[Report] U.S. Food & Beverage Omega 3 Fatty Acids Market Research, Trends, Analysis TOC

Chapter 1 Executive Summary

Scope and Methodology
Report Methodology
The Products
- Products Analyzed
- Not All Fats Are Created Equal
- The Skinny on the Fatties: ALA, DHA, and EPA
The Ingredients
- Sources of ALA
- Sources of DHA and EPA
- Group' s Focus to Differentiate and Educate
- Qualified Health Claim for Products Formulated with DHA and EPA
Size and Growth of the Market
- Omega-3-Enhanced Products Are Really Just Gaining Momentum
- 2006 Finishes Off with $2 Billion in Sales
- Sales Are Projected to Reach $7 Billion by 2011
- Table 1-1 U.S. Sales of Omega-3-Enhanced Products, 2002-2011 (in millions of dollars)
- ALA-Enhanced Foods Kick the Category Off: DHA/EPA Take Over
- Figure 1-1 U.S. Retail Sales of Omega-3-Enhanced Products, Percent Share of ALA vs. DHA/EPA, 2002-2011
- Grain-Based Foods Dominate Share of Sales
New Products and Trends Driving Market Growth
- New Omega-3-Enhanced Products Entering the Marketplace
- There' s a Dietary Need for Omega-3s
- Functional Foods Are the Trend, and Omega-3 Is a Leader in the Biz
The Marketplace
- All Types of Marketers
- Where Consumers Shop for These Foods
- Traditional Supermarkets Account for 50.0% of Retail Sales
- Table 1-2 Omega-3 Foods and Beverages: Share of Dollar Sales by
- The Consumer
- Two Different Consumers Are Primary Targeted
- Table 1-3 Awareness and Consumption of Omega-3s for Certain
- Health Benefits
- Consumers' Perceptions of Fats

Chapter 2 The Products and the Ingredients

Key Points
Not All Fats Are Created Equal
Fatty Acids 101
How Fatty Acids Vary in Their Impact on Health
Losing a Fear of Fat
The Essential Fatty Acids
The Omega-3s: ALA, DHA, and EPA
Table 2-1 Omega-3 Fatty Acids: Nomenclature, Structure, and Food Source
Products Included and Excluded From This Report
Fortifying with Omega-3s Is the Trend for 2007 . . . and Beyond
Why Fortify with Omega-3s? Recognized Benefits

Government Regulations
- The Regulatory Environment
- Labeling Overview
- Labeling Nomenclature
- Provide the Facts: Nutritional Information Musts
- Trans Fats Joined That List; Omega-3s Not Part of the Nutrition Facts
- Products that Are Exempt
- Adding Beneficial Nutrients to Conventional Foods
- Table 2-2 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 2-3 Structure/Functions Claims on Omega-3-Fortified Foods and Beverages, 2006
- Figure 2-1 Stonyfield YoBaby Plus Fruit & Cereal Yogurt with DHA
- Figure 2-2 Uncle Sam Toasted Whole-Wheat Flakes & Flaxseed with Real Mixed Berries
- Nutrient Content Claims
- Table 2-4 Nutrient Content Claims on Omega-3-Fortified Foods and Beverages, 2006
- Figure 2-3 Farmland Dairies Special Request 1% Plus with Omega-3 Milk
- Figure 2-4 Promise Buttery Spread
- Allergen Issues
- Dietary Recommendations for Consuming Omega-3s
Omega-3 Sources
- An Overview of ALA, DHA, and EPA
- The Basics on Flaxseed
- Walnuts Have ALA, Too
- Seed Oils Enters the Scene
- Fish Oil-Based DHA and EPA
- Skip the Fish and Go to the Source
- Do Marine and Plant Sources Vary in Functionality?
- ALA vs. DHA and EPA
- Group' s Focus to Differentiate and Educate
- ALA Fortification Continues to Boom
- This Report Breaks Up ALA and DHA/EPA Foods
- Omega-3 Suppliers

Chapter 3 The Market

Key Points
Market Definition
Omega-3-Enhanced Foods Off to a Slow Start
2006 Finishes Off with $2 Billion in Sales
Table 3-1 U.S. Retail Sales of Omega-3-Enhanced Products, 2002-2006 (in millions of dollars)
Figure 3-1 U.S. Retail Sales of Omega-3-Enhanced Products, 2002-2006 (in millions of dollars)
ALA-Enhanced Foods Kick Off the Omega-3-Enhanced Category
Table 3-2 U.S. Retail Sales of Omega-3-Enhanced Products, by ALA and DHA/EPA, 2002-2006 (in millions of dollars)
Figure 3-2 U.S. Retail Sales of Omega-3-Enhanced Products, Percent Share of ALA vs. DHA/EPA, 2002-2006

Market Composition
- Grain-Based Foods Dominate Share of Sales
- Figure 3-3 Omega-3-Enhanced Foods and Beverages: Share of Dollar Sales by Product Category, 2006
- The Dynamics Change When ALA and DHA/EPA Are Broken Out
- Figure 3-4 ALA Omega-3-Enhanced Foods and Beverages: Share of Dollar Sales by Product Category, 2006
- Figure 3-5 DHA/EPA Omega-3-Enhanced Foods and Beverages: Share of Dollar Sales by Product Category, 2006
- Where Consumers Are Buying Omega-3-Enhanced Foods
- Figure 3-6 Omega-3 Foods and Beverages: Share of Dollar Sales by Outlet, 2006
Factors to Market Growth
- There' s a Dietary Need for Omega-3s
- ALA vs. DHA/EPA; The Latter Goes Full Speed Ahead
- Ingredient Suppliers Offer High-Quality DHA and EPA
- Functional Foods Are the Trend, and Omega-3 Is a Leader in the Biz
- Group' s Focus to Differentiate and Educate
Projected Market Growth
- Sales Are Projected to Reach $7 Billion by 2011
- Table 3-3 Projected U.S. Retail Sales of Omega-3-Enhanced Products, 2006-2011 (in millions of dollars)
- Figure 3-7 Projected U.S. Retail Sales of Omega-3-Enhanced Products, 2006-2011 (in millions of dollars)
- DHA/EPA-Enhanced Foods Dominate Category Quickly
- Table 3-4 Projected U.S. Retail Sales of Omega-3-Enhanced Products, by ALA, DHA, and EPA, 2006-2011 (in millions of dollars)
- Figure 3-8 Projected U.S. Retail Sales of Omega-3-Enhanced Products, Percent Share of ALA vs. DHA/EPA, 2006-2011

Chapter 4 The Suppliers

Key Points
Omega-3 Ingredient Options
Before You Seek Out a Supplier
A Sample of Sources of ALA
A Sample of Sources of DHA/EPA

Competitive Profile: DSM Nutritional Products, Inc., Parsippany, New Jersey
- Company Overview
- Back in Business
- Educating Educators and Curious Consumers
Competitive Profile: Martek Biosciences, Columbia, Maryland
- Company Overview
- Beyond Infant Formula
- Selected for NIH Study
- Cutting Exclusivity Deals with Major Marketers
Competitive Profile: Ocean Nutrition Canada Ltd., Dartmouth, Nova Scotia, Canada
- Company Overview
- Unique Double Shell Protection Debuts in 2006
- Teaming Up with Danone to Educate the Public on EPA/DHA
- Tipping Point?
Competitive Profile: Omega Protein Corp., Houston, Texas
- Company Overview
- Current and Potential Applications
- Table 4-1 Application Chart for OmegaPure Menhaden-Derived Fish Oil
Competitive Profile: Pizzey' s Milling USA, Gurnee, Illinois
- Company Overview
- Picking and Choosing Seeds

Chapter 5 The Marketers

Key Points
All Types of Marketers
The Five Leading Marketers
Table 5-1 U.S. Omega-3 Foods and Beverages: Five Leading Marketers and Brands, 2006
Competitive Situation
- IRI Data Is Not Available for Most Marketers
- Consumers Must Recognize the Benefits of Barilla Pasta PLUS
- Flax Cereal Must Be Nature' s Deal
- Spread on the Good Stuff
- Table 5-2 U.S. Omega-3 Foods and Beverages: Select Brands, Dollar Sales, 2002-2006 (in thousand of dollars)
Competitive Profile: Barilla America, Inc., Deerfield, Illinois
- Company Overview
- Adding ALA to Pasta
- Barilla Is a Brand Growth All Star
- Event Sponsorship and Advertising Is Key to Building Brand
- Figure 5-1 Barilla PLUS Spaghetti
Competitive Profile: Clif Bar Inc., Berkeley, California
- Company Overview
- Serving the Earth
- Luna Now Comes with Omega-3s
Competitive Profile: Eggland' s Best, Inc., King of Prussia, Pennsylvania
- Company Overview
- What Makes the Eggs so Special?
- Look for the “EB” Stamp on Each Eggshell
Competitor Profile: Enjoy Life Natural Brands, LLC, Schiller Park, Illinois
- Company Overview
- Perky' s Acquisition Grows Product Line
Competitive Profile: GFA Brands, Inc., Cresskill, New Jersey
- Company Overview
- Smart' s Source of Omega-3s
Competitive Profile: General Mills, Inc., Minneapolis, Minnesota
Company Overview
- More Omega-3 Innovating in the Future
Competitor Profile: The Hain Celestial Group, Inc., Melville, New York
- Company Overview
- First with Omega-3 Teas
- The Goji and Acai Berries
- Spectrum Acquisition Puts Flax Oil in Company' s Product Mix
Competitive Profile: Kellogg Co., Battle Creek, Michigan
- Company Overview
- Entering Into DHA Agreement
- The Kashi Story
- Innovative R&D Department Does Its Homework
Competitor Profile: Nature' s Path Foods, Inc., Delta, British Colombia, Canada
- Company Overview
- Back to the Drawing Board
- Organic Granola Gets Hipper at Nature' s Path
Competitive Profile: Omega Farms, Hayward, California
- Company Overview
- Complete Product Line
- Proprietary Marine Source of Omega-3s
Competitive Profile: Stonyfield Farm, Londonderry, New Hampshire
- Company Overview
- Strong Beliefs in Yogurt' s Benefits and the Environment

Chapter 6 The Retail Market

Key Points
Shopping Options Are Plentiful; It' s a Slow Start for Omega-3s
So Where Are Consumers Shopping?
Different Types of Retail Outlets
Club Stores:
Convenience Stores (C-stores):
Dollar Stores:
Drug Stores:
Health/Natural Foods Stores:
Mass Merchandisers:
Other:
Supermarket:
Traditional Supermarkets Account for 50.0% of Retail Sales
Table 6-1 Omega-3 Foods and Beverages: Share of Dollar Sales by Outlet, 2006
Different Formats Attract Consumers for Their Varied Needs
Channel Blurring Continues to Grow
Traditional Supermarkets Down in Number
Just How Much Can a Store Carry?
Who Are the Leading Retailers?
Table 6-2 Top-Five U.S. Discount-Style Food Store Chains, by Dollar Sales and Store Count, 2005
Table 6-3 Top-Three U.S. Niche-Style Food Store Chains, by Dollar Sales and Store Count, 2005
Warehouse Clubs
Table 6-4 Comparative Price of Select Omega-3 Foods and Beverages: Supermarket vs. Club Store, 2007
Never Under Price
Table 6-5 Retail Price of Select Omega-3 Foods and Beverages, 2007
Table 6-5 (cont.) Retail Price of Select Omega-3 Foods and Beverages, 2007
Never Seeing the Inside of a Store
How to Get Your Products in Retail Distribution
Direct Delivery Advantages
The Cost of Face-To-Face Business
Advantages of Warehouse Delivery
Smaller Marketers Work Through Brokers
Introducing Better-for-You Products to the Marketplace

Chapter 7 The Consumer

Key Points
Consumer Research on Omega-3s Is Slim
How Functional Foods Complement Today' s Consumer
Consumers Report Making Better-for-You Choices
Which Consumers Care the Most About Nutrition, Specifically Fat?
Consumers Want to Learn More; Educate Them
Two Different Consumers Are Primary Targeted
Table 7-1 Awareness and Consumption of Omega-3s for Certain
Health Benefits
Consumers Aware About Fat Types and Forms
Consumers Aware About Fat Types and Forms
- Consumers' Perceptions of Fats
- Figure 7-1 Consumers' Perceptions of Omega-3 Fatty Acids and Fish Oils
- Consumption Trends
- Figure 7-2 Consumption Trends for Omega-3 Fatty Acids and Fish Oils
- Another Consumer Survey on Dietary Fat Knowledge
- What Consumers Want
- Table 7-2 Nutrients and Substances Americans Want More of in Their Diets, 2006
- How to Give It to Them

Chapter 8 New Products and Trends

Key Points
Flagging Omega-3 Content Slow but Growing
Most Claims Are on Fish, Where Omega-3s Are Inherently Present
Top-Five Non-Fish Items to be Enhanced with Omega-3s
Table 8-1: Total SKUs Introduced to the U.S. Marketplace with an Omega-3 Tag/Claim, 2002-2006
When Fish Is Out, Grain-Based Foods Rule; Followed by Dairy
Table 8-2 Top-Five New SKUs Introduced Carrying an Omega-3 Content Reference, Less Fish SKUs, 2002-2006
Figure 8-1 Top-Five New SKUs Introduced Carrying an Omega-3 Content Reference, Less Fish SKUs, 2002-2006
Development Trends
- Consumers Want Omega-3s
- Marketers Embrace Omega-3s in Product Formulations
- Not All Marketers Acknowledge Research on ALA vs. DHA and EPA
- The Trend Toward DHA and EPA
- Omega-3s-In Any Way, Shape, and Form-Is the Trend
New Products in 2005 and 2006
- Initial New Products Are Grain-Based and Contain ALA
- Figure 8-2 Zoe' s O' s Whole Grain Flax & Soy Cereal
- As Noted, Bars Are Big Business
- Figure 8-3 Zoe' s Whole Grain Energy Bars
- Figure 8-4 Luna Sunrise Bars
- Figure 8-5 Luna Tea Cakes
- This Bar Is for Moms-to-Be
- Some Whole Grain Pasta Includes ALA
- Figure 8-6 Barilla Plus
- Figure 8-7 Ronzoni Healthy Harvest
- Bread Rolls Out with DHA and EPA
- Figure 8-8 Arnold Smart & Healthy 100% Whole Wheat Bread with Omega-3
- Cookies Get Enriched, Too
- Figure 8-9 Kashi TLC Oatmeal Raisin Flax Chewy Cookies
- Frozen Pizza Delivers DHA and EPA via the Crust
- Figure 8-10 A.C. LaRocco Greek Sesame Pizza
- Fats and Oils Formulated with Both Groups of Omega-3s
- Figure 8-11 I Can' t Believe It' s Not Butter Mediterranean Blend
- Figure 8-12 Spectrum Organic Omega-3 Salad Dressings
- All Types of Omega-3 Eggs in the Marketplace
- Figure 8-13 Organic Valley Omega-3 Eggs
- ALA from Walnuts and Cranberry Seed Oil
- Figure 8-14 Trader Joe' s Roasted & Salted Walnuts with Omega Cranberries
- Dairy Foods Are Seeing Lots of DHA and EPA Activity
- First Full Line of Dairy Comes Out During Spring 2006
- Figure 8-15 Omega Farms Dairy Products Line
- Omega-3, Plus More Good Stuff
- Figure 8-16 Farmland Dairies Special Request 1% Plus with Omega-3
- What Works in Cows Milk Works in Buffalo Milk and Soymilk, Too
- Figure 8-17 Odwalla Soymilk
- Additional New Products
- Table 8-3 New Products with Omega-3 Claims/Tags, 2006
International New Product Highlights
- Canada Is at the Forefront of Omega-3 Enrichment
- Nutri-Kids Makes Mom and Kids Happy with Nutrition-2-Go
- Figure 8-18 Nutri-Kids Nutrition-2-Go
- Figure 8-19 Danone Cardivia Yogurt
- Figure 8-20 Danone Danino Yogurt
- European Countries Are Beginning to Embrace Omega-3s, Too
- Figure 8-21 St Ivel Gold Omega 3 Spread
- Figure 8-22 Ganaderia Priegola Simbi
- Figure 8-23 Latteria Sociale Merano Societa Agricola Cooperativa Agricol' s Mente Viva
- Omega-3s Boom in Other Countries Around the World

Omega 3 Fatty Acids and the U.S. Food and Beverage Market

Table of Contents

Chapter 1 Executive Summary

Chapter 2 The Products and the Ingredients

Chapter 3 The Market

Chapter 4 The Suppliers

Chapter 5 The Marketers

Chapter 6 The Retail Market

Chapter 7 The Consumer

Chapter 8 New Products and Trends

Appendix I: Omega-3 Suppliers

Appendix II Marketers