Global Functional Foods and Drinks Industry

This report analyzes the worldwide markets for Functional Foods and Drinks in US$ Million by the following Product Segments: Cereals and Grains, Beverages, Dairy Products, Snacks, and Other Functional Foods. The report provides separate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific, Latin America, and Rest of World. Annual estimates and forecasts are provided for the period 2010 through 2018. A six-year historic analysis is also provided for these markets. The report profiles 320 companies including many key and niche players such as General Mills, Inc., Groupe Danone, Kellogg's Company, Nestlé S.A., PepsiCo, Inc., The Coca-Cola Company, The Unilever Group, and Yakult Honsha Co., Ltd. Market data and analytics are derived from primary and secondary research. Company profiles are primarily based upon search engine sources in the public domain.

Functional Food Industry in Asia

I. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONS
Study Reliability and Reporting Limitations I-1
Disclaimers I-2
Data Interpretation & Reporting Level I-2
Quantitative Techniques & Analytics I-3
Product Definitions and Scope of Study I-3
Cereals and Grains I-4
Beverages I-4
Dairy Products I-4
Snacks I-4
Other Functional Foods I-4


II. EXECUTIVE SUMMARY

1. INDUSTRY OVERVIEW II-1
Functional Foods and Drinks: A Prelude II-1
Current and Future Analysis II-2
Emerging Countries to Uncover True Potential II-2
Shift in Consumption Pattern Drives Growth in Developing
Countries II-3
Mature Markets: Down but Not Out II-3
Recession Tests Resilience of Functional Foods and Drinks Market II-3
Trends Vary Across Different Functional Product Segments II-4
Table 1: Number of New Product Launches in the Global
Functional Foods and Drinks Market (2007-2011) (includes
corresponding Graph/Chart) II-5
Regional Preferences Affect Market II-5
Gut Health Products - Dominant in Japan and Europe II-5
Stumbling Blocks for Functional Foods and Drinks II-5

2. OVERVIEW OF FUNCTIONAL FOODS & DRINKS SEGMENTS II-7
Functional Foods II-7
Cereals and Grains II-7
Breakfast Cereals II-7
Breads II-7
Dairy Products II-8
Omega-3 in Troubled Waters II-8
Snacks II-8
Bars II-9
Condiments and Complimentary Meal Items II-9
Functional Drinks II-9
Table 2: Global Functional Drinks Market (2010): Percentage
Share Breakdown of Consumption (Volume) by Segment - Sports
Drinks, Enriched Beverages, Energy Drinks and Nutraceuticals
(includes corresponding Graph/Chart) II-10
Regional Overview II-10
Table 3: World Market for Functional Drinks (2010):
Percentage Share Breakdown of Volume Sales by Geographic
Region (includes corresponding Graph/Chart) II-11
Future Prospects II-11
Functional Drinks Move to Mainstream II-11
Competitive Landscape II-11
Table 4: Leading Players in the Global Functional Drinks
Market (2010): Percentage Share Breakdown of Value Sales by
PepsiCo Inc., Coca-Cola Co., Red Bull GmbH, and Others
(includes corresponding Graph/Chart) II-12
An Overview of Select Functional Drinks Segments II-12
Sports Drinks Market II-12
Table 5: World Market for Sports Drinks (2011): Percentage
Share Breakdown of Value Sales by Geographic Region
(includes corresponding Graph/Chart) II-12
Sports Nutrition Drinks Enter Mainstream II-12
Table 6: Global Sports Nutrition Drinks Market (2011):
Percentage Breakdown of Retail Value Sales by Segment -
Protein Powder, Protein Bars, Protein RTD, and Others
(includes corresponding Graph/Chart) II-13
Technical Developments: Putting the Sports Nutrition Sector
in Overdrive II-13
Energy Drinks Market II-13
Table 7: World Market for Energy Drinks (2010): Percentage
Share Breakdown of Value Sales by Geographic Region
(includes corresponding Graph/Chart) II-14
Enhanced Drinks Market II-14
Nutraceutical Drinks Market II-15

3. MARKET DYNAMICS II-16
Aging Population - Potential for Growth II-16
Increasing Consumer Awareness Favors Market Growth II-16
Preventive Healthcare Pushing Demand for Functional Foods II-16
Cardiac and Digestive Health Products Dominate Functional
Foods Market II-17
Heart Health Growing on a Healthy Note II-17
Joint and Eye Health: Future Promising Areas II-17
Nutrition Science: An Evolutionary Proof II-17
Targeted Nutrition - The Next Generation II-18
Product Developments: Potential for Growth II-18
‘New’ is the Buzzword II-18
Research & Development: Important for Functional Foods Market II-19
Convenience: A Key Growth Driver II-19
Functional Foods: Targeting People with Stressful Lives II-19
Rising Sales in Functional Snacks & Confectionery Segment II-20
Soy Foods & Beverages: A Boon II-20
Increasing Prominence of Soybean Functional Foods II-20
Probiotics: Losing Sheen II-21
Complementary Affair - Probiotics and Dairy II-21
Mind/Mood Enhancing Products Gain Popularity II-21
Functional Beverages for Children Register Significant Growth II-22
Hybrid Drinks - Combining Functional and Soft Drinks II-22
Energy Shots - The Latest Buzz in Energy Drinks II-22
Recognition of Coffee as Functional Food II-23
PUFA - A Part of Regular Diet II-23
Vitamin Enriched Products: Boosting Market Growth II-23
Table 8: Global Market for Vitamins (2011): Percentage Share
Breakdown of Value Sales by Vitamin Type - Vitamin E, Vitamin
B-Group, Vitamin C, and Others (includes corresponding
Graph/Chart) II-23
Natural Vitamin E - A Cross-Sectional Exposition II-23
Organic Functional Foods - Crossover of Organics and
Functional Foods II-24
Growing Role of Functional Foods and Drinks in Weight Management II-24
Functional Products & Cosmetic Care II-25
“Health through Diet” - A Healthy Notation in Demand II-25
Innovative Marketing Strategies Define Product Success II-25
Private Label - Aggressive Foray II-25
Daily Dose Packaging System - Prominent Distributing Method II-26
Consolidation: Shaping the Market Landscape II-26
Merger & Acquisition Activity in the Functional Foods &
Drinks Market (2008-2012) II-26
Functional Food Paradox & Consolidation: A Glance at the Past II-27

4. ISSUES, CONCERNS AND OPPORTUNITIES II-28
Regulation Issues II-28
Regulations to Further Tighten II-28
Are Functional Foods Really Needed? II-28
Consumer Welfare Organizations Pin Down on Functional Foods -
Some Condemn Others Commend II-29
Key Challenges to the Makers of Functional Foods II-29
Issues in Probiotics Market II-30

5. PRODUCT OVERVIEW II-31
Definition of Functional Foods II-31
Extraction of Functional Foods II-32
From Plant Sources II-32
From Animal Sources II-33
History of Functional Foods II-34
Consumer Expectations from Functional Foods II-34
Dividing Catalyst for Functional Foods II-35
Nutraceutical II-35
Fortified Foods II-35
Medical Foods II-35
Dietary Supplements II-35
Safety Matters II-36
Absence of Regulations Leads to Safety Concerns II-36
Classification of Functional Foods II-37
Cereals and Grains II-37
Breakfast Cereals II-38
Breads II-38
Dairy Products II-38
Margarine and Spreads II-39
Yogurts II-39
Milk Products II-39
Other Dairy Products II-39
Beverages II-39
Tracing the Emergence of New Age Alternative Drinks II-40
Classification of New Age Functional Drinks II-40
Sports Drinks II-40
Energy Drinks II-41
Are Sports and Energy Drinks Synonymous? II-41
Enriched Drinks II-41
Nutraceutical Drinks II-41
Dairy Drinks II-42
Fruit Drinks II-42
Herbal Drinks II-42
Nutrient Enhanced Tea II-42
Other Drinks II-42
Snacks II-43
Bars II-43
Ingredient Profile for Meal Replacement Bars, High-Protein
or Bodybuilding Bars and Weight Loss or Diet Bars II-43
Energy Bars II-44
Ingredient Profile for Energy Bars II-44
Nutrition Bars II-44
Ingredient Profile for Nutrition Bars II-44
Candy and Gums II-44
Other Confections II-45
Other Functional Foods II-45
Ingredient Classification II-45
Dietary Fiber II-45
Fibersol-2 II-46
List of Sources Rich in Dietary Fiber and their Potential
Health Benefits II-46
Probiotics and Prebiotics II-46
List of Sources Rich in Probiotics and Prebiotics and their
Potential Health Benefits II-46
Omega-3 Fatty Acids II-46
List of Sources Rich in Omega-3 Fatty Acids and their
Potential Health Benefits II-47
Proteins II-47
Soy Protein II-47
List of Sources Rich in Soy Protein and their Potential
Health Benefits II-47
Whey Protein II-47
List of Sources Rich in Whey Protein and their Potential
Health Benefits II-48
Amino Acids II-48
List of Sources Rich in Amino Acids and their Potential
Health Benefits II-48
Botanicals II-48
List of Herbs, Spices, and Fruits and Vegetable Compounds
and their Potential Health Benefits II-49
Vitamins and Minerals II-49
List of Vitamins and Minerals and their Potential Health
Benefits II-50
Other ingredients II-50
List of Antioxidants and their Potential Health Benefits II-50
Caffeine II-50
Sugar II-51
Carbohydrates II-51
Trends Influencing Ingredient Market II-51
Ingredient Sector Flutters on Functional Foods Fad II-51
Probiotics Zoom Ahead II-51
Soy Foods - Boon to Women II-51
Lycopene Rich Tomatoes - A Natural Functional food II-51
PUFA, Phytosterols, Probiotics and Soy Products - Healthy Stuff II-51
Functional Foods - Applications II-52
Heart Health II-52
Food Components and Heart Health Benefit(s) II-52
Cancer Prevention II-53
Gut Health II-53
Bone Health II-53
Immune Health II-53
Oral/Dental Health II-54
Physical Performance Enhancers II-54
Mental Performance Enhancers II-54
Other Areas of Application II-55

6. REGULATORY ENVIRONMENT II-56
What is a Health Claim? II-56
Few Authorized Health Claims II-56
FFDCA Classification of Foods II-56
Classification of Foods by FDA II-57

7. PRODUCT INNOVATIONS/INTRODUCTIONS II-59
Live Better Brands Launches Way Better Snacks Series II-59
Grassland Unveils Organic Butter II-59
Adams Foods to Launch MU Sticks II-59
Kellogg to Launch Nutri-Grain II-59
Chellarams Rolls Out Real Butter Oil II-60
LANILAI® Unleashes New Range of Relaxation Drinks II-60
Jamba Juice Company Introduces Novel Fruit and Dairy Beverage II-60
Bear Naked Launches Autumn Blend and Almond Crisp Energy Cereals II-61
Kashi Launches Kashi Indigo Morning and Kashi Simply Maize
Organic Cereals II-61
WILD Flavors Launches Exotic Energizer and Power Energy Drinks II-62
Mr. Pink Collections Rolls Out Mr. Pink™ Ginseng Drink in
Hollywood II-62
Functional Foods Technology Launches PRE-POST WORKOUT BARZ II-62
Isle of Man Creamery Unveils New Cheese Under the “Mature
Cheese Light” Line II-63
Kellogg Launches New Product Ranges II-63
Danone Introduces B’lue II-64
Inventure Foods Unveils Garden Select Vegetable Crisps II-64
Britannia Launches TigerZor Badam and TigerZor Choco Drinks II-65
So-Vim Introduces New Original Super Food Concentrate, Soma
Greens & Grains II-65
Navitas Naturals Introduces New Power Snacks Line II-65
Rainforest Beverages Launches Two New Flavors with Redesigned
Packaging II-65
Bear Naked Launches New Cereals II-65
HYDRIVE Introduces Innovative Decaf Energy Drink II-65
PepsiCo Partners TGB to Introduce Glucose Beverage II-66
NextFood Unveils a New Probiotic Beverage Range II-66
Frucor to Introduce Energy Drink in Spain II-66
Perkey Jerkey to Launch New Snack II-67
Ganeden and Abunda Introduce Functional Chocolate Milk Mix II-67
Western Beverages Rolls Out Ginger Health Drink II-67
Kellogg Introduces Kellogg's FiberPlus™ Antioxidants Cereals II-67
Kashi Company Launches Golean Crisp Cereals II-68
Sara Lee Introduces New Bread with DHA Omega-3 II-68
Anlit Advanced Nutrition and Danisco Introduced Probiotic
Yogurt Bears II-68
Verdure Sciences Launches POMELLA® FG for Functional Foods II-68
NGIL Launches Collagen Peptide II-68
Nestle Introduces Nestle BEAUTY Bar Drinks II-68

8. PRODUCT INNOVATIONS/INTRODUCTIONS IN THE RECENT PAST - A
HISTORIC PERSPECTIVE BUILDER II-69
SoZo Global Launches New Functional Beverage II-69
Forbes Medi-Tech Unveils New Pineapple Juice II-69
Cooperativa Colanta to Roll Out Raisio’s Benecol Collection in
Colombia II-69
Future Group to Introduce Ten to Fifteen Brands per Year II-69
KavaZen® Unveils Functional Drinks II-69
Tipco Foods and Suntory Launches New Japanese Functional Drink II-70
Avatar Corporation Releases ProEssential Omega-3 Flax
Functional Food Ingredients II-70
Kellogg’s Launches New Special K® Bars for Women II-70
Fiave Introduces New Yogurt Drink II-70
Valio Rolls Out New Functional Yoghurt Drink II-70

9. RECENT INDUSTRY ACTIVITY II-71
Cott Acquires Suso’s Drinks Range II-71
Enerbrite Technologies Takes Over SBSI Nutraceuticals II-71
PepsiCo Forms Joint Venture with Theo Muller Group II-71
Jel Sert Takes Over Solis Brands II-72
Minerva Dairy Joins Hands with Ilios Dairy to Introduce Greek
Yogurt Butter II-72
Campbell Acquires Bolthouse II-72
SanCor and Mead Johnson Nutrition Enter into a Joint Venture II-73
Kellogg Takes Over Pringles® Business of Procter & Gamble II-73
Beverage Partners Worldwide Forms JV with Nestle and Coca-Cola II-73
B & G Foods Acquires Culver Specialty Brands of Unilever II-74
Attitude Drinks Enters into Distribution Partnership with JJ
Taylor II-74
ICL to Take Over Cosmocel II-74
Frutarom to Take Over the Spice Arm of Rieber & Son II-74
Tingyi Holding Enters into Strategic Agreement with PepsiCo II-75
Adina Enters into Distribution Agreement with DPSG II-75
Yogen Fruz Enters into Licensing Agreement with Jamba Juice II-75
Jamba Inks Licensing Agreement with Bare Fruit II-75
Pulse, PBC Ink Exclusive Distribution Deal II-76
ChromaDex® Inks Deal with Organic Revolution Worldwide II-76
Skinny Nutritional Inks Distribution Agreement with Classic
Distributing & Beverage Group II-76
BeBevCo and Ki Sales Enter into Partnership II-77
Amrutanjan Group Takes Over Siva’s Soft Drink II-77
BioExx Collaborates with Century Foods II-77
Cott Enters into Agreement with ChromaDex II-78
Nutrastar Enters into Distribution Agreement with Chinese
Distributor II-78
GNC Enters into Exclusive Licensing Deal with Shadow Beverages II-78
Attitude Drinks Inks Beverage Distribution Deal with Lone Star II-78
Lotte Chilsung to Merge with Lotte Liquor II-79
Nestle Acquires Majority Stake in Yinlu Foods II-79
Kirin Enters into Joint Venture with Soft Drinks Company China
Resources II-79
PepsiCo Takes Over Majority Stake in Wimm-Bill-Dann Foods II-79
Wimm-Bill-Dann Takes Over Moloko Isilkulya II-80
Iconic Brands to Acquire Specialty Beverage and Supplement II-80
Cott to Acquire Cliffstar II-80
The Coca-Cola Company Collaborates with Chromocell II-80
Jamba Juice Enters into Licensing Agreement with Zola II-81
Nestle USA Partners with Jamba Juice II-81
Frontier Beverage Enters into Distribution Agreement with
Canada Dry Bottling II-81
Provita Inks Distribution Agreement with BYB Brands II-81
JBS and Jack Link's Beef Jerky Join Forces to Make Meat Snacks II-82
PepsiCo Collaborates with Senomyx II-82
Lotte Chulsung Acquires Stake in PCPPI II-82
Coca Cola Takes Over Nidan Juices II-83
Atlantic Grupa Acquires Droga Kolinska II-83
Kraft Foods Takes Over Cadbury plc II-83
Medisun Pharmaceutical JSC Divests Stake to DHG II-83
BioGaia Inks Dealership Agreement with NIPPON ACCESS II-83
Nestlé Forays into Clinical Nutritional Business through
Acquisition of Vitaflo II-84

10. CORPORATE ACTIVITY IN THE RECENT PAST - A HISTORIC PERSPECTIVE
BUILDER II-85
GlaxoSmithKline and Uni-President China Holdings Ink Agreement II-85
Bunge Acquires Margarine Business of Raisio II-85
Otsuka Pharmaceuticals to Take Over Nutrition & Santé II-85
Kyowa Hakko Food Specialties Merges with Kirin Food-Tech II-85
Himalya International to Establish Production Facility in India II-85
Hangzhou Tianmushan to Acquire Xinfu Pharmaceutical Factory
from Zhejiang Hangzhou II-86
BAIL to Foray into Functional Foods Business II-86
Ralcorp Holdings to Take Over Kraft Foods’ Post Cereals
Business' Assets II-86
Kraft Foods to Sell Biscuits and Chocolate Brands to Comply
with Regulatory Requirements II-86
Gourmetceuticals Collaborates with Curamedics Pharmaceuticals II-86
Forbes Medi-Tech Sells Pharma Assets and Business Unit to
Transition Therapeutics II-87
NBTY Takes Over Julian Graves II-87
Olympus Partners Buys Out Ann's House of Nuts II-87
Nutripure Beverages to Take Over XND Technologies II-87
Ospraie Management Takes Over ConAgra Trade Group II-87
Kellogg Snaps Up United Bakers II-88
New Life Scientific Takes Over EBR Wellness Products II-88
WGL Entertainment Purchases Heathrow Enterprises II-88
PepsiCo and Strauss Group Establish Joint Venture In North
America II-88
Coca-Cola and illycaffè Establish International Joint Venture II-88
Coca-Cola Agrees to Buy 40% Interest in Honest Tea II-88
Pepsi to Acquire Three-Fourths Stake in JSC Lebedyansky II-89
Unilever to Take Over Inmarko’s Ice Cream Business in Russia II-89
Ruchi Soya Forms Technology Deal with NutriJoy of the US II-89

11. FOCUS ON SELECT GLOBAL PLAYERS II-90
General Mills, Inc. (USA) II-90
Groupe Danone SA (France) II-90
Kellogg Company (USA) II-91
Nestlé S.A. (Switzerland) II-91
PepsiCo, Inc (USA) II-91
The Coca-Cola Company (USA) II-92
The Unilever Group (UK/Netherlands) II-92
Yakult Honsha Co., Ltd. (Japan) II-92

12. GLOBAL MARKET PERSPECTIVE II-94
Table 9: World Recent Past, Current & Future Analysis for
Functional Foods and Drinks by Geographic Region - US, Canada,
Japan, Europe, Asia-Pacific (excluding Japan), Latin America
and Rest of World Markets Independently Analyzed with Annual
Sales Figures in US$ Million for Years 2010 through 2018
(includes corresponding Graph/Chart) II-94

Table 10: World Historic Review for Functional Foods and
Drinks by Geographic Region - US, Canada, Japan, Europe,
Asia-Pacific (excluding Japan), Latin America, and Rest of
World Markets Independently Analyzed with Annual Sales Figures
in US$ Million for Years 2004 through 2009 (includes
corresponding Graph/Chart) II-95

Table 11: World 15-Year Perspective for Functional Foods and
Drinks by Geographic Region - Percentage Breakdown of Dollar
Sales for US, Canada, Japan, Europe, Asia-Pacific (excluding
Japan), Latin America and Rest of World Markets for Years
2004, 2011, and 2018 (includes corresponding Graph/Chart) II-96

Table 12: World Recent Past, Current & Future Analysis for
Functional Cereals and Grains by Geographic Region - US,
Canada, Japan, Europe, Asia-Pacific (excluding Japan), Latin
America and Rest of World Markets Independently Analyzed with
Annual Sales Figures in US$ Million for Years 2010 through
2018 (includes corresponding Graph/Chart) II-97

Table 13: World Historic Review for Functional Cereals and
Grains by Geographic Region - US, Canada, Japan, Europe,
Asia-Pacific (excluding Japan), Latin America and Rest of
World Markets Independently Analyzed with Annual Sales Figures
in US$ Million for Years 2004 through 2009 (includes
corresponding Graph/Chart) II-98

Table 14: World 15-Year Perspective for Functional Cereals and
Grains by Geographic Region - Percentage Breakdown of Dollar
Sales for US, Canada, Japan, Europe, Asia-Pacific (excluding
Japan), Latin America and Rest of World Markets for Years
2004, 2011, and 2018 (includes corresponding Graph/Chart) II-99

Table 15: World Recent Past, Current & Future Analysis for
Functional Dairy Products by Geographic Region - US, Canada,
Japan, Europe, Asia-Pacific (excluding Japan), Latin America
and Rest of World Markets Independently Analyzed with Annual
Sales Figures in US$ Million for Years 2010 through 2018
(includes corresponding Graph/Chart) II-100

Table 16: World Historic Review for Functional Dairy Products
by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific
(excluding Japan), Latin America and Rest of World Markets
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2004 through 2009 (includes corresponding
Graph/Chart) II-101

Table 17: World 15-Year Perspective for Functional Dairy
Products by Geographic Region - Percentage Breakdown of Dollar
Sales for US, Canada, Japan, Europe, Asia-Pacific (excluding
Japan), Latin America and Rest of World Markets for Years
2004, 2011, and 2018 (includes corresponding Graph/Chart) II-102

Table 18: World Recent Past, Current & Future Analysis for
Functional Beverages by Geographic Region - US, Canada, Japan,
Europe, Asia-Pacific (excluding Japan), Latin America and Rest
of World Markets Independently Analyzed with Annual Sales
Figures in US$ Million for Years 2010 through 2018 (includes
corresponding Graph/Chart) II-103

Table 19: World Historic Review for Functional Beverages by
Geographic Region - US, Canada, Japan, Europe, Asia-Pacific
(excluding Japan), Latin America and Rest of World Markets
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2004 through 2009 (includes corresponding
Graph/Chart) II-104

Table 20: World 15-Year Perspective for Functional Beverages
by Geographic Region - Percentage Breakdown of Dollar Sales
for US, Canada, Japan, Europe, Asia-Pacific (excluding Japan),
Latin America and Rest of World Markets for Years 2004, 2011,
and 2018 (includes corresponding Graph/Chart) II-105

Table 21: World Recent Past, Current & Future Analysis for
Functional Snacks by Geographic Region - US, Canada, Japan,
Europe, Asia-Pacific (excluding Japan), Latin America and Rest
of World Markets Independently Analyzed with Annual Sales
Figures in US$ Million for Years 2010 through 2018 (includes
corresponding Graph/Chart) II-106

Table 22: World Historic Review for Functional Snacks by
Geographic Region - US, Canada, Japan, Europe, Asia-Pacific
(excluding Japan), Latin America and Rest of World Markets
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2004 through 2009 (includes corresponding
Graph/Chart) II-107

Table 23: World 15-Year Perspective for Functional Snacks by
Geographic Region - Percentage Breakdown of Dollar Sales for
US, Canada, Japan, Europe, Asia-Pacific (excluding Japan),
Latin America and Rest of World Markets for Years 2004, 2011,
and 2018 (includes corresponding Graph/Chart) II-108

Table 24: World Recent Past, Current & Future Analysis for
Other Functional Foods by Geographic Region - US, Canada,
Japan, Europe, Asia-Pacific (excluding Japan), Latin America
and Rest of World Markets Independently Analyzed with Annual
Sales Figures in US$ Million for Years 2010 through 2018
(includes corresponding Graph/Chart) II-109

Table 25: World Historic Review for Other Functional Foods by
Geographic Region - US, Canada, Japan, Europe, Asia-Pacific
(excluding Japan), Latin America and Rest of World Markets
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2004 through 2009 (includes corresponding
Graph/Chart) II-110

Table 26: World 15-Year Perspective for Other Functional Foods
by Geographic Region - Percentage Breakdown of Dollar Sales
for US, Canada, Japan, Europe, Asia-Pacific (excluding Japan),
Latin America and Rest of World Markets for Years 2004, 2011,
and 2018 (includes corresponding Graph/Chart) II-111


III. MARKET

1. THE UNITED STATES III-1
A.Market Analysis III-1
Outlook III-1
Market Overview III-1
Recession Slows Down Demand for Functional Foods & Drinks
Market III-2
Market Scenario Post Recession III-2
Fact File for the Functional Foods and Drinks Market III-2
Factors Driving Growth III-3
Factors Restraining Growth III-3
Functional Foods Market III-4
Profile of American Functional Food Consumers III-4
Key Statistical Data III-5
Table 27: Leading Brands of Nutritional Snacks in the US
(2012): Percentage Share Breakdown of Value Sales for
Planters, Planters Nutrition, Snack Club, Frito-Lay,
Private Label and Others (includes corresponding
Graph/Chart) III-5

Table 28: Leading Players in the US Nutritional Snacks
Market (2012): Percentage Share Breakdown of Value Sales
for Kraft Foods, Diamond Foods, Frito-Lay, Snak Club,
Kar’s Nut, Private Label and Others (includes
corresponding Graph/Chart) III-5
Protein Ingredients Market III-5
US Mineral Fortification Market III-6
Table 29: Mineral Fortification Market in the US (2010):
Percentage Share Breakdown of Value Sales for Fortified
Mineral Type - Calcium, Iron, and Magnesium (includes
corresponding Graph/Chart) III-6
Functional Drinks Market III-6
Table 30: Functional Drinks Market in the US (2011):
Percentage Share Breakdown of Consumption (Value) by
Segment - Energy Drinks, Sports Drinks, and Nutraceuticals
(includes corresponding Graph/Chart) III-7

Table 31: Leading Players in the US Functional Drinks
Market (2010): Percentage Share Breakdown of Value Sales
for PepsiCo, Red Bull, Coca-Cola, and Others (includes
corresponding Graph/Chart) III-7

Table 32: Leading Fortified/Functional Drinks in the US
(2010): Percentage Share Breakdown of Sales for Gatorade,
Glaceau, Red Bull, Monster, Minute Maid, Tropicana and
Others (includes corresponding Graph/Chart) III-7
Reaching the Mainstream III-8
Sports and Performance Beverages III-8
Fresh Fruit Juices and Herbal Drinks III-8
Energy Drinks III-9
Table 33: Leading Energy Drink Brands in the US (2012):
Percentage Share Breakdown of Value Sales for Red Bull,
Monster Energy, Rockstar, NOS, Java Monster, Amp, Full
Throttle and Others (includes corresponding Graph/Chart) III-9

Table 34: Leading Players in the Energy Drinks Market in
the US (2011): Percentage Share Breakdown of Value Sales
by Red Bull North America, Hansen Natural, Rockstar
International, PepsiCo, North America Coffee Partnership,
Coca-Cola Co., Private Label and Others (includes
corresponding Graph/Chart) III-10

Table 35: Leading Energy Shot Brands in the US (2012):
Percentage Share Breakdown of Value Sales for 5 Hour
Energy, Stacker2 6 Hour Power, Red Bull, 5 Hour Energy
Extra Strength, Monster Hitman and Others (includes
corresponding Graph/Chart) III-10
Soy III-10
Tea III-11
Enhanced Water III-11
Market Trends III-11
Baby Boomers - A Prime Target for Functional Food Makers III-11
Functional Foods for Children - Larger Scope III-11
Functional Foods Affects Demand for Supplements III-12
Consumer Health Concerns - Major Target Areas III-12
Heart Health - A Major Area of Concern for Americans III-12
Anxiety and Stress Relieving Products Surge in Demand III-12
Teens Taste for Functional Drinks - Gateway to New “Youth
Market’ III-13
Functional Food for Women - A Potential Niche III-13
Soya - New Protein Favorite for Americans III-13
Energy Bars - A Favorite of Outdoor Active Consumer III-13
Moving to Mainstream - Energy Bars Energize Souls and Sales III-14
Good Times Ahead for Margarines III-14
Dairy Products Finally Find Appeal with Americans III-14
Busy Birds Do Brisk Business for Brews III-14
Consumer Confusion Affects Sales at Drug Stores III-15
An Insight into How ‘Good for You’ Functional Foods Turned
into ‘Bad for You’ Foods III-15
Distribution Network III-15
Regulatory Environment III-16
Food and Drug Administration (FDA) III-16
Consumer Health Information for Better Nutrition Initiative
(CHIBNI) III-16
Dietary Supplement Health and Education Act (DSHEA) III-17
Functional Foods and Dietary Supplements: Comparison of
Regulations III-18
Federal Trade Commission (FTC) III-18
Nutrition Labeling and Education Act (NLEA) III-18
FDA Modernization Act (FDAMA) III-19
Federal Food, Drug and Cosmetic Act (FDCA) III-19
Generally Recognized As Safe (GRAS) III-20
Product Launches III-20
Strategic Corporate Developments III-26
Key Players III-33
B.Market Analytics III-35
Table 36: US Recent Past, Current & Future Analysis for
Functional Foods and Drinks by Product Segment - Cereals and
Grains, Dairy Products, Beverages, Snacks, and Other
Functional Foods Markets Independently Analyzed with Annual
Sales Figures in US$ Million for Years 2010 through 2018
(includes corresponding Graph/Chart) III-35

Table 37: US Historic Review for Functional Foods and Drinks
by Product Segment - Cereals and Grains, Dairy Products,
Beverages, Snacks, and Other Functional Foods Markets
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2004 through 2009 (includes corresponding
Graph/Chart) III-36

Table 38: US 15-Year Perspective for Functional Foods and
Drinks by Product Segment - Percentage Breakdown of Dollar
Sales for Cereals and Grains, Dairy Products, Beverages,
Snacks, and Other Functional Foods Markets for Years 2004,
2011, and 2018 (includes corresponding Graph/Chart) III-37

2. CANADA III-38
A.Market Analysis III-38
Outlook III-38
Market Overview III-38
Research & Development III-39
Regulatory Environment III-39
Definition III-39
Food and Drugs Act and Health Canada III-40
Natural Health Product Regulations III-40
Product Launch III-40
Strategic Corporate Developments III-41
B.Market Analytics III-44
Table 39: Canadian Recent Past, Current & Future Analysis
for Functional Foods and Drinks by Product Segment - Cereals
and Grains, Dairy Products, Beverages, Snacks, and Other
Functional Foods Markets Independently Analyzed with Annual
Sales Figures in US$ Million for Years 2010 through 2018
(includes corresponding Graph/Chart) III-44

Table 40: Canadian Historic Review for Functional Foods and
Drinks by Product Segment - Cereals and Grains, Dairy
Products, Beverages, Snacks, and Other Functional Foods
Markets Independently Analyzed with Annual Sales Figures in
US$ Million for Years 2004 through 2009 (includes
corresponding Graph/Chart) III-45

Table 41: Canadian 15-Year Perspective for Functional Foods
and Drinks by Product Segment - Percentage Breakdown of
Dollar Sales for Cereals and Grains, Dairy Products,
Beverages, Snacks, and Other Functional Foods Markets for
Years 2004, 2011, and 2018 (includes corresponding
Graph/Chart) III-46

3. JAPAN III-47
A.Market Analysis III-47
Outlook III-47
An Advanced Functional Foods Market III-47
Impact of Economic Volatility on Functional Foods Market III-47
Future Prospects III-48
Health - Key Factor Influencing Market Dynamics III-49
Factors Influencing Growth III-49
Key Statistics III-50
Table 42: Sports Nutrition Market in Japan (2011):
Percentage Share Breakdown of Retail Sales by Segment -
Protein Powder, Protein Bars, Protein Ready to Drink, and
Others (includes corresponding Graph/Chart) III-50

Table 43: Leading Nutritional Products in Japan (2010):
Percentage Share Breakdown of Value Sales by Brand - Amino
Vital, Savas, DNS, Weider, Kentai and Others (includes
corresponding Graph/Chart) III-51

Table 44: Fortified Functional Foods Market in Japan
(2010): Percentage Share Breakdown of Retail Sales by
Functional Benefits - General Health and Well-being, Heart
Health, Digestive Health, and Energy Boost (includes
corresponding Graph/Chart) III-51
Manufacturers Focus on Global Market III-51
European Products Find Favor in Japan III-51
Functional Beverages Brim in Japan III-52
Table 45: Leading Players in the Japanese Functional Drinks
Market (2010): Percentage Share Breakdown of Sales by
Coca-Cola Co., Otsuka Pharmaceutical, Suntory and Others
(includes corresponding Graph/Chart) III-52
Nutraceuticals Enjoy Strong Growth III-52
Functional Drinks - Under a Spate of Bother III-53
Elders - The Best Target for Japanese Food Makers III-53
Distribution Network III-53
Table 46: Fortified Functional Foods by Distribution
Channel in Japan (2011): Percentage Share Breakdown of
Sales for Supermarkets/ Hypermarkets, Online Stores,
Grocery Retailers, Forecourt Retailers, Convenience Stores,
Home Shopping, Non-Grocery Stores, and Others (includes
corresponding Graph/Chart) III-54
Regulatory Environment III-54
Definition III-54
FOSHU (Foods For Specified Health Uses) III-54
Yakult Honsha Co., Ltd. - A Key Player III-55
B.Market Analytics III-56
Table 47: Japanese Recent Past, Current & Future Analysis
for Functional Foods and Drinks by Product Segment - Cereals
and Grains, Dairy Products, Beverages, Snacks, and Other
Functional Foods Markets Independently Analyzed with Annual
Sales Figures in US$ Million for Years 2010 through 2018
(includes corresponding Graph/Chart) III-56

Table 48: Japanese Historic Review for Functional Foods and
Drinks by Product Segment - Cereals and Grains, Dairy
Products, Beverages, Snacks, and Other Functional Foods
Markets Independently Analyzed with Annual Sales Figures in
US$ Million for Years 2004 through 2009 (includes
corresponding Graph/Chart) III-57

Table 49: Japanese 15-Year Perspective for Functional Foods
and Drinks by Product Segment - Percentage Breakdown of
Dollar Sales for Cereals and Grains, Dairy Products,
Beverages, Snacks, and Other Functional Foods Markets for
Years 2004, 2011, and 2018 (includes corresponding
Graph/Chart) III-58

4. EUROPE III-59
A.Market Analysis III-59
Outlook III-59
Market Overview III-59
Functional Drinks Market III-60
Table 50: Functional Drinks Market in Western Europe
(2010): Percentage Share Breakdown of Volume Sales by
Product Segment - Enriched Drinks, Sports Drinks, Energy
Drinks, and Nutraceuticals (includes corresponding
Graph/Chart) III-61
Eastern Europe: A Key Growth Region for Functional Dairy
Drinks III-61
Market Trends III-61
Changing Demographics to Propel Market Growth III-61
Changing Attitudes to Help Sales Heave III-61
Dairy: The Dearest for Europeans III-61
Yogurts - Driven by Innovation III-62
Market for Enzymes in Food Applications III-62
Protein Ingredient Market in Europe III-62
Sports Drinks Lack Sporting Appeal with Europeans III-62
Heart Health - The New Functional Dairy Target III-63
Europeans Gain Flavor to Nutraceutical Drinks III-63
Regulatory Environment III-63
B.Market Analytics III-64
Table 51: European Recent Past, Current & Future Analysis
for Functional Foods and Drinks by Geographic Region -
France, Germany, Italy, UK, Spain, and Rest of Europe
Markets Independently Analyzed with Annual Sales Figures in
US$ Million for Years 2010 through 2018 (includes
corresponding Graph/Chart) III-64

Table 52: European Historic Review for Functional Foods and
Drinks by Geographic Region - France, Germany, Italy, UK,
Spain, and Rest of Europe Markets Independently Analyzed
with Annual Sales Figures in US$ Million for Years 2004
through 2009 (includes corresponding Graph/Chart) III-65

Table 53: European Recent Past, Current & Future Analysis
for Functional Foods and Drinks by Product Segment - Cereals
and Grains, Dairy Products, Beverages, Snacks, and Other
Functional Foods Markets Independently Analyzed with Annual
Sales Figures in US$ Million for Years 2010 through 2018
(includes corresponding Graph/Chart) III-66

Table 54: European Historic Review for Functional Foods and
Drinks by Product Segment - Cereals and Grains, Dairy
Products, Beverages, Snacks, and Other Functional Foods
Markets Independently Analyzed with Annual Sales Figures in
US$ Million for Years 2004 through 2009 (includes
corresponding Graph/Chart) III-67

Table 55: European 15-Year Perspective for Functional Foods
and Drinks by Region - Percentage Breakdown of Dollar Sales
for France, Germany, Italy, UK, Spain, and Rest of Europe
Markets for Years 2004, 2011, and 2018 (includes
corresponding Graph/Chart) III-68

Table 56: European 15-Year Perspective for Functional Foods
and Drinks by Product Segment - Percentage Breakdown of
Dollar Sales for Cereals and Grains, Dairy Products,
Beverages, Snacks, and Other Functional Foods for Years
2004, 2011, and 2018 (includes corresponding Graph/Chart) III-69

4a. FRANCE III-70
A.Market Analysis III-70
Outlook III-70
Functional Foods Market III-70
Functional Drinks Market III-70
Table 57: Leading Players in the French Functional Drinks
Market (2010): Percentage Share Breakdown of Value Sales
for Group Danone, Nutrition and Sante, Luxlait Association
Agricole and Others (includes corresponding Graph/Chart) III-70

Table 58: Leading Players in the French Energy Drinks
Market (2010): Percentage Share Breakdown of Value Sales
for Red Bull France SASU, Coca-Cola Enterprises, Karlsbräu
France, Nutrition and Santé SAS, Distriborg France and
Others (includes corresponding Graph/Chart) III-71
Functional Confections Market in France III-71
Market Trends III-71
Risk of Diseases Fuels Functional Food Sales III-71
French Favor Low Cholesterol III-72
High Incidence of ‘Bad’ Cholesterol Pumps Sales of
Functional Fats III-72
Taste Tops Need for Nutrition and Health Hazards III-72
BSE Crisis and Misleading Claims Keep French Off the
Functional Foods Shelves III-72
Most Desired Health Claims III-72
Groupe Danone SA - A Key Player III-72
B.Market Analytics III-74
Table 59: French Recent Past, Current & Future Analysis for
Functional Foods and Drinks by Product Segment - Cereals and
Grains, Dairy Products, Beverages, Snacks, and Other
Functional Foods Markets Independently Analyzed with Annual
Sales Figures in US$ Million for Years 2010 through 2018
(includes corresponding Graph/Chart) III-74

Table 60: French Historic Review for Functional Foods and
Drinks by Product Segment - Cereals and Grains, Dairy
Products, Beverages, Snacks, and Other Functional Foods
Markets Independently Analyzed with Annual Sales Figures in
US$ Million for Years 2004 through 2009 (includes
corresponding Graph/Chart) III-75

Table 61: French 15-Year Perspective for Functional Foods by
Product Segment - Percentage Breakdown of Dollar Sales for
Cereals and Grains, Dairy Products, Beverages, Snacks, and
Other Functional Foods Markets for Years 2004, 2011, and
2018 (includes corresponding Graph/Chart) III-76

4b. GERMANY III-77
A.Market Analysis III-77
Outlook III-77
Functional Foods and Drinks Market III-77
Market Trends III-78
Functional Breads Receive Optimistic Response III-78
Dairy Dreams Come True in the German Market III-78
Functional Drinks - A Fragmented Market III-78
Table 62: Leading Players in the German Functional Drinks
Market (2010): Percentage Share Breakdown of Value Sales
for PepsiCo, Red Bull, Coca-Cola and Others (includes
corresponding Graph/Chart) III-78
Health and Convenience - Not Enough for Germans III-79
B.Market Analytics III-80
Table 63: German Recent Past, Current & Future Analysis for
Functional Foods and Drinks by Product Segment - Cereals and
Grains, Dairy Products, Beverages, Snacks, and Other
Functional Foods Markets Independently Analyzed with Annual
Sales Figures in US$ Million for Years 2010 through 2018
(includes corresponding Graph/Chart) III-80

Table 64: German Historic Review for Functional Foods and
Drinks by Product Segment - Cereals and Grains, Dairy
Products, Beverages, Snacks, and Other Functional Foods
Markets Independently Analyzed with Annual Sales Figures in
US$ Million for Years 2004 through 2009 (includes
corresponding Graph/Chart) III-81

Table 65: German 15-Year Perspective for Functional Foods by
Product Segment - Percentage Breakdown of Dollar Sales for
Cereals and Grains, Dairy Products, Beverages, Snacks, and
Other Functional Foods Markets for Years 2004, 2011, and
2018 (includes corresponding Graph/Chart) III-82

4c. ITALY III-83
A.Market Analysis III-83
Overview III-83
Insipid Tasting Foods Receive Bad Response III-83
B.Market Analytics III-84
Table 66: Italian Recent Past, Current & Future Analysis for
Functional Foods and Drinks by Product Segment - Cereals and
Grains, Dairy Products, Beverages, Snacks, and Other
Functional Foods Markets Independently Analyzed with Annual
Sales Figures in US$ Million for Years 2010 through 2018
(includes corresponding Graph/Chart) III-84

Table 67: Italian Historic Review for Functional Foods and
Drinks by Product Segment - Cereals and Grains, Dairy
Products, Beverages, Snacks, and Other Functional Foods
Markets Independently Analyzed with Annual Sales Figures in
US$ Million for Years 2004 through 2009 (includes
corresponding Graph/Chart) III-85

Table 68: Italian 15-Year Perspective for Functional Foods
by Product Segment - Percentage Breakdown of Dollar Sales
for Cereals and Grains, Dairy Products, Beverages, Snacks,
and Other Functional Foods Markets for Years 2004, 2011, and
2018 (includes corresponding Graph/Chart) III-86

4d. THE UNITED KINGDOM III-87
A.Market Analysis III-87
Outlook III-87
Functional Foods and Drinks Market III-87
Table 69: Functional Foods and Drinks Market in the UK
(2010): Percentage Share Breakdown of Retail Sales by
Functional Benefits - General Health and Well-being,
Digestive Health, Heart Health, Energy Boost, and Others
(includes corresponding Graph/Chart) III-87
Growth Drivers III-88
Growth Restraints III-88
Market Trends III-88
Functional Confectionery - Riding on Growing Health Awareness III-88
Yogurts Pep Up Functional Food Market III-88
Functional Food Consumers to Grow in Number III-89
Britons Beseech for Energy Boosters