Functional CPG’s Create Market Boom in Personal Health & Wellness

Across the world the pandemic has created a ripple-effect infiltrating every area of our lives. If you choose to see the silver lining as opposed to the devastation the pandemic has caused, you could look toward the surge of public interest in personal health and wellbeing.

According to a recent McKinsey Study, the global personal wellness market is estimated to be worth over $1.5 trillion1. With the vast amount of functional Consumer Packaged Goods (CPG’s) including foods, beverages and supplements on the market, there is something to fill any need for every health-conscious consumer.

Since the onset of COVID-19 many people have prioritized their personal health and wellness. There is a growing divide between the way consumers are obtaining functional CPG’s. Online sales platforms such as Amazon, individual supplement companies as well as Food, Drug, Mass, Convenience (FDMC) accounts such as Walmart, Target and Costco are flourishing2. While having both advantages and disadvantages, all retailers are seeing the financial opportunity within the expansive growth of the functional CPG market.

What are Functional CPG’s?

Consumer packaged goods (CPG’s) is a term used in the industry for products which consumers use daily and need to be replenished on a consistent basis. CPG’s is an inclusive term which could be used to describe many consumer products ranging from household items such as paper towels to grocery products like a bag of potato chips.

Functional CPG’s, or nutraceuticals, are foods, beverages and supplements which have a positive effect on our health beyond their basic nutritional value. Functional CPG’s have become widely popular creating an enormous spike in the health and wellness market.

Functional foods are broken down into two categories, conventional and modified. Conventional functional foods are natural whole-foods that contain a wealth of nutrients, vitamins and minerals. Some examples of conventional functional foods and supplements are:

  • Kiwi
  • Broccoli
  • Cashews
  • Chia seeds
  • Black Beans
  • Tempeh
  • Ginger
  • Turmeric

Modified functional foods are products that have been fortified with nutrients such as probiotics, prebiotics, minerals, fiber or vitamins to support our health. Some examples of modified functional foods are:


  • Milk (Silk Almond, Coconut or Cashew, Kiki)
  • Cereal (Kind Granola, Kashi, Special K)
  • Juices ( V-8, Naked Juice, Bolthouse Farms)
  • Grains (Dave’s Bread and Colavita Pasta)3

Celsius is an example of a popular functional beverage soaring on today’s market. Considered a pre-workout drink, Celsius is Certified Vegan without GMO’s, artificial flavors, sugar, aspartame, colors or preservatives. It is a favored carbonated energy drink and a product of Celsius Holdings, a global company that produces functional foods, beverages and dietary supplements. In June, Celsius Holdings had a net worth of $4.86 billion4.

Jumping on the Functional Food & Beverage Bandwagon

Historically, the first functional beverages were coffee and tea. Today, CPG and FDMC accounts both online and in-store, have been inundated with a myriad of functional beverages, widening the choice for consumers. Even well-established brands, such as Starbucks, have jumped on the Functional-beverage-bandwagon by selling fortified cold coffee beverages containing guarana, B vitamins and ginseng.

Whether online or in brick-and-mortar stores, retailers are providing more shelf space and stocking up on functional beverages that offer a wide variety of healthy advantages. Some of the positive benefits that functional CPG beverages provide are a boost to the immune system, added energy, managing anxiety and promoting better sleep.

Functional Food, Beverage & Supplement Market Continues To Rise

Although somewhat strained by the disruption in the global supply chain, it is curious that the functional CPG health and wellness market has grown exponentially. In a study conducted by “Research and Markets,” 89% of consumers believe that fortified foods and beverages contain health benefits beyond their basic nutrition. This adaptation in lifestyle resulting from the pandemic is clearly defined by the enormous growth within this market.

Although we are well over two years into the pandemic, consumers who have added functional foods and beverages into their daily regimen have continued to do so, especially if they were fortunate enough not to become infected with COVID-19. These healthy habits were formed, and it is predicted that they will continue with consumers once the pandemic has been arrested2.

Botanicals are also used in supplements, foods and beverages and are now part of the functional CPG market. This includes botanicals such as:

  • Mint
  • Cinnamon
  • Lemongrass
  • Garlic
  • Ginger

The interest in buying CPG’s has grown in the nutraceutical arena due to the wealth of research and information available to the public, allowing them to become familiar with their potential health benefits.

There has also been a shift in the method by which these items are being bought via the internet, food clubs or subscription-based plans. Websites that sell functional CPG’s have information readily available for you to browse while choosing your specific CPG product. Informative content creates an informed consumer. With platforms such as Amazon Prime, Instacart and other preferred websites where functional CPG’s can arrive by next or same-day delivery, CPG’s have now started to move from brick-and-mortar buildings to online providers.

Functional CPG’s Purchased Online

Global supply chain disruptions continue not only from the pandemic but also the invasion of the Ukraine, both contributing to the way consumers obtain GPG products4. The lock-downs during the beginning of the pandemic led to a massive increase of online shopping. Products that would regularly be purchased at your local grocery store were being bought online.

This led to a level of comfort for the consumer to depend on online shopping, auto-shipping and other forms of direct shopping from company to consumer. The offer of free shipping, coupons and discount codes, ratings and reviews, easy returns and swift checkout all have fueled online over in-store shopping5. The convenience and shift in shopping behavior became the new norm, and although lock-downs were lifted, functional CPG’s have continued to be bought online and delivered directly to the consumer. Another factor which has contributed to the rise in the market of functional GPG’s5.

Outlook for the Future

The functional CPG and FDMC markets for food beverages and supplements are forecast to increase exponentially each year. This is a market that has a bright future. With the advancements in science and technology intertwined with the food and beverage market, who knows what the next Monster or Celsius will be? We know one thing is for sure, “healthy” is a trend that is here to stay.

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**These statements have not been evaluated by the FDA. This product is not intended to diagnose, treat, cure or prevent any disease.


  1. How to Thrive in The Global Wellness Market,
  2. The Nutraceuticals Market Is Booming. Will It Last?,
  3. What Are Functional Foods? All You Need To Know,
  4. Celsius Holdings,<
  5. Why Do People Shop Online?,
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