The functional food market is driven by the multivariate health benefits they have due to the rich number of micronutrients and minerals. Their vitality in disease prevention is responsible for skyrocketing demand. Apart from fruits and veggies, fermented food is considered functional. High probiotic content in these supports immune function. Food is a significant way to combat diseases. Choosing nutrition-rich alternatives is essential to control diseases. Brands have started to target the market gaps. The position in demand and supply gap.
The functional food market is a newly emerging frontier and not just about fulfilling hunger, but more about promoting well-being. Functional food ingredients have emerged as a significant food niche. Success is attributed to new product development. Consistent research coupled with the adoption of technology. The emergence of the functional food market is not limited to fads. It evolved through escalating awareness of health and nutrition.
By offering specific benefits through food, companies are attracting consumers. The modified food niche has gained exponential growth in the recent past. Growth is attributed to rising health knowledge. F&B, medicine, and retail players entered the functional food market. These players utilize their potential and gain a competitive edge. This article offers a strategic indulgence to evolution, market drivers, challenges, innovations, and growth potential from the perspective of functional food market participants.
“Global functional food market was valued at USD 233,620.18 million in 2021. This market is estimated to surpass USD 418,439.42 million by the end of 2028. The market is estimated to grow with a CAGR of 8.7% from the year 2021 to 2028.”
What Are the Driving Forces Behind the Mushrooming Functional Food Market?
Conscious Consumerism Driving Hunt for Healthy
Consumers are seeking healthy alternatives more often. This is bound to bring a tide of conversion in their buying pattern. Moreover, it will influence food consumption. Companies rightly capture this need, by providing healthy alternatives. Consumers are inclined towards the nutritional value of food. They are seeking information on functional benefits. Moreover, the mushrooming demand for functional food is attributed to rising healthcare costs. The rising health expectancy coupled with a healthy lifestyle is driving this trend.
Expanding Nutritional Psychiatry and Food Preservation Technology
In recent years, notable food science research happened. Findings helped in the development of functional food ingredients. Specific technologies leveraged by market players to prevent food quality. Micro encapsulation is the use of gases in coatings and liquid droplets in the making of food products. Advanced technology producing functional food ingredients.
Expanding nutritional psychiatry is determined to reveal the connection between food and mental health. Food food-promoting balance of bacteria influences neurotransmitters such as dopamine. The pandemic of Covid-19 has taken a toll on mental conditions. It has influenced on shift towards the Functional food market.
Food Sustainability Driving Consumer Preferences in Functional Food Market
Consumer’s concerns for the planet have been a crucial determinant of their choices. They are more interested in making sustainable choices. This pushes producer to redesign their offerings. The shift to plant-based food is seen in this context. Plant-based meat is popular for its nutritional value and no animal cruelty. All production, packaging, and distribution should be aligned with durability practices.
Navigating Through Modified Food Prospects
Functional food encompasses a wide variety. Multiple products are made by the addition of essential nutrients. Producers are improving their products through the addition of probiotics and prebiotics needed to improve digestion. Omega-3-enriched food is good for brain health. It is derived from fish fat. There is a lucrative response observed for fortified food. These are popular for the enhancement of their nutritional value. Stevia has gained positive responses from gluten-intolerant people.
The foundation of functional food lies in the selection of ingredients. The use of high-quality ingredients is essential for health benefits. These range from probiotics to anti-oxidants, and plant-based proteins.
Food scientists and nutritionists have an astonishing role here. Working together to maximize the bio proximity of functional food. Ingredients ensure they are essentially absorbed by the body. Food companies should provide clear labels and retain transparency. Inform consumers about nutritional content. Companies investing in R&D are foreseen to report well-being.
Businesses need to find additional ingredients to improve nutritional value. Solubility, stability, bioavailability, and pH level are key factors to consider while preparing formulators. Functional food could be in the form of powder, mixes, and liquids. Liquid segments are foreseen to gain a major share in the coming years.
Food businesses require applying a new managerial approach. They need to identify essential technologies suitable to producing conditions. Cross-industrial cooperation is expected to grow in the future between medicine and food companies.
What’s the Contribution of Key Functional Food Market Players?
Big companies are specializing their production within functional niches. Dairy companies are offering probiotic yogurts. Cereal companies are offering vitamin-fortified breakfasts. Beverage companies are exploring sugar-free drinks. US soda companies use stevia as a sweetener for drinks. Furthermore, allulose could be a great replacement for sugar, as it’s demanded in bakery products. Also used in desserts, beverages, and bakery products. The proper viscosity of allulose is ideal for ice creams and other sweets.
Start-ups could bring the next tide of change. They will drive innovation in the functional food market. Their innovation and technology-driven approach can address specific health concerns. Research institutes and academic centers will determine the growth of the functional food market. These institutes will validate functional claims made by companies foreseen to remain indispensable.
The secret sauce to achieve lucrative ROIs in the functional food market depends on appearance, taste, and prices. Producers’ commitment to fulfil health claims given on their products will influence their customer loyalty. Companies’ contribution in remaining fair about the physiologic impact of food on humans will be a brand differentiator.
Brands should avoid exaggerated appearances. Price, quality, and functional benefits are key factors that influence consumer purchases. The food industry considers many variables while developing functional food products such as stability, chemical, sensory acceptance, and convenience.
Secret Sauce for Functional Food Market Players
Nutraceutical Market- A Competitive Niche in the Functional Food Market
Nutritional supplements and medically formulated nutraceuticals are likely to hit more shelves in the coming years. In preventive healthcare, nutraceuticals are likely to play a crucial role in the coming years. Food, technology, and medicine have experienced convergence that pushed pharma companies to compete in nutraceuticals. Anti-aging, skin care, digestive health, and energy nutraceuticals are estimated to remain key segments in the nutraceutical
Mergers and Strategic Partnerships to Remain Indispensable
Technology, compliance, supply chain, and product strategy are the bullseye for companies. These will determine their long-term success. Mergers among pharma and food brands make sense but remained underused to date. These companies can unlock new revenue pockets and lower their R&D cost. Food companies bring years of market distribution experience. Medicine brands have greater research capacity to generate new products.
Plant-based Alternative Protein- High ROIs in Functional Food Market
Industry experts proclaim that innovation is the key to unlocking success. Innovative food brands are likely to remain competitive. Growing veganism flavors functional food growth. The pea protein market is anticipated to gain traction due to a rise in demand for pea protein and
There is a rise in the risk of chronic diseases. Cancer is related to the consumption of red meat. Pea protein is extracted from yellow peas. The pea protein might be that protein enrichment into the diet. It makes one feel full for a longer time. This source of protein is good for treating high blood pressure and obesity. The pea protein is made with amino acids. These can be a good replacement for red meat dishes.
Lucrative Regional Market Spaces
Asia Pacific regional functional food market holds a major share in 2020. It is estimated to remain dominant in the coming years. Rising consumer interest coupled with a propelling sense of nutritional food is estimated to remain in favor of F&B brands.
In the functional drinks market, North America is dominant with a major market share. Accounting for USD 42,744 million in 2021. Europe is expected to surpass about 20% of market share. Low-carb, zero-sugar, low-calorie beverages, and food products are foreseen to gain traction in the food industry. Increasing adaptation of plant-based diets in Europe is likely to remain a key market for functional food companies.
Demand for energy products is high from the young population of Europe. Healthy lifestyles in this region are an encouraging factor for F&B brands to redirect their investments into new products.
Functional food is food for the future. This trend will continue for long as technology and food science is evolving. Consumers are informed and willing to take responsibility for their choices and well-being. Functional foods are ideal for addressing health needs. Immunity support is likely to remain a key priority in the functional food market in the coming years. Start-ups and specialized companies are expected to quickly respond to emerging functional food trends.
References-
Forbes- What Are Functional Foods?
Forbes- Supplements complementing functional food are attracting investors’ interest
National Library of Medicines- Clinical Nutrition: 7 functional foods more than just nutrition
