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U.S. Food Industry Quantification: NBJ Data Chart 55

2005 & 2006 functional food sales in the context of the greater U.S. retail food market. 




Click here to view data chart framework

This data chart focuses on 2005 & 2006 functional food sales in the context of the greater U.S. retail food market. US food sales are classified into 40 sub-categories such as baby, produce, baking needs, dairy alternatives, candy/gum and many others.

2005 & 2006 sales ($Mil) for each of the 40 food sub-categories are given for:

Total food

Functional food Substantially fortified foods

Inherently functional foods

Performance functional foods

Natural/organic foods

Lesser evil foods

Market standard foods

Enriched foods

Enriched and functional foods

Manually fortified foods

Below are relevant definitions for this data chart:

Functional Foods: Since “functional foods” and “nutraceuticals” are essentially marketers’ terms and not recognized in law or defined in any dictionary, market researchers tend to use them inconsistently. Nutrition Business Journal defines functional food as food fortified with added or concentrated ingredients to a functional level, which improves health and/or performance or products marketed for their ‘inherent’ functional qualities. They include some enriched cereals, breads, sports drinks, bars, fortified snack foods, baby foods, prepared meals and more.

Manufactured Fortified Foods: Including “substantially fortified,” “performance functional” (both of these are counted as “functional”) and “enriched” foods (these are not counted as “functional”), manufactured fortified foods are foods enriched by food manufacturers with nutritional ingredients to raise their health value. These nutritional ingredients primarily consist of vitamins and mineral powders or pre-mixes, but may also extend to protein powders, soy, and other specialty ingredients. NBJ estimates 21% of all food sales in the U.S. are manufactured fortified food sales.

Enriched Foods: Enriched foods include any processed food products with added nutritional ingredients (mostly vitamins and minerals) that fall just outside of NBJ’s functional foods category definition. In the 17 sub-categories in which NBJ counts enriched foods, NBJ estimates that 48% of sales are enriched food sales. In some categories such as baked goods, frozen breads and grains, and pasta, enriched foods makeup over 97% of the market. U.S. sales of enriched foods were $90 billion in 2001.

Performance Functional Foods: NBJ defines performance functional foods as food products formulated specifically with increased short-term physical performance or a desired result like weight-loss in mind. These products include sports drinks like Gatorade, nutrition bars like Powerbar or Slimfast Bars, energy drinks like Red Bull or 180 and energy cereals such as Wheaties Energy Crunch. Performance functional foods make up approximately 20% of total functional food sales.

Substantially Fortified Foods: Substantially fortified foods are non-performance functional foods significantly fortified with added or concentated ingredients to a functional level, and/or marketed to have some health benefit relating to a condition, disease or to general health. Substantially fortified foods differ from ‘enriched’ foods in that thay are developed, positioned and/or marketed with these health benefits as a significant driver for the product identity. Examples of substantially fortified foods are Tropicana Pure Premium Orange Juice with Calicum, Benecol, baby formulas and herb-infused ready-to-drink teas like SoBe and Arizona Beverages. This sub-category of functional foods represents approximately 58% of total functional foods.

Inherently Functional Foods: NBJ defines inherently functional foods as foods with naturally ocurring functional properties, not the result of any manufacturing process, that are specifically marketed to consumers for their functional attributes. Examples of inherently functional foods include cranberry and prune juice, soy products and herbal teas. Inherently functional foods compose 22% of the total functional foods market.

Market Standard: The "Market Standard" category of foods includes all foods that do not fit into the natural/organic, functional or lesser evil categories. Over time, the Market Standard category has adopted former functional and lesser-evil foods like low-fat milk, iodized salt and others that represent over 50% of certain category sales. The market standard category contributes ~8% of sales to the nutraceuticals category, with products like chicken soup, orange juice, yogurt and others that are frequently consumed for health reasons.

Natural/Organic Foods: Natural foods focus on the health benefits of foods derived from natural sources and that are, to varying degrees, free of pesticides, additives, preservatives and refined ingredients. NBJ counts organic foods (which may or may not be in all or part “certified organic”) as those foods not only free of chemicals, pesticides, hormones and antibiotics but may go beyond the human health consequences of conventional farming and food manufacturing to embrace principles of sustainable farm management, humane treatment of animals, fair trade and the social impacts of food production.

Lesser-Evil Foods: Lesser-Evil foods are altered from their originally manufactured state by the removal of unwanted substances including fat, calories, preservatives, caffeine, alcohol, salt, etc.

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