2023
9
US Functional Ingredients in Food and Drink Market Report 2023
2023-03-10T03:03:42+00:00
OX1157739
4995
161306
[{"name":"Ingredients and Additives","url":"https:\/\/store.mintel.com\/industries\/food\/ingredients-additives"}]
Report
en_GB
A changing definition of health will become increasingly more inclusive of functionality, yet will not provide hall passes for products, ingredients or claims that don’t set realistic expectations. The correlation…

US Functional Ingredients in Food and Drink Market Report 2023

$ 4,995 (Excl.Tax)

Description

Unlock the potential of the Functional Ingredients in Food and Drink market with our comprehensive report. You’ll gain invaluable insight into the Functional Ingredients in Food and Drink market size in the US, as well as market projections, segmentation, and the latest trends. With our extensive Functional Ingredients in Food and Drink Market Report, you can gain a better understanding of how to respond to changing consumer demands and take advantage of new opportunities to stay ahead of your competition. Download your copy today. 

Functional Ingredients in Food and Drink Market Overview

Consumer markets have faced an unprecedented level of turmoil in recent years, from the massive economic disruption in 2020 from COVID to 40-year highs in inflation in 2022. Real GDP increased at an annualized rate of 2.9% in Q3 2022 – the first in which the US experienced positive growth in 2022, following two quarters of decline. However, consumer sentiment remains near historic lows, with rising interest rates, stubborn inflation, as well as volatile financial markets continuing to erode households’ confidence. With wage growth stalling, consumers exhausting their savings, soaring credit card debt, and stubbornly high inflation – all signs point to reduced spending heading into next year.

Functional Ingredients in Food and Drink Market Trends and Consumer Behavior

  • Functional Ingredients Market Size:
    More than half of adults across the age spectrum consume two or more products that claim functional benefits, suggesting that ingredients themselves carry more weight than broader promises. More than half (51%) of adults 55+ abstain from using products with any type of functional benefit.
  • US Functional Ingredients Market Growth:
    Consumer sentiment remains near historic lows, with rising interest rates, stubborn inflation, as well as volatile financial markets continuing to erode households’ confidence. With wage growth stalling, consumers exhausting their savings, soaring credit card debt, and stubbornly high inflation – all signs point to reduced spending heading into next year.
  • US Functional Ingredients Industry Trends:
    According to Mintel’s Health Management Trends – US, 2022, more than half of consumers prioritize health to be happier (56%) and to live longer (51%), demonstrating that consumers want to take control of their health for directly personal reasons: self-care and happiness.

Functional Food and DrinkMarket Trends and Opportunities

The power of energy is compelling and on the rise, with brands innovating with energy claims and messaging in products in unconventional, yet applicable often portable spaces like snacks and desserts as well as natural pairings like creamers. By the numbers the potential audience is sizeable based on caffeine consumption alone, which is the most frequently consumed functional ingredient, consumed multiple times a day among nearly half of US adults. Brands are also moving beyond caffeine to tap into new ways to help consumers power through the day with vitamin enrichment or MCT oil, among others. And they are coupling with supplemental messaging conveying cleaner formulations or freefrom claims in a move to take energy beyond its perceived original, superprocessed roots.

Read on to discover more about the US Functional Ingredients in Food and Drink consumer market, read our Functional Drinks Market Report – US – 2022, or take a look at our other Food research reports.

Quickly Understand

  • Attitudes and behaviors toward functional benefit claims.
  • Current consumption of functional ingredients in food and drink.
  • Current use of functional benefits in food and drink.
  • Frequency of functional ingredient use.
  • Interest in functional ingredients by food/drink type.
  • Shifts in functional food and drink purchases.

Covered in this Report

Leading Brands in the Functional Ingredients in Food and Drink Market / Industry: Outshine, Frooze Blls, Super Creamer, Verb Energy, Seal the Seasons, Sun Chips, Quaker, KIND, Nature’s Garden, Antioxidant Solutions, Cooking with my Doctor, Toodaloo Slow Your Roll, Beekeeper’s Naturals, Chobani, Mindright Brain Food, GUUd Brain Fuel, Groovy Butter.

Expert Analysis from a Specialist in the Global Functional Food Ingredients Field

This report, written by Mimi Bonnett, a leading analyst in the Food and Drink sector, delivers in-depth commentary and analysis on functional food ingredients market drivers to highlight current trends and add expert context to the numbers.

A changing definition of health will become increasingly more inclusive of functionality, yet will not provide hall passes for products, ingredients or claims that don’t set realistic expectations. The correlation between scientific integrity, personally tangible results (long- or short-term) and value are important to continue growing functionality’s value in health among the most critical and perhaps invested functional product user.

Mimi Bonnett, Senior Director, US Food and Drink
Mimi Bonnett
Associate Director of Food and Drink Reports

Table of Contents

  1. Overview

    • What you need to know
    • This Report looks at the following areas
    • Definition
    • Market context
  2. Executive Summary

    • Top takeaways
    • Consumers
    • Nearly a third of under 55s find added value in function
      • Figure 1: Attitudes and behaviors toward functional claims, by age, 2022
    • Parents, young adults seek functional support
      • Figure 2: Current benefits used, by parental status, 2022
    • Competitive Strategies
    • Energy goes clean and beyond
    • Brands take dual approach to mind/body wellness
    • Market Predictions
      • Figure 3: Repertoire of functional ingredient usage, 2022
    • Younger adults more likely to be buying up than down
      • Figure 4: Shifts in functional food and drink purchases, by age, 2022
      • Figure 5: Category outlook, 2023-28
    • Opportunities
    • Key your eye on wellness seekers
      • Figure 6: Functional benefits in food and drink, by approach to eating, 2022
    • Older consumers are reluctant, yet natural fits
      • Figure 7: Current benefits used, by age, 2022
    • Make functionality intentional
      • Figure 8: Consumption of functional ingredients in food and drink, 2022
  3. The Functional Food and Drink Consumer by the Numbers

    • Two thirds of adults currently consume two + functional ingredients…
      • Figure 9: Repertoire of functional ingredient usage, 2022
    • … yet functional benefits have room to catch up
      • Figure 10: Repertoire of functional benefits used, 2022
    • Taste still trumps wellness in choice
      • Figure 11: Approach to eating, 2022
    • Women are more inclined to let budget limit their food choices
      • Figure 12: Approach to eating, by gender, 2022
    • Snacking, exploration and convenience at the core of contemporary food/drink choice
      • Figure 13: Approach to eating, by age, 2022
    • Function fans also seek flavor experiences
      • Figure 14: Approach to eating, by repertoire of functional ingredient usage, 2022
  4. State of the Market – Brand Functional Activity

    • Energy and heart health remain functional benefit stalwarts
      • Figure 15: Food and drink innovation containing functional claims, 2022
    • Food
    • Snack space dominates functional innovation, calls for expansion
      • Figure 16: Food innovation containing functional claims, by subcategory, 2022
    • Heart health, energy top the list used by brands
      • Figure 17: Food innovation containing functional claims, 2022
    • Inherently healthy nuts tout added functional benefit
      • Figure 18: Percent change in food innovation containing functional claims, by sub-category, 2018 to 2022
    • Drinks
    • Energy continues to drive functional drink innovation
      • Figure 19: Drink innovation containing functional claims, 2022
    • Drink brands coupling function with clean label to move mainstream
      • Figure 20: Drink innovation containing functional claims, by subcategory, 2022
    • Room to move beyond “just” energy
      • Figure 21: Percent change in drink innovation containing functional claims, by sub-category, 2018 to 2022
  5. Market Factors

    • Dedication to healthy eating increases with age
      • Figure 20: Dedication to healthy eating, by age, 2022
    • Youthful skew of functional wellbeing spells mixed news for brands
      • Figure 22: Repertoire of current functional ingredient consumption, by age, 2022
      • Figure 23: Population aged 18 or older, by age, 2016-26
    • Financial strains taking a toll
      • Figure 22: Impact of inflation on food/drink choice – NET, 2022
  6. Competitive Strategies and Market Opportunities

    • “Clean” energy goes beyond
    • Brands remind us heart health is for the masses, everyday
    • Layering benefits encompasses holistic health needs with value
    • Evolving health trends influence functional claim innovation
      • Figure 24: Percent change in functional claims within food and drink innovation, 2018 to 2022
  7. The Functional Food and Drink Consumer: Fast Facts

    • Functional ingredient consumption is widespread
    • Consumers desire a range of functional benefits
    • Paying more, buying more – consumers think it’s worth it
  8. Attitudes and Behaviors toward Functional Claims

      • Figure 25: Attitudes and behaviors toward functional claims, 2022
    • Consumers of all ages see eye to eye on trust
      • Figure 26: Attitudes and behaviors toward functional claims, by age, 2022
    • Food choice motivators impact value perception
      • Figure 27: Attitudes and behaviors toward functional claims, by approach to eating, 2022
  9. Current Consumption of Functional Benefits

    • Fragmented benefits used points to pairing opportunities
      • Figure 28: Functional benefits in food and drink, 2022
    • 18-34s more likely to seek out immediate results
      • Figure 29: Functional benefits in food and drink, by age, 2022
    • Specialty dieters looking for more than weight management
      • Figure 30: Functional benefits in food and drink, by approach to eating, 2022
  10. Current Consumption of Functional Ingredients

    • Functionality is not always fully intentional
      • Figure 31: Consumption of functional ingredients in food and drink, 2022
    • Connect the disconnect between benefits and ingredients
      • Figure 32: Consumption of functional ingredients in food and drink, by age, 2022
  11. Consumption Frequency of Functional Ingredients

    • Daily, multi-weekly ingredient use points to habits that can be cultivated
      • Figure 33: Frequency of functional ingredient consumption, 2022
    • Convenience seekers least likely to consume, most likely to need functional ingredients
      • Figure 34: Functional ingredient consumption – NET, by approach to eating, 2022
  12. Interest in Functional Ingredients by Food/Drink Type

    • Beverages natural go to for function, don’t sleep on meals
      • Figure 35: Interest in functional innovation by food/drink type – NET, any interest, 2022
      • Figure 36: Interest in functional ingredients, by meal occasion, 2022
    • OG function favorites juices/smoothies top interest
      • Figure 37: Interest in functional innovation, by food/drink type, 2022
    • Under 55s open to function on any food/drink “aisle”
      • Figure 38: Functional ingredient innovation, by age, 2022
    • Even budget seekers are interested in functional foods/drinks
      • Figure 39: Functional ingredient innovation, by approach to eating, 2022
  13. Shifts in Functional Food and Drink Purchases

    • Increased prices have limited impact on purchase (for now)
      • Figure 40: Shifts in functional food and drink purchases, 2022
    • Younger adults more likely to be buying up than down
      • Figure 41: Shifts in functional food and drink purchases, by age, 2022
  14. Appendix – Data Sources and Abbreviations

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

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

Below is a sample report, understand what you are buying.

Click to show report
2024 Sample Consumer Cover

Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

Trusted by companies. Big and small.

Want to speak to us directly?

Contact us with your enquiry and our expert global team can help.

Get in touch