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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

  • Fortified/Functional Beverages in Mexico

    ... example can be observed in FF fruit/vegetable juice where brands such as Bida (Grupo Jumex SA de CV) and Valle Frut (Del Valle) are offered at MXN11.00 and MXN9.50 per litre respectively, while FF 100% ... Read More

  • Naturally Healthy Beverages in the US

    ... of both added sugars and artificial sweeteners. Bottled water has been the prime beneficiary of this trend and is the leading source of naturally health beverages growth, although it is not the only beverage option ... Read More

  • Fortified/Functional Packaged Food in the US

    ... spend their time preparing food or sitting down for a long meal. At the same time, Americans are becoming more conscious eaters and now have a better understanding of the part food plays in a ... Read More

  • Fortified/Functional Beverages in the US

    ... what other benefits it can offer. Bulletproof Coffee, which uses butter and coconut oil to purportedly boost metabolism and brain function, is perhaps the best-known brand in taking a wider functional approach to coffee. Four ... Read More

  • Health and Wellness in Hungary

    ... increasingly willing to switch to a healthier and fitter lifestyle. As such, eating habits continued to shift towards more natural products, with consumers increasingly avoiding sugar or gluten, turning to plant and fruit-based diets or ... Read More

  • Health and Wellness in Italy

    ... have benefited, as have products that offer both taste and health benefits. Euromonitor International's Health and Wellness in Italy report tracks the developments of health-associated product types and the healthy-option positioning of competing brands across ... Read More

  • Health and Wellness in Morocco

    ... food and switched to natural products following their adoption of a healthy, sporty lifestyle, whilst others are consuming more fortified and better for you products to help them with health issues and to manage their ... Read More

  • Health and Wellness in Poland

    ... of healthy products, especially those that lead an active lifestyle, as sports continued to be an important aspect of everyday life for many people in 2018. The internet, social media, magazines and TV have all ... Read More

  • Health and Wellness in the Philippines

    ... current retail value growth in 2018 with the implementation of sugar tax on sugar-sweetened beverages but retail volume sales declined. Even for HW beverages, particularly naturally healthy beverages, the sugar tax encouraged purchases of smaller ... Read More

  • Health and Wellness in Brazil

    ... products remain the largest area of health and wellness with these perceived to be the healthiest option, with consumers placing a growing focus on the ingredients in their food and drink. Meanwhile, demand for organic ... Read More

  • Health and Wellness in Finland

    ... and positive developments were present in both soft and hot drinks. Better for you beverages achieved the second highest growth, but this growth was solely driven by reduced sugar beverages. Growth of naturally healthy beverages ... Read More

  • Better For You Beverages in Chile

    ... or sodium permitted for a product to avoid having to display a black label was lowered. Many companies anticipated this second phase when reformulating their products, so the main impact will fall on products that ... Read More

  • Fortified/Functional Packaged Food in Finland

    ... the added functionality, helping them to maintain their wellbeing, there was no novelty value left in the star ingredients probiotic and xylitol. To turn things around, players need to offer excellent flavour experiences and not ... Read More

  • Naturally Healthy Beverages in Brazil

    ... consumption of NH bottled water remains lower than in other developed markets such as the US, Canada and Western Europe and as such has plenty of room for development. There is a growing awareness of ... Read More

  • Better For You Beverages in Finland

    ... increasingly common from 2017. However, it is hard to forecast how the sales of reduced sugar carbonates will develop over the forecast period. The government announced in autumn 2018 that it would increase the soft ... Read More

  • Fortified/Functional Beverages in South Korea

    ... value growth was considerably lower than it was in 2017. Sports drinks experienced remarkable growth in 2017 thanks to increasing sales of Toreta, which was owned by Coca-Cola Korea. Sports drinks is divided into two ... Read More

  • Better For You Beverages in Hungary

    ... develop new formulas with sweeteners, most importantly in carbonates, and consumers accepted and even welcomed the changes – proven by the continued growth of carbonates from 2014 on. The chips tax remained in effect since ... Read More

  • Fortified/Functional Packaged Food in Morocco

    ... to reach consumers and ensure exposure to this type of information. Parents were also a target audience for FF brands due to their sensitivity to messages relating to their children’s health. In this light, FF ... Read More

  • Fortified/Functional Packaged Food in Colombia

    ... a commodity than a form of differentiation or competitive advantage. The fortification of many staple foods, including pasta and rice, is concentrated on vitamins and minerals that are scarcer in regular diets, such as vitamin ... Read More

  • Fortified/Functional Beverages in Poland

    ... with such features clearly indicated on product packaging. All kinds of beverages have been fortified including juice and nectars. For instance, Tymbark promotes its Vita-min product with added vitamins while Oshee markets its bottled water ... Read More

  • Better For You Beverages in Morocco

    ... they are not fully adopting healthy eating habits, whenever they have the choice of either drinking better for you beverages or regular soft drinks, they choose the former. Euromonitor International's Better For You Beverages in ... Read More

  • Organic Beverages in Bulgaria

    ... other health and wellness categories. Bulgarians associate organic mainly with food and beverages with fewer unnatural ingredients. Euromonitor International's Organic Beverages in Bulgaria report tracks the developments of health-associated product types and the healthy-option positioning ... Read More

  • Fortified/Functional Packaged Food in France

    ... are now obliged to provide scientific evidence in order to be allowed to communicate such claims. However, the use of clinical experiments is leading to higher production costs and thus limiting the profitability of the ... Read More

  • Naturally Healthy Beverages in Finland

    ... NH flavoured bottled water. NH bottled water sales were still somewhat below the average European consumption level, and there is potential for volume growth. Flavoured bottled water is advertised prominently on TV, social media and ... Read More

  • Fortified/Functional Beverages in Brazil

    ... Brazil are becoming increasingly educated about the health benefits of different ingredients and in some cases FF beverages offers a convenient solution. This has benefited FF chocolate-based flavoured powder drinks, which is the second largest ... Read More

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