Market Trends of Functional Food Industry
Increasing Consumption of Nutrient-Enriched Food
- Consumers' understanding of the impact of nutrition on physical and mental well-being has enhanced over the years. The awareness regarding the health benefits of functional foods in protecting against diseases such as cancer, heart disease, diabetes, etc., is rising. Therefore, the positive impact of functional foods on one's health is supporting market demand and growth. The growing population and changes in food fashion among people are the major drivers for the market.
- Further, consumers are inclined toward foods containing functional ingredients to reduce the risk of certain health conditions, such as obesity, weight management, diabetes, and cardiovascular diseases. The hectic lifestyles and increasing stress have contributed to the increasing prevalence of such health disorders. Moreover, in general, people tend to consume big meals three to four times a day. This has created a negative impact on people's health. The growing awareness and shift in eating habits have led to a trend of eating multiple smaller meals during the day.
- These factors have boosted healthy foods and replaced meals with nutritional biscuits, snacks, and energy or protein bars. Also, the growing trend of on-the-go snacking is becoming extremely popular among children, owing to their need for regular meals. At the same time, adults prefer them due to their active hectic lifestyles. In addition, healthy snacking options, like energy bars, form affordable and convenient solutions for people and help keep their weight checked and regulated.
- For instance, in March 2022, Clif Bar & Company launched 'Think Snack Bars', expanding its on-the-go snacking segment for consumers. The product is made with plant-based ingredients to support health and offers snacking options with flavor and real ingredients like organic rolled oats.
- In July 2021, Clif Bar & Company introduced nut butter-filled energy bars into the Australian market via its exclusive distributor Unique Health Products. These bars were launched in three flavors: peanut butter, chocolate peanut butter, and chocolate hazelnut butter, and have been certified organic, containing 12% nut and pea protein, and free from artificial flavors and synthetic preservatives.
- Individuals are more concerned about their health and willing to pay extra for food specifically beneficial to their health. Protein is becoming a priority for consumers worldwide as it is considered 'anti-fat' and 'anti-sugar' and a high source of instant energy. Thus, consumers are increasingly seeking protein ingredients in food products termed nutrient-enriched food, which is expected to positively impact the growth of the functional food market.
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Asia-Pacific Dominates the Market
- Asia-Pacific is the major market for functional food products. Increasing consumer interest, and a better understanding of the immunity-enhancing property of proper diet and food habits, are some of the key factors driving the growth of vitamin-fortified and mineral-enriched food and beverage product sales.
- Yogurt, owing to its multifunctional attributes, holds great prominence among consumers. With a growing share of consumers avoiding certain food ingredients or attributes for health and fitness purposes, ingredient and nutrition labels are becoming major information sources for purchase decisions.
- Consequently, the awareness of food labeling is growing in Japan, as calorific values and fat contents are considered the most important information on nutrition fact labels. According to the Japanese Health And Beauty report, in 2021, 1145 products were registered as functional foods. For instance, in February 2021, Nestle Japan rolled out plant-based almond and oat milk lattes.
- Additionally, a large section of the Chinese population is lactose intolerant. Hence, consumers find plant-based yogurt a relatively better option due to its fermented nature, making it easily digestible. For instance, in May 2021, the Chinese plant-based snacking company, Marvelous Foods, launched Yeyo coconut yogurt on the e-commerce platform, Tmall. Yeyo is plant-based coconut yogurt with zero added sugar, artificial flavors, and sweeteners. The initial launch featured three stock-keeping units (SKUs), and the range includes a 'pure' sugar-free flavor, plus two yogurt-granola cups with seasonal fruit and nut granola topping for flavor and nutrition. Consumers are becoming increasingly interested in food and beverages that are less processed and have more natural and organic ingredients, as well as being environmentally friendly. Hence, all the above-mentioned factors positively drive the market in the region.
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