According to Custom Market Insights (CMI), The Global Functional Food and Beverage Market Size was valued at USD 290 billion in 2021 and is estimated to reach USD 602 billion by the end of 2030 at a CAGR of approximately 12.38% during the forecast period 2022-2030. An increase in the number of wellness centers and the developing tendency of people toward a sound way of life is the key development drivers of the functional food and beverage market

The growing support of individuals in sports at the public and global level will probably expand the number of competitors, thus speeding up the development of the supplementary drinks and foods market. Furthermore, utilitarian refreshments handling organizations are sending off beverages with low calories and fats and adding natural products to enhance the quality of the final product. As a result, refined tastes and caffeinated drinks are developed for clients in sports. Subsequently, specialty stores and hypermarkets significantly contribute to the market’s development.

Browse the full “Functional Food and Beverage Market Size, Trends and Insights By Product Type (Cereals and grains, Dairy products, Bakery products, Fats and oils, Others), By Distribution Channel (Conventional stores, Hypermarkets/Supermarkets, E-commerce platforms, Others.), and By Region – Global Industry Overview, Statistical Data, Competitive Analysis, Share, Outlook, and Forecast 2023–2032” report at

Market Dynamics


Ever since the outbreak of the COVID-19 pandemic, many people across the world have made major alterations in their lifestyles and diet. The demand for functional foods and beverages has increased drastically as healthcare professionals promote these products to a great extent. These products play an important role in boosting the immunity of consumers, and hence the demand for these products will continue to grow in the coming years. Fruits and vegetables play an extremely important role in fighting coronavirus, and it also helps boost immunity, due to which the need for these products has grown to a great extent.

 The number of startups that have entered the market is providing nutrient-rich drinks and foods of a specialized nature. Herbs, botanicals, and proteins infused in the products will help market growth. Sugar-free drinks, which are extremely good for diabetic patients, will also help the market’s growth. The availability of such products in developed nations will provide good opportunities for market growth. 


Using herbs and botanical extracts in manufacturing functional foods and beverages will hamper the market’s growth. Using such ingredients provides a bitter taste to food products and drinks. A critical factor considered when making purchases is the product’s taste; when the products offer a bitter taste, the sales of such products will drop. Even though consumers across the globe are seeking healthier options, products that are good in flavor will be in greater demand. Undesirable flavors will hamper the growth of the market in the coming years. 


Advanced technologies in formulating functional food and beverage will provide great opportunities for market growth during the forecast period. Technological innovations like encapsulation and nanoencapsulation will play a significant role in the market’s growth during the forecast period. The taste of different types of food products is enhanced due to the use of encapsulation technology.

Encapsulation technology also plays a significant role in improving the fragrance of the taste of products that have a bad odor due to the content of Omega 3 fatty acids. Technological advancements have recently provided many ingredients for functional foods and beverages. The use of liposome technology is also used in the production of probiotics and other products, which have many health benefits. These technological innovations will provide major opportunities for market growth in the coming years.


Increased exposure to information has created more demand for functional food and beverage across various nations of the world, but when it comes to the consumption of particular ingredients, the acceptance from consumers is less for such food products. When it comes to the consumption of fiber, vitamins, and minerals, which are functional ingredients, most consumers do not have any issues, but when it comes to the products that have other available properties, being prebiotics, probiotics, flavonoids, etc., the consumption of such products drops. Manufacturing such products is also a strenuous job as the production processes for functional foods prove to be a major challenge in the market’s growth.

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Report Highlights 

Based on the type, the functional dairy products segment will have a larger market share and generate maximum revenue than the other segments in the coming years. Increased purchasing power at the hands of consumers in developed and developing economies worldwide will lead to this segment’s growth in the coming years. The cereals and grains segment will also have a good market share in the coming years. Therefore, this segment will generate maximum revenue during the forecast period. 

The fortification of food will play a significant role in the growth of this market during the forecast period. In recent years, the sales of functional beverages and fares have increased through online platforms. Many manufacturers have offered their products on eCommerce platforms as this is a choice of many consumers worldwide. The sales of these products through hypermarkets and supermarkets will grow in the coming years as dedicated shelves are offered for the functional foods and beverages in such stores. 

 Regional Snapshots

North America is the greatest market for functional food and beverage, owing to the huge demand from the people. The region is seeing a development in the omnipresence of zero-calorie, zero-sugar, and low-carb-sensitive beverages. Functional foods and drinks contribute to people’s overall dietary and calorie demands. The presence of key market players in the region has emerged as a major reason for the market’s growth. The European market has also experienced tremendous growth owing to the increasing demand among youngsters for functional foods and beverages. Increasing awareness among people regarding health has also boosted the market tremendously.

Key Market Players

  • PepsiCo Inc., 
  • The Coca-Cola Company 
  • Kraft Heinz Company 
  • Nestle S.A     
  • Red Bull GmbH
  • The Hain Celestial Group
  • Universal Nutrition
  • Suntory Holdings Ltd
  • Fonterra Co-operative Group Limited

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