functional food in europe presentation 270510...for over 50% of the functional food and beverage...

Functional Food in Europe

– A Dynamic Market

Presented by: Chris Brockman,

Market Intelligence Manager

Date: 27 May 2010

© 2010 Leatherhead Food Research Innovation | Nutrition | Regulatory | Safety | Knowledge www.leatherheadfood.com 2

Agenda

• The current state of the market & key market drivers

• Major growth areas & recent new product activity

• Challenges for the sector

• Future directions


Agenda






The global functional food & drinks market had a value of over US$80bn in 2009

0

5

10

15

20

25

30

35

USA

Japa

n

Euro

peAus

tralia

US$m

Global Functional Foods Market


Europe – Digestive Health Leads

• In Western Europe, products for digestive health account for over 50% of the functional food and beverage market

• Per capita consumption rates of digestive health products range from US$33 in Ireland to less than US$15 in Germany

• Probiotic dairy brands dominate

• In the UK, functional products account for a 58% share of the yoghurt market (the highest level in Europe)

• Danone UK sales: Actimel £114m, Activia £215m


Key Market Drivers

• Rising interest in the role of diet in health & optimisation ofpersonal health & wellbeing

• Obesity & high prevalence of diet related disease

• Ageing population• Elderly & middle-aged are the most likely buyers (growing in

size & disposable income)

• 20% of the European population is over the age of 65 years, a figure expected to increase to 30% by 2030

• Continued innovation


Healthy eating – Which claims interest consumers?

Source: Tate & Lyle consumer survey, July 2009

80% are not prepared to compromise on taste if the product is healthy

57% check ingredient lists

80% of European consumers check nutritional information on-pack

80% are prepared to spend more on specific claims, such as ‘improving cardiovascular health’ and ‘helps to control cholesterol’

Key Market Drivers – Interest in healthy eating


Continued Innovation

Functional Product Launches by Country, 2009

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200

400

600

800

1,000

1,200

1,400

USA

China

Japa

n

UK

Ger

man

y

Can

ada

Italy

Aus

tralia

Fran

ce

Spain

No. new products

Source: Mintel GNPD



Europe: Functional Product Launches by

Country, 2009

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50

100

150

200

250

300

350

UK

Ger

man

y

Italy

Fran

ceNethe

rland

s

Spain

Rus

sia

Aus

tria

Portug

al

Finlan

d

No. new products

Source: Mintel GNPD



Functional Product Launches by Product Sector,

2009

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200

400

600

800

1,000

1,200

1,400

1,600

Non-Alcoholic

Beverages

Healthcare

Dairy

Baby Food

Sugar & Gum

Confectionery

Bakery

Breakfast

Cereals

Snacks

Pet Food

Meals & Meal

Centers

No. new products

Global EuropeSource: Mintel GNPD



Europe: Functional Product Launches by Product

Sector, 2009

Non-Alcoholic

Beverages

20%

Sugar & Gum

Confectionery

6%

Bakery

5%

Breakfast Cereals

4%Snacks

4%

Pet Food

3%

Meals & Meal Centers

2%

Baby Food

8%

Dairy

26%

Healthcare

22%

Source: Mintel GNPD



Europe: Functional Product Launches by

Selected Claim

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100

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700

2007 2008 2009

No. new products

Digestive

Weight Control

Vitamin/Mineral Fortified

Immune health

Cardiovascular

Bone health

Brain health & nervoussystem

Beauty Benefit

Source: Mintel GNPD


Agenda






Probiotics, Prebiotics, Fibre

from dose delivery …To new applications

Digestive Health


Phytosterols & stanols, dairy peptides, oats & beta glucans, soya, omega 3

Heart Health


Growth Sectors

Fast growing areas from smaller bases:

• Enhanced mental performance (for children & the ageing population) & energy/mood control (more energy but also recent growth in relaxation products)

•Weight management (diet products to hunger management)

• Immunity (probiotics, antioxidants) - swine flue has heightened this

• Bone/joint health (an ageing population and increased focus on children’s bone health driving this)


Enhanced Mental PerformanceDHA, Zinc, Vit B, CoQ10, Ginkgo Biloba, Lecithin

Rama Idea! margarine with vitB1, alpha linoleicacid & DHA tosupport brain, nervous & immune systems.

Switz, 2010

St Ivel Utterly ButterlyOmega 3 Butter

Ireland, 2010

Nature's Plus Source of Life Gold Bar with vitB & C, acai, resveratrol, vit K2 & CoQ10.

UK, 2010

Wellness Memory Tea, blend of green tea & herb centella asiatica, to rejuvenate the brain & improve memory function

Czech Rep, 2010

Koyu Japanese Matcha Green Tea boosting 137 times the antioxidants of regular green tea bags & high levels of L-theanine to calm & focus the mind

UK, 2010


Energy & MoodNatural energy ingredients & extracts

Together Goji Natural Energy Mango & Passionfruit Drink with carnitine, CoQ10, ginseng, and liquorice.

UK, 2010

Fushi Organic Herbal Tea with chamomile flowers, valerian root, St. Johns wort, passion flowers and orange blossom.

UK, 2010

Lindt Chocolate for The Soul aromatherapy pralines with fruit, flower & plant extracts to suit particular moods, such as happiness, passion, tenderness and serenity.

Italy, 2009

Nutrend natural ‘active drink’ with aloe vera

Czech Rep, 2010

Schwarze Dose 28 Açaiflavoured energy drink with caffeine, guarana, herbs, CoQ10 and isomaltulose

Germany, 2010

Guaraná Antarctica

original Brazilian soft drink with

guarana extract

UK, 2010


Slimming SolutionsSatiety, fat metabolism, proprietary ingredients

Protein diet shake low in fat, calorie/sugar reduced and withL-carnitine and 20g high quality protein

Germany, 2010

Enhanced water with Garciniacambogia extract with hydroxycitricacid, as well as L-carnitine to accelerate metabolism

Russia, 2009

Skinny Cola with L- carnitine to assist in the breakdown of fatty acids into energy & zinc to boost metabolism

UK, 2009

NeuroTrimfunctional drink for appetite control (containing the LuraLeansatiety fibre)UK 2010

Yosa smoothieswith oats to promote satiety

Finland, 2009


Yoplait Safari yogurt and Fruit Puree with probiotic cultures to support the immune system of children

Hungary, 2010

Immunity Pro-prebiotics, antioxidants, vitamins

Vitamin Well Defence drink with vit C&E & green tea to support the immune system

Norway, 2010

Kaiku Emmi Actifyogurt drink with lactobacillus GG, folic acid & vitamin B6

Spain, 2010

Chiquita Just Fruit in a Bottle smoothies - Natural Vitamin C (acerola, guava & orange); Natural Antioxidants (blueberry, pomegranate, acai)

Germany, 2009


Bone/Joint HealthCalcium, Glucosamine, Chondroitin, Vit D

Danone Densia yoghurt with twice as much calcium as standard yoghurts to improve bone density

Spain, 2009

Danone Danaos with 50% RDA of calcium and vit D

Italy, 2010

Nestlé Resource SeniorActiv targeting the unique nutritional needs of the elderly with vit D & Calcium

Switz, 2010


Agenda






• European health claims regulation

• Meeting consumer needs

• Getting taste profile right

• Natural ingredient trend

• Economic climate

• Getting past the failures

Challenges


Agenda






Q.4 Respondent Profile

NB: Respondents allowed multiple answers so results will not add to 100%

Base: 64 respondents

Manufacture / Supply functional foods: 45%

Manufacture / Supply functional ingredients: 38%

Retail / Sell functional foods: 21%

Functional Food Survey


19%

29%

36%41%

48%

68%

77%

83%84%86%

98%

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20

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60

70

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90

100

Dairy -

yoghurts

Cereal Beverages

(excl. soft

drinks)

Other dairy Fats (e.g.

oils and

spreads)

Soft drinks Bakery Fruit Fish Confectionary Meat

Q.12 Importance of product categories in functional foods over the next 5 years




53%

60%

62%

65%

66%

68%

71%

75%

76%

82%

85%

0 10 20 30 40 50 60 70 80 90 100

Products to improve energy levels

Omega-3 enriched products

Memory - enhancing products

Fibre - enriched products

Prebiotic - enriched products

Calcium - enriched products

Antioxidant enriched products

Probiotic yoghurts

Phytosterol - enriched products

Vitamin enriched products

Fermented probiotic milk drinks

Q.13Types of functional food performing well over the next 5 years




Q.15 Anticipated penetration levels functional foods will achieve globally in the next 5 years


Less than 1%: 7%

1-5% penetration: 52%

6-10% penetration:

31%

11-15% penetration: 11%



28%

20%

45%

55%

69%74%74%

79%81%81%81%

87%92%

95%

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60

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90

100

Obesity Heart

Disease

Gut health High blood

pressure

Osteo -

porosis

Immune

System

Lack of

energy

Cancer Ageing /

beauty

Mood /

cognitive

performance

Bow el

function

Arthritis Neural tube

defects

Urinary tract

infections

Q.17 Influence of the following medical conditions / physiological systems on the direction of functional food development over the next 5 years




56%

66%69%

71%73%

77%77%79%

86%87%

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Essential fatty

acids

Natural energy

ingredients

Milk

components

Minerals Probiotics Prebiotics Phytosterols Antioxidant

vitamins

Other

Phytochemicals

Other vitamins

Q.18 Importance of the following classes of functional food ingredient to the development of functional foods over the next 5 years




Other Summary Thoughts

• Desire for simplicity in food, back to basic propositions, clean labels (use of word “simple” in product launches grown dramatically)

• Recent emphasis on moving to foods with inherent goodness (naturally rich in e.g. antioxidants)

• Consumer associations already formed for certain functional ingredients – may not be necessary to make claims (e.g. probiotics with gut & immune health, antioxidants with cancer prevention)

• Associations with many other natural ingredients and plant extracts to be exploited further (e.g. ginseng, camomile)

Thank you for your time

Chris Brockman

[email protected]

functional food in europe presentation 270510...for over 50% of the functional food and beverage...

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