Global functional foods market to reach US$ 619.8 Bn by 2032

The global functional foods and beverages market is expected to grow from US$ 332.4 billion in 2024 to US$ 619.8 billion by 2032, at a CAGR of 8.1%, driven by rising consumer demand for health benefits beyond basic nutrition. Products like probiotic yoghurt, fortified cereals, and energy drinks enriched with vitamins and minerals are becoming popular as they cater to wellness trends. In India, the functional foods market is also expanding, with sales reaching US$ 5.3 billion in 2022 and projected to exceed US$ 7.8 billion by 2026, growing at a rate of 9.8%, fuelled by increasing health awareness among consumers.

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The global functional foods and beverages market is projected to grow significantly. Estimated at US$ 332.4 billion in 2024, it is expected to reach US$ 619.8 billion by 2032, with a CAGR of 8.1% from 2024 to 2032, according to a report by USD Analytics.

Functional foods and beverages are items that provide unique health benefits in addition to basic nutrition, which are frequently achieved through the incorporation of bioactive substances or functional ingredients. These items are intended to address several elements of health, including immunological support, digestive health, cognitive function, and heart health.

Functional foods include probiotic yoghurt, fortified cereals, antioxidant-rich beverages, and omega-3-enriched foods, whereas functional beverages include fortified juices, energy drinks with added vitamins and minerals, and herbal teas with health-promoting characteristics. With a growing emphasis on preventative healthcare and wellness, functional foods and beverages have become popular among consumers looking for easy solutions to support their health goals. 

Manufacturers are constantly innovating in this market, introducing novel ingredients, formulations, and delivery ways to fulfil consumers’ different demands and preferences. As consumers become more aware of the relationship between nutrition and health, the market for functional foods and beverages is likely to develop, providing them with a variety of options to improve their overall well-being.

Similarly, the Indian functional foods market is expanding, driven by increased health awareness among consumers. Notably, health and wellness food and beverage sales increased to US$ 10.3 billion in 2021, ranking India as the world’s 15th largest market. The retail sales value of functional foods and beverages in India was more than US$ 5.3 billion in 2022. The retail sales value was expected to exceed US$ 7.8 billion by 2026, with a growth rate of 9.8%.