Functional Food, Beverage Market Increases WorldwideFunctional Food, Beverage Market Increases Worldwide
A new report from Leatherhead Food Research revealed the global market for food and drinks offering functional health benefits continues to increase in size.
November 24, 2014
According to the report by Leatherhead (Future Directions for the Global Functional Foods Market), in 2013, the global market for functional foods was worth an estimated USD $43.27 billion (a figure using a strict definition of the market, limited to food and drinks which make specific functional health claims and excludes products such as energy drinks). This figure represents an increase in value terms of 26.7 percent compared to 2009. Despite this, the growth rates of the market remain well below the levels observed in the early years of the millennium.
The market suffered during the global economic downturn, owing to consumers switching to cheaper groceries, while changes in the regulatory situation are also thought to have hindered growth. In the EU, for example, more pressure is being placed upon manufacturers of functional foods to provide robust scientific evidence backing up the health claims made by their products.
What sectors are thriving?
Analyzed by health outcome, the energy and mood-enhancing sector is the market’s largest, worth an estimated $16.5 billion in 2013 for the countries under review. This equates to 27.1 percent of the total market (assuming a wider definition is applied), and reflects the widespread popularity of energy drinks in particular in most parts of the world. Other significant sectors by health outcome include digestive health and heart health foods, worth $16 billion and $13.75 billion, respectively, in 2013.
At the other end of the scale, sales of products offering immune support were valued at less than $1 billion during the last year.
“The functional foods market has experienced fairly strong growth in certain parts of the world," Jonathan Thomas, Leatherhead’s principal market analyst, commented. “For instance, more U.S. consumers appear to be turning toward functional food and drinks in order to address perceived nutritional shortfalls, away from dietary supplements (which have traditionally been the preferred option). However, future growth is likely to be dependent upon the global economic situation."
Check out INSIDER’s article “Trends in Functional Food and Beverage Marketing" for information on relevant trends within the sector.
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