Romance

Strategy and growth

Leveraging growth in the emerging functional foods industry:

Trends and market opportunities

Table of contents

The heart of the matter

2

Opportunities in the dynamic, fast-growing functional foods market

An in-depth discussion

4

Competitive landscape, consumer trends and health science advances shaping the market

Beyond nutrition: initiatives in functional foods Industry dynamics Key categories and emerging products Growth drivers and success factors Healthcare trends and potential impact 6 7 9 10 11

What this means for your business

12

A successful investment strategy involves filtering real opportunities from the flurry of trends

Identifying opportunities: market entry strategies 14

August 2009

The heart of the matter

Opportunities in the dynamic, fast-growing functional foods market

2

Functional Foods

Foods fortified with nutritional and disease-preventing qualities are invigorating the US food industry. Health-conscious consumers are driving the demand for products that aim to promote better health, increase longevity and prevent the onset of chronic diseases. Known as “functional foods,” these products include essential nutrients that often go beyond the initial purpose of fostering normal growth and development. These supplements—often called nutraceuticals—are derived from natural foods and can be added to other foods to impart specific health benefits. Advances in food and medical science as well as changing consumer demand and demographics are fueling growth in this market. Its significant potential is likely to attract further investment by food and food technology companies. Moreover, the industry is wellpositioned to respond to emerging healthcare trends, including personalized medicine and greater incentives to reduce medical costs. Careful consideration of the competitive landscape and consumer dynamics will help prospective investors filter attractive strategic...