Nutrition Business Journal
Functional Goes Natural

Functional Goes Natural

Functional market essentially flat, save for monster growth in energry drinks & nutrition bars; probiotics & omega-3s still strong, even as manufacturers move past health claims toward inherent functionality and clean labels.

A recession-shocked economy had many food analysts sounding the death-knell for the functional category, as growth in that industry dropped from a nine-year CAGR of 9% through 2008 to 2% in 2009. Sales rebounded last year, climbing 8% to $41 billion, but that industry growth is a bit lopsided. The functional food market relies almost entirely on the strength of energy drinks and nutrition bars, while multi-billion-dollar categories like functional breads & grains and packaged & pre

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