US Functional food market up 31% since 2006, says new report

Taking a strict definition for functional food as “products offering specific health claims only”, the company’s new report, Future Directions for the Global Functional Foods Market​, indicates that the current US market was worth an impressive $7.5 billion last year.

This is a 31 percent increase on the 2006 market, said the company.

Using the same definition, the global market was valued at $24.2 billion.

US breakdown​

“The US functional foods market differs from its counterparts in other areas of the world due to the high popularity of dietary supplements amongst sections of the population,”​ says the report. “This has led to high levels of awareness regarding the anti-cancer properties of certain botanicals.​

“Another major market driver has been the use of permitted FDA structure-function claims associated with certain ingredients and medical conditions, particularly within the heart health sector. This has been evidenced by the frequent usage of health claims relating to the cholesterol-reducing properties of oatmeal, for example.”​

The main health outcomes driving the market are said to be anti-aging, heart health, bone and joint health, weight management, gut health, energy/mood enhancing, and immune function.

While dairy is the biggest segment in the global market, representing 38 percent of the market, the biggest segment in the US is functional beverages. Including energy and mood beverages, functional drinks account for 50 percent of the US functional food market, says the report, followed by cereal products, like breakfast cereals.

Look south for future growth​

According to the report, many of the future opportunities in the global functional foods market will occur in “less developed parts of the world, examples of which include parts of Latin America and the Asia-Pacific region”​.

“The beverage category is expected to remain a major driver of the US market, especially given the recent success of the energy drinks and energy shots sectors.​

“The increasing penetration of functional varieties in sectors such as fruit juices and ready-to-drink (RTD) tea beverages is also expected to aid further development of the category.”​

New ingredients​

New ingredients are identified as a key driver of growth and the report states that much of the future growth is dependent on the rate at which new ingredients emerge, and, has been seen in the past, many innovative ingredients are established first in the Japanese market.

How much?​

A wider definition of functional foods obviously incorporates a wider selection of products, and some estimates have placed the US market at $30 billion, or 5 percent of the total food market.

The Leatherhead report, Future Directions for the Global Functional Foods Market​, is available to purchase here​.