The global market for functional foods and beverages will be worth $324.4 billion (€332.7 billion) by 2027, a new report from ResearchAndMarkets has found, growing at a CAGR of 8.4% between 2022 and 2027.
Currently, the market is worth $216.4 billion (€221.9 billion), the study found.
In terms of functional foods, the market is set to grow from $102.3 billion in 2022 to $150.8 billion by 2027, with a compound annual growth rate (CAGR) of 8.1% for the period, ResearchAndMarkets said.
The functional beverages market, meanwhile, is expected to grow from $114.0 billion in 2022 to $173.7 billion by 2027, with a compound annual growth rate (CAGR) of 8.8%.
Functional Foods And Beverages
Functional foods and beverages include products that address gut and digestive health, cardiac health, cognitive health, general wellness and immunity, weight management and other functions, and contain ingredients such as amino acids, carotenoids, dietary fibers, fatty acids, phytochemicals, vitamins and minerals.
According to ResearchAndMarkets, the global market for said products is facing a number of challenges, including 'high prices for functional food and beverage products and a lack of awareness about functional food and beverages'.
At the same time, however, the market is seeing 'exponential growth', meaning there are many potential opportunities to get a foothold in the segment, with established players also joining new, up and coming market entrants.
A recent report by GlobalData found that kombucha (pictured), kefir and alcohol-free beverages are gaining prominence among a healthier-minded shopper base, in the same way that kale and quinoa have in the past.