How is the plant-based food market responding to the demand for functionality?

Functional foods have other health benefits beyond basic nutrition, including improved physical and cognitive health and disease reduction.
According to research firm MarketWatch, the global functional foods market was valued at USD 153.6 billion in 2018 and is set to reach USD 260.4 billion by the end of 2025, growing at a CAGR of 6.8% during 2019-2025.
Growing concern for one’s health and advancements in science and technology are among the many factors sustaining consumer interest in functional foods, and it is safe to say that the functional foods market is booming. With data showing that the global plant-based market is expected to reach a market value of $38.4 billion by 2025, many companies are recognizing the opportunity to unite these two booming industries. Foreign media outlet FoodBev introduces consumers to some of the key functional areas and examines how the plant-based market is innovating new products to accommodate these functions.
Functional health
From heart health to immune health and the prevention of cancer and other diseases, many products with functional health benefits are emerging on the market.
Antioxidant-rich products are a key example of functional foods that promote overall health. Antioxidants are substances that protect cells from free radicals, which may play a role in heart disease, cancer and other illnesses. There are many antioxidant-rich plant foods on the market today, such as pecans, strawberries, artichokes and kale. Immune system function is another hot topic, and consumers are looking for ways to boost their immunity through the foods and beverages they consume. Many foods have been called “immune boosters,” especially those containing vitamin C, such as citrus fruits and red peppers, and those with anti-inflammatory properties, such as ginger. For example, US-based plant-based functional drink maker Rebbl has launched a range of superherb products, including four antioxidant-rich medicinal mushroom products, which together provide a powerful boost to immunity and defense.
As Covid-19 continues to spread across the globe, consumers are increasingly concerned about their immune systems and overall health. So it will be interesting to see how plant-based brands react to this.
Brain Health
In recent years, there has been a significant increase in research on the relationship between diet and cognitive benefits. For example, foods rich in omega-3 fatty acids, vitamin B and antioxidants are thought to contribute to brain health, and incorporating them into a healthy diet can help improve mental function. Many food and beverage brands have responded to consumer demand for products that help with brain function. For example, Canadian functional beverage company Koios has a formula that claims to enhance short-term brain function and improve long-term memory. Its ingredients include L-theanine (an amino acid), which has a calming effect on the brain. Fat-rich fish is the main functional food associated with improved brain health. As a result plant-based food and beverage companies have explored the use of alternative ingredients that can provide vegans and flex vegans with beneficial omega-3. chia seeds are a good source of ALA omega-3 fatty acids.
Another important cognitive superfood that has emerged in recent years is CBD. according to Grand View Research, the global CBD market was valued at $4.6 billion in 2018 and is expected to grow at a CAGR of 22.2% during this period. CBD is known to have several benefits for the human brain, including helping with epilepsy, sleep, anxiety, and depression. With the rise of CBD products and plant-based foods, there are countless new functional CBD products in the plant-based market. Examples include Navistas’ vegan functional CBD drink and Good Hemp’s plant-based CBD milk.
Gut Health Duggar Wellness research says that 60-80% of our immune system is in the gut, and if the gut is out of balance, this usually leads to further health problems. As a result, many consumers turn to foods and beverages to aid in intestinal digestion. Certain foods such as peppermint, fennel and ginger are known to have digestive-boosting properties. Probiotics and prebiotics are also one of the most common aids to gut health. Probiotics are live microorganisms, similar to the beneficial microorganisms found in the human gut, and prebiotics promote the growth of these beneficial microorganisms.
One of the most common and popular sources of probiotics is yogurt, and many companies have developed plant-based products. For example, Rebbl debuted a line of plant-based, prebiotic fiber-rich sodas to support digestive health. Additionally, Tyson Foods has introduced a frozen protein fast that also contains prebiotics, probiotics, and fiber, which are just some of the products addressing this issue.

In addition to prebiotic and probiotic products, there are a number of other products in the functional plant market. For example, Wow has launched a “dark detox” drink containing activated charcoal to help detoxify and remove toxins from the digestive tract. With the global market for digestive health products forecast to grow to $83.5 billion by 2022, according to Transparency Market Research, there’s no doubt that the botanical market will continue to play an important role in this sector. Energy.
From sports drinks to coffee-based products, beverages with features related to energy levels have long been popular. Recently, there has been a growing number of products that derive their energy benefits from natural energy-boosting ingredients, catering to health-conscious consumers. For example, a foreign company called DRGN has introduced a turmeric soft drink that contains a variety of vitamins, electrolytes, and amino acids to help reduce fatigue and hydrate the body. These products are often labeled as “suitable for vegans” to ensure that they meet the growing demand for natural ingredients.
Caffeinated beverages have long been recognized for their functional benefits, with coffee products being one of the main forms. Recently, cold-brewed coffee has become a major trend, with the market size for cold-brewed coffee expected to grow by $1.12 billion from 2020 to 2024, according to Technavio. With such market potential, it’s no surprise that many companies have already launched cold-brew products that use plant-based ingredients. For example, Stok Cold Brew, a subsidiary of Danone, is expanding its portfolio with dairy-free cold brew products that use almond and oat milk. BEAUTY PRODUCTS What if food and beverage products could make you look good and feel good too? As the number of health-conscious consumers increases, the idea of using food for self-care offers plant-based companies the opportunity to go beyond physical and mental health. One of the major trends is the rise of “beauty drinks”. The market is expected to be worth $1.4 billion by 2022, according to research firm Technavio, which says the 11% compound annual growth rate is largely due to shifting consumer aspirations and will be driven by a convenience-driven model. Vital Protein’s Collagen Instant Drinks are a good example of how collagen can improve skin and reduce wrinkles and dryness. Their vice president says the RTD format will help the collagen market penetrate a wider audience. According to market research firm NPD, 62% of women between the ages of 35-54 and 65% of women over the age of 55 cite anti-aging benefits as the most important when purchasing beauty products, which can be extended to beauty drinks. Curcumin, derived from turmeric, fits the botanical trend seen in many beverage products on the market today. There is no doubt that the functional beauty product market offers an opportunity for botanical companies, and since many of the products are sourced from all-natural sources, the botanical market has no difficulty in providing further innovation.