Functional Food and Nutraceuticals Market: Industry Trends 2015-2020

10/feb/2016 07:00:04 IndustryARc Contatta l'autore

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“It was mainly the advances in understanding the relationship between nutrition and health that resulted in the development of the concept of functional foods”


Functional food and beverages account for around 70% of Nutraceuticals products market. The major functional food ingredients include Vitamins, Carotenoids, Prebiotic, Probiotic, Poly unsaturated fatty acids and proteins. Due to fast paced lifestyles regular food intake does not meet the minimum daily requirement of nutrition for the consumers; to fulfill this consumers are shifting towards nutritional supplements and food with therapeutic functional benefits. Many major food manufacturing companies such as Pepsi co (U.S.), General Mills (U.S.), Nestle (Switzerland) are launching packaged foods fortified with active nutritional ingredients such as Vitamins, Proteins and minerals. For example General Mills, Nature Valley brand offers products high fiber content biscuits, vitamin E added nut bars and protein bars. 


In coming years demand for natural and organically derived sport nutrients ingredients will increase, because of rising awareness related to ill effects of artificial ingredients in sport Nutraceuticals and stricter doping regulation in sporting events. The authenticity and efficacy of various functional ingredients used in Nutraceuticals is a major concern for consumers. However, with evolving research and companies investment in R&D to launch innovative products, exploration and usage of various Nutraceuticals ingredients will be widely followed.


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Market Segmentation:


The Functional Food Market is segmented into six main categories, it is divided based on: Type, Benefits, Origin, Ingredients, Consumer and Geography. The different types of Functional Food include: food, beverages and supplements. The market is driven by the benefits these Functional Foods provide, which are: Health and Wellness, Disease Prevention, Fitness and Beauty. All functional food is derived from two sources, either Plants or Animals. The Market is also classified based on the Ingredients used in the synthesis, they include; Anti-oxidants, Carotenoids, Fatty Acids, Flavonoids and Minerals among others. Nutraceutical Products are also classified based on its consumer; Adults, Children and Elderly.


The last classification is based on Geography, the main regions are: Americas, Asia Pacific, Europe and Rest of the World.


·         The U.S. and Japan markets are significant in the Functional Food Industry followed by Asia Pacific and European markets.

·         In 2020, it is predicted that the U.S will still dominate Functional Food Market globally with a CAGR of 8.7%. 


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Market Growth:


The Functional Food and Nutraceutical Market is estimated to grow at an Annual Average Growth Rate of about 8.5% in the forecast period 2015-2020 according the Market Report by IndustryARC.

·         The Market Size is predicted to rise from $168 Billion in 2013 to $305.4 Billion in 2020.

·         The highest growth in the market is being recorded in the energy drinks, healthy snacks and breakfast products sectors.

One factor that accounts for this growth is the hectic lifestyle and ageing population. These factors are promoting the human dependency on the Functional or Nutraceutical Foods for meeting Daily Nutritional Requirements. The Market is also predicted to see a growth in Asia Pacific and South American countries, specifically among the middle income population.


Key Players:


Different sectors of the Functional Food Market have different key players that dominate the Market.

·         Red Bull GmbH is world leader in Energy Drinks having Market Share of more than 40%.

·         Pepsi Co. and Kellogg Co. are world leaders in Healthy Snacks.

·         Groupe Danone and Groupe Lactilas dominate the Healthy Dairy Products.

·         Yakult Honsha Co. Ltd. is a leader in Probiotic Drinks sector.


Apart from these companies, other key players in the market are; Coca Cola Co., Dean Foods, General Mills Inc., Kraft Foods and Nestle S.A. The report on the Functional Food and Nutraceutical Market by IndustryARC provides a complete list of Key Players with their Product Portfolios, Financials and Developments. 


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About IndustryARC:


IndustryARC is a research and consulting firm that publishes more than 500 reports annually in various industries, such as Agriculture, Automotive, Automation & Instrumentation, Chemicals and Materials, Energy and Power, Electronics, Food & Beverages, Information Technology, Life sciences & Healthcare.


IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications of the Market. Our Custom Research Services are designed to provide insights on the constant flux in the global demand-supply gap of markets. Our strong analyst team enables us to meet the client research needs at a very quick speed with a variety of options for your business.


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