Market Size of Functional Food Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 2.71 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Low |
Major Players.webp "Functional Food Market Major Players"){kind=logo}
*Disclaimer: Major Players sorted in no particular order |
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Functional Food Market Analysis
The Global Functional Food Market size is expected to grow from USD 186.22 billion in 2023 to USD 212.85 billion by 2028, at a CAGR of 2.71% during the forecast period (2023-2028).
Functional foods offer specific health benefits that are beyond the regular daily intake of nutrients, such as improved bone health, cholesterol management, improved heart health, and other benefits associated with eye health and vision. The increasing demand for nutritional and fortifying food additives is anticipated to drive market growth. Food manufacturers are deploying the fortification of nutritional additives, such as omega-3 fatty acids, fiber, vitamins, and minerals, in their product offerings. The intention of incorporating the aforementioned additives in the food industry is to increase the nutritional content of food items.
Functional food in sports nutrition has emerged as the largest segment due to the increasing commercialization of sports nutrients and the availability of a wide product range, including creatine and whey protein-based functional food. In January 2021, Danone North America launched a new plant-based protein beverage aimed at athletes. Silk Ultra is a multi-serve, dairy-free beverage with 20 grams of soy protein per serving, designed for muscle maintenance and repair. The drink is enriched with calcium and vitamins A, D, B2, and B12 and comes in three flavors: creamy chocolate, unsweet, and original, which, according to the company, includes 2.5 times the protein of typical dairy milk.
Functional Food Industry Segmentation
Functional foods can be considered whole, fortified, enriched, or enhanced foods that provide health benefits beyond the provision of essential nutrients (e.g., vitamins and minerals) when consumed at efficacious levels as part of a varied diet regularly.
The functional food market is segmented by product type, distribution channel, and geography. Based on product type, the market is segmented into bakery products, breakfast cereals, snack/functional bars, dairy products, baby food, and other product types. The snack/functional bars market has been further sub-segmented into sports bars, energy bars, and protein bars. Similarly, dairy products have been further sub-segmented into yogurt and other functional dairy products. Based on distribution channels, the market is segmented into supermarkets/hypermarkets, specialist retailers, convenience/grocery stores, online retail stores, and other distribution channels. Based on geography, the report offers a detailed analysis of the regions, including North America, South America, Europe, Asia-Pacific, and the Middle East & Africa.
The market sizing has been done in value terms in USD for all the abovementioned segments.
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| Breakfast Cereals | |||||
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| Baby Food | |||||
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| Supermarkets/Hypermarkets | |
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| Convenience/Grocery Stores | |
| Online Retail Stores | |
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Functional Food Market Size Summary
The functional food market is experiencing a notable expansion, driven by the increasing consumer awareness of the health benefits associated with enhanced nutritional intake. These foods, which offer specific health advantages beyond standard nutrition, are gaining traction due to their role in improving bone health, managing cholesterol, and supporting heart and eye health. The market is further bolstered by the growing demand for fortified food products, which incorporate additives like omega-3 fatty acids, fiber, vitamins, and minerals to enhance nutritional value. The sports nutrition segment, in particular, has emerged as a significant contributor to market growth, with products such as creatine and whey protein-based foods gaining popularity. The trend towards healthier eating habits, including the preference for smaller, more frequent meals and on-the-go snacking, is also influencing market dynamics, as consumers seek convenient and nutritious options to support their active lifestyles.
Regionally, the Asia-Pacific market stands out as a major player, with increasing consumer interest in immunity-boosting foods and beverages. The region's market growth is supported by a rising demand for vitamin-fortified and mineral-enriched products, with yogurt and plant-based alternatives gaining prominence. The competitive landscape of the functional food market is characterized by the presence of both domestic and multinational companies, such as Danone, Nestlé, PepsiCo, Kellogg's, and Abbott Laboratories, who are actively engaging in product innovation and strategic partnerships to capture market share. These companies are leveraging social media and online distribution channels to reach health-conscious consumers, further driving the market's expansion. The focus on natural, organic, and environmentally friendly ingredients is also shaping consumer preferences, contributing to the overall growth of the functional food market.
Functional Food Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitutes
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Product Type
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2.1.1 Bakery Products
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2.1.2 Breakfast Cereals
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2.1.3 Snack/Functional Bars
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2.1.3.1 Sports Bars
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2.1.3.2 Energy Bars
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2.1.3.3 Protein Bars
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2.1.4 Dairy Products
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2.1.4.1 Yogurt
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2.1.4.2 Other Functional Dairy Products
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2.1.5 Baby Food
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2.1.6 Other Product Types
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2.2 Distribution Channel
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2.2.1 Supermarkets/Hypermarkets
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2.2.2 Specialist Retailers
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2.2.3 Convenience/Grocery Stores
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2.2.4 Online Retail Stores
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2.2.5 Other Distribution Channels
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 United Kingdom
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2.3.2.2 Germany
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2.3.2.3 Spain
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2.3.2.4 France
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2.3.2.5 Italy
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2.3.2.6 Russia
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2.3.2.7 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 India
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2.3.3.3 Japan
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2.3.3.4 Australia
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle East & Africa
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2.3.5.1 South Africa
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2.3.5.2 United Arab Emirates
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2.3.5.3 Rest of Middle East & Africa
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Functional Food Market Size FAQs
What is the current Functional Food Market size?
The Functional Food Market is projected to register a CAGR of 2.71% during the forecast period (2024-2029)
Who are the key players in Functional Food Market?
Danone SA, Abbott Laboratories, PepsiCo Inc., The Kellogg's Company and Nestlé S.A. are the major companies operating in the Functional Food Market.
