The functional food market is projected to grow significantly within the next six years, driven by global consumer demand for more nutritious food, a market research group predicts.
In 2019 the functional food market size was valued at approximately $178 billion, according to Allied Market Research. That number is projected to increase to almost $268 billion by 2027, with a compound annual growth rate (CAGR) of 6.7% from 2021 to 2027.
Functional foods are modified foods that are high in nutrients and protein that are believed to provide a variety of health benefits. The nutrients and proteins in functional foods are believed to reduce the risk of deadly diseases and improve an individual's overall physiological state.
In the 1980s, Japanese scientists coined the term "functional foods" for a category of food that offers more than simply basic nutrition, according to a 2003 article by Toshio Shimizu in the journal Nutrition Research Reviews, available from the National Library of Medicine. Benefits also include sensory satisfaction and improved physiologic function. Functional foods were classified as foods with notable amounts of vitamins A, B1, B2, B6, B12, C, E, D, biotin, pantothenic acid, folic acid and niacin, as well as calcium and iron.
Products that may contain these functional vitamins and minerals include bakery goods and cereals, dairy products, meat, fish, eggs, soy products and fats and oils, according to Business Wire.
The functional food market can be broken down into segments by application including sports nutrition, cardio health, weight management and clinical nutrition, according to Allied Market Research. It expects the sports nutrition segment to grow to $72.1 billion by 2027, registering a CAGR of 6.5%, while the cardio health segment is projected to increase significantly as well.
Regionally, the Asia-Pacific area was the biggest consumer of functional food in 2019, a trend which is expected to continue through 2027, Allied Market Research said.
Driving forces increasing the functional food market include rising consumer consciousness of the benefits of balanced diets and higher quality food. As world populations become increasingly urbanized, they are seeking more nutritious food to offset rising rates of cardiovascular, chronic and obesity-linked diseases, Business Wire reported.
The COVID-19 pandemic also drove the growth of the functional food market, as customers sought to improve their health and immunity by consuming nutritious foods, Business Wire said.
In the United States, the Food and Drug Administration (FDA) still has no legal definition for functional food and so it cannot formally regulate this category of food, according to the American Journal of Clinical Nutrition.