functional foods ranjan sharma july22 2010
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Functional foods market trendsTRANSCRIPT
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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
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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
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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 withouthealth claims)
Lesser Evil Foods – low- (sugar, salt, fat), diet, pesticide-free
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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
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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
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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
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Healthy foods – US, 2009 Healthy Foods, US –US$ 143b
Nutrition Business Journal, 2010
http://lib.store.yahoo.net/lib/nbj/10hfreptoc.pdf
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US functional foods and drinks
Bone health
Heart health
Gut health
Energy Other0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
US Functional foods & drinks
20042009
Million
$
http://www.foodprocessing.com/articles/2006/250.html
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US organic foods market, 2009
Fruits & Vegetables38%
Breads & Grains11%
Meat, Poultry & Fish2%
Beverages13%
Snack Foods
5%
Packaged Foods14%
Condiments
2%
Dairy15%
http://www.ota.com/pics/documents/2010OrganicIndustrySurveySummary.pdfOTA, 2010
Market size – US$ 37 billion
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US organic foods market growth
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Functional foods in Japan
Digestive health59%
Bone health
2%
Blood pres-sure2%
Choles-terol4%
Blood sugar4%
Weight man-age-ment14%
Teeth health15%
Functional Foods in Japan, 2007 - $16.4 b
Source: Market NZ
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Functional Foods - Australia
2003 2004 2005 2006 20070
0.5
1
1.5
2
2.5
3
Functional Foods Sales - Australia
Sale
s (
$)
Euromonitor, 2009
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Functional Foods - Australia
Digestive health
6%
General health
and wellbe-
ing57%
Others36%
Functional Foods - Australia, 2007 – $ 2.7 b
Digestive healthGeneral health and wellbeingOthers
Euromonitor, 2009
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Digestive health - Australia
Datamonitor, 2009
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Market trends in functional foods Omega-3 Probiotics Whole grain & fibre Phytosterol Functional waters Calorie burning foods Superfruits Beauty foods Concentrated energy shots
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Opportunities and challenges
Opportunities and Drivers Challenges
Market Competition
Formulations & Consumers
Regulations & Labelling
Obesity & Chronic Diseases
Population Demographics, Consumer trends
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CURRENT CHALLENGES
FUTURE CHALLENGES
MarketSuccess !!
1 2 3 4
Regulations & labelling
Consumers awareness& acceptance
Product performance flavour and taste
Marketcompetition
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Source: Functional Foods Weekly
http://www.functionalfoods.com.au
Market intelligence, innovations and trends in functional foods and nutraceuticals
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