Global Functional Foods and Beverages Market 2017-2021
About Functional Foods and Beverages
Functional foods and beverages are those foods and beverages to which special ingredients are added so that they provide additional health benefits. Regular food items such as cereals, bread, yogurts, snacks, and beverages are converted into functional foods by fortifying them with vitamins, herbs, or other nutrient-rich ingredients. The common ingredients that are added to functional foods and beverages include probiotics, prebiotics, and plant stanol and sterol.
Technavio’s analysts forecast the global functional foods and beverages market to grow at a CAGR of 7.80% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global functional foods and beverages market for 2017-2021. To calculate the market size, the report considers the revenue generated from the sales of functional foods and beverages to individual consumers.The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Functional Foods and Beverages Market 2017-2021
Technavio recognizes the following companies as the key players in the global functional foods and beverages market: General Mills, Kellogg Company, Nestlé, and PepsiCo.
Other Prominent Vendors in the market are: Archer Daniels Midland, Campbell Soup, Del Monte Pacific, Dr. Pepper Snapple, Fonterra, GlaxoSmithKline, JDB, Kraft Heinz, Living Essentials, Otsuka Pharmaceutical, Rockstar, Suntory, TC Pharmaceutical Industries, The Hain Celestial, Unilever, Uni-President, Welch’s, and White Wave Foods.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is rising awareness of the health benefits of functional foods. The rising awareness of the benefits of functional foods is driving the global functional foods and beverages market. Functional foods and beverages are becoming popular among consumers because of their perceived health benefits. These foods are marketed as products capable of reducing the risk of chronic diseases such as improving cognitive health, coronary heart disease and cancer and helping in weight management. An example of a natural functional food is oats. Oats contain high levels of beta-glucan, which reduces serum-LDL (referred to as bad cholesterol). Other functional foods include tea (catechin), yogurt (calcium and probiotics), super fruits such as cranberries, grapes, and pomegranate (antioxidants, carotenoids, (pro-)anthocyanidin, resveratrol, tannins, and flavonoids), tomatoes (lycopene), and chocolate (flavanol).”
According to the report, one driver in the market is product innovations. Innovations in flavors and functional ingredients are boosting the functional foods and beverages market globally. Manufacturers of functional foods and beverages are introducing new flavors in the market to match the changing consumer preferences. For example, UK-based Lucozade Ribena Suntory replaced its reduced-sugar lemonade (launched in 2014) with a new variant called Tropical Fusion in August 2015. This drink was introduced to meet the growing consumer preference for tropical flavors and is a blend of pineapple and kiwifruit. The manufacturers of these foods and ingredients are laying special emphasis on balancing functional benefits and flavor. Brands are also focusing on sugar-free and low-calorie formulations as these are in high demand. Advances in technology have enabled the development of products that mask the unpleasant taste of some functional ingredients. For example, effective microencapsulation allows manufacturers to hide the bitter taste of amino acids and other ingredients.
Further, the report states that one challenge in the market is high sugar content in functional beverages. The high sugar content of many functional foods and beverages acts as a challenge for the market as diabetes and obesity have become major health concerns across the globe. The excessive consumption of products having high sugar content can increase an individual's blood sugar level and weight, causing diabetes and obesity. The incidence of obesity is already high in high-income countries and is also growing in the low- and middle-income countries. In 2015, nearly 38.46% of the total adults population worldwide were overweight. Of these, more than 34% were obese. The Centers for Disease Control and Prevention estimates that 34.9% of American adults and 17% of children and adolescents are obese.
General Mills, Kellogg Company, Nestlé, PepsiCo, Archer Daniels Midland, Campbell Soup, Del Monte Pacific, Dr. Pepper Snapple, Fonterra, GlaxoSmithKline, JDB, Kraft Heinz, Living Essentials, Otsuka Pharmaceutical, Rockstar, Suntory, TC Pharmaceutical Industries, The Hain Celestial, Unilever, Uni-President, Welch’s, and White Wave Foods.
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