FUNCTIONAL FOOD MARKET ANALYSIS

Functional Food MarketSize and Trends

The global functional food market size was valued at US$ 191.04 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 6.9% owing to the rising awareness of the benefits of consuming healthier foods. The growth of the elderly population globally is another major factor driving the functional foods market growth. In addition, the rise in fatal accidents related to intestinal inflammation is further bolstering the demand for functional foods.  A rise in disposable incomes and a shift in consumer preference toward natural and healthy foods are further propelling the growth of the global functional foods market. The market is also driven by a rise in the incidence of chronic diseases, such as cardiovascular diseases and diabetes, among others.

Figure 1. Global Functional Food Market, By Region 2023

Global Functional Food Market Trends:

Increasing adoption of business growth strategy among key players

Major players in the global functional foods market are adopting a variety of developmental strategies to expand their reach and profitability.  For instance, in December 2019, International Flavors and Fragrances Inc. announced a strategic partnership with DuPont’s nutrition and bioscience division to develop high-value functional ingredients. Other companies are focusing on investing in their manufacturing capabilities to cater to the growing demand for functional foods.

Growing popularity of immunity-boosting food

Immunity-boosting products gained popularity during the COVID-19 pandemic, which drove the demand within the global functional foods market. The customers were increasingly scared and were relying on various food and beverage products that promised to boost their immune system and reduce disease risk.