The nutritional food and drink market has been positively impacted by changing consumer preference for consuming healthier food and beverage options. Today, consumers are aware of nutrition facts and food ingredients that can have positive or negative impact on their health. This is significantly changing the dynamics in the food and beverages industry - so much so that the impact is tangible when it comes to nutritional variety offered in sports drinks these days.
Despite visible advances in the healthcare industry, chronic disease and rare medical problems continue to persist. But the public is now more aware of methods to combat and prevent these chronic diseases. One of the primary methods to exist is to increase more nutritious food in the daily diet. Diseases often occur due to lack of proper nutrition in the body which causes a malfunction in internal processes. The nutritional food and drink market will bask on this premise and record promising growth in the future.
Now, nearly 45% of the US population is plagued with some form of chronic illness. This statistic is alarming and points the immediate required intervention for products from the nutritional food and drink market. In the upcoming years, the growth of the nutritional food and drink market share will depend upon consumer preference for organic produce. With an increasing public interest in eating more naturally grown products that are also free from any preservatives, the nutritional food and drink market size will boost significantly.
The Nutritional Food and Drink Market size reached $161 billion in 2018. The nutritional food and drink market share is further poised to grow with a CAGR of 7.9% during the forecast period 2019-2025.
North America as the Highest Revenue Earning Region of the Nutritional Food and Drink Market
On the basis of region, the nutritional food and drink market can be segmented into North America, South America, Europe, APAC, and the rest of the world. The North American region has emerged as the most lucrative region in the market with an estimated share of 44% of the total revenue earned in 2018. Countries falling inside the North American region are facing an unprecedented consumption of fast food and sugary products.
United States of America Creating Opportunities for theNutritional Food And Drink Market Market: Fast food outlets in the country have nearly doubled from1970 to 2010. Moreover, the US Department of Health and Human Services has further released alarming statistics related to the American population. Only one in three American children experience any physical activity throughout the day. Additionally, approximately 90% of the American population consumes more sodium every day than is recommended by health experts. These statistics reflect the emerging necessity for consuming healthier and nutritious products amongst the American population. US supermarkets are experiencing a revolution in selling products that are highly nutritious. Some of the active brands in the country are Spindrift, Siggi’s, Banza, and others. Spindrift is selling a series of bottled sparkling water that consists of essential vitamins and minerals. Additionally, the brand also sells juice which is completely free from any sugar or artificial flavors. These kinds of products have positively impacted the nutritional food and drink market in the country.
Canada Will be Pivotal In Accentuating theNutritional Food And Drink Market Growth in North America: 67% of the people in the country die due to suffering from some form of chronic illness. Additionally, 40% of adults above 20 years of age are suffering from a chronic disease in Canada. This shows the requirement of more healthy and nutritious food in the diets of Canadians. The The Canadian government has tried to combat this widespread problem by creating strategies revolving around curing and prevent chronic disease. In January 2019, the government released Canada’s new good guide which focused on improving the eating habits of citizens. Additionally, the guide also included a mobile application developed by the Canadian government for dietary guidance and overall improvement of health. Initiatives of this kind have boosted the market growth in this country.
Dairy Products as the Most Significant Segment of the Market
One of the ways to improve health is to accommodate more protein-rich foods into the diet. Since not everyone consumes meat, a growing number of people are turning towards dairy products to improve their health. Now, the world imported dairy products worth $91 billion in 2018. This is reflective of the high consumption of dairy across the world. The food and beverage industry has been quick to pick up on this trend and develop more products rich in dairy. Some of the healthiest dairy options available are yogurts which are now being sold in multiple flavors and without added sugars, cottage cheese, double-toned milk, and others. Additionally, public gravitation towards the ketogenic diet has already contributed to an increase in the consumption of dairy products. The consumption of cheese has increased with a rise in people following the ketogenic diet. These factors have been responsible in making this segment the most prominent of the nutritional food and drink market. The dairy products segment will grow with an above-average CAGR of 8% during the forecast period 2019-2025.
Nutritional Food and Drink Market: Competitive Landscape
Key market players in the nutritional food and drink market include Abbott, Unilever, Nestle S.A, PepsiCo, Conagra Brands, Inc., Coca-Cola Company, Ajinomoto Co., Inc, BRF S.A., The Kraft Heinz Company, and General Mills, Inc.
Each of these companies has made significant progress in improving the nutritional food and drink market share. People across the world are craving more nutritious food, which is why it is imperative for these companies to invest more resources into creating healthier products. Some of the ways in which this has reflected amongst key competitive players are:-
PepsiCo has considerably reduced the addition of sugar and saturated fats in most of its products. In accordance with the inclusion of more nutritive brands, PepsiCo acquired Tropicana in 1998. In 2016, the company further announced acquisition of KeVita that manufactures probiotic beverages that help in digestion. Most recently, in 2019, PepsiCo acquired CytoSport which manufactures innovative protein products for people suffering from amino acid deficiencies. One of the products includes Muscle Milk and other premium products.
Apart from acquisition, PepsiCo has further strengthened its presence in the nutritional food and drink market by selling its own products that are rich in vitamins and minerals. In India for example, PepsiCo tied up with Tata to manufacture and sell products such as Tata Water Plus. The quantity of essential minerals such as copper and zinc is exceptionally high in this water as compared to normal mineral water. Another important product that has stemmed out of this partnership is Tata Gluco Plus
The CocaCola Company has also emulated similar strategies and released products such as Diet Coke that is sugar-free and helps cola enthusiasts in combating sugar cravings. According to the CocaCola Company, diet coke helped in an 8-point acceleration of the brand in 2018. Though the public has turned aversive towards sugary beverages, diet cola has helped the company is earning a high revenue.
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