Functional Food and Beverage Market to Exhibit 10.33% CAGR till 2032; Rapid Expansion of E-commerce Platforms to Positively Impact the Market

The global functional food and beverage market size was USD 364.18 billion in 2024. The market is projected to grow from USD 398.81 billion in 2025 to USD 793.60 billion by 2032, at a CAGR of 10.33% over the forecast period (2025-2032) on account of the escalating demand for fortified foods and drinks in developing nations, states Fortune Business Insights™ in its report, titled “Functional Food and Beverage Market Size, Share & Industry Analysis, By Type (Functional Cereals & Grains, Functional Dairy Products, Functional Bakery Products, Functional Fats & Oils, and Other Functional/ Fortified Foods), Distribution Channel (Supermarkets/ Hypermarkets, Convenience Stores, Online Retail, and Others) and Regional Forecast, 2025-2032”.

The COVID-19 pandemic outbreak is anticipated to favor the functional food and beverage market growth owing to the increasing demand for nutrient-rich products to fight the infection. Adding to this are the marketing campaigns initiated by food companies to gain visibility for their offerings, which will further bolster the demand for functional drinks and foods. The market showcased an impressive growth of 11.0% in 2020, fueled by the aforementioned factors.

Danone North America Debuts with a New Line of Protein Yogurts

In December 2020, Danone North America made its debut in the functional food and drinks market with Oikos Pro, a new range of yogurt cups and drinks packed with proteins. The innovative yogurt offerings have been formulated with essential amino acids, minerals, and proteins necessary for building and maintaining muscular strength in the body. More specifically, the yogurts are infused with leucine, an amino acid chain for building muscles. Containing no sugar, the cups and drinks would be available in peach, mixed berry, strawberry, and vanilla. The entry of Danone in the functional beverages and foods space is set to make the competition in this market highly dynamic and charged up, augmenting innovation in the process.

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Increasing Focus on Health and Wellness to Support Market Growth

Concerns surrounding health and well-being have intensified over the past decade, driven by the increasing prevalence of lifestyle-induced chronic conditions. For example, according to the World Health Organization (WHO), cardiovascular disease is the number one cause of global deaths, with the lack of physical activity and unhealthy diets being the primary causative factors. Similarly, the International Diabetes Federation (IDF) estimates that by 2045 the number of diabetics in the world will reach 700 million, nearly doubling from the present levels. Functional food and beverages have emerged as the ideal solution to prevent or manage these conditions as these products are powered by natural ingredients and micronutrients, making them safe to consume. The multifarious health benefits associated with these foods and drinks are, thus, propelling the growth of this market.

Unique Collaborations by Key Players to Stoke Market Competition

Top companies in this market are entering into unique partnerships with regional entities to research and develop innovative functional beverage and food offerings for consumers. Through these collaborations, smaller players are able to access cutting-edge technologies and formulate exciting products. On the other hand, large food and beverage companies are able to gain prominence in emerging markets, where the interest in functional foods is rapidly evolving.

Industry Development:

• March 2020: OptiBiotix, a leading life sciences organization based in the UK, collaborated with Uruguay-based Granja Pocha to develop and produce a lineup of dairy products packed with the probiotic strain, Lactobacillus Plantarum (LPLDL). The company aims to capture the booming demand for functional foods and beverages in South America through this venture.

List of Key Players Profiled in this Market Report:

• Arla Foods amba (Viby, Denmark)


• Hearthside Food Solutions LLC (Illinois, United States)


• Tyson Foods Inc. (Arkansas, United States)


• General Mills Inc. (Minnesota, United States)


• Danone S.A. (Paris, France)


• The Coca-Cola Company (Georgia, United States)


• Celsius Holding, Inc. (Florida, United States)


• PepsiCo Inc. (New York, United States)


• Glanbia Plc (Kilkenny, Ireland)


• Nestle S.A. (Vevey, Switzerland)

Further Report Findings

• The supermarkets/hypermarkets segment dictated the global market with a share of 43.95% in 2024. This is mainly attributable to the fact that supermarket and hypermarket chains are targeting underserved locations and strategically enhancing the presence of functional foods and beverages on shelves.


• Asia Pacific is expected to lead the market share during the forecast period due to the spreading awareness about chronic illnesses in the region. The Asia Pacific market value stood at USD 143.70 billion in 2024 and is projected to register a CAGR of 10.82% during 2025-2032.

Table of Segmentation