New Report from Nutrition Business Journal Examines Functional Foods Market
U.S. sales of functional foods reached $16 billion in 1999, or 3.3% of the total food market of $474 billion. Annual growth is forecast at 8-9% in the United States over the next four years, with the rate slowing gradually afterwards to reach $34 billion in 2010.
According to a comprehensive new report on functional foods by Nutrition Business Journal (San Diego, CA, www.nutritionbusiness.com), the 1990s saw virtually every major food corporation launch some form of functional food initiative – some successful and some unsuccessful. “In the highly competitive $474 billion U.S. food market, even minor product differences can translate into market share gains, and functional foods provide corporations with one of their most powerful opportunities for brand differentiation,” noted Patrick Rea, NBJ’s Research Director and author of NBJ’s Functional Foods Report 2001.
“Companies have taken a variety of approaches, resulting in a broad range of products in the functional food market,” said Rea. “However, the breadth and fragmentation of the opportunity leaves many niches open for innovators in large and small companies alike.”
Functional food is foremost a consumer-driven market, serving the desire of aging populations to exercise greater control over health and well being, delay aging, prevent disease and enhance well being and performance. Growth is expected to continue at a healthy rate of 6-9% for the decade, but scenarios exist for higher growth and lower growth depending on government regulatory activity, levels of consumer acceptance and education, the economy and other factors.
Specific regulations, government policies and product standards regarding functional foods are almost non-existent, making the need for ongoing development of science-based research, positive interaction with government and positive behavior and some self-regulation within the industry of utmost importance.
Nutrition Business Journal’s Functional Foods Report 2001 is a review of the market, the players, their strategies and the future of functional foods. In the report, NBJ profiles 35 manufacturers and marketers, projects sales for 39 functional food categories out to 2010, analyzes the successful and unsuccessful strategies introduced so far and quantifies the U.S. and global markets for functional foods. NBJ also compares sales channels, relative growth and drivers of growth for 8 aggregated functional food categories.
“What we’ve tried to do with this report is present a comprehensive and un-biased review of a growing market,” said Rea. “As the nutrition industry begins to show signs of maturity, there is little room for executives to capitalize on market opportunities. We, at NBJ, believe this report provides the most complete and accurate analysis of the functional foods market available today and is an asset to any company interested in this market.”