Food & Climate – Yousef Ahmed:
The concept of “food as medicine” has transformed from a niche issue addressed by a small number of consumers into a mainstream phenomenon. Leading this trend is what’s known as “functional foods” which has seen strong growth in the market in recent years.
According to a new report published by Allied Market Research, titled, “functional food market” was valued at $172.6 billion in 2023, and is projected to reach $237.8 billion by 2033, growing at a CAGR of 3.4% from 2024 to 2033.
Functional foods are items that provide health benefits beyond basic nutrition due to their specific bioactive compounds or ingredients. They are categorized on the basis of their health-promoting properties, such as probiotics, prebiotics, antioxidants, omega-3 fatty acids, and fortified foods with added vitamins and minerals, according to a report seen by “Food & Climate” platform.
These foods offer diverse uses, such as improving digestive health, boosting immunity, reducing the risk of chronic diseases such as heart diseases and diabetes, enhancing cognitive function, and supporting weight management. Functional foods have become popular as consumers seek ways to optimize their health through dietary choices, contributing to a growing market of products tailored to meet various health needs.
Demand for the functional food market
Increase in consumer awareness of health and wellness plays a pivotal role in driving the demand for the functional food market. As consumers become more educated about the relationship between diet and health outcomes there is a surge in preference for foods that offer additional health benefits beyond basic nutrition.
Functional foods, enriched with vitamins, minerals, antioxidants, probiotics, and other bioactive compounds, appeal to health-conscious consumers seeking convenient ways to improve their overall well-being. Moreover, this awareness is particularly evident among demographics concerned with managing chronic conditions such as obesity, diabetes, and cardiovascular diseases, where functional foods complement medical treatments and support preventive health measures.
But the competition from traditional foods poses a significant restraint on the functional food market due to established consumer preferences and perceptions. Traditional foods, such as staple diets and familiar snacks, often dominate consumer choices based on taste, affordability, and cultural familiarity. Many consumers perceive functional foods as niche products or view their health benefits skeptically compared to traditional options. Moreover, this skepticism deters widespread adoption, particularly among segments less inclined to prioritize health benefits over taste or cost.
In addition, traditional foods benefit from extensive market penetration and brand loyalty built over decades, making it challenging for functional foods to compete effectively. The established infrastructure and distribution networks of traditional food manufacturers provide them with cost advantages and operational efficiencies that functional food companies may struggle to match. Furthermore, traditional foods typically have well-established supply chains and economies of scale that enable them to maintain competitive pricing, further posing a barrier to the broader adoption of functional foods, which is perceived as premium or niche products. Thus, all these factors limit the growth of the functional food market, according to “Newstrail.com“.
More popular
Probiotic foods like kefir, sauerkraut, and kimchi are becoming more popular because they help to preserve gut health and boost the immune system. Prebiotic fibers found in garlic, onions, and chicory root are also being incorporated into foods to promote a healthy gut flora.
Kefir is a fermented milk drink with an acidic taste and creamy consistency produced by bacterial fermentation of kefir grains.
Functional foods for brain health are also becoming increasingly popular. Foods such as omega-3 fatty acids in flaxseeds and chia seeds, and adaptogens such as ashwagandha are being added to improve cognitive function and reduce stress. Also, foods rich in polyphenols such as blueberries and dark chocolate have been found to possess neuroprotective effects.
Customers are searching for functional foods that provide long-lasting energy and improve physical performance. Foods that have B vitamins, MCT oil, and natural caffeine sources like green tea are in high demand by individuals who need to increase their energy levels and endurance.
Functional foods targeted for the needs of women are gaining popularity, with focus on reproductive, bone, and hormonal health. Foods such as maca powder, collagen peptides, and folate-fortified snacks are being formulated to address every area of a woman’s life, from pregnancy to menopause.
Social media platforms, particularly TikTok, are also making functional foods increasingly popular. Examples like dessert-for-breakfast puddings, created with healthy ingredients like chia seeds and oats, are gaining traction among health-conscious consumers.
Celebrities are now venturing into functional food markets. Khloe Kardashian, for instance, recently launched a protein-enriched line of popcorn under the business name Khloud Foods. The product contains 7 grams of whole protein per serving and is marketed as a healthy and gluten-free snack, according to “The Guardian“.