Healthy Growth in Functional Food Market

Consumers are becoming more skeptical about the health claims made by food and drink manufacturers.

Datamonitor analysis estimates that the
combined US, Western European and Asia Pacific functional food and
drink market is worth $72.3 billion, and forecasts that this market
will grow at a compound annual growth rate (CAGR) of 5.7% between
2007 and 2012. Asia will remain the most prosperous functional food
market and is forecast to continue to outperform the US and European
markets in the foreseeable future. The buoyant growth throughout the
sector is being driven by consumers who are seeking products that
offer a solution to both long and short-term health problems.

However, despite these impressive growth rates, Datamonitor feels
that the market faces the challenge of deteriorating levels of
consumer trust and confidence. Consumers are becoming less trusting
of health claims made by food and drink manufacturers, often
believing functional package claims to be either false or an excuse
to command a premium price. As a result, manufacturers will need to
ensure that they promote functional foods in a credible and honest
manner and continue to educate consumers about the credence of
emerging ingredients such as lycopene, prebiotic fiber and plant
sterols.