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.
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.
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.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.