2021
9
US Functional Ingredients in Food and Drink Market Report 2021
2021-02-19T03:03:53+00:00
OX1040951
3695
134642
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Report
en_GB
“Functionality in food and drink has found its place within consumer routines, and curiosity in how diets can further support both physical and mental health is high, particularly among younger…

US Functional Ingredients in Food and Drink Market Report 2021

£ 3,695 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the U.S Functional Ingredients in Food and Drinks markets including the behaviours, preferences and habits of the consumer.

Consumer views of health, wellness and nutrition are constantly evolving, certainly personal and often depend on age and life stage. The functionality of food and drink can be inherent, and also subject to interpretation by consumers of different generations and needs. Yet consumers of all ages are current users of functional foods or drinks in addition to expressing interest in exploring new benefits and ingredients that deliver them.

The market is poised for further expansion of specialized products from brands of all types, whether it’s through reaching into new categories, formulating for function or recognizing the inherent benefits in existing products. From energy to relaxation, heart health to immunity, the future of functionality will focus on total wellbeing initiatives that have been shaped and accelerated by the COVID-19 pandemic.

 

Quickly understand

  • The impact of COVID-19 on consumer behavior and functional ingredients.
  • Consumer approach to diet.
  • Functional ingredient innovation in food and drink.
  • Consumer experience and interest in functional benefits and ingredients.
  • Consumer attitudes towards functional ingredients.

Covered in this report

Claims and ingredients included: Adaptogens, Anti-aging, Beauty, Bone Health, Brain & Nervous System, Cannabis, Cardiovascular, Detox, Digestive, Energy, Eye Health, Omega-3, Protein, Skin, Nails & Hair, Slimming, Stress & Sleep, Vitamins and Minerals, Weight & Muscle Gain and more.

Expert analysis from a specialist in the field

Written by Alyssa Hangartner, a leading analyst in the food and drink sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Functionality in food and drink has found its place within consumer routines, and curiosity in how diets can further support both physical and mental health is high, particularly among younger consumers. Increased emphasis on improving lifestyle habits and the definition of wellness on a personal level has left plenty of room for food and beverage innovation to meet consumers’ needs where they need it most.


Alyssa Hangartner

Research Analyst

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Definition
          • COVID-19: Market context
          • Executive Summary

              • Top takeaways
                • Market overview
                  • Figure 1: Repertoire of functional benefit usage, December 2020
                • Impact of COVID-19 on functional food and drink
                  • Figure 2: Short-, medium- and long-term impact of COVID-19 on functional food and drink, February 2021
                • Opportunities and Challenges
                  • Reemergence
                    • Figure 3: Functional benefit usage, December 2019-20
                    • Figure 4: Functional ingredient attitudes, December 2020
                  • Recovery
                    • Figure 5: Functional benefit experience and interest, December 2020
                    • Figure 6: Future interest in functional ingredients, by generation, December 2020
                • Target Audience – Key Takeaways

                  • Functional innovation has room to grow
                    • The target market for functional innovation is broad
                      • Immunity support has long-term potential
                      • Target Audience for Functional Innovation

                        • Function has a solid foundation, and room to grow
                          • Figure 7: Repertoire of functional benefit usage, December 2020
                        • Millennials, Gen Z use the most functional products
                          • Figure 8: Repertoire of functional benefit usage, December 2020
                        • Prioritize taste in addition to function
                          • Figure 9: Consumer approach to eating, December 2020
                        • A generational shift points to opportunity for function
                          • Figure 10: Consumer approach to eating, by generation, December 2020
                      • Regularly Consumed Food and Drinks

                        • Comforting foods find increased consumption
                          • Figure 11: Regularly consumed foods, December 2019-20
                        • Leverage the inherent functionality of established food categories
                          • Figure 12: Regularly consumed foods, by generation, December 2019-20
                        • Consumers seek out “old school” functional beverages
                          • Figure 13: Regularly consumed beverages, December 2019-20
                        • Millennials, Gen Z lead specialty drinks consumption
                          • Figure 14: Regularly consumed beverages, by generation, December 2020
                        • Impact of COVID-19 on food and drink
                          • Figure 15: Short-, medium- and long-term impact of COVID-19 on functional food and drink, February 2021
                        • Lockdown
                          • Reemergence
                            • Recovery
                              • COVID-19: US context
                                • Learnings from the last recession
                                • Functional Innovation in Food

                                  • Functional products make up a small fraction of recent innovation
                                    • Figure 16: Top functional claims within food and drink innovation, 2020
                                  • Functional claims need a nudge beyond bars and cereal
                                    • Figure 17: New innovation containing functional claims by food subcategory, 2020
                                  • Snack innovation replaces yogurt to dominate functional landscape
                                    • Figure 18: Percent change in functional product innovation by food subcategory, 2020
                                • Functional Innovation in Drink

                                  • Specialty beverages carry the bulk of functional innovation
                                    • Figure 19: New innovation containing functional claims by drink subcategory, 2020
                                  • Beverage blurring lands in CSD space
                                    • Figure 20: Percent change in functional product innovation by drink subcategory, 2020
                                • Market Factors

                                  • Consumer confidence remains stifled
                                    • Figure 21: Consumer Sentiment Index, November 2019-December 2020
                                    • Figure 22: Consumer perception of food and drinks with functional claims, January 2021
                                  • Shifting demographics poise functional products for growth
                                  • Market Opportunities

                                    • Function meets flavor to support mental and physical wellness
                                      • Figure 23: Functional ingredient usage, by consumer approach to eating, December 2020
                                    • Diversify product development to cast a wide net
                                      • Figure 24: Functional ingredient experience and interest, by generation, December 2020
                                    • Use experts to build trust, and value
                                      • Figure 25: Functional ingredient attitudes, by generation, December 2020
                                    • Immunity-boosting innovation is still an industry white space
                                      • Figure 26: Usage of products with functional claims, by functional ingredient attitudes, December 2020
                                  • Companies and Brands – Key Takeaways

                                    • Traditional medicine is featured through natural ingredients
                                      • Mental health is prioritized
                                        • Next generation innovation refreshes existing functionality
                                        • Now – Product Development

                                          • Digestive support continues to proliferate
                                            • Figure 27: Percentage of functional product innovation containing a digestion health claim, 2014-21
                                            • Figure 28: Innovation containing prebiotic fiber
                                          • Anti-inflammatory ingredients rooted in traditional medicine
                                            • Figure 29: Innovation featuring turmeric
                                          • Interest in immunity support has accelerated
                                            • Figure 30: Percentage of functional product innovation containing an immunity support claim, 2014-21
                                            • Figure 31: Immune system support innovation
                                        • Near – What to watch for

                                          • Mental health is in the spotlight
                                            • Figure 32: Functional food/drink attitudes as they relate to mental and physical health, by generation, December 2020
                                            • Figure 33: innovation with stress relief claims
                                          • Sleep tight
                                            • Figure 34: Percentage of functional product innovation supporting stress relief and sleep, 2014-20
                                            • Figure 35: Innovation supporting improved sleep
                                        • Next – What’s in the pipeline

                                          • Laser focused
                                            • Figure 36: Innovation supporting brain health and enhanced focus
                                          • Happy heart 2.0
                                            • Figure 37: Current non-user experience with food/drink that supports cardiovascular health, December 2020
                                            • Figure 38: Innovation supporting cardiovascular health
                                        • The Consumer – Key Takeaways

                                          • Health and wellness come full circle
                                            • Immunity and stress relief are top of mind for consumers
                                              • Versatility and tangible benefits speak to a wide audience
                                              • Functional Benefit Usage and Interest

                                                • Immune support, stress relief gain traction
                                                  • Figure 39: Functional benefit usage, December 2019-20
                                                • Young consumers seek out instant gratification
                                                  • Figure 40: Functional benefit usage, by generation, December 2020
                                                • Interest in functionality among non-users shows promise
                                                  • Figure 41: Functional benefit experience and interest, December 2020
                                                • Don’t write off older consumers
                                                  • Figure 42: Functional benefit experience and interest, by generation, December 2020
                                              • Functional Ingredient Usage and Interest

                                                • Layer functional ingredients to create value
                                                  • Figure 43: Functional ingredient usage, December 2020
                                                • Versatile ingredients appeal to 35-54s
                                                  • Figure 44: Functional ingredient usage, by age, December 2020
                                                • Tangible efficacy leads to continued use
                                                  • Figure 45: Functional ingredient experience and interest, December 2020
                                                • Gen Z are ready to explore the functional ingredient space
                                                  • Figure 46: Future interest in functional ingredients, by generation, December 2020
                                              • Attitudes toward Functional Claims and Ingredients

                                                • Consumers seek solutions to balance their physical and emotional needs from food and drink
                                                  • Figure 47: Functional ingredient attitudes, December 2020
                                                • Immunity support is of greatest importance to Millennial consumers
                                                  • Figure 48: Functional ingredient attitudes, by generation, December 2020
                                              • Appendix – Data Sources and Abbreviations

                                                • Data sources
                                                  • Consumer survey data
                                                    • Abbreviations and terms
                                                      • Abbreviations
                                                        • Terms

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