Future Functional Ingredients: Novel applications, emerging R&D and new product opportunities

Future Functional Ingredients
Novel applications, emerging R&D and new product opportunities

Despite new health claims regulations and vast regional differences in the uptake of functional food and drinks, there remain growth opportunities in the global health market as scientific studies uncover the benefits of emerging and existing ingredients. The discovery of the benefits of new natural ingredients is an important development in the market as consumers become increasingly conscious of what they are putting in and on their bodies.
Future Functional Ingredients is a new management report published by Business Insights that provides insights into the applications of functional ingredients within foods, beverages and supplements. The report is spilt into trend specific segments and within each chapter it analyzes the current market drivers, key trends and outlines the potential and growth of the weight control, functional, wellness and natural and exotic food and drink ingredient trends.
Assess the competitive landscape of the functional ingredients market and identify the markets and regions with the greatest potential with this new report...

This new report will enable you to...
• Quantify and target future growth areas with this report’s analysis of epidemiological data of 6 conditions, showing prevalence and growth of key lifestyle diseases, and analysis of the functional food and drinks market value in 8 countries and across 6 categories between 2001 and 2011.
• Improve targeting and the effectiveness of your NPD strategies with this report’s analysis of current major nutraceutical food and drinks segments, including weight control, functional food, wellness, natural and exotic, using Productscan data of over 10,000 products launched between 2004 and 2007.
• Implement best-practice strategies using this reports case studies of current key ingredients used in weight control (hoodia gordonii from Unilever and Phytopharm) and blood sugar management (Pycnogenol).
• Create more effective competitive strategies based on detailed analysis of an industry survey conducted for this report, presenting industry insiders’ opinions on the nutraceutical food and drinks market today and over the next five years.

Key issues examined by this report...
• Changing health claims regulation in Europe. The new Directive requires claims made on food to be either drawn from the European Commission’s list, or to be filed as a proprietary claim with sufficient proof. This will increase NPD costs for manufacturers wanting to make a proprietary claim and will lead to stifled innovation. However, the benefit will be a harmonized field throughout Europe.
• The demand for natural ingredients. Consumers are becoming more concerned about what they are putting in and on their bodies. This has given rise to NPD in ingredients as manufacturers seek natural alternatives to artificial additives such as colors or preservatives, and also to active ingredients.
• The ageing population. The world is getting older, and this is driving the functional food and drinks market as the elderly address increasing health concerns with their diet choices. Furthermore, anti-ageing is a big issue for seniors.

Some key findings from this report...
• The value of the US and European natural (excluding organic) food and drinks market was worth $11.7bn in 2005 and it is expected to reach $19.2bn by 2010. The high consumer acceptance of the natural and exotic trend, as opposed to the functional trend which requires consumer education, indicates that this is a worthwhile area for manufacturer investment.
• Of all wellness food and drinks launched, soft drinks took the highest share (41.9% in 2007), followed by dairy products (13.2%). From 2004, wellness dairy launches have increased due to the emerging beauty yogurt category as well as the increase of digestive health claims.
• In 2005, 39.4m or 5.4% of the world population had type II diabetes, an increase of 0.1% from 2004. The rise of this condition is expected to continue.
• 78.2% of respondents stated that they consider nutraceutical food and drinks as important or very important for future self-medication. 75.0% of industry executives rated supplements as important or very important.

Key questions answered by this report...
• What are current and future market drivers?
• How will changes in consumer demographics affect functional food and drinks market development?
• What are the most promising areas for NPD for manufacturers?
• How will the changing health claims regulations affect the functional food and drinks market?
• What are the key emerging ingredients for functional food and drinks?
• What are possible applications for these new ingredients?
• What are current market trends, and how will they develop over the next five years?

Table of Contents
Future Functional Ingredients
Executive Summary 10
Introduction 10
Weight control ingredients 11
Functional ingredients 12
Wellness ingredients 13
Natural and exotic ingredients 14
Industry survey 15
Conclusions and future outlook 16
Chapter 1 Introduction 18
Summary 18
Introduction 18
Drivers of functional food markets 19
Demographics and consumer behavior 19
New regulatory hurdles and opportunities 19
Regional differences 20
Blurring of boundaries 22
Chapter 2 Weight control ingredients 26
Summary 26
Introduction 26
Drivers of the trend 27
Obesity 27
Weight loss mechanisms 29
Raising resting metabolic rate (RMR) 30
Fat absorption blocking 32
Mood regulation 33
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Appetite suppression 34
Future ingredients 35
Probiotics/synbiotics 35
Alpha-glucan 36
Fraxinus excelsior seed extract 36
Alginate-pectin calcium gel 37
Green coffee bean extract 38
Novel ingredient case study – Hoodia by Unilever 39
Innovation and NPD 42
Regional analysis 44
Future outlook 45
Chapter 3 Functional ingredients 48
Summary 48
Introduction 49
Drivers of the trend 49
Functional food and drink market value 49
Epidemiology data 52
Diabetes 52
Cardiovascular health 53
Joint and bone health 54
Future ingredients 55
Blood sugar 55
Banaba leaf extract 55
Maitake mushroom extract 56
Coccinia indica 57
Novel ingredient case study – Pycnogenol 58
Cardiovascular health 59
Citrus flavonoid/tocotrienol combination 59
Cinnamon 61
Cocoa polyphenols 61
Blumea balsimifera 63
Horny goatweed (Epimedium grandiflorum) 64
Beetroot juice 65
Joint and bone health 66
Olive extract 66
Green tea catechins 67
Horny goatweed (Epimedium brevicornum maxim) 69
New vegetarian glucosamine 69
Bio Serae’s Osteol targets joint health 71
Innovation and NPD 72
Regional analysis 73
Product launches by condition 74
Future outlook 76
v
Chapter 4 Wellness ingredients 78
Summary 78
Introduction 78
Drivers of the trend 79
Beauty and anti-ageing 79
Digestive health 82
Epidemiology 84
Cognitive health 85
Epidemiology 86
Future ingredients 87
Anti-ageing: beauty from the inside out 87
Kigelia pinnata extract 87
Cocoa flavanols and catechins 87
Gotu kola (Centella asiatica) extracts 89
Digestive health and immune regulation 90
Micro-fibers 90
Synbiotics 91
Omega-3 92
Cognitive health and energy 93
Adaptogens: Rhodiola rosea 93
Cocoa polyphenols: flavanols and catechins 95
Olive extract 96
Innovation and NPD 97
Regional analysis 98
Product launches by condition 99
Future outlook 101
Chapter 5 Natural and exotic ingredients 104
Summary 104
Introduction 104
Drivers of the trend 106
Value of the natural market 106
Future ingredients 107
Spirulina 107
Fucoidan from BGG 109
Superfruit: Aronia 110
Innovation and NPD 112
Regional analysis 114
Future outlook 115
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Chapter 6 Industry survey 118
Summary 118
Introduction 119
Self-medication 119
Health trends 121
Current and future ingredients 123
Weight control 124
Blood sugar 125
Cardiovascular health 125
Joint and bone health 125
Beauty from within 126
Anti-ageing 126
Digestive health 126
Immune regulation 127
Cognitive health 127
Energy and vitality 127
Important future ingredients by nutraceutical trend 127
Weight control 129
Blood sugar 129
Cardiovascular health 130
Joint and bone health 130
Beauty from within 130
Anti-ageing 130
Digestive health 131
Immunity 131
Cognitive health 131
Energy and vitality 131
Natural nutraceutical ingredients 132
Top herbal and botanical ingredients 133
NPD 134
Consumer education 135
Consumer demographics 137
Most innovative regions 138
Most innovative ingredient manufacturers 139
Most innovative food or drinks manufacturers 140
Chapter 7 Conclusions and future outlook 142
Summary 142
Introduction 142
The future market 142
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Index 145
List of Figures
Figure 2.1: En forma tea drink by Instituto Botanico La Selva SRL 30
Figure 2.2: Peace Mountain Natural Beverages – Skinny Water - Fitness Water 31
Figure 2.3: Kobayashi Ashitaba Aoju 32
Figure 2.4: Tracy Stern BeauTea 33
Figure 2.5: Sociedade da Ague de Luso – Formas Luso 34
Figure 2.6: Percentage of products launched in each category that are weight control, 2004-2005
42
Figure 2.7: Percentage share of weight control food and drinks launched, by region, 2004-2007 44
Figure 3.8: Bonkers Healthy Power Teas Super Skinny Tea 56
Figure 3.9: Life Sciences Corporation – Heart Chocolate 63
Figure 3.10: San Raphael Sambong Herbal Tea 64
Figure 3.11: Percentage of products launched in each category that are functional, 2004-2007 73
Figure 3.12: Percentage share of functional food and drinks launched, by region, 2004-2007 74
Figure 3.13: Percentage share of functional food and drinks launched, by trend, 2004-2007 75
Figure 4.14: Guylian Extra Chocolates 88
Figure 4.15: Bionic Energy Drink by Bionic Products 89
Figure 4.16: Ginseng Rush XXX by Blue Island 94
Figure 4.17: Percentage of products launched in each category that are wellness products, 2004-
2007 97
Figure 4.18: Percentage share of wellness food and drinks launched, by region, 2004-2007 99
Figure 4.19: Percentage share of wellness food and drinks launched, by trend, 2004-2007 100
Figure 5.20: Michael’s Programs Super Dense Defense Food Vegetarian Supplement 108
Figure 5.21: Eden Seasoned Sea Vegetables 110
Figure 5.22: Eckes-Granini Roter Multivitaminsaft 112
Figure 5.23: Percentage of products launched in each category that are natural and exotic, 2004-
2007 113
Figure 5.24: Percentage share of natural and exotic food and drinks launched, by region, 2004-2007
114
Figure 6.25: The importance of approaches to self-medication for consumers over the next 5 years
120
Figure 6.26: The importance of key health trends in food and drinks NPD over the next 5 years 121
Figure 6.27: The ingredient source that is currently most commonly used in food and drinks targeting particular ailments 123
Figure 6.28: The ingredient source that will experience the greatest increase in use in food and drinks targeting particular ailments over the next 5 years 124
Figure 6.29: The importance of natural nutraceutical ingredients in each of the health trends over the next 5 years 132
Figure 6.30: The level of impact different factors will have on nutraceuticals NPD over the next 5 years 134
Figure 6.31: Consumer education on nutraceutical ingredient and their effects 136
Figure 6.32: Demographic groups that will be the most important for the growth of the
nutraceuticals market over the next 5 years 137
Figure 6.33: Regions that lead in NPD of nutraceutical food and drinks 138
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List of Tables
Table 2.1: Prevalence of obesity in the six major markets by age ‘000, 2005 27
Table 2.2: Prevalence of overweight in the six major markets by age ‘000, 2005 28
Table 3.3: US functional food & drink market value, ($m), by category, 2001-2011 50
Table 3.4: Europe functional food & drink market value, ($m), by category, 2001-2011 51
Table 3.5: Europe functional food & drink market value, ($m), by country, 2001-2011 51
Table 3.6: Prevalence of Type 1 & 2 diabetes in the 7 major markets, 2004-5 52
Table 3.7: Prevalence of cardiovascular disease in the 7 major markets, ‘000, 2005 53
Table 3.8: Growth in Rheumatoid Arthritis statistics, 7 major markets ‘000s, 2003-2010 54
Table 4.9: Oral Beauty Supplements Market Value, US & Europe, ($m), 2001-2011 80
Table 4.10: Senior populations in Western Europe and the US, by age and country, (m), 2004-
2009 81
Table 4.11: Market value for the allergen and intolerance food market, ($m), 2001-2011 83
Table 4.12: Market value for the allergen and intolerance drink market, ($m), 2001-2011 83
Table 4.13: Consumers suffering from gut health problems, (m), Europe and US, 2001-2011 84
Table 4.14: Energy food and drinks, ($m), 2001-2011 85
Table 4.15: Prevalence of Alzheimer’s disease by gender and age 86
Table 5.16: Value of the US & European natural (excluding organic) food and drink market, by key product categories, ($bn), 2000-2010 106
Table 6.17: Top 5 ingredients most important in each nutraceutical trend in the next 5 years 128
Table 6.18: Top 5 herbal / botanical ingredients expected to increase in usage in nutraceutical food and drink over the next 5 years 133
Table 6.19: Top 5 ingredients manufacturers that are the most innovative in nutraceuticals 139
Table 6.20: Top 5 food and drinks manufacturers that drive innovation in nutraceuticals 140