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.

Report coverage

Chapter one offers an executive summary, extracting the key findings from each chapter.

Chapter two provides an introduction, both to the functional food market and the report. As well as making comparisons with previous editions and considering the aims of the report, we also look at the methodology and author behind it.

Chapter three gives an overview of the global functional food market, including forecasts to 2013. We look at the overall market value and % growth, then address the following developed markets in turn: Asia (Japan, China), North America (US, Canada), Central and South America, Europe (France, Germany, Italy, Spain, UK) and Australasia (Australia, New Zealand).

Chapter four analyses the current influential consumer and industry trends which are key to this market. Consumer trends profiled include: controlling consumer perceptions, understanding, awareness and education, and building trust and keeping it. Industry trends include: natural, whole and organic, ingredients innovation and scientific support.

Chapter five then focuses on global trends in functional foods by health concern. This includes a table providing examples of foods and ingredients associated with 15 common health concerns. We then look in more detail at the key functional ingredient for each of these concerns, which include ageing, cancer, diabetes, heart health and obesity.

Chapter six continues with the trend analysis, this time looking at global trends in functional foods by category. After drawing up a success tick-list for functional NPD, we review the major trends in the following product sectors: bakery and cereals, confectionery, dairy, and frozen and chilled food.

Chapter seven previews the future of functional foods, including market value and growth forecasts for the key upcoming markets of heart and digestive health food. We also look at future NPD opportunities and hurdles to the development of the targeted nutrition market.

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 %)