Functional Food Industry: Market Research Reports, Statistics and Analysis

Key Market Segments

• By 2013, global demand for nutraceutical ingredients is expected to rise over 6% a year to make this market segment worth almost $22 billion, close to 10% of the overall world nutritional product market, which is worth over $235 billion. Star products within this category include soy protein nutrients, omega-3 fatty acids, lutein, probiotics, glucosamine, minerals such as magnesium and calcium, and the increasingly popular coenzyme Q10.

• The world probiotics market, which is still in the early stages of its development, is expected to reach almost $29 billion in sales by 2015, according to Global Industry Analysts. The market is driven by changing health trends towards consumer responsibility for preventative healthcare. Ingredients such as probiotics are gaining increased recognition due to their health benefits. Probiotics are used to promote optimal digestion, prevent allergies, reduce cholesterol and treat inflammation.

• The global cartenoids market is worth close to $1.2 billion, according to Freedonia. The market is predicted to show close to 2.5% yearly growth to reach almost $1.5 billion in 2018. Beta-carotene represents more than 20% of the market at present and is predicted to reach almost $335 million by 2018, growing by more than 3% a year. Lutein is worth slightly less at present and predicted to reach almost $210 million in the same period, growing at over 3.5% a year.

Regional Market Share

• The leading regional markets in the global function food and drinks industry are: the US, the EU and Japan, according to research from Global Industry Analysts. Growth is particularly rapid in Asia-Pacific where potential for expansion is vast. Growth potential in other countries such as China, India, Australia, Malaysia and Korea is also strong.

• The US is the world leader on the global nutraceutical ingredient market. India and China are expected to show the fastest growth in the nutraceutical market, fuelled by economic growth and higher disposable incomes. China is the biggest producer, supported by a strong fine chemicals industry.

Market Outlook

With heart disease and other chronic illnesses affecting an ever-expanding percentage of the population, consumers are increasingly aware of health issues and preventative measures they can take to lesson their chances of falling ill. Functional foods are particularly popular for their heart-health benefits, with cholesterol-lowering products topping shopping lists.

Snack foods containing antioxidants and energy boosting ingredients are performing well in markets across the EU, North America and Southeast Asia. Organic functional foods are poised to become a leading product segment over the years to come.

Herbal and non-herbal extracts demand is predicted to expand at over 6% yearly to reach well over $2 billion in 2013, according to research from Freedonia. This segment will be weighed down by investigation into health claims at odds with scientific evidence. Herbs that will continue to generate significant sales include green tea for weight loss and cancer prevention, garlic to boost heart function, and black cohosh to treat symptoms in postmenopausal women. Glucosamine will lead the non-herbal extracts category as a popular choice for arthritis sufferers.

Leading Industry Associations

• American Dietetic Association www.eatright.org
• British Dietetic Association www.bda.uk.com
• Canadian Health Food Association www.chfa.ca
• International Food Information Council Foundation www.foodinsight.org