World Functional Foods and Drinks Market

World Functional Foods and Drinks Market

This report analyzes the worldwide markets for Functional Foods and Drinks in US$ Million. The major product segments analyzed are 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 forecasts are provided for each region for the period of 2000 through 2015. The report profiles 368 companies including many key and niche players worldwide such as General Mills, Inc., Groupe Danone, Kellogg’s Company, Nestle, PepsiCo, The Coca-Cola Company, Unilever Group, and Yakult Honsha Co., Ltd. Market data and analytics are derived from primary and secondary research. Company profiles are mostly extracted from URL research and reported select online sources.

FUNCTIONAL FOODS AND DRINKS MCP-1080
A GLOBAL STRATEGIC BUSINESS REPORT


CONTENTS


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-3
Beverages I-3
Dairy Products I-4
Snacks I-4
Other Functional Foods I-4


II. EXECUTIVE SUMMARY

1. Industry Outlook II-1
Functional Foods and Drinks Market II-1
Growth for Functional Foods II-2
Increasing Aged Population II-2
Joint and Eye-Health: Future Promising Areas II-2
Nutrition Science: An Evolutionary Proof II-2
Potential Bioterrorism: Posing Threats II-3
Product Developments: Offer Escalating Growth Opportunities II-3

2. Market Overview II-4
Increasing Consumer Awareness II-4
Factors Contributing to the Growth of Functional Foods II-4
Soy Foods & Beverages: A Boon II-4
Vitamin Enriched Products: Boosting Market Growth II-5
Table 1: Global market for Vitamins (2004-2006): Percentage
Breakdown of Value Sales by Vitamin Type - Vitamin E, Vitamin
B-Group, Vitamin C and Others (includes corresponding
Graph/Chart) II-5
Natural Vitamin E - A Cross-Sectional Exposition II-5
“Health Through Diet” - A Healthy Notation in Demand II-6
Stumbling Blocks II-6
Major Growth Delimiters II-6
Market Makers - Players and Brands II-6
Leading Players in the Global Functional Foods and Drinks
Market (Recent Past) II-7

3. Functional Foods and Drinks Market II-9
Functional Foods II-9
Cereals and Grains II-9
Breakfast Cereals II-9
Breads II-10
Dairy Products II-10
Snacks II-10
Bars II-10
Condiments and Complimentary Meal Items II-11
Functional Drinks II-11
Table 2: Global Functional Drinks Market (2008): Percentage
Breakdown of Consumption (Volume) by Segment - Sports Drinks,
Energy Drinks and Elixirs (includes corresponding
Graph/Chart) II-11

Table 3: Global Bottled Water Market (2008): Percentage
Breakdown of Consumption (Volume) by Segment - Still Bottled
Water, Carbonated Bottled Water, Flavored Bottled Water, and
Functional Bottled Water (includes corresponding Graph/Chart) II-12

Table 4: Global Bottled Water Market (2006): Percentage
Breakdown of Dollar Sales by Brand - Aquafina, Dasani, Poland
Spring, Glaceau Vitaminwater, Propel, Arrowhead, Deer Park,
Crystal Geyser, Nestle Pure Life and Others (includes
corresponding Graph/Chart) II-12
Regional Footage II-12
Sports Drinks Market II-12
Table 5: World Market for Sports Drinks (2008): Percentage
Share Breakdown of Dollar Sales in Select Geographic Markets
(includes corresponding Graph/Chart) II-13

Table 6: Leading Brands in the Global Sport Drinks Market
(2005 & 2006): Percentage Breakdown of Value Sales for
Gatorade, Powerade, Gatorade Frost, Gatorade Fierce,
Gatorade X Factor, Gatorade All Stars and Others (includes
corresponding Graph/Chart) II-13
Energy Drinks Market II-13
Table 7: World Market for Energy Drinks (2008): Percentage
Breakdown of Dollar Sales in Select Geographic Markets
(includes corresponding Graph/Chart) II-14
Popular Brands II-14
Table 8: Leading Brands in the Global Energy Drinks Market
(2005 & 2006): Percentage Breakdown of Value Sales by Red
Bull, Rock star, Monster Energy, SoBe Adrenaline Rush, Amp,
SoBe No Fear and Others (includes corresponding
Graph/Chart) II-14
Enhanced Drinks Market II-15
Nutraceutical Drinks Market II-15
Well-Known Brands II-15

4. Trends and Trend Setters II-16
Health, Convenience, Pleasure - Trends Affecting the Market II-16
Functional Food Paradox: Leading to Market Consolidation II-16
‘New’ is the Buzzword II-16
Daily Dose Packaging System - Prominent Distribution Method II-17
Recognition of Coffee as Functional Food II-17
PUFA - A Part of Regular Diet II-17
Functional Foods - A Gift for CVD Patients II-18
“Heart Health” Growing on a Healthy Note II-18
Functional Foods Strikes Consumer Market II-18
Gut Health - Dominant in Japan and Europe II-18
Complementary Affair - Probiotics and Dairy II-19
A Promising Future in Cosmetic Care II-19
Regional Preferences Affect Market II-19
Scope of Other Sectors in the Functional Foods Market II-19
Research & Development: Determines the Future of Functional Foods II-20
Organic Functional Foods - Crossover of Organics and
Functional Foods II-20
Functional Food - Key Player in Reducing Weight II-20
Performance Products Sought to Enhance Lifestyle II-20
Emergence of “Second Division” Health Concerns II-20
Trends by Sector II-21
Cereals and Breads II-21
Breads - Most Profitable Product II-21
Dairy Foods II-21
Probiotics Add Flavor to Dairy Drinks II-21
Beverages II-21
Functional Drinks Move to Mainstream II-21
Functional Drinks Steer Soft Drinks Growth II-21
Japanese Notion “Health Through Food” Guides Market II-22
Herbal Drinks - Value Added Second Generation Product II-22
Nutrient Enhanced Drinks Stimulate Consumer Appetite II-22
Smooth Sail for Functional Smoothies II-22
Functional Drinks - A Prospective Field for PET Packers II-22
From Soy to Rice: Non-Dairy Drinks Milking the Market II-22
Snacks II-23
Functional Snacks - Emerging Winner II-23
Health Claims on Snacks - Opportunity Galore II-23
Functional Confections Catch On - Prosperity on Cards II-23

5. Issues, Concerns and Opportunities II-24
Are Functional Foods Really what we Want? II-24
Consumer Welfare Organizations Pin Down on Functional Foods -
While Some Condemn, Others Commend II-24
Key Challenges to the Makers of Functional Foods II-24
Issues Overlooked by Manufacturers and Marketers of Functional
Foods II-25
Issues in Probiotics Market II-26

6. Product Overview II-27
Definition of Functional Foods II-27
Extraction of Functional Foods II-28
From Plant Sources II-28
From Animal Sources II-29
History of Functional Foods II-30
Consumer Expectations from Functional Foods II-30
Dividing Catalyst for Functional Foods II-30
Nutraceutical II-31
Fortified Foods II-31
Medical Foods II-31
Dietary Supplements II-31
Safety Matters II-32
Absence of Regulations Leads to Safety Concerns II-32
Classification of Functional Foods II-33
Cereals and Grains II-33
Breakfast Cereals II-33
Breads II-34
Dairy Products II-34
Margarine and Spreads II-34
Yogurts II-34
Milk Products II-35
Other Dairy Products II-35
Beverages II-35
Tracing the Emergence of New Age Alternative Drinks II-35
Classification of New Age Drinks II-36
Sports Drinks II-36
Energy Drinks II-36
Are Sports and Energy Drinks Synonymous? II-36
Enriched Drinks II-37
Nutraceutical Drinks II-37
Dairy Drinks II-37
Fruit Drinks II-37
Herbal Drinks II-37
Nutrient Enhanced Tea II-38
Other Drinks II-38
Snacks II-38
Bars II-38
Ingredient Profile for Meal Replacement Bars, High- Protein
or Bodybuilding Bars and Weight Loss or Diet Bars II-39
Energy Bars II-39
Ingredient Profile for Energy Bars II-39
Nutrition Bars II-40
Ingredient Profile for Nutrition Bars II-40
Candy and Gums II-40
Other Confections II-40
Other Functional Foods II-40
Ingredient Classification II-41
Dietary Fiber II-41
Fibersol-2 II-41
List of Sources Rich in Dietary Fiber and their Potential
Health Benefits II-41
Probiotics and Prebiotics II-41
List of Sources Rich in Probiotics and Prebiotics and their
Potential Health Benefits II-42
Omega-3 Fatty Acids II-42
List of Sources Rich in Omega-3 Fatty Acids and their
Potential Health Benefits II-42
Proteins II-43
Soy Protein II-43
List of Sources Rich in Soy Protein and their Potential
Health Benefits II-43
Whey Protein II-43
List of Sources Rich in Whey Protein and their Potential
Health Benefits II-43
Amino Acids II-44
List of Sources Rich in Amino Acids and their Potential
Health Benefits II-44
Botanicals II-44
List of Herbs, Spices, and Fruits and Vegetable Compounds
and their Potential Health Benefits II-44
Vitamins and Minerals II-45
List of Vitamins and Minerals and their Potential Health
Benefits II-45
Other ingredients II-46
List of Antioxidants and their Potential Health Benefits II-46
Caffeine II-46
Sugar II-46
Carbohydrates II-47
Trends Influencing Ingredients Market II-47
Ingredient Sector Flutters on Functional Foods Fad II-47
Probiotics Zoom Ahead II-47
Soy Foods - Boon to Women II-47
Lycopene Rich Tomatoes - A Natural Functional food II-47
PUFA, Phytosterols, Probiotics and Soy Products - Healthy Stuff II-47
Functional Foods - Applications II-48
Heart Health II-48
Food Components and Heart Health Benefit(s) II-48
Cancer Prevention II-49
Gut Health II-49
Bone Health II-49
Immune Health II-49
Oral/Dental Health II-50
Physical Performance Enhancers II-50
Mental Performance Enhancers II-50
Other Areas of Applications II-50

7. Regulatory Environment II-52
What is a Health Claim? II-52
Few Authorized Health Claims II-52
FFDCA Classification of Foods II-52
Classification of Foods by FDA II-53

8. Product Innovations/Introductions II-55
Kellogg’s Launches New Special K® Bars for Women II-55
Fiave Introduces New Yogurt Drink II-55
Valio Rolls Out New Functional Yoghurt Drink II-55
Coca-Cola North America Rolls Out Iced Coffee in the US II-55
General Mills Develops New Yogurt Drink with Omega-3 DHA for Kids II-55
General Mills Rolls Out New Breakfast Cereal II-55
Kellogg Releases New Sandwich Cookie II-56
General Mills Partners with Curves International to Introduce
New Products II-56
ITC Launches Snack Food II-56
XELR8 Holdings Introduces BAZI™ II-56
Disney and General Mills Unveil New Cereals II-56
Frito-Lay Unveils New Vegetable and Fruit Snacks II-56
Coca-Cola Introduces Damla in Turkey II-56
Kellogg's® Introduces New Rice Krispies® II-57
Leading Brands Rolls Out Functional Beverages II-57
Tesco Introduces Reducol Featured Yogurt Drink II-57
PepsiCo Rolls Out SoBe Life Water II-57
Kellogg Expands Keebler® Toasteds® Line II-57
Takara Shuzo Introduces Functional Lactic Drink II-57
Coca-Cola Launches Powerade Option II-58
Asahi Soft Drinks and Apos Launch Super H2O II-58
Coca-Cola Launches Coca-Cola C2 II-58
Coca-Cola and Shiseido Develop Aroma Works II-58
McNeil Launches Benecol in the UK Market II-58
Coca-Cola Launches Zu in Thailand II-58
Bite Bangkok Launches Carbonated Energy Beverage II-58
Kellogg Launches Less Sugar Frosted Flakes and Froot Loops II-59
Masterfoods Launches CocoaVia Chocolate Snacks in the US II-59
Red Bull Introduces Sugar Free Red Bull Energy Drink II-59
PepsiCo Introduces Nutraceutical and Energy Drink Varieties II-59
ADM Kao Launches Healthy Cooking Oil II-59
Smart Balance Introduces Smart Balance Popcorn II-59
Kao Introduces Catechin Enriched Tea II-59
MFA Group Launches Alma Bar for Women II-59
Cadbury Introduces Functional Chocolate Bars II-60
INNEOV Launches INNEOV Firmness for Women II-60
Kyodo Milk Industry Introduces Amino 7 Yogurt II-60

9. Recent Industry Activity II-61
PepsiCo and Strauss Group Establish Joint Venture In North
America II-61
Coca-Cola and illycaffè Establish International Joint Venture II-61
Coca-Cola Agrees to Buy 40% Interest in Honest Tea II-61
Pepsi to Acquire Three-Fourths Stake in JSC Lebedyansky II-61
Unilever to Take Over Inmarko’s Ice Cream Business in Russia II-61
Ruchi Soya Forms Technology Deal with NutriJoy of the US II-62
Lion Corporation to Foray into Functional Foods Market II-62
PepsiCo Decides to Take Over Bulgarian Branded Nuts and Seeds
Business II-62
PepsiCo and Unilever Agree to Expand Their Global Partnership II-62
Nestlé Acquires Gerber II-62
Coca-Cola Purchases Glacéau II-62
Coca-Cola and Coca-Cola Enterprises Ink Distribution Deal with
Campbell Soup II-63
Coca-Cola And Nestlé Revise their BPW Joint Venture II-63
Pepsi Buys Balance Stake in Ukrainian Leading Juice Maker II-63
Unilever Divests Boursin II-63
Nestlé Forms Strategic Alliance with Pierre Marcolini II-63
PepsiCo Launches Frappuccino® Coffee in China II-64
Nestlé Inaugurates New Milk Factory in China II-64
Avesta Good Earth to Establish Production Unit in South Indian
City II-64
Sudzucker Establishes Functional Food Group II-64
PepsiCo Agrees to Buy Brazilian Snack Business II-64
Glanbia Purchases Small Functional Foods Business in Canada II-64
Neptune Technologies & Bioressources and Yoplait to Jointly
Develop New Functional Dairy Foods II-65
Unilever Indonesia to Acquire fruit-based Drinks Brand II-65
Ajinomoto Acquires Balance Stake in Health Drinks Producer II-65
Yakult Honsha Commences Sales of Bifiene Milk Drink in Europe II-65
Danone Sells Biscuit and Cereal Products Business II-65
Nestlé Closes the Take Over of Novartis Medical Nutrition II-65
Unilever Inks Deal to Establish Joint Venture to Handle Heart
-Health Brands in Brazil II-65
PepsiCo to Build Second Snack Unit in Russia II-66
Danone Forays into Thai Fresh Dairy Food Market II-66
Ralcorp to Purchase Bloomfield II-66
Coca Cola Acquires San Miguel’s Stake in CCBPI II-66
Alpha Baking Acquires Natural Ovens II-66
Canada Bread Takes Over Patisserie Chevalier. II-66
Groupe DANONE Gets Full Control Over CAD II-66
Goodman Fielder Purchases Copperpot II-67
Land O’Lakes Signs an Agreement with Saputo II-67
Groupe DANONE and Alqueria Join Hands II-67
Nestle Launches Largest Milk Facility in Pakistan II-67
Nestle Purchases Novartis Business II-67
CPW Acquires Uncle Tobys’ Cereal Business II-67
TRAC Financial Agrees to Take Over Minority Stake in Frappio II-68
Sunset Brands to Acquire Business of Lifeforce Labs II-68
Godrej Beverages Acquires Nutrine II-68
Tata Group Acquires 30% Stake in Energy Brands II-68
Coca Cola Acquires Majority Stake in KBL II-68
Frutarom Takes over Acatris Health II-68
Groupe DANONE Acquires JSC Molochnyi Zavod II-68
PepsiCo Buys Star Foods II-69
Kerry Group Purchases Nuvex Ingredients II-69
Cognis Deutschland Buys Napro Pharma II-69
PepsiCo Acquires IZZE Beverage II-69
Unilever Divests Frozen Foods Business II-69
Arla Acquires Tholstrup Cheese II-69
PepsiCo Buys Ardea II-69
Beverage Partners Worldwide Concentrates on Black Tea II-69
Yakult Honsha and Kirin Brewery Set Up a Joint Venture II-70
General Mills Inks Pact with Bravo! II-70
Pacific Health Receives Patent for Accelerade II-70
Symrise Acquires Kaden Biochemicals II-70
Novartis Divests Nutrition & Santé Unit II-70
Yakult Enters into Agreement with Kirin II-70
Skanemejerier to Sign Contract with MediMush Aps II-70
Venture Capitalists Launch New Brands II-71
Food and Drink Federation Establishes Lifestyle and Dietary
Trends Industry Group II-71
Danone and Yakult Honsha Form Alliance II-71
PepsiCo Signs Agreement with Baghdad Soft Drinks Company II-71
Forbes Medi-Tech Partners with Scanvit II-71
Avesthagen Signs Agreement with Raisio Group of Finland II-71
Abbott Acquires Zone Perfect Nutrition Company II-72
Danone Acquires Major Stake in Yakult II-72
Cadbury Schweppes Purchases Adams II-72
Danone and Probi Enter into Licensing Agreement II-72
Nestlé and L’Oreal Enter into Joint Venture II-72

10. Focus on Select Global Players II-73
General Mills, Inc. (USA) II-73
Groupe Danone (France) II-73
Kellogg’s Company (USA) II-73
Nestle (Switzerland) II-73
PepsiCo (USA) II-73
The Coca-Cola Company (USA) II-74
Unilever Group (Netherlands) II-74
Yakult Honsha Co., Ltd. (Japan) II-74

11. Global Market Perspective II-76
Table 9: World Recent Past, Current & Future Analysis for
Functional Foods and Drinks by Geographic Region - USA,
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 2000 through
2010 (includes corresponding Graph/Chart) II-76

Table 10: World Long Term projections for Functional Foods and
Drinks by Geographic Region - USA, 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 2011 through 2015 (includes
corresponding Graph/Chart) II-77

Table 11: World 10-Year Perspective for Functional Foods and
Drinks by Geographic Region - Percentage Breakdown of Dollar
Sales for USA, Canada, Japan, Europe, Asia-Pacific (excluding
Japan), Latin America and Rest of World Markets for Years
2003, 2008, and 2012 (includes corresponding Graph/Chart) II-78

Table 12: World Recent Past, Current & Future Analysis for
Cereals and Grains by Geographic Region - USA, 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 2000 through 2010 (includes
corresponding Graph/Chart) II-79

Table 13: World Long Term projections for Cereals and Grains
by Geographic Region - USA, 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 2011 through 2015 (includes
corresponding Graph/Chart) II-80

Table 14: World 10-Year Perspective for Cereals and Grains by
Geographic Region - Percentage Breakdown of Dollar Sales for
USA, Canada, Japan, Europe, Asia-Pacific (excluding Japan),
Latin America and Rest of World Markets for Years 2003, 2008,
and 2012 (includes corresponding Graph/Chart) II-81

Table 15: World Recent Past, Current & Future Analysis for
Dairy Products by Geographic Region - USA, 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 2000 through 2010 (includes
corresponding Graph/Chart) II-82

Table 16: World Long Term projections for Dairy Products by
Geographic Region - USA, 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 2011 through 2015 (includes corresponding
Graph/Chart) II-83

Table 17: World 10-Year Perspective for Dairy Products by
Geographic Region - Percentage Breakdown of Dollar Sales for
USA, Canada, Japan, Europe, Asia-Pacific (excluding Japan),
Latin America and Rest of World Markets for Years 2003, 2008,
and 2012 (includes corresponding Graph/Chart) II-84

Table 18: World Recent Past, Current & Future Analysis for
Beverages by Geographic Region - USA, 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 2000 through 2010 (includes
corresponding Graph/Chart) II-85

Table 19: World Long Term projections for Beverages by
Geographic Region - USA, 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 2011 through 2015 (includes corresponding
Graph/Chart) II-86

Table 20: World 10-Year Perspective for Beverages by
Geographic Region - Percentage Breakdown of Dollar Sales for
USA, Canada, Japan, Europe, Asia-Pacific (excluding Japan),
Latin America and Rest of World Markets for Years 2003, 2008,
and 2012 (includes corresponding Graph/Chart) II-87

Table 21: World Recent Past, Current & Future Analysis for
Snacks by Geographic Region - USA, 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 2000 through 2010 (includes
corresponding Graph/Chart) II-88

Table 22: World Long Term projections for Snacks by Geographic
Region - USA, 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
2011 through 2015 (includes corresponding Graph/Chart) II-89

Table 23: World 10-Year Perspective for Snacks by Geographic
Region - Percentage Breakdown of Dollar Sales for USA, Canada,
Japan, Europe, Asia-Pacific (excluding Japan), Latin America
and Rest of World Markets for Years 2003, 2008, and 2012
(includes corresponding Graph/Chart) II-90

Table 24: World Recent Past, Current & Future Analysis for
Other Functional Foods by Geographic Region - USA, 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 2000 through 2010
(includes corresponding Graph/Chart) II-91

Table 25: World Long Term projections for Other Functional
Foods by Geographic Region - USA, 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 2011 through 2015 (includes
corresponding Graph/Chart) II-92

Table 26: World 10-Year Perspective for Other Functional Foods
by Geographic Region - Percentage Breakdown of Dollar Sales
for USA, Canada, Japan, Europe, Asia-Pacific (excluding
Japan), Latin America, and Rest of World Markets for Years
2003, 2008, and 2012 (includes corresponding Graph/Chart) II-93


III. MARKET

1. The United States III-1
A. Market Analysis III-1
Current & Future Analysis III-1
Functional Foods and Drinks Market III-1
Table 27: Wellness and Functional Ready-to-Drink Beverages
Market in the US (2001-2006): Breakdown of Per Capita
Consumption in Gallons (includes corresponding Graph/Chart) III-2
Interest in Functional Foods on Rise III-2
Fact File for the US Functional Foods and Drinks Market III-2
Factors Driving Growth III-3
Factors Restraining Growth III-3
Leading Brands - Sports and Energy Drinks III-4
Table 28: Market Shares of Leading Sports Brands in the US
(2005): Percentage Breakdown by Sales for Gatorade,
Powerade, Capri Sun Sport and Private Label (includes
corresponding Graph/Chart) III-4

Table 29: Market Shares of Leading Sports Drinks in the US
(2005 & 2006): Percentage Breakdown of Value Sales by
Gatorade, Powerade, Gatorade Frost, Gatorade Fierce,
Gatorade X Factor, Gatorade All Stars and Others (includes
corresponding Graph/Chart) III-4

Table 30: Market Shares of Leading Energy Drinks in the US
(2005 & 2006): Percentage Breakdown of Value Sales by Red
Bull, Monster Energy, Rockstar, SoBe Adrenaline Rush, Amp,
SoBe No Fear, Full Throttle and Others (includes
corresponding Graph/Chart) III-5
Functional Foods Market III-5
Protein Ingredients Market III-5
Table 31: Protein Ingredient Market in the US (2004-2006):
Percentage Breakdown of Value Sales by Ingredient Type -
Soy Proteins, Whey Proteins, Caseins, Gelatin, Egg
Proteins, and Wheat Gluten (includes corresponding
Graph/Chart) III-6
US Mineral Fortification Market III-6
Table 32: Mineral Fortification Market in the US
(2004-2006): Percentage Breakdown of Value Sales for
Fortified Mineral Type - Calcium, Iron, and Magnesium
(includes corresponding Graph/Chart) III-7
Functional Drinks Market III-7
Reaching the Mainstream III-7
Sports and Performance Beverages III-8
Fresh Fruit Juices and Herbal Drinks III-8
Energy Drinks III-8
Soy III-9
Tea III-9
Tea Market Set to Roar III-9
Enhanced Water III-9
Table 33: Functional Beverages Market in the US
(2004-2006): Percentage Breakdown of Value Sales by
Segment - Sports Drinks, Fruit Beverages, Energy Drinks,
Herbal Tea, Soy, and Enhanced Water (includes
corresponding Graph/Chart) III-10
Market Trends III-10
Functional Foods Increases Demand for Supplements III-10
Consumer Health Concerns - Major Target Areas III-10
Healthy Lifestyles - Sustain Sales of Functional Drinks III-11
Attitudinal Shift of Consumers Rises Demand for Functional
Foods III-11
Baby Boomers - A Prime Target for Functional Food Makers III-11
Functional Food for Women - A Potential Niche III-11
Soya - New Protein Favorite for Americans III-12
Teens Taste for Functional Drinks - Gateway to New “Youth
Market” III-12
Energy Bars - A Favorite of Outdoor Active Consumer III-12
Good Times Ahead for Margarines III-12
Functional Bar Breaks All Bars III-12
Leading Players in the US Breakfast, Snack, and Cereal
Bars Market (2003) III-13
Dairy Products Finally Find Appeal with Americans III-13
Moving to Mainstream - Energy Bars Energize Souls and Sales III-13
Leading Players and Brands in the US Energy Bars Market in
the Past (2003) III-13
Busy Birds Do Brisk Business for Brews III-14
Increasing Consumer Opportunities from Supplements to
Functional Foods III-14
Consumer Confusion Slacks Sales at Drug Stores III-14
A Study of American Functional Food Consumer III-14
Health Concerns Among American Consumers III-15
An Insight into How ‘Good for You’ Functional Foods Turned
Into ‘Bad for You’ Foods III-15
Distribution Network III-16
Regulatory Environment III-16
Food and Drug Administration (FDA) III-16
Consumer Health Information for Better Nutrition Initiative
(CHIBNI) III-17
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-19
FDA Modernization Act (FDAMA) III-19
Federal Food, Drug and Cosmetic Act (FDCA) III-20
Generally Recognized As Safe (GRAS) III-20
Product Launches/Developments III-20
Strategic Corporate Developments III-24
Key Players III-28
B. Market Analytics III-29
Table 34: 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 Independently Analyzed with Annual Sales
Figures in US$ Million for Years 2000 through 2010 (includes
corresponding Graph/Chart) III-29

Table 35: US Long Term Projections for Functional Foods and
Drinks by Product Segment - Cereals and Grains, Dairy
Products, Beverages, Snacks, and Other Functional Foods
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2011 through 2015 (includes corresponding
Graph/Chart) III-30

Table 36: US 10-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 2003, 2008, and
2012 (includes corresponding Graph/Chart) III-30

2. Canada III-31
A. Market Analysis III-31
Current & Future Analysis III-31
Functional Foods and Drinks Market III-31
Growth Drivers III-31
Research and Development III-31
Distribution Dynamics III-32
Supermarkets and Mass Merchandisers III-32
Pharmacies III-32
Food and Specialty Stores III-32
Direct Distribution III-32
Regulatory Environment III-32
Definition III-32
Food and Drugs Act and Health Canada III-32
Natural Health Product Regulations III-33
Strategic Corporate Developments III-33
B. Market Analytics III-34
Table 37: 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 Independently Analyzed with Annual Sales
Figures in US$ Million for Years 2000 through 2010 (includes
corresponding Graph/Chart) III-34

Table 38: Canadian Long Term Projections for Functional
Foods and Drinks by Product Segment - Cereals and Grains,
Dairy Products, Beverages, Snacks, and Other Functional
Foods Independently Analyzed with Annual Sales Figures in
US$ Million for Years 2011 through 2015 (includes
corresponding Graph/Chart) III-35

Table 39: Canadian 10-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
2003, 2008, and 2012 (includes corresponding Graph/Chart) III-35

3. Japan III-36
A. Market Analysis III-36
Current & Future Analysis III-36
Outlook III-36
Functional Foods and Drinks Market III-36
Growth Drivers III-37
Functional Beverages Brim in Japan III-37
Eyeing the Leaders - Next Best Target for Japanese Food Makers III-38
Functional Drinks - Under a Spate of Bother III-38
Regulatory Environment III-38
Definition III-38
FOSHU (Foods For Specified Health Uses) III-38
FOSHU Approved Functional Food Products III-38
Product Launches/Developments III-39
Strategic Corporate Developments III-40
Yakult Honsha Co., Ltd - A Major Player. III-41
B. Market Analytics III-42
Table 40: 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 Independently Analyzed with Annual Sales
Figures in US$ Million for Years 2000 through 2010 (includes
corresponding Graph/Chart) III-42

Table 41: Japanese Long Term Projections for Functional
Foods and Drinks by Product Segment - Cereals and Grains,
Dairy Products, Beverages, Snacks, and Other Functional
Foods Independently Analyzed with Annual Sales Figures in
US$ Million for Years 2011 through 2015 (includes
corresponding Graph/Chart) III-43

Table 42: Japanese 10-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
2003, 2008, and 2012 (includes corresponding Graph/Chart) III-43

4. Europe III-44
A. Market Analysis III-44
Current & Future Analysis III-44
Functional Foods and Drinks Market in Europe III-44
Market for Enzymes in Food Applications III-45
Protein Ingredient Market in Europe III-45
Table 43: Protein Ingredient Market in Europe (2004-2006):
Percentage Breakdown of Value Sales by Ingredient Type -
Milk Protein, Gelatin, Fish Protein, Soya Protein, Gluten,
Egg Protein, Single Cell Yeasts, Meat Protein, Pulse
Protein, and Others (includes corresponding Graph/Chart) III-45
Functional Drinks Market III-46
Table 44: Functional Drinks Market in Western Europe
(2004-2006): Percentage Breakdown of Volume Sales by
Product Segment - Enriched Drinks, Sports Drinks, Energy
Drinks, and Nutraceutical (includes corresponding
Graph/Chart) III-46
Growth Drivers III-47
Growth Restraints III-47
Market Trends III-47
Changing Attitudes to Help Sales Heave III-47
Yogurts - Driven by Innovation III-47
Sports Drinks Lack Sporting Appeal with Europeans III-47
Dairy: The Dearest for Europeans III-47
Heart Health - The New Functional Dairy Target III-47
Europeans Gain Flavor to Nutraceutical Drinks III-47
Table 45: Functional Foods Market in Europe (2002): Number
of Consumers in Million by Region - Germany, United
Kingdom, France, Italy and Spain (includes corresponding
Graph/Chart) III-48
Leading Players - Foods and Drinks III-49
Leading Players and Brands in the European Functional Foods
and Drinks Market III-49
Leading Brands - Energy Drinks III-49
Leading Players and Brands in the Western European Energy
Drinks Market (2001) III-49
Regulatory Environment III-49
B. Market Analytics III-50
Table 46: European Recent Past, Current & Future Analysis
for Functional Foods and Drinks by Region/Country - France,
Germany, Italy, UK, Spain, and Rest of Europe Markets
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2000 through 2010 (includes corresponding
Graph/Chart) III-50

Table 47: European Long Term Projections for Functional
Foods and Drinks by Region/Country - France, Germany, Italy,
UK, Spain, and Rest of Europe Markets Independently Analyzed
with Annual Sales Figures in US$ Million for Years 2011
through 2015 (includes corresponding Graph/Chart) III-51

Table 48: 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 Independently Analyzed with Annual Sales
Figures in US$ Million for Years 2000 through 2010 (includes
corresponding Graph/Chart) III-52

Table 49: European Long Term Projections for Functional
Foods and Drinks by Product Segment - Cereals and Grains,
Dairy Products, Beverages, Snacks, and Other Functional
Foods Independently Analyzed with Annual Sales Figures in
US$ Million for Years 2011 through 2015 (includes
corresponding Graph/Chart) III-53

Table 50: European 10-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 2003, 2008, and 2012 (includes
corresponding Graph/Chart) III-54

Table 51: European 10-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
2003, 2008, and 2012 (includes corresponding Graph/Chart) III-55

4a. France III-56
A. Market Analysis III-56
Current & Future Analysis III-56
Functional Foods Market III-56
Functional Drinks Market III-56
Market Trends III-57
Risk of Disease(s) - Fuels Functional Foods Sales III-57
French Favor Low Cholesterol III-57
All The Way It’s a Probiotics Market III-57
High Incidence of ‘Bad’ Cholesterol Pumps Sales of
Functional Fats III-57
Taste Tops Need for Nutrition and Health Hazards III-57
BSE Crisis and Misleading Claims Keep French Off the
Functional Foods Shelves III-57
Most Desired Health Claims III-58
Strategic Corporate Developments III-58
Groupe Danone - A Key Player III-59
B. Market Analytics III-60
Table 52: French Recent Past, Current & Future Analysis for
Functional Foods and Drinks by Product Segment - Cereals and
Grains, Beverages, Dairy Products, Snacks and Other
Functional Foods Market Independently Analyzed with Annual
Sales Figures in US$ Million for Years 2000 through 2010
(includes corresponding Graph/Chart) III-60

Table 53: French Long Term Projections for Functional Foods
and Drinks by Product Segment - Cereals and Grains, Dairy
Products, Beverages, Snacks, and Other Functional Foods
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2011 through 2015 (includes corresponding
Graph/Chart) III-60

Table 54: French 10-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 for Years 2003, 2008, and 2012
(includes corresponding Graph/Chart) III-61

4b. Germany III-62
A. Market Analysis III-62
Current & Future Analysis III-62
Functional Foods and Drinks Market III-62
Growth Drivers III-62
Growth Restraints III-62
Market Trends III-62
Functional Breads Receive Optimistic Response III-62
Dairy Dreams Come True in the German Market III-63
Functional Drinks - A Fragmented Market in Germany III-63
Health and Convenience are Not Enough for Germans III-63
Most Desired Health Claims III-63
Strategic Corporate Development III-64
B. Market Analytics III-64
Table 55: 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 Independently Analyzed with Annual Sales
Figures in US$ Million for Years 2000 through 2010 (includes
corresponding Graph/Chart) III-64

Table 56: German Long Term Projections for Functional Foods
and Drinks by Product Segment - Cereals and Grains, Dairy
Products, Beverages, Snacks, and Other Functional Foods
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2011 through 2015 (includes corresponding
Graph/Chart) III-65

Table 57: German 10-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 for Years 2003, 2008, and 2012
(includes corresponding Graph/Chart) III-65

4c. Italy III-66
A. Market Analysis III-66
Current & Future Analysis III-66
Market Trend III-66
Foods Tasting Insipid Receive Bad Response from Italians III-66
Product Launch III-66
B. Market Analytics III-67
Table 58: 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 Independently Analyzed with Annual Sales
Figures in US$ Million for Years 2000 through 2010 (includes
corresponding Graph/Chart) III-67

Table 59: Italian Long Term Projections for Functional Foods
and Drinks by Product Segment - Cereals and Grains, Dairy
Products, Beverages, Snacks, and Other Functional Foods
Independently Analyzed with Annual Sales Figures in US$
Million for Years 2011 through 2015 (includes corresponding
Graph/Chart) III-67

Table 60: Italian 10-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 for Years 2003, 2008, and 2012
(includes corresponding Graph/Chart) III-68

4d. The United Kingdom III-69
A. Market Analysis III-69
Current & Future Analysis III-69
Functional Foods and Drinks Market III-69
Growth Drivers III-69
Growth Restraints III-69
Market Trends III-70
Yogurts Pep Up Functional Food Market III-70
Functional Food Consumers to Grow in Number III-70
Britons Beseech for Energy Boosters III-70
Baby Boomers III-70
‘Calcium-Enriched’ Waters and Juices - The Market Makers III-70
Rising Health Concerns Make Consumers Clamor for Functional
Foods III-71
Vegan Diet to Influence Functional Foods Sales III-71
Gut Health Gains Prominence III-71
Opportunities in the Unexplored Niche Products Market III-71
Most Desired Health Claims III-72
Leading Players - Foods and Drinks III-72
Leading Players and Brands in the UK Functional Foods and
Drinks Market in the Past (2003) III-72
Leading Players - Confections III-72
Leading Players and Brands in the UK Confections Market III-72
Regulatory Environment III-72
Product Launches/Developments III-73
Strategic Corporate Developments III-73
B. Market Analytics III-74
Table 61: UK Recent Past, Current & Future Analysis for
Functional Foods and Drinks by Product Segment - Cereals and
Grains, Dairy Products, Beverages, Snacks, and Other
Functional Foods Independently Analyzed wit