Global Functional Food Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

Functional Food Market Outlook

• The market is significantly driven by the rapidly evolving lifestyles of individuals, especially working people with no time to take care of their nutritional intake. 
• The ground-breaking product launches backed by extensive research by the companies are gaining traction in the market. 
• The increasing awareness of a healthy lifestyle and alternatives to address existing nutritional deficiencies is expected to increase the demand for functional foods in the forecast period.

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Functional Food Market Overview

A functional food combines two or more ingredients, claiming to have additional functions like preventing illness or boosting the overall health of an individual. Functional foods are intended to provide physiological advantages and/or lower the risk of chronic illness beyond basic nutritional functions. It can be taken as part of a normal diet and may look like traditional food.

Functional Food Market Growth Drivers

Innovative Product Launches by Companies to Boost Market Growth

The market growth is significantly driven by innovative product launches by affluent companies, leading to increased demand for more innovative launches. For instance, in September 2024, ZBiotics, a biotechnology company specialising in genetically engineered probiotics, introduced its latest innovation, the Sugar-to-Fiber Probiotic Drink Mix. This groundbreaking product has been developed by a team of PhD microbiologists to address the lack of fiber in the average American diet. It is the first of its kind functional food product available to consumers in the United States. The product works by converting dietary sugar (sucrose) into a prebiotic fiber called levan, which works continuously to promote better gut health all day long. The product launch is aimed at filling the crucial gap by addressing fiber insufficiency in an average American diet. ZBiotics took benefit from genetic engineering to fill this gap, offering a more advanced solution to consumers.

Additionally, in August 2024, ZBiotics received USD 12 million in funding, which is expected to play a pivotal role in improving the company’s operations to address increasing consumer demand, enhance market presence, foster research and development activities to develop and bring ground-breaking innovations to the market, thereby, propelling development.

Increasing Attention to Adopt a Healthier Lifestyle to Boost Functional Food Market Demand

The market is expanding due to the rising consumer demand for nutritious and fortified food products. Functional ingredients like omega-3 and probiotics are widely utilised in fish oils and yoghurt to lower the risk of cardiovascular diseases and enhance the quality of intestinal microflora. This is driving the growth of the market. Furthermore, as people become more health-conscious and pay more attention to their lifestyles and diets, the demand for functional foods is expected to increase throughout the world. With the growing popularity of low-carbohydrate and high-protein diets such as paleo diets and the increasing awareness of digestive health, the market is anticipated to witness significant growth in the forecast period.

Functional Food Market Trends

The market is witnessing several trends and developments to improve the current scenario. Some of the notable trends are as follows:

Increasing Popularity and Awareness for Personalised Nutrition

There is an increased awareness about personalised nutrition intake among individuals, especially young adults. The awareness is contributing to the increased adoption of functional foods such as foods with high-protein and low-carbohydrate values. The advances in nutrigenomics and microbiome research are driving demand for functional foods tailored to individual dietary needs, genetic profiles, and health goals.

Shifting Preference for Sustainable Ingredients to Boost Functional Food Market Value

The market is witnessing an increasing preference for sustainable and clean-label ingredients among consumers. The growing awareness of environmental issues and rising global warming is contributing to escalating consciousness. This is influencing the functional food industry, with a shift towards sustainably sourced ingredients, plant-based alternatives, and clean-label products.

Changing Lifestyle Changing Nutrition

The rise of the rapid-paced lifestyle has increased demand for convenient functional foods, particularly in the form of beverages, healthy bars, and snacks, bolstering market demand. These products allegedly consist of health-boosting ingredients such as probiotics, fiber, and protein for consumers seeking quick, nutritious options.

Advent of Functional Foods for Beauty to Impact the Functional Food Market Size

There adoption of functional foods to promote skin, hair, and nail health is one of the major market trends, contributing to an increase in the market size. Functional foods with collagen peptides, hyaluronic acid, and antioxidants like vitamin E are gaining significant popularity among individuals of all age groups and genders, propelling the market growth.

Functional Food Market Segmentation

Market Breakup by Ingredient

• Probiotics
• Minerals
• Proteins and Amino Acids
• Dietary Fibers
• Vitamins
• Others

Market Breakup by Product Type

• Bakery and Cereals
• Dairy Products
• Meat, Fish, and Eggs
• Soy Products
• Fats and Oils
• Others

Market Breakup by Application

• Sports Nutrition
• Weight Management
• Clinical Nutrition
• Cardio Health
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

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Functional Food Market Share

Probiotics Leads the Market Segmentation by Ingredients

The segmentation by ingredient includes probiotics, minerals, proteins and amino acids, dietary fibers, vitamins, and others. Based on the segmentation, the prebiotics and dietary fibres segment is expected to grow at a rapid pace over the forecast period. Fibre consumption is linked to a variety of health advantages, including gut health maintenance, cholesterol reduction, and blood sugar control, to name a few. These benefits, together with the growing functional food industry, are projected to drive the dietary fibre segment forward. Moreover, prebiotics provide a variety of health advantages in the large intestine, including reduced cancer risk and improved calcium and magnesium absorption. Prebiotics are found in a variety of vegetables and fruits.

Functional Food Market Analysis by Region

Based on the region, the market report offers insights into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. The regional market share is significantly dominated by the Asia Pacific. The dominance is characterised by several factors such as the increasing awareness about the benefits of functional foods among individuals. The region is well-known for its traditional practices for possessing a healthy lifestyle including food intake. However, the rising influence of Western culture is affecting the younger generation in the region and leading to increased demand for functional food alternatives, propelling market growth.

With the rising adoption of sedentary lifestyles, the market is witnessing a growing interest in functional food that addresses chronic conditions like diabetes, cardiovascular diseases, and obesity. Another factor responsible for market growth in the region is the rising disposable incomes. With more disposable income, consumers are prioritising long-term health and adopting preventative healthcare approaches. This behaviour has led to a growing demand for functional foods that support specific health concerns such as immunity, digestive health, and weight management.

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Leading Players in the Functional Food Market

The key features of the market report comprise patent analysis, funding and investment analysis, and strategic initiatives by the leading players. The major companies in the market are as follows:

Danone S.A

Established in 1919 and headquartered in Paris, France, Danone is a global leader in dairy, plant-based, and health-focused food products. Their portfolio includes probiotics, infant nutrition, and specialised health products, reflecting a commitment to health and wellness through their functional food lines.

Glanbia, Plc

Founded in 1997 and based in Kilkenny, Ireland, Glanbia is renowned for its dairy and nutritional products. It focuses on sports nutrition, protein supplements, and functional beverages, targeting health-conscious consumers with innovative solutions to support fitness and overall well-being.

Hearthside Food Solutions LLC

Established in 2009 and headquartered in Downers Grove, Illinois, USA, Hearthside Food Solutions is a premier contract manufacturer of functional bars, snacks, and baked goods. Their offerings include protein bars, nutritional snacks, and other functional foods tailored to meet health and wellness trends.

Mars, Incorporated

Founded in 1911 with headquarters in McLean, Virginia, USA, Mars is best known for its confectionery and pet care products. The company has ventured into functional foods with nutrition-focused products, particularly through its subsidiary, Mars Edge, which offers supplements and specialized health products.

Meiji Holdings Company, Ltd.

Established in 2009 and headquartered in Tokyo, Japan, Meiji Holdings specialises in dairy products, confectionery, and nutritional products. Their functional food portfolio includes probiotics, infant formula, and fortified foods, aimed at promoting health and addressing specific dietary needs.

Other key players in the market include Nestlé S.A., Raisio plc, Royal FrieslandCampina N.V., Sanitarium Health Food Company, and The Kraft Heinz Company.

Key Questions Answered in the Functional Food Market

• What was the global functional food market value in 2023? 
• What is the functional food market forecast outlook for 2024-2032?
• What is market segmentation based on ingredients? 
• How does segmentation by product type influence market dynamics?
• What is market segmentation based on the application? 
• What are the major factors aiding the functional food market demand?
• How has the market performed so far and how is it anticipated to perform in the coming years? 
• What are the market's major drivers, opportunities, and restraints?
• Which country is expected to experience expedited growth during the forecast period?
• What are the major global functional food market trends?
• Which ingredient is expected to dominate the market? 
• Which product type will lead the market segment? 
• Which application will lead the market segment? 
• Who are the key players involved in the global functional food market? 
• What is the patent landscape of the market? 
• What are the current unmet needs and challenges in the market?
• How are partnerships, collaborations, mergers, and acquisitions among the key market players shaping the market dynamics?