Functional Food Market by Product (Bakery & Cereals, Dairy Products, Fats & Oils), Ingredient (Carotenoids, Dietary Fibers, Fatty Acids), Type, Distribution Channel, Application - Global Forecast 2024-2030

Functional Food Market by Product (Bakery & Cereals, Dairy Products, Fats & Oils), Ingredient (Carotenoids, Dietary Fibers, Fatty Acids), Type, Distribution Channel, Application - Global Forecast 2024-2030

The Functional Food Market size was estimated at USD 113.55 billion in 2023 and expected to reach USD 119.62 billion in 2024, at a CAGR 5.79% to reach USD 168.44 billion by 2030.

Functional food refers to foods enhanced or designed to provide specific health benefits beyond normal nutrition. These foods contain bioactive compounds, vitamins, minerals, fibers, or probiotics that contribute to improved health, reduce the risk of chronic diseases, or support the body's normal functioning. Functional food can be naturally occurring, fortified, enriched, or enhanced and includes various products such as cereals, bread, dairy products, snacks, beverages, and supplements. The central premise of functional food lies in its ability to provide additional health advantages that aid in wellness and disease prevention, making it a significant focus within the field of nutritional science and dietetics. The growing health awareness and consumption of healthy food products and the increasing prevalence of chronic diseases propel the growth of the functional food market. However, the high cost of functional food ingredients hinders the adoption of functional food. Introducing fortified and enriched functional foods offers remunerative opportunities for the expanding functional food market.

Regional Insights



The functional food market in the Americas is characterized by significant growth, attributed largely to increasing consumer health consciousness and the rising demand for nutritional and fortifying food additives. The functional food market growth in the United States is driven by a growing preference for healthy, nutrient-rich diets and the prevalence of lifestyle-related diseases such as obesity and diabetes. Asia-Pacific is a rapidly growing market for functional foods, propelled by changing lifestyles, increasing disposable incomes, and broader health and wellness awareness. China has seen an increase in consumer demand, particularly amidst the younger population. With a vast population and rising health consciousness, India presents a huge potential for domestic and international investors. The Asian-Pacific region's functional food market benefits from a wide consumer base eager to spend on health-enhancing foods, including probiotics, fortified snacks, and functional beverages. Traditional herbs and natural ingredients play a pivotal role in the product development strategies across this region. The EMEA region exhibits a steady growth in the functional food market, driven by a strong demand for health-oriented products among European consumers. The market diversity across EMEA is significant, with Europe showcasing regulatory advancements and product innovation. The Middle East and African regions are emerging markets gradually inclining towards health and wellness trends. Functional dairy products, cereals, and nutraceuticals are particularly popular in Europe, while the Middle East and Africa are witnessing growing interest in dietary supplements and functional beverages. The EU regulatory framework shapes the market, ensuring product safety and efficacy.

Market Insights



Market Dynamics



The market dynamics represent an ever-changing landscape of the Functional Food Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers


Growing health awareness and consumption of healthy food products
Rising prevalence of chronic diseases and health disorders
Rising commercialization of sports nutrients through e-Commerce platform

Market Restraints


High cost of functional food ingredients

Market Opportunities


Burgeoning demand for clean-label products, free from artificial additives and preservatives
Technological advancements in the plant and organic ingredients- based food processing

Market Challenges


Undesirable flavor and texture issues

Market Segmentation Analysis


Product: Rising demand for dairy products owing to their nutritional content
Application: Widening consumption of functional food in cardio health owing to their heart-healthy components

Market Disruption Analysis


Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix



The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Functional Food Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis



The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Functional Food Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments




Quaker Introduces New Chewy Granola with Whole Grains: A Nourishing Start to Your Day

The Quaker Oats Company, an esteemed PepsiCo subsidiary, introduced an innovative addition to the breakfast scene with its pioneering Quaker Chewy Granola. This delightful new offering comes in two tantalizing flavors, chocolate and strawberry, meticulously crafted with 100% whole grains, boasting 34 grams per serving, including granola clusters and rice crisps. Each serving is packed with 5 grams of protein, ensuring a nourishing start to the day without including colors from artificial sources, artificial preservatives, or flavors.


Mother Dairy Expands Offerings with 100 New Products, Launches Summer Range

Mother Dairy Fruit & Vegetable Pvt Ltd enhanced its position in the dairy sector by introducing nearly 100 new products over the next three years, marking a strategic move to bolster its value-added dairy offerings. This initiative was kicked off with the launch of 15 new products specifically for the 2023 summer season, including a ready-to-consume Custard, two variants of Cold Coffee, and more than 10 Ice Cream flavors, alongside an improved Nutrifit Curd enriched with Vitamins A & D. These products, aimed at refreshing and expanding Mother Dairy's product portfolio, be made available across major markets through a mix of traditional and new-age distribution channels, accompanied by comprehensive marketing campaigns.


Kirin Holdings and Kellogg Japan Launch All-Bran Immune Care

In a strategic collaboration, Kirin Holdings and Kellogg Japan unveiled an innovative addition to the All-Bran series, dubbed All-Bran Immune Care, designed to fortify immune system health. This cutting-edge functional food combines the power of L. lactis strain Plasma, a postbiotic, with the fermentable dietary fiber arabinoxylan, sourced from wheat bran, in a unique formulation that holds a double health claim.

Strategy Analysis & Recommendation



The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Functional Food Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles



The report delves into recent significant developments in the Functional Food Market, highlighting leading vendors and their innovative profiles. These include Amway Corp., Archer Daniels Midland Company, Arla Foods Group, Bahlsen GmbH & Co. KG, BASF SE, Britannia Industries Limited, Cargill, Incorporated, Clif Bar & Company, Cocos Organic, Danone S.A., Dr. August Oetker KG, General Mills, Inc., GFR Pharma, Glanbia PLC, Hearthside Food Solutions LLC, Laird Superfoods, Lotus Bakeries, Mars, Incorporated, Meiji Holdings Co., Ltd., Mondelez International, Inc., Nestlé S.A., Nutri-Nation, PepsiCo Inc., Raisio PLC, Rich Products Corporation, Royal frieslandcampina N.V, Standard Functional Foods Group Inc., The Coca-Cola Company, The Kellogg's Company, and The Kraft Heinz Company.

Market Segmentation & Coverage



This research report categorizes the Functional Food Market to forecast the revenues and analyze trends in each of the following sub-markets:

Product
Bakery & Cereals
Dairy Products
Fats & Oils
Meat, Fish & Eggs
Soy Products
Ingredient
Carotenoids
Dietary Fibers
Fatty Acids
Minerals
Prebiotics & Probiotics
Vitamins
Type
Conventional Foods
Medical Foods
Modified Foods
Special Dietary Foods
Distribution Channel
Health & Wellness Stores
Online Retailers
Pharmacies
Supermarkets & Hypermarkets
Application
Cardio Health
Clinical Nutrition
Digestive Health
Immunity
Sports Nutrition
Weight Management
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year