Functional foods dominate producers’ strategies, according to Anna Ibbotson, Food Programme Manager with Frost & Sullivan , the UK-based international marketing consulting firm.


Ibbotson explains that “Activity within the food industry continues to focus upon the functional food sectors with the launch and development of numerous functional ingredients and products during 2001.” Large food and beverage companies through in-house R&D, relationships with ingredients manufacturers or acquisition strategy are increasing their product portfolios to incorporate functional products in a bid to maintain market share and margins, “in an ever price conscious and competitive market.”


The dietary supplement industry is also seeing the influence of the functional market with increased single and multi-supplements, containing a greater array of ingredients from plant extracts to amino acids.


The Frost & Sullivan executive added, in a statement released by the company, that increased investment in R&D, branding and strategic alliances with technology providers “is driving development within this sector, as well as reliance on scientific research to support claims and educate consumers.” 


By Aaron Priel, just-food.com correspondent

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