The concept of smart food is new and gaining momentum steadily, as the demand for a healthy lifestyle is gaining traction. The rise in the rate of obesity among the population, along with the growing number of medical cases such as heart diseases, cancer, osteoporosis, diabetes, strokes, have propelled the otherwise stagnant food and FMCG industry. Utilizing the sprouting opportunity, as the consumers become more informed about the relation between diet and health, FMCG and food industry is marketing smart food segment as products which assist in improving health conditions and preventing diseases. Increasing healthcare cost is another reason which has contributed to the growing adoption of smart food technology among the masses.
There is an air of ambiguity around the term smart food, as the products under this category are developed through invention and new improved processes, sans the natural modification. The smart food market, which is a combination of different types of food such as functional foods, encapsulated foods, genetically modified foods, and others (analogue and novel foods), is being driven by the influential power it has over the consumers’ purchasing decision by providing a range of products with various health benefits, including other factors which are driving consumers’ interest such as location, education, gender, price, income levels, knowledge and beliefs.
The global smart food market is projected to grow substantially, at a CAGR of 8.32% from 2016 to 2022. The estimated growth is due to the ever increasing health concerns among the populace, which has raised health consciousness. The rapid increase in research and development in the food industry has also has paved the way for newer food preservation techniques, which is further driving the growth of the market, along with increased healthcare cost. However, certain factors, such as fragmented nature of the market, lack of awareness about smart foods and high costs of products in the market are restraining the growth of the market.
The major smart food types prevailing in the market are functional foods, encapsulated foods, genetically modified foods, and other (including analogue food and novel foods). Functional foods segment dominated the smart food market in 2016 and is expected to hold the highest share in 2022. However, it is the segment including analogue and novel foods which is expected to grow at the highest rate during 2016 to 2022. The market offers nutritious and healthy end products, ranging from bakery products, confectionary, dairy products, dietary supplements, meat products, beverages and others (including frozen products and fruits & vegetables). Among these, dairy products are expected to generate maximum revenue by 2022, whereas, bakery products market is estimated to rise significantly.
The smart food market in different geographical regions is very dynamic and promising in terms of future growth. Asia Pacific dominated the market in 2016, followed by North America, which is attributed to the growing level of income in countries like China and India. Furthermore, it is Asia Pacific region, which is expected to grow at the highest rate from 2016 to 2022, owing to the growing urbanization, increasing baby boom demographic and changing dietary patterns.
BIS Research has compiled an extensive market research report on ‘Global Smart Food Market, Analysis & Forecast- 2017 to 2022’. The market analysis report provides an in-depth analysis of the key development strategies, marketing strategies and market trend dynamics which includes drivers, restraints and opportunities prevailing in the industry.
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