More Info
									34           industry trends

exPlosion of
oPPorTuniTies in
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.

             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 
To top