PUBLISHER: The Business Research Company | PRODUCT CODE: 1675503
PUBLISHER: The Business Research Company | PRODUCT CODE: 1675503
Functional foods are highly nutritious, offering various health benefits such as preventing nutritional deficiencies, shielding against diseases, enhancing cholesterol levels, lowering blood pressure, and supporting proper growth and development.
Primary product types include bakery and cereals, dairy products, meat, fish, eggs, soy products, fats and oils, among others. Dairy products encompass various milk-derived foods such as butter, cheese, ice cream, yogurt, and condensed or dried milk. These foods derive their functionality from ingredients such as carotenoids, dietary fibers, fatty acids, minerals, prebiotics, probiotics, vitamins, and other elements. Functional foods find applications in sports nutrition, weight management, immunity boosting, digestive health, clinical nutrition, cardiovascular health, and more.
The functional food research report is one of a series of new reports from The Business Research Company that provides functional food statistics, including functional food industry global market size, regional shares, competitors with functional food share, detailed functional food segments, market trends and opportunities, and any further data you may need to thrive in the functional food industry. This functional food research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The functional foods market size has grown rapidly in recent years. It will grow from $281.3 billion in 2024 to $315.1 billion in 2025 at a compound annual growth rate (CAGR) of 12.0%. The growth in the historic period can be attributed to increasing health awareness, aging population, preventive healthcare trend, scientific research and nutritional advancements, rising incidence of lifestyle diseases.
The functional foods market size is expected to see rapid growth in the next few years. It will grow to $466.78 billion in 2029 at a compound annual growth rate (CAGR) of 10.3%. The growth in the forecast period can be attributed to changing dietary patterns, personalized nutrition trends, expanding middle-class population, focus on gut health, clean label and natural ingredients. Major trends in the forecast period include advancements in food technology, rising consumer awareness of health and wellness, emphasis on gut health, innovation in ingredients and formulations, digitalization of nutrition and personalized diets.
The surge in diseases is redirecting consumers' attention towards adopting healthy eating habits, consequently fueling the demand for functional foods. Functional foods play a crucial role in providing the human body with essential nutrition, vitamins, and minerals, thereby helping reduce the risk of diseases. Heart disease, as reported by the Centers for Disease Control and Prevention, stands as a leading cause of death in the USA, with approximately 647,000 Americans succumbing to heart disease annually, accounting for one in every four deaths. The escalating prevalence of cardiovascular and other diseases globally is expected to drive an increased demand for health-conscious dietary choices. This heightened focus on healthier eating habits is poised to contribute to the growth of the functional food market throughout the forecast period.
The increasing demand for nutrient-dense foods is anticipated to drive the growth of the functional foods market in the future. Nutrient-dense foods are those that deliver a high concentration of essential nutrients in relation to their calorie content. Functional foods are considered superior to nutrient-dense foods as they provide important nutrients, including vitamins, minerals, healthy fats, and fiber, which are essential for maintaining good health and reducing the risk of chronic diseases. For example, in 2023, a study by The International Food Information Council (IFIC), a non-profit organization based in Washington, DC, focused on disseminating science-based information regarding food safety, nutrition, and sustainable food systems, revealed that the most common eating patterns or diets include high-protein (18%), mindful eating (17%), calorie-counting (12%), clean eating (12%), and intermittent fasting (12%). Consequently, the growing demand for nutrient-dense foods is fueling the functional foods market.
Key players in the functional food market are strategically focusing on new product developments and expanding their operations to cater to the increasing consumer demand. A notable example is Fonterra Co-operative Group Limited, Tillamook County Creamery Association (TCAA), and Three Mile Canyon Farm, jointly introducing Pro-Optima in January 2022. Pro-Optima, an A-grade functional whey protein concentrate, is designed for use in cultured products such as yogurt, offering enhanced textures and delivering multi-functional benefits.
Major companies engaged in the functional foods sector are directing their efforts towards developing innovative products, particularly new plant ingredients. Plant ingredients, derived from plants and utilized across various applications, including food, cosmetics, and pharmaceuticals, are at the forefront of this innovation. In December 2022, Merit Functional Foods, a US-based manufacturer specializing in high-purity proteins, launched the Organic Peazazz C 850. This is the first United States Department of Agriculture (USDA)-certified organic protein component, designed to meet the growing demand for plant-based protein sources. The ingredient, derived from peas, offers a premium alternative to current protein sources, known for its high purity, excellent flavor, and solubility. It finds applications in various products such as beverages, protein bars, and dairy substitutes.
In May 2024, Danone, a food company based in the US, acquired Functional Formularies for an undisclosed sum. This acquisition aligns with Danone's 'Renew Danone' strategy, which seeks to boost growth and competitiveness within its Medical Nutrition segment. Functional Formularies is a nutritional food company located in the US.
Major companies operating in the functional foods market include Nestle Alimentana SA, BASF SE, PepsiCo Inc., Unilever plc, Abbott Laboratories, The Coca-Cola Company, GlaxoSmithKline Company, Mondelez International Inc., Danone SA, Kraft Foods Inc., General Mills Inc., Royal FrieslandCampina NV, Kellogg Company, Kirin Holdings Company Ltd., Dr PepperSnapple Group Inc., Red Bull GmbH, Ajinomoto Co. Inc., Meiji Holdings Company Ltd., Givaudan SA, Glanbia plc, Barilla Holding SpA, Arla Foods UK plc, Ocean Spray Cranberries Inc., Sanitarium Health and Wellbeing Company, Raisio Oyj, Lifeway Foods Inc., GFR Pharma Ltd., BNL Food Group Inc., Suiza Foods Corporation, Murray Goulburn Co-Operative Co. Limited
Asia-Pacific was the largest region in the functional food market in 2024. Western Europe was the second-largest region in the global functional foods market. The regions covered in the functional foods market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the functional foods market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The functional food market consists of sales of fatty acids, carotenoids, prebiotics & probiotics, vitamins, dietary fibers, minerals, and other functional foods. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Functional Foods Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on functional foods market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for functional foods ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The functional foods market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.