Functional food megatrend: key drivers
- Functional foods are accelerating globally with market growth surpassing $793bn
- Metabolic health trends surge as consumers seek natural GLP‑1 alternatives
- Younger shoppers drive performance nutrition and beauty‑from‑within ingredients demand
- Older consumers seek products supporting longevity through bone and heart health
- Mood wellness rises with interest in mushrooms, lavender and magnesium fortified drinks
Functional food is not just another trend. It’s a megatrend, permeating almost every category in the industry – from beverage to dairy, snacking to confectionery.
The food and drink industry is racing to keep pace, and that momentum isn’t expected to slow. Fortune Business Insights predicts the global functional food and beverage market will surpass $793bn (€670bn) by 2032.
But success won’t come from launching products and hoping they resonate. Manufacturers must stay closely attuned to consumer needs and be ready to meet them head-on.
So what are the biggest consumer need states today, set to drive the next wave of functional food and drink innovation?
‘Nature’s Ozempic’: Ingredients for metabolic health
For anyone keeping an eye on food and beverage trends, it will come as no surprise that appetite suppressants are having a moment. GLP-1 drugs have taken the world by storm, with a growing number of consumers using them, both on and off-label, to better manage their weight and associated health risks.
But not everyone wants to take pharmaceutical drugs or risk potential side effects, and given the eye-watering price point of GLP-1s without insurance, not everyone can. They’re inaccessible for a “significant percentage of the population”, explains Emma Schofield, associate director of global food science at market analyst Mintel.
That’s why newfound efforts are going into identifying so-called “nature’s Ozempic”: natural food ingredients that may mimic some of the benefits of GLP-1 drugs. Examples include berberine, chromium and fibre, explains Schofield. Chromium, a mineral, has an authorised EU health claim for blood glucose control; berberine is a plant compound thought to improve insulin sensitivity and reduce fat storage; and dietary fibre is well-known for its satiating effects.
Performance and aesthetic benefits
The functional food and drink trend has well and truly hit performance nutrition; it’s in its DNA. But the rise of the “everyday athlete” is propelling the trend, particularly among younger consumers.
Factors like age, gender, and favourite activities play a big role when it comes to functional ingredients. Younger consumers are more likely to be engaged in gaming, or buy products designed for sports nutrition. Whether playing for hours in front of a screen, or putting in time at the gym, “performance” represents a big and growing need state for functional nutrition.
It’s also younger consumers helping to drive other aesthetic aspects of health, explains Mintel’s Schofield, such as “beauty from within”. In essence, this trend bridges nutrition and personal care, with growing importance placed on ingredients that improve skin, health and nail health from the inside out. Ingredient examples could include collagen, electrolytes, or omega-3s.
Healthy longevity for older consumers
At the other end of the spectrum are older consumers – those within the fast-growing ageing population. These shoppers have very specific needs, which means food and beverage businesses have very specific briefs.
Bone, joint and heart health are important to senior consumers, explains Schofield. So food and drink products that can cater to these health needs would be welcome. Personalised nutrition is another growing trend among older consumers, both in food and drink, as well as in supplements, observes Mintel.
There is also growing opportunity to serve women’s health, whether that be in easing symptoms of perimenopause or menopause.
Mind, mood and emotional wellbeing
Until recently, food and drink benefits have largely focused on achieving physical wins, such as immunity or digestion. But more recently, analysts have observed growing focus on what we can’t always see: mood and emotional wellbeing.
The trend responds to shopper demand, explains Mintel’s Schofield: “It’s an important trend that we’ve seen quite a lot of consumer interest in.” Recently, the market analyst observed some noteworthy launches in functional drinks, using ingredients like medicinal mushrooms, lavender, or magnesium – the latter of which can carry an authorised health claim for psychological health.
Functional ingredients are also infiltrating drink products that align with the rising popularity of alcohol avoidance in younger consumers. There’s growing potential for beverage makers here, too, suggests Schofield, to deliver some of the perceived benefits of alcohol – without the downsides.
Want to learn more about functional ingredients?
Don’t miss our Positive Nutrition broadcast dedicated to Functional Ingredients on the Health Frontline. Hear from experts at ZOE, Oatly, Mintel and more - broadcast 19 March.
