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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

  • Health and Wellness in Greece

    ... heavily invest in this trend, which is resulting in a significant increase in product variety and in activities that are set to boost consumer awareness. Grocery retailers are increasingly allocating greater space to products that ... Read More

  • Health and Wellness in Ireland

    ... big increase in disposable income thanks to very favourable economic conditions, a situation which is projected to continue over the forecast period. Euromonitor International's Health and Wellness in Ireland report tracks the developments of health-associated ... Read More

  • Health and Wellness in Japan

    ... country’s population continues to shrink which is limiting volume growth. The better performing categories in 2018 were those which included natural ingredients with a perceived health benefit, such as NH packaged food and beverages. Consumers ... Read More

  • Health and Wellness in South Africa

    ... products in particular benefited from the increased spotlight on sugary items and their negative impact on health, especially following the implementation of the sugar tax, although the use of artificial sweeteners is also a concern ... Read More

  • Health and Wellness in Switzerland

    ... on products they deem to be of better quality, thus directly impacting off-trade sales of health and wellness food and beverages. Other macro environmental trends are also contributing to growth, including an ageing population, the ... Read More

  • Health and Wellness in the Czech Republic

    ... healthier lifestyles and spent more on health and wellness food and drinks in 2018. The focus on health, therefore, has spread across the economy segment. Manufacturers and retailers have continued to invest in product innovation ... Read More

  • Health and Wellness in the Netherlands

    ... and the health value of the food and beverages they buy. This is especially the case for those consumers who exercise regularly and who have more money to spend on groceries. Sales of products that ... Read More

  • Health and Wellness in Austria

    ... within packaged food, driven by free-from packaged food and organic packaged food. Sales of free-from packaged food continue to thrive, with consumers increasingly searching for gluten-free, lactose-free, as well as meat free alternatives to conventional ... Read More

  • Health and Wellness in Belgium

    ... better for you and fortified/functional packaged food. On the other hand, driven by the implementation of the sugar tax, an important wave of new launches in beverages, featuring low or zero sugar content, resulted in ... Read More

  • Free From in Germany

    ... the review period, with further positive development expected over the forecast period. The main reason behind its – so far unlocked – significant potential for further growth lies in the fact that the majority of ... Read More

  • Fortified/Functional Beverages in South Africa

    ... fruit/vegetable juice, with rising consumer confidence allowing more shoppers to trade up. Moreover, a higher uptake of sport activities will stimulate demand for FF sports drinks, whereas the introduction of more refillable packaging at affordable ... Read More

  • Fortified/Functional Beverages in the Czech Republic

    ... especially in winter. With growing awareness of health and wellness, Czechs are more regularly buying vitamins such as zinc or iron to fight tiredness and those that boost the immune system. Vitamins and dietary supplements ... Read More

  • Fortified/Functional Packaged Food in Argentina

    ... it should be noted that these new products were not the result of consumers’ higher awareness of their benefits. The development was due to the “Precios Cuidados programme (Affordable Prices), created by the previous government. ... Read More

  • Fortified/Functional Beverages in the United Kingdom

    ... the forecast period compared with the volume sales achieved in the last five years. This weaker performance of FF energy drinks is related to the increasing consumer preference of healthy drinks and the launch of ... Read More

  • Better For You Beverages in Ireland

    ... Beverages in Ireland report tracks the developments of 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 ... Read More

  • Fortified/Functional Packaged Food in the United Kingdom

    ... and fibre. Key manufacturers have tapped into the trend and expanded their own range to fit the current trends. Protein fortification is still trending, especially in on-the-go products as more consumers are opting for healthy, ... Read More

  • Fortified/Functional Packaged Food in Austria

    ... from an increasing number of consumers who are realising that they are potentially not taking in enough vitamins and nutrients on a daily basis, many Austrian consumers are turning to food that is perceived as ... Read More

  • Fortified/Functional Packaged Food in Germany

    ... certain products which had previously claimed specific health benefits, for example probiotic yoghurts. The manufacturers of these products reacted by giving their products a different unique selling proposition. However, the success of the FF category ... Read More

  • Naturally Healthy Beverages in Egypt

    ... the naturally healthy beverages market in Egypt belongs to NH soft drinks, including NH natural mineral bottled water. NH natural mineral bottled water is popular amongst Egyptians as bottled water is the only viable option ... Read More

  • Fortified/Functional Packaged Food in Belgium

    ... their products. For instance, probiotic dairy was once embraced by health-conscious consumers but is now less popular. Aside from scepticism, the perception that fortified/functional packaged food is heavily processed is also a negative factor. Indeed, ... Read More

  • Better For You Beverages in Switzerland

    ... consumption is declining, and better for you beverages are on the rise as consumers consider them to be permissible indulgences in their diet. Reduced sugar drinks registered impressive growth in 2018 as consumers shifted away ... Read More

  • Better For You Beverages in the United Kingdom

    ... and zero sugar variants. This boosted sales of BFY reduced sugar beverages in 2018, confirming their leading position in BFY beverages. BFY reduced caffeine beverages recorded value growth in 2018 due to the rising consumer ... Read More

  • Fortified/Functional Beverages in Argentina

    ... level. Euromonitor International's Fortified/Functional Beverages in Argentina report tracks the developments of 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 ... Read More

  • Fortified/Functional Beverages in Austria

    ... drinks continues to see value growth thanks to solid unit price growth. Achieving higher unit prices will become increasingly crucial in the coming years as there is little scope to increase per capita volume consumption ... Read More

  • Fortified/Functional Beverages in Belgium

    ... the recent introduction of new flavours in 2017 and 2018 has boosted demand as taste has often been a major barrier to reaching out to new consumers. Euromonitor International's Fortified/Functional Beverages in Belgium report tracks ... Read More

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