Global Functional Food Market By Application (Cardio Health, Sports Nutrition, Clinical Nutrition, Weight Management, and Others), By Product (Dairy Products; Meat, Fish & Eggs; Bakery & Cereals; Soy Products; Fats & Oils and Others), By Ingredient (Vitamins; Proteins & Amino Acids; Prebiotics & Dietary Fibers; Minerals; Probiotics and Others), By Regional Outlook, Industry Analysis Report and Forecast, 2021 - 2027
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Get in-depth analysis of the COVID-19 impact on the Functional Food Market
Market Report Description
The Global Functional Food Market size is expected to reach $259.7 billion by 2027, rising at a market growth of 8.5% CAGR during the forecast period. Functional food refers to the modified food items which are beneficial in enhancing the health of a person. However, it doesn’t cure disease but it proves to be useful in decreasing the risk of fatal diseases by enhancing the health of the body by offering nutrients and proteins.
Functional food in the diet contributes to the person’s physiological state. Functional foods refer to those ingredients that offer different kinds of health advantages which are far more than just offering nutritional value. For instance, they may minimize nutrient deficiencies, prevent diseases, and support ideal growth & development. A few kinds of functional foods have supplements or other included ingredients that are made to enhance the health.
The growth of the global functional food market would be accelerated by the growing demand for fortifying and nutritional food additives. The manufacturers operating in the food and beverage industry are implementing fortification of nutritional additives like omega-3 fatty acids, minerals, vitamins, fibers, and others in their product offerings. The significant reasons behind including the above-mentioned additives in the food and beverage sector are to enhance the nutritional value in food products.
COVID-19 Impact Analysis
The global outbreak of corona virus has had a severe impact on how people view their diet, health, and wellbeing. There is a sharp increment in the fear of disease and concerns regarding well-being. COVID-19 has fueled the interest in functional foods that provide wellbeing advantages like immunity and stress management. A year into the COVID-19 crisis, concerns regarding health problems are on the sharp rise. This reveals that consumers have significantly changed their attitudes towards health and wellness because of the virus.
The demand for functional foods has been increasing during the pandemic. Due to the global corona virus crisis, consumers have become aware of the importance of healthy food in their diet so as to increase the immunity and prevent themselves from the deadly COVID-19 infection. Many consumers opt for functional foods and other related products due to their benefits. Thus, COVID-19 brought a positive impact on the global functional food market during the forecast period.
Based on Application, the market is segmented into Cardio Health, Sports Nutrition, Clinical Nutrition, Weight Management, and Others. Cardio health emerged as the leading segment by obtaining the highest revenue share of the global market in 2020. It would showcase a major growth rate throughout the forecast period due to the rising demand for functional food in different types of cardiovascular diseases, hardening of arteries, congestive heart failure, and congenital heart defect.
Based on Product, the market is segmented into Dairy Products; Meat, Fish & Eggs; Bakery & Cereals; Soy Products; Fats & Oils and Others. Other main products segment involves fish and eggs, meat, soy products, and fats & oils. New developments across the bakery and cereals sector would segment the market demand. Increasing demand for functional snack and cereal bars like energy bars, protein bars, and nutrition bars would boost the growth of the market during the forecast period. Fortified cereals would showcase a major growth rate as companies like Kellogg introducing new product ranges in order to leverage the emerging market opportunities.
Based on Ingredient, the market is segmented into Vitamins; Proteins & Amino Acids; Prebiotics & Dietary Fibers; Minerals; Probiotics and Others. The vitamins segment procured the highest revenue share of the global functional food market in 2020 followed by prebiotics & dietary fibers. Consumption of fiber offers a wide range of advantages such as bowel health maintenance, reducing cholesterol levels, and regulating blood sugar levels, among others. These benefits, along with the increasing food industry, would a key trend, boosting the growth of dietary fiber segment.
|Market size value in 2020||USD 137.2 Billion|
|Market size forecast in 2027||USD 259.7 Billion|
|Historical Period||2017 to 2019|
|Forecast Period||2021 to 2027|
|Revenue Growth Rate||CAGR of 8.5% from 2021 to 2027|
|Number of Pages||264|
|Number of Tables||433|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling, Competitive Landscape|
|Segments covered||Application, Product, Ingredient, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. Asia Pacific garnered the major revenue share of the global market in 2020. The growth of the regional market would be boosted by the launch of e-commerce portals, such as Ali-Baba and Made-in-China in Southeast Asia.
KBV Cardinal Matrix - Functional Food Market Competition Analysis
Free Valuable Insights: Global Functional Food Market size to reach USD 259.7 Billion by 2027
The major strategies followed by the market participants are Acquisitions. Based on the Analysis presented in the Cardinal matrix; Nestle S.A. is the major forerunner in the Functional Food Market. Companies such as Royal FrieslandCampina N.V., Glanbia PLC, and Danone S.A. are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Danone S.A., Glanbia PLC, Mars, Inc., Meiji Holdings Co., Ltd., Nestle S.A., Royal Frieslandcampina N.V., The Kraft Heinz Company, Hearthside Food Solutions LLC, Raisio PLC, and Sanitarium Health and Wellbeing Company.
Recent Strategies Deployed in Functional Food Market
» Partnerships, Collaborations, and Agreements:
- May-2021: Meiji Seika Pharma signed a license agreement with UPL Ltd., a global provider of sustainable agriculture solutions. In this agreement, UPL would get the exclusive rights to make, register and commercialize formulations of Flupyrimin for foliar applications in rice in Southeast Asia, which expanded the ongoing collaboration among the two companies with this compound.
- Feb-2021: FrieslandCampina formed a partnership with Cayuga Milk Ingredients, a manufacturer of dairy ingredients for the global food and nutrition industries. The partnership focuses on the production of Refit milk proteins MPI 90 and MPC 85. It would source the proteins from two farmer-controlled co-operatives combined to avail consumers, a local source of premium milk proteins from the Finger Lakes region in New York State.
- Jan-2021: Sanitarium Health Food Company partnered with The Future Food Systems Cooperative Research Centre (CRC). Under this partnership, the companies would work with UNSW food-technology specialists in CRC projects to enhance the functional features of advance plant-based protein products, ranges from its Barista dairy-free milk product line.
- Oct-2020: The Kraft Heinz Company came into a distributorship agreement with Neptune Wellness Solutions, a diversified and fully integrated health and wellness company. This agreement aimed to market and distribute Kraft Heinz's products into India, Vietnam, the Caribbean Islands and Latin America.
- Sep-2020: FrieslandCampina signed an agreement with IMCD, a leading distributor of specialty chemicals and ingredients. The agreement aimed to distribute the former company's Adult Nutrition portfolio in Indonesia.
- Jan-2020: Nestle joined hands with Burcon and Merit, two key players in the development and production of high-quality plant proteins. The collaboration would help Nestle to boost the development of nutritious and great-tasting plant-based meat & dairy substitutes with a favorable environmental footprint.
» Acquisition and Mergers:
- May-2021: Nestle Health Science came into agreement to acquire Nuun, a portfolio company of private equity firm TSG Consumer Partners. The addition of Nuun supports Nestle Health Science’s offerings of active lifestyle nutrition brands that consist of Garden of Life, Vital Proteins, Boost, and Persona, among others. Nuun is the provider of low-sugar electrolyte tablets, which easily dissolves in water.
- Apr-2021: Raisio announced the acquisition of Verso Food Oy, known for its Beanit and Harkis products. This acquisition will add support to Raisio’s strategy.
- Feb-2021: Danone signed an agreement to acquire Earth Island, the maker of plant-based products sold under the Follow Your Heart brand. This acquisition aimed to grow the company's business in plant-based beverages, yogurt alternatives and creamers. In addition, it also boosts the company's growth in North American plant-based business.
- Nov-2020: Mars, Inc. signed an agreement to acquire Kind North America, a healthy snack bar company. This acquisition will help Mars to broaden its portfolio.
- Oct-2020: Nutricia, a Danone company took over Real Food Blends, a company that makes 100% real food for people with feeding tubes. This deal helps Danone to expand its product portfolio in the market.
- Aug-2020: Glanbia Nutritionals, a subsidiary of Glanbia PLC entered into an agreement to acquire Foodarom, a custom flavor designer and manufacturer. Through this acquisition, Glanbia expanded its flavors and nutritional solutions capabilities.
- Jan-2020: Atrium Innovations, a company of Nestle Health Science acquired LivingMatrix, a US-based company and developer of a cloud-based application for personalized functional medicine. This acquisition aimed to enable Atrium to take the next steps in defining the future of customized health management.
- Sep-2019: Mars, Inc. acquired a significant majority stake in the Foodspring. Through this acquisition, Foodspring has joined and emerged as a standalone business within Mars Edge, a segment of Mars, Incorporated, which is specialized in human health and wellness via targeted nutrition.
- Feb-2019: Glanbia Nutritionals came into an agreement to acquire Watson, a Connecticut-based manufacturer and supplier of high-quality custom nutrient premix, bakery ingredient, edible film, and material conditioning solutions. This deal strengthened Glanbia’s capability set with agglomeration, microencapsulation, spray drying, micronizing, and edible film technologies.
» Product Launches and Product Expansions:
- Apr-2021: Sanitarium launched a new breakfast cereal, Weet-Bix Little Kids Essentials. This cereal is suitable for toddlers & preschoolers aged one to five years.
- Jan-2021: FrieslandCampina unveiled a line of ingredients called Biotis Immune Health Solutions, made for immune support. It is the new of three health benefit-based platforms within the Biotis brand, and the ingredients unwrap the immune support capability of dairy-based proteins & prebiotics.
- Dec-2020: FrieslandCampina launched products aiming at stress and anxiety in its Biotis Brain Health Benefits Solutions range. The D-Stress sachet and Re-lax health shot are developed on FrieslandCampina Ingredients’ galacto-oligosaccharide (GOS), a dairy prebiotic that has reportedly shown by scientific research to boost the growth of gut bacteria, which can help customers feel less stressed & anxious.
Scope of the Study
Market Segments Covered in the Report:
- Cardio Health
- Sports Nutrition
- Clinical Nutrition
- Weight Management
- Dairy Products
- Meat, Fish & Eggs
- Bakery & Cereals
- Soy Products
- Fats & Oils
- Proteins & Amino Acids
- Prebiotics & Dietary Fibers
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Danone S.A.
- Glanbia PLC
- Mars, Inc.
- Meiji Holdings Co., Ltd.
- Nestle S.A.
- Royal Frieslandcampina N.V.
- The Kraft Heinz Company
- Hearthside Food Solutions LLC
- Raisio PLC
- Sanitarium Health and Wellbeing Company
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Functional Food Market Related Reports:
How valuable will the functional food market be in the future?
The global functional food market size is expected to reach $259.7 billion by 2027.
What are the key driving factors and challenges in the functional food market?
Rising consumption of nutritive convenience food and fortified food are driving the market in coming years, however, high cost of functional food products have limited the growth of the market.
What are the major top companies in the competitive landscape?
Danone S.A., Glanbia PLC, Mars, Inc., Meiji Holdings Co., Ltd., Nestle S.A., Royal Frieslandcampina N.V., The Kraft Heinz Company, Hearthside Food Solutions LLC, Raisio PLC, and Sanitarium Health and Wellbeing Company.
Has COVID-19 impacted the functional food market?
Yes, Many consumers opt for functional foods and other related products due to their benefits. Thus, COVID-19 brought a positive impact on the global functional food market during the forecast period.
Which segment shows a high revenue share of the functional food market in 2020?
Dairy Products segment garnered the maximum revenue share of the global functional foods market in 2020, followed by the bakery and cereals segment.
Which segment shows the fastest growing market segment during the forecast period.
The prebiotics and probiotics segment would be the fastest growing segment during the forecast period.