Food Technology Magazine | Market Trends
© millann/istock/getty images plus
Nearly three-quarters of global consumers are now aware of functional foods and beverages—products that provide a health benefit beyond nutrition—and just over half plan to increase their use, according to HealthFocus International’s 2024 Global Trend Study.
In the United States, retail sales of healthy food and drink reached $320 billion in combined mass, convenience, and natural channels in 2024, and they are estimated by SPINS to top $384 billion by 2028.
Six in 10 U.S. consumers agree that food can be “as powerful as medicine,” Circana reports. Consumers who are multicultural, urban dwellers, and/or have high incomes, higher levels of education, and large households are the most likely to believe so.
Although health surpasses price as a food purchase driver at the household income threshold of $100,000, per the International Food Information Council’s (IFIC) 2024 Food & Health Survey, inflation/high prices are the top barrier to healthy eating.
Inflation remains the world’s No. 1 worry, according to Ipsos. As of January, half (49%) of U.S. adults were extremely concerned about food price inflation, Circana reports. On the other hand, Ipsos says that the drive to do more about physical health is strong, cited by 86%, across the 50 global markets it surveyed.
At the same time, healthy eating programs driven by U.S. and global government entities, as well as the rise of a new generation of GLP-1 prescription drugs, will draw attention to the high incidence of chronic health conditions that plague consumers globally. According to the International Diabetes Federation, 537 million people are living with diabetes. Nearly 1.3 billion people have high blood pressure, and two in five have high cholesterol, per the World Health Organization.
But despite the potential for ongoing financial headwinds, one thing is certain: functional foods and drinks will continue to be a very good investment for food and beverage companies. Here’s a look at the top 10 trends driving the functional foods market in 2025.
Enhancing daily performance is now the top health benefit that motivates global consumers to choose healthy foods and drinks, according to HealthFocus. Over half (57%) want to improve their physical energy, 50% their mental energy, and 40% their athletic performance. In the United States, products with an energy claim had sales of $23.8 billion; hydration products, $12.0 billion; and performance products, $2.1 billion, for the year ended Dec. 29, 2024, per SPINS.
Half of adults exercised more than 30 minutes at least three days a week in 2024, per a Gallup Poll. Although more than half of those who work out in a gym are women, only 2.5% of sports nutrition products are targeted to women, according to Nutrition Business Journal, creating a potential market opportunity.
Fitness programs for older adults came in third on a list of top global exercise trends for 2025, per the American College of Sports Medicine. Only one in four U.S. adults meet the Centers for Disease Control and Prevention’s (CDC) guidelines for aerobic physical activity and muscle-strengthening activity; for those aged 65-plus, it’s a scant 3.9%. There is a clear missed opportunity for delaying sarcopenia (age-related muscle loss).
Four in 10 consumers say they will do more to track their protein intake in 2025, Circana reports. Sales of products with more than 20 grams of protein per serving topped $4.9 billion, up 9.3% for the year ended Oct. 8, 2024, per SPINS.
Market Movers
Losing weight is once again the top food-related health goal of U.S. adults, followed by staying healthy/living longer and feeling better, according to Circana. A December 2024 Gallup Poll found that more than one-quarter (27%) of U.S. adults are actively trying to lose weight.
According to the World Health Organization, 43% of adults worldwide are overweight and 16% are obese. In the United States, 42% of adults are obese and 19% of children aged 2 to 19 years old are overweight, according to CDC statistics.
A mid-2024 KFF Health Tracking Poll found that 6% of U.S. adults were currently taking a GLP-1 drug, 60% of them for diabetes/heart disease and 40% for weight loss, but Indiana University School of Medicine research puts usage much lower, at 2% to 3%, suggesting that GLP-1–specific foods and beverages are likely to be a niche opportunity at best. Significant and yet unknown side effects, high cost, limited insurance coverage, and supply issues will likely slow short-term growth.
Half of U.S. consumers say they have no interest in GLP-1 weight loss drugs, per Ipsos. At recent analyst meetings, the CEOs of both PepsiCo and Coca-Cola reported that they were unable to confirm a specific sales impact linked to the increased use of GLP-1 medications.
While GLP-1 users avoid some foods, such as spicy products and fatty meats, or drink more tea to soothe the stomach, the same fundamental nutritional attributes that are important for GLP-1 users are important to traditional weight loss consumers. These attributes include high fiber, low fat, high protein, hydration benefits, low sugar, fewer calories, moderate portion size, satiety benefits, probiotic and prebiotic ingredients, and nutrient density.
In terms of approaches consumers are taking to healthy eating, IFIC research shows that 54% of U.S. adults followed a specific diet plan last year, led by high-protein diets (20%).
Market Movers
Energy drinks and bottled water emerged as primary growth drivers in the global beverage marketplace in 2024, reflecting a shift toward functional and health-oriented beverages.
Euromonitor projects that global sales of energy drinks will grow by 36.7% between 2024 and 2029, bottled water by 25.6%, ready-to-drink tea by 14.8%, carbonated beverages by 10.4%, and juice by 5.8%.
In the United States, reduced-calorie/low-sugar sodas posted strong sales, per Circana. Dollar sales of no-sugar, shelf-stable coffee and ready-to-drink tea grew by 51.1% for the year ended Dec. 29, 2024, per SPINS.
Over the past three years, products with immunity claims posted the largest dollar gains for functional beverages, followed by products with high protein, energy, prebiotics/probiotics, and digestion callouts, per Circana.
A variety of new functional drink benefits are grabbing attention. Dollar sales of digestive drinks grew by 34% for the year ended Oct. 8, 2024, led by diet soda and alternative drinks, and sales of wellness shots grew by 13.6%, per SPINS. Kombucha cultures, fiber, cider vinegar, probiotics/prebiotics, and artichoke were the top functional ingredients, according to SPINS.
Dollar sales of products with cleansing and detox messages rose by 17% for the year ended Oct. 8, 2024, per SPINS, albeit from a small base. Probiotics, spirulina blue-green algae, cayenne, and kombucha cultures were important detox ingredients.
Although interest in nonalcoholic beverages gained traction in 2024, they account for less than 5% of total beverage sales, according to Circana data.
Market Movers
Healthy aging now ranks second only to energy as the top health benefit U.S. consumers want to get from foods, according to IFIC data. Also on the sought-after benefits list are weight management, digestive support, heart health, and muscle strength/ endurance.
While one in five consumers still look for foods and drinks to boost immunity and bone health, a similar percentage are seeking products for metabolism and inflammation and blood sugar control. Globally, improved metabolism is now No. 8 on the list of sought-after benefits, per HealthFocus.
Half of U.S. consumers are very concerned that they will be able to continue everyday activities as they age, per HealthFocus. Although the category is in its infancy, cellular health products that nurture cells and slow senescence/aging comprise one of the fastest-growing supplement categories around the world, per Euromonitor. Magnesium, coenzyme Q10, turmeric, quercetin, collagen, and vitamin K are among the ingredients that star in this category, SPINS reports.
Four in 10 global consumers believe that good gut health positively impacts weight, immunity, stress, mood, energy, and mental health. One-third believe it affects healthy aging, and one-quarter think it affects appearance, per HealthFocus. Globally, six in 10 parents are extremely/very concerned about their child’s digestive health, creating an opportunity for product developers.
Market Movers
Nearly half (47%) of consumers worldwide cite mental health as the top health issue impacting their nation, and 31% mention stress, per Ipsos.
According to a 2024 Gallup Poll, nearly half of U.S. adults (49%) frequently experience stress, the highest in the past 30 years. Women younger than age 50 get less than the recommended amount of sleep.
Sales of mood support drinks shot up by 62% in the United States for the year ended Oct. 8, 2024, albeit from a small base, per SPINS. The diet soda and alternative drink category drove growth for mood products, followed by other functional beverages, sparkling flavored water, and wellness shots, SPINS reports, further noting that sales of products with tea as a carrier declined. Ashwagandha, magnesium, probiotics, and CBD/THC were the top functional mood support ingredients.
Euromonitor reports that mental well-being has been the fastest-growing health claim on energy drinks around the globe since 2022; it’s followed by claims related to Ayurvedic medicine, nootropics, brain health/memory, mood/sleep, and immunity. In the United States, more than one-quarter of consumers are looking for products to enhance brain function (e.g., memory, focus, and cognition).
Although dollar sales of sleep remedies, such as melatonin, were down last year, according to SPINS, sales of sleep-related and caffeine-free teas grew by 6% for the year ended Dec. 29, 2024.
Satiety is now the fifth most sought-after benefit from food among consumers worldwide, per HealthFocus. One-third of adults from around the globe say they usually or always choose foods and drinks that help them feel full.
Market Movers
Four in 10 global consumers surveyed by HealthFocus say that eating more natural foods and avoiding artificial sweeteners have become more important to them over the past year. In addition, 36% say they prioritize clean eating, 31% are avoiding processed foods, and 23% are eating more plant-based foods.
Half of those surveyed also made a greater effort to reduce sugar in the past year, 45% reduced fat intake, and 19% cut back on animal products, while 38% consumed more protein and 30% consumed more whole grains.
In the United States, two-thirds (64%) of adults say they now prefer to eat foods without artificial ingredients, according to Circana, and 37% say they regularly eat organic foods. One-quarter of Americans try to avoid allergens when shopping for food, and according to a 2024 McKinsey report, allergen-concerned shoppers have higher-than-average grocery spending.
One-quarter of consumers worldwide are avoiding gluten, according to HealthFocus. Euromonitor predicts that gluten-free will be the fastest-growing health/wellness claim on cooking ingredients and meals worldwide from 2024 to 2028, followed by natural, vegetarian, and vegan.
In the United States, fewer millennials are following plant-based diets, Datassential reports; 12% describe themselves as flexitarian, down 2% from 2021; 4% say they are vegetarian, down 3%; 3% are climatarians, down 1%; and 1% are vegan, down 4%.
Frozen meat/poultry substitutes were among the biggest losers in the frozen case for the year ended Dec. 29, 2024, per Circana, down 12.9% in unit sales; unit sales of nondairy cheese were down by 7%. Unit sales of plant-based refrigerated milk grew by 4.7%.
Vegan/vegetarian claims have become synonymous with cleaner eating for some consumers, although they may not fully embrace a vegan/vegetarian diet. Unit sales of snacks with vegetarian claims grew by 7.2%, and sales of snack products with vegan claims were up 6.5% for the year ended Dec. 29, 2024, per Circana.
Market Movers
Dietary supplements, with U.S. sales of $64 billion, up 4.9% in 2024, per Nutrition Business Journal, have long been an accurate predictor of emerging functional food opportunities. In descending order, after protein and fiber, U.S. adults most want to get vitamin D, calcium, vitamin B12, iron, potassium, and folic acid from foods, IFIC reports.
According to a Council for Responsible Nutrition consumer survey, use of specialty supplements has increased since 2023. One-quarter of all supplement users take magnesium, 8% ashwagandha, and 7% prebiotics; 30% do so to support immunity, 27% for energy, and 16% to promote better sleep.
Nutrition Business Journal reports that beetroot was the fastest-growing botanical supplement in mainstream multi-outlet channels, followed by psyllium, elderberry, turmeric, ashwagandha, apple cider vinegar, cranberry, wheatgrass, beetroot, ginger, and green tea. Turmeric topped sales in the natural channel, followed by CBD, elderberry, mushrooms, ashwagandha, wheatgrass/barley, milk thistle, aloe, psyllium, and oregano.
According to SPINS, hydration, mood support, performance, and PMS and hangover remedies are the condition-specific supplement categories on the rise. Supplement categories that are fading include those with benefits associated with allergies/respiratory health, energy support, weight loss, sleep, and cold/flu. Interest in berberine, kratom, creatine, artichoke, colostrum, and dimethylglycine is on the rise, per SPINS.
Sales of probiotic supplements hit $2.1 billion, up 5.6% in 2024; mushroom-based supplements, $454 million, up 14.6%; and collagen, $931 million, up 18.6%, per Nutrition Business Journal.
Market Movers
Circana/CREST estimates that spending by health-conscious consumers represented $275 billion in foodservice revenue for the year ended in March 2024. Last year, healthy or light meals drove 11% of all restaurant traffic.
Of the top 30 restaurant chains that grew their number of locations last year, 23% fell into one of three categories: health, specialty beverages, or treats, per Circana.
Foodservice beverage purchases accounted for $197 billion in sales for the year ended in August 2024, per CREST; nonalcoholic drinks accounted for $171 billion of that total. Circana reports that 81% of all foodservice visits include a beverage purchase. Energy/sports drinks and frozen drink/smoothies accounted for 3% and 6%, respectively, of total restaurant beverage servings for the year ended August 2024, per Circana.
Protein is the most influential nutritional descriptor on menus, driving menu item selection on 3.4 billion foodservice visits, followed by natural, organic, gluten-free, and sugar-free, per Datassential.
With half (49%) of millennials always taking their kids with them when they go out to eat, per Datassential, it’s not surprising that the National Restaurant Association cited healthier kids’ menus as one of the top business-building ideas for 2025.
Lastly, food marketers should keep a watchful eye on the convenience channel. For two consecutive quarters in 2024, convenience stores outperformed quick-service restaurants at lunchtime.
Market Movers
The Specialty Food Association expects specialty food sales to top $231.3 billion in 2025, up 5.5% over the prior year. Households with incomes of over $100,000 are the most likely to try and re-create restaurant-style meals and beverages at home, according to FMI, and high-income consumers are the most interested in health. That translates to a healthy market for foods and beverages that are both healthful and culinarily sophisticated.
Snacks are the best-selling specialty food category and have already proven to be a functional food gold mine. Products with a health and wellness positioning account for 46% of granola and snack bar sales, as well as 25% of tortilla/corn chip sales, according to SPINS data for the year ended Oct. 6, 2024. Dollar sales of sourdough bread jumped 16.5% for the year ended July 14, 2024, and sourdough is now reshaping tortilla, pastry, and other snack options, according to SPINS.
Shelf-stable flours were the fastest-growing specialty food category last year with sales of over $500 million, followed by tortilla/corn chips, pasta sauce, frozen novelties, sparkling water, spices/seasonings, refrigerated beef, shelf-stable fruit, packaged rice/grains, and plant-based creams/creamers, the Specialty Food Association reports.
One-quarter of functional food marketers surveyed for a 2024 Nutrition Business Journal report say they are focusing on differentiating their functional products with more exciting flavors.
Market Movers
The health claims that resonate most with consumers differ by product category. Nearly three-quarters of shoppers look for better-for-you attributes when buying frozen food, led by real ingredients. Other attributes important to frozen food buyers include no artificial ingredients, better nutritional value, minimal processing, healthier components, and healthier preparation options, (e.g., air fryer instructions), according to the American Frozen Food Institute.
For dairy products, hormone-free and antibiotic-free attributes are prioritized by 62% of consumers, per the National Frozen & Refrigerated Foods Association. In addition, 47% of consumers cite organic as a priority.
One-third of bakery product shoppers say they are influenced by the type of grain used in the product; one-third also cite no artificial additives as a purchase priority, FMI reports. Fiber content, type of sweetener, protein content, and, to a lesser extent the type of oil used in the formulation, are also important to purchasers of bakery products.
“Less of” claims still dominate in the healthy snack segment, according to Circana. Healthy snack products with low-fat/less-fat claims posted the top unit sales gains last year, followed by products with antioxidant claims, products that called out the type of oil used in the formulation, and products with lactose-free claims.
Market Movers