain a larger share in the market studied, manufacturers are revitalizing their product portfolios targeting health-conscious consumers.
In 2021, Kellogg Company launched a new cereal product and transformed a classic childhood treat into cereal with new Kellogg's Little Debbie Cosmic Brownie Cereal.
In 2020, Danone announced the launch of a new Oikos Pro line that includes single-serve dairy cups and drinks with up to 25g of protein. The product in the new line claim to be good source of calcium and contain no artificial flavors or colors.
In 2019, Nestlé launched it YES!’ range of snack bars in innovative recyclable paper packaging in what the company believes to be a breakthrough in its mission to make all packaging recyclable or reusable by 2025.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.1 Bakery Products
5.1.2 Breakfast Cereals
5.1.3 Snack/Functional Bars
18.104.22.168 Sports Bars
22.214.171.124 Energy Bars
126.96.36.199 Protein Bars
5.1.4 Dairy Products
188.8.131.52 Other Dairy Products
5.1.5 Baby Food
5.1.6 Other Product Types
5.2 By Distribution Channel
5.2.2 Specialist Retailers
5.2.3 Convenience Stores
5.2.4 Online Retail
5.2.5 Other Distribution Channels
5.3.1 North America
184.108.40.206 United States
220.127.116.11 Rest of North America
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
126.96.36.199 Rest of Asia-Pacific
5.3.4 South America
188.8.131.52 Rest of South America
5.3.5 Middle East & Africa
184.108.40.206 South Africa
220.127.116.11 United Arab Emirates
18.104.22.168 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 Lotus Bakeries
6.4.2 Nestle SA
6.4.3 Hearthside Food Solutions LLC
6.4.4 Valio Eesti AS
6.4.5 The Kellogg's Company
6.4.6 Abbott Laboratories
6.4.7 PepsiCo Inc.
6.4.8 Danone SA
6.4.9 Clif Bar & Company
6.4.10 General Mills
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Global Functional Food Market market is studied from 2016 - 2026.
What is the growth rate of Global Functional Food Market ?
The Global Functional Food Market is growing at a CAGR of 2.71% over the next 5 years.
Which region has highest growth rate in Global Functional Food Market ?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Global Functional Food Market ?
Asia-Pacific holds highest share in 2020.
Who are the key players in Global Functional Food Market ?
Nestle SA, Danone SA, Abbott Laboratories, PepsiCo Inc., The Kellogg's Company are the major companies operating in Global Functional Food Market .