Functional Food Market is estimated to be valued at USD 233.37 Bn in 2025 and is expected to reach USD 372.3 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 6.9% from 2025 to 2032.
The growth of the elderly population globally is another major factor driving the functional foods market growth. In addition, the rise in fatal accidents related to intestinal inflammation is further bolstering the demand for functional foods. A rise in disposable incomes and a shift in consumer preference toward natural and healthy foods are further propelling the growth of the global functional foods market. The market is also driven by a rise in the incidence of chronic diseases, such as cardiovascular diseases and diabetes, among others.
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In terms of ingredient, the probiotics segment is expected to dominate the global with 29.2% share in 2025, attributed to the growing concern about gut health and the rising number of people with digestive issues. It is also known to maintain immunity for a healthy life.
For instance, in October 2023, Novozymes released a new probiotic that can be used in more than just dairy products. This is a big step forward for the functional food industry. The new idea makes it possible to add probiotics to foods that don't contain dairy, like drinks, snacks, and plant-based foods.
In terms of product, the dairy products segment is expected to dominate the global market over the forecast period and this is attributed to the growing demand for probiotic and prebiotic-rich food items. This includes, probiotics yogurts, functional cheeses, fortified milk, which are commonly consumer and trusted by the consumers.
For instance, in November 2025, Akshayakalpa Organic added high-protein milk to its line of functional dairy products to meet the growing demand for health-focused foods. The company wants to make more than INR 550 crore a year, thanks to people's interest in protein-rich foods
In terms of application, the sport nutrition segment is expected to hold the largest share of the market in 2025, due to rising fitness culture, growing demanding for protein-enriched foods, and beverages designed for athletes and active individuals.
For instance, in July 2025, BENEO, California Natural Color, and GELITA arrived with a new idea for a performance drink aimed at sports nutrition. The active drink made with milk has Palatinose™ for long-lasting energy, PeptENDURE® collagen peptides for endurance, and natural brown carrot for a clean label appeal. Made to help recover, boost your stamina, and burn fat,
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Asia Pacific is projected to lead the market with 47.5% share in 2025, due to the fact that there is an increasing in disposable income, cities are developing quickly, and people are more aware and health-conscious. The rise in lifestyle-related diseases like diabetes and obesity is driving up the demand for probiotics, fortified dairy, and plant-based foods. More online and retail stores are opening up in China, India, and Japan, which speeds up adoption even more.
For instance, in September 2025, FrieslandCampina Ingredients opened a Functional Food Application Center in Singapore to help create new health-focused foods and drinks. The facility will help make products that are high in probiotics, prebiotics, proteins, and bioactives, catering to demand in Asia-Pacific.
North America is expected to be the fastest growing region, owing to the growing demand for wellness focused diets such as keto and paleo. Also, the region is witnessing Low-cholesterol, high-fiber confectionery and bakery products owing to the growing health and fitness conscious population.
For instance, in October 2025, Caldic teamed up with Lonza's Capsugel to develop more functional food and nutraceutical products. The partnership uses Capsugel® technologies to deliver probiotics, vitamins, and plant extracts in new ways that help with gut health, immunity, and active nutrition. This partnership helps Caldic build up its business in Europe and other places.
In 2025, Americans anticipate seeking more functional foods because they are becoming more health-conscious, following personalized nutrition trends, and focusing on immunity, gut health, and weight loss. Clean-label, fortified, and plant-based foods are driving growth in the healthy food and drink market, which is worth more than $320 billion. This makes functional foods a popular choice for health-conscious shoppers.
For instance, in November 2025, The Cycle, a startup based in the U.S., entered the women's wellness market with functional drinks that are meant to help with hormonal balance, energy, and overall health. The brand is aimed at North America and takes advantage of the growing demand for personalized nutrition and functional drinks.
China's functional food market is booming in 2025 because more people are aware of their health, urban lifstyle, and the population is getting older and looking for ways to stay healthy. The demand for probiotics, plant-based proteins, and ingredients that boost the immune system is growing quickly. This is because the government supports wellness innovation and consumers prefer products that are clean-label and backed by science. China is at the center of Asia-Pacific's growth, which is the fastest in the world.
For instance, in March 2025, At Food Ingredients China 2025 in Shanghai, Louis Dreyfus Company (LDC) showed off a line of plant-based Vitamin E products aimed at the Asia-Pacific market. The new idea uses natural sources to give functional foods and drinks antioxidant benefits. As more people want clean-label, plant-based foods, LDC is becoming more important as a source of health-focused ingredients.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 233.37 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 6.9% | 2032 Value Projection: | USD 372.3 Bn |
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Danone, Glanbia Plc, Hearthside Food Solutions Llc, Mars, Incorporated, Meiji Co., Ltd., Nestlé S.A., Raisio Plc, Royal Frieslandcampina N.V., Sanitarium Health Food Company, And the Kraft Heinz Company |
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Almost two-thirds of consumers are interested in purchasing functional foods and beverages, according to recent study. Most buyers are looking for overall health benefits, and more than half want immune support, energy, or mental acuity. The good news is that these dietary supplements can provide added nutrients that are not easily obtained from traditional diets. In some cases, functional foods can even help to reduce the risk of certain diseases.
Fortified functional foods are a common part of a well-rounded diet and can help prevent nutrient deficiencies, protect against diseases and promote proper growth and development. For example, while eating wild fish can reduce the risks of cardiovascular disease and cognitive decline. The addition of prebiotics and probiotics in the form of oat beta-glucans, fructans and bacteria from fermented foods may also promote digestive health and enhance immune function. In addition, medicinal mushrooms such as cordyceps and reishi are being used in functional foods to improve immune function.
Growing health awareness due to growing prevalence of chronic disease with increasing geriatric population is expected to provide significant growth opportunities. Increasing health awareness among customers and rising demand for functional foods are the major factors driving the growth of the global functional food market. Rising disposable incomes in developing economies and increasing customer interest in boosting their immunity with proper nutrition are further fueling the demand for functional foods
Manufacturers are introducing new products with functional ingredients to meet the demand for these healthy foods and beverages. They are also leveraging advanced technologies such as encapsulation technology, vacuum impregnation technology, edible coating technology, and enzymes to develop novel functional foods and beverages. For example, enzymes such as lipases are used to produce certain fatty acids that can be added as flavoring agents and antioxidant esters in functional foods. Similarly, encapsulation in probiotics allows storage at ambient temperature, increases water activity, and minimizes viability loss.
Major players in the global functional foods market are adopting a variety of developmental strategies to expand their reach and profitability. For instance, in June 2025, Univar Solutions and Ingredion have deepened their strategic partnership to boost innovation in functional foods and drinks. The partnership brings together Univar's distribution and technical know-how with Ingredion's range of plant-based proteins, fibers, and sweeteners. The partnership focuses on North America and makes it easier for customers to get clean-label and health-focused ingredients.
The growing popularity of immunity-boosting food is reshaping the functional food market size in 2025. Consumers increasingly seek products enriched with probiotics, vitamins, and plant-based bioactives to strengthen immune health. This surge reflects rising wellness awareness, driving innovation and expanding the global functional food sector into mainstream nutrition.
*Definition: The term "functional foods" refers to conventional foods to which manufacturers have added a substance that has a purported health benefit. Typically, this is a nutrient or phytochemical (plant compound) that can enhance or modify the function of the body. Some common examples of functional foods include probiotic yogurts, granola bars with pre and probiotics, teas, coffee and spices with antioxidant properties, and fermented foods like miso, soy sauce, sauerkraut and kimchi.
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About Author
Sakshi Suryawanshi is a Research Consultant with 6 years of extensive experience in market research and consulting. She is proficient in market estimation, competitive analysis, and patent analysis. Sakshi excels in identifying market trends and evaluating competitive landscapes to provide actionable insights that drive strategic decision-making. Her expertise helps businesses navigate complex market dynamics and achieve their objectives effectively.
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