Reportlinker.com

Reportlinker.com

March 18, 2008 17:04 ET

Learn About the Functional Food, Drinks & Ingredients: Consumer Attitudes & Trends

LONDON, UNITED KINGDOM--(Marketwire - March 18, 2008) -

Reportlinker.com announces that a new market research report related to the Sports - Diet - Nutrition industry is available in its catalogue.

Functional Food, Drinks & Ingredients: Consumer Attitudes & Trends

Consumers have moved beyond choosing food and drinks simply to maintain everyday health. They are now seeking to optimize performance and reduce the risk, or delay the onset of diseases with functional food and drinks. This report concludes that the market drivers for functional product growth will have more influence than the inhibitors, making it a highly important area for investment.

Extensive sizing of functional food and drink markets by region, country, category and targeted health benefit. In-depth qualitative and quantitative analysis of consumer drivers and inhibitors shaping market developments. Showcases best practice product and market innovation highlighting the most effective way to respond to changing consumer attitudes. More detailed geographic, product and consumer insight coverage.

Functional food and beverages are commonly associated with senior citizens trying to maintain vitality and reduce the risk of disease. However, lifestyle changes are resulting in younger consumers purchasing functional foods with greater regularity, in order to combat the myriad of health problems faced on a daily basis, such as fatigue.

Overcoming consumer skepticism about a wide range of issues related to functional products and their purported benefits will be important in gaining long-term mass acceptance. Industry players should also be wary of pushing a food or beverage product's functionality too far.

Sales of functional products are rising across all food and drink categories in the US and Europe alike, and growth rates continue to outperform growth in the food and drink categories overall. On a regional basis, the Asia-Pacific functional food and drink market will continue to outperform the US market over the next five years.

Gain a detailed understanding of the current attitudinal and behavioral drivers and inhibitors across three key geographies. Recognize the key growth areas in the functional food and beverage markets and how to capitalize most effectively. Use the latest evidence to align product portfolios and marketing strategies with consumer attitudes and behaviors.

OVERVIEW 1

Catalyst 1

Summary 1

Table of Contents 2

Table of figures 3

Table of tables 4

THE FUTURE DECODED 5

Introduction: The functional food and beverage market is entering a critical era 5

Defining functional products: functional food and beverages contain specific physiologically active components that provide increased health benefits beyond basic nutritional functions 10

TREND: Consumers are more aware of food and dietary issues and are monitoring and adjusting what they eat and drink accordingly 11

Consumers have increasingly pro-active dispositions towards improving their general health 12

Consumers are actively looking to improve their health through diet on a global scale 12

Consumers are paying more attention to nutritional details and want to know more about functional products 12

Key takeouts and implications: health and nutrition is set to stay at the top of the agenda for the years ahead, creating a real incentive to invest in functional food and beverages 14

TREND: Aging populations are showing a strong concern and desire to improve their personal health 14

Aging is the dominant demographic trend across Europe, North America and much of Asia 14

Older consumers are making more concerted, active attempts to eat and drink in a healthier manner 16

Functional foods and drinks that target senior consumers are growing in popularity because they are a more vulnerable demographic 17

Key takeouts and implications: an aging society exacerbates the need for preventative or treatment benefits from food and beverage products 18

TREND: Consumers are looking for functional antidotes to both short-term and long-term physical and emotional health problems 19

The prevalence of long-term illnesses is increasing across Europe, North America and Asia, with hypertension being the most common problem 19

Diagnosis rates of heart-related health problems are growing in Europe and the US 21

An aging society is leading to more bone health problems being reported, most notably osteoporosis 22

The number of consumers suffering from gut health problems is relatively low, but growing rapidly 23

Individuals are increasingly reporting day-to-day emotional and physical health problems, such as fatigue and sleep deprivation 24

Job stress and difficulties in achieving a work/life balance contribute to sleep deprivation and fatigue 27

Continued increases in both adult and childhood obesity are paving the way for new satiety enhancing functional food and beverages 29

Busier lifestyles means that it is harder to meet nutritional requirements using traditional food and drinks, while less developed countries still have high nutritional deficiencies 30

People are even looking for 'easy' ways to make themselves more beautiful with beauty foods 31

Key takeouts and implications: despite long-term health problems becoming more apparent, consumers want solutions with more short-term, day-to-day relevancy 32

TREND: Consumers are spending more on functional food and drinks across Asia, Europe and the US 33

The US functional food market continues to witness impressive growth rates 33

The value of the European functional food and drink market is significantly lower than the US 34

Sales of functional food and drink products in Asia are being driven by increasing levels of disposable income and the long-established presence of such products 37

Beverages with health boosting credentials are especially popular in Japan, particularly energy drinks 39

Key takeouts and implications: functional food and beverages will continue to be driven by strong sales in the US and Asia-Pacific, while the European market is yet to reach anything like full potential 39

INSIGHT: Consumers are overly optimistic about their diet and are making more concerted efforts to consume a balanced and varied diet 40

A sizeable majority of consumers consider themselves to be in good health and perceive their diet relatively positively 40

Diversity and balance in diet is growing in importance, especially as people suffer from 'dieting-fatigue' 41

Key takeouts and implications: consumers suffer from an 'optimistic bias' with regard to their diets and are looking to embrace a more balanced and nutritious diet 42

INSIGHT: Consumers are skeptical about the sensory appeal of functional food and drinks 43

Consumers are most influenced by the taste, enjoyment and quality of the food and drink they consume 43

Healthy food is often perceived as bland and uninspiring 44

Key takeouts and implications: despite consumers making active attempts to eat healthier, they will not compromise sensory benefits for nutritional goodness 45

INSIGHT: Consumer awareness and understanding of functional food and drink claims and benefits is limited 46

Consumers have an increasing awareness about which food categories are good for them, without knowing a huge amount about the actual healthy component 46

Americans are increasingly aware of specific health benefits associated with various functional foods 46

Asia has a long history of consumption of foods for specific health benefits which helps boost awareness 49

Europeans exhibit a similar level of awareness and understanding of functional products as Americans 49

The impact of socio-demographics on consumer awareness towards functional food and beverages is inconclusive 50

Motivations for buying functional foods reflect a lack of knowledge about the specific health benefits of certain ingredients 51

Key takeouts and implications: awareness of functional products is increasing, but there is a general lack of understanding about the more detailed benefits derived from ingredients/food components 52

INSIGHT: Consumers have a lack of trust in food and drink manufacturers and in functional products more specifically 52

Consumers are skeptical about pharmaceuticals which may impact long-term adoption of functional products 53

Consumers find health claims confusing and contradictory 53

BUT, consumers are beginning to recognize the role that certain foods or food components play in reducing the risk of certain diseases 56

The credibility of functional claims is enhanced in certain scenarios 57

Consumers are skeptical about the price of functional food and drink 59

Consumers are showing a distrust towards food and drink with artificially inserted ingredients 60

Key takeouts and implications: overcoming consumer skepticism about a wide range of issues related to functional products and their purported benefits will be important in gaining long-term mass acceptance 62

INSIGHT: Natural ingredients are becoming a more important feature of functional products 63

New functional products released are touting the benefit of 'natural' health-boosting ingredients 63

Probiotics promoting general wellness are being released with greater frequency 64

New functional groceries in Asia-Pacific are commonly touted as being high in vitamins 65

New functional products in the US are reflective of consumer desire for health and convenience 66

New functional products in Europe continue to be high in vitamins and calcium 67

Key takeouts and implications: natural functional ingredients are becoming more popular 68

INSIGHT: Consumers of all ages are driving sales in the functional food and drink market, albeit for differing reasons 68

Parents are starting to take greater responsibility for the improvement of child health levels 68

The lifestyles of young adults are becoming increasingly pressurized 70

Younger workers are seeking out products that provide a quick-fix energy boost 71

Older consumers are still an important demographic group for functional food and beverage manufacturers 71

There are significant differences in the attitudes of senior citizens 71

Women, married couples and highly educated consumers are more likely to buy functional foods 72

Key takeouts and implications: although older consumers remain an important demographic group for the functional food and drink market, sales are being driven by a younger audience 73

Conclusions: the market drivers for functional products will have more influence than the inhibitors making it a highly important category for investment 73

ACTION POINTS 75

ACTION: Develop a broad range of products offering antidotes to the myriad of problems consumers face 75

Reassure postmenopausal women about the benefits of functional foods 76

Respond to the growing interest in mental wellbeing 77

Educate consumers about the danger of gut health problems and look to eradicate the embarrassment surrounding gut health more generally 78

Release products that help consumers sleep better, and prevent fatigue 79

Launch satiety-enhancing products to help health-conscious consumers suppress hunger 80

Promote the concept of 'holistic beauty' with the development of functional oral beauty formulations 81

ACTION: Align brands with the softer image of natural 'wholesomeness', rather than function and science 82

Avoid using scientific jargon on packaging and other above-the-line communications 82

Create an image of natural 'wholesomeness' to justify a premium price 83

ACTION: Use Productscan to track innovative functional products emanating from Asia 84

Embrace 'personalized nutrition' by aligning products with the requirements and needs of specific target audiences 85

Recognize and track the growing array of functional products from 'unconventional' categories 85

Promote hedonistic variables of functional products over and above health benefits 86

ACTION: Promote functional foods in a credible and honest manner 86

Promote functional products as an 'every little helps' option rather than a 'magic bullet' solution 88

Persuade consumers to use functional products regularly 88

Use websites and information books to explain the science behind functional products 88

Use independent experts as knowledge and information transmitters 88

Obtain and prominently display backing from an influential body 89

APPENDIX 90

Supplementary Data 90

Definitions 91

Methodology 92

Further reading and references 92

Ask the analyst 93

Datamonitor consulting 94

Disclaimer 94

List of Tables

Table 1: Consumer survey: the extent to which European and US consumers used nutritional information on product packaging to help make food and drink choices, by country, 2006 13

Table 2: The number of consumers aged 55 and over, by region, 2002-2012 16

Table 3: Consumer survey: the propensity of European and US shoppers who have taken active steps to eat healthier in the last twelve months 17

Table 4: Consumer survey: the propensity of European citizens undergoing a long-term medical treatment 21

Table 5: Consumers suffering from heart health problems (millions), Europe and US, 2002-2012 22

Table 6: Consumers suffering from bone health problems (millions), Europe and US, 2002-2012 23

Table 7: Consumers suffering from gut health problems (millions), Europe and US, 2002-2012 24

Table 8: Consumer survey: the extent to which Europeans feel they have 'lots of energy' 26

Table 9: Consumer survey: the propensity of European and US shoppers to supplement their diet's with vitamin, mineral or other dietary supplements in the last twelve months 31

Table 10: Overall and per capita US functional food and drink market value (US$ millions and US$), by product category, 2002-2012 34

Table 11: Europe functional food and drink market value (US$ millions), by country, 2002-2012 36

Table 12: European functional food and drink, spend per person, by country (US$), 2002-2012 36

Table 13: Europe functional food and drink market value (US$ millions), by product category, 2002-2012 37

Table 14: Asia-Pacific functional food and drink market (US $ millions), by country, 2002-2012 38

Table 15: Asia-Pacific functional food and drink market, spend per person (US$), 2002-2012 38

Table 16: Asia-Pacific energy drinks market value (US$ millions), by country, 2002-2012 39

Table 17: Consumer survey: US shopper's awareness and consumption of nutrients that have health boosting credentials 48

Table 18: The level of trust consumers have in various claims made by packaged goods manufacturers, by country, 2004 55

Table 19: Consumer survey: the propensity of European and US shoppers who have taken active steps to reduce their stress levels in the last twelve months 70

Table 20: US functional food and drink market value (US$ millions), by claimed health benefit, 2002-2012 90

Table 21: European functional food and drink market value (US$ millions), by claimed health benefit, 2002-2012 90

Table 22: Asia-Pacific functional food and drink market value (US$ millions), by claimed health benefit, 2002-2012 90

Table 23: Definition of disease type covered 91

List of Figures

Figure 1: The functional food and drink market is being driven by a broad range of drivers and inhibitors 10

Figure 2: A nutritional continuum helps pinpoint the role of functional food and drinks 11

Figure 3: The proportion of consumers aged 55 and above is increasing across Europe, Asia and the US 15

Figure 4: Functional food manufacturers are offering solutions to the problems facing aging populations 18

Figure 5: Hypertension is the most common long-term illness in the US 20

Figure 6: The majority of individuals in the Asia-Pacific region struggle to get enough sleep 25

Figure 7: US consumers are more concerned about day-to-day health problems 27

Figure 8: With so many consumers seemingly overwhelmed by their daily responsibilities, they are looking for ways to slow down in order to improve balance and vitality 29

Figure 9: Consumers increasingly recognize the importance of a balanced, varied diet and focus on inclusion rather than exclusion of nutrition 42

Figure 10: Despite the perceived health benefits, consumers will not buy functional foods if they do not like the taste 45

Figure 11: Consumers are unaware of specific types of antioxidants 47

Figure 12: Over 80% of US consumers purchase, or are interested in purchasing functional foods 51

Figure 13: Pharmaceuticals are less trusted than consumer packaged goods, a fact that may inhibit the market potential of functional food and beverages 53

Figure 14: Consumers are skeptical about the perceived health benefits of functional foods 55

Figure 15: Consumers believe functional foods improve heart health 57

Figure 16: Professional medical endorsement is an important pre-condition to Europeans trusting functional food and beverage claims 58

Figure 17: Nutritional consultants and medical doctors are the most trusted sources of information when it comes to the health claims associated with functional products 59

Figure 18: More fresh content is being incorporated into diets while processed options are being rejected in Europe and the US 61

Figure 19: Higher educated consumers are making the most effort to consume more organic products 62

Figure 20: Functional products in Asia tend to be high in vitamins 65

Figure 21: Products that are both healthy and convenient are popular in the US 66

Figure 22: New functional products in Europe continue to be high in vitamins and calcium 67

Figure 23: Developing functional food and beverage solutions specifically for children represents key innovation opportunity 70

Figure 24: Effective marketing is required to capture the interests of consumers with bone health problems 76

Figure 25: Recent food and beverage innovations reflect the growing demand for solutions that improve mental health/performance 78

Figure 26: New functional products are targeting sleep-deprived consumers globally 79

Figure 27: Energy-boosting products also have to be tasty and convenient 80

Figure 28: Satiety-orientated products can help prevent unhealthy snacking 81

Figure 29: Manufacturers are responding to the notion that inner health equals outer beauty 82

Figure 30: Marketing material to support functional foods should be easy to understand 83

Figure 31: Manufacturers are using ingredients that are both natural and healthy with greater regularity, especially in functional formulations 84

Figure 32: The increasing specificity of product formulation against age and gender requirements is symptomatic of a trend towards 'personalized nutrition' 85

Figure 33: Functional food and drink manufacturers are emphasizing 'great taste' 86

Figure 34: Consumer watchdogs are encouraging shoppers to be scrupulous about their purchases of functional food and drinks 87

To order this report:

Functional Food, Drinks & Ingredients: Consumer Attitudes & Trends

More market research reports here

Contact Information