19 May 2008 – Figures from Euromonitor show that sales of functional foods and drinks are expected to continue their strong growth over the next three years, tapping into the thriving vitamin and dietary supplement market, which itself is expected to grow by 18% over the 2007-2012 period.
An ageing population with rising disposable income and a growing awareness of healthy eating is expected to feed a boom for both the functional food and drink segment and the vitamin and supplement market.
The fortified food and beverage market was worth an estimated $97 billion globally in 2006, according to Euromonitor figures. The growing popularity of this lucrative sector has led to increasing competition and the need for companies to find the next big thing in terms of functional ingredients. They are expected to turn to the vitamin and dietary supplement market for inspiration.
The trend should therefore be towards the segmentation of the functional product market with the introduction of ingredients which target specific health conditions, their prevention or their treatment. Omega-3 and glucosamine are two such ingredients and products enriched with those are expected to be among the star products of 2008.
Omega-3 is already being used by the food and drink industry, in milks and cereals for example. Glucosamine, on the other hand, has so far been only marginally exploited by the food and drink industry, in spite of its proven arthritis-relieving effects and sales worth $1.8 billion in 2007, compared to $2 billion for fish oils.
The lucrative functional food and beverage market has attracted the interest of many companies, which have been both introducing functional products to the market and relaunching traditional products with a healthy twist.
Food and drink companies are also expected to take advantage of the growing interest for vitamins and supplements by specifically targeting customers who would prefer to supplement their diets in a more natural way than by popping pills.