Consumers Seeking Functional Foods for Digestive Health

NEW YORKDigestive health is one of the hottest topics in the food and beverage arena, driven by innovations in product formulations and increasing awareness among consumers of the link between digestive health and immune function, according to market research firm Packaged Facts. In its new report, Boosting Immunity Through Digestion, the company reported the global retail market for probiotic/prebiotic foods and beverages topped $15 billion in 2008, a 13 percent increase over 2007. It projects the market for functional foods and beverages addressing digestive health will top $22 billion in 2013, a compound annual growth rate (CAGR) of 12 percent between 2004 and 2013.

Results of a poll conducted by Packaged Facts in February 2009 found digestive health will be one of the key areas of focus for purchasers of functional foods through 2013, driven by the association with overall wellness and the ability to delivery nearly apparent benefits to the consumer. Consumers in developed countries are becoming increasingly aware of their ability to treat health concerns and problems with diet, said Tatjana Meerman, publisher of Packaged Facts. Combined with knowledge that allows consumers to address these concerns without conventional medical treatment is driving interest in nutrition as it relates to digestive health and digestive health as it relates to overall wellness.

Product introductions are meeting the consumer need. In 2008, 232 products were introduced worldwide that contained probiotic and/or prebiotic ingredients. Through the first six months of 2009, 139 such products were introduced globally; aside from yogurt, the leading categories of fortified products included milk, functional drinks, breakfast cereals, cheese and cookies. The prebiotics sector is showing faster growth, with a presence in products ranging from pudding to frozen chicken dinners. Further, Packaged Facts called out digestive enzymes as the new frontier in formulating products for digestive health, with foods such as beverages, candy, dried goods, fruit juices and margarine among possible delivery vehicles for active digestive enzymes.

Packaged Facts report also noted several marketing challenges, including consumer confusion and skepticism about digestive health products, and a lack of understanding about the strains of probiotics and their associated health benefits. Further, there are formulation issues to address, as surveys show that although consumers are making active attempts to eat healthier, they are generally not willing to do so by compromising sensory benefits.

Further information on the report is available here.