Overview of the functional food and beverage market in the US
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.
Competitive landscape and key vendors
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.
Segmentation by product type and analysis of the functional food and beverage market in the US
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.
Segmentation by distribution channel and analysis of the functional food and beverage market in the US
Supermarkets and hypermarkets
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.
Key questions answered in the report include
What will the market size and the growth rate be in 2021?
What are the key factors driving the functional food and beverage market in the US?
What are the key market trends impacting the growth of the functional food and beverage market in the US?
What are the challenges to market growth?
Who are the key vendors in the functional food and beverage market in the US?
What are the market opportunities and threats faced by the vendors in the functional food and beverage market in the US?
Trending factors influencing the market shares of the US.
What are the key outcomes of the five forces analysis of the functional food and beverage market in the US?
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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.
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