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Global Functional Food Market Outlook in 2025

2019-06-26 13:24 Wednesday

By 2025, the global market for functional foods is expected to reach $275.77 billion. During this period, its annual compound growth rate is expected to be 7.9%.


Increased demand for nutritious and fortified foods is one of the main drivers of growth. Functional components such as probiotics and omega-3 fatty acids are widely consumed through yogurt and fish oil to reduce the risk of cardiovascular disease and improve the quality of the intestinal microbiota. The trend of consumption growth in these products is expected to continue throughout the forecast period.

Another important factor in increasing demand is consumers' awareness of intestinal health. In this case, eating probiotics helps fight harmful bacteria, as well as helping the body's immune system, which in turn boosts gut health. Probiotic yogurt is the most widely available consumer product on the market, and its digestive health claims have been confirmed.

In 2018, the Asia-pacific region became the world's largest market thanks to a surge in consumer disposable income. Support from government agencies in the region has also strengthened the industry. The report also revealed other trends in the functional food market:

­ In ingredients, vitamins became the largest market segment in 2018, with revenue of $36.16 billion. The business is expected to grow at a compound annual rate of 7.7% in six years;

­ In terms of product, soybeans are expected to achieve the fastest CAGR during the forecast period. Dairy products such as milk drinks, jam and yogurt are becoming increasingly popular around the world;

­ The Asia-pacific region is expected to see the fastest growth in the forecast period. Led by countries such as China, India and Japan, the functional food market is driven by government initiatives to promote healthy lifestyles;

­ The market presents a highly competitive pattern, with a considerable number of brands participating in the market. While consolidating their position in the domestic market, large health food companies are also focusing on expanding the global market;

­ Major market players include BASF SE, Cargill, General Mills, Coca-Cola, Standard Functional Foods Group Inc., GFR Pharma and KFSU.

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