All indications point to increasing market demand for functional and healthy foods as consumers continue to consider the health benefits of the foods they eat a high priority. In fact, market research shows that 79% of people in the United States are actually eating healthier—two-thirds of consumers bought a food or beverage in 2011 for health, 59% for nutritional benefits and 56% for specific dietary conditions, according to Catherine Adams Hutt, speaking during a SupplySide West 2012 education session, “New Lifestyles, Eating Patterns & Issues Offering Untapped Ops for Functional Foods."
To tap into the $140B healthy-foods market and the $41B functional-foods market, Adams Hutt discussed the trends that will influence the market, including specific dietary conditions, specific nutrients and specific market segments that are showing an upwards trajectory. She said the top three nutrients consumers are interested in are fiber, vitamin/minerals and calcium, with antioxidants, protein, omega-3s, probiotics and superfruits also registering positive increases.
The top three conditions consumers are looking to address with nutrition are reduction in cholesterol, digestive health and an improved immune system. Interest is still high in foods with benefits for joint/bone health, heart/circulatory health, blood pressure and eye/vision health. Those trends were generally reflected—though not precisely—in claims on new products introduced in the U.S., with digestive/gut health leading the pack, followed by energy/alertness, omega-3, vitamin/mineral-fortified and heart health.
One of the areas with high potential is snacking, with nutrition bars and granola achieving an 11% market increase. Nutrition bars fit the functional category quite well as consumers typically consume them because of their wellness benefits and associated reasons, such as weight control and protein consumption. In fact, sales of weight products, bar and otherwise, rose 43% in 2011.
Another important category highlighted was breakfast foods, where high-protein foods have reached “superstar" status. In this area, portability and products designed for kids are key, Adams Hutt said. Children’s products in general open up an array of opportunities to prevent diseases that will occur later in life.
While 36% of the U.S. population would rather get their nutrients from food or drink versus supplements, traditional fortified foods might be a harder sell than what consumers perceive as natural nutrients in foods. Still, consumers are still making an effort to consume traditional nutrients, especially calcium, vitamins C and D, omega-3s and fiber. Based on the supplement market, magnesium may also be an area with enhanced recognition.
Adams Hutt reviewed the scientific and regulatory status of a variety of ingredients and their health benefits. For example, she discussed flavonols and protein as two areas of heightened consumer interest. Flavonol research is pointing to circulatory-system benefits and protein's relation to muscle health, both areas of consumer concern.
In short, the message of the session was that market indicators and consumer demand can provide a path to successful product development, as long as the science backs up the claims and companies avoid current market pitfalls.
