Market research 38899

The Japanese spend $126 per person on functional foods, a total of 6% of their total food spending, according to Functional Foods & FOSHU Japan 2004, a new report from Paul Yamaguchi & Associates Inc. The report covers the $16 billion Japanese functional foods market, which includes between 1,500 and 2,000 products, approximately 400 of which qualify for FOSHU (health claim) status. Among the areas covered are the $1.6 billion sports beverage market, the $975 million functional water market and the $3.2 billion probiotic/fermented milk drink market.

The sports and fitness industry generated revenues of $3.01 billion in 2003, and total revenues will top $6.33 billion by 2010, according to new research from Frost & Sullivan. According to the report, R&D efforts are resulting in an explosion of flavorstop brands in categories such as energy bars and ready-to-drink shakes often have eight to 10 flavor variants. While there is increasing interest from the mass market, this could lead to commoditization of the products, which could be perceived by consumers as all similar in benefits and features.

Less than one fifth of Americans normally count calories, and more than 60% eat the foods they like, regardless of calorie count, according to findings from Mintel. While 25% of Americans say they are currently dieting, more than 60% are actually overweight or obese, leaving a large difference between those who need to diet and those who are actually dieting. In addition, Mintel found convenience meals are a regular part of many Americans diets, with a third of respondents having eaten in a fast food or other restaurant at least three times in the previous week; at least 10% of respondents ate convenience foods such as frozen or ready to eat at least three times in the previous week.

Up to 80% of Americans are not consuming enough magnesium from their diet, according to a recent Gallup poll. Even when adding in dietary supplements, only approximately 35% consume the recommended daily allowance (RDA) or more of magnesium. In addition, 53% of consumers couldnt name a single good source of magnesium (such as bran cereal, almonds, milk, spinach, oatmeal or soy beans).

World demand for nutraceutical chemicals will grow by 6.1% annually to $9.6 billion by 2008, serving a $173 billion nutritional products industry, according to projections released by the Freedonia Group. Functional additives, particularly probiotics, omega-3 fatty acids, soy isoflavones and lycopene, are among the ingredients expected to generate above average gains. Freedonia estimates the global demand for nutrients and minerals will top $4.8 billion by 2008, with natural forms of vitamins A and E providing the best growth opportunities among bulk vitamins. Finally, the group expects world demand for herbal and non-herbal extract will grow 9.9% annually, with top growth to be seen in Ginkgo biloba, saw palmetto, ginseng and black cohosh.