UK functional food and drinks market slows

Its report, Functional Foods 2010​, predicts growth rates for functional foods closer to those of their traditional counterparts and identifies the key role of product development.

“Stronger growth will require new product development in the various market sectors, and this may prove more difficult than in the past, owing to the EU regulations on health claims​,” notes the report’s executive summary.

It estimates that the total UK market for functional foods grew by an estimated 9.6 per cent in the year ending October 2009, to a value of £1.46bn. Although the growth rate was higher than that experienced in 2007/2008, it was significantly lower than the estimated 22 per cent growth in 2005/2006.

Apparent peaking ​

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“The reduction is accounted for by an apparent peaking in sales of yoghurt drinks and soya milk, after strong prior growth, and gradually declining sales of cholesterol-lowering margarines and functional breads,”​ according to the report. “Strong growth has, however, been shown by probiotic yoghurts and fortified breakfast cereals, allowing positive growth overall​.”

It highlights the trend in recent years towards adding several functional ingredients to individual products, with probiotic, prebiotic and omega-3 yoghurts and yoghurt drinks, or probiotic and cholesterol-lowering yoghurts, some of them containing extra vitamins.

Reflecting an accumulation of evidence about their health benefits, omega-3 fatty acids have been added to a range of foods, including margarines and spreads, yoghurts and yoghurt drinks, milk, cheese, bread, eggs and soya milk.

Soya has also become a more widely used functional ingredient and is included in some yoghurts and spreads.

Confusing to consumers​

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But adding several functional ingredients could prove confusing to consumers and some products are now being withdrawn or relaunched, warns the report. Also doubts have been expressed about some of the health claims made by manufacturers, and the European Food Safety Authority (EFSA) is evaluating all such claims.

Products which do not receive EFSA approval will not be allowed to be used in promotions within the EU until claims are modified or scientific evidence that proves acceptable to EFSAs provided.

“This factor, coupled with the recession, which has caused consumers to question purchases of premium-priced branded foods and drinks where discount brands or retailer own-label alternatives are available, has had an adverse effect on the functional-foods market​,” notes the report. But the continued emphasis on healthier eating, and the fact that many functional foods are targeted at age-related health conditions is likely to support future growth in sales of functional foods.

The report defines functional foods as including: Fibre-, mineral- and/or vitamin-fortified breakfast cereals and cereal bars; probiotic and prebiotic yoghurts and yoghurt drinks; cholesterol-lowering margarines and spreads; and soya milk.

Functional breads, milk, cheese, eggs and drinks, account for a smaller segment of the market.