A MARKET ANALYS
...n 1999 ( NBJ, 2001). These foods have demonstrated physiological benefits, and/or reduce the risk of chronic disease beyond basic nutritional functions. t.ex. Products aimed at lowering blood cholesterol levels and cancer risk as well as weight loss, have characterized the U.S. market. The use of botanicals in functional foods is much more popular than in Europe or Japan. The interest in, and market growth of, functional foods is also being facilitated by dietary concerns of an aging population that have moved from preventing deficiency diseases to longer-term prevention of chronic disease. Consumers are becoming more aware of the relationship between diet and disease and are increasingly more interested in “natural” rather than “synthetic” solutions. A driving force behind this opportunity is an increase in nutritional knowledge and the expectations of consumers that food should provide health benefits beyond simple nutrition. A key characteristic of the U.S. functional food market is a large focus on disease and its prevention. The Japanese Ministry of Health and Welfare has approved 12 health claims in seven health benefit categories. As of December 2001, 288 foods were approved under the FOSHU system. FOSHU food products represent 63% of the $5.4 billion Japanese functional food market and 37% of the health and nutrition market. Within the FOSHU category, the market is primarily comprised of gut health products accounting for over 80% of the market. Functional pre and probiotic drinks and yogurts dominate market. Approximately 20% of functional foods contain lactic acid bacteria cultures, oligosaccharides, calcium, non-cariogenic sweeteners, polyphenols, phytochemicals, chitosan, beta-carotene, green tea catechins, DHA, iron, peptides and amino acids. Of interest more than 2,000 functional foods and drinks have been launched since the late '80s Natural Foods, Natural Personal Care Natural & Organic Foods segment Natural Personal Care segment Branschens respektive segments storlek och utveckling: The U.S. is the largest importer of Canadian NHP, nutraceuticals and functional foods. In the U.S., the sale of nutrition products consisting of natural health products (including dietary supplements and herbs), natural and organic foods, functional foods and natural personal care products, generated $53 billion in consumer sales in 2001 (Nutrition Business Journal – NBJ, 2001). $53 billion in 2001 consumer sales $17.7 billions in supplement sales The U.S. herbal industry generated approximately $4 billion in sales in 2001. These products are sold primarily through multi-level marketing and retail outlets including natural health food and mass market stores. $4 billion in Herbal Sales Consumer sales growth in 1999 was approximately 8% or roughly twice that of the U.S. economy (NBJ, 2000). An approximate 10% annual growth rate over the next three years is anticipated for dietary supplements, functional foods and nutraceuticals with the greatest gains in mass-market sales rather than health food stores. In comparison, the $466 billion conventional food business is growing at a yearly rate of only 2-3% (NBJ, 1998). According to 2001 statistics published by the NBJ (2002), the supplement market generated $17.6 billion in the U.S. while functional foods amounted to about $18.5 billion. NBJ uses a broad definition for functional foods, including “any product with added ingredients or fortification specifically for health or performance purposes”. This category includes “designer foods” ranging from cholesterol-lowering spreads such as Benecol and Take Control to ready-to-drink teas with herbs, “performance” foods like sports drinks and bars, hypoallergenic baby foods and soymilk and “enriched” foods like cereal, milk and yogurt. As indicated in the chart below, sports nutritionals, meal and specialty supplements, natural and organic foods and functional foods witnessed the highest rates of growth in the U.S. industry for the year 2001. Growth in US Nutrition Industry Sales by Channel: 2001 Source: Nutrition Business Journal's Functional Foods Report 2002 The Internet is the fastest growing outlet for these products, followed by direct sales through practitioners and mail order. Functional Foods Functional foods represent one of the fastest growing markets in the developed world. The market size for functional foods worldwide was approximately $55.5 billion in 2001 and represents a growing segment of the nutrition industry. The U.S. is the largest importer of Canadian NHP, nutraceuticals and functional foods. In the U.S., the sale of nutrition products consisting of natural health products (including dietary supplements and herbs), natural and organic foods, functional foods and natural personal care products, generated $53 billion in consumer sales ...