Functional Food and Beverage Market Size to Hit USD 529.66

Pune, India, Oct. 10, 2022 (GLOBE NEWSWIRE) — The global functional food and beverage market size is projected to reach USD 529.66 billion by 2028, exhibiting a CAGR of 9.5% during the forecast period. According to a recent report by Fortune Business Insights™, titled “Functional Food and Beverage Market, 2021-2028”, the market’s value stood at USD 258.80 billion in 2020.

Heightened Need for Immunity Boosting Functional Foods amid COVID-19 to Fuel the Market

The COVID-19 pandemic has created a health emergency of unprecedented magnitude, forcing people worldwide to rethink their diets and lifestyles. With the pandemic relentlessly intensifying across the planet, health professionals are aggressively promoting functional food and beverages to enhance immune systems. For example, an ex-nutrition policymaker in the Philippines recently noted in an interview that functional foods, such as vegetables and fruits, are instrumental in battling the coronavirus since they boost immunity and can also improve public health. Private food technology companies are also developing new techniques to create novel offerings. In March 2021, for instance, Seattle-based SoRSE Technology announced that it is engaging in intensive research to integrate functional ingredients into packaged food. The coronavirus outbreak has, thus, rejuvenated the interest in functional foods and drinks among consumers and producers alike, thus benefiting the market and allowing it to register a considerable growth of 11.0% in 2020.

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List of Key Players Covered in the Functional Food and Beverage Market Report:

  • 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)
  • 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)

Report Scope & Segmentation:

Report Coverage Details
Forecast Period 2021-2028
Forecast CAGR 9.5 %
2028 Value Projection USD 529.66 Billion
Base Year 2020
Functional Food and Beverage Market Size in 2021 USD 281.14 Billion
Historical Data 2017-2019
No. of Pages 164
Segments Covered By Type, By Distribution Channel, By Geography
Functional Food and Beverage Market Growth Drivers Growing Consumption of Nutrient-enriched Foods to Improve Overall Health and Well-being to Fuel the Market
Innovation and New Product Developments to Aid Growth

Market Segmentation:

On the basis of type, the market has been classified into functional cereals & grains, functional dairy products, functional bakery products, functional fats & oils, and other functional/fortified foods.

Based on distribution channel, this market has been grouped into supermarkets/hypermarkets, convenience stores, online retail, and others. In 2020, the supermarkets/hypermarkets segment led the global functional foods and drinks market with a share of 44.21% and the US market with a share of 43.06%

By geography, the market is segregated into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

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Highlights of the Report

This market report supplies tangible insights into the regional prospects of the market and presents an exhaustive analysis of the market drivers and challenges. Furthermore, the report contains detailed profiling of key market players and careful study of their strategies and incorporates industry-leading, actionable research into the different market segments.

Driving Factor

Proliferation of Food & Beverage Startups to Elevate Market Potential

The functional food and beverage market growth is set to accelerate due to the steadily growing presence of startups specializing in nutrient-enriched foods and drinks. For example, New Jersey-based Remedy Organics makes beverages based on plant products and infuses potent super-ingredients, botanicals, herbs, proteins, and probiotics. With the demand for non-dairy products rising, some startups are engaged in the development of plant-based dairy alternatives. For instance, Toronto-based YoFiit leverages the high nutrition quotient of chickpeas to create functional non-dairy meal solutions. Further, a few startups are also targeting their products towards consumers living with chronic diseases. Texas-based Hapi Drinks, for example, offers sugar-free drinks for kids with a mission to fight Type 2 diabetes and childhood obesity. The increasing availability of such niche functional food and beverage in major economies will enable the market to achieve a long-lasting growth trajectory.     

Regional Insights

Asia Pacific to Present Excellent Business Opportunities for Market Players

Asia Pacific is expected to dominate the functional food and beverage market share during the forecast period due to the rising disposable incomes of consumers, especially in India and China. Improving lifestyle in these countries is anticipated to stoke the demand for healthy food and drink alternatives in the forthcoming years, spawning lucrative sales opportunities for players in this market. In 2020, the Asia Pacific market size stood at USD 100 billion and the region is forecasted to register a CAGR of 10.04% from 2021 to 2028.

In Europe, on the other hand, stringent regulations governing the food and beverage industry is likely to boost investments in innovation and R&D by companies in the region, which in turn will promote the development of functional food and beverages. In North America, a growing preference for naturally produced food items will prove favorable for the market.

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Competitive Landscape

Introduction of Novel Products in Emerging Economies to Electrify the Market

Key developers of functional food and beverages are focusing on capitalizing on the untapped opportunities in emerging markets. These markets are blossoming, underpinned by better incomes and improving health consciousness, encouraging large food and beverage companies to introduce new products and enlarge their customer base.

Detailed Table of Content:

      • Introduction
        • Research Scope
        • Market Segmentation
        • Research Methodology
        • Definitions and Assumptions
      • Executive Summary
      • Market Dynamics
        • Market Drivers
        • Market Restraints
        • Market Opportunities
      • Key Insights
        • Overview of the Parent/Related (Nutraceuticals) Market
        • Regulatory Analysis
        • Industry SWOT Analysis
        • Recent Industry Developments – Policies, Mergers & Acquisitions, and New Product Launches
        • Market Analysis and Insights (in Relation with COVID-19)
          • Impact of COVID-19 on the Market
          • Supply Chain Challenges due to the Pandemic
          • Potential Opportunities Due to COVID-19
      • Global Functional Food and Beverage Market Analysis, Insights and Forecast, 2017-2028
        • Key Findings / Summary
        • Market Size Estimates and Forecast 
          • By Type (Value)
            • Functional Cereals & Grains
            • Functional Dairy Products
            • Functional Bakery Products
            • Functional Fats & Oils
            • Other Functional/Fortified Foods
          • By Distribution Channel (Value)
            • Supermarkets/Hypermarkets
            • Convenience Stores
            • Online Retail
            • Others
          • By Region (Value)
            • North America
            • Europe
            • Asia Pacific
            • South America
            • Middle East & Africa
      • North America Functional Food and Beverage Market Analysis, Insights and Forecast, 2017-2028
        • Key Findings / Summary
        • Market Size Estimates and Forecast 
          • By Type (Value)
            • Functional Cereals & Grains
            • Functional Dairy Products
            • Functional Bakery Products
            • Functional Fats & Oils
            • Other Functional/Fortified Foods

TOC Continued…!

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