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Omega 3, -6 and -9 fatty acids trends in the worldwide food and beverage markets, 2nd edition

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  • 1. Get more info on this report!Omega-3, -6 and -9 Fatty Acids: Trends in the Worldwide Food andBeverage Markets, 2nd EditionJanuary 1, 2009Omega-enriched foods and beverages have entered an explosive growth phase in theglobal retail market. Since 2003, thousands of foods and beverages enriched withomega fatty acids have been introduced worldwide. Marketers really did not start toutingthe omega content of enhanced foods until late 2004, after the Food and DrugAdministration (FDA) moved to allow a number of nutrient content claims for thesepowerhouse fatty acids. Nearly 1,300 new omega-3-enriched products were introducedin Europe and North America in 2007. In 2008, the omega-enriched food sector isoperating under what is termed a “healthy halo,” defined by three primary parameters—public awareness of omega fatty acids, proven scientific benefit and a willingness by theconsumer to purchase these products. The global market for foods and beveragesenhanced with omega-3, omega-6 and omega-9, as defined in this report, has beenestimated by Packaged Facts at $4.6 billion the end of 2007.A number of drivers are propelling this market in addition to an avid consumer base.These include innovative formulations and technology advancements that areexpanding the products amenable to enhancement with omegas. Also, methods ofstabilizing omega-containing products to inhibit oxidation (which causes the fishy smellassociated with fish-oil-based omega-3) have resulted in improved taste as well asextended shelf life. In the U.S., the FDA in 2007 implemented guidelines for GoodManufacturing Practices (GMP) for nutraceuticals companies, resulting in greateroversight of and confidence in the companies producing omega-enhanced products.Omega Fatty Acids: Trends in the Worldwide Food and Beverage Markets, 2nd Editioncontains comprehensive data on the global market for foods and beverages enhancedwith omega-3, omega-6 and omega-9 fatty acids. Historical retail sales data (2003-2007) and forecast data (2008-2012) are provided for the global and selectedinternational markets (U.S., Europe, Asia/Australia). The report discusses key trendsaffecting the marketplace, trends driving growth and consumer demographics. Thereport profiles major marketers of omega-enhanced products and suppliers of omegafatty acids as well as innovative companies in both of these sectors.Read an excerpt from this report below.
  • 2. Report MethodologyThe information in this report was obtained from both primary and secondary research.Primary research entailed in-depth, on-site examinations of supermarkets, drug stores,mass merchandisers, convenience stores, health/natural foods stores, specialty stores,and club stores. Company, distributor, and retailer interviews were conducted to obtaininformation on new product and packaging trends, marketing programs, distributionmethods, and technological breakthroughs. Secondary research entailed data gatheringfrom relevant sources. Included were consumer and industry publications, newspapers,government reports, financial reports, company literature, and corporate annual reports.Overall market data is for the retail industry. No foodservice sales are included.What Is Provided in this ReportOmega Fatty Acids: Trends in the Worldwide Food and Beverage Markets, 2nd Editionoffers market and trend analysis to allow succinct assessment of this booming sector.The report balances insight into qualitative aspects of this market with comprehensivequantitative analysis.The report addresses all retail foods and beverages marketed as containing any or all ofthe three omega fatty acids; however, most of the discussion, particularly market size,focuses on foods and beverages especially formulated to contain omega-3 fatty acids.Foods that inherently contain omega fatty acids such as canola oil, cranberry seeds,flaxseed, mustard seeds, salmon, walnuts, etc., all of which contain omega-3, are notthe focus of this report. This report also includes a lengthy qualitative discussion of thevarious omega ingredients available to food formulators, including profiles on thefollowing suppliers of these ingredients: Arista Industries, Inc. Croda Health Care Denomega Nutritional Oils AS DSM Nutritional Products Epax AS Frutarom USA Inc. Hormel Specialty Products Martek Biosciences Ocean Nutrition Canada Ltd. Omega Protein Corp. Pizzey’s Milling USA Zymes LLCBenefits of this ReportThis report provides a valuable, timely and comprehensive exploration of the omega-enhanced food and beverage market aimed at companies already participating in this
  • 3. sector, companies that are considering entering this market or companies andorganizations interested in activities and trends in this sector. The current market isassessed in detail, and markets and trends are projected through 2012.This report will assist: Marketing managers in identifying market opportunities and developing targeted promotion plans for omega-enhanced food and beverage products Research and development professionals in being up-to-date on competitor initiatives Advertising agencies working with clients in the banking and retail industries to understand the product buyer as an aid in developing successful advertising programs Business development executives to understand the dynamics of the market and identify possible partnerships Information and research center librarians in providing market researchers, brand and product managers and other colleagues with vital information necessary to their projects and decision-makingAdditional InformationMarket Insights: A Selection From The ReportMarket-Dominant Grain-Based Foods Loses Share to New Categories in U.S.MarketUsing sales data, new product roll-out information, and product availability, PackagedFacts estimates that grain-based foods (bars, breads, cereals, etc.) held 74% of theomega-3-enhanced food and beverage market at the end of 2007 (fish are excludedfrom this tally). This compares to an 86% share in 2006. Beverages were in secondplace with 12%, following by dairy—led by yogurt-based products—with 7%. Beveragesheld less than 1% of the market in 2006. The categories of omega-3-enriched eggs andoils/butters/margarines/cooking sprays/spreads were tied with about 3% of the marketeach.The number of milk, nondairy milk and yogurt beverage product introductions surged in2007, from 76 SKUs in 2006 to 120 SKUs in 2007. Yogurt introductions also leapt, from20 SKUs in 2006 to 68 SKUs in 2007. Snack bars, which have been a market mainstaysince 2003, increased from 57 SKUs introduced in 2006 to 72 introduced in 2007.Packaged Facts projects that by 2012, percent share will shift with beverages, dairy andoils/butters/margarines/cooking sprays/spreads continuing to gain market share.
  • 4. Two Different Consumers Are Primarily TargetedA majority of Americans have heard of most types of fats and fatty acids, with saturatedfats topping the list at 91% awareness. More than three-fourths have heard of fish oils,polyunsaturated fats, trans fats, animal fats, and vegetable oils, while more than halfhave heard of tropical oils, partially hydrogenated oils, hydrogenated oils, omega-3 fattyacids, and monounsaturated fats. Other data of note: Awareness of fish oils is significantly higher than that of omega-3 fatty acids. Consumers making changes to consumption of fish oil or omega-3 fatty acids are about four times as likely to make an effort to consume more, rather than less, of these oils. Omega-3 fatty acids remain the only type of fat more consumers rate healthy than unhealthy. Data shows that consumers who are well informed about omega-3 are substantially more likely to purchase omega-3 supplements and omega-3- enriched foods.TABLE OF CONTENTSChapter 1: Executive Summary Scope and Methodology Report Methodology Products and Ingredients How Fatty Acids Vary in Their Impact on Health Which Fats are Essential and Why The Essential Fatty Acids Products Ingredients: Omega-3s Used to Enhance Foods and Beverages Alpha Linolenic Acid DHA and EPA The Market $4.6 Billion in Global Retail Sales in 2007 for Omega-3-Enhanced Food and Beverage Products Table 1-1: Global Retail Sales of Omega-3-Enhanced Food and Beverage Products, 2003-2007 (in millions of dollars and percent change) Global Retail Sales Are Projected to Approach $8.2 Billion by 2012 Table 1-2: Global Sales of Omega-3-Enhanced Food and Beverage Products, 2003-2012 (in millions of dollars) Number of DHA/EPA-Enhanced Foods Overtake ALA-Enhanced Foods in the U.S. Market in 2008 Table 1-3: Projected U.S. Retail Sales of Omega-Enhanced Products, by ALA, DHA, and EPA, 2007-2012 (in millions of dollars and percent change)
  • 5. Market-Dominant Grain-Based Foods Loses Share to New Categories in U.S. Market The Retail Market Where Consumers Are Buying Omega-Enhanced Foods Table 1-4: Omega Foods and Beverages: Share of Dollar Sales by Outlet, 2007 (percent share of dollar sales) The Consumer: Awareness of the Need for Omega-3 is Very High Two Different Consumers Are Primarily Targeted New Products, Trends and Opportunities Beverages and Snack Bars Lead in Total Global SKU Introductions from 2003 and 2008 Table 1-5: Top-Five New SKUs Introduced Carrying an Omega Content Reference, Excluding Fish, 2003-November 30, 2008 (percent) More Categories of Food and Beverages Each Year That Contain Omegas Research Into New Sources of Omegas Global Regulatory Situation Relating to Omega-Enhanced Food and Beverages Qualified Health Claim for Foods and Beverages Containing DHA and EPAChapter 2: Products and Ingredients Key Points Overview A Primer on Fatty Acids How Fatty Acids Vary in Their Impact on Health Which Fats are Essential and Why The Essential Fatty Acids Omega-3, Omega-6 and Omega-9 Fatty Acids and Their Sources Linolenic Acid (Omega-3) Linoleic Acid (Omega-6) Oleic Acid (Omega-9) Studies Support Health Benefits of Omegas in Heart Health, Cognition and ADHD Benefits to Heart Health Cognitive Benefits in Infants and the Elderly Omega-3 and Omega-6 Benefit Children Suffering from Attention Deficit Hyperactivity Disorder Omega-3 Benefits Psychiatric Conditions Essential Fatty Acid Deficiency Very Common Research on EFAs Suggests Many Benefits Table 2-1: Health Benefits Reported from Balanced Consumption of Omega-3, Omega-6 and Omega-9 Fatty Acids Benefits of Fish Oil Outweigh Contamination Risks From Supplements to Foods and Beverages American Dietetic Association Advises Food Better than Supplements for Intake of Omega-3 Fortifying Foods and Beverages with Omega Fatty Acids Advantageous over Supplements 2008—the Ascension of the Omegas
  • 6. The “Healthy Halo” Surrounds OmegasProducts Products Excluded From This ReportIngredients Omega-3s Used to Enhance Foods and Beverages Alpha Linolenic Acid DHA and EPA Table 2-2: Omega-3 Fatty Acids: Nomenclature, Structure and Food Source Omega-6s Used to Enhance Food and Beverages Omega-9s Used to Enhance Food and Beverages Formulations of Omega-3 Used in Foods and Beverages The Use of Preservatives Sources of Omega-3 Used as Ingredients in Enhanced Foods and Beverages Fish Oil Algal Oil Plant Oils Choosing the Best Oil Fish versus Algae versus Flax The Basics on Flaxseed Walnuts A Good Source of ALA New Seed Oil Sources of ALA Do Marine and Plant Sources of Omega-3 Oils Vary in Functionality? Fortification Capabilities and Formulation Strategies Omega Fortification in Organic Foods and Beverages Omega-3 SuppliersChapter 3: The Market Key Points Market Definition Accelerating Roll-out of Omega-enriched Foods and Beverages Steady Annual Increase in the Number of Global Omega-Enhanced Products from 2003 to 2008 Table 3-1: Global Omega-Enhanced* Food and Beverage Product Introductions, 2003-2008E (percent change) Table 3-2: Global Food and Beverage Product Introductions with High Omega-3 Claims*, 2003-2008E (percent change) $4.6 Billion in Global Retail Sales in 2007 for Omega-3-Enhanced Food and Beverage Products Table 3-3: Global Retail Sales of Omega-3-Enhanced Food and Beverage Products, 2003-2007 (in millions of dollars and percent change) Table 3-4: Global Omega-Enhanced Food and Beverage Product Introductions, Excluding Fish, by Geographic Region, 2003-2007 Global Retail Sales Are Projected to Approach $8.2 Billion by 2012 Table 3-5: Global Sales of Omega-3-Enhanced Food and Beverage Products, 2003-2012 (in millions of dollars and percent) Table 3-6: Projected Global Retail Sales of Omega-3-Enhanced Food and Beverage Products, 2007-2012 (in millions of dollars and percent change)
  • 7. Global Market for Omega-3-Enhanced Beverages Shows Steady Growth U.S. Omega-3-Enhanced Product Introductions Increase 444% from 2003 to 2007 and Escalates in 2008 Table 3-7: U.S. Omega-3-Enhanced Food and Beverage Product Introductions*, 2003-2008E (percent change) $2.7 Billion in U.S. Sales in 2007 Table 3-8: U.S. Retail Sales of Omega-3-Enhanced Food and Beverage Products, 2003-2007 (in millions of dollars and percent change) U.S. Retail Sales Are Projected to Approach $5.7 Billion by 2012 Table 3-9: U.S. Sales of Omega-3-Enhanced Products, 2003-2012 (in millions of dollars and percent) Table 3-10: Projected U.S. Retail Sales of Omega-3-Enhanced Products, 2007- 2012 (in millions of dollars and percent change) Figure 3-1: Projected U.S. Retail Sales of Omega-3-Enhanced Products, 2007- 2012 (in millions of dollars) Table 3-11: Projected U.S. Retail Sales of Omega-Enhanced Products, by ALA, DHA, and EPA, 2007-2012 (in millions of dollars and percent change) Figure 3-2: Projected U.S. Retail Sales of Omega-3-Enhanced Products, Percent Share of ALA vs. DHA/EPA, 2007-2012 European Omega-Enhanced Product Introductions Increase from 2003 to 2007 but Slow in 2008 Table 3-12: European Omega-Enhanced Food and Beverage Product Introductions*, 2003-2008E (percent change) European Market for Omega-Enhanced Foods and Beverages Approaches $1.4 Billion in 2007 Table 3-13: European Retail Sales of Omega-3-Enhanced Products, 2003-2007 (in millions of dollars and percent change) Asian and Australian Market for Omega-3-Enhanced Foods and Beverages Approach European Market in Sales Table 3-14: Asian and Australian Retail Sales of Omega-3-Enhanced Food and Beverage Products, 2003-2007 (in millions of dollars and percent change) Few Blockbuster Products Market-Dominant Grain-Based Foods Loses Share to New Categories in U.S. Market Figure 3-3: Omega-3-Enhanced Foods and Beverages: Share of Dollar Sales by Product Category, Excluding Fish, 2007 (percent) Global Sales of Essential Fatty Acids Ingredients Table 3-15: Global Retail Sales of EFAs, 2003-2007 (in millions of dollars at the manufacturers level and percent change) Table 3-16: U.S. Retail Sales of EFAs, 2003-2007 (in millions of dollars at the manufacturers level and percent change) Sales of Supplements (Nutraceuticals) Fish Oil/Omega-3 Supplements Posts Biggest Usage GainsChapter 4: Retail and Distribution Key Points Different Types of Retail Outlets
  • 8. Shopping Options for Omega-Enhanced Foods and Beverages Table 4-1: Stores Frequented for Food Shopping in Past 30 Days (percent) Where Consumers Are Buying Omega-Enhanced Foods Table 4-2: Omega Foods and Beverages: Share of Dollar Sales by Outlet, 2007(percent share) Figure 4-1: Omega-3 Foods and Beverages: Share of Dollar Sales by Outlet, 2007 (percent) Different Formats Attract Consumers for Their Varied Needs Number of Stock-keeping Units by Retail Channel Omegas in the Mail Options for Retail Distribution Direct Delivery Advantages Advantages of Warehouse Delivery Smaller Marketers Work Through Brokers Introducing Functional Foods to the MarketplaceChapter 5: The Consumer Key Points Consumer Awareness of the Need for Omega-3 is Very High Table 5-1: Ingredients on Product Nutrition Panels Sought by Shoppers, 2005- 2008 (percent of Shoppers Who Consider Information About an Ingredient or Specified Content “Very Important”) Table 5-2: Ingredients on Package Claims Sought by Shoppers (percent of Shoppers Who Look for Claim) Not Only Boomers Interested in Improving Their Eating Habits Reasons for Increasing Consumer Interest in Fortified Foods Two Different Consumers Are Primarily Targeted Table 5-3: Awareness and Consumption of Omega-3s for Certain Health Benefits, 2005 (percent) Consumers Aware About Fat Types and Forms Consumers’ Perceptions of Fats and Fatty Acids Figure 5-1: Consumers’ Perceptions of Omega-3 Fatty Acids and Fish Oils, 2005 (percent) Consumption Trends Figure 5-2: Consumption Trends for Omega-3 Fatty Acids and Fish Oils, 2005 (percent) What Consumers Want Table 5-4: Nutrients and Substances Americans Want More of in Their Diets, 2006 (percent)Chapter 6: New Products, Trends and Opportunities Key Points Global Organization for EPA and DHA Omega-3 Forms to Meet Opportunities and Challenges of Omega-3 Market GRAS Status Awarded to Two Conjugated Linoleic Acid Suppliers Concerns about Continued Sourcing from Fish
  • 9. Beverages and Snack Bars Lead in Total Global SKU Introductions from 2003 and 2008 Table 6-1: Top-Five New SKUs Introduced Carrying an Omega Content Reference, Excluding Fish, 2003-November 30, 2008 (percent) Figure 6-1: Top-Five New SKUs Introduced Carrying an Omega Content Reference, Excluding Fish, 2003-November 30, 2008 Table 6-2: Total SKUs Introduced to the Global Marketplace with a High Omega- 3, High Omega-6 or High Omega Tag/Claim, 2003-November 30, 2008 More Categories of Food and Beverages Each Year That Contain OmegasDevelopment Trends The Trend Toward DHA and EPA Revamping the Snack Bar Market Potential Untapped Consumers New Achievements in Formulation Expand Product Horizon Selected New Products Introduced in 2007 and 2008 Biomedical Laboratories Offers Cereal Bars to Help Kids Concentrate Danone Introduces Cardivia Omega 3 Plus Yogurt in Canada Hain Celestial Group Introduces Omega-3 Organic Pretz-Os and Baked Pita Chips Kemps and Ocean Nutrition Canada Introduces DHA/EPA-Enhanced Milk Kirin’s DHA-Enhanced Power Water For Schoolchildren Omega Farms Introduces Omega-3-Enhanced Chocolate Milk Premier Foods Launches Omega-3-Enriched Baked Beans to the U.K. Market J.M. Smucker Introduces Canola Oil with Omega-3 DHA Sorrento Introduces Omega-3 String Cheese Sun Gold Foods Introduces Omega-3 Sunflower Spread Tropicana Introduces Orange Juice with Omega-3 EPA and DHA Unilver Introduces DHA/EPA/ALA Enhanced Margarine and Omega3/Omega-6- Enhanced Margarine in Austria Selected Innovative New Omega Products Introduced in 2008 Table 6-3: Selected New Innovative Products with Omega Claims/Tags, January 1 to November 30, 2008 Discontinued Products and Formulations New Algal Oil Competitor Research Into New Sources of Omegas Chia to Become the “Pet” Source of Omegas? Omega-Enriched Beef and ChickenChapter 7: Regulatory Environment Key Points Global Regulatory Situation Relating to Omega-Enhanced Food and Beverages The U.S. Regulatory Situation Relating to Omega-Enhanced Foods and Beverages The U.S. Dietary Supplement Health and Education Act of 1994 Labeling Overview Labeling Nomenclature Provide the Facts: Nutritional Information Requirements
  • 10. Trans Fats Content Must Be Stated Products that Are Exempt Adding Beneficial Nutrients to Conventional Foods Table 7-1: Permitted Nutrient Content Claims for Omega-3s in the United States A Variety of Possible Claims Types of Health Claims Health Claims that Meet Significant Scientific Agreement Qualified Health Claims Qualified Health Claim for Foods and Beverages Containing DHA and EPA Structure/Function Claims Table 7-2: Structure/Function Claims on Selected Omega-Fortified Foods and Beverages Figure 7-1: Stonyfield YoBaby Plus Fruit & Cereal Yogurt with DHA Figure 7-2: Uncle Sam Toasted Whole-Wheat Flakes & Flaxseed with Real Mixed Berries Table 7-3: Nutrient Content Claims on Selected Omega-Fortified Foods and Beverages Figure 7-3: Farmland Dairies Special Request 1% Plus with Omega-3 Milk Figure 7-4: Promise Buttery Spread Allergen Issues Dietary Recommendations for Consuming Omega-3s Efforts to Establish Recommended Daily Allowances for EPA/DHA Standardizing the Percentage of DHA and EPA in Fish OilChapter 8: The Suppliers Key Points Leading Suppliers of Omega-3 Table 8-1: Leading Suppliers of Omega-3, by Sales Collaborating with Suppliers to Shorten Development Time and Improve Product Selected Suppliers of ALA Selected Suppliers of DHA/EPA Leading Suppliers of Marine-sourced Omega-3 Fish Oils Leading Suppliers of Algal-sourced Omega-3 Fish Oils Leading Suppliers of Plant-sourced Omega-3 Oils Omega-3 Ingredient OptionsCompetitive Profile: Arista Industries, Inc., Wilton, CT Company Overview Omega Oil ProductsCompetitive Profile: Croda Health Care, Yorkshire, U.K. Company Overview Financial Information Technology Highlights New Omega ProductsCompetitive Profile: Denomega Nutritional Oils AS, Fredrikstad, Norway Company Overview Denomega Offers Omega-360 Co-branding Arrangement with MarketersCompetitive Profile: DSM Nutritional Products, Heerlen, The Netherlands
  • 11. Company Overview New Omega-Enhanced Products Company Back in Full Production Following Fire in 2006 Educating Educators and Curious ConsumersCompetitive Profile: Epax AS, Alesund, Norway Company Overview Omega-3 ProductsCompetitive Profile: Frutarom USA Inc., North Bergen, New Jersey Company Overview Financial Information Business Strategy Omega ProductsCompetitive Profile: Hormel Specialty Products, Austin, MN Company Overview Omega ProductsCompetitive Profile: Martek Biosciences, Columbia, MD Company Overview Financial Information Beyond Infant Formula Selected for NIH Study A Bump in the Road Cutting Exclusivity Deals with Major MarketersCompetitive Profile: Ocean Nutrition Canada Ltd., Dartmouth, Nova Scotia,Canada Company Overview Omega Products Unique Double Shell Protection Debuts in 2006 Business StrategyCompetitive Profile: Omega Protein Corp., Houston, TX Company Overview Omega Products Table 8-2: Application Chart for OmegaPure Menhaden-Derived Fish Oil (percent)Competitive Profile: Pizzey’s Milling USA, Gurnee, IL Company Overview Technology Highlights Omega ProductsCompetitive Profile: Zymes LLC, Hasbrouck Heights, NJ Company Overview Technology AdvancementsChapter 9: The Marketers Key Points Marketers Big and Small Product Development Timelines Increase The Five Leading Marketers of Nonfish Omega Foods and Beverages in 2007 and 2008
  • 12. Table 9-1: Global Omega-Enhanced Foods and Beverages: Five Leading Marketers and Brands, 2008Competitive Situation IRI Data Is Not Available for Most MarketersCompetitive Profile: Barilla G. & R. Fratelli S.p.A., Parma, Italy Company OverviewCompetitive Profile: Clif Bar Inc., Berkeley, CA Company Overview Omega ProductsCompetitive Profile: Eggland’s Best, Inc., King of Prussia, PA Company Overview What Makes the Eggs so Special?Competitive Profile: GFA Brands, Inc., Cresskill, NJ Company Overview Omega ProductsCompetitive Profile: General Mills, Inc., Minneapolis, MN Company Overview Financial Information Omega ProductsCompetitor Profile: The Hain Celestial Group, Inc., Melville, NY Company Overview Omega ProductsCompetitive Profile: Kellogg Co., Battle Creek, MI Company Overview First Omega Product from Agreement with Martek IntroducedCompetitive Profile: Omega Farms, Hayward, CA Company Overview Complete Product Line Proprietary Marine Source of Omega-3sCompetitive Profile: Parmalat S.p.A., Parma, Italy Company Overview Business Strategy Omega ProductsCompetitive Profile: Stonyfield Farm, Londonderry, NH Company Overview Omega Products Business StrategyCompetitive Profile: Unilever, London, U.K. Company Overview Omega ProductsAvailable immediately for Online Download athttp://www.marketresearch.com/product/display.asp?productid=1903782
  • 13. US: 800.298.5699UK +44.207.256.3920Intl: +1.240.747.3093Fax: 240.747.3004