Globally, consumers are increasingly becoming more health conscious and progressively taking the sentiment of ‘you are what you eat’ to heart. This trend has had a significant impact on various industries. It has specifically influenced the Functional Foods industry, which has witnessed significant growth over the last few years in both the global and South African markets as a result of the increasing popularity of healthy lifestyles and diets.
Functional Foods is a term used to describe food which contains ingredients that provide added health benefits beyond their nutritional value and has been actively fortified/enhanced during production.
Insight Survey’s latest SA Functional Foods Industry Landscape Report 2019 uncovers the global and local markets based on the latest information and research. It outlines the relevant global and local market trends as well as the market drivers and restraints to present an objective insight into the South African Functional Foods industry environment, market dynamics and its future.
In 2018, the global Functional Foods market was valued at approximately US$161.5 billion. As illustrated in the graph below, the global Functional Foods market is forecast to grow at CAGR of 7.9% over the period 2019 to 2025 to reach an estimated value of US$275.7 billion by 2025. Regionally, Asia-Pacific dominated the global market in 2018 and is expected to witness the fastest growth over the next five years.
Source: Euromonitor Graphics by Insight Survey
The South African Fortified/Functional Packaged Food market increased by 8% in current value terms in 2018, mainly as a result of the rise in health-consciousness, which has driven the demand for foods and beverages with added nutritional value. Results from a recent survey conducted by the Heart and Stroke Foundation of South Africa indicated that South African consumers are increasingly living healthier lifestyles. For example, 74.3% of respondents indicated that they would like to change their diets in order to improve their health. 47.7% of respondents do not consume alcohol in the week in order to support their focus of living a healthier lifestyle.
Growth within the local Functional Foods market has been supported by an increase in the popularity of on-the-go consumption and convenient packaged food options. In particular, consumers’ demand for convenience has played a significant role in driving innovation and expansion of the functional food categories, with certain categories, such as fortified/functional gum, energy bars and milk formula, witnessing double digit growth in 2018.
Another trend has been the growing popularity of natural flavours and ingredients, like seeds, oils and hemp hearts, and superfoods such as the baobab fruit. Superfoods, like the baobab fruit, are ingredients which contain a significant amount of vitamin content. The baobab fruit pods, in particular, contain a chalky powder and seeds which are high in vitamins, antioxidants, protein and also have healing properties.
The South African Functional Foods Industry Landscape Report 2019 (126 pages) provides a dynamic synthesis of industry research, examining the local and global Functional Foods industry from a uniquely holistic perspective, with detailed insights into the entire value chain – from manufacturing to retailing, to a pricing analysis.
Some key questions the report will help you to answer:
- What are the current market dynamics of the global Functional Foods industry?
- What are the value and volume trends in the SA Functional Foods market (2013-2018) and forecasts (2019-2023)?
- What are the latest SA Functional Foods industry trends, drivers, and restraints?
- Who are the key manufacturing and retail players in the SA Functional Foods industry?
- What are the prices of popular SA Functional Foods products at retail outlets?
Please note that the 126-page report is available for purchase for R27,500 (excluding VAT). Alternatively, individual sections can be purchased for R10,000 (excluding VAT). For additional information simply contact us at info@insightsurvey.co.za or directly on (021) 045-0202 or (010) 140-5756.
About Insight Survey:
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