The global functional food and beverages market size is projected to reach USD 793.60 billion in 2032, exhibiting a CAGR of 10.23% during the forecast period. Fortune Business Insights™ highlights that the rising global malnutrition rates will be a major driver for the growth of the functional food and beverages market in the near future. This insight is detailed in their new report titled “Functional Food and Beverages Market Size, Share & Industry Analysis, By Type (Cereals & Grains, Fats & Oils, Dairy Products, Bakery Products, and Other Functional/Fortified Foods), Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Retail, and Others), and Regional Forecasts, 2024 – 2032.”
According to the World Health Organization (WHO), approximately 462 million people are underweight, and around 52 million children under the age of 5 suffer from wasting. Additionally, nearly 45% of deaths among children under 5 are attributed to under-nutrition. In response, governments worldwide are taking action to address these issues. For instance, in 2019, the UK government mandated the fortification of flour with folic acid to prevent congenital disabilities in children. Similarly, in July 2019, the Indian government began distributing rice fortified with folic acid, Vitamin B12, and iron through the Public Distribution System (PDS). These initiatives are expected to drive growth in the market for functional foods and beverages.
The functional food and beverages market report states that the value of this market stood at USD 333.34 billion in 2023.
Information Source: https://www.fortunebusinessinsights.com/functional-foods-market-102269
Other than this, the report contains the following:
- Detailed segmentation of the market and piece-meal study of the each segment;
- Exhaustive research into the various market drivers and restraints;
- Comprehensive analysis of the regional developments and competitive milieu of the market; and
- Panoramic understanding of the industry outlook and trends shaping the market.
Market Driver
High Nutritional Value of Functional Foods to Spike Uptake
The popularity of fortified foods and beverages has been rising steadily, driven by the fast-paced and often unhealthy lifestyles prevalent in urban areas. This trend reflects a growing demand for nutrition-rich products fueled by heightened health and wellness concerns. Functional foods, which offer a range of long-term benefits, have become increasingly appealing to consumers. For instance, functional foods and beverages enriched with omega-3 fatty acids can enhance brain function, support heart health, and reduce inflammation. These benefits extend beyond chronic and lifestyle-related disorders, addressing issues related to under-nourishment as well. For example, the National Institutes of Health reported that introducing iron-fortified wheat flour in Jordan resulted in a 50% reduction in iron deficiency anemia among children.
Regional Analysis
Evolving Lifestyles in Asia-Pacific to Aid the Region Register Impressive CAGR
Asia-Pacific is slated to dominate the functional food and beverages market share and grow at a CAGR of 9.20% during the forecast period. The central reason for this rise is the rapidly changing lifestyles of people that are increasing the prevalence of chronic conditions in the region. An example of this is the increasing consumption of fast or “junk” food. Thus, there is a surging demand for nutritional foods as people are getting more health conscious, especially in India. In addition to foodstuffs, there is also a high demand for functional hydration, particularly in tropical countries where water loss from the body is high. After Asia-Pacific, North America is expected to be the second-largest region for this market, anticipated to register a CAGR of 7.06% in the forthcoming years.
Competitive Landscape
Development of Exciting Products to Stimulate Intense Competition
One of the leading functional food and beverages market trends is the increasing focus of key players on the developing and launching new and exciting products in the market. Not only do these frequent launches help companies solidify their position in the market, but they also periodically realign the overall dynamics of market competition.
Industry Developments:
- December 2019: GCI Nutrients, the US-based nutraceuticals leader, launched a new functional food and beverage technical advisory service. The aim behind setting up this division is to offer sound advice to customers who want to use the company’s branded ingredients to create their own functional food and beverage items.
- October 2019: The American functional beverage pioneer Drink Nutrient introduced a new drink line, with each individual pack delivering the 13 essential vitamins, thereby enhancing the nutrition quotient of one’s drink. The offering does not contain GMOs, acrylamide, gluten, or any artificial ingredients.
List of Key Players Covered in the Report:
- The Coca-Cola Company
- Celsius Holdings, Inc.
- PepsiCo, Inc.
- Glanbia plc
- Nestle S.A.
- Arla Foods amba
- Hearthside Food Solutions LLC
- Tyson Foods, Inc.
- General Mills, Inc.
- Danone S.A.
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