Modern consumers, especially younger generations, are hungry for food and beverages that not only provide nutrition but also help support their issues, elevate mood, and help manage stress. Since these issues are getting prioritized nowadays, the hunt for unique food & beverages that can successfully prevent them is increasing. 

As per the World Health Organization (WHO), in 2019, around 301 million individuals in the world were living with anxiety disorders. Only about 1 in 4 individuals suffering from anxiety issues get proper medical treatment. 

Similarly, the National Council on Aging (NCOA) mentioned in a study that around 9% to 38% of the general population is affected by sleep apnea. Nearly 13.5% of adults above the age of 18 reported feeling exhausted or tired most days. 

With rising cases of such issues, government and private organizations are investing huge sums into the development of innovative food & beverages to enhance mental wellbeing. Government agencies are also providing incentives to food & beverage producers to conduct in-depth research in this field. This has further led key companies to constantly come up with state-of-the-art yet cost-effective products.

Future Market Insights (FMI) has found that the global functional food ingredient market is showcasing considerable growth on the back of high demand for personalized nutrition plans and dietary solutions. New entrants in the industry are focusing on launching cutting-edge functional food ingredients to compete with the already established firms.”

Probiotics is the New Game Changer

One of the most popular terms that Millennials have recently started using across social media platforms is probiotics. Companies are trying to gain new opportunities by putting their money into probiotics. 

With the rising number of forums and chatrooms discussing the gut-brain connection, probiotics have become a significant ingredient. Several dairy brands are creating awareness about immunity, digestive wellness, and probiotics. They have also started marketing their products by adding mind and mood-elevating properties to their probiotic-based offerings to propel sales.

Yakult Honsha, for instance, is a Japan-based beverage company that launched a 100-ml probiotic dairy mix called Yakult 1000 in 2021. The company is currently considered one of the most flourishing businesses in the probiotic dairy beverage industry in the world. Being a popular company in South America and Asia Pacific, Yakult is now planning to make headway with the launch of its digestive wellness probiotics in the United States.

In July 2023, the company declared that it plans to develop a new factory in Georgia, U.S., to expand its sales overseas. Yakult is aiming to invest nearly U.S. $305 million in building the factory, which is set to start operating in 2026. The new factory would enable the company to develop a robust supply chain network across the United States. 

By the end of March 2023, sales of the company’s products from its Mexican and American subsidiaries accounted for around 19% of operating profit and 13% of overall sales. Its operating income and overseas ratio of sales surpassed 40%. 

Functional Mushrooms to be the Next Superfood for the Mind & Body

Certain mushroom variants are playing an important role in boosting the mind and mood industry. Hericium erinaceus, or lion’s mane, for instance, is gaining impetus across the globe. It is a unique-looking fungus that has been used in Chinese medicine since time immemorial. Several companies are including this adaptogenic mushroom in their food & beverages as it has proved to lower stress levels in individuals. 

Even though mushrooms may not have mainstream appeal, today’s health-conscious consumers are seeking detailed information about food items from different sources, including social media platforms. These consumers are well-informed about the ingredients they are looking for in their products even before making a purchase. 

The mood and mind industry is growing at a steady pace, not because of various marketing tactics but only because of consumer pull. Seattle-based functional food start-up Forij uses lion’s mane in its products. It promotes the benefits of functional mushrooms by using them to make granola for those looking for delicious alternatives to mushroom supplements. The company sells its products across major grocery outlets, including Albertsons and Sprouts, in the United States.

Brands Infuse Functional Ingredients in Regular Food 

With rising cases of stress and anxiety, Millennial consumers have started connecting strongly with regular or everyday food & beverages. One such product is chocolate, which has been a trending topic for several food bloggers, nutritionists, and food companies. Consumers often associate chocolate consumption with a high spirit. Hence, leading players are targeting these consumers by infusing their chocolate offerings with functional ingredients. 

For example, in April 2023, JOYÀ, an emerging provider of functional snacks and supplements based in Ontario, introduced Functional Chocolates. These are nutrient-dense and adaptogen-powered. These also feature revered botanicals and sustainably sourced cacao to provide better-for-you benefits. 

The company’s new range has four different variants, including BALANCE, ZEN, FOCUS, and DEFEND. BALANCE promotes immune function and mind & body balance, while ZEN promotes reduced stress and relaxation. FOCUS and DEFEND, on the other hand, elevate concentration and support immunity, respectively. 

Japan-based Ezaki Glico, a renowned confectionery company, also unveiled Mental Balance Chocolate GABA for Sleep in May 2020. The company’s first product under the mind and body range was launched in 2005. These claim to have beneficial properties of amino acids to promote a relaxed state of mind and ease stress.  

Trivial Functional Food Concepts to Become Mainstream

The last few years showed how even regular food & beverages can develop incredible markets when they offer health benefits that are important for today’s consumers. Success is set to surge for those companies that would reinvent conventional food & beverages by providing health benefits and convenience.

With the constant evolution of nutrition science, the concepts that were once considered trivial have now become trending. The increasing prevalence of lifestyle-related diseases, including cardiovascular disorders and diabetes, has compelled consumers to look for healthy and organic products that would help them boost their overall health.

Innovations in food technology are expected to give rise to unique functional ingredients in the next 10 years, including plant-based alternatives, probiotics, and bioactive peptides. The demand for preventive healthcare and the significance of a healthy lifestyle are estimated to rise, paving the way for functional food companies to launch novel products.