Nutritional science for mind health products
DSM Nutritional Products
Instead larger niches can be carved out in fast-emerging economies such as Turkey, New Nutrition Business said.
According to the report, the key drivers for kids nutrition will be products which are all natural, and those which are aimed at boosting immunity and digestion. The report says over the next year omega-3 products will remain niche, but there will be growth in snacks which are healthy.
In the 5 Key Trends in Kids' Nutrition 2008 report, author Julian Mellentin said: "Some omega-3 suppliers are facing up to the reality that they are going to be in a niche business for some time to come.
"That's a pity, because omega-3 is one of the very few functional ingredients for which there's a clear dietary need. Omega-3 products may yet become big, but probably only when a giant such as Danone makes the ingredient's benefits a key selling point for a brand and then supports that brand with a massive marketing spend and/or when an RDI for omega-3 is finally granted."
On the other hand, as far as kids markets go the report says one of the trends in the New Year pushing growth will be products aimed at immunity and digestion. Mellentin said the areas of digestion and immunity present the biggest opportunities.
Immunity, digestion and omega-3
Mellentin said immunity and intestinal function are key concerns for mothers, and what is being understood by science is that the gut influences our health, wellbeing and resistance to disease.
At the moment the market for digestive health products - such as pro and prebiotics - is not as developed as it is for adults, the report notes.
Indeed, Chr Hansen has identified probiotic supplements and fortified foods aimed at children as one of its key areas of focus.
On the other hand, New Nutrition Business says the market for immunity-enhancing products is "embryonic" but may change over the next five years and added it "can only be a matter of time before there is a concerted focus on kid-specific products for immunity."
Danone's Actimel probiotic dairy drink is the world's biggest immunity brand with more than €1.8bn sales, but is not specifically aimed at children.
While omega-3 containing product launches were more this year than in 2006, there is still no sign of omega-3 fortified brands being anything other than a niche, the report said.
The UK's first omega-3 fortified fresh milk was launched in 2005 under the name St Ivel Advance and was aimed at mothers with children between one and 10. But since then sales of the brand settled at a level only one sixth of those it originally aimed for.
Mellentin said: "What's become apparent in 2007 is that there's only going to be room in each country for a handful of omega-3 brands.... While at the moment there is a frenzy of launches of omega-3 fortified products… failure is more common than success and most of these will disappear without a trace."
He says this is because the ingredient means very little to all but a minority of consumers.
Other drivers
Mellentin adds that snacks which are "guiltfree" will continue to develop as a market driver, and have been the most successful kids' food concepts.
When it comes to obesity the spotlight of blame needs to refocus. He said that as junk-food advertising declines and more food is classed as "better for you", a fundamental rethink on children's activity levels will be needed.
Over the past year there have been two big strategic movements in the kids' nutrition area. The first is the rise of Danone, to the status of the biggest player in kids' nutritional dairy, worldwide, and one of the world's biggest infant formula companies, through its acquisition of Numico.
The acquisition of Numico for €12.3 gave Danone a 40 per cent in infant foods in Europe as well as a 30 per cent share in several South Asian countries. The second is the elevation of Nestlé to the status of the biggest baby food company in the US, through its acquisition of Gerber.
New Nutrition Business also says that one of the things needed for a successful product launch is a product with clear health benefits that should be easily understood by mothers.
This could include probiotic, calcium and omega-3 valued added ingredients.
The full report can be found here.