Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads...
Transcript of Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads...
![Page 1: Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads › 2016 › 10 › Functional-Food… · like organic fruits & vegetables and](https://reader034.fdocuments.net/reader034/viewer/2022050715/5f0d79527e708231d43a88cf/html5/thumbnails/1.jpg)
Functional Foods: Trends,
Opportunities and Challenges
Ranjan Sharma PhD MBA
A Presentation made to the Department of Employment, Economic
Development and Innovation, Brisbane, Australia,
22 July 2010
![Page 2: Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads › 2016 › 10 › Functional-Food… · like organic fruits & vegetables and](https://reader034.fdocuments.net/reader034/viewer/2022050715/5f0d79527e708231d43a88cf/html5/thumbnails/2.jpg)
What do today’s and tomorrow’s consumers
want?
Products that deliver ethical
benefits
Products that are unique
Products that are healthy and
have functional health benefits
http://blog.euromonitor.com/2010/06/the-consumer-value-shift-in-packaged-foods.html
adapted from Euromonitor, 2010
![Page 3: Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads › 2016 › 10 › Functional-Food… · like organic fruits & vegetables and](https://reader034.fdocuments.net/reader034/viewer/2022050715/5f0d79527e708231d43a88cf/html5/thumbnails/3.jpg)
Healthy Foods
Healthy Foods
Natural Foods – free from artificial ingredients and
process-induced modifications
Organic Foods – independently certified
Functional Foods – having health benefits (with or without
health claims)
Lesser Evil Foods – low- (sugar, salt, fat), diet, pesticide-free
![Page 4: Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads › 2016 › 10 › Functional-Food… · like organic fruits & vegetables and](https://reader034.fdocuments.net/reader034/viewer/2022050715/5f0d79527e708231d43a88cf/html5/thumbnails/4.jpg)
Functional Foods – a definition
No universally accepted definition
Foods and beverages that contain either naturally or
via processing or fortification, sufficient amounts of
physiologically-functional components and have
potential health benefits
![Page 5: Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads › 2016 › 10 › Functional-Food… · like organic fruits & vegetables and](https://reader034.fdocuments.net/reader034/viewer/2022050715/5f0d79527e708231d43a88cf/html5/thumbnails/5.jpg)
Functional and healthy foods market trends
Natural and organic foods will grow the fastest of any healthy foods categories in the next eight years—with growth of organic reaching nearly 10% in 2012—as product categories like organic fruits & vegetables and natural meat, fish & poultry sidle into the mainstream.
With a forecast compound growth rate of nearly 9%, organic foods is expected to be the biggest competitor in healthy foods for the future. Compound annual growth for the total healthy foods industry should hover above 5% for the next eight years, just outpacing the growth of its largest categories, functional and lesser-evil foods.
Lesser-evil foods will lose market share to the natural and organic categories
Functional foods should retain about a quarter of healthy food sales over the next eight years
http://nutritionbusinessjournal.com/healthy-foods/market-research/2010-Healthy-Foods-
Report/
NBJ, 2010
![Page 6: Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads › 2016 › 10 › Functional-Food… · like organic fruits & vegetables and](https://reader034.fdocuments.net/reader034/viewer/2022050715/5f0d79527e708231d43a88cf/html5/thumbnails/6.jpg)
Global Health & Wellness market, 2008
Global health and wellness market
US$ 570 billion
Global functional foods market
US$ 152 billion
Australian functional foods market
A$ 2.7 billion
Euromonitor, 2009
![Page 7: Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads › 2016 › 10 › Functional-Food… · like organic fruits & vegetables and](https://reader034.fdocuments.net/reader034/viewer/2022050715/5f0d79527e708231d43a88cf/html5/thumbnails/7.jpg)
Healthy foods – US, 2009
Healthy Foods, US –US$ 143b
Nutrition Business Journal, 2010
http://lib.store.yahoo.net/lib/nbj/10hfreptoc.pdf
![Page 8: Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads › 2016 › 10 › Functional-Food… · like organic fruits & vegetables and](https://reader034.fdocuments.net/reader034/viewer/2022050715/5f0d79527e708231d43a88cf/html5/thumbnails/8.jpg)
US functional foods and drinks
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Bone
health
Heart
health
Gut health Energy Other
Millio
n $
US Functional foods & drinks
2004
2009
http://www.foodprocessing.com/articles/2006/250.html
![Page 9: Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads › 2016 › 10 › Functional-Food… · like organic fruits & vegetables and](https://reader034.fdocuments.net/reader034/viewer/2022050715/5f0d79527e708231d43a88cf/html5/thumbnails/9.jpg)
US organic foods market, 2009
Fruits & Vegetables
38%
Breads & Grains11%
Meat, Poultry & Fish2%
Beverages13%
Snack Foods5%
Packaged Foods14%
Condiments2% Dairy
15%
http://www.ota.com/pics/documents/2010OrganicIndustrySurveySummary.pdf
OTA, 2010
Market size – US$ 37 billion
![Page 10: Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads › 2016 › 10 › Functional-Food… · like organic fruits & vegetables and](https://reader034.fdocuments.net/reader034/viewer/2022050715/5f0d79527e708231d43a88cf/html5/thumbnails/10.jpg)
US organic foods market growth
![Page 11: Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads › 2016 › 10 › Functional-Food… · like organic fruits & vegetables and](https://reader034.fdocuments.net/reader034/viewer/2022050715/5f0d79527e708231d43a88cf/html5/thumbnails/11.jpg)
Functional foods in Japan
Digestive health
59%
Bone health
2%
Blood
pressure
2%
Cholesterol
4%
Blood
sugar
4%
Weight
management
14%
Teeth health
15%
Functional Foods in Japan, 2007 - $16.4 b
Source: Market NZ
![Page 12: Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads › 2016 › 10 › Functional-Food… · like organic fruits & vegetables and](https://reader034.fdocuments.net/reader034/viewer/2022050715/5f0d79527e708231d43a88cf/html5/thumbnails/12.jpg)
Functional Foods - Australia
0
0.5
1
1.5
2
2.5
3
2003 2004 2005 2006 2007
Sale
s ($
)Functional Foods Sales - Australia
Euromonitor, 2009
![Page 13: Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads › 2016 › 10 › Functional-Food… · like organic fruits & vegetables and](https://reader034.fdocuments.net/reader034/viewer/2022050715/5f0d79527e708231d43a88cf/html5/thumbnails/13.jpg)
Functional Foods - Australia
Digestive
health
6%
General
health and
wellbeing
57%
Others
37%
Functional Foods - Australia, 2007 – $ 2.7 b
Digestive health
General health and
wellbeing
Others
Euromonitor, 2009
![Page 14: Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads › 2016 › 10 › Functional-Food… · like organic fruits & vegetables and](https://reader034.fdocuments.net/reader034/viewer/2022050715/5f0d79527e708231d43a88cf/html5/thumbnails/14.jpg)
Digestive health - Australia
Datamonitor, 2009
![Page 15: Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads › 2016 › 10 › Functional-Food… · like organic fruits & vegetables and](https://reader034.fdocuments.net/reader034/viewer/2022050715/5f0d79527e708231d43a88cf/html5/thumbnails/15.jpg)
Market trends in functional foods
Omega-3
Probiotics
Whole grain & fibre
Phytosterol
Functional waters
Calorie burning foods
Superfruits
Beauty foods
Concentrated energy shots
![Page 16: Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads › 2016 › 10 › Functional-Food… · like organic fruits & vegetables and](https://reader034.fdocuments.net/reader034/viewer/2022050715/5f0d79527e708231d43a88cf/html5/thumbnails/16.jpg)
Opportunities and challenges
Opportunities
and Drivers Challenges
![Page 17: Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads › 2016 › 10 › Functional-Food… · like organic fruits & vegetables and](https://reader034.fdocuments.net/reader034/viewer/2022050715/5f0d79527e708231d43a88cf/html5/thumbnails/17.jpg)
Market
Success !!1 2 3 4
Regulations &
labelling
Consumers awareness
& acceptance
Product performance
flavour and taste
Market
competition
![Page 18: Trends, Opportunities and Challenges for Functional Foodsozscientific.com › wp-content › uploads › 2016 › 10 › Functional-Food… · like organic fruits & vegetables and](https://reader034.fdocuments.net/reader034/viewer/2022050715/5f0d79527e708231d43a88cf/html5/thumbnails/18.jpg)
Source: Functional Foods Weekly
http://www.functionalfoods.com.au
Market intelligence, innovations and trends in
functional foods and nutraceuticals
To Subscribe, email: [email protected]