The Functional Food Market is estimated to be valued at Us$ 204.22 Billion in 2023 and is expected to exhibit a CAGR Of 6.9% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Functional foods are foods that offer health benefits beyond basic nutrition. They contain key ingredients that deliver certain bioactive compounds or provide benefits against specific diseases. Common functional foods include fortified foods, probiotic foods, omega-3 enriched foods, dietary fibers, prebiotic foods and plant sterol-enriched foods. They provide added physiological and cognitive benefits to consumers such as improved digestion, immunity, heart health, weight management and brain functions.

Market Dynamics:

The global functional food market is driven by increasing awareness about health benefits of functional food products. According to a survey by FMI in 2018, nearly 60% of consumers prefer food and drinks fortified with vitamins and minerals. Growing prevalence of lifestyle diseases such as diabetes, obesity and cardiovascular diseases is propelling demand for disease preventing foods. Additionally, favorable governmental initiatives for promoting consumption of fortified and enriched foods in developing nations is further fueling market growth. However, high costs associated with research and development for functional ingredients remains a challenging factor. Nevertheless, widespread adoption of plant-based diets and rise of veganism offers lucrative opportunities over the forecast period.

SWOT Analysis

Strength: Functional Food Market has high growth potential. The rising health consciousness among consumers globally has increased the demand for functional food and beverages in recent years. Functional foods claim several health benefits that go beyond their basic nutritional value. The marketing of these health benefits further fuels the sales of these products.

Weakness: High competitiveness in the market poses challenges for new entrants. The functional food market is highly fragmented with the presence of several global as well as regional players. This intense competition makes it difficult for new players to gain traction. Additionally, the R&D requirements and costs associated with functional food products are high.

Opportunity: Growing elderly population drives the demand. The global elderly population is growing at an unprecedented rate. This ageing population seeks functional food products claiming benefits like improved brain health, joint health, heart health etc. Moreover, changing consumer preferences towards organic and plant-based foods present lucrative opportunities.

Threats: Stringent regulatory framework and quality certifications challenge growth. All countries have their own regulatory frameworks for foods claiming additional health benefits. Meeting these stringent norms requires time and investment. Moreover, quality certifications aren't assured and fake claims could undermine consumer confidence. Changing consumption patterns and economic slowdowns also pose threats.

Key Takeaways

The Global Functional Food Market Size is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period, due to increasing health consciousness among consumers globally. Consumers are increasingly preferring food products with additional health and wellness benefits. This rising demand for functional food is propelling market revenue.

Regional analysis:

North America dominates the global functional food market currently. The U.S. accounts for the major share due to high consumer awareness about the health advantages of functional food. However, Asia Pacific is anticipated to register the highest CAGR during the forecast period due to rising disposable incomes, growing health issues and shifting preferences towards healthy diets in developing countries like India and China.

Key players operating in the functional food market include Danone, Glanbia Plc, Hearthside Food Solutions Llc, Mars, Incorporated, Meiji Co., Ltd., Nestle S.A., Raisio Plc, Royal Frieslandcampina N.V., Sanitarium Health Food Company, And The Kraft Heinz Company. These leading players are pursuing business expansion strategies like new product launches, acquisitions and focusing on R&

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