In addition to its traditional beverages, Coca-Cola has recently brought a number of drinks with functional properties to the market. One of the first was Enviga, launched in 2006 in the US with Nestl and containing the green tea extract, epigallocatechin gallate (EGCG). The last 2 years have seen a number of acquisitions and investments to strengthen Coca-Cola's position in the health and wellness market.
34 industry trends exPlosion of oPPorTuniTies in nuTraceuTicals New research from Business Insights has revealed that despite costs of more than $10 million to gain the right to claim that a food or drink product has a health benefit, investing is worthwhile. r esearch from the independent with added vitamins, minerals and herbs that the past few years, a number of products business analyst has found that meet the needs of today’s marketplace. containing combinations of functional as consumers become more Dr Barton continued: “Despite the limitations ingredients have entered the market … concerned and knowledgeable caused by the tightened regulation and only to be removed again. Examples about their health, they are self medicating. cost, there is massive potential for growth. include the inclusion and subsequent As a result, large food and drink players — as In this rapidly expanding market, companies removal of omega-3 from Danone and well as pharmaceutical companies — are will need to differentiate themselves with Unilever’s one-a-day phytosterol-containing focusing on the potential of the nutraceuticals products that offer an immediate health yoghurt drinks and the removal of omega-3 market, triggering an increase in investment benefit in days rather than months to from probiotic yoghurts. and takeovers: a trend that’s set to accelerate keep consumers coming back for more. Scientific proof that a food has a during the next 5 years. This comes despite Ultimately, manufacturers have to balance positive effect on health, supported by the an increase in costs for the clinical research the costs of gaining regulatory approval regulatory approval of a health claim, is that’s needed to substantiate health claims for a health claim with the additional gains a starting point, but may not be enough made on both new and existing ingredients. they might make through enhanced product to provide success for novel ingredients. In spite of the increased investment, a high credibility and price.” Further, the major food companies are proportion of the applications made in line reticent about using new ingredients until with Article 13 health claim legislation are Sectors Attracting they are backed by extensive scientific being rejected in the EU by EFSA. However, Nutraceutical Investment proof of activity. This explains the “the fact that we’re seeing so much growth New products are most likely to actions of some innovative companies in the market, despite the increased costs, be launched, in the short-term, for that are simultaneously developing their illustrates the scope of the potential,” says cardiovascular conditions, inflammation, naturally sourced pure ingredients as Business Insights analyst Dr Cheryl L Barton. obesity and diabetes. The ongoing “obesity nutraceuticals and pharmaceuticals. These Food and drinks manufacturers such as epidemic” will drive products that target companies have identified that it would be Danone and Nestlé have invested heavily weight management and diabetes in commercially advantageous to lead with a to bring novel nutraceutical products to particular. In the future, areas relevant to pharmaceutical ‘story,’ as this establishes the market with success in the health ageing, such as cognitive performance and medical credibility compared with food and and wellness marketplace. However, with preventing weight loss/muscle loss, will nutraceutical products that rely on a high consumer healthcare divisions of some become more important. The areas most level of consumer awareness and robust major healthcare companies also investing likely to succeed in the first instance are health claims. in nutraceuticals, a notable example being those in which consumer knowledge and McNeil’s Benecol products, competition is understanding of a medical need are high. European Food Safety Authority high. New technologies such as the ability to One example is cholesterol reduction for The industry is experiencing frustration extract and analyse bioactive components the prevention of heart disease, a concept regarding EFSA’s new found stringency, in are continually being developed. It is the that is well understood by the average some cases believing that obvious claims smaller, innovative nutraceutical companies consumer. Nevertheless, this collective are being rejected. Another view is that that have been driving this; but, as costs are understanding took decades to achieve the regulator
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