Booming Market

Functional foods market worth $27bn +

The US functional foods market will grow by up to 20 percent

or five times that of the food industry as a whole, according

to a new report from Pricewaterhouse Coopers that puts the

market at $27bn in 2007.

Forecasts range from between 8.5 percent and 20 percent,

the finance firm said, compared to one and four percent for

the entire food industry.

Functional foods have grown to the point where they account

for five percent of the food industry, with consumers more

interested than ever in fortified foods – even those whose overall

nutrient profile is variable.

The Pricewaterhouse Coopers report noted consumers were

willing to pay premiums for foods that targeted health problems

or provided an alternative to the likes of soda drinks and

empty calorie snacks. This was so even in hard economic times.

The report comes after research conducted by the International

Food Information Council that found of those Americans trying

to improve their diets, 79 percent are changing the types of

foods they eat, 69 percent are changing the amount of foods

consumed, and 19 percent are changing their use of dietary supplements.

The 2009 Food & Health Survey found that healthfulness,

among other product attributes, is an important factor that

influences consumers’ purchasing decisions. When consumers are

choosing foods for themselves and their children, they are

interested in healthful components.