|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD 90.71 Billion
|
|
CAGR
(2023-2028)
|
7.21%
|
|
Fastest
Growing Segment
|
Immunity
|
|
Largest
Market
|
China
|
Market Overview
Asia
Pacific Functional
Food Market has
valued at USD 90.71 billion in 2022 and is
anticipated to project impressive growth in the forecast period with a CAGR of 7.21%
through 2028. The Asia Pacific Functional Food Market is a thriving sector that
encompasses the sales of foods fortified with additional nutrients or those that
inherently provide health benefits beyond basic nutrition. This market
encompasses a wide range of countries in the Asia Pacific region, including,
but not limited to, populous nations like China, Japan, India, South Korea, and
Australia. The diverse range of products available in this market includes
enhanced dairy products, cereals, beverages, baked goods, and dietary
supplements, all designed to promote optimal health and well-being. The growth
and expansion of this sector can be attributed to various factors, including
the increasing health consciousness among individuals, the rising demand for
longevity and vitality products among aging populations, and the continuous
advancements in food technology that enable the development of innovative functional
food solutions. As consumers become more aware of the potential health benefits
offered by functional foods, the Asia Pacific Functional Food Market is
expected to witness further growth and development in the coming years.
Key Market Drivers
Rising
Number of Product Innovations By The Major Players
The Asia-Pacific region is
witnessing a significant surge in the growth of functional foods, and a key
driver behind this phenomenon is the rising number of product innovations by
major players in the industry. As consumer awareness of the link between diet
and health continues to grow, there is an increasing demand for functional
foods that offer specific health benefits beyond basic nutrition. Major food
manufacturers and producers are taking advantage of this trend by continuously
introducing innovative products that cater to diverse health-conscious consumer
preferences. One notable area of innovation is the development of functional
foods enriched with ingredients like probiotics, prebiotics, antioxidants,
vitamins, and minerals. These components are associated with various health
benefits, such as improved digestion, enhanced immune function, and reduced
risk of chronic diseases. Major players in the industry are formulating and
promoting these products, capitalizing on the growing interest in gut health
and overall well-being.
Asia-Pacific region is
witnessing a growing trend in plant-based and alternative protein products,
addressing the needs of vegetarian and vegan consumers. These innovations are
designed not only to meet dietary preferences but also to offer health benefits
like reduced cholesterol levels and lower environmental impact. Another
noteworthy innovation is the incorporation of traditional herbal ingredients
from Asian cultures into functional foods. These ingredients, such as ginseng,
turmeric, and ashwagandha, are known for their potential health-promoting
properties, and major players are harnessing their appeal to create unique
functional food offerings.
Increasing
Disposable Income
The increasing disposable
income in the Asia-Pacific region is expected to play a pivotal role in driving
the growth of the functional food market. As economies in this region continue
to prosper, individuals are experiencing higher levels of disposable income,
which in turn is influencing their dietary choices and preferences. With
greater disposable income, consumers in asia-pacific are more willing to invest
in their health and well-being. This has led to a growing awareness of the
importance of nutrition and preventive healthcare. Functional foods, which
offer specific health benefits beyond basic nutrition, are seen as an
attractive option for those who can afford them. These products are perceived
as a way to maintain and improve health, thereby driving demand for functional
foods.
As disposable income
rises, there is an inclination towards more premium and value-added food
products. Functional foods often fall into this category, as they are
positioned as higher-quality options compared to conventional foods. Consumers
are willing to pay a premium for products that offer health benefits, and this
willingness to spend contributes to the growth of the functional food market.
Increasing disposable
income is linked to urbanization and a shift in lifestyle. In urban settings,
individuals often have busier lives and seek convenient and nutritious food
options. Functional foods that offer health advantages in a convenient package
align well with this trend, making them a popular choice among urban consumers.
The rising disposable income in the asia-pacific region is expected to drive
the growth of the functional food market by fostering greater awareness of
health and well-being, increasing the demand for premium food options, and aligning
with the convenience-oriented urban lifestyle. This economic trend represents a
significant opportunity for both domestic and international food manufacturers
to cater to the evolving dietary preferences of consumers in the region.
Growing
Risk of Various Chronic Diseases
The growing risk of
various chronic diseases in the Asia-Pacific region is expected to be a
significant catalyst for the growth of the functional food market. As the
prevalence of conditions such as obesity, diabetes, cardiovascular diseases,
and hypertension continues to rise in this region, there is a heightened
awareness among consumers about the importance of preventive healthcare and
dietary choices. The Asia-Pacific region has been experiencing a rapid shift in
dietary patterns due to urbanization, increased consumption of processed foods,
and sedentary lifestyles. These factors have contributed to the rising
incidence of chronic diseases. In response, consumers are actively seeking out
functional foods that offer specific health benefits, such as those promoting
weight management, blood sugar control, and heart health.
With the increasing risk
of chronic diseases, individuals are becoming more proactive in managing their
health through nutrition. Functional foods, fortified with ingredients like
fiber, antioxidants, omega-3 fatty acids, and vitamins, are perceived as a
convenient and accessible way to address specific health concerns. This has led
to a growing demand for functional food products that offer preventive and therapeutic
properties.
Governments and healthcare
organizations in the Asia-Pacific region are emphasizing the importance of a
healthier diet to combat the rising burden of chronic diseases. Public health
campaigns and educational initiatives are promoting the consumption of
functional foods as part of a balanced diet, further driving consumer interest
in these products. The increasing risk of various chronic diseases in the
Asia-Pacific region is expected to significantly boost the growth of the
functional food market. Consumers are increasingly recognizing the role of
nutrition in preventing and managing chronic conditions, and functional foods
are emerging as a viable and attractive solution. This trend underscores the
market's potential for growth as it continues to cater to the evolving
health-conscious preferences of consumers in the region.
Better
Product Availability Through Multiple Channels
The better availability of
functional food products through multiple channels is poised to be a major
driver in the growth of the functional food market in the Asia-Pacific region.
Accessibility and convenience are key factors influencing consumer purchasing
decisions, and improved product availability is addressing these preferences
effectively. The expansion of brick-and-mortar retail outlets, including
supermarkets, health food stores, and specialty stores, has made functional
foods more accessible to a broader consumer base. As these stores stock an
increasing variety of functional food products, consumers can conveniently
browse and purchase items that cater to their specific health and dietary
needs. The rapid growth of e-commerce in the Asia-Pacific region has
revolutionized the way consumers access and purchase functional foods. Online
platforms and delivery services provide a convenient and efficient means of
obtaining these products, often with a wider selection and competitive pricing.
This accessibility through digital channels has particularly resonated with
tech-savvy consumers and those in remote or underserved areas. The presence of
functional food products in healthcare institutions, such as hospitals and
clinics, is on the rise. Healthcare professionals are increasingly recommending
functional foods to patients as part of their treatment plans, further enhancing
the reach of these products. This endorsement by healthcare providers lends
credibility and trust to functional food offerings.
Better product
availability through multiple channels is expected to drive the growth of the
functional food market in the Asia-Pacific region. As consumers increasingly
seek convenient access to products that cater to their health and dietary
needs, the diversification of distribution channels plays a pivotal role in
meeting these demands and expanding the reach of functional foods to a wider
and more diverse audience.
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Key Market Challenges
Off
Flavors of the Functional Compounds
The issue of off flavors
associated with functional compounds is expected to be a significant obstacle
to the growth of the functional food market in the Asia-Pacific region. Off
flavors refer to undesirable tastes, odors, or textures in food products, which
can arise from the inclusion of certain functional compounds or ingredients
that may not be well-received by consumers. Functional foods often incorporate
bioactive compounds such as phytochemicals, probiotics, or omega-3 fatty acids,
which can sometimes introduce unfamiliar or strong flavors that may be
off-putting to consumers accustomed to traditional Asian tastes and culinary
preferences. These off flavors can hinder the acceptance and adoption of
functional food products, particularly in regions with deeply rooted culinary
traditions.
Consumer perception of the
taste and overall sensory experience of a food product is a crucial factor in
purchase decisions. If functional foods are perceived as unpalatable due to off
flavors, consumers may be less inclined to incorporate them into their diets,
reducing their consumption and overall market growth. Sensory preferences can
vary widely across the diverse Asia-Pacific region, making it challenging for
manufacturers to develop functional foods that cater to the tastes of various
cultural and ethnic groups. Overcoming the issue of off flavors while
maintaining the health benefits of functional compounds is a complex and costly
process for food manufacturers.
The presence of off
flavors associated with functional compounds is expected to impede the growth
of the functional food market in the Asia-Pacific region. Overcoming this
challenge will require significant research and development efforts to
formulate functional foods that not only provide health benefits but also align
with the sensory preferences and culinary traditions of diverse consumer
segments. Addressing this issue effectively is crucial for the continued
expansion of the functional food industry in this region.
Strict
Government Regulations
Strict government
regulations can be a significant hindrance to the growth of the functional food
market in the Asia-Pacific region. While regulatory oversight is essential for
ensuring consumer safety and product quality, excessively stringent regulations
can create barriers that impede innovation, limit product availability, and
increase production costs. Complex and
rigid regulatory processes can slow down the introduction of new functional
food products to the market. Manufacturers are often required to undergo
lengthy and expensive approval procedures, including safety assessments,
clinical trials, and compliance with labeling and packaging requirements. These
processes can deter companies from investing in research and development,
especially for smaller enterprises, thereby limiting the variety of functional
foods available to consumers.
Stringent regulations can
limit the use of certain functional ingredients or compounds, even if they have
been widely accepted as safe in other regions. This can result in a lack of
product standardization and innovation, as manufacturers must navigate a
complex web of regulations across different countries within the Asia-Pacific
region.
Strict labeling
requirements can pose challenges for manufacturers attempting to communicate
the health benefits of functional foods to consumers. Regulations may restrict
the use of specific health claims or require extensive scientific evidence to
substantiate claims, making it difficult for consumers to make informed choices
about these products.
Key Market Trends
Increasing
Technological Advancements in the Production
There is a growing
interest in creating functional foods as we continue to uncover the intricate
relationship between diet and human health. With the advancements in
nanotechnology, new methods and materials have emerged that hold the potential
to address many of these health-related challenges. This surge in interest can
be attributed to multiple factors, including an aging population in Western
nations, which is more susceptible to age-related diseases, and the rising
prevalence of metabolic conditions. As scientific knowledge about the impact of
diet on health becomes more readily available, especially for conditions like
heart disease, diabetes, arthritis, and obesity, the food sector faces critical
challenges. These challenges include determining optimal intake levels,
developing suitable product formulations and food delivery systems, and
identifying the bioactivity of beneficial substances to meet the future demand
for functional foods.
In particular, the
incorporation of bioactive substances into functional meals without
compromising sensory perception and enhancing the absorption of specific
ingredients are two areas where nanoscience and nanotechnology can offer
innovative solutions. By addressing these aspects, the development of
functional foods can be further enhanced, paving the way for promising market
prospects.
Increasing
Demand for Innovative and Inventive Products
The expansion of the
market for functional food and beverage items is being driven by increased
research and development efforts. Businesses are focusing on producing novel
and innovative products to cater to the growing demands of consumers. For
instance, nutrition bars and assorted functional chocolates for kids, such as
candies and toffees, are being developed to offer quick nourishment for busy
individuals and appeal to exercise enthusiasts. Additionally, as people become
more conscious of their digestive health, probiotic products are evolving to
meet their increased awareness and demand. The demand for functional meals is
experiencing a significant rise worldwide.
This growth is not only
fueled by product innovations but also by the development of novel technologies
to formulate functional food items. Various techniques, including vacuum
impregnation, encapsulation, edible coating, and enzyme utilization, are being
employed to create these functional meals. Enzymes like lipases are used to
produce fatty acids as antioxidant esters and flavoring additives. Moreover,
encapsulation of probiotics allows for storage at room temperature, increases
water activity, and minimizes viability loss. Manufacturers are actively
utilizing these technologies to create new goods that meet the evolving
preferences and demands of consumers.
Segmental Insights
Source Insights
In 2022, the Plant-based segment is projected to
dominate the Asia Pacific (APAC) Functional Foods Market. This trend is
attributed to the growing consumer awareness about the health benefits of
plant-based foods, including their high nutritional value, lower environmental
impact, and potential contribution to disease prevention. Additionally, the
rise in vegetarian and vegan populations in APAC countries, driven by ethical,
health, and environmental concerns, has further fueled the demand for
plant-based food options. Moreover, the increased focus on sustainable and
organic food products has also played a significant role in the growth of the
Plant-based segment in the APAC region. As more consumers prioritize healthy
and sustainable eating choices, the market for plant-based functional foods is
expected to continue expanding in the coming years.
Distribution Channel Insights
In 2022, the rapid
advancement of digital technology and the increasing utilization of online
platforms have significantly contributed to the growth of the Non-Store-Based
distribution channel in the APAC Functional Foods Market. With easy access, a
wide variety of choices, and the convenience of doorstep delivery, e-commerce
platforms are quickly emerging as the preferred choice for consumers seeking to
purchase functional foods. This shift in consumer behavior is driven not only
by the convenience and accessibility offered by online channels but also by the
current global health situation, which has further encouraged contactless
transactions. However, it is important to note that Store-Based channels still
hold their ground, providing hands-on customer service and the immediate
gratification of physical selection. Despite their continued significance, the
Non-Store-Based channel is projected to outperform in the market, fueled by the
growing trend of online shopping and the increasing preference for contactless
transactions. As consumers embrace the benefits of technology and seek
convenience in their purchasing journey, the Non-Store-Based channel is
expected to witness remarkable growth and reshape the landscape of the APAC
Functional Foods Market.
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Country Insights
The Asia Pacific (APAC)
Functional Foods Market is poised to experience substantial growth in the
foreseeable future. Among different countries, China is projected to establish
its dominance in the market due to several factors. Firstly, China's large population
provides a vast consumer base for functional foods. Secondly, the rising health
consciousness among the Chinese population drives the demand for these
products. Additionally, the growing disposable income in the country enables
consumers to afford functional foods as part of their daily routine.
Furthermore, the strong cultural inclination towards traditional foods with
recognized health benefits further contributes to China's leadership in the
Functional Foods Market. With these factors combined, China is expected to play
a pivotal role in shaping the future of the functional foods industry in the
Asia Pacific region.
Recent
Developments
- October 2022: Remedy Drinks introduced Remedy K! CK,
an all-natural clean energy drink now available at 7-Eleven stores throughout
Australia. Remedy K! CK comes in three delicious fruity flavors - blackberry,
lemon-lime, and mango pineapple.
- July 2022: PureHarvest, an esteemed Australian organic
and natural food company, proudly unveiled four new plant-based alt-milk
products. The PureHarvest family now includes Organic Hazelnut Milk, Organic
Cashew Milk, Australian Macadamia Milk, and Creamy Oat Milk, offering even more
options alongside the existing almond, oat, soy, rice, and coconut milk varieties.
- July 2021: Herbalife Nutrition of America Inc.
launched a high-protein iced coffee in the Asia Pacific region. This iced
coffee serves as a wholesome alternative to café and coffee shop beverages,
boasting 15 grams of protein and 80 calories per serving.
Key Market
Players
- Danone
S.A.
- Glanbia PLC
- Mars, Inc.
- Meiji Holdings Co., Ltd.
- Nestle S.A.
- Royal Frieslandcampina N.V.
- The Kraft Heinz Company
- Hearthside Food Solutions LLC
- Raisio PLC
- Sanitarium Health and Wellbeing Company
|
By Source
|
By Ingredient
|
By Application
|
By Distribution
Channel
|
By Country
|
|
|
- Prebiotics
& Probiotics
- Dietary Fibres
- Minerals
- Fatty Acids
- Carotenoids
- Vitamins
- Others
|
- Cardio Health
- Immunity
- Digestive
Health
- Sports
Nutrition
- Weight
Management
- Clinical
Nutrition
- Others
|
- Store-Based
- Non
Store-Based
|
- China
- Japan
- Australia
- Thailand
- India
- Indonesia
- South Korea
- Singapore
- Malaysia
|
Report
Scope:
In this report, the Asia Pacific
Functional Food Market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below.
- Asia Pacific Functional Food Market, By Source:
o Plants
o Animal
- Asia
Pacific Functional Food Market, By Ingredients:
o Prebiotics
& Probiotics
o Dietary
Fibres
o Minerals
o Fatty
Acids
o Carotenoids
o Vitamins
o Others
- Asia Pacific Functional Food Market, By Applications:
o Cardio
Health
o Immunity
o Digestive
Health
o Sports
Nutrition
o Weight
Management
o Clinical
Nutrition Others
- Asia
Pacific Functional Food Market, By Distribution Channel:
o Store-Based
o Non
Store-Based
- Asia Pacific Functional Food Market, By Country:
o China
o Japan
o Australia
o Thailand
o India
o Indonesia
o South
Korea
o Singapore
o Malaysia
Competitive
Landscape
Company
Profiles: Detailed analysis of the major companies present in
the Asia Pacific Functional Food Market.
Available
Customizations:
Asia Pacific Functional
Food Market report with the given market data, Tech Sci Research offers
customizations according to a company's specific needs. The following
customization options are available for the report:
Company
Information
·
Detailed analysis and profiling of additional
market players (up to five).
Asia
Pacific Functional Food Market is an upcoming report to be released soon. If
you wish an early delivery of this report or want to confirm the date of
release, please contact us at [email protected]