The global functional foods market is expected to reach $654 million by 2033 with a growth rate of 10.4%, according to new data from Verified Market Reports. The market is being driven by growing demand for nutrient-enriched products, probiotics, fortified beverages and plant-based alternatives.
“Demand is shifting from general ‘better-for-you’ claims to evidence backed benefits — gut health, cardiometabolic support, cognitive performance — accelerating premiumization and widening price ladders across beverages, snacks, dairy and staple foods,” the report states. “Formulators favor plant proteins, botanicals and fermentates over synthetic additives to satisfy label scrutiny and retailer standards.”
Asia Pacific is the leading region for functional foods in volume growth, largely attributed to rising middle class spending. North America and Europe maintained high margin growth due to robust regulatory structures and increased knowledge of health risks.
The report notes several challenge points in the functional foods market, including sensory challenges, regulatory shifts and consumer trust. Functional ingredients tend to have off-notes in taste, meaning formulators need to add in masking agents to counteract them. Further, consumer perception and regulations are constantly shifting.
Researchers at Verified Market Reports largely attribute the growth of the market to increased awareness of diet-related noncommunicable disease and the popularity of food-as-medicine solutions. Additionally. the functional foods market lends itself to personalization through AI-driven nutrition plans and bundling strategies.
The report also notes the application developments that are predicted to grow over the forecast period. These include fortified staple foods, metabolic-friendly carbs and fibers, mood and cognition foods, protein diversification and immunity support beyond winter.
