Changing lifestyles drive functional food growth

Californian market researcher, Global Industry Analysts, predicts the functional food and beverage market will reach $109bn by 2010. In its report, Functional foods and drinks: a global strategic business report , the group outlines how beverages are in fact one of the fastest growing sectors in the overall beverage industry. The report corroborates a trend that analysts have been repeatedly identifying of late: health and wellness concerns have carried the functional category from the sidelines to the mainstream. According to Global Industry Analysts, the functional food and drinks market has been moving to the forefront thanks to innovative products. It cites products that support a variety of health applications such as maintaining bone, gut and heart health. That consumers are not willing to forgo the pleasures of taste - even for health - remains true, as has been revealed by past reports. This in turn also plugs innovation as manufacturers look to formulate the most functional, but also the tastiest, foods. Collectively, the US, Europe and Japan account for approximately 90 percent of global consumption of functional food and beverage. The US is the largest single domestic market for the category, according to the report, with an estimated $29bn in sales in 2007. Global Industry Analysts positions Europe and Japan as following closely behind at second and third respectively. The UK, France and Germany together represent over 65 percent of the European market - with Germany taking first place in terms of sales, predicted to be worth over $8bn in 2010 In developing regions, more disposable income and a growing willingness to pay more for healthy and convenient foods is a driving factor behind the growing popularity of functional foods and beverages. Accordingly, Asia and Latin America are among the fastest growing markets for functional foods, with estimated compound annual growth rates of between six and ten percent through to 2010. With sales at over $28bn in 2007, functional dairy products hold the strongest position in terms of market segments. As well, the functional beverages market is among the fastest growing with sales expected to reach close to US$34 billion by 2010. This category has been popular the world over, due to the fact beverages form a convenient and portable delivery system that seems to be favored by consumers. A growing niche sector identified by Global Industry Analysts, is that of organic functional foods. The market analyst profiles The Coca-Cola Company, General Mills, Groupe Danone, Kellogg's Company, Nestlé, PepsiCo, Unilever Group and Yakult Honsha in its report.

Changing lifestyles drive functional food growth

A new market report attributes higher incomes, lifestyle changes, growing health awareness, an aging population and a preference for convenience foods as driving the functional foods and drinks market.

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