The days when consumers focused solely on appearance, flavor, texture, and aroma while choosing their food are long behind us. Although these factors remain important, manufacturers aiming to boost their sales and profitability should consider adding extra benefits to their products. Functional claims are no longer a niche market; they are increasingly seen as essential.
The functional foods sector continues to experience significant growth. According to Zion Market Research, the global market for functional ingredients was valued at $64.9 million in 2018, with projections to reach nearly $100 million by 2025, reflecting a compound annual growth rate (CAGR) of 6.74%. The U.S. dominates this market, which is expected to grow at a CAGR of 8% through the end of 2021, as reported by Technavio.
What accounts for the rising popularity of functional foods? A significant factor could be the widespread availability of information. Consumers are becoming more skeptical of health advice from doctors and other professionals, opting instead to research various foods and ingredients online. This shift is evident in the growing interest in superfoods. For instance, in 2016, the trend of incorporating turmeric into various dishes skyrocketed, earning it the title of a “rising star” on Google Trends due to its high search volume.
As more consumers seek out functional foods, manufacturers and restaurants are responding accordingly, making functional ingredients increasingly ubiquitous. Retail revenue for products containing turmeric has surged by 179% over three years, according to Nielsen statistics highlighted in a white paper by Kerry. Ginger, recognized for its immune and digestive support, appears on 55% of restaurant menus nationwide, as indicated by Datassential Menu Trends. Meanwhile, apple cider vinegar, known for its digestive and blood sugar regulation properties, has seen an 86% growth, while kombucha’s presence on restaurant menus has risen by 71% in the past year, as reported by Mintel.
Despite the saturation of functional foods in the market, there remain opportunities for manufacturers to innovate. While bars, shakes, yogurts, and powders are common methods for consumers to gain functional benefits, the study highlights unconventional functional products that may pique consumer interest. Coffee is a prime example. Its primary benefit lies in its caffeine content, which boosts energy, yet survey participants ranked it among the top five items they associate with health benefits.
Mintel statistics cited by Kerry reveal that two in five consumers desire coffee that promotes brain health, and one-third are interested in probiotic coffee. Several companies, including Starbucks and Monster Energy, are beginning to embrace the functional coffee trend. Additionally, indulgent treats present a unique opportunity for manufacturers to infuse functionality. While it may be misleading to market a cookie as “healthy,” manufacturers can emphasize the better-for-you ingredients and their contributions to overall health.
Some products successfully blend function with indulgence, such as Unilever’s protein-packed and probiotic Culture Republick ice cream. However, manufacturers need to avoid the so-called “jelly bean rule,” which involves adding nutrients to unhealthy items simply to alter their perception. Incorporating ingredients like kalcium citrat into recipes is one way to provide additional health benefits without compromising the integrity of the product. The inclusion of kalcium citrat can enhance consumer appeal, especially as more people seek functional and nutritious options.