Multi-layered, science-backed functionality is reshaping food and drink. Digestive health, energy and brain health claims drive innovation, but success now also depends on simplified, all-in-one nutrition and holistic benefits—such as hydration, sleep and longevity—delivered in credible, convenient formats. Brands that combine enjoyment with wellbeing, especially in snacks and portable options, will capture growth, while others risk losing relevance in a rapidly evolving market.
Delivery
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Key findings
As diets become more functionally driven, gut, energy and brain lead growth
With volume growth stalling and greater demand for more authentic food and drinks, manufacturers reformulate and place greater emphasis on multiple positive health cues. Digestive health, energy and brain health are among the most robust growth pathways in this functionalisation process; yet brands need to counter claim ‘fatigue’ by simplifying the message.
Functional and health benefit claims must be anchored in credibility
Credibility and robust evidence are critical for both consumer trust and navigating regulations. Brands with strong scientific backing – such as clinical studies or partnerships – are performing well, especially in tightly regulated markets. Regulatory-approved claims (eg calcium for digestive enzymes) offer compliant routes, while probiotic claims face scrutiny.
Delivery formats should align with new health rituals and out-of-home demands
Winning functional food and drink formats are those that offer a viable alternative to supplements and sports nutrition, with high convenience for specific occasions and lifestyles. Portable stick sachets, pouches and ready-to-drink bottles thrive for on-the-go consumption, while at-home formats like pods and tubs support ritualised health routines.
Soft drinks and dairy pave the way, snacks must take a leap
Soft drinks and dairy are at the forefront of functionalisation, with rapid innovation in gut health, energy and cognitive claims. However, snacks remain underleveraged. There is significant untapped potential for functional claims and formats that blend indulgence with credible health outcomes such as gut health and mood support.
Asia leads growth, with South and Southeast Asian markets increasingly important
Asia Pacific is the global powerhouse for functional claims, with the South gaining gravitas. While China offers scale and innovation, regulatory hurdles and local complexities can slow progress. India and Indonesia, with their rapid growth, rising health awareness and cultural openness to functional foods, are arguably the most attractive for focused investment and brand-building.
Why read this report?
Key findings
The functionalisation of diets in numbers
Beyond claim overload: The shift to simplified, all-in-one nutrition
Functionalisation of diets expands its meaning; healthspan a key long-term aspiration
Digestive support, energy and brain health set the pace in functional food and drinks
In low-volume era, functional health propositions provide new and needed added value
Holistic health in action: The interplay of digestion, energy and mind
Digestive health moves to the centre of holistic nutrition, spearheaded by “biotics”
Tightening regulation will not impede growth for gut health positioning
Tangible risks of gut health “fatigue” and trust issues call for claim credibility
Navigating gut health in Europe – Arla Cultura’s strategic launch
Digestive health to fuse with indulgence through new dairy and snacks propositions
Single-serve and portable formats led the way for digestive health
In the US, Danone takes digestive health to weight and muscle management realms
Nomadic reimagines gut-friendly food: From spoonable yogurt to portable chilled bars
Asia Pacific drives global gut health growth, led by China and Indonesia
Energy’s next chapter: Cleaner, broader and purpose-driven
From pick-me-up to smart, specific and sustained energy provision
Adopt occasion-led strategies and precision dosing to capture energy demand
Gatorade hydration booster: Portable stick sachets target fatigue relief in the UK
Beyond energy: Yeo’s Super Sprouts’ complete functional support for children
Brain health: Cognition worth pursuing, but higher stakes around emotional balance
India and Indonesia lead brain health growth, driven by ayurveda and adaptogens
Untapped potential for sweet snacks to anchor products in emotional wellness
Smaller packs and hybrid confectionery formats drive growth for brain health
Acqua Catalyse elevates relaxation through scientific credibility and luxury appeal
Singaporean brand Hue taps into growing appetite for mood sweets in Southeast Asia
Metabolic, skin and immune health among most dynamic areas going forward
From guilty pleasure to smart snacking: The next leap for snacks
Opportunities for growth
Evolution of the functionalisation of diets
Questions we are asking
Health and Wellness
Health and Wellness encompasses a number of key claims made on a food or drink products that suggest a health and/or wellness positioning. It comprises positionings relating to better for you, dietary and free from, fortified/functional, health benefit, natural and organic. Please note that data is not available at this level or other aggregated claim levels.
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