02 May 2019
The global functional food market will grow to be worth $275bn by 2025, a new forecast says.
The global functional foods market size is expected to be worth $275.77bn by 2025, with annual growth expected to reach almost 8% each year, according to a new market forecast report published on ResearchAndMarkets.com, which predicts where the market will be from 2019-2025.
The key drivers of growth for the functional food market include demand for nutritional and fortifying food additives. Functional ingredients such as omega-3 fatty acids and probiotics are being increasingly consumed in yogurts and fish oils to reduce the instances and risks associated with cardiovascular diseases while improving the quality of intestinal microflora. This behaviour is expected to increase during the forecast period.
Additionally, the increased consumer awareness of gut health is expected to drive significant expansion in the functional food market, as more discover the benefits of probiotics on gut health and the impact that can have for their health overall.
Other key findings include:
- In terms of ingredient, vitamins emerged as the largest segment in 2018, registering a revenue of USD 36.16 billion. The segment is expected to expand at a CAGR of 7.7% over the forecast period
- In terms of product, soy is expected to register the fastest CAGR over the forecast period. Growing popularity of dairy products such as milk drinks, spreads, and yogurts across the globe has contributed significantly to the growth of this segment
- In terms of application, cardio health emerged as the largest segment in 2018 and is expected to maintain its pole position over the forecast period. High prevalence of cardiovascular diseases and reported cases of deaths pertaining to the same have increased the application of functional food products in this segment
- Asia Pacific is expected to witness the fastest growth over the forecast period. Led by countries such as China, India, and Japan, the functional foods market is driven by various government initiatives to promote healthy lifestyle
- The market represents a highly competitive landscape with a sizable number of players sharing the market space. The key players have been focusing on global expansion while strengthening their positon in domestic markets
- The key market participants include BASF SE; Cargill; General Mills Inc.; Coca-Cola Co.; Standard Functional Foods Group Inc.; GFR Pharma; and KFSU among others.
To access the report, click here