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

  • Fortified/Functional Beverages in Poland

    ... being linked to preventing and treating a range of non-communicable diseases such as Alzheimer’s and cancer. This has been encouraging consumers to focus more on ensuring they and their family are receiving a sufficient intake ... Read More

  • Industrial Starches Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

    ... in 2027, registering a CAGR of 5.40% during the forecast period (2022-2027). The COVID-19 pandemic placed unprecedented stresses on food supply chains, with bottlenecks in farm labor, processing, transport, and logistics, as well as momentous ... Read More

  • Fortified/Functional Beverages in Morocco

    ... lifestyles which promoted their demand. Naturally, this trend was somewhat interrupted by lockdown and the other measures implemented to contain the spread of the virus. Nevertheless, FF beverages was only modestly affected by the pandemic ... Read More

  • Health and Wellness in Morocco

    ... while growing and experiencing some rebound from the previous year continued to suffer to some extent from consumers prioritising food over drinks, with food products being seen as a richer source of nutrients, minerals and ... Read More

  • Fortified/Functional Beverages in Taiwan

    ... rise for a number of years, and this trend has recently gained momentum as the COVID-19 pandemic has made consumers more health-conscious. Innovation and increased investment in promotional activities to educate consumers about the potential ... Read More

  • Naturally Healthy Beverages in Taiwan

    ... in recent years. In contrast, this category posted negative results in volume and current value terms throughout the review period. This was mainly due to rising awareness that these products are high in sugar, which ... Read More

  • Fortified/Functional Beverages in Israel

    ... health benefits in order to boost immune strength. Fortified/functional water, for instance, continues to post pleasing growth despite its higher price as consumers are prepared to pay for value added products. Euromonitor International's Fortified/Functional Beverages ... Read More

  • Fortified/Functional Beverages in Sweden

    ... the greatest category in hot drinks, consumers demand exotic flavour combinations or a rich and high-quality taste, rather than fortification Therefore, sales of FF hot drinks beverages are essentially limited to FF tea, though Zoégas ... Read More

  • Fortified/Functional Packaged Food in Sweden

    ... this uncertain time), it is a category that faces numerous struggles, with many of the negative review trends persisting. On the upside, protein enriched products and products fortified with vitamins continue to drive sales of ... Read More

  • Better For You Beverages in Sweden

    ... they do take place from time to time. For example, Zoégas introduced a new functional coffee series in early 2021 which, as well as including Zoégas Skånerost decaffeinated (to align with the desire for reduced ... Read More

  • 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

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