The growing consumer awareness regarding healthy diet patterns, along with the increasing rate of chronic diseases such as diabetes and heart attacks, are the major factors that are surging the demand of the functional foods market.
The rising rate of the geriatric population, unhealthy lifestyle of the millennials as well as the post-millennials and the growing rate of chronic diseases since a very early age are the major factors that are contributing to the growth of the functional foods market. The increasing health consciousness among the consumers, followed by the emerging trend of healthy diet patterns are further paving the way for the growth of the market over the coming years. Additionally, the growing awareness among people regarding the gut health driven by the increasing fatal incidents due to the intestinal inflammation is another factor that is responsible for the expansion of the functional foods market size.
The rising purchasing power of the consumers, along with the increasing healthcare expenditure, has further surged the demand of the global functional foods market. Furthermore, with the emergence of the COVID-19, the consumers are actively looking for different functional food products having extra nutritional values to boost their immune system. In addition to this, the consumers have significantly shifted towards a healthy lifestyle in these testing times to eliminate the spread of the coronavirus, especially in 2020. All these factors will directly surge the demand for functional food products in the coming years. Several food safety regulations and the limited health benefits of the functional foods as compared to the claimed amount of benefits by the sellers are certain factors that will hamper the growth of the global functional foods market.
On the basis of the ingredient, the vitamin segment is anticipated to experience considerable growth in the next six years. The increasing awareness regarding the exceptional benefits associated with the consumption of vitamins such as lowers the cholesterol levels, controls blood sugar, and helps in maintaining overall health. All these advantages offered by vitamins are leading to an increase in the demand for the segment in the market. On the other hand, the prebiotics and probiotics segment is expected to maintain its dominance over the forecast period. Prebiotics are the short-chain carbohydrates that enhance the activities of some groups of beneficial bacteria. They provide numerous health benefits such as reduces the risk of cancer and increases the absorption capacity of calcium and magnesium. All these benefits will attract the end-users to opt for food products having prebiotics as an ingredient.
Based on the application, the cardio health segment is expected to emerge as the maximum revenue generating segment over the forecast period. This is due to the strong demand for functional food products among the people suffering from cardiovascular diseases, congestive heart failure, hardening of arteries, and congenital heart defects. Moreover, the increasing emphasis on improving joint health, weight loss, and bone and muscle strength is another factor that is driving the demand of the segment in the market.
On the basis of the product, the dairy products segment exhibits substantial growth potential and is projected to gain traction over the forecast period. The strong demand for dairy products such as yogurts, milk drinks, and spreads is the key driver that is boosting the demand of the segment. These products are rich in compounds and are often as an ingredient in the food preparation process.
On the basis of the region, the Asia-pacific region is predicted to dominate the functional foods market in the next six years. This is attributed to the increasing rate of population, followed by the rising disposable income and growing consumption of processed food products in this region. In addition to this, the rising safety concerns among the consumers, influencing consumer behavior, and the growing concern related to malnutrition and poverty will further enhance the market growth in this region.
The key players of the functional foods market include Coca-Cola Co., Cargill, Incorporated, Standard Functional Foods Group Inc., BASF, General Mills Inc., Arla Foods, Amway, KFSU, Nutri-Nation, and GFR Pharma, among others.
The research report on the functional foods market provides an in-depth analysis of the market revenue based on product, ingredient, application, and region for the forecast period from 2020 to 2027. The report highlights the major market drivers propelling the growth as well as challenges faced by the market participants. The research report also provides market size and forecast for the market. The report also analyses the competitive landscape, major players, and their strategies in 2019. The competitive landscape section of the report captures and highlights the recent developments in the market.