Functional Foods and Beverages

SUMMARY

OBJECTIVES AND PURPOSE OF THIS REPORT

Functional foods are defined as any food or food component that may provide health benefits beyond basic nutrition. These types of foods go beyond meeting the minimum daily nutritional requirements of an individual, as they may reduce the risk of disease or promote good health. Functional foods offer health-promoting ingredients or natural components that have been found to have potential benefits in the body.

Consumers are increasingly concerned about debilitating illnesses such as cancer, high cholesterol, heart disease, and osteoporosis. At the same time, many consumers are reluctant to rely only on prescription medications to treat or prevent these illnesses, so they are increasingly examining the link between diet and health. In response, scientists in the food industry are busily conducting research to uncover the health benefits of certain food ingredients like calcium, soy, antioxidants, plant sterols, and herbs. As their research demonstrates links between these ingredients and better health, food companies are petitioning the Food & Drug Administration (FDA) to permit health claims on the labels of foods that contain these beneficial, functional ingredients. The combination of research with positive results, an increasing number of permissible health claims on functional food packages, and the media attention to the link between diet and health concerning functional ingredients and disease preventionhas spurred growth in the functional food industry that surpasses the growth rate of the overall food industry.

The functional food industry can be broken down into five major areas of functional foods, including: functional beverages and teas, fortified cereals and breads, soyfoods, functional snacks and candies, and miscellaneous foods, which includes functional items such as cholesterol-lowering spreads, functional dairy and yogurt products, and functional processed foods.

While the overall functional food industry, which encompasses all the above-mentioned segments, is expected to see double-digit average annual growth rates over the 5-year period from 2002 to 2007, some segments of the industry are expected to fare better than others. This comprehensive BCC, Inc. industry analysis provides an overview of the major trends within the overall food and functional food industries, as well as market analyses and trends for each individual segment of the functional food industry. Historical data, as well as 5-year forecasts (for the years 2002 to 2007) are provided to demonstrate market sizes and growth. This report will also discuss major food manufacturers' involvement as well as acquisitions related to the functional food market.

REASONS FOR THIS STUDY

The functional food industry is growing at a rapid rate as a result of the industry research that demonstrates a link between diet and health, the increasing number of FDA-approved health claims on packages that clearly explain the link between functional ingredients and better health, and the barrage of media attention to the link between healthful eating and healthier living. These three factors, combined with a consumer interest in maintaining better health without the use of prescription drugs, is setting the functional food industry up for unprecedented growth. Tracking and predicting growth related to these factors is one of the reasons for doing this study.

In addition, there are several different segments under the functional food umbrella, including functional beverages, fortified cereals and breads, soyfoods, functional snacks and candies, and miscellaneous functional foods. Some of these segments within the functional food industry are growing at annual average rates of up to 30% per year, while others are already mature and will see only a 5% or under growth rate. Examining which areas are growing at what rate, predicting future growth rates for each segment, and exploring why some segments of the industry are virtually exploding with growth while others are stagnant are other reasons for conducting this study.

In addition, while it would seem that launching new functional food products during this time of rapid growth would be a sure-fire way to succeed in this industry, this study has found that this is not always the way to be successful. Therefore, the study will examine why some products and functional food manufacturing companies have failed where others have succeeded. It will also examine functional food opportunities of the future, as well as research that is currently being conducted on functional ingredients, as that information is essential to anyone in the functional food industry who is interested in launching new products in the 5-year period from 2002 to 2007.

This study is intended to provide a close look at the functional food industry, providing a timely and accurate view of the overall industry as well as its smaller market segments, the government regulations that are important to the industry, and the food manufacturers who are leading the industry.

CONTRIBUTION OF THE STUDY AND FOR WHOM

This report provides an analysis of the overall functional food market and its smaller subsets through the year 2007. For each category of functional food (i.e. soyfoods), general market information is provided and reasons for growth are discussed. Beyond that, subsets of each category (i.e. soymilk, soy-based meat alternatives, soy-based energy bars, and soy-based powders and drinks) are explored in the same way.

Major players and movement within the functional food industry are also explored, as are product failures and successes, FDA regulations regarding the functional food industry, current research and functional food opportunities, and marketing plans. Therefore, this report is directed at decision-makers in the functional food industry who want information regarding market size and growth and what can be expected of this relatively new area of the food market.

In addition, this report is designed to provide a detailed assessment of the functional food industry for those companies who are currently involved in the industry or for those who are looking for opportune ways to join the industry. These include functional food manufacturers, large and small food manufacturers interested in the industry, natural and health food manufacturers, producers of raw ingredients that have a future in the functional food industry, marketers of functional foods or marketers of food who are interested in the industry, and food chemists and scientists.

SCOPE AND FORMAT

This report should serve as an analytical and informational business tool with the primary purpose of examining the growth in the overall functional food market, growth in the individual segments of the functional food industry, as well as the subcategories within those segments, new developments in the market, and current research and future opportunities in the functional food industry.

This report first examines the growth rates and reasons for growth of the overall functional food industry in the United States. It also compares the growth in the industry to that of the overall food industry in the U.S., as well as providing a comparison of the U.S. functional food industry with that of other countries.

Beyond this, each segment and subsegment of the functional food is examined, and growth rates and reasons for growth of each functional food segment are provided. This report examines the following segments:

• Functional beverages, which includes the subcategories of functional chilled juices, functional teas and juices, sports drinks, and energy drinks.
• Fortified cereals and breads, which includes the subcategories of functional ready-to-eat cereals, functional/natural cereals, and functional breads and grains.
• Soyfoods, which includes the subcategories of soymilk, soy-based meat alternatives, soy-based energy bars, and soy-based powders and drinks.
• Functional candies and snacks, which include the subcategories of energy/nutritional bars, functional candies, oral healthcare gums, and functional snacks.
• Miscellaneous functional foods, which includes the subcategories of functional dressings, cholesterol-lowering spreads, functional yogurts, and functional processed foods.

Each of these areas of the functional food industry will be analyzed and discussed in detail in this report. Within each segment and subcategory, the market size, anticipated growth rates, reasons for growth, applicable FDA health claims and regulations, and manufacturers will be discussed.

In addition, other areas of the report will provide in-depth coverage of the following:

• commonly used ingredients in the functional food industry
• FDA regulations regarding functional food and health claims
• related research
• functional food opportunities
• marketing information

The final segment of the report will include the company profiles of the major players in the industry, as well as their smaller operating companies that offer functional food products.

METHODOLOGY

The material gathered for and presented in this report is based on information gathered from a number of sources, including personal contacts with Food & Drug Administration personnel, individuals involved in the food industry and the functional food industry, manufacturers of functional food products, industry consultants and experts, and food scientists.

Additional data was obtained from extensive review of secondary sources, such as trade publications, trade-associated company literature, government documents and regulations, and on-line sources of data and information. This was done in an effort to supplement the application, market, and trend data gathered from primary source. All dollar projections presented in this report are U.S. 2002 constant dollars. All dollar and market value projections presented in this report are for the U.S. market, unless otherwise noted.

TABLE OF CONTENTS

INTRODUCTION

• OBJECTIVES AND PURPOSE OF THIS REPORT
• REASONS FOR THIS STUDY
• CONTRIBUTION OF THE STUDY AND FOR WHOM
• SCOPE AND FORMAT
• METHODOLOGY
• AUTHOR'S CREDENTIALS
• RELATED BCC PUBLICATIONS
  • REPORTS
  • MONTHLY NEWSLETTER
• BCC ON-LINE SERVICES

SUMMARY

• Summary Table: COMPARISON OF U.S. FUNCTIONAL FOODS SALES GROWTH VERSUS TOTAL FOOD SALES GROWTH, THROUGH 2007 ($ BILLIONS)
• Summary Figure: COMPARISON OF U.S. FUNCTIONAL FOODS SALES GROWTH VERSUS TOTAL FOOD SALES GROWTH, 2001-2007 ($ BILLIONS)

INDUSTRY OVERVIEW

• DEFINITION OF THE TERM "FUNCTIONAL FOODS" FOR THE PURPOSE OF THIS REPORT
• THE IMPORTANCE OF THE INDUSTRY
• PUBLIC ATTITUDES
• RESEARCH IMPACTS
• BACKING OF LARGE MANUFACTURERS
• U.S. MARKET
• INTERNATIONAL MARKET
• MAJOR PRODUCT SEGMENTS
  • FUNCTIONAL BEVERAGES AND TEAS
    • Chilled Juices
    • New Age Beverages
    • Sports Drinks
    • Energy Drinks
  • FUNCTIONAL CEREALS, BREADS, AND GRAINS
    • Fortified Cereals
    • Fortified Breads and Grains
  • SOYFOODS
    • Soymilk
    • Soy-Based Meat Alternatives
    • Soy-Based Energy Bars
    • Soy-Based Meal Replacement Drinks and Powders
  • FUNCTIONAL SNACKS
    • Functional Bars
    • Functional Candies
    • Oral Healthcare Gums
    • Functional Snacks
  • FUNCTIONAL MISCELLANEOUS FOODS
    • Cholesterol Lowering Spreads
    • Functional Dressings
    • Functional Yogurts
    • Functional Processed Foods
• REASONS FOR GROWTH OF OVERALL FUNCTIONAL FOOD MARKET
  • INTEREST IN MAINTAINING BETTER HEALTH
  • INCREASING KNOWLEDGE CONCERNING THE LINK BETWEEN DIET AND HEALTH
    • Government Consumer Education Programs
    • Product Health Claims
    • Media
    • Information Influence on Purchasing
  • INCREASING HEALTHCARE COSTS
  • CHANGES IN FOOD LAWS AFFECTING LABEL AND PRODUCT CLAIMS
  • AN AGING GENERAL POPULATION AND AN AGING FEMALE POPULATION
  • CONSUMER ATTITUDES
• THE FUTURE OF THE INDUSTRY
  • FUNCTIONAL FOOD RESEARCH AND EDUCATION ACT
  • REGULATORY CLASSIFICATIONS
  • LEADING GROWTH PRODUCT PROSPECTS
    • Leading Growth Product Prospects (Continued)

FUNCTIONAL FOOD CATEGORIES SALES AND GROWTH

• OVERALL FUNCTIONAL FOOD MARKET SIZE
  • SIZE AND GROWTH OF OVERALL FUNCTIONAL FOOD MARKET
• Table 1 U.S. SALES OF FUNCTIONAL FOODS, THROUGH 2007 ($ MILLIONS)
• Figure 1 U.S. SALES OF FUNCTIONAL FOODS, 2001-2007 ($ MILLIONS)
• EXAMPLES OF FUNCTIONAL FOODS, INGREDIENTS, AND POTENTIAL BENEFITS
• Table 2 EXAMPLES OF FUNCTIONAL FOODS, KEY INGREDIENTS AND BENEFITS
• Table 2 (CONTINUED)
• SIZE OF FUNCTIONAL FOODS COMPARED TO OVERALL RETAIL FOOD INDUSTRY
• Table 3 COMPARISON OF U.S. FUNCTIONAL FOODS SALES GROWTH VERSUS TOTAL FOOD SALES GROWTH, THROUGH 2007 ($ BILLIONS)
• Figure 2 COMPARISON OF U.S. FUNCTIONAL FOODS SALES VERSUS TOTAL FOOD SALES, 2001-2007 ($ BILLIONS)
• FUNCTIONAL FOOD MARKET LEADERS
• SIZE OF FUNCTIONAL FOOD INDUSTRY AROUND THE WORLD
• Table 4 COMPARISONS OF FUNCTIONAL FOOD SALES IN TOP THREE REGIONS, 2002 ($ BILLIONS)
  • FUNCTIONAL BEVERAGES AND TEAS
• Table 5 U.S. SALES OF FUNCTIONAL BEVERAGES AND TEAS BY TYPE, THROUGH 2007 ($ MILLIONS)
• Figure 3 U.S. SALES OF FUNCTIONAL BEVERAGES BY TYPE, 2001-2007 ($ MILLIONS)
• CHILLED JUICES
• Table 6 U.S. SALES OF FUNCTIONAL CHILLED JUICES BY TYPE, THROUGH 2007 ($ MILLIONS)
• Figure 4 U.S. SALES OF FUNCTIONAL CHILLED JUICES BY TYPE, 2001-2007 ($ MILLIONS)
• Market Share
• Table 7 RANKING OF TOP-SELLING CHILLED JUICE MANUFACTURERS (BY AMOUNT OF FUNCTIONAL CHILLED JUICES SOLD)
• SPORTS DRINKS
• Table 8 U.S. SALES OF SPORTS DRINKS, THROUGH 2007 ($ MILLIONS)
• Market Share
• Table 9 MARKET SHARES OF U.S. SPORTS DRINK MANUFACTURERS, 2002 (%)
• NEW AGE BEVERAGES AND TEAS
• Table 10 U.S. SALES OF NEW AGE BEVERAGES AND TEAS BY TYPE, THROUGH 2007 ($ MILLIONS)
• Figure 5 U.S. SALES OF NEW AGE BEVERAGES BY TYPE, 2001-2007 ($ MILLIONS)
• Market Share
• Table 11 MARKET SHARE OF LEADING NEW AGE BEVERAGE MANUFACTURERS, 2002 (%)
• ENERGY DRINKS
• Table 12 U.S. SALES OF ENERGY DRINKS, THROUGH 2007 ($ MILLIONS)
  • FORTIFIED CEREALS, BREADS, AND GRAINS
• Table 13 U.S. SALES OF FUNCTIONAL CEREALS, BREADS, AND GRAINS, THROUGH 2007 ($ MILLIONS)
• Figure 6 U.S. SALES OF FUNCTIONAL CEREALS, BREADS, AND GRAINS, 2001-2007 ($ MILLIONS)
• READY-TO-EAT CEREALS
  • Market Share
• Table 14 READY-TO-EAT CEREALS POISED FOR SUCCESS
• Table 15 SALES OF LEADING U.S. CEREAL MANUFACTURERS, 2002($ BILLIONS)
• Table 16 BREAKDOWN OF U.S. CEREAL MARKET BY CATEGORY, 2002 ($ MILLIONS)
• FUNCTIONAL BREADS AND GRAINS
• SOYFOODS
• Table 17 U.S. SALES OF SOYFOODS BY TYPE, THROUGH 2007 ($ MILLIONS)
• Figure 7 U.S. SALES OF SOYFOODS BY TYPE, 2001-2007 ($ MILLIONS)
• Table 18 GROWTH OF SOY FOODS IN RETAIL OUTLETS, 2001-2002 (%)
• SOY-RELATED HEALTH CLAIMS
• LARGE MANUFACTURERS ENTERING THE SOYFOODS FRAY
• SOYMILK
• Table 19 U.S. SALES OF SOYMILK, THROUGH 2007 ($ MILLIONS)
• Figure 8 U.S. SALES OF SOYMILK, 2001-2007 ($ MILLIONS)
• Market Drivers
• Market Share
• Table 20 U.S. SOYMILK SALES LEADERS, 2002 (%)
• SOY-BASED MEAT ALTERNATIVES
• Table 21 U.S. SALES OF SOY-BASED MEAT ALTERNATIVES, THROUGH 2007 ($ MILLIONS)
• Figure 9 U.S. SALES OF SOY-BASED MEAT ALTERNATIVES, 2001-2007 ($ MILLIONS)
• Market Drivers
• Product Development
• Market Share
• Table 22 U.S. LEADERS IN SOY-BASED MEAT ALTERNATIVES CATEGORY, 2002 (%)
• SOY-BASED ENERGY BARS
• Table 23 U.S. SALES OF SOY-BASED NUTRITIONAL BARS, THROUGH 2007 ($ MILLION)
• Figure 10 U.S. SALES OF SOY-BASED NUTRITIONAL BARS, 2001-2007 ($ MILLIONS)
• Market Drivers
• Market Share
• Table 24 LEADING SOY-BASED BAR MANUFACTURERS AND MARKET SHARE, 2002 (%)
• SOY-BASED MEAL REPLACEMENT DRINKS AND POWDERS
• Table 25 U.S. SALES OF SOY-BASED MEAL REPLACEMENT BEVERAGES AND POWDERS, THROUGH 2007 ($ MILLIONS)
• Figure 11 U.S. SALES OF SOY-BASED MEAL REPLACEMENT BEVERAGES AND POWDERS, 2001-2007 ($ MILLIONS)
  • FUNCTIONAL SNACKS AND CANDIES
• Table 26 U.S. SALES OF FUNCTIONAL SNACKS AND CANDIES BY TYPE, THROUGH 2007 ($ MILLIONS)
• Figure 12 U.S. SALES OF FUNCTIONAL SNACKS AND CANDIES BY TYPE, 2001-2007 ($ MILLIONS)
• NUTRITIONAL SNACK AND MEAL REPLACEMENT BARS
• Table 27 U.S. SALES OF FUNCTIONAL BARS BY TYPE, THROUGH 2007 ($ MILLIONS)
• Figure 13 U.S. SALES OF FUNCTIONAL BARS, 2001-2007 ($ MILLIONS)
• General Versus Nutritional Bar Market
• Table 28 COMPARISONS OF U.S. GENERAL SNACK BAR SALES TO FUNCTIONAL BARS, THROUGH 2007 ($ MILLION)
• Figure 14 COMPARISONS OF GENERAL SNACK BAR SALES TO FUNCTIONAL BARS, THROUGH 2007 ($ MILLION)
• General Bar Market Share
• Table 29 U.S. SALES OF TOP FIVE GENERAL BAR SALES MARKET LEADERS, 2002 ($ MILLIONS)
• Functional Bar Market Share
• Table 30 TOP FIVE U.S. MANUFACTURERS OF FUNCTIONAL BARS, 2002 ($ MILLIONS)
• Reasons for Mediocre Growth of Nutritional Bars
• FUNCTIONAL CANDY
• Table 31 U.S. FUNCTIONAL CANDY SALES COMPARED TO ALL CANDY SALES, THROUGH 2007 ($ BILLIONS)
• Figure 15 U.S. SALES OF FUNCTIONAL CANDY COMPARED TO ALL CANDY SALES, 2002 AND 2007 ($ BILLIONS)
• Table 32 U.S. SALES OF FUNCTIONAL CANDY BY TYPE, THROUGH 2007 ($ MILLIONS)
• Figure 16 U.S. SALES OF FUNCTIONAL CANDIES BY TYPE, 2001-2007 ($ MILLIONS)
• Market Drivers
• ORAL HEALTHCARE GUMS
• Table 33 U.S. SALES OF ORAL HEALTH CARE GUMS, THROUGH 2007 ($ MILLIONS)
• Market Drivers
• FUNCTIONAL SNACKS
• Table 34 U.S. FUNCTIONAL SNACK SALES BY TYPE, THROUGH 2007 ($ MILLIONS)
• Figure 17 U.S. SALES OF FUNCTIONAL SNACKS BY TYPE, 2001-2007 ($ MILLIONS)
• Market Drivers
• Table 35 FUNCTIONAL SNACK SALES COMPARED TO GENERAL SNACK SALES, THROUGH 2007 ($ BILLIONS)
• Market Leaders
• MISCELLANEOUS FUNCTIONAL FOODS
• Table 36 U.S. SALES OF MISCELLANEOUS FUNCTIONAL FOODS BY TYPE, THROUGH 2007 ($ MILLIONS)
• Figure 18 U.S. SALES OF FUNCTIONAL MISCELLANEOUS FOODS BY TYPE, 2001-2007 ($ MILLIONS)
• CHOLESTEROL-LOWERING SPREADS
• Table 37 U.S. SALES OF CHOLESTEROL-LOWERING SPREADS, THROUGH 2007 ($ MILLIONS)
• Reasons for Poor Growth
• FUNCTIONAL DRESSINGS
• Table 38 U.S. SALES OF TRADITIONAL DRESSINGS COMPARED TO FUNCTIONAL DRESSINGS, THROUGH 2007 ($ BILLIONS)
• Little Growth Expected
• FUNCTIONAL YOGURT
• Table 39 U.S. SALES OF FUNCTIONAL YOGURT PRODUCTS, THROUGH 2007 ($ MILLIONS)
• Market Drivers
  • Market Drivers (Continued)
• Market Share
• FUNCTIONAL PROCESSED FOOD
• Table 40 U.S. SALES OF FUNCTIONAL PROCESSED FOOD BY TYPE, THROUGH 2007 ($ MILLIONS)
• Market Drivers

FUNCTIONAL FOOD BY INGREDIENT

• VITAMINS AND MINERALS
  • CALCIUM
  • PERCENT OF FUNCTIONAL FOODS CONTAINING CALCIUM AS A FUNCTIONAL INGREDIENT
• Table 41 PERCENT OF FUNCTIONAL FOODS CONTAINING CALCIUM BY CATEGORY, 2003
• ADDITIONAL VITAMINS AND MINERALS
  • Percent of Functional Foods Fortified with Vitamins and Minerals
• Table 42 PERCENT OF FUNCTIONAL FOODS CONTAINING ADDED VITAMINS BY CATEGORY
  • FIBER
    • PERCENT OF FUNCTIONAL FOODS FORTIFIED WITH FIBER
• Table 43 PERCENT OF FUNCTIONAL FOODS CONTAINING FIBER BY CATEGORY
  • SOY
    • PERCENTAGE OF FUNCTIONAL FOOD CONTAINING SOY AS THE FUNCTIONAL INGREDIENT
• Table 44 PERCENT OF FUNCTIONAL FOODS CONTAINING SOY BY CATEGORY
  • HERBS
    • PERCENTAGE OF FUNCTIONAL FOODS THAT CONTAIN HERBS AS THE FUNCTIONAL INGREDIENT
• Table 45 PERCENT OF FUNCTIONAL FOODS CONTAINING HERBS BY CATEGORY
• OTHER FUNCTIONAL INGREDIENTS OF NOTE
• PROBIOTICS
• OMEGA-3 POLYUNSATURATED FATTY ACIDS
• PLANT STEROLS
• LYCOPENE
• FUNCTIONAL INGREDIENTS OF THE FUTURE
• Table 46 FUNCTIONAL INGREDIENTS OF THE FUTURE
• Table 46 (CONTINUED)

FUNCTIONAL FOODS RESEARCH

• BIOTECHNOLOGY AND FUNCTIONAL FOODS
  • BIOTECHNOLOGY AND FERTILIZATION METHODS TO PRODUCE HIGHER LYCOPENE YIELDS
  • BIOTECHNOLOGY AND SOYBEANS
  • BIOTECHNOLOGY CREATES SUPER BROCCOLI
  • USING BIOTECHNOLOGY TO CREATING FUNCTIONAL INGREDIENTS FROM SCRAP CROPS
• FUNCTIONAL INGREDIENT RESEARCH
  • FISH OILS
  • FLAXSEED
  • LYCOPENE
  • FIBER
  • CALCIUM
  • SOY
• PRODUCT RESEARCH AND DEVELOPMENT
  • LYCOPENE PRODUCTS
  • PRODUCTS THAT HELP THE HEART
  • MILK
    • Functional Food Opportunities
      • Functional Food Opportunities (Continued)

FEDERAL REGULATION OF THE FUNCTIONAL FOOD INDUSTRY

• REGULATION OF FUNCTIONAL FOODS
  • CLAIMS THAT CAN BE MADE FOR CONVENTIONAL FOODS AND DIETARY SUPPLEMENTS
    • Health Claims
      • NLEA Authorized Health Claims
      • Health Claims Based On Authoritative Statements
      • Qualified Health Claims
    • Structure/Function Claims
    • Nutrient Content Claims
  • PERMISSIBLE HEALTH CLAIMS
    • FDA-Approved Health Claims
      • Plant Sterol and Plant Stanol Esters and Reduced Risk of Coronary Heart Disease
        • Food Requirements
        • Claim Requirements
        • Model Claim Statements
      • Soy Protein and Reduced Risk of Coronary Heart Disease
        • Food Requirements
        • Claim Requirements
        • Model Claim Statements
      • Calcium and Reduced Risk of Osteoporosis
        • Food Requirements
        • Claim Requirements
        • Model Claim Requirements
      • Fiber-Containing Grain Products, Fruits, and Vegetables and the Reduced Risk of Cancer
        • Food Requirements
        • Claim Requirements
        • Model Claim Requirements
      • Fruits, Vegetables, and Grain Products that Contain Fiber and the Reduced Risk of Coronary Heart Disease
        • Food Requirements
        • Claim Requirements
        • Model Claim Requirements
      • Foliate and the Reduced Risk of Neural Tube Birth Defects
        • Food Requirements
        • Claim Requirements
        • Model Claim Requirements
      • Dietary Soluble Fiber and the Reduced Risk of Coronary Heart Disease
        • Food Requirements
        • Claim Requirements
        • Model Claim Requirements
    • Health Claims Authorized Based on Authoritative Statements by Federal Scientific Bodies
      • Whole Grain Foods and Risk of Heart Disease and Certain Cancers
        • Claim Requirements
      • Potassium and the Risk of High Blood Pressure and Stroke
        • Claim Requirements
        • Model Statements
  • OBTAINING A HEALTH CLAIM
  • HEALTH CLAIM PITFALLS
    • Be Wary of Herbal Ingredient Health Claims
    • Health Claims and the Internet
  • HOW TO LABEL AND MARKET FUNCTIONAL FOODS?
    • The Functional Food Research and Education Act
    • Classifying Functional Foods for Regulatory Purposes
      • Functional Food Classified As Drugs
      • Functional Foods Classified As Medical Foods
      • Functional Foods Classified As Foods with Novel Food Ingredients
      • Functional Foods Classified As Dietary Supplements

FUNCTIONAL FOOD OPPORTUNITIES

• CURRENT FUNCTIONAL FOOD OPPORTUNITIES
  • FORTIFIED FOODS
• Table 47 SALES AND GROWTH FOR FORTIFIED FUNCTIONAL FOODS BY TYPE, THROUGH 2007 ($ MILLIONS)
• Figure 19 SALES FOR FORTIFIED FUNCTIONAL FOODS BY TYPE, 2001-2007 ($ MILLIONS)
• FUNCTIONAL FOODS DIRECTED AT CHILDREN
• Table 48 SALES AND GROWTH OF FUNCTIONAL FOODS DIRECTED AT CHILDREN, THROUGH 2007 ($ MILLIONS)
• Figure 20 SALES AND GROWTH OF FUNCTIONAL FOODS DIRECTED AT CHILDREN, 2001-2007 ($ MILLIONS)
• TRADITIONALLY UNHEALTHY FOODS WITH A FUNCTIONAL TWIST
• Table 49 SALES AND GROWTH OF TRADITIONALLY UNHEALTHY FOODS WITH FUNCTIONAL TWIST, THROUGH 2007 ($ MILLIONS)
• Figure 21 SALES OF TRADITIONALLY UNHEALTHY FOODS WITH FUNCTIONAL TWIST, 2001-2007 ($ MILLIONS)
• FUNCTIONAL FOODS TAILORED TO IMPROVE THE QUALITY OF LIFE
• Table 50 SALES AND GROWTH OF FUNCTIONAL FOODS TO IMPROVE THE QUALITY OF LIFE, THROUGH 2007 ($ MILLIONS)
• Figure 22 SALES OF FUNCTIONAL FOODS TO IMPROVE THE QUALITY OF LIFE, 2001-2007 ($ MILLIONS)
• SOYFOODS
• Table 51 U.S. SALES AND GROWTH OF SOYFOODS BY TYPE, THROUGH 2007 ($ MILLIONS)
• Figure 23 U.S. SALES AND GROWTH OF SOYFOODS BY TYPE, 2001-2007 ($ MILLIONS)
  • FUNCTIONAL FOOD OPPORTUNITIES OF THE FUTURE
    • TREATMENT FUNCTIONAL FOODS
    • ORGANIC/FUNCTIONAL FOODS
    • CONDITION-ORIENTED FUNCTIONAL FOODS
      • Condition-Oriented Functional Foods (Continued)

MARKETING FUNCTIONAL FOODS

• A LOOK AT U.S. DEMOGRAPHICS
• Table 52 HEALTH ISSUES AFFECTING EACH DEMOGRAPHIC GROUP (PERCENT OF SHOPPERS AFFECTED)
  • HEALTH-RELATED CONSUMER OPINIONS
  • METHODS OF REACHING THE TARGET AUDIENCE
• Table 53 HEALTH AND NUTRITION INFORMATION SOURCES USED BY CONSUMERS (PERCENTAGE OF RESPONDENTS)
  • AVOIDING PRODUCT FAILURES
    • PRODUCT FLOPS
    • WINNING STRATEGIES
      • Include the Healthcare Community and Media in the Plan
      • Team Up With A Winner
        • Team Up With A Winner (Continued)

COMPANY PROFILES

• CLIF BAR INC.
• COCA-COLA CO.
  • MINUTE MAID
  • POWERADE
• DEAN FOODS COMPANY
  • WHITE WAVE
• GARDENBURGER AUTHENTIC FOODS COMPANY
• GENERAL MILLS
• HAIN CELESTIAL GROUP
  • YVES VEGGIE CUISINE
  • HAIN PURE FOODS
  • ARROWHEAD MILLS
  • TERRA CHIPS
  • EARTH'S BEST
  • WESTSOY
• THE KELLOGG CO.
  • KELLOGG
  • KASHI
  • WORTHINGTON FOODS
• KRAFT FOODS
  • POST CEREALS
  • BALANCE BAR
  • BOCA BURGER, INC.
• MCNEIL NUTRITIONALS
• NESTLE USA
  • POWERBAR
• PEPSICO
  • SOBE
  • TROPICANA
  • GATORADE
  • QUAKER FOODS NORTH AMERICA
• STONYFIELD FARM
• UNILEVER
  • UNILEVER'S TAKE CONTROL
  • SLIMFAST FOODS CO.

LIST OF TABLES

• Summary Table: COMPARISON OF U.S. FUNCTIONAL FOODS SALES GROWTH VERSUS TOTAL FOOD SALES GROWTH, THROUGH 2007 ($ BILLIONS)
• Table 1 U.S. SALES OF FUNCTIONAL FOODS, THROUGH 2007 ($ MILLIONS)
• Table 2 EXAMPLES OF FUNCTIONAL FOODS, KEY INGREDIENTS AND BENEFITS
• Table 3 COMPARISON OF U.S. FUNCTIONAL FOODS SALES GROWTH VERSUS TOTAL FOOD SALES GROWTH, THROUGH 2007 ($ BILLIONS)
• Table 4 COMPARISONS OF FUNCTIONAL FOOD SALES IN TOP THREE REGIONS, 2002 ($ BILLIONS)
• Table 5 U.S. SALES OF FUNCTIONAL BEVERAGES AND TEAS BY TYPE, THROUGH 2007 ($ MILLIONS)
• Table 6 U.S. SALES OF FUNCTIONAL CHILLED JUICES BY TYPE, THROUGH 2007 ($ MILLIONS)
• Table 7 RANKING OF TOP-SELLING CHILLED JUICE MANUFACTURERS (BY AMOUNT OF FUNCTIONAL CHILLED JUICES SOLD)
• Table 8 U.S. SALES OF SPORTS DRINKS, THROUGH 2007 ($ MILLIONS)
• Table 9 MARKET SHARES OF U.S. SPORTS DRINK MANUFACTURERS, 2002 (%)
• Table 10 U.S. SALES OF NEW AGE BEVERAGES AND TEAS BY TYPE, THROUGH 2007 ($ MILLIONS)
• Table 11 MARKET SHARE OF LEADING NEW AGE BEVERAGE MANUFACTURERS, 2002 (%)
• Table 12 U.S. SALES OF ENERGY DRINKS, THROUGH 2007 ($ MILLIONS)
• Table 13 U.S. SALES OF FUNCTIONAL CEREALS, BREADS, AND GRAINS, THROUGH 2007 ($ MILLIONS)
• Table 14 READY-TO-EAT CEREALS POISED FOR SUCCESS
• Table 15 SALES OF LEADING U.S. CEREAL MANUFACTURERS, 2002($ BILLIONS)
• Table 16 BREAKDOWN OF U.S. CEREAL MARKET BY CATEGORY, 2002 ($ MILLIONS)
• Table 17 U.S. SALES OF SOYFOODS BY TYPE, THROUGH 2007 ($ MILLIONS)
• Table 18 GROWTH OF SOY FOODS IN RETAIL OUTLETS, 2001-2002 (%)
• Table 19 U.S. SALES OF SOYMILK, THROUGH 2007 ($ MILLIONS)
• Table 20 U.S. SOYMILK SALES LEADERS, 2002 (%)
• Table 21 U.S. SALES OF SOY-BASED MEAT ALTERNATIVES, THROUGH 2007 ($ MILLIONS)
• Table 22 U.S. LEADERS IN SOY-BASED MEAT ALTERNATIVES CATEGORY, 2002 (%)
• Table 23 U.S. SALES OF SOY-BASED NUTRITIONAL BARS, THROUGH 2007 ($ MILLION)
• Table 24 LEADING SOY-BASED BAR MANUFACTURERS AND MARKET SHARE, 2002 (%)
• Table 25 U.S. SALES OF SOY-BASED MEAL REPLACEMENT BEVERAGES AND POWDERS, THROUGH 2007 ($ MILLIONS)
• Table 26 U.S. SALES OF FUNCTIONAL SNACKS AND CANDIES BY TYPE, THROUGH 2007 ($ MILLIONS)
• Table 27 U.S. SALES OF FUNCTIONAL BARS BY TYPE, THROUGH 2007 ($ MILLIONS)
• Table 28 COMPARISONS OF U.S. GENERAL SNACK BAR SALES TO FUNCTIONAL BARS, THROUGH 2007 ($ MILLION)
• Table 29 U.S. SALES OF TOP FIVE GENERAL BAR SALES MARKET LEADERS, 2002 ($ MILLIONS)
• Table 30 TOP FIVE U.S. MANUFACTURERS OF FUNCTIONAL BARS, 2002 ($ MILLIONS)
• Table 31 U.S. FUNCTIONAL CANDY SALES COMPARED TO ALL CANDY SALES, THROUGH 2007 ($ BILLIONS)
• Table 32 U.S. SALES OF FUNCTIONAL CANDY BY TYPE, THROUGH 2007 ($ MILLIONS)
• Table 33 U.S. SALES OF ORAL HEALTH CARE GUMS, THROUGH 2007 ($ MILLIONS)
• Table 34 U.S. FUNCTIONAL SNACK SALES BY TYPE, THROUGH 2007 ($ MILLIONS)
• Table 35 FUNCTIONAL SNACK SALES COMPARED TO GENERAL SNACK SALES, THROUGH 2007 ($ BILLIONS)
• Table 36 U.S. SALES OF MISCELLANEOUS FUNCTIONAL FOODS BY TYPE, THROUGH 2007 ($ MILLIONS)
• Table 37 U.S. SALES OF CHOLESTEROL-LOWERING SPREADS, THROUGH 2007 ($ MILLIONS)
• Table 38 U.S. SALES OF TRADITIONAL DRESSINGS COMPARED TO FUNCTIONAL DRESSINGS, THROUGH 2007 ($ BILLIONS)
• Table 39 U.S. SALES OF FUNCTIONAL YOGURT PRODUCTS, THROUGH 2007 ($ MILLIONS)
• Table 40 U.S. SALES OF FUNCTIONAL PROCESSED FOOD BY TYPE, THROUGH 2007 ($ MILLIONS)
• Table 41 PERCENT OF FUNCTIONAL FOODS CONTAINING CALCIUM BY CATEGORY, 2003
• Table 42 PERCENT OF FUNCTIONAL FOODS CONTAINING ADDED VITAMINS BY CATEGORY
• Table 43 PERCENT OF FUNCTIONAL FOODS CONTAINING FIBER BY CATEGORY
• Table 44 PERCENT OF FUNCTIONAL FOODS CONTAINING SOY BY CATEGORY
• Table 45 PERCENT OF FUNCTIONAL FOODS CONTAINING HERBS BY CATEGORY
• Table 46 FUNCTIONAL INGREDIENTS OF THE FUTURE
• Table 47 SALES AND GROWTH FOR FORTIFIED FUNCTIONAL FOODS BY TYPE, THROUGH 2007 ($ MILLIONS)
• Table 48 SALES AND GROWTH OF FUNCTIONAL FOODS DIRECTED AT CHILDREN, THROUGH 2007 ($ MILLIONS)
• Table 49 SALES AND GROWTH OF TRADITIONALLY UNHEALTHY FOODS WITH FUNCTIONAL TWIST, THROUGH 2007 ($ MILLIONS)
• Table 50 SALES AND GROWTH OF FUNCTIONAL FOODS TO IMPROVE THE QUALITY OF LIFE, THROUGH 2007 ($ MILLIONS)
• Table 51 U.S. SALES AND GROWTH OF SOYFOODS BY TYPE, THROUGH 2007 ($ MILLIONS)
• Table 52 HEALTH ISSUES AFFECTING EACH DEMOGRAPHIC GROUP (PERCENT OF SHOPPERS AFFECTED)
• Table 53 HEALTH AND NUTRITION INFORMATION SOURCES USED BY CONSUMERS (PERCENTAGE OF RESPONDENTS)  

LIST OF FIGURES

• Summary Figure: COMPARISON OF U.S. FUNCTIONAL FOODS SALES GROWTH VERSUS TOTAL FOOD SALES GROWTH, 2001-2007 ($ BILLIONS)
• Figure 1 U.S. SALES OF FUNCTIONAL FOODS, 2001-2007 ($ MILLIONS)
• Figure 2 COMPARISON OF U.S. FUNCTIONAL FOODS SALES VERSUS TOTAL FOOD SALES, 2001-2007 ($ BILLIONS)
• Figure 3 U.S. SALES OF FUNCTIONAL BEVERAGES BY TYPE, 2001-2007 ($ MILLIONS)
• Figure 4 U.S. SALES OF FUNCTIONAL CHILLED JUICES BY TYPE, 2001-2007 ($ MILLIONS)
• Figure 5 U.S. SALES OF NEW AGE BEVERAGES BY TYPE, 2001-2007 ($ MILLIONS)
• Figure 6 U.S. SALES OF FUNCTIONAL CEREALS, BREADS, AND GRAINS, 2001-2007 ($ MILLIONS)
• Figure 7 U.S. SALES OF SOYFOODS BY TYPE, 2001-2007 ($ MILLIONS)
• Figure 8 U.S. SALES OF SOYMILK, 2001-2007 ($ MILLIONS)
• Figure 9 U.S. SALES OF SOY-BASED MEAT ALTERNATIVES, 2001-2007 ($ MILLIONS)
• Figure 10 U.S. SALES OF SOY-BASED NUTRITIONAL BARS, 2001-2007 ($ MILLIONS)
• Figure 11 U.S. SALES OF SOY-BASED MEAL REPLACEMENT BEVERAGES AND POWDERS, 2001-2007 ($ MILLIONS)
• Figure 12 U.S. SALES OF FUNCTIONAL SNACKS AND CANDIES BY TYPE, 2001-2007 ($ MILLIONS)
• Figure 13 U.S. SALES OF FUNCTIONAL BARS, 2001-2007 ($ MILLIONS)
• Figure 14 COMPARISONS OF GENERAL SNACK BAR SALES TO FUNCTIONAL BARS, THROUGH 2007 ($ MILLION)
• Figure 15 U.S. SALES OF FUNCTIONAL CANDY COMPARED TO ALL CANDY SALES, 2002 AND 2007 ($ BILLIONS)
• Figure 16 U.S. SALES OF FUNCTIONAL CANDIES BY TYPE, 2001-2007 ($ MILLIONS)
• Figure 17 U.S. SALES OF FUNCTIONAL SNACKS BY TYPE, 2001-2007 ($ MILLIONS)
• Figure 18 U.S. SALES OF FUNCTIONAL MISCELLANEOUS FOODS BY TYPE, 2001-2007 ($ MILLIONS)
• Figure 19 SALES FOR FORTIFIED FUNCTIONAL FOODS BY TYPE, 2001-2007 ($ MILLIONS)
• Figure 20 SALES AND GROWTH OF FUNCTIONAL FOODS DIRECTED AT CHILDREN, 2001-2007 ($ MILLIONS)
• Figure 21 SALES OF TRADITIONALLY UNHEALTHY FOODS WITH FUNCTIONAL TWIST, 2001-2007 ($ MILLIONS)
• Figure 22 SALES OF FUNCTIONAL FOODS TO IMPROVE THE QUALITY OF LIFE, 2001-2007 ($ MILLIONS)
• Figure 23 U.S. SALES AND GROWTH OF SOYFOODS BY TYPE, 2001-2007 ($ MILLIONS)