The global functional food and beverage market was valued at $438bn last year and is projected to reach $983bn by 2034, according to Fortune Business Insights. At the same time, the global vitamins, minerals and supplements market was valued at $164bn last year. Rather than cannibalizing each other, these two categories are reshaping how consumers approach wellness.
Coca-Cola's launch of a probiotic soda exemplifies the mainstreaming of functional benefits. Major food and beverage brands now tout protein, gut-friendly properties, prebiotics and collagen on everyday packaging. This shift reflects a broader change in consumer behavior, according to Patrick Young, managing director of research consultancy PRS in VIVO. "It's the difference between 'taking something' and 'living it'," he says. Functional foods operate at a "lighter, more lifestyle-led level" and are easy to integrate into habits, whereas supplements remain relevant for consumers seeking "precision, dosage, or targeted intervention."
The two categories are beginning to blur. Supplements are borrowing food formats like gummies, powders and snackable versions, while food products increasingly adopt the language and positioning of supplements. Unilever's announced purchase of US-based greens supplement brand Grüns signals food manufacturers' confidence in the supplements space. The company said it saw "a significant opportunity to scale the brand."
Consumers are stacking both. Kieran Fisher, founder of sports nutrition brand Warrior, describes customers who purchase his Warrior Raw Bar (containing 20g of protein, 7g of fibre and prebiotics) as a snack, then separately buy creatine powder for targeted gym performance. These "self-optimisers" represent a growing group willing to invest in both categories.
UK health and wellness retailer Holland & Barrett reported 11% year-on-year revenue growth to £981m for the year ending September 2025. In the US, supplements retailer GNC outlined growth plans after a financial restructure. Neither market shows signs of contraction.
The future likely involves what Young calls a "layered system": functional foods handling everyday habitual health, while supplements serve specific needs. Some experts envision VMS retailers evolving into integrated wellness destinations where consumers can buy both supplements and functional food and drink alongside expert advice.
Success in both spaces will require clarity. Generic terms like "healthy" or "better for you" no longer suffice. Consumers increasingly demand specificity around gut health, protein, hydration, mood, metabolic support and longevity. As the categories mature, retailers will prioritize products with clear science, credible ingredients and easy-to-understand benefits.