Global market review of functional foods - forecasts to 2013

Abstract

By 2013, just-food estimates that the global functional food market is expected to reach a value of at least US$90.5bn.

Growing consumer interest in the role of nutrition for health and wellbeing is a primary driver behind the success of the functional food market. Another is consumers' increasing desire to take a more proactive role in optimising personal health and wellbeing, without relying on pharmaceuticals.

As this consumer awareness in health continues to grow and develop, it means that opportunities for new product development (NPD) and marketing grow and develop, and whilst this report considers the fact that the functional food market is indeed one of the fastest-growing within the global food industry, it also investigates evidence that it is underperforming compared to some possibly ambitious predictions made over the past four to six years.

This 2008 edition provides an updated investigation into this sector, and considers the future of a functional food industry that will be focused on targeted nutrition, and built on more specific and scientifically-supported health claims.

The market is also becoming globalised, and is no longer limited to more established food industries such as Western Europe and North America. This latest edition of the report expands its focus to specific markets such as the UK, France, the US, Canada, Japan, China and Australia.

The report aims to quantify future profit opportunities in the functional food market to 2013, and just-food has analysed the major drivers and trends in order to better understand the future direction of the market, and its current role in the global food industry.

Rather than tackle generic trends such as health awareness, which has been widely discussed within the industry, just-food has addressed the issue by health concern.

The report also considers current trends in some of the major food categories such as dairy and confectionery. Potential NPD strategies are discussed, along with best-practice examples and recent new product launches.

Brand case studies are included to highlight and substantiate strategies and analysis throughout the report, as well as comments from relevant industry executives who were interviewed by the author.

Table of Contents

Chapter 1 Executive summary

Chapter 2 Introduction

• Introduction to the global functional food industry
• Defining functional food
• Consumer perceptions

Chapter 3 Overview of the global functional food market and future forecasts

• Introduction
• Asia
• Japan
• China
• North America
• The US
• Canada
• Central and South America
• Europe
• France
• Germany
• Italy
• Spain
• The UK
• Australasia
• Australia
• New Zealand

Chapter 4 Influential consumer and industry trends

• Introduction
• Controlling consumer perceptions
• Understanding, awareness and education
• Building trust - and keeping it
• Celebrity endorsements
• Nutritionists, dieticians and health professionals
• Education through branding and design of the packaging
• Natural, whole and organic
• Ingredients innovation
• Scientific support
• Targeting by age: the seniors versus the youngsters

Chapter 5 Global trends in functional foods by health concern

• Introduction
• ' No such thing as the next big ingredient'
• Targeting by health concern
• Ageing: CoQ10 enzyme
• Bone health and osteoporosis: vitamin K
• Digestive health: fibre
• Cancer: raw food
• Diabetes: choline
• External appearance: collagen
• Fertility and neural tube defects: folic acid
• Heart and cardiovascular health: plant sterols
• Immunity: probiotics
• Vision: lutein and zeaxanthin
• Mental acuity and brain health: soya
• Physical performance: caffeine
• Obesity: numerous functional food ingredients

Chapter 6 Global trends in functional foods by category

• Introduction
• Success check-list for functional NPD
• Bakery and cereals
• Confectionery
• Dairy
• Frozen and chilled food

Chapter 7 The future of functional foods

• Introduction
• Digestive and heart health will storm ahead
• Future NPD opportunities - targeted nutrition
• Hurdles to the development of the targeted nutrition market

List of figures

• Figure 1: Unilever wants to make 2008 the year for educating the consumer about cholesterol
• Figure 2: i-Bread targets specific health concerns with a novel product formula
• Figure 3: Naturally Gorgeous chocolate targets the premium and functional added-value confectionery market

List of tables

• Table 1: Defining functional food: six functional categories in relation to specific health benefits
• Table 2: Definitions of functional foods, nutraceuticals and fortified foods
• Table 3: Global functional food market by value 2006-2013 (US$bn and %)
• Table 4: Functional food market by value in Japan and China, 2006-2013 (US$m and %)
• Table 6: Functional food market by value in North America (Canada and US), 2006-2013 (US$m and %)
• Table 7: Functional food market by value in Europe (by major country/region), 2006-2013 (US$m and %)
• Table 8: Functional food market by value in Australia, 2006-2013 (US$m and %)
• Table 9: Functional ingredients examples for 15 health concerns
• Table 10: Heart health food market value, Europe (by major country) and US, 2006-2013 (US$m and %)
• Table 11: Digestive health food market value, Europe (by major country) and US, 2006-2013 (US$m and %)