Functional Food Market Size – Industry Report on Share, Growth Trends & Forecasts Analysis (2025 – 2030)
The Report Covers Global Functional Food Market Share & Companies. The market is segmented by Product Type (Bakery Products, Breakfast Cereals, Snack/Functional Bars, Dairy Products, Baby Food, and Other Product Types); Distribution Channel (Supermarkets and Hypermarkets, Specialist Retailers, Convenience Stores, Online Retail, and Other Distribution Channels); and Geography (North America, Europe, Asia-Pacific, South America, and Middle East & Africa). The market size is provided in terms of values in (USD Million) during the forecasted years for the above segments.
Functional Food Market Size – Industry Report on Share, Growth Trends & Forecasts Analysis (2025 – 2030)
Functional Food Market Size
| Study Period | 2019 – 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 – 2030 |
| CAGR | 2.71 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Functional Food Market Analysis
The Functional Food Market is expected to register a CAGR of 2.71% during the forecast period.
Functional foods offer specific health benefits that are beyond the regular daily intake of nutrients, such as improved bone health, cholesterol management, improved heart health, and other benefits associated with eye health and vision. The increasing demand for nutritional and fortifying food additives is anticipated to drive market growth. Food manufacturers are deploying the fortification of nutritional additives, such as omega-3 fatty acids, fiber, vitamins, and minerals, in their product offerings. The intention of incorporating the aforementioned additives in the food industry is to increase the nutritional content of food items.
Functional food in sports nutrition has emerged as the largest segment due to the increasing commercialization of sports nutrients and the availability of a wide product range, including creatine and whey protein-based functional food. In January 2021, Danone North America launched a new plant-based protein beverage aimed at athletes. Silk Ultra is a multi-serve, dairy-free beverage with 20 grams of soy protein per serving, designed for muscle maintenance and repair. The drink is enriched with calcium and vitamins A, D, B2, and B12 and comes in three flavors: creamy chocolate, unsweet, and original, which, according to the company, includes 2.5 times the protein of typical dairy milk.
Functional Food Market Trends
Increasing Consumption of Nutrient-Enriched Food
- Consumers’ understanding of the impact of nutrition on physical and mental well-being has enhanced over the years. The awareness regarding the health benefits of functional foods in protecting against diseases such as cancer, heart disease, diabetes, etc., is rising. Therefore, the positive impact of functional foods on one’s health is supporting market demand and growth. The growing population and changes in food fashion among people are the major drivers for the market.
- Further, consumers are inclined toward foods containing functional ingredients to reduce the risk of certain health conditions, such as obesity, weight management, diabetes, and cardiovascular diseases. The hectic lifestyles and increasing stress have contributed to the increasing prevalence of such health disorders. Moreover, in general, people tend to consume big meals three to four times a day. This has created a negative impact on people’s health. The growing awareness and shift in eating habits have led to a trend of eating multiple smaller meals during the day.
- These factors have boosted healthy foods and replaced meals with nutritional biscuits, snacks, and energy or protein bars. Also, the growing trend of on-the-go snacking is becoming extremely popular among children, owing to their need for regular meals. At the same time, adults prefer them due to their active hectic lifestyles. In addition, healthy snacking options, like energy bars, form affordable and convenient solutions for people and help keep their weight checked and regulated.
- For instance, in March 2022, Clif Bar & Company launched ‘Think Snack Bars’, expanding its on-the-go snacking segment for consumers. The product is made with plant-based ingredients to support health and offers snacking options with flavor and real ingredients like organic rolled oats.
- In July 2021, Clif Bar & Company introduced nut butter-filled energy bars into the Australian market via its exclusive distributor Unique Health Products. These bars were launched in three flavors: peanut butter, chocolate peanut butter, and chocolate hazelnut butter, and have been certified organic, containing 12% nut and pea protein, and free from artificial flavors and synthetic preservatives.
- Individuals are more concerned about their health and willing to pay extra for food specifically beneficial to their health. Protein is becoming a priority for consumers worldwide as it is considered ‘anti-fat’ and ‘anti-sugar’ and a high source of instant energy. Thus, consumers are increasingly seeking protein ingredients in food products termed nutrient-enriched food, which is expected to positively impact the growth of the functional food market.
Asia-Pacific Dominates the Market
- Asia-Pacific is the major market for functional food products. Increasing consumer interest, and a better understanding of the immunity-enhancing property of proper diet and food habits, are some of the key factors driving the growth of vitamin-fortified and mineral-enriched food and beverage product sales.
- Yogurt, owing to its multifunctional attributes, holds great prominence among consumers. With a growing share of consumers avoiding certain food ingredients or attributes for health and fitness purposes, ingredient and nutrition labels are becoming major information sources for purchase decisions.
- Consequently, the awareness of food labeling is growing in Japan, as calorific values and fat contents are considered the most important information on nutrition fact labels. According to the Japanese Health And Beauty report, in 2021, 1145 products were registered as functional foods. For instance, in February 2021, Nestle Japan rolled out plant-based almond and oat milk lattes.
- Additionally, a large section of the Chinese population is lactose intolerant. Hence, consumers find plant-based yogurt a relatively better option due to its fermented nature, making it easily digestible. For instance, in May 2021, the Chinese plant-based snacking company, Marvelous Foods, launched Yeyo coconut yogurt on the e-commerce platform, Tmall. Yeyo is plant-based coconut yogurt with zero added sugar, artificial flavors, and sweeteners. The initial launch featured three stock-keeping units (SKUs), and the range includes a ‘pure’ sugar-free flavor, plus two yogurt-granola cups with seasonal fruit and nut granola topping for flavor and nutrition. Consumers are becoming increasingly interested in food and beverages that are less processed and have more natural and organic ingredients, as well as being environmentally friendly. Hence, all the above-mentioned factors positively drive the market in the region.
Functional Food Industry Overview
The functional food market is competitive, with many domestic and multinational players competing for market share. As their key marketing strategies, companies focus on new product launches with healthier ingredients/organic claims and acquisitions, mergers, partnerships, and expansions. Some of the major players in the market studied are Danone SA, Nestlé S.A., PepsiCo Inc., Kellogg’s Company, and Abbott Laboratories.
Key players are now focusing on social media platforms and online distribution channels for their products, online marketing, and branding to attract more customers. To attain a larger market share, manufacturers are revitalizing their product portfolios targeting health-conscious consumers.
Functional Food Market Leaders
- Danone SA
- Abbott Laboratories
- PepsiCo Inc.
- The Kellogg’s Company
- Nestlé S.A.
- *Disclaimer: Major Players sorted in no particular order
Functional Food Market News
- April 2023: Swiss food giant Nestlé announced the launch of its two new vegan chocolate chips under its Toll House brand. These chips are claimed to be dairy-free and were launched to meet the demand for plant-based products.
- February 2023: Hindustan Unilever Ltd (HUL) announced the launch of its new chocolate flavor Millet Horlicks in Tamil Nadu. The company claims that Millet Horlicks in chocolate flavor is HUL’s first product with super-grain which contains multi-millets like Finger Millet (Ragi), Sorghum (Jowar), Foxtail Millet (Kanngani) and Pearl Millet (Bajra) and these multi-millets are claimed to be a natural source of calcium, iron, protein, and fiber.
- January 2023: Cocos Organic announced the launch of a series of new products, including the United Kingdom’s first Organic Coconut Milk Yog Tubes and a brand-new Light Organic Natural Yoghurt. Further, the company claims that Organic Coconut Milk Yog Tubes are dairy-free, gluten-free, free from nuts and refined sugar, and designed for kids over six months old. While their Cocos Organic range is claimed to be organic, all-natural, made from whole ingredients, and free from dairy, lactose, gluten, and soya.
Functional Food Industry Segmentation
Functional foods can be considered whole, fortified, enriched, or enhanced foods that provide health benefits beyond the provision of essential nutrients (e.g., vitamins and minerals) when consumed at efficacious levels as part of a varied diet regularly.
The functional food market is segmented by product type, distribution channel, and geography. Based on product type, the market is segmented into bakery products, breakfast cereals, snack/functional bars, dairy products, baby food, and other product types. The snack/functional bars market has been further sub-segmented into sports bars, energy bars, and protein bars. Similarly, dairy products have been further sub-segmented into yogurt and other functional dairy products. Based on distribution channels, the market is segmented into supermarkets/hypermarkets, specialist retailers, convenience/grocery stores, online retail stores, and other distribution channels. Based on geography, the report offers a detailed analysis of the regions, including North America, South America, Europe, Asia-Pacific, and the Middle East & Africa.
The market sizing has been done in value terms in USD for all the abovementioned segments.
| Product Type | Bakery Products | |
| Breakfast Cereals | ||
| Snack/Functional Bars | Sports Bars | |
| Energy Bars | ||
| Protein Bars | ||
| Dairy Products | Yogurt | |
| Other Functional Dairy Products | ||
| Baby Food | ||
| Other Product Types | ||
| Distribution Channel | Supermarkets/Hypermarkets | |
| Specialist Retailers | ||
| Convenience/Grocery Stores | ||
| Online Retail Stores | ||
| Other Distribution Channels | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| Geography | Europe | United Kingdom |
| Germany | ||
| Spain | ||
| France | ||
| Italy | ||
| Russia | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle East & Africa | South Africa |
| United Arab Emirates | ||
| Rest of Middle East & Africa |
Functional Food Market Research FAQs
The Functional Food Market is projected to register a CAGR of 2.71% during the forecast period (2025-2030)
Danone SA, Abbott Laboratories, PepsiCo Inc., The Kellogg’s Company and Nestlé S.A. are the major companies operating in the Functional Food Market.
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
In 2025, the Asia-Pacific accounts for the largest market share in Functional Food Market.
The report covers the Functional Food Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Functional Food Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Functional Food Industry Report
The global functional food market is experiencing significant market growth, driven by a rising consumer appetite for nutrient-dense diets and health-centric options. This market overview highlights the industry’s recovery from previous supply chain disruptions through sophisticated digital distribution channels. Technological advancements in food processing have expanded the availability of functional foods and beverages, aiding the market’s expansion.
Consumers are increasingly drawn to nutrient-enriched, ready-to-eat snacks and on-the-go nutritional choices, leading to notable market segmentation. The proliferation of microbreweries and craft beer innovations mirrors a worldwide shift towards health, wellness, and unique dietary preferences. The market forecast indicates a positive market outlook, with industry reports suggesting a doubling of the market size in the coming years.