So, what exactly are functional food and beverages, and why should you consider launching them?
As consumer preferences shift towards healthier lifestyles, the demand for functional foods and beverages has surged. Particularly, the functional beverages market is driving growth with a projected CAGR (2024–2029) of 6.53%, starting from an expected size of USD 213.74 Billion in 2024 (Mordor Intelligence).
Functional food and beverages lack a singular definition. However, FAO defines functional foods as “a foodstuff that provides a health benefit beyond basic nutrition, demonstrating specific health or medical benefits, including the prevention and treatment of disease”. Other definitions also stress the health benefits that food and beverages have either in preventing diseases and/or boosting health.
Understanding the benefit spaces of gut health, immunity and energy?
As we progress through this blog, we will explore three core benefit areas—gut health, immunity, and energy—which have gained considerable traction in recent years, accounting for over 50% of claims on functional beverage launches between 2018 and 2022 (Innova Market Insights). Other benefits spaces which can be interesting for beverages include, but are not limited to, memory and cognitive function, hydration, beauty and sleep, while weight management is a very popular space for food.