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Technavio’s market study identifies the increasing awareness of functional foods among different age groups as one of the primary growth factors for the functional food and beverage market in the US. The increased media coverage has enhanced consumer awareness regarding the consumption of vitamins, minerals, calcium, and other nutrients. Millennials, generation Z, and the older generation are becoming more health-conscious and prefer to consume healthy food with healthy ingredients to prevent health issues such as weight management, cholesterol levels, and other lifestyle-related diseases. Vendors are also focusing on developing products to target age-related disorders and to help consumers inculcate healthy nutrients in the diet. Technavio’s market analysts estimate that this market will grow steadily at a CAGR of almost 7% by 2021.
Vendors are increasingly coming up with new products and ranges in functional beverages to expand their product portfolio and cater to a wider target audience. Factors such as new product development, improved taste and versatility, supported by high levels of marketing will increase the demand for functional ingredients. GAMETIME has announced the launch of alkaline water sports drinks and PepsiCo integrated a probiotic ingredient in Tropicana juice. This focus of vendors to launch new products will be one of the key trends that will gain traction in the functional food and beverage market in the US.
The functional food and beverage market in the US is highly fragmented due to the presence of several international and regional players who compete based on price, quality, innovation, packaging, reputation, marketing channels, and distribution channel. The performance of the food ingredient suppliers is affected by intense competition among the vendors and rapid technological changes. Strategies such as the use of natural ingredients, reduced sugar, clean labelling, omnichannel retailing, and strategic partnerships are used by the vendors to attain competitive advantage over the other players.
The leading vendors in the market are -
The other prominent vendors in the market are Dr. Pepper Snapple Group, Living Essentials, MONSTER ENERGY (Monster Beverage Corporation), SlimFast, Yakult USA, PowerBar, The Balance Bar Company, T.C. Pharma, and Wm. Wrigley Jr. Company.
Increased consumer awareness regarding the consumption of healthy food and the rising need for functional packaged foods to address the day-to-day nutritional requirements of the consumers due to their hectic lifestyles, will influence the growth of the functional food segment. Organic food suppliers have the need to investment heavily in R&D activities and should also have high technical expertise and regulatory clearances to remain profitable in the market.
The growth of the organized retail sector and the emergence of several retail outlets that offer a wide range of products will trigger the sales of functional foods and beverages in the supermarkets and hypermarkets. Additionally, the availability of discounted prices and convenient shopping experience, will also influence consumers to opt for this distribution channel.
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This upcoming market research report on the functional food and beverage market in the US is an integral part of Technavio’s food and beverage portfolio and offers key insights into the market space for food. Technavio’s insightful market research reports also offer insights on the market size, forecast, trends, and industry analysis to help clients build effective growth strategies.
This upcoming market research report on the functional food and beverage market in the US also covers vendors like Kraft, General Mills, Kellogg, Nestle, Unilever, Yakult Honsha, Dannon Co., Chobani, The Coca-Cola Company, and Pepsico. By implementing an extensive research approach of quantitative and qualitative data collection methods, the upcoming market research report on the functional food and beverage market in the US offers insights into the key market drivers, trends, and eminent challenges that will influence the growth of the key suppliers in this market space.
This market research report on the functional food and beverage market in the US also takes into account the growth of related markets like coffee pods, which are anticipated to post an impressive CAGR of close to 10% during the forecast period. According to our analysts, greater health concern and the advent of innovative technologies in food processing may influence the demand for functional food and beverages in the coming years.
The upcoming industry report on the functional food and beverage market in the US also offers insights into fast-growing segments within the food and beverage industry, including sectors like non-alcoholic and food service. Additionally, the market report also presents insights into the changing competitive landscape and gives clients a realistic picture of the future direction of the industry.
PART 01: Executive summary
PART 02: Scope of the report
PART 03: Research Methodology
PART 04: Introduction
PART 05: Market landscape
PART 06: Market segmentation by product
PART 07: Market segmentation by distribution channel
PART 08: Decision framework
PART 09: Drivers and challenges
PART 10: Market trends
PART 11: Vendor landscape
PART 12: Key vendor analysis
PART 13: Appendix
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