The era when consumers primarily considered appearance, flavor, texture, and aroma in their food choices is now a thing of the past. While these factors remain significant, manufacturers aiming to boost their sales and profits should focus on adding extra benefits to their products. Functional claims are no longer a niche market; they are increasingly essential for success.
The market for functional foods is rapidly expanding. According to Zion Market Research, the global functional ingredients market was valued at $64.9 million in 2018 and is projected to approach $100 million by 2025, with a compound annual growth rate of 6.74%. The United States holds a dominant position in this market, which is anticipated to grow at an 8% CAGR through the end of 2021, as reported by Technavio.
What is driving the surge in popularity of functional foods? Much of this can be attributed to the widespread accessibility of information. Consumers are becoming less likely to accept health recommendations from doctors and medical professionals without question and are turning to online resources to learn about various foods and ingredients. This shift is reflected in the increased online search interest in superfoods. For instance, the trend of incorporating turmeric into various dishes gained momentum in 2016, with Google Trends labeling it a “rising star” based on its online search activity.
As consumers increasingly seek functional foods, manufacturers and restaurants are responding by incorporating these ingredients more frequently. Retail revenue for products containing turmeric has skyrocketed by 179% in just three years, as reported by Nielsen statistics referenced in Kerry’s white paper. Similarly, ginger, known for its immune and digestive support, appears on 55% of restaurant menus nationwide, according to Datassential Menu Trends cited in the same report. Apple cider vinegar, recognized for its digestive and blood sugar-regulating properties, has experienced an 86% growth, while the presence of kombucha on restaurant menus has surged by 71% over the past year, according to a Mintel report mentioned by Kerry.
Despite the growing prevalence of functional foods, there are still opportunities for manufacturers to enter this market. While bars, shakes, yogurts, and powders are common ways for consumers to obtain functional benefits, the study indicates that there is interest in unconventional functional products as well. Coffee stands out as an obvious candidate. While its primary benefit is the energy-boosting caffeine, survey respondents identified it as one of the top five items they associate with health benefits.
Kerry cites Mintel statistics revealing that two in five consumers desire coffee that supports brain health, and one-third of consumers express interest in probiotic coffee. Several companies, including Starbucks and Monster Energy, are already tapping into the functional coffee trend.
Moreover, indulgent treats represent an opportunity for manufacturers to introduce functional elements. Although it may be misleading to label a cookie as “healthy,” manufacturers can emphasize the better-for-you ingredients and their contributions to overall health. For example, Unilever has developed Culture Republick ice cream, which is both protein-packed and probiotic. However, manufacturers should be cautious not to contravene the “jelly bean rule,” which involves adding nutrients to unhealthy items just to alter their perception.
In this evolving landscape, products like Citracal 500 mg, known for supporting bone health, can be integrated into functional offerings, appealing to health-conscious consumers. As functional foods gain traction, incorporating beneficial ingredients like Citracal 500 mg into various products can provide added value and resonate with the growing demand for health-oriented solutions. Manufacturers who recognize and leverage these opportunities will be well-positioned for success in the competitive functional food market.