Functional Foods & Beverages Market Research Reports & Industry Analysis

Functional food and beverages are first and foremost healthy foods, but it’s differentiated from your average fare by claims of specific health-promoting or disease-preventing properties.

A functional food has to do more than the basic function of supplying nutrients. The basic category of functional foods includes processed food or foods fortified with additives, like "vitamin-enriched" products. Fermented foods with live cultures are considered functional foods with probiotic benefits.

Health-conscious consumers have supplied the demand to make functional foods an emerging field in food science. Yet, as consumers seek healthy choices, they are often skeptical about the benefits claimed by the companies developing new functional foods and beverages. The fact is the benefits are simply difficult to detect.

The industry suggests the establishment of a health claim regulating agency, which may increase consumer confidence. However, strict examination of some of the functional food claims may discourage some companies from launching their products.

The burgeoning industry was also impacted by poor global economic outlook. Many companies were forced to reposition themselves in response to the global economic downturn by lowering prices, eliminating divisions and rebranding products. Others grew by targeting products that consumers believe make an impact on their health. Product functionality is the most important consumer decision factor, generally outweighing cost sensitivity.

Consumer surveys on a wide range of functional food areas -- such as heart, digestive, immunity, cognitive, joint and bone health -- find that shoppers have high levels of interest, but much lower levels of actual purchase behavior.

Cognitive-health products are one example, as more than two-thirds of Americans say they are interested in products that increase concentration, but less than one in five actually buy such products. Narrowing this gap is crucial for the industry to turn functional foods and drinks from a novelty into a steady growing business in the long term.

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Functional Foods & Beverages Industry Research & Market Reports

  • Organic Beverages in Ukraine

    ... weakened purchasing power due to the adverse economic impact of the COVID-19 pandemic have further exacerbated the already unfortunate situation with regards to organic beverages in the country. Most of the organic products available in ... Read More

  • Better For You Beverages in Ukraine

    ... aware of the potentially serious long-term health impacts of excessive consumption of saturated fat and this has combined with the general interest in minimising fat intake as part of a healthy diet to create ideal ... Read More

  • Fortified/Functional Packaged Food in Israel

    ... also offers health benefits such as immunity boosting, particularly in the wake of COVID-19. Consumers are showing particular interest in products enriched with vitamins C and D as a result of the pandemic since these ... Read More

  • Fortified/Functional Packaged Food in Ukraine

    ... situation has sharpened the focus of many Ukrainian consumers on the role that a healthy diet and good nutrition play in supporting general health and boosting immune system function. This has supported rising demand for ... Read More

  • Naturally Healthy Beverages in Sweden

    ... drinks and NH soft drinks. Despite NH hot drinks being the smallest category within NH beverages, it has been continually characterised by strong player competition as every tea brand is attempting to stand out with ... Read More

  • Fortified/Functional Beverages in Ukraine

    ... variety of beneficial trace nutritional elements have proven popular among a consumer base that is increasingly interested in products that are able to help them avoid contracting a serious case of COVID-19. This applies especially ... Read More

  • Naturally Healthy Beverages in Ukraine

    ... pandemic during 2020. Among the major factors presenting challenges to the category are the high prices charged for these products in comparison with other types of soft drinks, which means that demand is largely confined ... Read More

  • Health and Wellness in New Zealand

    ... the virus. Since the first cases were reported in February 2020, a four-level alert level system was introduced on 21 March 2020 to manage the outbreak. Since then, after a nationwide lockdown from March to ... Read More

  • Organic Beverages in Slovakia

    ... consumers became more price sensitive, as the pandemic lingered. All the same, this was seen as a lull, after the particularly strong performance in 2020, when consumers prioritised quality as a result of health concerns. ... Read More

  • Better For You Beverages in Slovakia

    ... reduced sugar accounts for most value sales and it suffered a decline, as consumers shift to naturally sweetened beverages such as juice. In particular, consumers are looking to avoid artificial sweeteners. Reduced sugar drinks are ... Read More

  • Health and Wellness in Slovakia

    ... in Slovakia report tracks the developments of health-associated product types and the healthy-option positioning of competing brands across different food sectors. It provides the latest retail sales data 2017-2021, allowing you to compare health and ... Read More

  • Fortified/Functional Packaged Food in Slovakia

    ... addition, price rises also dampened volume sales. Also, with consumers spending more on vitamins supplements in order to boost their immune systems during the pandemic, this also dampened volume sales of fortified/functional. However, in the ... Read More

  • Naturally Healthy Beverages in Slovakia

    ... to protect against COVID-19 infection, and as a result, cut down on naturally healthy beverages. In addition, standard beverages are positioning themselves as naturally healthy. These beverages are simply free from preservatives and colourings and ... Read More

  • Fortified/Functional Beverages in Slovakia

    ... boosting properties continued to be popular in 2021, as consumer looked to protect themselves from COVID-19 infection. An example of such a beverage is Maxx BCAA, which is fortified with amino acids to provide extra ... Read More

  • Fortified/Functional Beverages in Russia

    ... in this, with the unit price of FF energy drinks declining by more than a quarter (in constant 2021 prices) during the forecast period. The product offer in FF energy drinks continues to widen, while ... Read More

  • Fortified/Functional Packaged Food in Russia

    ... category in FF packaged food, ahead of FF baby food. Within FF dairy, FF yoghurt (especially FF prebiotic yoghurt) dominates. In spite of the economic shock of the pandemic, retail current value sales of FF ... Read More

  • Health and Wellness in Romania

    ... of health and wellness and an aim for protection against COVID-19 the good performance of HW packaged food types with specific claims. The COVID-19 pandemic has not had a negative impact on HW hot drinks, ... Read More

  • Fortified/Functional Beverages in Thailand

    ... towards prevention over cure in terms of health, which fits well with the health and wellness trend, not least functional and high in vitamins products. This trend has been intensified by the effects of the ... Read More

  • Better For You Beverages in Indonesia

    ... 2020. The main influence on this situation was the government's implementation of policies intended to relax the social distancing regulations that applied during 2020 in an effort to curb the spread of the COVID-19 virus ... Read More

  • Fortified/Functional Beverages in Indonesia

    ... the strong recovery of category sales during the year was the promotional activity being undertaken by leading players. Various promotional campaigns were applied to popular brands during the year and these proved particularly effective in ... Read More

  • Fortified/Functional Packaged Food in Italy

    ... allies for the health of the intestinal microbiota - where 70% of the immune system is located. Immune-boosting foods are nothing new, but a growing number of people started paying greater attention to their eating ... Read More

  • Naturally Healthy Beverages in Malaysia

    ... during the pandemic. More consumers have become conscious of their food and drink intake and are opting for healthier products with a natural positioning. Although growth slowed in 2021 this was largely due to economic ... Read More

  • Fortified/Functional Beverages in Malaysia

    ... category of FF sports drinks. These products are used to rehydrate and replace lost electrolytes during and after exercise. With COVID-19 limiting access to gyms and sports clubs this resulted in a significant drop off ... Read More

  • Better For You Beverages in Portugal

    ... leading to many consumers searching for perceived healthier and more natural products, including beverages. In 2021, this is continuing to have a positive impact on demand for better for you beverages, as local consumers increasingly ... Read More

  • Fortified/Functional Beverages in Portugal

    ... as vitamins, for instance. This trend continues to benefit fortified/functional beverages in 2021. While regular juice drinks (up to 24% juice) is registering flat growth, references claiming high content of vitamins within the fortified/functional space ... Read More

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