Functional Food Market

Global Functional Food Market Size (2024 to 2032)

The global functional food market size is at US$ 201.98 million in 2024, and it is predicted that it will reach a valuation of US$ 339.33 million by the end of 2032 with an annual expansion rate (CAGR) of 6.70% between 2024 and 2032.

Functional foods can be described as modified foods that claim to improve health. It does not cure disease, but it helps reduce the risk of fatal diseases by improving physical health with the provision of essential nutrients and protein. Functional foods are highly nutritious foods with powerful health benefits. Functional foods in the diet add benefits to the physiological condition of an individual. Some of the functional foods are dietary supplements and diets, designer foods, herbal products, and processed foods such as soups, cereals, and beverages. These foods are rich in nutrients and other substances that promote health. It prevents nutritional deficiencies, protects against a variety of diseases, offers proper growth and development, and improves overall health. With the increasing prevalence of chronic diseases, consumers are turning to healthier food consumption, which is driving the growth in the global functional foods market.

CURRENT SCENARIO OF THE FUNCTIONAL FOOD MARKET

The food industry is experiencing an escalating demand for health-driven products comprising functional elements. Like fermented foodstuffs and those infused with bioactive compounds, promoting the necessity for developing new offerings. Established functional foods that include important nutrients, good bacteria, and various biologically active compounds can regulate metabolic pathways and encourage health. Currently, the market is in a state of progressive growth, with a rising demand and focus on sustainability and health. In the last decade, even after gaining traction of natural and organic goods, wellness foods have garnered considerable public attention. The agri-food sector is eager to publicize these nutritional offerings for their ability to foster healthy lifestyles or ensuring wellness.

The latest advances in this market emphasizes the fortification, enhancement, and recovery of nutrients and bioactive ingredients to boost their health advantages. But, the design of functional items  can only be used when food by-products embrace sustainable and fitness-centric approach to create novel formulations and ingredients. This market and nutraceuticals signify a shift from traditional fare to new sphere introducing the concept of nourishment. Such significant change in nutritious philosophy has led to a dedicated exploration of this diverse realm, leading to a thorough examination of their composition, the complex mechanisms for working, and the strong scientific evidence for validating their possible implications on human health.

MARKET DRIVERS

Increasing consumer interest and a greater understanding of how a proper diet can boost immunity are some of the key factors driving the growth of the global functional foods market.

Additionally, market growth is driven by the increased disposable income and augmented demand for improved food and beverage products. Among adult consumers, the elderly population is believed to benefit from functional foods due to age-related health problems. Therefore, a growing global elderly population is driving business growth. Also, continued population growth will shift the focus from high-consumption regions like the United States and Japan to more densely populated regions like China and India. These changes will provide tremendous growth opportunities for the functional foods market in the near future. Functional ingredients like omega-3s and probiotics are widely used in fish oil and yogurt to reduce the risk of cardiovascular disease and improve the quality of the gut microbiota. These trends are expected to energize the market during the forecast period. Increasing demand for fortified and nutritional food additives is supposed to drive growth. Food and beverage manufacturers are enhancing their product offerings with nutritional additives such as fiber, omega-3 fatty acids, minerals, and vitamins. The main motivation for incorporating the aforementioned additives in the food and beverage industry is to increase the nutritional content of foods. Functional foods provide certain health benefits beyond daily nutrient intake, such as enhancing immune system strength, improving heart health, mental energy, cholesterol control, improving bone health, and other benefits related to eye health and vision. Increasing demand for fortified nutrients and food additives is likely to drive the functional food market size. Food and beverage manufacturers use dietary ingredients like omega-3 fatty acids, fiber, vitamins, minerals, and other fortifying agents in their product offerings. Consumers are becoming more health conscious and paying more attention to their lifestyle and healthy diet. Due to age-related health problems, the elderly population is believed to benefit from functional foods. Therefore, an increase in the global elderly population is driving the growth in the size of the functional food market.

Increasing disposable income resulting from economic development in developing countries leads to augmented consumption of functional foods, increasing the size of the market. Another important factor driving demand is the rising consumer awareness of gut health. This is a response to cases of death from intestinal inflammation among other intestinal diseases. Consuming probiotics helps fight bad bacteria in such cases, supports human immunity, and improves intestinal health. Of the wide variety of products available on the market, probiotic yogurt is the most consumed product with proven benefits for digestive health. In addition, with the growing trend of healthy diet patterns and increased consumer health awareness, numerous additional opportunities are being created for future market growth. The growth rate of the elderly population, the unhealthy lifestyle of millennials, and the growth rate of chronic diseases from childhood are important factors driving the demand for functional foods. As fatal accidents from intestinal inflammation increase, awareness among people related to intestinal health is another aspect supporting the growth of the market.

MARKET RESTRAINTS

Numerous food safety regulations and the limited health benefits of functional foods compared to the number of benefits claimed by vendors are certain factors that can slow the growth of the global functional foods market.

Rules or directives in this market actually vary substantially from nation to nation. The absence of clear and universal regulations can cause doubt and present problems for producers. Likewise, Japan, thus far, stands as the only economy with a particular legal definition and approval procedure for these foods. On the other hand, Canada and the United States have made efforts to define this without a specific legislative framework. In Europe, the European Union has enacted an operational definition, although it doesn’t have a comprehensive directives or rules across the region.

This regulatory uncertainty can also result in scepticism and confusion among customers, weakening the trustworthiness of this market. In contrast, deceptive or false health claims can establish wrong perceptions regarding the wellness advantages of selected food items and can give rise to unhealthy dietary options. Hence, a clean and distinctly outlined regulatory structure is important for the achieving the desired market growth.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Functional Food Market Analysis By Ingredients

Based on the ingredients, the vitamin segment is expected to dominate the functional foods market demand in the next six years. Greater awareness of the amazing benefits associated with taking vitamins, such as lowering cholesterol levels, controlling blood sugar, and helping to maintain overall health, is a major contributor to segment growth. All these benefits provided by vitamins have promoted the demand of this segment. Moreover, cereals like corn, oats, and wheat bran are among the key enhanced nutrition foods category, contributing to the increase in the segment’s market share. Along with fiber, these cereals are abundant in crucial vitamins and minerals.

The prebiotic and probiotic segments are foreseen to witness a higher CAGR during the conjecture period. They offer a variety of health benefits, such as reducing the risk of cancer and improving the absorption of calcium and magnesium. All these benefits encourage end users to choose foods based on prebiotics.

Global Functional Food Market Analysis By Application

Based on the application, the heart health sector is determined to grow at a faster CAGR over the next several years as the demand for functional foods increases among people suffering from congestive heart failure, cardiovascular disease, congenital heart defects, and hardening of the arteries. Additionally, segment demand will increase as interest in joint health, weight loss, and bone and muscle gains rise. Further, the surging curiosity about health-promoting foods is associated with the increase in chronic diseases like obesity, diabetes, and heart conditions, which usually happen due to lifestyle options and poor diet. Apart from this, segment’s market share is expected to  further rise owing to the growing consciousness about cardio health among young and middle-aged people. For instance, according to a study published in the PMC PubMed Central, middle-aged adults have the highest rate of awareness of minimum one lifestyle risk factor, i.e. 47.8 per cent, trailed by young adults with 32.1 per cent, and older persons at last with 20.1 per cent.

Global Functional Food Market Analysis By Product

The dairy sector is estimated to experience a higher CAGR over the coming years. The mounting demand for dairy products such as yogurt, dairy drinks, and spreads is one of the main drivers of the increase in demand in this sector. This product is rich in compounds and is often added as an ingredient in food preparation. On the other hand, the functional beverages segment is one of the swiftly growing categories of this market. To some extent, it is because of their perceived advantages for overall wellness and the mitigation of chronic illnesses. In addition, the segment’s market size is also expanding due to customer interest in these beverages which is fuelled by their progressive recognition of the dietary effect on health, stressful lives that make wholesome eating more tough and the growing accessibility of ready-to-eat or easy-prepare functional foods.

REGIONAL ANALYSIS

North America and Europe are the main markets for functional foods. Increasing consumer interest and a better understanding of the immune-boosting properties of proper diet and eating habits are some of the key factors driving the growth of vitamin and mineral-rich foods and beverages. Asia Pacific region is expected to lead the global functional foods business over the conjecture period. This is due to the rate of population growth in Asian countries, coupled with the increase in disposable income and the higher consumption of processed foods. With the growing awareness of health and fitness in developing countries, the rapid consumption of processed foods is a major factor promoting the regional market. The area is characterized by growing concern for food safety among consumers, influencing consumer behavior and driving growth accordingly. Improving food is supposed to be a key approach for governments to address growing concerns about malnutrition and poverty, which will contribute significantly to industry growth.

KEY PLAYERS IN THE GLOBAL FUNCTIONAL FOOD MARKET

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

Recent Happenings in the Market

In January 2025, Marks & Spenser introduced its latest YAY! Mushrooms drinks portfolio and Brain Food Range. The marketing campaign for these goods started on the same date and will run all over several platforms, comprising digital media and TV, throughout January.

DETAILED SEGMENTATION OF THE GLOBAL FUNCTIONAL FOOD MARKET INCLUDED IN THIS REPORT   

This research report on the global functional food market has been segmented and sub-segmented based on ingredient, product, application, & region.   

By Ingredient

• Dietary Fibers
• Carotenoids
• Minerals
• Fatty Acids
• Vitamins
• Prebiotics & Probiotics
• Others

By Product

• Dairy
• Fruits & Vegetables
• Beverages
• Others

By Application

• Weight Management
• Sports Nutrition
• Digestive Health
• Immunity
• Cardio Health
• Clinical Nutrition
• Others

By Region 

• North America 
• Europe 
• Asia Pacific 
• Latin America 
• Middle East and Africa