Functional foods grab industry attention at Anuga
industry, it appeared at the Anuga exhibition in Cologne this week,
where a symposium on market trends in the sector was hugely
oversubscribed.
It seems that the industry at large is only just sitting up and taking notice of the functional foods trend. Matthias Kersten, editor of Lebensmittel Praxis Verlag magazine, told the packed-out lecture theatre: "We thought it was not a very topical subject right now."
Anuga attracted around 160,000 visitors and 6,294 exhibitors over the five days from 8 to 12 October. A small display of health and functional foods products occupied a space at the heart of the Köln Messe complex, featuring both new developments like Homman Feinkost's Vital mayonnaise salads and brands that have become established over the past couple of years, like Benecol and Alpro.
But despite the interest that these products garnered, Andreas Dürr, account director of food for market researcher IRI, warned that some functional products have had a short life span on the German market. He told NutraIngredients.com that this was not due to lack of consumer interest in the segment, but that companies are not doing their homework before jumping in with both feet.
Wellness within the industry
Dürr explained that there are four main directions for products aimed at promoting health and wellness: less 'bad' ingredients such as fat, sugar or calories; more health-promoting substances like vitamins, calcium or active ingredients; the addition of ingredients or flavours with a healthy image, such as aloe vera, rooibos tea, olive oil; and synergies with over-the-counter (OTC) market.
But it is important to remember that health and wellness is only one of the current trends in the food industry as a whole, the others being premium quality, convenience, and value for money.
Of these, convenience is of primary importance for healthy foods. Small, portable packets mean consumers can keep products on them, and today's time-pressed society means minimal preparation is paramount.
"Health foods are becoming more convenient and convenience foods more healthy," said Dürr.
While there is some crossover with premium quality products, consumers' willingness to spend on health and functional foods is not boundless.
Homann Feinkost's Oliver Bank said that the new Vital salads have a retail price of between €1.29 and €1.49. More than that, the target consumer is unwilling to pay.
High hopes
On the exhibition floor, companies that are already active in the functional arena were upbeat.
Mads Quistgaard, managing director of Crispy Food, which makes cereal top boxes for dairy producers, noted that the major food companies are preparing themselves and forming an opinion on the subject.
In recent months, Mars and Nestle have inaugurated health and nutrition divisions - a business move that would have been inconceivable for companies of their provenance in by-gone times.
"Over the next three to five years, functional foods will be a growing segment as an add-on to existing business," Quistgaard predicted.
Bredan Ara of Key Enterprises used the event as the industry launch of his new Freekee 66 percent vegetable snacks for children, developed to encourage his own daughter to eat more healthily.
Ara said he sees opportunities for healthy and functional snacks in countries that have recently banned junk food in schools, such as the UK.
"The more countries that ban junk food, the better," he said.
Daniela Reichlin from Familia told NutraIngredients.com that the Swiss maker of the original muesli is reducing fat and sugar levels. "If your basics are right, you are going to be healthy," she said.
The company is also looking at adding functional ingredients to its products, including the addition of soya for a higher protein content and omega-3 - although she pointed out that both of these innovations present taste issues that must be overcome.
Strong caveats
Reichlin stressed that the focus of product development should be on taste. Products should be healthier than their mainstream alternatives, but consumers must not feel like they are compromising on their enjoyment. For example, it is difficult to keep granola crunchy without sugar, but that is something that is in development.
She also said: "You can go as natural as you like, but if the packaging doesn't appeal, the product will be less successful."
In contrast to the "dusty" packaging of organic products a few years ago, she said that now products should look lively, trendy and happy.
Reichlin was not alone in issuing caveats for companies planning to expand into functional foods.
Dürr noted that although the functional foods market is spreading, it is not relevant in every corner of the food industry. Health benefits have to be relevant to the category.
For example, it is no good having a chocolate bar that is good for the stomach, he said, since chocolate is usually bought as an indulgent treat and wellness issues are pushed to the back of the buyer's mind.
Functionality also has no place in occasional products, since eating health-promoting substances just once a month is unlikely to have any effect. Rather, functional ingredients are better placed in high-consumption foodstuffs like dairy products, and those eaten at least two or three times a week.
What is more, although there is a clear shift towards health and wellness, a factor attributed in part to affluent ageing populations wishing to remain healthy and active for longer, obesity and disease rates continue to increase at unprecedented rates.
One explanation Quistgaard gave for this is that there is a gulf between what people say and what they do.
"They say they want low sugar, high fiber and low fat, but unhealthy products are increasing in sales and healthy are stable. It is more a trend in words than in sales," he said.
Finally, solid scientific basis is the key to a long-term success for functional foods as a whole.
"We only need so many scandals of people selling air in nice packaging for the entire industry to go down," said Quistgaard.
