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Functional Foods Market: Opportunity Assessment Research Study 2016 - 2024

Functional Foods Market: Opportunity Assessment Research

Global Functional Foods Market: Overview

In the past few years, the global functional foods market has experienced innovation and economic expansion owing to rising consumer awareness regarding their health and nutritional benefits. Functional foods are the medicinal foods that are helpful in preventing diseases, enhancing health, and reducing the healthcare costs.

The demand for functional foods is higher in developed countries. Consumers in developed countries are turning towards functional foods and drinks in order to address perceived nutritional shortfalls. With a valuation of US$8.62 bn, the U.S. was the leading market for functional foods in 2015. According to a survey by the National Center for Biotechnology Information (NCBI) in 2014, nearly 90% of American adults acknowledged the benefits of functional foods.

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The report provides an in-depth analysis of the global functional foods market. It does so by offering qualitative and quantitative insights into its dynamics, application segmentation, and competitive landscape. Primary and secondary resources have been taken into account while compiling this study on the functional foods industry. The report also sheds light on the estimated trajectory that each market player is likely to experience during the forecast period.

Global Functional Foods Market: Drivers and Restraints

The rising prevalence of chronic diseases is prompting consumers to shift towards healthier food consumption. The increasing consumer interest and growing understanding of how a proper diet can enhance immunity are some of the key factors driving the growth of the global functional foods market. Among adult consumers, geriatric population is believed to benefit from functional foods due to age-related problems pertaining to health. Therefore, the rising global geriatric population is bolstering the growth of the market. Moreover, the rising disposable income and increasing demand for fortified food and beverage products are leading to increased uptake of functional foods, thereby propelling the growth of the market.

Although the functional foods product sales have and will continue to rise at a brisk rate, the growth of the market is hampered due to economic issues. The high prices of several products are limiting their adoption. In addition, the global economic downturn is impelling consumers to switch to cheaper groceries. Furthermore, research into consumer perceptions of these products and their associated health claims is limited. Another factor restraining the demand for functional foods is food safety concerns and regulations. These factors, collectively, are impeding the growth of the market. Nevertheless, sustained population rise will lead to a shift of focus from high consumption areas such as the U.S. and Japan to high-population regions such as China and India. This shift is likely to offer immense growth opportunities for the functional foods market in near future.

Global Functional Foods Market: Key Growth Areas

Based on application, the market is segmented into confectionery, fortified dairy products, bakery and cereals, frozen and chilled food, and functional drinks. The fortified dairy products segment is expected to witness substantial growth owing to the rising popularity of probiotic yogurt drinks in developed countries and the increasing dairy activities in developing countries. The growth of the functional drinks can be attributed to the increasing demand for high-performance drinks in sports and growing consumption of soy milk worldwide. The bakery and cereals segment is likely to flourish owing to growing number of cereal-based products being marketed as an immunity-buster. The rising disposable income is augmenting the growth of the confectionery segment.

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Companies Mentioned in the Report

Unilever, Sanitarium Health & Wellbeing Company, Royal FrieslandCampina, Red Bull GmbH, Raisio Group, PepsiCo Inc., Ocean Spray Cranberries Inc., Nestlé, Murray Goulburn, Meiji Group, Mars Inc., Kraft Foods Inc., Kirin Holdings, Kellogg Company, Danone, GlaxoSmithKline Company, Glanbia Plc., General Mills Inc., Dr Pepper Snapple Group, Dean Foods, The Coca-Cola Company, BNL Food Group, Arla Foods, and Abbott Laboratories.

About Us – Transparency Market Research (TMR) is a next-generation provider of syndicated research, customized research, and consulting services. TMR’s global and regional market intelligence coverage includes industries such as pharmaceutical, chemicals and materials, technology and media, food and beverages, and consumer goods, among others

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