Credence Research Inc.: Health and Wellness Food Market to Reach USD 2,177.10 billion by 2032, Growing At An 9.80% CAGR - Credence Research

Leading Food Giants Drive Innovation Through Strategic Acquisitions and Product Launches in Rapidly Expanding Market.

PUNE, India, Oct. 14, 2025 /PRNewswire/ --

Market Overview

The global health and wellness food market continues its robust expansion trajectory, driven by unprecedented consumer demand for nutritious, functional, and clean-label food products. According to comprehensive market analysis by Credence Research, the Health and Wellness Food Market is projected to grow from USD 938.6 billion in 2023 to an estimated USD 2,177.10 billion by 2032, with a compound annual growth rate (CAGR) of 9.80% from 2024 to 2032.

Market Overview

The health and wellness food sector has emerged as one of the fastest-growing segments within the global food industry, reflecting a fundamental shift in consumer preferences toward preventive healthcare and nutritional awareness. This market encompasses a diverse range of products including organic foods, functional beverages, probiotic-enriched foods, plant-based alternatives, gluten-free products, low-calorie options, and fortified nutritional items designed to support overall health and well-being.

The market's impressive growth trajectory is underpinned by several transformative developments in the industry. Major food and beverage corporations have demonstrated their commitment to the health and wellness segment through significant strategic acquisitions and product innovations. In March 2025, PepsiCo announced an agreement to acquire Poppi, a prebiotic soda brand, for a total transaction value of $1.95 billion, or $1.65 billion net of anticipated tax benefits. The acquisition was completed in May 2025. This move allowed PepsiCo to capitalize on the growing consumer interest in gut health and functional beverages, a key area of expansion within the wellness food and drink market.

Similarly, Celsius Holdings reinforced its position in the better-for-you beverage category through its $1.8 billion acquisition of Alani Nutrition, announced in February 2025 and completed in April 2025. The bakery and clean-label segment also witnessed substantial consolidation with Flowers Foods' $795 million acquisition of Simple Mills, which was announced in January 2025 and completed in February 2025. These deals reinforce the sector's appetite for functional, wellness-oriented, gluten-free, and clean-label products.

In May 2018, PepsiCo acquired Bare Foods, a producer of baked fruit and veggie chips, as part of a long-term strategy to expand its health-focused portfolio. Then, in February 2025, PepsiCo announced a significant strategic shift toward healthier product offerings, focusing on value and better-for-you options. This was underscored by the acquisition of Siete Foods in January 2025 and full ownership of Sabra in November 2024, enhancing its presence in healthier categories. The company also announced plans to relaunch its Simply line and other core snack brands to emphasize cleaner labels and less artificial ingredients.

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Key Growth Determinants

Rising Health Consciousness and Preventive Healthcare Adoption

Consumer awareness regarding the direct correlation between diet and long-term health outcomes has reached unprecedented levels, fundamentally transforming purchasing behaviors across global markets. The COVID-19 pandemic accelerated this shift, with consumers increasingly prioritizing immune-boosting foods, functional ingredients, and nutrient-dense products as essential components of their daily diets. This heightened health consciousness extends beyond basic nutrition to encompass holistic wellness, encompassing mental health, digestive health, and chronic disease prevention through dietary interventions. The growing prevalence of lifestyle-related conditions such as obesity, diabetes, and cardiovascular diseases has further motivated consumers to adopt preventive healthcare measures, with functional foods and wellness-oriented products serving as accessible and proactive health management tools.

Technological Innovation and Functional Food Development

The integration of advanced food science, biotechnology, and nutritional research has catalyzed the development of sophisticated functional food products that deliver targeted health benefits beyond basic nutrition. Probiotic and prebiotic foods have experienced remarkable growth, with probiotic supplement sales reaching $2.1 billion in 2024, representing a 5.6% increase, while mushroom-based supplements generated $454 million with a 14.6% growth rate, and collagen products achieved $931 million in sales. The global probiotics market is projected to surge from USD 68.9 billion in 2024 to USD 143 billion by 2032, driven by rising awareness of gut health and advancements in microbiome science.

Clean Label Movement and Transparency Demands

Contemporary consumers demonstrate strong preference for products with simple, recognizable ingredient lists, driving the clean label movement that emphasizes natural, minimally processed foods free from artificial additives, preservatives, and synthetic ingredients. This transparency trend has compelled major food manufacturers to reformulate existing products and develop new offerings that meet evolving consumer standards for authenticity and ingredient integrity. The organic and non-GMO product segments have experienced particularly robust growth, especially in North America and Europe, where consumers actively seek environmentally sustainable and ethically produced food options. Government initiatives promoting organic farming practices and clean-label regulations have further accelerated this trend, creating favorable conditions for health and wellness food manufacturers to expand their portfolios with certified organic, plant-based, and sustainably sourced products.

Key Growth Barriers

Premium Pricing and Affordability Challenges

Health and wellness food products typically command significant price premiums compared to conventional food items due to higher production costs associated with organic certification, specialized ingredients, sustainable sourcing practices, and advanced processing technologies. This pricing differential creates accessibility barriers for price-sensitive consumer segments, particularly in emerging markets and among middle-income households where budget constraints influence purchasing decisions. Economic uncertainty, inflationary pressures on food prices, and varying levels of disposable income across different demographic groups continue to limit market penetration, despite growing consumer interest in health-oriented products. The challenge is particularly acute in developing regions where awareness of health and wellness benefits exists, but purchasing power remains constrained, creating a gap between consumer aspirations and actual buying behavior that manufacturers must navigate through value-oriented product strategies and accessible pricing models.

Regulatory Complexity and Compliance Requirements

The health and wellness food industry operates within a complex regulatory landscape characterized by varying standards, labeling requirements, health claim restrictions, and certification processes across different jurisdictions and markets. Manufacturers face significant challenges in navigating diverse regulatory frameworks that govern functional food claims, organic certifications, nutritional labeling, and ingredient approvals, particularly when operating across multiple international markets with distinct regulatory authorities and compliance standards. Recent regulatory actions, including the FDA's classification of product recalls at the highest risk level, as experienced by Quaker Oats with its pancake mix recall in February 2025 due to undeclared milk allergens, underscore the critical importance of rigorous quality control measures and regulatory adherence. These compliance requirements necessitate substantial investments in quality assurance systems, testing protocols, documentation processes, and legal expertise, creating barriers to entry for smaller manufacturers while increasing operational complexity and costs for established players in the market.

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Key Market Trends

Gut Health and Microbiome-Focused Products

Digestive health has emerged as a dominant theme in the health and wellness food market, with consumers demonstrating exceptional interest in probiotic, prebiotic, and fermented food products that support gut microbiome diversity and digestive function. The gut health trend extends beyond traditional yogurt and fermented foods to encompass innovative product categories including prebiotic sodas, functional beverages, probiotic-enriched snacks, and microbiome-supporting supplements.

Danone reported a return to volume growth in fiscal year 2024, fueled by rising demand for health and wellness products, especially in gut health and high-protein categories, demonstrating the sustained commercial viability of digestive health positioning. Scientific research linking gut health to broader wellness outcomes, including immune function, mental health, and metabolic health, continues to drive consumer interest and product development in this rapidly expanding segment.

Plant-Based and Alternative Protein Expansion

The plant-based food sector continues its evolution beyond initial meat analog offerings to encompass diverse protein sources, innovative formulations, and expanded product categories that appeal to flexitarian, vegetarian, and health-conscious consumer segments.

Global plant-based retail sales reached $28.6 billion in 2024, driven by growing interest in meat analogs across Europe and the Asia-Pacific region, demonstrating sustained market demand despite earlier concerns about category maturation. While Unilever completed the sale of The Vegetarian Butcher business to Vivera on September 1, 2025, reflecting strategic portfolio optimization decisions, the broader plant-based category continues attracting investment and innovation.

The market has shifted toward plant-based products that emphasize nutritional benefits, clean ingredients, sustainable sourcing, and culinary authenticity rather than merely replicating animal products, with manufacturers incorporating diverse protein sources including peas, mushrooms, lentils, and ancient grains. This trend aligns with consumer interest in environmental sustainability, animal welfare, and plant-forward dietary patterns that emphasize whole foods and minimally processed ingredients.

Key Opportunities

Emerging Markets and Middle-Class Expansion

The Asia-Pacific region presents exceptional growth opportunities for health and wellness food manufacturers, driven by rapidly expanding middle-class populations, increasing disposable incomes, accelerating urbanization, and rising health awareness particularly in China, India, Japan, and Southeast Asian nations. In 2023, the Asia-Pacific region dominated the market with a substantial 46.9% share and revenues of USD 435.2 billion, reflecting strong consumer demand for healthier food options and willingness to invest in premium wellness products.

Latin America and the Middle East & Africa regions, while currently representing smaller market shares, are experiencing rapid growth in demand for health wellness foods fueled by urbanization, rising health awareness, increasing economic stability, and changing consumer preferences. These developing markets offer significant expansion potential for international brands willing to adapt product formulations, pricing strategies, and distribution approaches to local preferences, regulatory requirements, and purchasing power levels.

Government initiatives promoting healthy eating habits, development of organic farming practices, and expansion of modern retail formats and e-commerce platforms are making health and wellness products increasingly accessible to wider populations across emerging economies.

Functional Beverage Innovation and Category Expansion

The functional beverage segment represents one of the fastest-growing and most dynamic categories within the health and wellness food market, with substantial room for innovation across hydration, energy, gut health, cognitive function, immune support, and recovery-focused products.

Major corporate investments validate the category's growth potential, including PepsiCo's $1.95 billion acquisition of Poppi and Celsius Holdings' $1.8 billion purchase of Alani Nutrition in early 2025, demonstrating sustained corporate appetite for functional beverage platforms.

Private equity firm Gryphon Advisors' $650 million investment in Spindrift shows continued interest in premium sparkling water and better-for-you beverage categories beyond traditional functional drinks. Opportunities exist for manufacturers to develop beverages incorporating novel ingredients such as adaptogens, nootropics, botanical extracts, vitamins, minerals, and functional fibers that deliver specific health benefits while meeting consumer preferences for clean labels, natural ingredients, and appealing taste profiles.

The convergence of hydration, nutrition, and targeted wellness benefits creates opportunities for category disruption and market share gains for innovative brands capable of delivering authentic functional benefits supported by credible scientific research and transparent ingredient communication.

Sustainability-Driven Product Development and Positioning

Environmental sustainability has evolved from a niche concern to a mainstream consumer priority, creating significant opportunities for health and wellness food brands that authentically integrate sustainable practices throughout their supply chains, production processes, and product positioning.

Consumers increasingly evaluate food purchases based on environmental impact considerations including carbon footprint, water usage, packaging sustainability, regenerative agriculture practices, and supply chain transparency. Brands achieving B Corp certification, implementing circular economy principles, utilizing sustainable packaging materials, and demonstrating measurable environmental commitments can differentiate themselves in competitive markets and command premium pricing from environmentally conscious consumers.

The intersection of health and sustainability creates particularly compelling value propositions, as consumers recognize the alignment between personal wellness and planetary health. Opportunities exist for manufacturers to develop products that deliver nutritional benefits while minimizing environmental impact through plant-based formulations, locally sourced ingredients, reduced packaging waste, and transparent sustainability reporting that resonates with values-driven consumer segments across developed and emerging markets.

Segmentation

Based on Type

• Functional Food
• Fortified and Healthy Bakery Products
• Healthy Snacks
• BFY Foods
• Beverages
• Chocolates
• Others

Based on Calorie Content

• No-Calorie
• Low Calories
• Reduced-Calorie

Based on Nature

• Non-GMO
• GMO

Based on Fat content

• No Fat
• Low Fat
• Reduced Fat

Based on Category

• Conventional
• Organic

Based on Distribution Channel

• Store-Based Retailers
• Non-Store Retailers

Based on free form

• Gluten-Free
• Dairy-Free
• Soy-Free
• Nut-Free
• Lactose-Free
• Artificial Flavour-Free
• Artificial Colour-Free
• Others

Based on Region:

• North America
• United States
• Canada
• Europe
• United Kingdom
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• Latin America
• Brazil
• Mexico
• Middle East & Africa
• South Africa
• United Arab Emirates

Regional Analysis

North America demonstrates strong market leadership in the health and wellness food sector, characterized by well-established consumer awareness regarding health benefits, proactive preventive healthcare approaches, and sophisticated understanding of nutritional science among consumers. Government initiatives promoting organic farming practices and clean-label products, combined with substantial investments by leading food brands in product innovation including plant-based, gluten-free, and functional foods tailored to health-conscious consumers, reinforce North America's dominant market position. The region's advanced retail infrastructure, e-commerce penetration, and premium pricing acceptance create favorable conditions for new product launches and category expansion.

Asia-Pacific is projected to register the highest growth rate during the forecast period, driven by rising disposable incomes, increasing health awareness among consumers, rapid urbanization, and expansion of modern retail formats and e-commerce platforms that make health and wellness products more accessible to wider populations. In 2023, the Asia-Pacific region held a 46.9% market share, reflecting strong consumer demand particularly in China, India, and Japan where growing middle-class populations demonstrate increasing willingness to invest in premium health-oriented food products. Government initiatives promoting healthy eating habits and development of organic farming practices further accelerate market growth across the region.

Europe maintains a significant market position supported by high consumer awareness, preference for organic and non-GMO products, and strong regulatory frameworks governing food safety and health claims. Latin America and the Middle East & Africa regions are experiencing rapid growth fueled by urbanization, rising health awareness, increasing economic stability, and changing consumer preferences toward healthier lifestyles, creating substantial long-term expansion opportunities despite currently smaller market shares..

Credence Research's Competitive Landscape Analysis

Credence Research's comprehensive competitive landscape analysis provides strategic insights into the health and wellness food market's evolving competitive dynamics, identifying key players, emerging disruptors, strategic partnerships, merger and acquisition activities, and innovation trends that shape market positioning and competitive advantages. The analysis examines how major multinational corporations including PepsiCo, Nestlé, Unilever, Danone, Mars, Kellanova, and Coca-Cola are strategically repositioning their portfolios through targeted acquisitions of growth-oriented wellness brands, divestment of underperforming assets, and internal product innovation initiatives focused on health and wellness categories.

Credence Research tracks emerging competitive threats from specialized wellness brands, direct-to-consumer startups, and regional players that leverage digital platforms, authentic brand positioning, and innovative product formulations to capture market share from established incumbents. The competitive analysis framework evaluates differentiation strategies including functional ingredient innovation, clean label positioning, sustainability credentials, personalization capabilities, and omnichannel distribution approaches that drive competitive success in the rapidly evolving health and wellness food market landscape.

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Key Player Analysis

• Danone (France)
• PepsiCo (U.S.)
• General Mills Inc. (U.S.)
• Kashi (U.S.)
• The Quaker Oats Company (U.S.)
• Mars, Incorporated (U.S.)
• Abbott (U.S.)
• Huel Inc. (U.K.)
• Green Valley Dairies (New Zealand)
• LIBERTÉ (Canada)
• Chobani, LLC. (U.S.)
• Stonyfield Farm, Inc. (U.S.)
• Forager Project (U.S.)
• Kite Hill (U.S.)
• LAVVA (Israel)
• Alter Eco Foods (U.S.)
• Lake Champlain Chocolates (U.S.)
• Simply Good Foods USA, Inc. (U.S.)
• Maspex (Poland)
• Mondelez International (U.S.)
• Kellogg Co. (U.S.)
• Nestlé (Switzerland)
• Yakult Honsha Co., Ltd. (Japan)
• GSK plc. (U.K.)

Recent Industry Developments

• PepsiCo (February 2025): Announced a strategic pivot toward healthier products, relaunching its Simply line and expanding Siete and Sabra brands. The company is targeting sodium reduction and the elimination of artificial ingredients, reinforcing its commitment to a health-oriented portfolio.
• Mars (February 2025): Revealed plans to acquire Kellanova to strengthen its position in the snacking segment and expand healthier product offerings, aligning with growing wellness trends.
• Danone (February 2025): Reported volume and mix growth for FY 2024, fueled by increased demand in gut health and high-protein categories, highlighting its successful adaptation to evolving consumer health preferences.
• Quaker Oats (February 2025): Issued a recall of its pancake mix due to undeclared milk, classified by the FDA as a high-risk incident, emphasizing the importance of stricter quality assurance.
• Abbott (January 2025): Received an innovation award for Lingo, a wearable glucose monitoring device promoting personal health management and technological wellness advancement.

Reasons to Purchase this Report:

• Gain a comprehensive understanding of the market through qualitative and quantitative analyses, considering both economic and non-economic factors, with segmentation and sub-segmentation details provided in terms of market value (USD Billion).
• Identify regions and segments expected to experience the fastest growth or dominate the market, with a detailed analysis of geographic consumption patterns and the factors driving or hindering market performance in each region.
• Stay informed about the competitive environment, with rankings of major players, recent product and service launches, partnerships, business expansions, and acquisitions from the past five years.
• Access detailed profiles of major market players, including company overviews, insights, product benchmarking, and SWOT analysis, to understand competitive advantages and market positioning.
• Explore the present and forecasted market landscape, with insights into growth opportunities, market drivers, challenges, and constraints for both developed and emerging regions.
• Benefit from Porter's Five Forces analysis and Value Chain insights to evaluate various market perspectives and competitive dynamics.
• Understand the evolving market scenario, including potential growth opportunities and trends expected in the coming years.

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