Functional foods being driven by greater responsibility for personal health care, according to a new report.
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The research by Mintel finds the European market for functional foods (foods which are designed to provide a specific benefit with long-term use) to be third in value behind that of Japan and the US.
In contrast to the relatively stagnant overall food market in the UK, functional foods and drinks provide a long-term opportunity for growth. Valued at £667m, the functional food and drink sector grew some 159% between 1999 and 2001.
Research questioning around 1,000 adults finds 80% of the population have health concerns. Concerns vary significantly between men and women, with breast cancer topping female worries (at 40%) and cancer topping male concerns at 32%.
“Health concerns continue to drive the awareness of the functional foods market. The sector is also likely to benefit from demographic changes, particularly the ageing population, which will increase the need for preventative actions to counter the health statistics” comments Elvira Doghem-Rashid, consumer goods consultant.
Consumers take health into their own hands
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By GlobalDataResearch looking in to consumer actions taken to protect personal health finds exercising has become more prevalent, with over 50% of adults claiming to participate regularly. Just 31% of adults now visit their GP once a year for a check-up, compared to 46% in 1998.
The decrease in the number of respondents visiting their GP for an annual check-up between 1998 and 2001 is in line with the Government’s strategy of encouraging people to take more responsibility for their own health in order to reduce the burden on NHS resources.
“Today’s consumer is more likely to take greater responsibility for their own health. Many consumers will be attracted to everyday foods and products that offer health benefits without a major change in eating habits or lifestyle, so long as taste is not compromised.” Comments Elvira.
By contrast, the number of smokers in Great Britain has increased by 4 percentage points since 1998, with just 52% of the population now claiming not to smoke regularly.
Lack of awareness for Prostrate cancer
Around a quarter of men worry about Prostrate cancer, with concern peaking among the 45-54 age group. Prostrate cancer mortality increases with age, peaking at 75-84 years. However, Mintel’s consumer research looking at men aged 25 and over finds concern to be lowest among 35-44 year olds, and there is only an average level of concern among over 64s.
“Unlike increased concern about breast cancer among younger women, there is a particular lack of concern about prostrate cancer among younger men, reflecting lower overall awareness of prostrate cancer among younger men” comments Elvira.
Obesity – low on the list of consumer concerns as nation grows in size
Exclusive research highlights key consumer health concerns as cancer (at around 30%) high blood pressure (at 26%) asthma (at 25%) and arthritus at 24%.
Despite the rapidly increasing prevalence of obesity, this rates as one of the lowest consumer health concerns with just 9% of adults highlighting this as a key issue. Worryingly, a fifth of the population is now classified as obese, this compares to less than 10% in the 1980s.
Innovative products prove risky business
Looking at sales of functional foods by sector shows breakfast cereals accounting for the largest single value share of the market at 26%, followed by spreads and stimulation & energy drinks which account for around 20% each. There are some categories where functional foods accounts for as much as 70% of sales – namely stimulation/energy drinks. Presence of functional foods are also prevalent in the spreads (26%) and breakfast cereals (18%) categories. Some 40% of consumers had purchased functional foods in the past 12 months, this rose to 45% of women. The most popular product was Flora pro.activ spread at 19%, followed by Yakult drink at 15%.
In terms of the future, developing innovative products is a highly costly process requiring huge investment, and from past experience shows that there is no guarantee of market success. In the short-to-medium term the greatest market growth will be achieved through product repositioning. Where big brands with high market value are repositioned, this will provide dramatic increases in the total functional market size, such that it will be characterised by surges in value rather than graduated growth.
“Provided that repositioning stimulates sales growth, the expense of repositioning will be worthwhile to manufacturers and more brands will follow suit” comments Elvira.
