Rekha Raghavan
PhD Research Scholar
International School of Management Excellence (ISME) Research Centre, Bangalore
A recognized research center of University of Mysore
Email: rekharaag@gmail.com
Brand Consultant
Pashmina Waterfronts
Flat.no.T2- 4C, Battarahalli, Sannatammanahalli, Bangalore – 560049
Dr. Veena K N
Research Supervisor
International School of Management Excellence (ISME) Research Centre, Bangalore
A recognized research center of University of Mysore
Abstract
India is on the brink of a health crisis due to rise in Cardiovascular disease(CVD) amplified by Diabetes, obesity and hypertension. It is listed as second highest CVD incidence in the world with high mortality rates, after China.
This could be directly connected with the rise in lifestyle changes owing to change in disposable incomes, sedentary lifestyle and change in food habits.
However, research suggests that people are making positive change in their lifestyle by opting better health improving foods and activity.
This paper, is a review of the market readiness for Functional foods with a comparison of global and Indian health issues and posing these food as a possible solution.
Functional food along with nutraceuticals has emerged all over the world as the future of food that can fit into regular diet.
Indian consumers are poised to adopt these food given their health condition and health consciousness.
However, it is found that among other reasons, there is lack of knowledge for products leading to lower rates of adoption.
Keywords: Functional food, consumer food habits transformation, Functional food market – global and India perspective.
Introduction
Health, Food and Medicine
Cardiovascular disease(CVD) has turned out to be the number one global health burden in recent years.
Since 1990, cases have nearly doubled from 271 million to 523 million in 2019 and mortality rates have also risen world over with an exception of few countries.
High systolic blood pressure and dietary risks are the two main reasons attributed to this.
Japan continues to have the lowest CVD cases and a high average life expectancy due to food and medicine integration.
Functional food originated in Japan in the 1980s as part of a government initiative to reduce healthcare burdens.
The term “Functional food” was first used in 1993 under “Japan explores the boundary between food and medicine”.
What is Functional Food?
“Food products can only be considered functional if together with the basic nutritional impact it has beneficial effects on one or more functions of the human organism thus either improving the general and physical conditions or/and decreasing the risk of the evolution of diseases”
Functional foods are foods consumed as part of normal diet but provide benefits beyond traditional nutritional value.
These foods boost immunity, digestion, bone health, hormone balance, diabetes management, aging well, and overall wellness.
Functional foods may be:
- Natural functional foods
- Foods with added components
- Foods with removed harmful components
- Modified foods
- Foods with enhanced bioavailability
Specific Benefits of Functional Food
- Enhances biological defence mechanisms
- Prevents diseases
- Supports recovery of body functions
- Controls physiological and psychological disorders
- Slows aging process
Table 1. List of functional foods, their associated bioactive compounds and benefits
Functional Food around the World
Functional foods have gained widespread acceptance in industrialized nations and have become one of the top food industry trends globally.
The global functional food market size was valued at $177,770 million in 2019 and is expected to reach $267,924 million by 2027.
Consumers are increasingly becoming health conscious and actively seeking foods that reduce chronic diseases and slow aging.
Major factors driving the market include:
- Growing aging population
- Rise in chronic diseases
- Higher disposable income
- Health consciousness
- Changing lifestyles
Functional Food in India
Functional food in India is still in its nascent stage despite being introduced more than two decades ago.
Health and wellness foods form a INR 10,352 crore market with a year-on-year growth rate of 10%.
Functional foods and beverages account for 35% of the Indian market.
Indian consumers are increasingly shifting toward healthier alternatives such as:
- Whole wheat foods
- Multi-grain foods
- Omega-3 fortified products
- High-fibre foods
- Low-fat and sugar-free foods
Figure 1: Health attributes that consumers seek from packaged food
Brands such as Aashirvaad, Quaker, Saffola, Kellogg’s, Britannia, Dabur, Nestlé, Amul, and ITC have introduced functional food products in India.
Need of Functional Food in India
Health Risk
India faces a major health burden due to obesity, hypertension, diabetes, and cardiovascular diseases.
Studies indicate that obesity and central obesity rates are rapidly increasing in India.
India had 62.4 million people with diabetes in 2011, projected to increase to 101.2 million by 2030.
Figure 2: CVD
The rise in convenience foods and sedentary lifestyle has contributed significantly to chronic diseases.
Functional foods are viewed as one solution to improve health and reduce disease burden.
Transformation in Indian consumers
Urbanization and changing lifestyles have transformed food consumption patterns in India.
Packaged foods, ready-to-eat meals, ordering-in, and eating out have become common practices.
Consumers are increasingly seeking foods rich in fibre, vitamins, proteins, calcium, and minerals.
There is accelerated demand for functional food products, creating tremendous growth opportunities for food companies.
Indian consumers are shifting from passive food consumption to active health-conscious choices.
Figure 3: Importance of health attributes in purchase decision
Conclusion
Functional foods provide strong opportunities for improving health and reducing disease risks.
Food scientists and companies are increasingly investing in developing scientifically backed functional food products.
Consumers need education regarding the actual benefits and limitations of functional foods.
Functional foods are not magic solutions and should be combined with healthy lifestyle practices such as exercise and balanced nutrition.
India’s functional food market shows strong growth potential due to increasing health awareness and changing food habits.
Strong clinical evidence, consumer education, and food literacy are essential to increase adoption of functional foods in India.
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