by The functional food market is booming internationally as consumers become increasingly conscious about maintaining health and preventing lifestyle-related diseases. Functional foods such as fortified foods and beverages are enriched with probiotics, prebiotics, vitamins, minerals, and other components that provide health benefits beyond basic nutrition. These foods reduce the risk of various chronic ailments including diabetes, obesity, heart disease, and cancer. The growing prevalence of non-communicable conditions coupled with the rising geriatric population has propelled the demand for functional food products with scientifically studied medical advantages.
The global functional food market is estimated to be valued at US$ 204.22 Billion in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
The functional food industry has observed notable innovations in recent years, a trend that is expected to continue in the coming decade. Food companies are researching new ingredients, formulations, and processing methods to fortify staple foods with added health benefits. The increasing use of probiotics as a key ingredient is also a major market trend. In addition, the demand for plant-based and clean label products has spiked with more customers looking to avoid artificial flavors, colors, and preservatives. Personalized nutrition tailored to an individual’s genetic makeup and lifestyle is another emerging concept that has gained traction. With growing health consciousness, such dynamic innovations will define future growth trajectories in the functional food space.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the functional food market is moderate as a high initial capital investment is required to establish brands and gain consumer trust.
Bargaining power of buyers: The bargaining power of buyers in the functional food market is moderate as the market is fragmented with many global as well as regional players. This provides options to buyers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials used in functional food such as vitamins, minerals, prebiotics are commoditized and available from many suppliers.
Threat of new substitutes: The threat of substitutes is moderate as other food categories or dietary supplements can provide similar functional benefits.
Competitive rivalry: The competition in the functional food market is high due to the presence of many global and regional brands.
Key Takeaways
The Global Functional Food Market Size is expected to witness high growth. The market in the Asia Pacific region is expected to grow the fastest during the forecast period owing to increasing health awareness and changing lifestyles in developing economies.
Regional analysis:
The Asia Pacific region held the largest share of the functional food market in 2023 and is expected to retain its dominance during the forecast period. Countries such as China, India, Japan, and South Korea are witnessing rising disposable incomes and increased health awareness which is driving the growth of functional foods in the region.
Key players:
Key players operating in the functional food market are F Hoffmann-La Roche AG, Merck KgaA, Apexigen Inc., Immunovia AB, Viatris Inc., Amgen Inc., AstraZeneca PLC, Bristol-Myers Squibb, Novartis AG, Pfizer Inc., Myriad Genetics Inc., Canon Medical Systems Corporation, FUJIFILM Holdings Corporation, Boston Scientific Corporation, and Rafael Holdings Inc. (Rafael Pharmaceuticals), among others.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
