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

Functional Foods and Beverages in the U.S., 4th Edition published by Packaged Facts in May, 2009. This report consists of 233 pages and the price starts from US $ 3300.

Introduction

Abstract

Functional foods - defined here as food and beverage products that offer a distinct health advantage beyond basic nutrition by including specific ingredients whose therapeutic benefits provide a primary market positioning - continue as a key food industry driver due to greatly ramped up product development and marketing. Although the economic recession may prohibit some consumers from purchasing higher-priced specialty items, functional foods can actually save consumers money in the short term by pumping up basic food items with ingredients shoppers would otherwise have to get in the form of more expensive nutritional supplements. Additionally, whereas in the past consumers were primarily reactive, trying to treat health problems after they arise, today they are more proactive, focusing on overall "wellness" and turning grocery aisles into hunting grounds for healthful, functional foods to prevent illness and chronic conditions.

This fully updated fourth-edition Packaged Facts report examines the U.S. market for functional foods and beverages from all angles while providing insight into key international markets, identifying global trends in new product introductions by geographic region and company and exploring developing markets poised for growth. For the U.S. market, it presents retail sales breakouts of food and beverage categories with a strong functional tilt, from yogurt to food/snack bars to cranberry juice; examines market drivers and trends; and maps out the overall competitive situation. Trends in new product introductions are examined in depth, based on data from Datamonitor' s Product Launch Analytics, as are trends in functional ingredients and condition-specific product thrusts. The report also profiles major marketers, including Groupe Danone, Kellogg Co., Kraft Foods, Nestle SA, PepsiCo and Nature' s Path Organic.

An exclusive feature of Functional Foods and Beverages 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 measure purchasing patterns, attitudes and demographics specific to functional foods and beverages. Drilling down to the marketer and brand level, the analysis also relies on consumer survey data from Experian Simmons' Fall 2008 National Consumer Study, and on Information Resources, Inc. InfoScan Review data charting product sales in mass-market channels.

Table of Contents

Chapter 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
• 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 Trends

Chapter 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
• 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, 2009

Chapter 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)
• 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 Strategies

Chapter 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)
• Table 4-5: Consumer Price Increases for Food, Food at Home and Food Away From 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 in Relation to Personal Financial Situation, 2008 (percent and index)
• Functional Foods Less Vulnerable to Economic Downturn
• Changes in Spending Habits
• Rising Food Costs
• Figure 4-5: Consumer Price Index for Selected Food and Beverage Categories: 1999-2008
• Table 4-7: U.S. Functional Food and Beverage Market: Percentage Change in Dollar vs. Volume Sales by Product Category, 2007 vs. 2008 (in millions of dollars)
• Growing Health Concerns and an Aging Population
• Obesity and Health
• Consumers Seeking "Wellness"
• Aging Boomers and Chronic Conditions
• Table 4-8: Projected U.S. Population by Age Bracket: 2007, 2010 and 2015 (in thousands)
• IFIC Study on Diet and Health Connections
• Packaged Facts Survey Confirms High Consumer Interest in Functional Foods
• Table 4-9: Percent of U.S. Consumers Who Have Purchased Beverage Products in the Last 12 Months Because of Special Nutritional Benefits, 2009
• Table 4-10: Percent of U.S. Consumers Who Have Purchased Food or Beverage Products in the Last 12 Months Because of Specific Nutritional Content, 2009
• Table 4-11: Percent of U.S. 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, 2009
• Table 4-12: Level of Agreement with Statement, "Rather Than Vitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with Specific Nutritional Benefits," February 2009 (percent of U.S. adults)
• 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, 2009

Chapter 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
• Table 5-2: Number of U.S. Functional Food and Beverage New Product Introductions: By Package Tag/Claims for Selected Product Classification, 2008
• Functional Drinks Category Leads in Product Introductions
• Table 5-3: Number of U.S. Functional Food and Beverage New Product Introductions: By Product Category, 2003-2008
• Functional Ingredient Trends
• Fiber and Whole Grains Galore
• Probiotics and Prebiotics: Focus on Digestive Health
• Good Bacteria Growing in Popularity
• Probiotic Claims Require Careful Handling
• Prebiotics Encourage Friendly Flora
• Half of Consumers Have Purchased High-Antioxidant Products
• Superfruits: Juices and More
• Table 5-4: New Product Introductions with Select Superfruits, 2004-2008 (number)
• Table 5-5: Purchasing of Selected "Superfruit" Beverage Types Within The Past 12 Months, 2009 (percent of U.S. adults)
• Beyond the Fruit: Chocolate, Tea and More
• Omega-3 Fatty Acids
• Flax Seed as Source of Omega-3
• Omega-3 Market Growth in Question
• Despite Questions, Omega-3 Maintains Mainstream Appeal
• Soy Products Proliferate
• Organic Introductions
• Figure 5-1: Levels of Agreement with Statement, "I Am Usually Willing to Pay More for Organic Foods, 2009 (percent of U.S. adults)
• Targeted Functional Product Types
• Condition-Specific Products Aimed at Boomer Market
• Heart Disease and Cholesterol
• 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 Children

Chapter 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)
• Table 6-5: Selected U.S. Adult Demographics for Use of Kashi GoLean Cold Cereal, 2008 (index)
• Table 6-6: Selected U.S. Adult Demographics for Use of Kashi Bars, 2008 (index)
• Functional Snacks and Beverages
• Kraft Foods, Inc
• Company Overview
• Health and Wellness Are Core Strategies
• Table 6-7: Selected U.S. Adult Demographics for Use of Kraft South Beach Frozen Pizza, 2008 (index)
• Table 6-8: Selected U.S. Adult Demographics for Use of Balance Bar, 2008 (index)
• Breaking New Ground in Healthy Foods
• Nestle SA
• Company Overview
• Health/Wellness - And Indulgence
• Nutrition in Developing Nations
• Bars, Dinners and Beverages
• Table 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 Overview
• Not Just a Soda Company
• SoBe
• Table 6-11: Selected U.S. Adult Demographics for Use of SoBe Functional Drinks, 2008 (index)
• Naked Juice
• Table 6-12: Mass-Market Sales of Naked Juice Functional Beverages, 2007-2008 (in millions of dollars)
• 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)
• Table 7-4: Level of Agreement with Statement, "I Am Buying More Foods/Beverages Because of Their Specific Nutritional Benefits": By Age Bracket, 2009 (percent)
• Table 7-5: Level of Agreement with Statement, "Rather Than Vitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with Specific Nutritional Benefits": By Household Composition, 2009 (percent)
• Table 7-6: Level of Agreement with Statement, "I Am Buying More Foods/Beverages Because of Their Specific Nutritional Benefits": By Household Composition, 2009 (percent)
• Table 7-7: Level of Agreement with Statement, "Rather Than Vitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with Specific Nutritional Benefits": By Highest Level of Educational Attainment, 2009 (percent)
• Table 7-8: Level of Agreement with Statement, "I Am Buying More Foods/Beverages Because of Their Specific Nutritional Benefits": By Highest Level of Educational Attainment, 2009 (percent)
• Table 7-9: Level of Agreement with Statement, "Rather Than Vitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with Specific Nutritional Benefits": By Household Income Bracket, 2009 (percent)
• Table 7-10: Level of Agreement with Statement, "I Am Buying More Foods/Beverages Because of Their Specific Nutritional Benefits": By Household Income Bracket, 2009 (percent)
• Table 7-11: Level of Agreement with Statement, "Rather Than Vitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with Specific Nutritional Benefits": By Race/Ethnicity, 2009 (percent)
• Table 7-12: Level of Agreement with Statement, "I Am Buying More Foods/Beverages Because of Their Specific Nutritional Benefits": By Race/Ethnicity, 2009 (percent)
• Table 7-13: Level of Agreement with Statement, "Rather Than Vitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with Specific Nutritional Benefits": By Locale of Residence, 2009 (percent)
• Table 7-14: Level of Agreement with Statement, "I Am Buying More Foods/Beverages Because of Their Specific Nutritional Benefits": By Locale of Residence, 2009 (percent)
• Table 7-15: Level of Agreement with Statement, "Rather Than Vitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with Specific Nutritional Benefits": By Region of Residence, 2009 (percent)
• Table 7-16: Level of Agreement with Statement, "I Am Buying More Foods/Beverages Because of Their Specific Nutritional Benefits": By Region of Residence, 2009 (percent)
• Purchasing Rates by Product Characteristics
• Table 7-17: 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, 2009
• Table 7-18: Percent of Consumers Who Have Purchased Food or Beverage Products in the Last 12 Months Because of Specific Nutritional Content, 2009
• Table 7-19: Percent of Consumers Who Have Purchased Beverage Products in the Last 12 Months Because of Their Special Nutritional Benefits, 2009

Women Are the Prime Consumers

• Table 7-20: 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 Gender, 2009
• Table 7-21: Percent of Consumers Who Have Purchased Food or Beverage Products in the Last 12 Months Because of Specific Nutritional Content: By Gender, 2009
• Table 7-22: Percent of Consumers Who Have Purchased Beverage Products in the Last 12 Months Because of Their Special Nutritional Benefits: By Gender, 2009

Varied Patterns by Age

• Table 7-23: 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 Age Bracket, 2009
• Table 7-24: Percent of Consumers Who Have Purchased Food or Beverage Products in the Last 12 Months Because of Specific Nutritional Content: By Age Bracket, 2009
• Table 7-25: Percent of Consumers Who Have Purchased Beverage Products in the Last 12 Months Because of Their Special Nutritional Benefits: By Age Bracket, 2009

Patterns by Household Composition

• Table 7-26: 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 Household Composition, 2009
• Table 7-27: Percent of Consumers Who Have Purchased Food or Beverage Products in the Last 12 Months Because of Specific Nutritional Content: By Household Composition, 2009
• Table 7-28: Percent of Consumers Who Have Purchased Beverage Products in the Last 12 Months Because of Their Special Nutritional Benefits: By Household Composition, 2009

Strong Correlation with Higher Education and Income

• Table 7-29: 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 Highest Level of Educational Attainment, 2009
• Table 7-30: Percent of Consumers Who Have Purchased Food or Beverage Products in the Last 12 Months Because of Specific Nutritional Content: By Highest Level of Educational Attainment, 2009
• Table 7-31: Percent of Consumers Who Have Purchased Beverage Products in the Last 12 Months Because of Their Special Nutritional Benefits: By Highest Level of Educational Attainment, 2009
• Table 7-32: 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 Household Income Bracket, 2009
• Table 7-33: Percent of Consumers Who Have Purchased Food or Beverage Products in the Last 12 Months Because of Specific Nutritional Content: By Household Income Bracket, 2009
• Table 7-34: Percent of Consumers Who Have Purchased Beverage Products in the Last 12 Months Because of Their Special Nutritional Benefits: By Household Income Bracket, 2009

African-Americans and Asian-Americans as Prime Consumers

• Table 7-35: 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: White Non-Hispanics, 2009
• Table 7-36: Percent of Consumers Who Have Purchased Food or Beverage Products in the Last 12 Months Because of Specific Nutritional Content: By Race/Ethnicity, 2009
• 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, 2009

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