Functional Food & Beverage Market 2025 | Health Trends, Rising Demand, Investment Prospects

Market Size and Growth

Functional Food & Beverage Market Size reached US$ 364.98 billion in 2024 and is expected to reach US$ 846.58 billion by 2032, growing with a CAGR of 11.09% during the forecast period 2025-2032.

Functional Food & Beverage Market report, published by DataM Intelligence has released its latest in-depth analysis on the global Functional Food & Beverage Market, delivering a detailed overview of regional growth patterns, market segmentation, CAGR, and financial performance among leading industry players. The report offers readers a clear snapshot of the current market value and volume, alongside an exploration of emerging opportunities and ongoing developments. By shining a spotlight on key market drivers and highlighting the evolving industry landscape, the report equips businesses and stakeholders with strategic insights to identify new growth avenues and navigate future market dynamics confidently.

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Functional Food & Beverage refers to products that provide health benefits beyond basic nutrition by containing added bioactive compounds, vitamins, minerals, probiotics, or plant extracts. Designed to support wellness areas such as immunity, digestion, heart health, and energy, these products combine taste with targeted health functions. Popular examples include probiotic yogurts, fortified juices, energy drinks, and plant-based beverages, making functional food and beverages a fast-growing segment in the health-conscious consumer market.

Key Players:

-> Danone S.A., Nestle S.A., General Mills Inc., Glanbia Plc, Tyson Foods Inc., PepsiCo Inc., Hearthside Food Solutions LLC, Celsius Holding, Inc., Arla Foods amba and The Coca-Cola Company.

Key Development:

United States: Functional Food & Beverage Industry Updates

✅ In September 2025, PepsiCo announced the launch of Pepsi Prebiotic Cola, its first-ever prebiotic soda. Available in Original and Cherry Vanilla flavors, each 12-ounce can contains 30 calories, 5 grams of cane sugar, and 3 grams of prebiotic fiber, aiming to support digestive health while maintaining classic cola taste.

✅ In July 2025, Campbell's Co announced it will eliminate synthetic food dyes from its products starting in fiscal 2026. This move aligns with the broader industry trend toward natural ingredients and responds to changing consumer preferences for health-conscious products.

✅ In July 2025, Kraft Heinz announced it will split into two separate companies, with one entity focusing on condiments and seasonings, and the other on processed foods. This restructuring responds to shifting consumer behavior favoring less processed foods and new dietary trends.

✅ In March 2025, PepsiCo acquired Poppi, a low-calorie, probiotic-infused soda brand, for $1.95 billion. This acquisition reflects PepsiCo's strategic move into the growing functional beverage market, aligning with consumer demand for healthier alternatives to traditional sodas.

Japan: Functional Food & Beverage Industry Updates

✅ In July 2025, Japan's updated food policy emphasized the promotion of functional foods and beverages, including those with Food with Function Claims (FFC). This policy aims to support the growth of the functional food sector by providing a framework for health claims and product labeling.

✅ In July 2025, Kirin Holdings announced its Vision 2027 strategy, focusing on becoming a global leader in creating value through functional food and beverage innovations. The strategy includes investments in health-oriented products and expanding the company's functional beverage portfolio.

✅ In July 2025, Asahi Group Holdings introduced a new line of plant-based functional beverages, aligning with the growing consumer demand for sustainable and health-conscious products. The new line includes beverages formulated with functional ingredients targeting digestive and immune health.

Growth Forecast Projected:

The Global Functional Food & Beverage Market is anticipated to rise at a considerable rate during the forecast period, between 2025 and 2032. In 2023, the market is growing at a steady rate, and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon.

Research Process:

Both primary and secondary data sources have been used in the global Functional Food & Beverage Market research report. During the research process, a wide range of industry-affecting factors are examined, including governmental regulations, market conditions, competitive levels, historical data, market situation, technological advancements, upcoming developments, in related businesses, as well as market volatility, prospects, potential barriers, and challenges.

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Key Segments:

By Type: Functional Cereal & Grains, Functional Dairy Products, Functional Bakery Products, Functional Fats & Oils

By Ingredient: Probiotics, Prebiotics, Proteins & Amino Acids, Vitamins, Minerals, Dietary Fibers, Omega-3 & Fatty Acids, Others

By Distribution Channel: Supermarkets/Hypermarkets, Convenience Stores, Online Retail, Others

By Application: Immunity, Digestive Health, Cardiovascular Health, Weight Management, Sports Nutrition, Clinical Nutrition, Others

Regional Analysis for Functional Food & Beverage Market:

⇥ North America (U.S., Canada, Mexico)

⇥ Europe (U.K., Italy, Germany, Russia, France, Spain, The Netherlands and Rest of Europe)

⇥ Asia-Pacific (India, Japan, China, South Korea, Australia, Indonesia Rest of Asia Pacific)

⇥ South America (Colombia, Brazil, Argentina, Rest of South America)

⇥ Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of Middle East & Africa)

Benefits of the Report:

Chapter 1: Sets the stage by outlining the report's coverage, summarizing key market segments by region, product type, and application. Presents a snapshot of market sizes, growth potential across segments, and anticipated industry evolution both short and long term.

Chapter 2: Highlights pivotal market insights and uncovers the most significant emerging trends driving change within the industry.

Chapter 3: Offers an in-depth look at the competitive landscape among Functional Food & Beverage producers, including revenue shares, strategic moves, and recent mergers and acquisitions.

Chapter 4: Presents comprehensive profiles of the market's key players, delving into details such as revenue, profit margins, product portfolios, and company milestones.

Chapters 5 & 6: Analyze Functional Food & Beverage revenue at both regional and country levels, providing quantitative breakdowns of market sizes, growth opportunities, and development prospects worldwide.

Chapter 7: Focuses on different market segments by type, examining their individual sizes and potential, guiding readers toward high-impact, untapped market areas.

Chapter 8: Explores segmentation by application, evaluating industry growth potential in various downstream markets and pinpointing promising sectors for expansion.

Chapter 9: Provides a thorough review of the industry's supply chain mapping out both upstream and downstream activities.

Chapter 10: Concludes with a summary of the report's key findings and highlights the most critical takeaways for industry stakeholders.

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What is the current size of the Functional Food & Beverage Market?

A: In 2024, the Functional Food & Beverage Market was valued at US$ 364.98 billion, reflecting its strong industry presence.

Q2: How large is the Functional Food & Beverage Market expected to be by 2032?

A: By 2032, industry forecasts suggest the Functional Food & Beverage Market will grow to around US$ 846.58 billion, demonstrating significant expansion.

Q3: What is the growth rate of the Functional Food & Beverage Market?

A: The market is projected to expand at a compound annual growth rate (CAGR) of 11.09% during the forecast period from 2025 to 2032.

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