From The July 2000 Issue of Nutrition Science News

Back Talk

What Is The Future Of Functional Foods And Nutraceuticals?

by Stephanie Gailing

Foods and beverages that are "super fortified", e.g., enhanced with dietary or phytonutrient ingredients, are referred to as functional foods. If you add medical foods to this definition, you are in the category of nutraceuticals. Many people believe the functional food and nutraceutical industries are in prime positions to capitalize on consumers' interest in products that support wellness lifestyles. Manufacturers ranging from small natural foods companies to multinational pharmaceutical corporations are developing and marketing these value-added food products, which run the gamut from breakfast cereals enriched with ginkgo to a food bar for arterial disease prevention. Whether functional foods and nutraceuticals attain an integrated position in shopping carts of future consumers remains to be seen. A multitude of dynamics affects their future, notably how much research will be done to substantiate their efficacy.

"There is a revolution occurring in the nutraceutical industry that is catalyzed by consumer demand for products delivering health benefits. In the future we will see a research-based nutraceutical industry that will rely on scientific evidence to support the communication of these health claims made for such foods and beverages. The industry will center around proprietary, patented products created in response to current marketplace conditions and protected by government regulations. These proprietary products will be recommended by doctors and the media, both of which will play key roles in consumers' acceptance of these products."

—Stephen DeFelice, M.D.
Founder and Chairman
The Foundation for Innovation in Medicine
Cranford, N.J.

"I see a trend toward functional foods being the primary source of nutritional enhancement, with dietary supplements still maintaining an important role as a matter of convenience when people want concentrated forms. I think this trend will evolve over the course of the next few years, not the next few months. As was evidenced through the '90s with the "low/no" food categories such as "low salt" and "no fat," consumers are willing to pay more for foods that deliver perceived health benefits. Therefore, it follows that consumers will also pay more for foods that deliver health benefits through the addition of nutritional ingredients, especially if these foods are already an integral part of their daily lifestyle. It must be remembered, though, that the foods need to warrant the ingredients, and their addition into the product needs to make sense."

—Harlee Sorkin
Vice President
Traco Labs
Champagne, Ill.

"Many companies throughout the value chain believe that food will play an increasingly competitive role as the vehicle for concentrated dosages of dietary fortification. Consequently, in the past two years we have seen greater sales growth of raw material vitamins to food companies than to supplements companies. Over this same time period, the entire functional food category has been growing at a rate of 8 to 10 percent per year. We expect this growth rate to continue for the next two to three years. One of the dynamics to watch will be whether vitamin and other health supplementation will be accomplished more through pill or food form."

—Grant Ferrier
Editor
Nutrition Business Journal
San Diego, Calif.

"Functional foods are the most appealing dosage form imaginable and have great potential. However, the current crop of products offers little more than a sprinkle of ingredients that may lead to a lack of consumer confidence. Today, hype and uniqueness help boost these products, but after the novelty wears off, consumers will become more critical and selective in their purchase decisions. To ensure the future of this market, manufacturers must offer products that will live up to their claims, provide a real benefit and be priced within reach."

—Paul Zullo
Marketing Director
Nutratech Inc.
Fairfield, N.J.

"The current marketplace supports great opportunities for food and vitamin companies to create successful functional foods. One reason for this is that, while consumers have been exposed through the media to research about the benefits of certain nutritional ingredients—soy is an example—the average consumer is not going to readily change his or her diet and eat a couple of servings of tofu daily. Therefore, companies have the opportunity to capture consumers' knowledge about and interest in key nutritional ingredients by creating appealing products that incorporate these ingredients into foods such as cereals, bars and beverages that are already common in their daily diets."

—Laurent Leduc
Marketing Manager
Schouten USA Inc.
Minneapolis, Minn.