The growing appetite for healthy and nutrient-rich food products, across the world, is the important factor providing a prime impetus for the growth of the health foods market. Globally, people are gradually adopting healthy and hygienic lifestyles and modifying their eating habits by consuming natural and organic food products and by taking diet with enhanced and balanced nutrition. There is an increasing health concern among consumers, especially in urban areas. On the back of urbanization, people have realized the significance of healthy food and balanced diets. It became explicit to them that healthy nutritional diets play a prominent role in impacting emotional, physical, and cognitive health, and their lack can lead to poor health and various lifestyle-related diseases such as cardiovascular disease, osteoporosis, cancer, hypertension, obesity, diabetes, nutritional anemia, and dementia. These factors are instigating the urban population to prefer healthy and nutritious food. Thus, the huge presence of urban population across the world, which can be fathomed from the statistics by the World Bank, according to which, the 55.3% of the total population lives in urban areas, as of 2018, in conjunction with the increasing awareness about the benefits of healthy food eating habits is propelling the demand in the global health foods market.

As of 2018, the global health foods market observed a valuation of $805 billion, and the demand in the market is poised to project at a standard CAGR of 4.2% during the forecast period 2019-2025.

The Growing Malnutrition Concerns Providing Impetus to the Health Foods Market Growth—

The growing demand for nutritious and protein-rich food product to curb the malnutrition across the world is catapulting the growth in the health foods market. The prevalence and universality of malnutrition are creating an alarm in every country as it causes severe health issues such as gastroenteritis, pneumonia, kwashiorkor, and measles. According to the World Health Organization (WHO), in 2018, around 1.9 billion adults worldwide are overweight, while 462 million are underweight; wherein among the children under the age of 5 years, 41 million are overweight, 155 million are stunted, and 52 million are wasted. This disquieting figure has instigated the people to prefer health and wellness food products such as therapeutic food, organic food, functional food and Mongolian food that prevents the incidence of diseases, alleviate illness, promote weight loss, and aid in weight and health management to achieve a state of wellness. Thus, the growing health and malnutrition concerns among the consumers is catapulting the growth of the health foods market.

North America Region Creating Lucrative Opportunities to the Health Foods Market—

Geographically, North America is leading the global health foods market with an evaluated market share of 38% of the total revenues generated in 2018. The dominance of this region is mainly attributed to the growing health and obesity concerns among Americans. According to the Centers for Disease Control and Prevention, the prevalence of obesity was around 40% and affected 94 million adults, in the USA, in 2016. As a need to address the problems associated with obesity, there is a paradigm shift towards healthy and organic food preferences.

Moreover, the increase in household income is instigating the people of this region to invest more on healthy food products despite the high cost, to adopt a more holistic approach to a healthy diet. The increasing disposable income can be easily fathomed from the data provided by the U.S. Bureau of Labor Statistics, according to which the real average earnings per hour increased by 1.5% from June 2018 to June 2019. Additionally, the rapid technological advancements in the developed economies such as the United States, Canada, and Mexico, has further provided growth opportunities for the regional health foods market. The digital presence of healthy and nutritious food products is one of the prominent trends being widely adopted in this region. Food companies are adopting online platforms by leaps and bounds for promoting and selling their health food products across different parts of the region. The online platform is gaining popularity by leaps and bounds as it helps customers save time by facilitating them to place an order by sitting at their home without any need to visit a physical store. Thus, healthy food companies can reach a wide range of potential customers. Therefore, the aforementioned factors have rendered North America with maximum share.

Health Foods Market Gaining Maximum Sales through the Key Distribution Channel—

Based on the distribution channel, the health foods market is segmented into supermarkets or hypermarkets, convenience stores, independent small groceries, discounters or dollar stores, and others. Among these, supermarkets or hypermarkets are expected to be the key application segment that is poised to garner maximum revenues to the market. This is mainly due to the presence of supermarkets and hypermarkets both in urban and rural areas, close to residential and commercial communities and thereby facilitating the customers to buy the products on the go. Moreover, the supermarkets are adopting various trends such as premiumization of private label, becoming hyperlocal, delivering goods to the doorstep, offering more tailored and value-added lifestyle choices, to allure the customers by providing them a healthy shopping experience.

Furthermore, supermarkets are usually more convenient, spacious hygienic, organized, and well-maintained, and offer a wider range of items and brands for the consumers. Additionally, the phenomenal growth in the retail market is expected to create significant growth opportunities in the supermarket sector. For instance, the Indian retail market, fifth-largest grocery retail market in the world, is expected to attain $1,200 billion by 2021 from $672 billion in 2017. These factors are aiding the supermarkets to secure its dominance over other distribution channels. Thus, the key application segment is expected to propel at a standard CAGR of 3.8% through to 2025.

Health Foods Market Companies—

Major companies that are striving to gain grounds in the global health foods market include Danone, General Mills, GlaxoSmithKline, Kellogg, Nestle, PepsiCo., Dabur, and Hearthside Food Solutions LLC. These companies are continuously involved in adopting strategies such as mergers, acquisitions, partnerships, new product launches, and many more, in building their brand name.

· On November 26, 2018, Hearthside Food Solutions LLC, a leading contract manufacturer of nutritional bars, snack bars, cookies, crackers, and other snack foods, announced the completion of the acquisition of Greencore US, the US unit of Greencore Group plc. This acquisition is intended to enhance its manufacturing capabilities and add other food products such as frozen breakfast foods, refrigerated snack kits, salad kits, and fresh-made sandwiches and entrees to its product portfolio.

· On June 14, 2019, Nestlé Inc., launched a new product, a probiotic solution, MATERNA Opti-Lac, to aid lactating mothers to reduce the risk of breast pain and mastitis during breastfeeding. This product is a food supplement that contains beneficial elements, found naturally in breastmilk of healthy mothers to support breast health. These type of innovations are frequently undertaken to attract customers with a wide range of products.

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Related Reports:

a) Functional Food and Nutraceuticals Market

b) Vitamins and Nutrition Supplements Market


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