United States Functional Food Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

United States Functional Food Market Growth

As per the Food Industry Association, nearly 6/10 US shoppers prefer purchasing goods, which have significant health benefits. Over 50% of the American population prefers consuming products with healthy ingredients (56%) and rich dietary fibre content (51%). Going forward, nearly 50% of all American adults plan to eat a healthy diet. Additionally, the younger consumer segment, comprising people aged 13-39 years, is expected to boost their commitment to healthy eating, thereby leading to market development.

Ethically produced food items are perceived to be healthier by two-thirds of the population of younger adults in the United States. Free-range, and grass-fed eggs, meat, and poultry are considered more humane by people. Every 4 out of 10 American consumers prefer wild-caught seafood due to its sustainable nature and high protein content. Nearly 1 of 5 American adults consider regenerative agriculture to be extremely important, with a significant portion of them believing that it improves the nutritious profile of fruits and vegetables. This is expected to contribute to the market expansion.

According to the American Health Association, nearly 122 million adults in the United States suffer from hypertension; almost 94 million of them have total cholesterol above healthy levels. As per the American Diabetes Association, around 37 million American children and adults have diabetes, with over 1 million new cases being diagnosed annually. Increasing consumer consciousness regarding heart health is prompting significant changes in consumer’s dietary habits, leading to the market growth.

Key Trends and Developments

Rising demand for immunity-boosting foods; high consumer appeal for hydrating beverages; ethical sourcing of natural ingredients and meat; and growing ageing population are favouring the United States functional food market growth

Apr. 15, 2024

Glanbia, Plc signed an agreement with California-based Aroma Holding Company to acquire Flavour Producers for nearly $300 million.

Jan. 31, 2024

Abbott Laboratories launched a new high protein shake, Protality, to enable American consumers to reduce their weight while preventing the loss of muscle mass.

Dec. 15, 2022

Abbott Laboratories invested over $500 million in establishing a new manufacturing facility for speciality nutritional products in Bowling Green, Ohio. This is expected to address the nutritional deficiencies among people with extreme food allergies.

Feb. 22, 2023

Danone North America announced its decision to invest nearly $65 million in establishing a new production line for beverage bottles over 2024-2026 in Jacksonville, Florida. This is expected to support its long-term business expansion strategy while driving cost reduction and reducing carbon emissions.

Rising demand for immunity-boosting foods

The rising demand for immunity-boosting foods, attributed to the adoption of a preventative approach to healthcare by consumers, is aiding the market. Superfruits, fish, and yoghurt are expected to witness a substantial increase in their demand over the forecast period.

High consumer appeal for hydrating beverages

Nearly two-thirds of the American adult population exercises at least thrice weekly. In October 2021, the sale of electrolyte supplements recorded a y-o-y growth of 85%, indicating significant potential for market growth.

Ethical sourcing of natural ingredients and meat

As per the Food Industry Association, the sale of organic, grass-fed, and hormone-free meat and poultry constituted a share of nearly 11.4% in overall meat sales, recording a y-o-y growth of 18.1% in 2021.

Growing ageing population

The rising incidences of Alzheimer's and dementia among the ageing population are prompting people to incorporate significant changes in their dietary habits, which is expected to contribute to market growth.

United States Functional Food Market Trends

Nearly 28% of American adults prioritise self-care while purchasing food products. Around 41% of them daily undertake physical activity or other health-promoting actions. Ashwagandha has emerged as a popular ingredient in many food products across the USA, with their sales recording a y-o-y surge of 161% in October 2021. Immunity is cited as the second most important factor behind purchasing food in the USA, followed by general health. This is expected to boost the market growth over the forecast period.

United States Functional Food Industry Segmentation

United States Functional Food Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Ingredient

• Probiotics
• Minerals
• Proteins and Amino Acids
• Prebiotics and Dietary Fibres
• 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 Region

• New England
• Mideast
• Great Lakes
• Plains
• Southeast
• Southwest
• Far West

United States Functional Food Market Share

Based on region, the market is segmented into New England, Mideast, Great Lakes, Plains, Southeast, Southwest, and Far West. The Southeast represented 26% of the overall market share in 2023. Over the forecast period of 2024-2032, the region is assessed to grow at a CAGR of 6.5% as the demand for sustainably sourced food production fortified with functional ingredients increases.

Leading Companies in the United States Functional Food Market

Major functional food manufacturers are expected to incorporate herbs such as ashwagandha, tulsi, mulethi, turmeric, and triphala to drive product sales. This can be attributed to increasing consumer focus on the usage of natural ingredients in functional foods, thereby driving the market growth.

• Abbott Laboratories
• Danone S.A.
• Glanbia, Plc
• General Mills Inc.
• Nestlé S.A.
• Alpina Productos Alimenticios SA
• Productos Naturales De La Sabana S.A.S (Alqueria)
• The Kraft Heinz Company
• Others

The comprehensive report looks into the macro and micro aspects of the market. The EMR report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model.