The global functional food & beverages market size is projected to reach USD 529.66 billion by 2028 on account of the escalating demand for fortified foods and drinks in developing nations, states Fortune Business Insights™ in its report, titled “Functional Foods & Beverages Market Size, Share & Industry Analysis, By Type (Functional Cereals & Grains, Functional Dairy Products, Functional Bakery Products, Functional Fats & Oils, Other Functional/ Fortified Foods), Distribution Channel (Supermarkets/ Hypermarkets, Convenience Stores, Online Retail, and Others), and Regional Forecast, 2021-2028”. The report also states that the value of the market was at USD 258.80 billion in 2020 and the market is expected to register a CAGR of 9.4% from 2021 to 2028.
The COVID-19 pandemic outbreak is anticipated to favor the functional food & beverages market growth owing to the increasing demand for nutrient-rich products to fight the infection. Adding to this are the marketing campaigns initiated by food companies to gain visibility for their offerings, which will further bolster the demand for functional foods and drinks. The market showcased an impressive growth of 11.0% in 2020, fueled by the aforementioned factors.
Information Source: https://www.fortunebusinessinsights.com/functional-foods-market-102269
Danone North America Debuts with a New Line of Protein Yogurts
In December 2020, Danone North America made its debut in the functional food and drinks market with Oikos Pro, a new range of yogurt cups and drinks packed with proteins. The innovative yogurt offerings have been formulated with essential amino acids, minerals, and proteins necessary for building and maintaining muscular strength in the body. More specifically, the yogurts are infused with leucine, an amino acid chain for building muscles. Containing no sugar, the cups and drinks would be available in peach, mixed berry, strawberry, and vanilla. The entry of Danone in the functional food & beverages space is set to make the competition in this market highly dynamic and charged up, augmenting innovation in the process.
Increasing Focus on Health and Wellness to Support Market Growth
Concerns surrounding health and well-being have intensified over the past decade, driven by the increasing prevalence of lifestyle-induced chronic conditions. For example, according to the World Health Organization (WHO), cardiovascular disease is the number one cause of global deaths, with the lack of physical activity and unhealthy diets being the primary causative factors. Similarly, the International Diabetes Federation (IDF) estimates that by 2045 the number of diabetics in the world will reach 700 million, nearly doubling from the present levels. Functional food & beverages have emerged as the ideal solution to prevent or manage these conditions as these products are powered by natural ingredients and micronutrients, making them safe to consume. The multifarious health benefits associated with these foods and drinks are, thus, propelling the growth of this market.
Unique Collaborations by Key Players to Stoke Market Competition
Top companies in this market are entering into unique partnerships with regional entities to research and develop innovative functional food and beverage offerings for consumers. Through these collaborations, smaller players are able to access cutting-edge technologies and formulate exciting products. On the other hand, large food & beverage companies are able to gain prominence in emerging markets, where the interest in functional food & beverages is rapidly evolving.
Industry Development:
- March 2020: OptiBiotix, a leading life sciences organization based in the UK, collaborated with Uruguay-based Granja Pocha to develop and produce a lineup of dairy products packed with the probiotic strain, Lactobacillus Plantarum (LPLDL). The company aims to capture the booming demand for functional food & beverages in South America through this venture.
List of Key Players Profiled in the Functional Food & Beverages Market Report:
- Arla Foods amba (Viby, Denmark)
- Hearthside Food Solutions LLC (Illinois, United States)
- Tyson Foods Inc. (Arkansas, United States)
- General Mills Inc. (Minnesota, United States)
- Danone S.A. (Paris, France)
- The Coca-Cola Company (Georgia, United States)
- Celsius Holding, Inc. (Florida, United States)
- PepsiCo Inc. (New York, United States)
- Glanbia Plc (Kilkenny, Ireland)
- Nestle S.A. (Vevey, Switzerland)
Further Report Findings
- The supermarkets/hypermarkets segment dictated the global market with a share of 21% and the US market with a share of 43.06% in 2020. This is mainly attributable to the fact that supermarket and hypermarket chains are targeting underserved locations and strategically enhancing the presence of functional foods and beverages on shelves.
- Asia Pacific is expected to lead the functional food & beverages market share during the forecast period due to the spreading awareness about chronic illnesses in the region. In 2020, the Asia Pacific market size stood at USD 100 billion, and the region is anticipated to showcase a CAGR of 04% from 2021 to 2028.
