Global Functional Food Market is projected to grow at a CAGR of 6.78% during the forecast period 2020-2025.

  • 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.?



Key Market Trends

Increasing Adoption of Healthy Eating Habits

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 market share in developed countries is captured by health-conscious people, such as pregnant women, guardians of infants and the older population, as they are mostly aware of the benefits associated with functional ingredient fortified food and beverages. However, in developing countries, there is an increase in health concern among people as well, due to enhanced disposable income, which drives the market to grow in the forecast period.

North America and Europe Dominates the Market

North America and Europe are 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. Asia-Pacific is the fastest-growing region, as countries like 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.

Competitive Landscape

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 Abbott, KELLOGG NA Co, Nestle, and Hearthside Food Solutions LLC, among others.

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