April 20, 2024
Functional Food Market

Functional Food Market propelled by increasing consumer focus towards health and wellness

Functional foods are food and food components that provide health benefits beyond basic nutrition. Functional foods help reduce the risk of various diseases and improve physiological functions. They contain antioxidants, probiotics, prebiotics, vitamins, minerals and substances like omega-3 fatty acids that promote health and wellbeing. The growing prevalence of lifestyle diseases and increasing health consciousness among consumers has boosted demand for functional foods.

The global Functional Food Market is estimated to be valued at US$ 235.27 Mn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The increasing focus of consumers towards health and wellness is a major trend propelling the growth of the functional food market. With rising health issues like diabetes, obesity, cardiovascular diseases etc. consumers are more inclined towards consumption of food products that offer additional health benefits. Functional foods are seen as a convenient and healthy way of meeting daily nutritional requirements. Many food companies have launched new functional food product lines for conditions like diabetes, digestive health, brain health etc catering to the growing demand. Targeting specific health conditions through functional ingredients is becoming a key business strategy for food players to boost sales in the coming years.

SWOT Analysis

Strength: Functional foods deliver health benefits beyond basic nutrition. They help reduce the risk of chronic diseases.
Weakness: High prices of functional foods limit their adoption rate. Lack of consumer awareness also restricts the market growth.
Opportunity: Rising health consciousness and growing middle-class population boosts the demand. Expanding distribution networks facilitate easy availability.
Threats: Side effects raise safety concerns. Stringent regulations delay new product launches.

Key Takeaways
The Global Functional Food Market Size is expected to witness high growth over the forecast period. The increasing prevalence of illnesses such as heart diseases, obesity, and cancer is driving greater spending on preventive healthcare through functional food products. The global Functional Food Market is estimated to be valued at US$ 235.27 Mn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2031.

Regional analysis
North America dominates the global functional food market, accounting for over 35% share. This is attributed to rising health awareness and disposable incomes in the US and Canada. Asia Pacific exhibits the fastest growth, led by countries such as China, India, and Japan. Growing health consciousness coupled with improving lifestyles spurs demand.

Key players
Key players operating in the functional food market are F Hoffmann-La Roche, BASF, Danone, Nestle, and Amway. These companies focus on new product introductions to capitalize on the lucrative opportunities. They also invest in marketing initiatives to spread brand awareness and boost sales.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it