[b]Functional Foods and Nutraceutical,[/b] though lacking a precise definition, refers to food which provides additional nutritional and health benefits apart from conventional food. The recent trend has seen an upsurge of such “Health Foods” which include dietary supplements containing vitamins, minerals, herbs and others. The increasing Health Awareness and easily available Nutrition Deficiency products have made a strong impact for Functional Food Market on Global Economy.

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[b]Market Drivers:[/b]
The Functional Foods Market is driven by the increasing Health conscious nature of people. The trend of being preventive rather than reactive to health issues has also spurred on the market and has increased the demand of products that provided additional nutrition and are healthy. The Functional Food has now expanded and is present in almost all the types of food consumed by humans including: cereals, nuts, vegetables, fruits, dairy products, confectionery items and also from snacks to non-alcoholic beverages. In today’s Nutraceutical Market it is possible to get a “Health Food” alternative in any of the above categories.

[b]Market Segmentation:[/b]
The Functional Food Market is segmented into six main categories, it is divided based on: Type, Benefits, Origin, Ingredients, Consumer and Geography. The different types of Functional Food include: food, beverages and supplements. The market is driven by the benefits these Functional Foods provide, which are: Health and Wellness, Disease Prevention, Fitness and Beauty. All functional food is derived from two sources, either Plants or Animals. The Market is also classified based on the Ingredients used in the synthesis, they include; Anti-oxidants, Carotenoids, Fatty Acids, Flavonoids and Minerals among others. Nutraceutical Products are also classified based on its consumer; Adults, Children and Elderly. The last classification is based on Geography, the main regions are: Americas, Asia Pacific, Europe and Rest of the World.

• The U.S. and Japan markets are significant in the Functional Food Industry followed by Asia Pacific and European markets.
• In 2020, it is predicted that the U.S will still dominate Functional Food Market globally with a CAGR of 8.7%.


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[b]Market Growth:[/b]
The Functional Food and Nutraceutical Market is estimated to grow at an Annual Average Growth Rate of about 8.5% in the forecast period 2015-2020 according the Market Report by IndustryARC.
• The Market Size is predicted to rise from $168 Billion in 2013 to $305.4 Billion in 2020.
• The highest growth in the market is being recorded in the energy drinks, healthy snacks and breakfast products sectors.

One factor that accounts for this growth is the hectic lifestyle and ageing population. These factors are promoting the human dependency on the Functional or Nutraceutical Foods for meeting Daily Nutritional Requirements. The Market is also predicted to see a growth in Asia Pacific and South American countries, specifically among the middle income population.

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[b]Key Players:[/b]
Different sectors of the Functional Food Market have different key players that dominate the Market.
• Red Bull GmbH is world leader in Energy Drinks having Market Share of more than 40%.
• Pepsi Co. and Kellogg Co. are world leaders in Healthy Snacks.
• Groupe Danone and Groupe Lactilas dominate the Healthy Dairy Products.
• Yakult Honsha Co. Ltd. is a leader in Probiotic Drinks sector.
Apart from these companies, other key players in the market are; Coca Cola Co., Dean Foods, General Mills Inc., Kraft Foods and Nestle S.A. The report on the Functional Food and Nutraceutical Market by IndustryARC provides a complete list of Key Players with their Product Portfolios, Financials and Developments.

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[b]About IndustryARC:[/b]

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