Functional Foods Market Research Report and Outlook by 2028

The functional foods sector was valued at approximately US$ 233,620.18 million in 2021 and is anticipated to grow to US$ 418,439.42 million by 2028. This market is expected to expand at a compound annual growth rate (CAGR) of 8.7% from 2021 through 2028.

Functional foods are those that have been modified to offer health benefits beyond basic nutrition. While they do not cure diseases, they play a significant role in reducing the risk of serious health issues by enhancing overall well-being through the provision of essential nutrients such as minerals and proteins. Incorporating functional foods into one?s diet can lead to improved physiological health. These foods are fortified with beneficial nutrients, enhancing their basic nutritional profile to deliver various health advantages. Examples of these nutrients include amino acids, vitamins, minerals, proteins, fatty acids, and prebiotics. The rising awareness among consumers regarding health and nutrition has led to a surge in the popularity of functional products. In the current climate, particularly in light of the COVID-19 pandemic, there is a heightened focus on boosting immunity, further propelling the growth of the functional foods market.

The functional foods market is categorized by product type into several segments: bakery and confectionery, dairy and frozen desserts, sweet and savory snacks, breakfast cereals, and others. Among these, the dairy and frozen desserts segment held the largest market share in 2020. Dairy products, which include items made from milk such as butter, cheese, ice cream, yogurt, and condensed or dried milk, are increasingly favored by consumers for their role in promoting healthy bones and maintaining a balanced weight. Yogurt, in particular, is gaining traction as a functional food due to its rich nutritional profile and numerous health benefits. Various fruits, including peaches, cherries, apricots, papaya, and blueberries, are being incorporated into yogurt to enhance its flavor and nutritional value.

Geographically, the functional foods market is divided into North America, Europe, Asia Pacific (APAC), The Middle East & Africa (MEA), and South & Central America (SAM). In 2020, the Asia Pacific region dominated the global functional foods market and is projected to experience the fastest growth during the forecast period. The shift in lifestyle preferences within the Asia Pacific region is significantly influencing the growth of the functional foods market, as consumers increasingly seek products that offer functional benefits. With a growing awareness of health issues, the demand for functional food products continues to rise.

Furthermore, the Asia Pacific Observatory on Health Systems and Policies indicates that many countries in this region will face rapidly aging populations in the coming decades. A significant number of deaths in Asia Pacific are attributed to chronic noncommunicable diseases (NCDs), particularly in Southeast Asia and the Western Pacific. Major NCDs include cardiovascular diseases, diabetes, cancers, and chronic respiratory conditions. The rising incidence of chronic diseases has intensified the focus on personal health and wellness, leading consumers to seek food products that provide specific health and nutritional benefits. This trend supports a shift in consumer lifestyles. The Functional Food Center of the United States (FFC) has noted that functional foods have scientifically validated benefits for enhancing overall health and mitigating the effects of chronic diseases. These foods are also rich in essential nutrients that can aid in the prevention of chronic illnesses. Consequently, the increasing prevalence of chronic diseases is driving the demand for functional foods in the region.

Key players in the functional foods market include Unilever, Clif Bar & Company, Laird Superfood, Abbott, Danone S.A., General Mills, Inc., Hildur, Nestl?, Kellogg Company, and Good Source Foods, LLC.

The overall size of the global functional foods market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Additionally, numerous primary interviews were conducted with industry participants to validate the findings and gain deeper analytical insights. Participants included industry experts such as vice presidents, business development managers, market intelligence managers, national sales managers, and external consultants, including valuation experts, research analysts, and key opinion leaders specializing in the functional foods sector.