An overview of the Functional Foods: Key Trends by Product Categories and Benefits report. Within the vibrant U.S. functional food and beverage market, weight management and satiety, sports nutrition, and energy are areas showing exceptional activity, in part due to the growth of products and categories targeting breakfast and snacking occasions. As a result, important shifts in brand positioning, benefits and product claims are taking place.

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Functional Foods:
Key Trends by Product Categories and Benefits

2. Functional Foods:
Key Trends by Product Categories and Benefits
Functional Foods: Key Trends by Product Categories and Benefits has been prepared by
Packaged Facts. We serve consumer product and service companies and allied businesses in the
United States and internationally with a complete line of research publications.
Packaged Facts market intelligence reports are designed to aid the executive decision-maker by
providing essential data and concise analysis with a focus on marketplace trends, consumer
insights, and emerging opportunities.
Publication Date: February 2015
Price: $2,250
Report Length: 127 Pages
All rights reserved. No part of this report may be reproduced without permission of the publisher.
Copyright © 2015 Packaged Facts

3. REPORT ABSTRACT
Three areas of the vibrant U.S. functional food and beverage market of particular interest in 2015 are
experiencing major transformations in keeping with cultural and lifestyle shifts. Weight management and
satiety, sports nutrition and energy are areas of the market showing considerable activity, in part due to
the growth of products and categories targeting breakfast and snacking occasions. As a result, noticeable
changes in brand positioning, benefits and product claims are taking place.
Although one-third of adults say they are watching their diet to lose weight, consumers continue to shun
brands and foods focused on weight loss in favor of those promoted as healthy. This has traditional weight
loss brands undertaking significant repositioning efforts as they deemphasize weight loss and dieting and
expand their reach to include wellness more generally, with impacts noticeable across several product
categories.
Sports nutritional products are being reinvented. Sports beverage brands are attempting to find their
rightful place in the market without being associated with soft drinks and the negative health associations
of excess sugar consumption, including obesity and diabetes. They are also taking care to avoid being seen
as too similar to energy beverages, which are under intense scrutiny for posing a health threat from high
levels of caffeine. Newer market entrants and reformulated iconic brands of sports drinks portray a
healthier image, increasingly containing natural ingredients, less sugar and foregoing artificial ingredients.
Nutrition bars used by athletes and sports enthusiasts are rapidly evolving from dessert-like sweet foods
with added nutrients to being made with many more inherently nutritious whole food ingredients,
including meat and savory flavor combinations.
To satisfy consumer needs for energy, single minded focus on highly caffeinated drinks is giving way to a
wider selection of products that are positioned to offer long lasting energy. Targeting breakfast and
snacking, products touting lasting energy benefits span categories including cereal, bars, meat snacks and
nuts.

4. SCOPE OF THE REPORT
Functional Foods: Key Trends by Product Categories and Benefits provides extensive discussion of the
categories, products, benefits, brand positioning and claims associated with market changes taking place
related to weight loss and satiety, sports nutrition and energy. In addition to discussing current trends in the
marketplace, the report highlights potential opportunities and anticipated direction of future development.
Coverage of each of the three areas includes discussion of recent changes in scientific understanding of
relevant health and wellness topics, regulatory developments, ingredients and nutritional comparisons among
products.
Methodology
The information in this report was obtained from both primary and secondary research. Consumer data were
derived from a Packaged Facts national online consumer survey conducted in January 2015 with a panel of
2,000 U.S. adults (age 18+) balanced to the national population on the primary demographic measures of
gender, age range, ethnicity, geographic region, marital status, presence or absence of children in the
household and household income.
Additional consumer data were obtained from the Simmons National Consumer Survey through Summer 2014
from Experian Marketing Services. On an ongoing basis, Experian Marketing Services conducts booklet-based
surveys of a large and random sample of consumers (approximately 25,000 for each 12-month survey
compilation) who in aggregate represent a statistically accurate cross-section of the U.S. population.
Retail sales figures credited to IRI (Chicago, IL) are based on IRI aggregated multi-outlet (MULO) sales tracking,
which represents sales through U.S. supermarkets, drugstores (including Walgreens, CVS and Rite Aid), mass
merchandisers (Wal-Mart, Target, Kmart and Shopko), warehouse clubs (Sam’s Club and BJ’s, but not Costco),
dollar stores (excluding Dollar Tree) and military commissaries.

5. Who Will Benefit from this Report:
• Food and beverage manufacturers
• Food and beverage retailers
• Ingredient companies
• Private label marketing firms
• Advertising agencies
• Investment banks
Benefits of this Report Include:
• Consumer research findings related to health and wellness and the role of functional foods
• Coverage of multiple functional food markets
• Weight management and satiety (Sports nutrition and energy)
• Discussion of major trends related to: Categories, positioning, benefits and claims
• Numerous tables and figures providing product composition information and comparisons
• Identification of opportunities for food and beverage manufacturers
• Prediction of future trends

6. SAMPLE INSIGHTS & HIGHLIGHTS
• The functional food and beverage opportunity areas covered in this report include weight loss, management
and satiety, sports nutrition and energy, including both short-term, or energy boost, and long lasting energy
associated with getting through the morning or an entire day. Each area has been selected as a result of a high
level of current consumer and food and beverage industry interest and anticipated future activity.
• Underlying the opportunities for functional foods and beverages in 2015 and beyond are time-strapped and
stressed Americans, more health-engaged consumers, the demise of three square meals and regular meal
times and persistent overweight and obesity, which continues to be an enormous challenge in the United
States.
• Driving the better-for-you snacking trend, both between and at meals, are Gen X (ages 35 to 48), Millennials
(ages 24 to 37), and Generation Z (ages 0 to 23). All three demographic groups have a positive attitude about
snacking along with a desire to eat more healthfully and have a need for convenience.
• In relation to opportunities for functional foods and beverages, more than 40% of U.S. adults are watching their
diet to improve their health generally and more adults are watching their diet to lose weight than to maintain it.
• Resoundingly, the top health and wellness concerns motivating adults to seek out foods and beverages
targeting them include high cholesterol, weight loss, high blood pressure, weight management, digestive health,
improving heart health, joint and bone health and immune system health.
• Both breakfast and snacking are active opportunity areas for weight management that leverage satiety benefits
associated with high protein and high fiber ingredients.
• Although dieting is deemphasized, 100 calorie (or fewer) portion pack snacks highlighting portion control and
high portability continue to be a focal point when it comes to snacks for managing weight. Packaged Facts
anticipates more launches of portion controlled snacks targeting weight management consumers featuring
more whole foods and combinations of foods to provide greater satiety and more balanced nutrition.

7. SAMPLE INSIGHTS & HIGHLIGHTS
• Growing consumer interest in recent years for more natural food and beverage products, both generally and
those made without pesticides, artificial colors, flavors and other additives, extends to sports drinks and points
to a gap in the market that several small start-ups and, increasingly, not-so-small acquirers and new entrants,
are actively attempting to fill. Packaged Facts anticipates that this activity will continue as long as there is
market share up for grabs, which reformulation and repositioning by current market leaders, to both address
and avoid growing criticism, suggests.
• The future of energy and recovery foods designed for athletes and others who are physically active appears
destined to be dominated by savory flavors and ingredients, including meat. Many athletes have long requested
energy products that are less sweet than standard nutrition bars and drinks, and now that national attention has
turned to reducing added sugar in the diet, a new wave of savory products, including bars, gels and meat jerky,
are being introduced.
• Packaged Facts anticipates that energy drink manufacturers will reduce their attention on short-term,
caffeinated energy boosts and instead focus on more specific energy needs related to time of day, memory and
cognitive ability, using ingredients other than caffeine.

8. Packaged Facts is a trusted provider of authoritative consumer market research. For over 50 years, our in-depth
research, expert analysis and personalized client support have helped business professionals make the right
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now cover. This experience and our time-intensive research methodology result in authoritative analysis that aids
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