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There is no FDA definition for functional food, however industry professionals and consumers understand that this term applies to ingredients or products that offer health benefits beyond their inherent nutrients.

Consumers are looking for more than hydration – they want added value from their food and beverages.

Claims are made across all beverage categories to address the specific need states of the end user. The functional beverage category, also referred to as nutraceuticals, is expected to reach $279 billion by 2021, which represents a 60% increase from 2014. Here are the key drivers that are contributing to the growth of functional food and beverages:

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