A new report released by Pricewaterhouse Coopers shows that the U.S. functional foods market experienced sales revenue of $27 billion in 2007 and is expected to grow 8.5–20% each year. This is ahead of the overall industry, where growth is estimated at 1–4% per year. With between $20 billion and $30 billion in sales a year, functional foods comprise about 5% of the overall U.S. food market. Advances in nutrition science and food manufacturing are now moving the industry from identifying and correcting nutritional deficiencies toward creating foods that promote optimal health and wellness as well as reduce the risk of chronic disease. Changing demographics, in particular the aging baby boomer population, are helping to set the foundation for future growth. Healthcare trends, including pharmaceutical investment and research into diseases and chronic conditions that are rapidly gaining greater significance, are a further source for potential growth.
Highlights from this PwC publication:
Growth drivers: Consumers increasingly want to achieve health and nutritional benefits with convenience, and without the need to change behaviors or affinities to foods they regularly enjoy. New technologies are enabling the addition of nutrients to food without altering the way consumers “experience” them.
Key categories: The functional foods market can be segmented by food type, or by health benefit. Currently, soft drinks and dairy products dominate by food type, while energy ranks highest by health benefit. Consumer demand for particular functional food benefits may spur growth in other categories.
Download the report "Leveraging growth the in emerging functional food industry"
Highlights from this PwC publication:
Growth drivers: Consumers increasingly want to achieve health and nutritional benefits with convenience, and without the need to change behaviors or affinities to foods they regularly enjoy. New technologies are enabling the addition of nutrients to food without altering the way consumers “experience” them.
Key categories: The functional foods market can be segmented by food type, or by health benefit. Currently, soft drinks and dairy products dominate by food type, while energy ranks highest by health benefit. Consumer demand for particular functional food benefits may spur growth in other categories.
Download the report "Leveraging growth the in emerging functional food industry"
