Data analyzed by Promar International show functional food product introductions are down by almost half in the first eight months of 2000 compared with the same period last year. The drop is across the board, but is most significant in beverages and snacks-particularly in the cluttered energy bar category.
“This is what we expected,” says Margaux Locklear, Strategic Marketing Analyst for Promar International. “The failure rate for new food products is always high, but simply adding gingko or echinacea to an existing product and slapping a new label on it doesn’t qualify as a strategy. A number of industry players, both large and small, are finding that out and have become more careful about entering what remains a tremendous growth market.”
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The current and future promise of functional foods-and strategies for exploiting market growth -is the focus of Promar’s recent study, “Food Doctors: The future of nutraceuticals in the United States.” It is available at a cost of $14,000. Study details including a table of contents and sample pages can be viewed in Adobe format at: http://www.promarinternational.com/Brochures/USNutraWsamples.pdf
“We pioneered analysis of the nutraceuticals market and we continue to monitor developments closely.” Locklear notes. “Our most recent review of Mintel’s Global New Product Database, a comprehensive source of information on new product introductions, shows that beverages still account for 57 % of new functional products, but the number of new drinks fell from 63 in January to August 1999 to just 28 this year, a stunning decline.”
Located in Alexandria, Virginia, Promar International is a global consulting and research company specializing in strategy development for food and beverage companies. For more information, please visit the web site at http://www.promarinternational.com or contact:
Kurt Redenbo
PROMAR International
1625 Prince Street, Suite 200; Alexandria, VA 22314 USA
kredenbo@promarinternational.com or 703-739-9090
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