Top Trends in Functional Foods

LAS VEGASThe ever-exciting category of functional foods shows much promise for growth in the coming years. During his SupplySide 2010 presentation, Jeff Hilton, partner and co-founder, Integrated Marketing Group (IMG), provided a nicely detailed look at this category of foods, beverages and supplementseverything from statistics on current activity in the sector to consumer demographics, all the while outlining new opportunities for growth and using recently released products as key examples to show directions the functional category is taking.

With functional products, its all about honing in on specific health issues, said Hilton. Targeted health issues include immunity, healthy aging, diabetes, immunity, etc. Although sales were rather flat for 2009, he projected an uptick in functional product sales for 2010, even going so far as to suggesting that 2011 will be a banner year for such products. This category sports an ever-increasing consumer base, which centers on people aged 25 through 54. Beverages lead the way when it comes to functional, taking 58% of sales.

Superfruits had a strong representation during the discussion, and Hilton said that he believes superfruit-centered products are going to be around for a long time. Calling a product natural can help differentiate it, and natural product launches are outpacing organic 4:1. He noted that organic is in a bit of an identity crisis. Tea was tapped as a strong segment in functional foods, and he said probiotics and prebiotics are the hottest functional ingredient category right now.

The functional category is notoriously competitiveparticularly when it comes to beverages. Hilton noted that 80% of new functional products fail, but that strong dedication to clinical research, educating consumers about the product and its key ingredients, and strong product promotioncomplete with a well-constructed marketing plancan help ensure success.