This month industry expert Julian Mellentin provides a captivating view of the functional foods market a year after the financial crisis heard ‘round the world took hold. It seems functional foods are not only surviving but thriving in these difficult times. Mr. Mellentin says a down economy didn’t result in the“calamity for the nutrition business” that some may have expected—in fact, for many businesses it was quite the contrary. From every edge of the product spectrum, foods that are inherently healthy and/or contain added health ingredients have been growing at an impressive clip. Categories such as probiotics and digestive health continue to hog most of the spotlight, while some of the more unexpected growth areas such as coconut water—the palm tree’s version of a sports drink—are attracting attention from some major beverage players. Unfortunately, other slow-to-move markets like beauty foods may just be on their way out, as some of the early innovators exit the business.

The cornerstone of functional food development lies in offering benefits consumers can not only see or feel, but can see or feel quickly, Mr. Mellentin says. This is precisely why digestive health, weight management and energy are the categories that reign supreme. And while probiotics have been welcomed into the nutritional products fold, especially in the digestive health arena, some critics are beginning to question their efficacy when used in unfamiliar product formats (e.g., bars, cereals and cheese). Mr. Mellentin is right. Let’s make sure consumers get used to the idea of friendly bacteria before we put them in anything and everything.

For some companies, the seeds of failure are planted when they choose the audience for their products. Mr. Mellentin reminds us that focusing on consumers who care about health is the first step in the right direction in terms of developing functional foods. Only then can companies narrow their focus to consumers looking for specific health benefits (e.g., Baby Boomers and bone health products). Going after the typical mainstream consumer who doesn’t care about health in the first place will most certainly end in failure.

And let’s not forget about heart health. According to Casey Adams, the author of this issue’s heart health article, heart healthy foods and drinks will hit nearly $8 billion in Europe and the U.S. by 2010, representing more than 6% growth between 2006 and 2010. Heart disease prevention has become a ripe opportunity for nutraceuticals. There is a lot of money being invested in the research and development of these ingredients and the role they play in controlling various heart disease risk factors (e.g., blood pressure, inflammation and cholesterol). As Mr. Adams points out, now’s the time to take a chance in this market, especially since heart disease is the No. 1 killer of Americans and will be for at least the next decade.These are indeed interesting times for functional foods. Who would have thought a year ago that coconut water would even be on the radar for companies like Coca-Cola and Pepsi? Then again, who would have thought that one of the most successful marketing messages in functional foods would include the words “helps improve digestive transit time”? Recent times have proven that anything can happen in the functional foods market. The good news is the category is alive and well.

Rebecca Wright
Editor
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