Despite costs of over US$10m to gain the right to claim that a food and drink product has health benefits, investing in the process is “worthwhile”, according to research.
A study by Business Insights published today (23 April) claims that, as consumers become more concerned and knowledgeable about their health, they are self medicating.
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As a result, the analysts believe that large food and drink players are focusing on the potential of the nutraceuticals market, triggering an increase in investment and takeovers – a trend the firm believes will continue to accelerate in the next five years.
This comes despite an increase in costs for clinical research needed to substantiate health claims made on both new and existing ingredients.
“The fact that we’re seeing so much growth in the market, despite the increased costs, illustrates the scope of potential,” Business Insights analyst Dr Cheryl Barton said.
Food and drinks manufacturers such as Danone and Nestlé have invested heavily to bring novel nutraceutical products to the health and wellness category.
However, with consumer healthcare divisions of some major healthcare companies also investing in nutraceuticals, most notable McNeil’s Benecol products, competition is high, Business Insight claimed.
“Despite the limitations caused by the tightened regulation and cost, there is massive potential for growth. In this rapidly expanding market, companies will need to differentiate themselves with products that offer an immediate health benefit in days rather than months, to keep consumers coming back for more,” Barton said.
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