Global Functional Foods and Natural Health Products Market to Reach US$ 32.5 Bn by 2029
The global functional foods and natural health products market is projected to reach US$ 32.5 Bn by the end of 2029. The market was valued at US$ 19.4 Bn in 2019. If these figures hold true, the market will exhibit a CAGR of 5.3% between 2019 and 2029. Regionally, North America is expected dominate the market.
However during the forecast period, Europe will exhibit more lucrative growth opportunities. In terms of functional food product, the market can be classified into bakery & confectionery, dairy, fish & eggs, canola-based, pulses-based, hemp-based, flax-based, oats-based, barley-based, soy,fats and oils , and others. Of these, bakery & confectionery will lead the global market.
North America Emerged Dominant Backed by Surging Demand for Functional Food
North America stood as the largest market for functional food and natural health products in 2019 accounting for 24% revenue of the overall market. The region is displaying a robust demand for functional foods and natural health products in comparison to functional beverages due to their increasing availability in restaurants and eating joints.
However, emerging economies in Asia Pacific and Latin America are currently offering remarkable growth opportunities for players in the functional food and natural health products market. Countries such as China, India, Brazil, and other nations that are in similar state of intense economic growth, with growing middle class population who are spending heftily on nutritional supplements and healthy foods.
As a result of this, the market currently witnesses considerably high demand for various types of functional foods and natural health products such as dairy, bakery and confectionery, hemp-based and pulses-based products.
Higher Profitability Margin
In terms of revenue contribution, functional food and natural health products sells in market is at higher price and at higher profit margin in comparison to conventional foods. This creates the favourable opportunity for functional food and natural health products market players and also hinges better economic contribution in terms of revenue for the developing nations.
Over the past decade, market of functional food and natural health products has expanded at exponential rate and due to which emerging economies has begun focusing on exports to cater the growing demand of developed economies. In addition, from raw material manufacturers to end-retailers enjoy opportunities companies to reach profit margin.
How will Growth Unfold?
Plant sterol & soy protein emerging as a vegan Ingredient: Consumers of functional foods and natural health products are seeking for vegetarian products and plant sterol is one of the product which derived from fruits, vegetables, seeds, grains etc. This product is specially gaining its demand in Asia-Pacific region as it has highest number of vegetarian consumers in world. Furthermore, soy-based, hemp-based and pulses-based functional food products is also gaining importance as it is enriched with protein and easily available raw material.
FREQUENTLY ASKED QUESTIONS ABOUT FUNCTIONAL FOOD AND NATURAL HEALTH PRODUCTS MARKET
What drives the functional foods and natural health products market?
Ans. Availability of a wide range of functional foods and natural health products has enabled consumers to have more options while buying products. Similarly, heavy advertising and promotional initiatives from functional foods and natural health products companies has increased the awareness among consumers, besides creating competition in the market.
Which factors put market players at risk?
Ans. Regulations around functional foods and natural health products vary from country to country due to which functional foods and natural health products manufacturers have to work closely with regulatory agencies and governments in order to capitalize on future market opportunities during which rules and regulations are altered.
Which region will lead the global sales of functional foods and natural health products?
Ans. North America will lead the global sales of functional foods and natural health products with market share of 24% in 2019.
Which natural health product segment offers most lucrative growth opportunities?
Ans. Omega-3 fatty acids segment is expected to show lucrative growth opportunities in the forecast period. The rising demand for food with added benefits such as functional foods and natural health products has created scope for the expansion of the segment. Which segment based on functional food product will record the highest growth?
Ans. Soy based functional food segment is expected to record highest growth over forecast period.
Market Segmentation
The global functional food and natural health products is segmented in detail to cover every aspect of the market and present complete market intelligence to
By Functional Food Product
- Bakery & Confectionery
- Dairy
- Fish & Eggs
- Canola-based
- Pulses-based
- Hemp-based
- Flax-based
- Oats-based
- Barley-based
- Soy
- Oils & Fats
- Others
By Natural Health Product
- Probiotics
- Proteins & Amino Acids
- Phytochemical & Plant Extracts
- Prebiotics
- Fibers & Specialty Carbohydrates
- Omega-3 Fatty Acids
- Carotenoids
- Natural Vitamins
- Natural Minerals
By Natural Health Product Form
- Capsules
- Tablets
- Soft Gels
- Other
By Region
- North America
- Latin America
- Europe
- APEJ
- Japan
- Oceania
- Middle East & Africa
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by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights
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