Functional Food & Drink Consumption Trends

Published by: Datamonitor

Published: Feb. 7, 2007 - 74 Pages

Table of Contents

CHAPTER 1 EXECUTIVE SUMMARY

The hot topic

The future decoded

Health issues are becoming increasingly important as a result of an aging population

Functional food consumption is growing fast

Consumers have an attitude-behavior gap concerning healthy eating

Functional foods offer a solution to time-pressured consumers

Consumers are wary of health-related claims on food and drink products

The increasing availability of health information has seen consumer awareness on health issues grow

Action points

CHAPTER 2 THE FUTURE DECODED

Introduction

Health is regarded as the most important consumer trend among manufacturers

Defining functional foods and drinks

TREND: Health issues are becoming increasingly important as a result of an aging population

The proportion of Senior consumers is growing

The Senior demographic cannot be targeted as one group

Early Seniors will lead increasingly active lives as retirement age rises

Functional health needs vary across the Senior demographic

TREND: Lifestyle diseases are becoming more common

Bone health problems are on the rise and affect many consumers

A rise in heart problems has prompted a rise in the number of products addressing this need

More people are targeting gut health but don't view it as a serious medical concern

Dairy is the most popular category in addressing gut health

Dairy products also dominate the probiotic sector

The probiotic sector is bigger than the prebiotic sector

TREND: Functional food consumption is growing fast

The US functional food and drinks market is larger than in Europe

The dairy sector is set to overtake soft drinks as the largest category in the US functional food and drinks sector

Functional yogurts have been a key growth driver in the dairy segment

Savory snacks suffer due to their perception as an unhealthy product

Energizing products continue to dominate the US market

The European functional food and drink market is growing at a similar rate to the US

Europeans consume a significant amount of functional confectionary

Energy products dominate functional food and drinks in Europe

Germany and the UK account for the most significant portion of Europe's functional food and drinks sales

The rising success of 'naturally functional' food and drink poses a threat and opportunity to the functional market

Naturally functional food consumption will be boosted by rising interest in '5-a-day' consumption and general healthy eating patterns

Green tea: a naturally functional beverage

INSIGHT: Parents are increasingly concerned about their kids' health

Parents are taking more control of their kids' eating habits

Consumers of parenting age are trying to eat more healthily and this has a knock-on effect

Household eating rules set by parents are important to developing children's healthiness

INSIGHT: Time pressures drive consumers to nutraceuticals

INSIGHT: Consumers are wary about health related claims on food and drink products

People are increasingly skeptical about corporate health claims

The lack of credible backing may inhibit a health food's success

Advanced packaging technology may reduce skepticism

INSIGHT: The increasing availability of health information has seen consumer awareness on health issues grow

Health issues are increasingly being reported on

Health issues are receiving increased coverage in the media

The Internet has proved a useful tool in making consumers more health aware

Consumers are increasingly relying on self-diagnosis

INSIGHT: While health is becoming increasingly important taste remains paramount

Functional ingredients restrict ability to meet consumer flavor preferences

Conclusions

CHAPTER 3 ACTION POINTS

Introduction

Develop trust as a cornerstone of your nutraceutical proposition

Act in a socially responsible way

Seek endorsements from reputable organizations

Extend health brands that consumers already trust

Consumers must understand products to trust their claims

Realistic and focused claims will benefit the sector

Alter the ingredient makeup of typically unhealthy products

Substitute unhealthy components with more healthy ingredients

Marry functional benefits to highly indulgent product categories

Target children with functional products that address parents concerns over health and nutrition

Develop child specific functional products

Case study: Danino utilizes 'junk food' design cues to appeal to children as well as adults

Educate the consumer sufficiently about the health benefits derived from the consumption of a particular product

Source natural products and incorporate them into functional offerings

Use the Internet to promote products

Consider whether your offering is better than alternative solutions

It is important to be a better alternative at the right occasion

Does your offering really provide a better consumer solution than existing options?

CHAPTER 4 APPENDIX

Supplementary data

Definitions

Research methodology

How to contact experts in your industry

List of Tables

Table 1: Responses to the question: ""To what extent have you done the following in the past year? Used nutritional information on packaging to help make food and drinks choices"", 2006

Table 2: Population by age group (m), Europe and US, 2001-2011

Table 3: Consumers suffering from bone health problems (m), Europe and US, 2001-2011

Table 4: Consumers suffering from heart health problems (m), Europe and US, 2001-2011

Table 5: Consumers suffering from gut health problems (m), Europe and US, 2001-2011

Table 6: US functional food & drink market value (US$ m), by category, 2001-2011

Table 7: US functional food & drink market value (US$m), by claimed health benefit, 2001-2011

Table 8: Europe functional food & drink market value (US$ m), by category, 2001-2011

Table 9: Europe functional food & drink market value (US$ m), by claimed health benefit, 2001-2011

Table 10: Europe functional food & drink market value (US$ m), by country, 2001-2011

Table 11: Overall green tea values (US$ m), US & Europe, 2000-2010

Table 12: Key influencing factors in children's snacking needs

Table 13: Functional bakery & cereals market value (US$ m), by category, Europe 2001-2011

Table 14: Functional confectionery market value (US$ m), by category, Europe 2001-2011

Table 15: Functional dairy market value (US$ m), by category, Europe 2001-2011

Table 16: Functional savory snacks market value (US$ m), by category, Europe 2001-2011

Table 17: Functional soft drinks market value (US$ m), by category, Europe 2001-2011

Table 18: Functional other food and drinks market value (US$ m), by category, Europe 2001-2011

Table 19: Europe functional food & drink market value (US$ m), by claimed health benefit, 2001-2011

Table 20: Definitions of disease types covered

List of Figures

Figure 1: Cholesterol lowering products are more relevant for Early Seniors

Figure 2: Examples of products which use calcium as a selling point

Figure 3: Examples of products which are said to help maintain a healthy heart

Figure 4: Examples of products which have received backing from an influential body

Figure 5: Probiotic product innovation is ten times greater in yogurts than its closest category across Europe and the US, 2001-06

Figure 6: Yogurt is the leading product category for prebiotic food products, 2001-2006

Figure 7: An example of a prebiotic bakery product

Figure 8: The extent to which European consumers have used nutritional information on packaging more or less in 2006 compared to 2005, to help make food and drinks choices

Figure 9: A growing number of products incorporate pomegranate for its health benefits

Figure 10: Functional and fortified food products are increasingly being targeted at babies

Figure 11: The extent to which European and US consumers sought food and drinks which are both convenient AND healthy more or less in 2006 than 2005

Figure 12: Examples of single-serve beverage products which satisfy both the health and convenience mega-trends

Figure 13: The Internet has changed the way consumers relate to health information, physicians, companies and other consumers

Figure 14: Sirco is an example of a product which has received backing from a professional body

Figure 15: Examples of confectionery products which offer a healthy option

Figure 16: Functional and fortified products need to be heavily promoted to parents, but equally accessible and fun to Kids

Abstract

Introduction

Functional Food & Drink Consumption Trends tracks the continuing rise of functional food and drinks and analyses the factors driving consumer interest in the market. It also reviews the concerns that still pose obstacles to market growth and offers best practice suggestions on how to answer these and secure consumers' trust, key to the long-term viability of any functional offerings.

Scope

In-depth quantitative data sizing European and US functional food/drink markets, tracking functional product releases and relevant demographics.

Qualitative analysis of the key trends and insights into consumers' functional food needs.

Detailed action points offering practical strategies based on the trends and insights analyzed in the report.

Countries covered: France, Germany, Italy, The Netherlands, Spain, Sweden, the UK and the US.

Highlights

Consumer health awareness continues to rise, the increasing availability of health information going hand in hand with the aging of populations and increased propensity for lifestyle diseases. The growing importance of the Senior (50+) demographic will influence functional food sales making it essential marketers cater for this audience's needs.

Functional food consumption is growing fast. The US market was worth US$21.3bn in 2006 whilst the European market reached US$8bn. The interest in functional foods and drinks has been fuelled by a desire for convenience, as well as health. Busier lifestyles are making it harder to meet nutritional requirements using traditional food and drinks.

Consumers are wary about health related claims on food and drink products and skeptical of their efficacy. The breadth of functional claims and the lack of governance and independent validation have fuelled consumer concern. Success in the market is increasingly dependent on establishing a relationship of trust with the consumer.

Reasons to Purchase

Obtain exclusive data on functional food and drinks market sizing in the US and Europe.

Uncover fresh insights into the motivations behind consumers' functional food purchases.

Improve your marketing strategy by tailoring functional releases to best fit demographic groups.

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