Functional Foods and Drinks

Global Functional Foods and Drinks Market to Reach US$428.5 Billion by 2030

The global market for Functional Foods and Drinks estimated at US$278.8 Billion in the year 2024, is expected to reach US$428.5 Billion by 2030, growing at a CAGR of 7.4% over the analysis period 2024-2030. Beverages, one of the segments analyzed in the report, is expected to record a 8.2% CAGR and reach US$180.3 Billion by the end of the analysis period. Growth in the Dairy Products segment is estimated at 7.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$84.9 Billion While China is Forecast to Grow at 9.5% CAGR

The Functional Foods and Drinks market in the U.S. is estimated at US$84.9 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$62.6 Billion by the year 2030 trailing a CAGR of 9.5% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 5.5% and 6.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 6.7% CAGR.

Global Functional Foods and Drinks Market - Key Trends & Drivers Summarized

Functional foods and drinks are designed to provide additional health benefits beyond basic nutrition, often containing ingredients that promote specific physiological functions or reduce the risk of disease. These products include fortified foods, dietary supplements, probiotics, prebiotics, and beverages enriched with vitamins, minerals, antioxidants, and other bioactive compounds. Examples of functional foods and drinks include probiotic yogurt, which supports digestive health; fortified cereals with added vitamins and minerals; and beverages infused with herbs like turmeric or ginseng, known for their anti-inflammatory and immune-boosting properties. The concept of functional foods and drinks has gained significant traction as consumers become more health-conscious and seek to prevent health issues through diet rather than just treating them with medications.

The growth in the functional foods and drinks market is driven by several factors. Rising health awareness among consumers is a primary driver, as more people seek to improve their overall well-being and prevent chronic diseases through diet. The increasing prevalence of lifestyle-related health issues, such as obesity, diabetes, and cardiovascular diseases, has also spurred demand for functional products that offer specific health benefits. The aging population is another significant factor, with older adults looking for ways to maintain health and vitality. Additionally, the expanding research into the gut microbiome and its impact on health has highlighted the importance of probiotics and prebiotics, boosting their inclusion in functional foods and drinks. Regulatory support and favorable policies promoting health and wellness have encouraged the development and marketing of these products. Furthermore, the rise of e-commerce and digital marketing has made functional foods and drinks more accessible to a broader audience, contributing to the market`s robust growth. These factors collectively underscore the dynamic and expanding nature of the functional foods and drinks market, reflecting its critical role in contemporary health and nutrition strategies.

Technological advancements and scientific research have significantly contributed to the development and popularity of functional foods and drinks. Enhanced processing techniques, such as microencapsulation, ensure the stability and bioavailability of active ingredients, allowing them to retain their efficacy until consumed. Biotechnology has enabled the fortification of foods with essential nutrients and the enhancement of naturally occurring compounds, improving their health benefits. Additionally, advancements in packaging technology have extended the shelf life of functional foods and drinks, maintaining their nutritional value over time. Scientific studies and clinical trials have provided evidence supporting the health claims of these products, further boosting consumer confidence and market growth. Moreover, personalized nutrition, driven by genetic testing and biomarkers, is emerging as a significant trend, allowing for the customization of functional foods and drinks to meet individual health needs.

SCOPE OF STUDY:

The report analyzes the Functional Foods and Drinks market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Type (Beverages, Dairy Products, Cereals & Grains, Snacks, Other Types); Ingredient (Dietary Fibers, Vitamins, Minerals, Carotenoids, Fatty Acids, Prebiotics & Probiotics, Other Ingredients)

Geographic Regions/Countries:
World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Rest of Europe; Asia-Pacific; Australia; India; South Korea; Rest of Asia-Pacific; Latin America; Argentina; Brazil; Mexico; Rest of Latin America; Middle East; Iran; Israel; Saudi Arabia; UAE; Rest of Middle East; Africa.

Select Competitors (Total 306 Featured) -

• Abbott Nutrition
• ABF Ingredients
• Amway Corporation
• Archer Daniels Midland Company
• Arla Foods amba
• BASF SE
• Ceapro, Inc.
• Celsius Holdings, Inc.
• Coca-Cola Co.
• Dali Foods Group Co., Ltd.
• Danone SA
• Del Monte Pacific Limited (DMPL)
• Dymatize Enterprises, LLC
• General Mills, Inc.
• Glanbia Nutritionals Limited
• Glanbia Plc
• GNC Holdings, LLC
• Herbalife International, Inc.
• Kellogg Company
• Keurig Dr Pepper
• MaxiNutrition
• Meiji Holdings Co., Ltd.
• Monster Beverage Corporation
• Natural Products, Inc.
• Nestlé S.A.
• Novozymes A/S
• Otsuka Pharmaceutical Co., Ltd.
• PepsiCo Inc.
• Post Holdings, Inc.
• Rockstar Inc.
• Royal FrieslandCampina N.V.
• Suntory Holdings Limited
• TC Pharmaceutical Industries Co., Ltd.
• The Hain Celestial Group, Inc.
• The Quaker Oats Company, Inc.
• Unilever plc
• Valio Ltd.
• Yakult Honsha Co., Ltd.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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