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Trends, Opportunities And Challenges Functional Foods   Ranjan Sharma
 

Trends, Opportunities And Challenges Functional Foods Ranjan Sharma

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    Trends, Opportunities And Challenges Functional Foods   Ranjan Sharma Trends, Opportunities And Challenges Functional Foods Ranjan Sharma Presentation Transcript

    • TRENDS, OPPORTUNITIES AND CHALLENGES FOR FUNCTIONAL FOODS Ranjan Sharma PhD MBA Nutraceuticals and Functional Foods Symposium Queensland, Australia,18 June 2010
    • FUNCTIONAL FOODS – A DEFINITION  No universally accepted definition  Foods and beverages that contain either naturally or via processing or fortification, sufficient amounts of physiologically-functional components and have potential health benefits
    • FUNCTIONAL FOODS & NUTRACEUTICALS
    • FUNCTIONAL FOOD EXAMPLES - OMEGA-3 Chocolate bars – 2006 Mini meal - Orange Juice -2007 2006 Butter 2007 Milk drink - 2006
    • FUNCTIONAL FOOD EXAMPLES - OMEGA -3 - AUSTRALIA
    • FUNCTIONAL FOOD EXAMPLES - PROBIOTICS
    • FUNCTIONAL FOOD EXAMPLES - PROBIOTICS - AUSTRALIA
    • FUNCTIONAL FOOD EXAMPLES - HIGH FIBRE AND WHOLE/MULTIGRAIN
    • FUNCTIONAL FOOD EXAMPLES - HIGH FIBRE - AUSTRALIA
    • FUNCTIONAL FOOD EXAMPLES - FUNCTIONAL WATERS
    • FUNCTIONAL FOOD EXAMPLES - CALORIE BURNING With EGCG Enviga – calorie burning drink with tea catechins (Coca Cola) Celsius - guarana seed, green (US launch Nov 2006) tea leaf and ginger root
    • FUNCTIONAL FOOD EXAMPLES - SUPERFRUITS, SUPERFOODS, ANTIOXIDANTS
    • FUNCTIONAL FOOD EXAMPLES - CHOLESTEROL ABSORPTION
    • FUNCTIONAL FOOD EXAMPLES - BEAUTY FOODS - COSMECEUTICALS
    • FUNCTIONAL FOOD EXAMPLES - ENERGY DRINKS
    • CONCENTRATED FUNCTIONAL FOODS (ENERGY SHOTS)
    • GLOBAL HEALTH & WELLNESS MARKET, 2008  Global health and wellness market  US$ 570 billion  Global functional foods market  US$ 152 billion  Australian functional foods market  A$ 2.7 billion Euromonitor, 2009
    • US FUNCTIONAL FOODS AND DRINKS US Functional foods & drinks 10000 9000 8000 7000 Million $ 6000 5000 2004 4000 2009 3000 2000 1000 0 Bone Heart Gut Energy Other health health health http://www.foodprocessing.com/articles/2006/250.html
    • FUNCTIONAL FOODS IN JAPAN Functional Foods in Japan, 2007 - $16.4 b Teeth health 15% Weight management 14% Digestive health Blood 59% sugar 4% Cholesterol 4% Blood pressure Bone health 2% 2% Source: Market NZ
    • FUNCTIONAL FOODS - AUSTRALIA Functional Foods Sales - Australia 3 2.5 2 Sales ($) 1.5 1 0.5 0 2003 2004 2005 2006 2007 Euromonitor, 2009
    • FUNCTIONAL FOODS - AUSTRALIA Functional Foods - Australia, 2007 – $ 2.7 b Digestive health 6% Digestive health Others 37% General health and wellbeing General health and Others wellbeing 57% Euromonitor, 2009
    • DIGESTIVE HEALTH - AUSTRALIA Source: Datamonitor, 2009
    • OPPORTUNITIES AND CHALLENGES Opportunities and Drivers Challenges
    • OPPORTUNITIES AND CHALLENGES Opportunities and Drivers Challenges
    • OPPORTUNITIES AND DRIVERS FOR FUNCTIONAL FOOD DEVELOPMENT  Population demographics  Rising obesity - the health condition/disease of the millennium  Increased incidences of non-communicable, chronic diseases  Growing proportion of unhealthy kids  Consumer awareness of food-health relationships
    • POPULATION TRENDS - AUSTRALIA Australia - population by age groups (2005) 14000000 12000000 10000000 0-9 years 8000000 10-19 years 6000000 20-64 years 2005 4000000 65+ years 2000000 0 Australia - population by age groups (2050) 14000000 Ageing population 12000000 10000000 0-9 years 8000000 10-19 years 2050 6000000 20-64 years 4000000 65+ years 2000000 0 US Census Bureau
    • DRIVERS FOR CONSUMER FOOD PRODUCT DEVELOPMENT  Population demographics  Rising obesity - the health condition/disease of the millennium  Increased incidences of non-communicable, chronic diseases  Unhealthy kids  Consumer awareness of food-health relationships
    • ADULT OVERWEIGHT PROJECTION Country 2005 (%) 2015 (%) Australia Females 62.7 70 Males 72.1 79 Canada Females 57.1 61.9 Males 65.1 68.6 New Zealand Females 68.2 79.2 Males 68.7 78.5 United Kingdom Females 61.9 65.7 Males 65.7 69.8 United States Females 72.6 80.2 Males 75.6 84.5 WHO 2007
    • ADULT OBESE PROJECTION Country 2005 (%) 2015 (%) Australia Females 24.9 33.5 Males 23.8 33.3 Canada Females 23.2 28.2 Males 23.7 27.4 New Zealand Females 31.5 48.1 Males 23 35.2 United Kingdom Females 24.2 28.3 Males 21.6 25.8 United States Females 41.8 54.3 Males 36.5 51.7 WHO 2007
    • OBESITY A MAJOR FACTOR IN LIFESTYLE DISEASES  Diabetes  80%  Cancer  40% of uterine cancer Obesity   25% of kidney cancer 10% of breast  10% of colon cancer  Heart health  21% of heart diseases
    • COST OF OVERWEIGHT AND OBESITY IN AUSTRALIA Total cost - 2005 - $21billion 16 14 12 10 Cost, $ 8 6 4 2 0 Overwight Obese  Analysis of 5-year follow-up data from the Australian Diabetes, Obesity and Lifestyle study, collected in 2004–2005; 6140 participants ≥ 25 years Colagiuri et al (2010) MJA ; 192 (5): 260-264
    • DRIVERS FOR CONSUMER FOOD PRODUCT DEVELOPMENT  Population demographics  Rising obesity - the health condition/disease of the millennium  Increased incidences of non-communicable, chronic diseases  Unhealthy kids  Consumer awareness of food-health relationships
    • DISEASES CAUSING GLOBAL DEATHS global deaths by cause (millions) Diabetes Chronic respiratory diseases Cancer Cardio vascular diseases Malaria Tuberculosis HIV/AIDS 0 2 4 6 8 10 12 14 16 18 20 Deaths (millions) WHO 2005 Total deaths – 58 million
    • DISEASES CAUSING GLOBAL DEATHS global deaths by cause, 2005 (millions) Chronic Diabetes diseases Chronic respiratory diseases Cancer Cardio vascular diseases Malaria Tuberculosis HIV/AIDS 0 2 4 6 8 10 12 14 16 18 20 Deaths (millions) WHO 2005 Total deaths – 58 million
    • Foregone income to deaths by chronic diseases Foregone income due to diseases (2005-15) 600 500 US$ (billion) 400 300 200 100 0 Brazil Canada China India Russia UK WHO 2005 US$558 billion The estimated amount China alone will forego in national income between 2005-15 as a result of premature deaths caused by heart disease, stroke and diabetes
    • DRIVERS FOR CONSUMER FOOD PRODUCT DEVELOPMENT  Population demographics  Rising obesity - the health condition/disease of the millennium  Increased incidences of non-communicable, chronic diseases  Growing population of unhealthy kids  Consumer awareness of food-health relationships
    • UNHEALTHY KIDS  US data  High blood pressure – 3 fold increase in last 10 years  Cholesterol – 10% of children with 200 mg/dL  Metabolic syndrome – 1 million kids  Overweight – 30% kids  AHA recommendations –  Begin monitoring blood pressure at age 3  Begin monitoring cholesterol at age 8 if there is a family history Sloan, 2006 (FT April 2006)
    • DRIVERS FOR CONSUMER FOOD PRODUCT DEVELOPMENT  Population demographics  Rising obesity - the health condition/disease of the millennium  Increased incidences of non-communicable, chronic diseases  Unhealthy kids  Consumer awareness of food-health relationships
    • Consumer research – consumer would use food to prevent disease/health condition Disease/health condition % Obesity 76 High cholesterol 67 Blood sugar imbalance 67 Heart disease 66 Diabetes 64 Lack of energy 58 Osteoporosis 48 Vision problems 38 Arthritis 35 FFN Jan 2006
    • OPPORTUNITIES AND CHALLENGES Opportunities and Drivers Challenges
    • CHALLENGES – REGULATORY AND LABELLING  Health claims – regulatory/labelling challenges  Confusion about health claims – regulators, manufacturers, consumers are all unsure  Australia – Over 8 years for P293 – still not finalised  What do the consumers understand of health claims? Will they be misled? What if the product did not consistently perform and the claimed health benefits were not achieved ?  Will the misleading claims or claims with inconsistent benefits lead to litigations?  Can small companies afford such litigations?
    • DANONE/DANNON CASE – SEP 2009  Jan 2008 - case filed on exaggerated health benefits of certain yoghurt products in their advertising  Sep 2009 - Dannon announced US$35 million (A$40m) settlement of a class action lawsuit for its Activia and DanActive (US name for Actimel)products.  Dannon had to make changes to the labelling and marketing of Activia and DanActive
    • DANONE/DANNON CASE – SEP 2009  Jan 2008 - case filed on exaggerated health benefits of certain yoghurt products in their advertising  Sep 2009 - Dannon announced US$35 million (A$40m) settlement of a class action lawsuit for its Activia and DanActive products.  Dannon made changes to the labelling and marketing of Activia and DanActive
    • DANNON DANACTIVE - US Before After
    • DANNON DANACTIVE - US Before After
    • DANONE ACTIMEL - EUROPE Before After
    • GENERAL MILLS WARNED FOR “CHOLESTEROL LOWERING CLAIMS” – MAY 2009  May 2009 - FDA warns General Mills that cholesterol-lowering, cancer-fighting benefits of its Cheerios brand cereal were “inappropriate,” as claims advertised by General Mills implicitly mislead the public by failing to clarify exactly how the cereal figures into an overall healthy diet designed to lower bad cholesterol levels
    • KELLOGG TO DROP IMMUNITY HEALTH CLAIMS ON RICE KRISPIES – JUNE 2010  Packaging which stated that Rice Krispies “now helps support your child’s immunity” to “been improved to include antioxidants and nutrients that your family needs to help them stay healthy.”  Kellogg now barred by FTC from making “claims about any health benefit of any food unless the claims are backed by scientific evidence and not misleading”.
    • SUCH CLAIMS CAN BE SEEN IN AUSTRALIA Label claims: “lowers cholesterol by up to 15%” rather than saying “helps to reduce absorption of LDL cholesterol” The National Heart Foundation of Australia recommends a daily intake of 2-3 grams of plant sterols Each serve of HeartActive™ contains 0.8g of plant sterols
    • CHALLENGES – FOOD PRODUCT DEVELOPMENT  Phytosterol  Insolubility in water and difficulty in incorporating in low or no-fat beverages  Isoflavones  Bitterness, poor solubility in water  Dietary fibre, prebiotics  Poor suspension and sedimentation  Probiotics  Exposure to heat, oxygen, low pH, moisture and direct light
    • CHALLENGES – FOOD PRODUCT DEVELOPMENT  Calcium Soluble (chloride)  heat stability, protein instability  Insoluble (milk minerals, phosphate, citrate, carbonate)  sedimentation, grittiness  Iron, zinc, selenium  Flavour, colour, heat stability  Vitamins  Poor solubility and activity loss due to heating
    • PRODUCT DEVELOPMENT CHALLENGES  Fish oil (EPA & DHA); Microalgae (EPA & DHA); Flaxseed oil (ALA)  Undesirable flavour and taste, rancidity, microencapsulated products still difficult to incorporate in high heat beverages
    • 1 2 3 4 Market Success !! Regulations & Consumers awareness Product performance Market labelling & acceptance flavour and taste competition
    • REFERENCE: FUNCTIONAL FOODS WEEKLY Market intelligence, innovations and trends in functional foods and nutraceuticals http://www.functionalfoods.com.au