IndustryARC

Global Functional Food and Nutraceuticals

Market (2013 2018)

By Types (Whole Food, Fortified Food, Dietary Supplements); Products (Energy

Drinks, Healthy Snacks, Fortified Dairy Products, Enhanced Cereals & Grains);
Components (Vitamins, Minerals, Fibers, Antioxidants, Herbs)

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TABLE OF CONTENTS
1. Functional Food and Nutraceuticals - Market Overview
2. Executive Summary
3. Functional Food and Nutraceuticals - Market Landscape
3.1. Market Share Analysis
3.2. Comparative Analysis
3.2.1. Product Benchmarking
3.2.2. End user profiling
3.2.3. Patent Analysis
3.2.4. Top 5 Financials Analysis
4. Functional Food and Nutraceuticals - Market Forces
4.1. Market Drivers
4.2. Market Constraints
4.3. Market Challenges
4.4. Attractiveness of the Industry
4.4.1. Power of Suppliers
4.4.2. Power of Customers
4.4.3. Threat of New entrants
4.4.4. Threat of Substitution
4.4.5. Degree of Competition
5. Functional Food and Nutraceuticals Market Strategic Analysis
5.1. Value Chain Analysis
5.2. Opportunities Analysis
5.3. Product/Market Life Cycle Analysis

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6. Functional Food and Nutraceuticals Market - Analysis by Food Type

6.1. Whole/Conventional Food
6.1.1. Cereal and Bakery Products, Nuts, Grains, Rice and Edible Oils
6.1.2. Fats and Sweets
6.1.3. Milk and its Products
6.1.4. Poultry and Fish Products
6.1.5. Vegetables and Fruits
6.2. Enriched/Enhanced/Fortified Food
6.2.1. Enhanced Dairy Products
6.2.2. Fortified Cereals and Grains
6.2.3. Fortified Gums
6.2.4. Functional Beverages/Energy Drinks
6.2.5. Functional/Healthy Snacks & Candies
6.2.6. Modified Oils
6.2.7. Soy Foods
7.

Functional Food and Nutraceuticals Market - Dietary Supplements Analysis

7.1. By Form
7.1.1. Capsule
7.1.2. Gel Caps
7.1.3. Liquid
7.1.4. Powder
7.1.5. Soft Gels
7.1.6. Tablet
7.2. By Ingredients
7.2.1. Amino Acids
7.2.2. Antioxidants

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7.2.3. Herbs & Botanicals

7.2.4. Minerals
7.2.5. Vitamins
8. Functional Food and Nutraceuticals Market - Functional Components and Source Analysis
8.1. By Ingredients
8.1.1. Carotenoids
8.1.2. Dietary Fibers
8.1.3. Fatty Acids
8.1.4. Flavonoids
8.1.5. Isothiocynaytes
8.1.6. Minerals
8.1.7. Phenolic Acids
8.1.8. Plant Sterols/Stanols
8.1.9. Prebiotics
8.1.10. Probiotics
8.1.11. Sulfides /Thiols
8.1.12. Soy Protein
8.1.13. Vitamin
8.2. By Source/Origin
8.2.1. From Animals
8.2.2. From Marine Life
8.2.3. From Plants
9. Global Functional Food and Nutraceuticals Market End Consumer Analysis
9.1. By Benefits
9.1.1. On Health
9.1.2. On Physiology

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9.2. By Consumer Age Group

9.2.1. Infants
9.2.2. Teenagers
9.2.3. Adults
9.2.4. Elders
9.3. By Research
9.3.1. Agriculture Commodities & Byproducts
9.3.2. Biotechnology & Functional Food
9.3.3. Dairy Products
9.3.4. Functional Ingredients
9.3.5. Marine Life
9.3.6. Nutrigenomics
9.3.7. Poultry Animals
10. Global Functional Food and Nutraceuticals Market -Geographic Analysis
10.1. Introduction
10.2.North America
10.2.1. Canada
10.2.2. USA
10.2.3. Others
10.3.South & Central America
10.3.1. Argentina
10.3.2. Brazil
10.3.3. Chile
10.3.4. Others
10.4.Europe
10.4.1. Germany
10.4.2. France

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10.4.3. Italy
10.4.4. Russia
10.4.5. Spain
10.4.6. U.K
10.4.7. Others
10.5.APAC
10.5.1. China
10.5.2. India
10.5.3. Japan
10.5.4. Singapore
10.5.5. South Korea
10.5.6. Malaysia
10.5.7. Others
10.6.ROW
11. Market Entropy
11.1.New Product Launches
11.2.M&As, Collaborations, JVs and Partnerships
12. Company Profiles (Overview, Financials, SWOT Analysis Top 5 Companies,
Developments, Product Portfolio)
12.1. Anheuser-Busch InBev
12.2. Arla Foods
12.3. Activia Drinks
12.4. Cargill Inc.
12.5. Coca Cola Co.
12.6. Dean Foods
12.7. Del Monte Foods
12.8. Dr. Pepper Snapple Group Inc.

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12.9. General Mills Inc.

12.10. GlaxoSmithKline Co.
12.11. Groupe Danone
12.12. Groupe Lactalis
12.13. H.J. Heinz Co.
12.14. Hormel Food Corporation
12.15. Hershey Co.
12.16. Kellogg Co.
12.17. Kraft Foods
12.18. Mars Inc.
12.19. McCain Foods Ltd.
12.20. Meiji Group
12.21. Mondelez International, Inc.
12.22. Nestle S.A.
12.23. Odwalla Inc.
12.24. Ostuka Pharmaceutical Co.
12.25. Pepsi Co.
12.26. Red Bull GmbH
12.27. Saputo Inc.
12.28. Unilever
12.29. Yakult Honsha Co. Ltd.
13. Appendix
13.1.Abbreviations
13.2.Sources
13.3.Research Methodology
13.4.Compilation of Expert Insights
13.5.Disclaimer

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Report Description
Functional Food remains to be an ambiguous term till today due to lack of any authoritative
definition over it. Every country has defined this term according to its needs. Basically any food
providing additional health benefits beyond the conventional food is termed as functional food.
Japan was the first country to coin this term. Sometimes it is also called as Nutraceutical or Health
Food. The recent trend of functional food includes dietary supplements containing vitamins,
minerals, herbs; which are not recommended by medical practitioners
IndustryARC estimates the global functional food market revenue for the year 2013 to be around
$175 billion. With an annual average growth rate of about 15% the global market for functional
food is forecast to exceed $230 billion by 2015. The growth in the functional food market can be
attributed to the current trend for opting out to be preventive rather than reactive on health issues.
Apart from that, the hectic life schedule and ageing population are also promoting the human
dependency on the functional or nutraceutical foods for meeting nutrition requirements daily.
Functional foods have its presence in almost every type of food type that human beings consume
right form cereals, grains, nuts, vegetables, fruits, dairy products, confectionery items and snacks to
non alcoholic beverages.
The US and Japan markets are significant in the functional food industry followed by Asia Pacific
and European markets.
More than 75% of US functional food market is dominated by global key players such as Coca Cola
Co., Dean Foods, General Mills Inc., Kellogg Co., Kraft Foods, Nestle S.A. and Pepsi Co.
Functional food fastest growth is being recorded in energy drinks, healthy snacks and breakfast
products that include cereals and grains.
By the end of 2020 the Asia Pacific functional food market will dominate globally with a CAGR
between 6-8% globally.
Analyzing the whole market landscape for Functional Food/Nutraceuticals in 2013, Industry ARC
is of the view that each sector of functional food market is dominated by different key players. Red
Bull GmbH is world leader in energy drinks having market share more than 40% while Pepsi Co.
and Kellogg Co. are world leaders in Healthy Snacks. Groupe Danone and Groupe Lactilas
dominate the healthy Dairy Products whereas Yakult Honsha Co. Ltd. is a market leader in
Probiotic Drinks.

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Functional Food Revenue ($Billion) - By Segment, 2013

80

72.0

70
60

55.0

50.0

50
40
30
20
10
0
Fortified Food

Functional
Beverages/Energy Drinks

Dietary Supplements

Source: IndustryARC Analysis

The chart above represents the global market revenue of functional food sectors, viz: Fortified
Food, Dietary Supplements and Functional Beverages/Energy Drinks for the year 2013. As it is
clear from the chart above that Functional Beverages sector alone is the significant factor in the
growth of Functional Food market. With the introduction of Probiotic Drinks, Enhanced Water
and Calorie Burning drinks, functional beverage market will surge owing to the health conscious
needs of consumers.
Estimated Market Share of Functional Food-By Regions, 2013

16.0%
35.0%

24.0%

25.0%

North America

Asia Pacific

Europe

ROW

Source: IndustryARC Analysis

As evident from the pie chart above that North America led the market for 2013. Gradually the
functional food will be under the reach of middle class men due to the reduction in prices brought
by the fierce competition among functional food manufacturers. Therefore the nutraceuticals

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market will definitely see a growth in Asia Pacific and South American countries with middle
income economy.
The leading countries in the consumption of nutraceuticals are USA, Canada, Japan, China, Brazil,
UK, Russia, Mexico and India. The expected CAGR for the growth of nutraceuticals market will
remain between 6-8% at global scale till 2020.
The recent acquisitions in the functional food industry are making its importance felt all across the
world. Hershey Co bought 80% stake in Shanghai Golden Monkey Co. Ltd. for $ 584 million while
Hormel Foods Corporation acquired Skippy brand from Unilever for $ 700 million.
Research Institutes are continuously monitoring every functional ingredient/ component that can
add value to the nutrient value of functional food. The development of plant sterols and stanols is
an undergoing research to incorporate them as functional ingredient in functional food. A
programme called as NutraMara in Ireland is looking for the feasibility of using marine plants and
species in functional food. Poultry farms have started developing modified diets for their hens in
order to increase the nutritional content of eggs i.e. Omega-3
.

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Global Functional Food/Nutraceutical Market - TRENDS

Hershey Co.

Bought 80% stake in Shanghai Golden Monkey Group Co. Ltd. For $584

million.

Hormel Foods Corporation bought Unilevers Skippy for $700 million.

Plant

Stanols and Sterols become the latest research topic for functional food

components.

Due to comparatively low costs people are opting for functional foods rather than costly
healthcare.

The expected average annual growth rate for functional food market is 15% globally.
Although Japans functional food market dominates at global level but the market for
healthy snacks was much bigger in USA, to be estimated about $30 billion.

The

latest enriching ingredient used in fortified food is antioxidant that will fuel the

global function food industry.

Anheuser-Busch InBev acquired Grupo Model SAB for $20.1 billion.

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REPORT SCOPE & STAKEHOLDERS

SCOPE
The global functional food / nutraceutical market has been segmented into different product types
like whole/conventional food, fortified or enhanced food and dietary supplements. Each of these
segments is further broken down to give an in-depth analysis of the market. Apart from it
classification is also given on the basis of functional ingredients used, source, industry and its claims
to give a good hold of overall market conditions.
The overall market is also presented from the perspective of different geographic regions and the
key countries for this industry. Competitive landscape for each of the product types is highlighted
and market players are profiled with attributes of company overview, financial overview, business
strategies, product portfolio and recent developments. Market shares of the key players for 2013 are
provided. The prominent players profiled in this report are Coca Cola Co., Dean Foods, General
Mills, Hormel Food Corporation, Hershey Co., Mars Inc. Nestle and others.
The report contains the most detailed and in-depth segmentation of the global functional food /
nutraceutical market.
STAKEHOLDERS
Poultry Material Suppliers, Sea Food Providers, Vegetables & Fruits Suppliers, Nutrient and
Supplement Suppliers, Confectionery Item Manufacturers, Cereals and Grains Suppliers, Beverage
& Chocolate Makers, Nuts Suppliers, Equipment Providers, Processing Industry, Manufacturing
Industry, Packaging Industry, IT service providers are the key stakeholders in this market.

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RESEARCH METHODOLOGY
The quantitative and qualitative data collected for the functional food/nutraceutical market report is
from a combination of secondary and primary sources. Research interviews were conducted with
senior executives and/or managers of leading functional food providers. These Key Opinion
Leaders (KOLs) were then provided a questionnaire to gather quantitative and qualitative inputs on
their operations, performance, strategies and views on the overall market, including key
developments and technology trends. Data from interviews is consolidated, checked for consistency
and accuracy, and the final market numbers are again validated by experts. The global market was
split by products, functional components and geography based on different factors like primary and
secondary sources, understanding of the number of companies operating in each segment and also
KOL insights.
We have used various secondary sources such as directories, articles, white papers, newsletters,
annual reports and paid databases such as OneSource, Hoovers and Factiva to identify and collect
information for extensive technical and commercial study of the functional food/nutraceuticals
market.
The key players in the market and its value chain were identified through secondary research and
their market opinions were also gathered in a similar way through telephonic interviews and
questionnaires. We have also studied the annual reports of these top market players. Interviews with
key opinion leaders such as directors, managers, marketing personnel were used extensively in
understanding the need and emergence of functional food/nutraceutical market
.

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THE ARC ADVANTAGE

An analytical model lies at the core of our process, ensuring logical consistency
throughout our research. We complement the model with secondary data and
interviews with industry experts to reflect the latest trends. With our final expert
validation, we provide you with only the most accurate and actionable intelligence.

THE ARC PROCESS

Analytical
Method
1. Granular
breakdown of
drivers into
factors
2. Validate all
factors in terms
of their present
impact on the
market
3. Assign weights
to these factors in
terms of their
relevance and
impact on the
market
4. Build the
Analytical Model
ANALYTICAL MODEL

Base Method

1. Get a topdown estimate of

the market
2. Follow it up
with a bottom-up
estimate of the
market
3. Check
forconsistency
and new growth
factors that are
relevant over the
next 10 Years

4. Build the Base

model
BASE MODEL

Consolidation
Method
1. Granular
breakdown of
drivers into
factors
2. Validate all
factors in terms
of their present
impact on the
market.
3. Assign weights
to these factors in
terms of their
relevance and
impact on the
market.
4. Build the
Consolidated
Model

Delphi
Verification
1. Verify the
findings of the
model with
experts from
across the value
chain
2. Verify the
findings with
players across
small and large
enterprises
3. Tweak the
model and add
new factors
4. Finalize the
ARC Model

CONSOLIDATED MODEL

ARC MODEL

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