The worldwide functional foods and beverages market size is projected to reach USD 529.66 billion by 2028, exhibiting a CAGR of 9.50% during the forecast period. Increasing malnutrition worldwide will be the primary growth driver for this market in the near future.
According to the World Health Organization (WHO), close to 462 million people are underweight and 52 million children under the age of 5 are suffering from wasting. Moreover, roughly 45% of deaths among children below 5 years of age occur due to under-nutrition. As a result, governments have spurred action in both developed and developing countries. For instance, in 2019, the UK government made it mandatory to fortify flour with folic acid to prevent the occurrence of congenital disabilities in children. Similarly, in July 2019, the Indian government announced the distribution of rice fortified with folic acid, Vitamin B12, and iron through the Public Distribution System (PDS). The market for functional foods and beverages, thus, stands to gain from these developments.
Development of Exciting Products to Stimulate Intense Competition
One of the leading functional food and beverages market trends is the increasing focus of key players on the developing and launching new and exciting products in the market. Not only do these frequent launches help companies solidify their position in the market, but they also periodically realign the overall dynamics of market competition.
An Overview of the Impact of COVID-19 on this Market:
The emergence of COVID-19 has brought the world to a standstill. We understand that this health crisis has brought an unprecedented impact on businesses across industries. However, this too shall pass. Rising support from governments and several companies can help in the fight against this highly contagious disease. There are some industries that are struggling and some are thriving. Overall, almost every sector is anticipated to be impacted by the pandemic.
We are taking continuous efforts to help your business sustain and grow during COVID-19 pandemics. Based on our experience and expertise, we will offer you an impact analysis of coronavirus outbreaks across industries to help you prepare for the future.
High Nutritional Value of Functional Foods to Spike Uptake
The popularity of fortified food and beverages has been steadily climbing in recent years, mainly due to the hectic and unhealthy lifestyles people are leading in urban areas. As a result, there is a growing demand for nutrition-rich food and beverage items fueled by rising health and wellness concerns. Functional foods have emerged as an attractive option for many consumers, given their wide-ranging and long-term benefits.
For example, functional foods and beverages fortified with omega-3 fatty acids can boost brain function, secure heart health, and reduce inflammation. The benefits of functional foods are not limited to just chronic and lifestyle-based disorders; they have proven efficacy in tackling the effects of under-nourishment too. For example, the National Institutes of Health reported that the introduction of wheat flour fortified with iron in Jordan led to 50% reduction in the incidence of iron deficiency anemia among children.
Evolving Lifestyles in Asia-Pacific to Aid the Region Register Impressive CAGR
Asia-Pacific is slated to dominate the functional food and beverages market share and grow at a CAGR of 9.20% during the forecast period. The central reason for this rise is the rapidly changing lifestyles of people that are increasing the prevalence of chronic conditions in the region. An example of this is the increasing consumption of fast or “junk” food.
Thus, there is a surging demand for nutritional foods as people are getting more health-conscious, especially in India. In addition to foodstuffs, there is also a high demand for functional hydration, particularly in tropical countries where water loss from the body is high. After Asia-Pacific, North America is expected to be the second-largest region for this market, anticipated to register a CAGR of 7.06% in the forthcoming years.
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