FUNCTIONAL FOOD MARKET ANALYSIS

Market Challenges And Opportunities

Global Functional Food Market Drivers:

Growing demand for healthy food products to augment market growth

Almost two-thirds of consumers are interested in purchasing functional foods and beverages, according to recent study. Most buyers are looking for overall health benefits, and more than half want immune support, energy, or mental acuity. The good news is that these dietary supplements can provide added nutrients that are not easily obtained from traditional diets. In some cases, functional foods can even help to reduce the risk of certain diseases.

Growing instances of nutrient deficiency in body to augment market growth

Fortified functional foods are a common part of a well-rounded diet and can help prevent nutrient deficiencies, protect against diseases and promote proper growth and development. For example, while eating wild fish can reduce the risks of cardiovascular disease and cognitive decline. The addition of prebiotics and probiotics in the form of oat beta-glucans, fructans and bacteria from fermented foods may also promote digestive health and enhance immune function. In addition, medicinal mushrooms such as cordyceps and reishi are being used in functional foods to improve immune function.

Global Functional Food Market Opportunities:

Growing health awareness due to growing prevalence of chronic disease with increasing geriatric population is expected to provide significant growth opportunities. Increasing health awareness among customers and rising demand for functional foods are the major factors driving the growth of the global functional food market. Rising disposable incomes in developing economies and increasing customer interest in boosting their immunity with proper nutrition are further fueling the demand for functional foods

Manufacturers are introducing new products with functional ingredients to meet the demand for these healthy foods and beverages. They are also leveraging advanced technologies such as encapsulation technology, vacuum impregnation technology, edible coating technology, and enzymes to develop novel functional foods and beverages. For example, enzymes such as lipases are used to produce certain fatty acids that can be added as flavoring agents and antioxidant esters in functional foods. Similarly, encapsulation in probiotics allows storage at ambient temperature, increases water activity, and minimizes viability loss.

Global Functional Food Market Restraints:

Easy availability of healthier substitutes to hamper market growth

Growing popularity of healthy food supplements such as wheat flour, oat flour, rice flour and others which are high in proteins, fiber, minerals, vitamins, and carbohydrates over functional food among consumers is expected to hamper the growth of the almond flour market. These supplements are new and innovative concept of fulfilling nutrients deficiencies in human body.

Strict regulations and international quality standards

There are rule and regulations associated with various ingredients used in the food process, health claims, food hygiene labeling & packaging and others. For instance, according to the Food and Drug Administration (FDA), regulations regarding menu labeling insist on offering various information such as nutrition facts, ingredients used, common name of the products, name & address of manufacturers, and others on labels, which are sold in various supermarkets, retail stores, and bakeries. These regulations regarding various ingredients used in the bakery & confectionery products are projected to hamper the market growth.