Functional Food & Drink Consumption Trends

Table of Contents

• CHAPTER 1 EXECUTIVE SUMMARY
  • The hot topic
  • The future decoded
    • Health issues are becoming increasingly important as a result of an aging population
    • Functional food consumption is growing fast
    • Consumers have an attitude-behavior gap concerning healthy eating
    • Functional foods offer a solution to time-pressured consumers
    • Consumers are wary of health-related claims on food and drink products
    • The increasing availability of health information has seen consumer awareness on health issues grow
  • Action points
• CHAPTER 2 THE FUTURE DECODED
  • Introduction
    • Health is regarded as the most important consumer trend among manufacturers
      • Defining functional foods and drinks
  • TREND: Health issues are becoming increasingly important as a result of an aging population
    • The proportion of Senior consumers is growing
  • The Senior demographic cannot be targeted as one group
    • Early Seniors will lead increasingly active lives as retirement age rises
    • Functional health needs vary across the Senior demographic
  • TREND: Lifestyle diseases are becoming more common
    • Bone health problems are on the rise and affect many consumers
    • A rise in heart problems has prompted a rise in the number of products addressing this need
    • More people are targeting gut health but don' t view it as a serious medical concern
    • Dairy is the most popular category in addressing gut health
    • Dairy products also dominate the probiotic sector
    • The probiotic sector is bigger than the prebiotic sector
  • TREND: Functional food consumption is growing fast
    • The US functional food and drinks market is larger than in Europe
      • The dairy sector is set to overtake soft drinks as the largest category in the US functional food and drinks sector
      • Functional yogurts have been a key growth driver in the dairy segment
      • Savory snacks suffer due to their perception as an unhealthy product
      • Energizing products continue to dominate the US market
    • The European functional food and drink market is growing at a similar rate to the US
      • Europeans consume a significant amount of functional confectionary
      • Energy products dominate functional food and drinks in Europe
      • Germany and the UK account for the most significant portion of Europe' s functional food and drinks sales
    • The rising success of ' naturally functional' food and drink poses a threat and opportunity to the functional market
      • Naturally functional food consumption will be boosted by rising interest in ' 5-a-day' consumption and general healthy eating patterns
      • Green tea: a naturally functional beverage
  • INSIGHT: Parents are increasingly concerned about their kids' health
    • Parents are taking more control of their kids' eating habits
      • Consumers of parenting age are trying to eat more healthily and this has a knock-on effect
      • Household eating rules set by parents are important to developing children' s healthiness
  • INSIGHT: Time pressures drive consumers to nutraceuticals
  • INSIGHT: Consumers are wary about health related claims on food and drink products
    • People are increasingly skeptical about corporate health claims
      • The lack of credible backing may inhibit a health food' s success
    • Advanced packaging technology may reduce skepticism
  • INSIGHT: The increasing availability of health information has seen consumer awareness on health issues grow
    • Health issues are increasingly being reported on
      • Health issues are receiving increased coverage in the media
    • The Internet has proved a useful tool in making consumers more health aware
      • Consumers are increasingly relying on self-diagnosis
  • INSIGHT: While health is becoming increasingly important taste remains paramount
    • Functional ingredients restrict ability to meet consumer flavor preferences
  • Conclusions
• CHAPTER 3 ACTION POINTS
  • Introduction
  • Develop trust as a cornerstone of your nutraceutical proposition
    • Act in a socially responsible way
    • Seek endorsements from reputable organizations
    • Extend health brands that consumers already trust
    • Consumers must understand products to trust their claims
      • Realistic and focused claims will benefit the sector
  • Alter the ingredient makeup of typically unhealthy products
    • Substitute unhealthy components with more healthy ingredients
    • Marry functional benefits to highly indulgent product categories
  • Target children with functional products that address parents concerns over health and nutrition
    • Develop child specific functional products
      • Case study: Danino utilizes ' junk food' design cues to appeal to children as well as adults
  • Educate the consumer sufficiently about the health benefits derived from the consumption of a particular product
  • Source natural products and incorporate them into functional offerings
  • Use the Internet to promote products
  • Consider whether your offering is better than alternative solutions
    • It is important to be a better alternative at the right occasion
    • Does your offering really provide a better consumer solution than existing options?
• CHAPTER 4 APPENDIX
  • Supplementary data
  • Definitions
  • Research methodology
  • How to contact experts in your industry
  • List of Tables
    • Table 1: Responses to the question: "To what extent have you done the following in the past year? Used nutritional information on packaging to help make food and drinks choices", 2006
    • Table 2: Population by age group (m), Europe and US, 2001-2011
    • Table 3: Consumers suffering from bone health problems (m), Europe and US, 2001-2011
    • Table 4: Consumers suffering from heart health problems (m), Europe and US, 2001-2011
    • Table 5: Consumers suffering from gut health problems (m), Europe and US, 2001-2011
    • Table 6: US functional food & drink market value (US$ m), by category, 2001-2011
    • Table 7: US functional food & drink market value (US$m), by claimed health benefit, 2001-2011
    • Table 8: Europe functional food & drink market value (US$ m), by category, 2001-2011
    • Table 9: Europe functional food & drink market value (US$ m), by claimed health benefit, 2001-2011
    • Table 10: Europe functional food & drink market value (US$ m), by country, 2001-2011
    • Table 11: Overall green tea values (US$ m), US & Europe, 2000-2010
    • Table 12: Key influencing factors in children' s snacking needs
    • Table 13: Functional bakery & cereals market value (US$ m), by category, Europe 2001-2011
    • Table 14: Functional confectionery market value (US$ m), by category, Europe 2001-2011
    • Table 15: Functional dairy market value (US$ m), by category, Europe 2001-2011
    • Table 16: Functional savory snacks market value (US$ m), by category, Europe 2001-2011
    • Table 17: Functional soft drinks market value (US$ m), by category, Europe 2001-2011
    • Table 18: Functional other food and drinks market value (US$ m), by category, Europe 2001-2011
    • Table 19: Europe functional food & drink market value (US$ m), by claimed health benefit, 2001-2011
    • Table 20: Definitions of disease types covered
  • List of Figures
    • Figure 1: Cholesterol lowering products are more relevant for Early Seniors
    • Figure 2: Examples of products which use calcium as a selling point
    • Figure 3: Examples of products which are said to help maintain a healthy heart
    • Figure 4: Examples of products which have received backing from an influential body
    • Figure 5: Probiotic product innovation is ten times greater in yogurts than its closest category across Europe and the US, 2001-06
    • Figure 6: Yogurt is the leading product category for prebiotic food products, 2001-2006
    • Figure 7: An example of a prebiotic bakery product
    • Figure 8: The extent to which European consumers have used nutritional information on packaging more or less in 2006 compared to 2005, to help make food and drinks choices
    • Figure 9: A growing number of products incorporate pomegranate for its health benefits
    • Figure 10: Functional and fortified food products are increasingly being targeted at babies
    • Figure 11: The extent to which European and US consumers sought food and drinks which are both convenient AND healthy more or less in 2006 than 2005
    • Figure 12: Examples of single-serve beverage products which satisfy both the health and convenience mega-trends
    • Figure 13: The Internet has changed the way consumers relate to health information, physicians, companies and other consumers
    • Figure 14: Sirco is an example of a product which has received backing from a professional body
    • Figure 15: Examples of confectionery products which offer a healthy option
    • Figure 16: Functional and fortified products need to be heavily promoted to parents, but equally accessible and fun to Kids