Global Industry Analysts Predicts the World Functional Foods and Drinks Market to Reach $218.3 Billion by 2026
SAN FRANCISCO, March 25, 2022 /PRNewswire/ — A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, today released its report titled “Functional Foods and Drinks – Global Market Trajectory & Analytics”. The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.
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Edition: 16; Released: February 2022
Executive Pool: 32744
Companies: 317 – Players covered include Abbott Nutrition; ABF Ingredients, Ltd.; Amway Corporation; Archer Daniels Midland Company; Arla Foods amba; BASF SE; Ceapro, Inc.; Celsius Holdings, Inc.; Coca-Cola Co.; Monster Beverage Corporation; CytoSport, Inc.; Daflorn Ltd.; Dali Foods Group Co., Ltd.; Danone SA; Del Monte Pacific Limited; Keurig Dr Pepper; General Mills, Inc.; Glanbia Plc; Glanbia Nutritionals Limited; MaxiNutrition; GNC Holdings, Inc.; Hangzhou Wahaha Group Co., Ltd.; Herbalife International, Inc.; Kellogg Company; Meiji Holdings Co., Ltd.; Natural Products, Inc.; Nestlé S.A.; Otsuka Pharmaceutical Co., Ltd.; PepsiCo Inc.; The Quaker Oats Company, Inc.; Post Holdings, Inc.; Dymatize Enterprises, LLC; Rockstar Inc.; Royal FrieslandCampina N.V.; DMV International BV; Suntory Holdings Limited; TC Pharmaceutical Industries Co., Ltd.; The Hain Celestial Group, Inc.; Unilever plc; Valio Ltd.; Yakult Honsha Co., Ltd. and Others.
Coverage: All major geographies and key segments
Segments: Type (Beverages, Dairy Products, Cereals & Grains, Snacks, Other Types); Ingredient (Dietary Fibers, Vitamins, Minerals, Carotenoids, Fatty Acids, Prebiotics & Probiotics, Other Ingredients)
Geographies: World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Rest of Europe; Asia-Pacific; Australia; India; South Korea; Rest of Asia-Pacific; Latin America; Argentina; Brazil; Mexico; Rest of Latin America; Middle East; Iran; Israel; Saudi Arabia; UAE; Rest of Middle East; Africa.
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Global Functional Foods and Drinks Market to Reach $218.3 Billion by 2026
Functional foods and beverages are being more widely accepted and becoming a part of everyday life. Emerging markets are expected to witness accelerated year-on-year growth as consumers increasingly adopt food and beverage products containing functional ingredients such as omegas, probiotics, minerals, and vitamins as a means of compensating for the nutritional gaps, if any, in their routine diets or just to boost their health and wellbeing. This establishes the trend towards fortified foods and beverages, and more functional offerings with reduced sugar, salt, and fat. Future growth of the market is expected to be driven by growing effectiveness of functional foods, drinks and their active ingredients in enabling life without drugs amidst consumers grappling with the challenge of living (and eating) healthily in an unhealthy modern world. Robust demand for mineral and vitamin fortified drinks, sports and energy drinks; high protein drinks, drinks promoting digestive health, drinks containing antioxidants, and drinks with lighter amounts of ingredients represent another important growth driver. Major factors that are poised to benefit market expansion in the near term include rising focus on foods with immunity boosting ingredients, functional and sports nutrition foods and beverages; strong demand for digestive health and wellness; rising interest in fermented food and protein-fortified products; and growing adoption of plant-based protein and naturally functional products. Millennials inclination towards fitness and the ensuing focus on functional foods and drinks; huge untapped potential offered by infant/children’s functional nutrition, and upward trend in demand for water that is tapped from fruits and their trees such as coconut water, maple water, birch water, cactus water, artichoke water, etc., are also expected to aid market growth in the coming years.
Amid the COVID-19 crisis, the global market for Functional Foods and Drinks estimated at US$173.7 Billion in the year 2022, is projected to reach a revised size of US$218.3 Billion by 2026, growing at a CAGR of 6.3% over the analysis period. Beverages, one of the segments analyzed in the report, is projected to record a 7.2% CAGR and reach US$83.2 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Dairy Products segment is readjusted to a revised 6% CAGR for the next 7-year period. The perception that energy products contain artificial ingredients or elevated sugar content, is driving consumers demand for healthier, organic, natural and better-for-you (BFY) options. The apparent benefits provided by BFY beverages are leading to many consumers seeking BFY traits in energy drinks category. There is also increasing consumer interest in energy drinks with premium, natural and more specialized ingredients and improvements related to additional health benefits. Consumers increasing preference for functional drinks, for instance kombucha, with digestive benefits, improved vitamin waters and juices and antioxidant-containing teas indicate that energy drinks market is poised for introduction of energy beverages with greater hybrid qualities that include improved health benefits. Highest consumer interest is visible for drinks with probiotics and antioxidants, providing strong opportunities for introduction of products with the traits.
The U.S. Market is Estimated at $59.8 Billion in 2022, While China is Forecast to Reach $27.6 Billion by 2026
The Functional Foods and Drinks market in the U.S. is estimated at US$59.8 Billion in the year 2022. China, the world`s second largest economy, is forecast to reach a projected market size of US$29.8 Billion by the year 2026 trailing a CAGR of 10.3% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 4.3% and 5.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.4% CAGR. While the US remains the leading market for functional foods and drinks globally, regions including Eastern Europe and Asia are making strong contributions. There is a strong consumer demand for organic foods and drinks and free-from products across developing countries. The demand for functional foods and drinks in the US is expected to witness substantial growth in the coming years, thanks in part to the rising health consciousness, and the country’s unified, aggressive stand to combat growing levels of obesity and other disorders. Developing markets are expected to pitch in to drive future growth in both production and consumption of functional foods and drinks, given the rapid pace of development of food and beverage, pharmaceutical and nutritional industries in BRIC nations, Mexico, Poland, and South Korea. Also, the perceived status of functional foods and drinks is changing among consumers due to its proven healthcare benefits. Other factors driving demand in these regions include economic prosperity, consumer disposable income, and rising production activities.
Cereals & Grains Segment to Reach $48.1 Billion by 2026
The functional cereals market is growing at a rapid rate, especially in the US, owing largely to a growing number of cereal products targeted at heart health. Breakfast cereals are the dominant sub-segments in the cereals and grains market while breads occupy a relatively minor share in the market. Burgeoning baby boomer population holds enormous promise for the market, as they concentrate more on healthy diet. Retailers are also targeting young consumers, aged between 10 and 27, with a variety of flavors to meet diverse tastes and attract more number of consumers. In the global Cereals & Grains segment, USA, Canada, Japan, China and Europe will drive the 5.4% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$29.6 Billion will reach a projected size of US$42.7 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$3.5 Billion by the year 2026, while Latin America will expand at a 5.2% CAGR through the analysis period.
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