Functional Food, Drinks & Ingredients: Consumer Attitudes & Trends

Published by: Datamonitor

Published: Feb. 20, 2008 - 97 Pages

Table of Contents

OVERVIEW

Catalyst

Summary

Table of Contents

Table of figures

Table of tables

THE FUTURE DECODED

Introduction: The functional food and beverage market is entering a critical era

Defining functional products: functional food and beverages contain specific physiologically active components that provide increased health benefits beyond basic nutritional functions

TREND: Consumers are more aware of food and dietary issues and are monitoring and adjusting what they eat and drink accordingly

Consumers have increasingly pro-active dispositions towards improving their general health

Consumers are actively looking to improve their health through diet on a global scale

Consumers are paying more attention to nutritional details and want to know more about functional products

Key takeouts and implications: health and nutrition is set to stay at the top of the agenda for the years ahead, creating a real incentive to invest in functional food and beverages

TREND: Aging populations are showing a strong concern and desire to improve their personal health

Aging is the dominant demographic trend across Europe, North America and much of Asia

Older consumers are making more concerted, active attempts to eat and drink in a healthier manner

Functional foods and drinks that target senior consumers are growing in popularity because they are a more vulnerable demographic

Key takeouts and implications: an aging society exacerbates the need for preventative or treatment benefits from food and beverage products

TREND: Consumers are looking for functional antidotes to both short-term and long-term physical and emotional health problems

The prevalence of long-term illnesses is increasing across Europe, North America and Asia, with hypertension being the most common problem

Diagnosis rates of heart-related health problems are growing in Europe and the US

An aging society is leading to more bone health problems being reported, most notably osteoporosis

The number of consumers suffering from gut health problems is relatively low, but growing rapidly

Individuals are increasingly reporting day-to-day emotional and physical health problems, such as fatigue and sleep deprivation

Job stress and difficulties in achieving a work/life balance contribute to sleep deprivation and fatigue

Continued increases in both adult and childhood obesity are paving the way for new satiety enhancing functional food and beverages

Busier lifestyles means that it is harder to meet nutritional requirements using traditional food and drinks, while less developed countries still have high nutritional deficiencies

People are even looking for 'easy' ways to make themselves more beautiful with beauty foods

Key takeouts and implications: despite long-term health problems becoming more apparent, consumers want solutions with more short-term, day-to-day relevancy

TREND: Consumers are spending more on functional food and drinks across Asia, Europe and the US

The US functional food market continues to witness impressive growth rates

The value of the European functional food and drink market is significantly lower than the US

Sales of functional food and drink products in Asia are being driven by increasing levels of disposable income and the long-established presence of such products

Beverages with health boosting credentials are especially popular in Japan, particularly energy drinks

Key takeouts and implications: functional food and beverages will continue to be driven by strong sales in the US and Asia-Pacific, while the European market is yet to reach anything like full potential

INSIGHT: Consumers are overly optimistic about their diet and are making more concerted efforts to consume a balanced and varied diet

A sizeable majority of consumers consider themselves to be in good health and perceive their diet relatively positively

Diversity and balance in diet is growing in importance, especially as people suffer from 'dieting-fatigue'

Key takeouts and implications: consumers suffer from an 'optimistic bias' with regard to their diets and are looking to embrace a more balanced and nutritious diet

INSIGHT: Consumers are skeptical about the sensory appeal of functional food and drinks

Consumers are most influenced by the taste, enjoyment and quality of the food and drink they consume

Healthy food is often perceived as bland and uninspiring

Key takeouts and implications: despite consumers making active attempts to eat healthier, they will not compromise sensory benefits for nutritional goodness

INSIGHT: Consumer awareness and understanding of functional food and drink claims and benefits is limited

Consumers have an increasing awareness about which food categories are good for them, without knowing a huge amount about the actual healthy component

Americans are increasingly aware of specific health benefits associated with various functional foods

Asia has a long history of consumption of foods for specific health benefits which helps boost awareness

Europeans exhibit a similar level of awareness and understanding of functional products as Americans

The impact of socio-demographics on consumer awareness towards functional food and beverages is inconclusive

Motivations for buying functional foods reflect a lack of knowledge about the specific health benefits of certain ingredients

Key takeouts and implications: awareness of functional products is increasing, but there is a general lack of understanding about the more detailed benefits derived from ingredients/food components

INSIGHT: Consumers have a lack of trust in food and drink manufacturers and in functional products more specifically

Consumers are skeptical about pharmaceuticals which may impact long-term adoption of functional products

Consumers find health claims confusing and contradictory

BUT, consumers are beginning to recognize the role that certain foods or food components play in reducing the risk of certain diseases

The credibility of functional claims is enhanced in certain scenarios

Consumers are skeptical about the price of functional food and drink

Consumers are showing a distrust towards food and drink with artificially inserted ingredients

Key takeouts and implications: overcoming consumer skepticism about a wide range of issues related to functional products and their purported benefits will be important in gaining long-term mass acceptance

INSIGHT: Natural ingredients are becoming a more important feature of functional products

New functional products released are touting the benefit of 'natural' health-boosting ingredients

Probiotics promoting general wellness are being released with greater frequency

New functional groceries in Asia-Pacific are commonly touted as being high in vitamins

New functional products in the US are reflective of consumer desire for health and convenience

New functional products in Europe continue to be high in vitamins and calcium

Key takeouts and implications: natural functional ingredients are becoming more popular

INSIGHT: Consumers of all ages are driving sales in the functional food and drink market, albeit for differing reasons

Parents are starting to take greater responsibility for the improvement of child health levels

The lifestyles of young adults are becoming increasingly pressurized

Younger workers are seeking out products that provide a quick-fix energy boost

Older consumers are still an important demographic group for functional food and beverage manufacturers

There are significant differences in the attitudes of senior citizens

Women, married couples and highly educated consumers are more likely to buy functional foods

Key takeouts and implications: although older consumers remain an important demographic group for the functional food and drink market, sales are being driven by a younger audience

Conclusions: the market drivers for functional products will have more influence than the inhibitors making it a highly important category for investment

ACTION POINTS

ACTION: Develop a broad range of products offering antidotes to the myriad of problems consumers face

Reassure postmenopausal women about the benefits of functional foods

Respond to the growing interest in mental wellbeing

Educate consumers about the danger of gut health problems and look to eradicate the embarrassment surrounding gut health more generally

Release products that help consumers sleep better, and prevent fatigue

Launch satiety-enhancing products to help health-conscious consumers suppress hunger

Promote the concept of 'holistic beauty' with the development of functional oral beauty formulations

ACTION: Align brands with the softer image of natural 'wholesomeness', rather than function and science

Avoid using scientific jargon on packaging and other above-the-line communications

Create an image of natural 'wholesomeness' to justify a premium price

ACTION: Use Productscan to track innovative functional products emanating from Asia

Embrace 'personalized nutrition' by aligning products with the requirements and needs of specific target audiences

Recognize and track the growing array of functional products from 'unconventional' categories

Promote hedonistic variables of functional products over and above health benefits

ACTION: Promote functional foods in a credible and honest manner

Promote functional products as an 'every little helps' option rather than a 'magic bullet' solution

Persuade consumers to use functional products regularly

Use websites and information books to explain the science behind functional products

Use independent experts as knowledge and information transmitters

Obtain and prominently display backing from an influential body

APPENDIX

Supplementary Data

Definitions

Methodology

Further reading and references

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: Consumer survey: the extent to which European and US consumers used nutritional information on product packaging to help make food and drink choices, by country, 2006

Table 2: The number of consumers aged 55 and over, by region, 2002-2012

Table 3: Consumer survey: the propensity of European and US shoppers who have taken active steps to eat healthier in the last twelve months

Table 4: Consumer survey: the propensity of European citizens undergoing a long-term medical treatment

Table 5: Consumers suffering from heart health problems (millions), Europe and US, 2002-2012

Table 6: Consumers suffering from bone health problems (millions), Europe and US, 2002-2012

Table 7: Consumers suffering from gut health problems (millions), Europe and US, 2002-2012

Table 8: Consumer survey: the extent to which Europeans feel they have 'lots of energy'

Table 9: Consumer survey: the propensity of European and US shoppers to supplement their diet's with vitamin, mineral or other dietary supplements in the last twelve months

Table 10: Overall and per capita US functional food and drink market value (US$ millions and US$), by product category, 2002-2012

Table 11: Europe functional food and drink market value (US$ millions), by country, 2002-2012

Table 12: European functional food and drink, spend per person, by country (US$), 2002-2012

Table 13: Europe functional food and drink market value (US$ millions), by product category, 2002-2012

Table 14: Asia-Pacific functional food and drink market (US $ millions), by country, 2002-2012

Table 15: Asia-Pacific functional food and drink market, spend per person (US$), 2002-2012

Table 16: Asia-Pacific energy drinks market value (US$ millions), by country, 2002-2012

Table 17: Consumer survey: US shopper's awareness and consumption of nutrients that have health boosting credentials

Table 18: The level of trust consumers have in various claims made by packaged goods manufacturers, by country, 2004

Table 19: Consumer survey: the propensity of European and US shoppers who have taken active steps to reduce their stress levels in the last twelve months

Table 20: US functional food and drink market value (US$ millions), by claimed health benefit, 2002-2012

Table 21: European functional food and drink market value (US$ millions), by claimed health benefit, 2002-2012

Table 22: Asia-Pacific functional food and drink market value (US$ millions), by claimed health benefit, 2002-2012

Table 23: Definition of disease type covered

List of Figures

Figure 1: The functional food and drink market is being driven by a broad range of drivers and inhibitors

Figure 2: A nutritional continuum helps pinpoint the role of functional food and drinks

Figure 3: The proportion of consumers aged 55 and above is increasing across Europe, Asia and the US

Figure 4: Functional food manufacturers are offering solutions to the problems facing aging populations

Figure 5: Hypertension is the most common long-term illness in the US

Figure 6: The majority of individuals in the Asia-Pacific region struggle to get enough sleep

Figure 7: US consumers are more concerned about day-to-day health problems

Figure 8: With so many consumers seemingly overwhelmed by their daily responsibilities, they are looking for ways to slow down in order to improve balance and vitality

Figure 9: Consumers increasingly recognize the importance of a balanced, varied diet and focus on inclusion rather than exclusion of nutrition

Figure 10: Despite the perceived health benefits, consumers will not buy functional foods if they do not like the taste

Figure 11: Consumers are unaware of specific types of antioxidants

Figure 12: Over 80% of US consumers purchase, or are interested in purchasing functional foods

Figure 13: Pharmaceuticals are less trusted than consumer packaged goods, a fact that may inhibit the market potential of functional food and beverages

Figure 14: Consumers are skeptical about the perceived health benefits of functional foods

Figure 15: Consumers believe functional foods improve heart health

Figure 16: Professional medical endorsement is an important pre-condition to Europeans trusting functional food and beverage claims

Figure 17: Nutritional consultants and medical doctors are the most trusted sources of information when it comes to the health claims associated with functional products

Figure 18: More fresh content is being incorporated into diets while processed options are being rejected in Europe and the US

Figure 19: Higher educated consumers are making the most effort to consume more organic products

Figure 20: Functional products in Asia tend to be high in vitamins

Figure 21: Products that are both healthy and convenient are popular in the US

Figure 22: New functional products in Europe continue to be high in vitamins and calcium

Figure 23: Developing functional food and beverage solutions specifically for children represents key innovation opportunity

Figure 24: Effective marketing is required to capture the interests of consumers with bone health problems

Figure 25: Recent food and beverage innovations reflect the growing demand for solutions that improve mental health/performance

Figure 26: New functional products are targeting sleep-deprived consumers globally

Figure 27: Energy-boosting products also have to be tasty and convenient

Figure 28: Satiety-orientated products can help prevent unhealthy snacking

Figure 29: Manufacturers are responding to the notion that inner health = outer beauty

Figure 30: Marketing material to support functional foods should be easy to understand

Figure 31: Manufacturers are using ingredients that are both natural and healthy with greater regularity, especially in functional formulations

Figure 32: The increasing specificity of product formulation against age and gender requirements is symptomatic of a trend towards 'personalized nutrition'

Figure 33: Functional food and drink manufacturers are emphasizing 'great taste'

Figure 34: Consumer watchdogs are encouraging shoppers to be scrupulous about their purchases of functional food and drinks

Abstract

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