Fortified and functional foods
Demand for fortified and functional foods is expected to reach $9.7 billion by 2030 at around 3% per annum growth.
Titled: Fortified and functional foods
- Export opportunity is $2.7 billion
- Domestic consumption is $4.0 billion
- Export opportunity is $4.2 billion
- Domestic consumption is $5.5 billion
Fortified and functional foods refer to packaged food and beverages that contain added health ingredients and/or nutrients, where enhancements are intended to produce a nutritional benefit. Examples include probiotics and omega-3 oils added to yoghurt and milk, and antioxidant rich breads, cereals and beverages.
Market demand for fortified and functional foods is expected to continue with global population growth and changes in consumer preferences. The industry is characterised by a diverse product mix, which range from foods for infant and child development, to nutritious meals for elderly digestive and cardiovascular health. Key segments in the domestic and international market include functional milk formula, fortified breakfast cereals, probiotic yoghurt and sports drinks. The domestic consumption opportunity for fortified and functional products is expected to reach $5.5 billion by 2030, while the opportunity for exports is expected to reach $4.2 billion. Lifestyle trends will shape consumer preferences.
Growing interest in sports nutrition and performance for instance has increased demand for whey protein, energy bars and related fortified/functional foods. However, the export opportunity is very much dependent on continued demand from key overseas markets such fortified milk formula to China and South East Asia. While Chinese consumers value Australia’s reputation for quality and food safety, Beijing’s announcement to increase local production and supply of baby formula may translate to increased competition for Australian industry in the medium term. Emerging products such as high protein yoghurts, omega-3 enriched grains and cereals higher resistance starch may create new growth channels for this market over the next few years. Product development will also be affected by changes to mandatory and voluntary fortification standards set by domestic and overseas regulatory bodies. For example, Australian millers must fortify wheat flour for bread-making with folic acid to help promote healthy growth and development, particularly in babies during early pregnancy.
See full report for methodology and references.