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Functional Foods & Beverages Market Research Reports & Industry Analysis

Functional food and beverages are first and foremost healthy foods, but it’s differentiated from your average fare by claims of specific health-promoting or disease-preventing properties.

A functional food has to do more than the basic function of supplying nutrients. The basic category of functional foods includes processed food or foods fortified with additives, like "vitamin-enriched" products. Fermented foods with live cultures are considered functional foods with probiotic benefits.

Health-conscious consumers have supplied the demand to make functional foods an emerging field in food science. Yet, as consumers seek healthy choices, they are often skeptical about the benefits claimed by the companies developing new functional foods and beverages. The fact is the benefits are simply difficult to detect.

The industry suggests the establishment of a health claim regulating agency, which may increase consumer confidence. However, strict examination of some of the functional food claims may discourage some companies from launching their products.

The burgeoning industry was also impacted by poor global economic outlook. Many companies were forced to reposition themselves in response to the global economic downturn by lowering prices, eliminating divisions and rebranding products. Others grew by targeting products that consumers believe make an impact on their health. Product functionality is the most important consumer decision factor, generally outweighing cost sensitivity.

Consumer surveys on a wide range of functional food areas -- such as heart, digestive, immunity, cognitive, joint and bone health -- find that shoppers have high levels of interest, but much lower levels of actual purchase behavior.

Cognitive-health products are one example, as more than two-thirds of Americans say they are interested in products that increase concentration, but less than one in five actually buy such products. Narrowing this gap is crucial for the industry to turn functional foods and drinks from a novelty into a steady growing business in the long term.

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Functional Foods & Beverages Industry Research & Market Reports

  • Naturally Healthy Beverages in Greece

    ... bottled water. Over the forecast period, maturity will lead to slow volume and current value growth for NH bottled water, given that its penetration is already extremely high in Greece, which will hinder its growth ... Read More

  • Fortified/Functional Beverages in Switzerland

    ... diet and relied on beverages for vitamins and minerals or get an energy boost. However, the trend of more mindful consumption is rising, and FF products are starting to appeal to more mature consumer segments. ... Read More

  • Naturally Healthy Beverages in Ireland

    ... health-associated product types and the healthy-option positioning of competing brands across different food sectors. It provides the latest retail sales data 2014-2018, allowing you to compare health and wellness categories with each other or in ... Read More

  • Fortified/Functional Beverages in Egypt

    ... have been present in the country far longer than FF sports drinks, have widespread availability and active marketing activity. FF sports drinks started to gain traction in direct correlation with the rise of the gym ... Read More

  • Fortified/Functional Beverages in Hong Kong, China

    ... most important bases for the positioning of FF beverages during the forecast period. With further improvements in Hong Kong’s economic situation anticipated, more consumers are likely to want to maintain high energy levels to fulfil ... Read More

  • Fortified/Functional Packaged Food in Switzerland

    ... preservatives. Besides, many Swiss consumers will continue to show strong scepticism over the health claims of fortified/functional packaged food manufacturers, believing that such claims are only used for marketing purposes. Those consumers, especially millennials, will ... Read More

  • Naturally Healthy Beverages in Japan

    ... ingredients. Furthermore, with rising rates of overweight/obesity and diabetes many consumers have also moved away from sugary drinks such as carbonates in favour of NH bottled water and NH RTD tea, for example. Both of ... Read More

  • Fortified/Functional Beverages in Japan

    ... strong growth in FF beverages with the category continuing to decline in current value terms in 2018. This is partly due to a lack of understanding with regard to the claims of these products. In ... Read More

  • Better For You Beverages in Belgium

    ... 2018. Consumer demand shifted towards low and no sugar beverages, with manufacturers responding to this new trend. While negatively impacting categories such as carbonates and juice, this trend benefitted categories which naturally contain less sugar, ... Read More

  • Health and Wellness in Hong Kong, China

    ... for healthier food and beverages is the shift towards more hectic lifestyles, with a lack of fruit and vegetables in meals further contributing to the shift towards health and wellness products. In FF beverages for ... Read More

  • Fortified/Functional Packaged Food in Ireland

    ... protein is also popular in a wide range of areas from chocolate confectionery, to bread and breakfast cereals. This trend is expected to continue. A growing number of health professionals are advising consumers to obtain ... Read More

  • Better For You Beverages in Argentina

    ... the Health Ministry alerted consumers to high levels of sugar in many beverages. Euromonitor International's Better For You Beverages in Argentina report tracks the developments of health-associated product types and the healthy-option positioning of competing ... Read More

  • Better For You Beverages in Austria

    ... health conscious, the shift towards reduced sugar varieties is breathing new life into previously slightly stale RTD tea. Euromonitor International's Better For You Beverages in Austria report tracks the developments of health-associated product types and ... Read More

  • Naturally Healthy Beverages in the United Kingdom

    ... younger drinkers perceive NH tea as a premium category, paying a higher price in order to obtain natural healthy benefits. Thanks to this new generation of drinkers, it is expected that NH fruit/herbal tea, NH ... Read More

  • Naturally Healthy Beverages in Belgium

    ... this context, with consumers keen to drink healthier beverages, naturally healthy bottled water represented the perfect option to solve the issue often associated with soft drinks: calories and additives. Therefore, in 2017 and 2018, there ... Read More

  • Better For You Beverages in Egypt

    ... decaffeinated instant standard coffee, which is present but not that widespread as most Egyptian consumers are not that aware of the reduced caffeine options. The latter category is widespread, mainly consisting of reduced sugar cola ... Read More

  • Better For You Beverages in Greece

    ... or alternative sweeteners. In this context, reduced sugar beverages such as carbonates outperformed sugarised versions. Volume sales of better for you beverages however, are starting to slow down, as the penetration of reduced sugar products ... Read More

  • Better For You Beverages in Hong Kong, China

    ... were reduced sugar non-cola carbonates, reduced sugar fruit/vegetable juice and reduced sugar RTD tea. Reduced sugar BFY soft drinks are now being consumed with meals as well as for refreshment. Euromonitor International's Better For You ... Read More

  • Fortified/Functional Packaged Food in Japan

    ... familiar with the digestive health benefits of probiotic yoghurt thanks to the extensive range of fermented food, such as miso, soy sauce and natto, in the traditional Japanese diet. Local brands such as Yakult also ... Read More

  • Fortified/Functional Packaged Food in Egypt

    ... benefits of FF products remained quite low. Demand was further hampered by the fallout from the devaluation of the Egyptian pound in late 2016. This move caused retail unit prices for most FF products to ... Read More

  • Naturally Healthy Beverages in Germany

    ... to increase. In this context, NH bottled water is the ideal candidate, with many consumers perceiving it as the healthiest way to rehydrate thanks to the absence of calories and its content of elements for ... Read More

  • Health and Wellness in the United Kingdom

    ... options and reduced sugar variants have been launched in 2018. Moreover, consumers are paying more attention to free from variants and to the functionality of natural and simple ingredients of products, which are perceived to ... Read More

  • Naturally Healthy Beverages in Switzerland

    ... by naturally healthy bottled water. This stable rise in bottled water consumption throughout the forecast period is largely explained by the overall decline in carbonates volumes across the Swiss market, and beverage manufacturers’ efforts to ... Read More

  • Fortified/Functional Packaged Food in Greece

    ... a relatively new trend in Greece, having only emerged during the latter part of the review period thanks to increased publicity about the potential benefits of protein-rich diets. Nonetheless, it has recently helped to draw ... Read More

  • Better For You Beverages in the Czech Republic

    ... lower sugar intake. Although it is not expected that a sugar tax will be introduced in the country over the forecast period, BFY reduced sugar beverages is expected to continue to post dynamic growth in ... Read More

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