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Functional, Fortified and Inherently Healthy Foods and Beverages in the U.S., 4th Edition

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  • 1.    Get more info on this report!Functional, Fortified and Inherently Healthy Foods and Beverages in the U.S., 4thEditionMay 1, 2009Functional foods—defined here as food and beverage products that offer a distincthealth advantage beyond basic nutrition by including specific ingredients whosetherapeutic benefits provide a primary market positioning—continue as a key foodindustry driver due to greatly ramped up product development and marketing. Althoughthe economic recession may prohibit some consumers from purchasing higher-pricedspecialty items, functional foods can actually save consumers money in the short termby pumping up basic food items with ingredients shoppers would otherwise have to getin the form of more expensive nutritional supplements. Additionally, whereas in the pastconsumers were primarily reactive, trying to treat health problems after they arise, todaythey are more proactive, focusing on overall “wellness” and turning grocery aisles intohunting grounds for healthful, functional foods to prevent illness and chronic conditions.This fully updated fourth-edition Packaged Facts report examines the U.S. market forfunctional foods and beverages from all angles while providing insight into keyinternational markets, identifying global trends in new product introductions bygeographic region and company and exploring developing markets poised for growth.For the U.S. market, it presents retail sales breakouts of food and beverage categorieswith a strong functional tilt, from yogurt to food/snack bars to cranberry juice; examinesmarket drivers and trends; and maps out the overall competitive situation. Trends innew product introductions are examined in depth, based on data from Datamonitor’sProduct Launch Analytics, as are trends in functional ingredients and condition-specificproduct thrusts. The report also profiles major marketers, including Groupe Danone,Kellogg Co., Kraft Foods, Nestlé SA, PepsiCo and Nature’s Path Organic.An exclusive feature of Functional, Fortified and Inherently Healthy Foods andBeverages in the U.S., 4th Edition is custom survey data from Packaged Facts’February 2009 online poll of 2,600 U.S. adults, which was conducted to measurepurchasing patterns, attitudes and demographics specific to functional foods andbeverages. Drilling down to the marketer and brand level, the analysis also relies onconsumer survey data from Experian Simmons’ Fall 2008 National Consumer Study,
  • 2. and on Information Resources, Inc. InfoScan Review data charting product sales inmass-market channels.Table of ContentsChapter 1: Executive Summary Scope and Methodology Scope of Report Exclusions Report Methodology Introduction Nutraceuticals and Functional Foods Governmental Regulation of Health Claims Types of Health Claims FDA Warns Marketers of Drug Claims Global Market Context Health Concerns on a Global Scale Key Global Players Global New Product Introduction Trends Market and Marketer Overview Total U.S. Sales Reach $30.7 Billion Figure 1-1: U.S. Retail Sales of Functional Foods and Beverages, 2006-2008 (in billions of dollars) Functional Foods Less Vulnerable to Economic Downturn Growing Health Concerns and an Aging Population Aging Boomers and Chronic Conditions Market Projections: Sales to Hit $43 Billion by 2013 Competing in Functional Foods and Beverages
  • 3. New Product Development “High Vitamins,” “Upscale” Gain as Functional Product Tags Fiber and Whole Grains Galore Probiotics and Prebiotics: Focus on Digestive Health Half of Consumers Have Purchased High-Antioxidant Products Omega-3 Fatty Acids Going Strong Soy Products Proliferate Superfruits: Juices and More Beyond the Fruit: Chocolate, Tea and More Organic Introductions Products Targeting Women Products Targeting Children The Consumer High Levels of Receptivity to Functional Foods Figure 1-2: Distribution of Consumers by Level of Agreement with Statement, “I Am Buying More Foods/Beverages Because of Their Specific Nutritional Benefits,” February 2009 (percent) Purchasing Rates by Product Characteristics Demographic TrendsChapter 2: Introduction Market Definition Defining “Functional” Exclusions Nutraceuticals and Functional Foods Governmental Regulation of Health Claims Types of Health Claims Health Claims That Meet Significant Scientific Agreement (SSA) Qualified Health Claims
  • 4. Structure/Function Claims Nutrient Content Claims FDA Warns Marketers of Drug Claims Medical Organization Logos Marketers Identify Functional Products Key Nutrients and Ingredients Vitamins Minerals Dietary Fiber Probiotics and Prebiotics Soy Protein and Soy Isoflavones Omega-3 Fatty Acids Going Strong Herbal and Botanical Ingredients Table 2-1: U.S. Functional Food Market: Key Nutrients and Ingredients, 2009Chapter 3: Global Market Context Health Concerns on a Global Scale Figure 3-1: Key External Drivers in the Global Food and Beverage Industry (percent) Nutrition and Obesity Key Global Players Table 3-1: New Functional Product Introductions from Leading Global Marketers, 2004-2008 (number of product introduction events) Global New Product Introduction Trends Table 3-2: New Functional Product Introductions: By Global Region, 2004-2008 (number of product introduction events) Figure 3-2: Share of New Functional Product Introductions: By Global Region, 2008 (percent) Regional Trends Table 3-3: Top Functional Product Categories: Asia/Pacific, 2004-2008 (number)
  • 5. Table 3-4: Top Functional Product Categories: Europe, 2004-2008 (number) Table 3-5: Top Functional Product Categories: Latin America, 2004-2008 (number) Table 3-6: Top Functional Product Categories: Canada, 2004-2008 (number) Opportunities in International Functional Food Markets Latin America Asia Russia and Eastern Europe Looking Ahead: Health Concerns Will Shape Marketing StrategiesChapter 4: Market and Marketer Overview Retail Sales and Market Share Trends Total U.S. Sales Reach $30.7 Billion Figure 4-1: U.S. Retail Sales of Functional Foods and Beverages, 2006-2008 (in billions of dollars) Supermarkets at 39% of Sales Figure 4-2: Share of U.S. Functional Food and Beverage Sales by Retail Channel, 2008 (percent) IRI-Tracked Sales of Key Functional Categories at $10 Billion Table 4-1: Mass-Market Sales in Key Functional Food and Beverage Categories, 2003-2008 (in millions of dollars) Table 4-2: IRI-Tracked Sales of Key Functional Food and Beverage Product Categories, 2007 vs. 2008 (in millions of dollars) Foods Account for 59% of IRI-Tracked Functional Product Sales Table 4-3: IRI-Tracked Sales of Key Functional Food and Beverage Categories by Classification, 2003-2008 (in millions of dollars) Figure 4-3: Share of IRI-Tracked Sales of Key Functional Food and Beverage Categories: By Classification, 2003-2008 (percent) Market Outlook Introduction: Food Spending in Times of Economic Crisis Table 4-4: Quarterly Personal Consumption Expenditures on Food vs. Overall Goods & Services, 2006-2008 (in billions of dollars)
  • 6. Table 4-5: Consumer Price Increases for Food, Food at Home and Food AwayFrom Home: May 2008 through February 2009 (percent increase)Figure 4-4: Consumer Distribution Based on Change in Financial Situation, 2008(percent of U.S. adults)Table 4-6: Attitudes Toward Healthier Foods and New Nutritional Products inRelation to Personal Financial Situation, 2008 (percent and index)Functional Foods Less Vulnerable to Economic DownturnChanges in Spending HabitsRising Food CostsFigure 4-5: Consumer Price Index for Selected Food and Beverage Categories:1999-2008Table 4-7: U.S. Functional Food and Beverage Market: Percentage Change inDollar vs. Volume Sales by Product Category, 2007 vs. 2008 (in millions ofdollars)Growing Health Concerns and an Aging PopulationObesity and HealthConsumers Seeking “Wellness”Aging Boomers and Chronic ConditionsTable 4-8: Projected U.S. Population by Age Bracket: 2007, 2010 and 2015 (inthousands)IFIC Study on Diet and Health ConnectionsPackaged Facts Survey Confirms High Consumer Interest in Functional FoodsTable 4-9: Percent of U.S. Consumers Who Have Purchased Beverage Productsin the Last 12 Months Because of Special Nutritional Benefits, 2009Table 4-10: Percent of U.S. Consumers Who Have Purchased Food or BeverageProducts in the Last 12 Months Because of Specific Nutritional Content, 2009Table 4-11: Percent of U.S. Consumers Who Have Purchased Food or BeverageProducts in the Last 12 Months Because of Their Nutritional Benefits in Relationto Specific Health Conditions or Concerns, 2009Table 4-12: Level of Agreement with Statement, “Rather ThanVitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with SpecificNutritional Benefits,” February 2009 (percent of U.S. adults)
  • 7. Figure 4-6: Level of Agreement with Statement, “I Am Buying More Foods/Beverages Because of Their Specific Nutritional Benefits,” February 2009 (percent of U.S. adults) Ramping Up Research & Development The Role of Convenience Lessons from Organic Market Table 4-13: Consumer Attitudes About Buying Organic Foods and Beverages, 2009 (percent of U.S. adults) Traditional Supplements Still Going Strong Figure 4-7: U.S. Retail Sales of Nutritional Supplements: 2003, 2007 and 2012 (in millions of dollars) Competition from Restaurants and Take-Out Market Projections: Sales to Hit $43 Billion by 2013 Table 4-14: Projected U.S. Retail Sales of Functional Foods and Beverages: 2008-2013 (in millions of dollars) Marketer Overview Competing in Functional Foods and Beverages Highlighting Naturally Health-Beneficial Ingredients in Existing Product Portfolios Extending Existing Brands with Fortified Products Acquiring Smaller Marketers Active in Functional Products Launching New Functionally Oriented Brands The Competitors Table 4-15: Selected U.S. Functional Food and Beverage Marketers, Brands and Products, 2009Chapter 5: New Product Development Trends in New Product Introductions Added Nutrients Fuel IRI New Product Pacesetters “High Vitamins,” “Upscale” Gain as Functional Product Tags Table 5-1: Number of U.S. Functional Food and Beverage New Product Introductions: By Package Tag/Claim, 2006-2008
  • 8. Table 5-2: Number of U.S. Functional Food and Beverage New ProductIntroductions: By Package Tag/Claims for Selected Product Classification, 2008Functional Drinks Category Leads in Product IntroductionsTable 5-3: Number of U.S. Functional Food and Beverage New ProductIntroductions: By Product Category, 2003-2008Functional Ingredient TrendsFiber and Whole Grains GaloreProbiotics and Prebiotics: Focus on Digestive HealthGood Bacteria Growing in PopularityProbiotic Claims Require Careful HandlingPrebiotics Encourage Friendly FloraHalf of Consumers Have Purchased High-Antioxidant ProductsSuperfruits: Juices and MoreTable 5-4: New Product Introductions with Select Superfruits, 2004-2008(number)Table 5-5: Purchasing of Selected “Superfruit” Beverage Types Within The Past12 Months, 2009 (percent of U.S. adults)Beyond the Fruit: Chocolate, Tea and MoreOmega-3 Fatty AcidsFlax Seed as Source of Omega-3Omega-3 Market Growth in QuestionDespite Questions, Omega-3 Maintains Mainstream AppealSoy Products ProliferateOrganic IntroductionsFigure 5-1: Levels of Agreement with Statement, “I Am Usually Willing to PayMore for Organic Foods, 2009 (percent of U.S. adults)Targeted Functional Product TypesCondition-Specific Products Aimed at Boomer MarketHeart Disease and Cholesterol
  • 9. Beauty Foods Fight Signs of Aging Figure 5-2: Levels of Agreement with Statement, “I Like the Idea of Foods and Beverages That Provide Beauty Benefits,” 2009 (percent of U.S. adults) Digestive Health and Immunity Performance-Enhancing Products—Not Just for Athletes Energy: Drinks and More Brain Health and Memory Products Targeting Women Products Targeting ChildrenChapter 6: Competitor Profiles Groupe Danone Company Overview Company Tightening its Focus on Health, Core Brands Table 6-1: Selected U.S. Adult Demographics for Use of Dannon Yogurt, 2008 (index) Functional Products: Activia and Beyond Table 6-2: Selected U.S. Adult Demographics for Use of Stonyfield Farm Yogurt, 2008 (index) Table 6-3: U.S. Mass-Market Sales of Select Dannon Products, 2007-2008 (in millions of dollars) Company Banks on Information, Innovation International Expansion Also Health-Focused Kellogg Co. Company Overview An Emphasis on Innovation International Presence Kashi: Extending the Brand Table 6-4: Mass-Market Sales of Selected Kellogg Functional RTE Cereals, 2007-2008 (in millions of dollars)
  • 10. Table 6-5: Selected U.S. Adult Demographics for Use of Kashi GoLean ColdCereal, 2008 (index)Table 6-6: Selected U.S. Adult Demographics for Use of Kashi Bars, 2008(index)Functional Snacks and BeveragesKraft Foods, IncCompany OverviewHealth and Wellness Are Core StrategiesTable 6-7: Selected U.S. Adult Demographics for Use of Kraft South BeachFrozen Pizza, 2008 (index)Table 6-8: Selected U.S. Adult Demographics for Use of Balance Bar, 2008(index)Breaking New Ground in Healthy FoodsNestlé SACompany OverviewHealth/Wellness—And IndulgenceNutrition in Developing NationsBars, Dinners and BeveragesTable 6-9: Selected U.S. Adult Demographics for Use of Original PowerBar, 2008(index)Table 6-10: Selected U.S. Adult Demographics for Use of Boost, 2008 (index)PepsiCo, Inc.Company OverviewNot Just a Soda CompanySoBeTable 6-11: Selected U.S. Adult Demographics for Use of SoBe FunctionalDrinks, 2008 (index)Naked JuiceTable 6-12: Mass-Market Sales of Naked Juice Functional Beverages, 2007-2008 (in millions of dollars)
  • 11. Tropicana Stumbles Due to Packaging Debacle Propel Fitness Water Quaker Oats Touting Functional Value Foods Table 6-13: Selected U.S. Adult Demographics for Use of Quaker Oats Oatmeal, 2008 (index) Nature’s Path Organic Company Overview Function and Taste Superfoods: Focus on Hemp Gluten-Free: A Serendipitous Development Environmental Responsibility and Cause Marketing Eat Well, Do Good Table 6-14: Mass-Market Sales of Selected Nature’s Path Categories/Brands, 2007-2008 (in millions of dollars)Chapter 7: The Consumer High Levels of Receptivity to Functional Foods Figure 7-1: Distribution of Consumers by Level of Agreement with Statement, “Rather Than Vitamin/ Supplement Pills, I Prefer to Buy Foods or Beverages with Specific Nutritional Benefits,” February 2009 (percent) Figure 7-2: Distribution of Consumers by Level of Agreement with Statement, “I Am Buying More Foods/Beverages Because of Their Specific Nutritional Benefits,” February 2009 (percent) Demographics to Functional Food Receptivity Table 7-1: Level of Agreement with Statement, “Rather Than Vitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with Specific Nutritional Benefits”: By Gender, 2009 (percent) Table 7-2: Level of Agreement with Statement, “I Am Buying More Foods/Beverages Because of Their Specific Nutritional Benefits”: By Gender, 2009 (percent) Table 7-3: Level of Agreement with Statement, “Rather Than Vitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with Specific Nutritional Benefits”: By Age Bracket, 2009 (percent)
  • 12. Table 7-4: Level of Agreement with Statement, “I Am Buying MoreFoods/Beverages Because of Their Specific Nutritional Benefits”: By AgeBracket, 2009 (percent)Table 7-5: Level of Agreement with Statement, “Rather ThanVitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with SpecificNutritional Benefits”: By Household Composition, 2009 (percent)Table 7-6: Level of Agreement with Statement, “I Am Buying MoreFoods/Beverages Because of Their Specific Nutritional Benefits”: By HouseholdComposition, 2009 (percent)Table 7-7: Level of Agreement with Statement, “Rather ThanVitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with SpecificNutritional Benefits”: By Highest Level of Educational Attainment, 2009 (percent)Table 7-8: Level of Agreement with Statement, “I Am Buying MoreFoods/Beverages Because of Their Specific Nutritional Benefits”: By HighestLevel of Educational Attainment, 2009 (percent)Table 7-9: Level of Agreement with Statement, “Rather ThanVitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with SpecificNutritional Benefits”: By Household Income Bracket, 2009 (percent)Table 7-10: Level of Agreement with Statement, “I Am Buying MoreFoods/Beverages Because of Their Specific Nutritional Benefits”: By HouseholdIncome Bracket, 2009 (percent)Table 7-11: Level of Agreement with Statement, “Rather ThanVitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with SpecificNutritional Benefits”: By Race/Ethnicity, 2009 (percent)Table 7-12: Level of Agreement with Statement, “I Am Buying MoreFoods/Beverages Because of Their Specific Nutritional Benefits”: ByRace/Ethnicity, 2009 (percent)Table 7-13: Level of Agreement with Statement, “Rather ThanVitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with SpecificNutritional Benefits”: By Locale of Residence, 2009 (percent)Table 7-14: Level of Agreement with Statement, “I Am Buying MoreFoods/Beverages Because of Their Specific Nutritional Benefits”: By Locale ofResidence, 2009 (percent)Table 7-15: Level of Agreement with Statement, “Rather ThanVitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with SpecificNutritional Benefits”: By Region of Residence, 2009 (percent)
  • 13. Table 7-16: Level of Agreement with Statement, “I Am Buying MoreFoods/Beverages Because of Their Specific Nutritional Benefits”: By Region ofResidence, 2009 (percent)Purchasing Rates by Product CharacteristicsTable 7-17: Percent of Consumers Who Have Purchased Food or BeverageProducts in the Last 12 Months Because of Their Nutritional Benefits in Relationto Specific Health Conditions or Concerns, 2009Table 7-18: Percent of Consumers Who Have Purchased Food or BeverageProducts in the Last 12 Months Because of Specific Nutritional Content, 2009Table 7-19: Percent of Consumers Who Have Purchased Beverage Products inthe Last 12 Months Because of Their Special Nutritional Benefits, 2009Women Are the Prime ConsumersTable 7-20: Percent of Consumers Who Have Purchased Food or BeverageProducts in the Last 12 Months Because of Their Nutritional Benefits in Relationto Specific Health Conditions or Concerns: By Gender, 2009Table 7-21: Percent of Consumers Who Have Purchased Food or BeverageProducts in the Last 12 Months Because of Specific Nutritional Content: ByGender, 2009Table 7-22: Percent of Consumers Who Have Purchased Beverage Products inthe Last 12 Months Because of Their Special Nutritional Benefits: By Gender,2009Varied Patterns by AgeTable 7-23: Percent of Consumers Who Have Purchased Food or BeverageProducts in the Last 12 Months Because of Their Nutritional Benefits in Relationto Specific Health Conditions or Concerns: By Age Bracket, 2009Table 7-24: Percent of Consumers Who Have Purchased Food or BeverageProducts in the Last 12 Months Because of Specific Nutritional Content: By AgeBracket, 2009Table 7-25: Percent of Consumers Who Have Purchased Beverage Products inthe Last 12 Months Because of Their Special Nutritional Benefits: By AgeBracket, 2009Patterns by Household Composition
  • 14. Table 7-26: Percent of Consumers Who Have Purchased Food or BeverageProducts in the Last 12 Months Because of Their Nutritional Benefits in Relationto Specific Health Conditions or Concerns: By Household Composition, 2009Table 7-27: Percent of Consumers Who Have Purchased Food or BeverageProducts in the Last 12 Months Because of Specific Nutritional Content: ByHousehold Composition, 2009Table 7-28: Percent of Consumers Who Have Purchased Beverage Products inthe Last 12 Months Because of Their Special Nutritional Benefits: By HouseholdComposition, 2009Strong Correlation with Higher Education and IncomeTable 7-29: Percent of Consumers Who Have Purchased Food or BeverageProducts in the Last 12 Months Because of Their Nutritional Benefits in Relationto Specific Health Conditions or Concerns: By Highest Level of EducationalAttainment, 2009Table 7-30: Percent of Consumers Who Have Purchased Food or BeverageProducts in the Last 12 Months Because of Specific Nutritional Content: ByHighest Level of Educational Attainment, 2009Table 7-31: Percent of Consumers Who Have Purchased Beverage Products inthe Last 12 Months Because of Their Special Nutritional Benefits: By HighestLevel of Educational Attainment, 2009Table 7-32: Percent of Consumers Who Have Purchased Food or BeverageProducts in the Last 12 Months Because of Their Nutritional Benefits in Relationto Specific Health Conditions or Concerns: By Household Income Bracket, 2009Table 7-33: Percent of Consumers Who Have Purchased Food or BeverageProducts in the Last 12 Months Because of Specific Nutritional Content: ByHousehold Income Bracket, 2009Table 7-34: Percent of Consumers Who Have Purchased Beverage Products inthe Last 12 Months Because of Their Special Nutritional Benefits: By HouseholdIncome Bracket, 2009African-Americans and Asian-Americans as Prime ConsumersTable 7-35: Percent of Consumers Who Have Purchased Food or BeverageProducts in the Last 12 Months Because of Their Nutritional Benefits in Relationto Specific Health Conditions or Concerns: White Non-Hispanics, 2009Table 7-36: Percent of Consumers Who Have Purchased Food or BeverageProducts in the Last 12 Months Because of Specific Nutritional Content: ByRace/Ethnicity, 2009
  • 15. Table 7-37: Percent of Consumers Who Have Purchased Beverage Products in the Last 12 Months Because of Their Special Nutritional Benefits: By Race/Ethnicity, 2009 Urban/Suburban and Coastal Skews Table 7-38: Percent of Consumers Who Have Purchased Food or Beverage Products in the Last 12 Months Because of Their Nutritional Benefits in Relation to Specific Health Conditions or Concerns: By Locale of Residence, 2009 Table 7-39: Percent of Consumers Who Have Purchased Food or Beverage Products in the Last 12 Months Because of Specific Nutritional Content: By Locale of Residence, 2009 Table 7-40: Percent of Consumers Who Have Purchased Beverage Products in the Last 12 Months Because of Their Special Nutritional Benefits: By Locale of Residence, 2009 Table 7-41: Percent of Consumers Who Have Purchased Food or Beverage Products in the Last 12 Months Because of Their Nutritional Benefits in Relation to Specific Health Conditions or Concerns: By Region of Residence, 2009 Table 7-42: Percent of Consumers Who Have Purchased Food or Beverage Products in the Last 12 Months Because of Specific Nutritional Content: By Region of Residence, 2009 Table 7-43: Percent of Consumers Who Have Purchased Beverage Products in the Last 12 Months Because of Their Special Nutritional Benefits: By Region of Residence, 2009Available immediately for Online Download athttp://www.marketresearch.com/product/display.asp?productid=1939944   US: 800.298.5699UK +44.207.256.3920Intl: +1.240.747.3093Fax: 240.747.3004