Growth in Functional Food and Beverage Continues

Expo East Reflections: Growth in Functional Food and Beverage Continues

Fresh off the Natural Products Expo East show floor,it’s easy to see functional food and beverage as a significant portion of the natural and organic foods industry. Aisle after aisle of beverages and snacks fortified with beneficial nutrients (with vitamins and protein leading the way), trending botanicals (step aside CBD, mushrooms are here) or specialty nutrients targeting key conditions of the day (like GABA and L-theanine for brain health or ashwagandha for mood).
These are ingredients and conditions long at home in the dietary supplement industry that are now flowing into snacks and drinks at an impressive rate. In fact, functional food and beverage as a subcategory of overall food and beverage outsizes dietary supplements by 50%. In 2023 numbers, that’s $92 billion in functional food and beverage versus $61 billion for supplements according to the NBJ model, as reported in New Hope Network’s Functional Food and Beverage Report that was released last week.
More notably, the category is outpacing supplements in growth, too, and it’s not likely to slow anytime soon as younger generations are especially hungry for the goods according to the report’s consumer research.
This all spells big opportunity for the industry—both food and beverage brands and supplement brands—especially for those who can tackle the key themes outlined in the report, ranging from affordability and convenience to specializing around key ingredients, and targeting key conditions on the rise, like improved cognitive function and stable mood and mental health.