Meticulous Research®—a leading global market research company, published a research report titled, ‘Functional Food and Beverages Market by Type (Bakery Products, Confectionery Products, Snacks, Energy Drinks, Sports Drinks), Application (Health & Wellness, Immunity, Clinical Nutrition, Cardio Health), Distribution Channel - Global Forecast to 2030.’
The functional food and beverages market is expected to reach $532.98 billion by 2030, at a CAGR of 8.9% from 2023 to 2030. The growth of this market is driven by the increasing demand for healthy & nutrition-rich diets, rising demand for sports & performance drinks, growing innovation and new product developments, and changes in lifestyles and rising incidences of chronic diseases.
Furthermore, increased investment and expansions in the functional food and beverages industry and rapid growth in the retail sector are expected to provide significant growth opportunities for players operating in this market. However, the higher prices of functional food & beverages compared to conventional food & beverages and stringent government regulations & guidelines hinder the growth of this market. Healthy snacking and clean labels are the major trends in this market.
The functional food and beverages market is segmented by type, application, distribution channel, and geography.
Based on type, the functional food and beverages market is segmented into functional food and functional beverages. In 2023, the functional food segment is expected to account for the larger share of the functional food and beverages market. The large market share of this segment is attributed to the growing demand for nutritional & fortifying food products and rising awareness about the health benefits of consuming these products. Consumers are drawn to foods with functional ingredients to lower their risk of specific health concerns, such as obesity, weight loss, diabetes, and cardiovascular diseases, which contributes to the growth of this segment.
However, the functional beverages segment is expected to register the fastest growth during the forecast period. The rapid growth of this segment is driven by the rising demand for functional beverages in emerging economies, increasing demand for sports drinks, and a rise in health expenditure.
Based on application, the functional food and beverages market is segmented into health & wellness, sports nutrition, weight management, immunity, digestive health, clinical nutrition, cardio health, and other applications. In 2023, the health & wellness segment is expected to account for the largest share of the functional food and beverages market. The large market share of this segment is attributed to the factors such as the increasing health consciousness among consumers and the growing demand for clean-label and non-GMO food products.
Based on distribution channel, the functional food and beverages market is segmented into supermarkets & hypermarkets, convenience stores, specialty stores, E-commerce, and other distribution channels. In 2023, the supermarkets & hypermarkets segment is expected to account for the largest share of the functional food and beverages market. The large market share of this segment is attributed to the increasing urbanization, rising per capita disposable incomes, consumers’ increasing adoption of healthy eating habits, and increased sales of functional food and beverages in well-established supermarkets and hypermarkets.
However, the E-commerce segment is expected to register the fastest growth during the forecast period. The rapid growth of this segment is mainly driven by the growing preference for personalization, the convenience offered by E-commerce, the availability of greater discounts compared to offline stores, and a greater product selection experience.
Based on geography, in 2023, North America is expected to account for the largest share of the functional food and beverages market. North America’s major market share is attributed to the well-established food & beverage industry, high awareness of the health benefits of functional food and beverages, the growing popularity of protein bars, shakes, and cookies among millennials, and the high demand for nutritional products across the region.
The key players operating in the functional food and beverages market include The Coca-Cola Company (U.S.), Danone S.A. (France), Glanbia plc (Ireland), Hearthside Food Solutions LLC (U.S.), Mars, Incorporated (U.S.), Meiji Holdings Co., Ltd. (Japan), Nestlé S.A. (Switzerland), Raisio plc (Finland), Royal FrieslandCampina N.V. (Netherlands), The Kraft Heinz Company (U.S.), Arla Foods amba (Denmark), Amway Corporation (U.S.), PepsiCo, Inc. (U.S.), Kellogg Company (U.S.), and General Mills, Inc. (U.S.).
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