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Trends in the US Functional Foods, Beverages and Ingredients Market
Institute of Food Technologists - Show Report
The Government of Canada has prepared this report based on primary and secondary sources of information. Readers should take note that the Government of Canada does not guarantee the accuracy of any of the information contained in this report, nor does it necessarily endorse the organizations listed herein. Readers should independently verify the accuracy and reliability of the information. This report is intended as a concise overview of the market for those interested in its potential and is not intended to provide in-depth analysis which may be required by the individual exporter. Although every effort has been made to ensure that the information is correct, Agriculture and Agri-Food Canada assumes no responsibility for its accuracy, reliability, or for any decisions arising from the information contained herein.
Prepared: July 31, 2009
Prepared by:
Sharan Evani
Sr. Marketing & Trade Officer
Agriculture and Agri-Food Canada
BC Regional Office
Ph: 604-666-2861
Email: sharan.evani@agr.gc.ca
Executive Summary
The United States has the largest functional food and beverage market in the world and it is expected to have an annual growth rate of 6.1% from 2007-2012. Growth in the functional foods category is being driven by an ageing US population, high health care costs and consumer awareness of the link between diet and health. Some US consumers are turning to functional foods because they are strapped for time and have challenges meeting all of their nutritional needs through traditional foods. Concern about health is driving a number of sub-trends in the US market and fuelling interest in certain ingredients, such as low-calorie sweeteners, fibre, probiotics, omega fatty acids, anti-oxidants and sodium substitutes. Food and beverage manufacturers are recognizing the opportunities in the market for these products and are reformulating products to introduce healthier versions and developing new, healthy products.
There are new sweeteners available in the US that are made from stevia, an ingredient which was recently given "Generally Recognized as Safe" status in the US. These sweeteners are both low-calorie and derived from "natural" plant sources and products made with them will appeal to consumers who want to manage weight or diabetes and/or who are concerned about consuming artificial sweeteners.
There are also new fibre ingredients available that can be added to a range of products, which will not negatively impact taste. US consumers do not get enough fibre and are looking for easier ways to increase their fibre intake. Many new products have been launched with added fibre and it is also a main component of new satiety foods that are positioned to help with weight management.
The US probiotics market was late to develop compared to other countries, but now represents a significant growth opportunity for food manufacturers. Major brands have paved the way to create consumer awareness of probiotics. Prebiotics are less well known than probiotics, but their growth is expected to outpace probiotics over the next few years. Probiotics, although traditionally associated with dairy products, are now appearing in other formats such as juices, bars and confectionary.
US consumers are very aware of unhealthy fats, such as trans-fats and saturated fats and are now becoming rapidly aware of healthy fats, such as polyunsaturated and monounsaturated fats (e.g.: omega-3 and omega-6 fatty acids). US manufacturers are responding to this interest, as over 40% of product launches in the US last year were of "high-omega" foods. There are unique omega ingredients available on the market, such as flax ingredients, which are suitable for different applications, such as spreads, dairy, baby food, juices and bread, and that address previous formulation challenges associated with oxidation causing a "fishy" taste and smell.
Many new products feature anti-oxidant ingredients, such as vitamins or "superfruits". Pomegranate, berries and açai are popular "superfruits" and there are others that are starting to appear in products. There is significant consumer awareness of anti-oxidants and their benefit, which is propelling further growth in this category. Anti-oxidants are also appearing in a number of "beauty" foods and drinks, which present a market niche opportunity, particularly for beverage manufacturers.
Americans take in 23-43% more salt than the recommended daily intake. Most consumers are unaware of how much salt they actually consume compared to the recommended daily intake. However, they are very aware of the negative health implications of consuming too much salt and sodium content is often checked on nutrition panels of products. Manufacturers are responding by introducing reduced sodium extensions of existing products and incorporating new ingredients that maintain a salty taste.
Canadian food processors should consider developing healthier versions of current product offerings and developing new products in order to meet the growing consumer demand for healthier foods in the US market. Manufacturers should keep in mind their target demographic, as different segments of US market have different health concerns and expect different functionality from their products. Manufacturers should take into account other potential demands of their target market, such as convenient format, "natural" food, etc. Manufacturers need to determine whether the functional ingredients they are planning to use are approved for use in the US market and whether label claims can be made, which can help reduce consumer confusion at the time of purchase.
Table of Contents
Snapshot of the US Functional Food and Beverage Market
Sweetening the Deal: Low-Calorie and "Natural"
Probiotics: Not Just for Dairy Products
Omegas: Beyond "Trans Fat–Free"
Anti-Oxidants: The New Cosmetic?
Pass the Sodium: Reducing and Replacing Salt
Recommendations for Canadian Food Processors
Snapshot of the US Functional Food and Beverage Market
The United States (US) food and beverage market was worth an estimated $688 billion in 2008, alone representing 18% of the global food and beverage market (Euromonitor, 2009). The retail value of the US fortified functional food and beverages market in 2007 was approximately $59 billion. In addition to this, the retail value of the US "better for you" food and beverage market (packaged foods and beverages in which the unhealthy ingredients are reduced) in 2007 was $46 billion. In July 2008, Datamonitor's forecast was that from 2007-2012 the US functional food market will have an annual growth rate of 6.1% and, going forward, the US will be the largest functional food and drink market in the world.
Growth in the functional foods category is being driven by a number of factors, including the ageing US population, high health care costs and consumer awareness of the link between diet and health. US consumers are also turning to functional foods because they are strapped for time and have challenges meeting all of their nutritional needs through traditional foods. According to a 2009 Mintel presentation on functional food and drink trends, 45% of functional food purchasers say they use functional foods to make up for less than healthy eating habits. Food and beverage manufacturers, retailers and ingredient suppliers are all recognizing the opportunities to tap into this growing market.
The Institute of Food Technologists (IFT) Conference and Food Show is the premier food technology event in the US. The show hosts over 800 exhibitors from Canada, USA, Europe and Asia, of which approximately 500 are ingredient companies. Eighty-seven percent of attendees make or influence buying decisions and 42% have R&D/technical job functions. In addition to the trade show, the conference features numerous scientific sessions on various topics, including ones on new and emerging technologies and trends. In 2009 the event took place from June 7-9 in Anaheim, California. This report explores the trends in ingredients and finished products observed at the IFT Show in 2009.
Health as a Trend Driver
Consumer concern about health is a long-term trend that is driving many other sub-trends, such as weight management, product safety and fitness. Health can be viewed as the overall driver of the ingredient trends explored in this report and seen at the IFT show in 2009.
The number of functional food introductions in the North American market grew from approximately 200 in 2006 to over 800 in 2008. With the growing number of functional food products on the market, there is also growing consumer confusion, as consumers are skeptical about the benefits and efficacy of many functional foods and product messaging is often confusing and complicated.
To help consumers make healthy food purchase decisions, the Smart Choices Program is being launched in the US in August 2009 by the American Society for Nutrition and NSF International, which will allow food manufacturers to feature a front-of-package icon on products that meet certain health and nutrition criteria. There have been other similar labeling programs in recent years, such as Hannaford Brothers Guiding Star and NuVal. Consumer education about health and healthy ingredients will continue to influence purchasing behaviour and programs like Smart Choices may help reduce consumer confusion.
Despite consumer confusion and the economic downturn, health continues to play a part in US consumer food purchases. However, taste is king for the consumer, regardless a product's health benefits. Food manufacturers cannot compromise on taste while developing healthier versions of current product offerings or launching new ones.
According to a 2009 Mintel presentation on functional food and drink trends, in a 2008 survey of US food manufacturers 60% said that antioxidants will be an important ingredient in food products going forward, 52% said omega-3 fatty acids, 49% said dietary fibre, and 34% said probiotics. A number of these ingredients and new products using these ingredients are discussed below.
Sweetening the Deal: Low-Calorie and "Natural"
According to Mintel, activity in the sweeteners market is increasing and outpacing overall new product development. Fifty-five percent of consumers say they are interested in low-sugar diet trends. Low-sugar and sugar-free product positioning tends to be in conjunction with other wellness attributes. The top three product categories that contain sweeteners are non-alcoholic beverages, dairy and gum/confectionary.
Within the sweeteners category, high-intensity, low-calorie (HILC) sweeteners have dominated in diet soft drinks, sugarless gum, and tabletop sweetener products. Sucralose leads the tabletop market with products such as Splenda. The other main HILC sweeteners used in the US are aspartame, acesulfame-K and saccharin. Products tend to contain blends of sweeteners, which allow food processors to blend more expensive sweeteners with less expensive ones and achieve better taste profiles.
Consumer Demand for "Natural"
Consumers are demanding HILC sweeteners for weight and diabetes prevention and control. But, they also have concerns about some of these sweeteners being "artificial". So, consumers' demand for HILC sweeteners is tempered by their desire for "natural" sweeteners. New products on the market are filling the "natural" niche by using cane sugar, like Pepsi Natural and Pepsi Throwback. Other products contain natural juices and nectars, such as Numi Organic Iced Tea, or maple syrup concentrates and fruit-based proteins. It should be noted that the term "natural" is currently not defined or regulated in the US, except for poultry and meat products. The term "organic" however, is regulated by the US Department of Agriculture National Organic Program. Although "natural" is not defined in the US, it was the most common claim on new food and beverage introductions over the past year. Consumer interest in "natural" food and beverages is driving demand for natural ingredients, such colourings, flavours, and sweeteners. There are some new sweeteners on the market that are both low calorie and derived from "natural" sources, presenting opportunities for food processors to offer products that can make both of these claims.
New Products: Stevia Has Arrived
"Natural", low-calorie alternatives such as Rebaudioside-A (reb-A) and agave nectar are gaining market presence. The "natural" high intensity sweetener reb-A, an extract of stevia, was granted Generally Recognized as Safe (GRAS) status by the US Food and Drug Administration in 2008. Stevia is widely used in Asia and dominates 40% of the Japanese sweetener market. In Canada stevia is only approved for use in natural health products as a medicinal or non-medicinal ingredient, within certain dosage levels specified for it in leaf powder and isolate (e.g. stevioside) forms. More information on the Canadian regulations for stevia can be found on the Health Canada website.
Cargill and Coke have now introduced the tabletop sweetener Truvia, which can also be used in processed food products and CocaCola has launched Sprite Green made with stevia. At the same time PepsiCo and the Whole Earth Sweetener Company have launched PureVia, also a stevia derived sweetener, which will compete in the tabletop sweetener and ingredient markets. With stevia fulfilling consumer needs for a low-calorie, natural sweetener and usage by major companies like CocaCola, PepsiCo and Cargill, it is well positioned for growth in the US market. Examples of new products containing stevia include Odwalla juice, Sprite Green and Nature's Answer Natural Green Tea Shot.
Looking ahead, consumers are demanding additional functionality of their sweeteners. Current functional sweeteners include isomaltose (and natural polyols such as erythritol) and prebiotic fibres. There is significant consumer interest, especially from 18-24 year olds, in sugar alternatives that offer health benefits, such as prolonged energy and boosted immunity, and in sweeteners fortified with vitamins and minerals. Multi-functional products present a market niche opportunity for food ingredient companies and processors.
Fibre: Whole Grains and More
Dietary fiber is known to reduce digestive complaints and to increase satiety without adding calories and, thus, may be useful for people who want to lose weight. A high-fiber diet lowers blood cholesterol levels and stimulates bacterial fermentation in the colon. Increased attention to dietary fiber resulted after the 2005 Dietary Guidelines for Americans and MyPyramid recommended that adults consume more fibre-rich foods, such as fruits, vegetables, and whole grains. The US Institute of Medicine recommended 19 to 38 grams of fiber per day, depending on age and gender, with at least three daily servings of whole-grain foods. However, the average American consumes only about 14 grams of dietary fiber per day.
The health benefits of high fiber and whole foods are generally well understood and recognized by consumers, which is helping to increase sales of these products. However, recent research shows that less than 10% of consumers understand the differences between the terms "soluble fibre", "insoluble fibre" and "functional fibre". So, some manufacturers use general terms, such as "whole grains" or "dietary fibre" on their packaging.
Consumers are looking for easier ways to consume fibre and food processors are responding by reformulating products with whole grains and adding fibre ingredients into products. Since 2004, breakfast cereals were the most popular category for new "high fiber" product launches and with the inclusion of cereal bars, this accounts for nearly a quarter of all launches.
Satiety: Using Fibre to Keep Full
In line with consumers concern about health and appearance is a desire to manage weight. Two thirds of US consumers consider themselves obese or overweight, while a 2007 study by the National Consumers League found that 77% of Americans had tried losing weight at some point in their life. New food and beverage products are being introduced to promote a feeling of satiety or fullness. Fibre and protein are the main functional nutrients in low-calorie, satiety foods in the US. In Japan, foods contain other ingredients to increase satiety, such as jelly drinks that contain seaweed-derived gelatin.
New satiety food and drinks include AquaFull Berry Bliss beverage mix, which contains fibre, and Designer Whey Lite & Lean Protein 2Go Blueberry drink mix, which contains whey protein. Other product examples include LightFull's Satiety Smoothies using protein/fibre blends and PepsiCo's Aquafina Alive Satisfy.
New Products
There were a number of fibre ingredients exhibited at the IFT Show for a range of applications, such as dairy, bakery, meat and beverages. Many new ingredients can add the benefits of fibre, while maintaining texture and taste. Among these is inulin, a plant-derived, soluble dietary fibre with prebiotic and health benefits related to weight management and digestion. Resistant starch is an insoluble fibre that can be used in breads, cakes and pasta to increase the fibre level and fructo-oligosaccharides are natural soluble fibres derived from a wide variety of fruits, vegetables and grains.
Fibre ingredients presented at IFT include agave fibre, an inulin-type fibre for bakery applications from GTC Nutrition, a citrus fibre from Fiberstar for frozen/thaw applications, a soluble, heat-stable fibre for carbonated beverages from Wacker Fine Chemicals, a digestion-resistant maltodextrin fibre for various applications from Matsutani America, and multiple fibre products for various applications from J. Rettenmaier and Z Trim Holdings. When considering new fibre ingredients, food manufacturers should consult Health Canada's "Guideline Concerning the Safety and Physiological Effects of Novel Fibre Sources and Food Products Containing Them" and the Canadian Food Inspection Agency's "Guide to Food Labelling and Advertising", particularly Chapter 6, which deals with approved sources of fibre and novel fibre. For the US market, companies should consult the US Food and Drug Administration's list of approved "Health Claims Meeting Significant Scientific Agreement" for fibre.
General Mills’ Fiber One Chewy Snack Bars were one of the top selling products in 2007. Kellogg’s has introduced FiberPlus Antioxidant Chew Bars and is adding fibre to a number of its ready-to-eat cereals in the US and Canada. The decision is part of the company’s target to offer "good to excellent" sources of fibre in nearly 80% of its cereals by 2010. With some consumers looking for foods that are less processed, there are also new food products on the market featuring "ancient grains", such as quinoa, teff and sorghum. Another new product is Bolthouse Farms’ Heart Healthy Pear Merlot Fruit Juice, containing Barliv, a soluble fibre made from barley that was developed by Cargill Inc.
Probiotics: Not Just for Dairy Products
The US market for probiotics has been slower at developing than in other regions, particularly Europe and Japan, and has only started building momentum since 2005. The efforts of major brands in the US market, such as Activia yogurt and DanActive dairy drink by Dannon, have had a significant role in driving the impressive growth in the US probiotic and prebiotic market. The number of new probiotics released on the US market grew by a substantial 159% in 2007, which is much higher than the 49% growth experienced by the global market in the same timeframe. By 2008, the value of the US probiotic market was approximately $1,526.7 million and the prebiotic market was $400 million.
The compound annual growth rate between 2008 and 2013 for probiotics is expected to be 5.8% and 10.5% for prebiotics. This presents an opportunity for food processors and manufacturers to introduce new products with probiotics/prebiotics and healthier versions of current products by using probiotic/prebiotic ingredients.
Consumer Awareness
A number of consumer surveys in the US suggest that there is a limited level of awareness of probiotics and their function, although this will likely increase with more product introductions. There also seems to be more awareness of probiotics than prebiotics. In 2007, the International Food Information Council (IFIC) conducted a consumer survey where 58% of consumers said they are aware that probiotics could maintain a healthy digestive system and 41% said they already consume foods containing probiotics. In addition, 57% of respondents stated they are aware of the relationship between probiotics and immune health. The questions in these surveys contained cues that may have contributed to the reported higher levels of consumer awareness than in other surveys.
New Products
Probiotics are not just for dairy products and can be used in other food products. It was evident from the IFT show that probiotics are increasingly appearing in products besides yogurt and dairy. Some new product introductions in the US include probiotic bars being launched by US chocolate maker Attune Foods, Goodbelly Probiotic Juices by NextFoods, Organic Fuel Bar "Fueled Up Beyond All Recognition" by Fubar, Gimme Dark Chocolate Candies in new omega-3 and probiotics formats by Brightspot Brands, and probiotic muffins by Isabella's Healthy Bakery. Nestle has launched an interesting, nutritional, children's drink in the US called The Boost Kid Essentials Nutritionally Complete Drink, which includes a straw containing probiotics that allows them to be consumed as the drink passes through the straw. Similarly, a bottle cap containing probiotics has also been developed for beverages.
Omegas: Beyond "Trans Fat–Free"
Because of the simplicity of the relationship between fat and obesity, fat content is one of the most commonly checked pieces of information on food and beverage labels. According to the 2008 IFIC Food and Health survey, 91% of US consumers are aware of trans-fats, more than any other type of fat, and 90% of consumers are aware of saturated fats. Consumers fundamentally understand that these types of fats are unhealthy and know to avoid them. At the IFT show, there were ingredients presented not only to reduce trans-fats in processed foods, but also to introduce "good" fats into foods.
Consumer Awareness
The largest increase in consumer awareness of fats is for omega-3 fatty acids, which rose from 63% in 2006 to 72% in 2008. Consumers are becoming more aware of adding fats which are good, rather than simply reducing consumption of "bad" fats. Approximately 28% of consumers surveyed by Datamonitor in 2008 said they had more frequently chosen foods and beverages containing omega-3 and omega-6. Approximately 40% of product launches in the US were of "high-omega" foods. Growth in this category is also expected. Packaged Facts estimates that by 2012 eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA)-enhanced foods will represent nearly 78% of all omega-3-enhanced food and beverage product sales in the US, reflecting a 20% compound annual growth rate between 2007 and 2012.
Food processors should keep in mind that consumers associate omega-3 fatty acids and fish, so using them in products like yogurts may meet with some consumer resistance. Also, consumers are somewhat skeptical about new products containing omega-3 fatty acids, as they can boost their intake directly through consuming fish.
New Products
One of the challenges with formulating with omega-3 fatty acids has been that they are susceptible to oxidation, resulting in a fishy taste and smell. However, there are unique omega-3 ingredients available on the market, with varying levels of EPA and DHA, which are suitable for different applications, such as spreads, dairy, baby food, juices and bread. There are also other omega-3 ingredients, such as flax with alpha-linolenic acids, which can be used in product formulations. Examples of omega ingredients at IFT include Ocean's Nutrition's omega-3 EPA and DHA ingredients from fish oil, Martek's Life's DHA from vegetarian sources, Monsanto Company's stearidonic acid-enriched soybean oil, Omega Protein's OmegaPure menhaden fish oil, and Pizzey's Nutritionals' Ultragrad whole milled flax seed with algae oil.
A new product using omega-3 fatty acids is Zymes Omega Solutions' OmegaChill water. There have also been recent product launches of muffins, bread, cereals, eggs, milk and juices containing omega ingredients. In addition, a number of new products in this category are aimed at children, such as Dr. Sears Popumz cookie snacks, which are fortified with omega-3 fatty acids.
Anti-Oxidants: The New Cosmetic?
Anti-oxidants are turning up in all sorts of food products, from beverages to baby food. These products are using "superfruits" as ingredients, which are fruits that are high in anti-oxidants and have high Oxygen Radical Absorbing Capacity (ORAC) values. Common superfruits include blueberries, pomegranate, açai and cranberry. Globally, between 2003 and 2008 pomegranate and açai appeared in the most number of product introductions. Other superfruits include tart cherries, goji berries, acerola, mulberries and mangosteen. In addition, there are a host of other, less well-known superfruits, such as guava, lychee, starfruit, cupuacu, graviola, yumberry, baobob, miracle berry, breadfruit, jackfruit, coffee cherry, Indian gooseberry, gac, hawthorn and sea-buckthorn. Some of these may start to be used more in formulations, particularly if they are backed by health research, while others may become "fad" foods or will not be adopted.
It is interesting to note that spices are also a source of anti-oxidants. In fact, according to a USDA National Food and Nutrient Analysis Program study of the top 50 foods with antioxidants, the top five were dried spices (ground cloves, dried oregano, ground ginger, ground cinnamon, and tumeric powder).
Consumer Awareness
According to a 2007 IFIC survey, 72% of Americans claim to be aware of the diet relationship between antioxidants for protection against free radical damage implicated in aging and various chronic diseases. This consumer awareness, plus the added benefit that many of these super fruits have positive taste profiles, is driving consumer purchases. However, some new, exotic superfruits are not available close to the US market and 59% of US consumers feel it is important to purchase foods produced locally. So, this may temper demand for some of these superfruits. Nevertheless, according to a 2008 survey of US manufacturers, 60% said that anti-oxidant ingredients will be increasingly important in food products going forward.
Many of the products containing superfruits at the IFT show also featured other healthy ingredients or benefits, such as reduced fat, sugar or added omega fatty acids, fibre and probiotics. Dr. Pepper Snapple has introduced Diet Cherry 7UP Antioxidant, which includes 10% of the recommended daily intake of vitamin E and has no sugar. Jell-O has introduced an Antioxidants Strawberry Açai flavoured gelatin snack, which is both low in calories and enhanced with vitamins A and E.
New Products: Nutricosmetics
An emerging use of anti-oxidants in the US is for beauty foods and beverages. These types of foods and beverages have largely been targeted at women to help improve skin health. They have been most popular in Asia, particularly Japan, where the functional ingredient is collagen. Other ingredients in nutricosmetics include zinc, vitamin A, C, E, biotin, lutein, omega-3, conjugated linoleic acid and hyaluronic acid, and lycopene. The global market for these products is still relatively small compared to other functional foods, with only 3% of functional foods carrying beauty claims between 2005-2008.
US consumers have been more skeptical about these products and anti-oxidant vitamins tend to be functional ingredients in nutricosmetics in the US. According to a 2008 IFIC Foundation survey, about 65% of US consumers believe that specific foods can improve appearance of skin and hair. Increasing consumer concern with appearance and health will contribute to continued growth in the category. The value of beauty foods and beverages in the US in 2008 was approximately $60 million. The market value is expected to be $123 million in 2013, representing a compound annual growth rate of about 15 percent. The number of new beauty foods launched was at a high in 2007, but then decreased in 2008. However, the number of new beauty drinks launched has been increasing every year between 2003 and 2008, and there was a large increase in new products in 2008 with US consumers being the most responsive to functional waters. As demand for these products continues, the category may see more competition from cosmetics companies.
New products containing anti-oxidants for beauty include Nestlé's Glowelle Beauty Drink, which contains antioxidant vitamins A, C and E, is available in natural raspberry/jasmine and pomegranate/lychee flavours and is sold at beauty counters at $7 per bottle. Other products include Crystal Light Skin Essentials drink mix, which is available in pomegranate lemon flavour, with plant extracts and vitamins A, C and E. Hansen Beverage Company has introduced Self Beauty Elixir, which has a blend of vitamins, minerals and natural fruit. There are also beauty teas on the US market, such as Tracy Stern SalonTea's Beauty Teas and Sipping Beauty's Multi Beautimin Tea.
Pass the Sodium: Reducing and Replacing Salt
The US Department of Agriculture's dietary guidelines recommend a daily intake of 2,300 mg (approximately a teaspoon) of salt, while most Americans consume between 3,000-4,000 mg daily. Salt is widely used both in processed foods and in cooking at home and is a key ingredient to enhance taste and flavour. In 2008, the US market for salt was estimated at $355 million and is expected to continue growing to reach $404 million in 2013. Since the early 1980s US per capita consumption of salt has increased by 50 percent. However, consumers are becoming aware of the possible negative health implications of consuming too much salt.
Consumer Awareness
According to a 2006 survey, 70% of US consumers are aware of the link between increased sodium intake and the risk of high blood pressure. In addition, 60% of US consumers check the nutrition panel for sodium content and 69% feel it is important to reduce salt intake. However, US consumers seem to be less aware of how much salt they actually consume daily and what the dietary guidelines recommend for daily salt intake. Out of the US consumers who are aware of the health risks of increased sodium intake, only 55% are very or extremely concerned about it and they are currently more concerned about reducing "bad" fats than salts.
New Products
A number of major US manufacturers have introduced "sodium reduced" product offerings. Campbell's Reduced Sodium Soup was the top selling new product in 2007. Also, Sara Lee has launched four lower sodium sliced-to-order deli meats and Frito Lays has introduced "lightly salted" chips. This year Unilever launched a global salt reduction strategy for its foods portfolio, covering over 22,000 products. Between 2004 and 2008, the number of new product launches in the US claiming "low salt" or "no salt/no sodium" peaked in 2007 at 645 SKUs and then fell in 2008 to 485 SKUs.
One reason why there have not been more reduced sodium products could be because it is has been difficult to formulate foods with reduced salt, without negatively impacting taste. Consumers will not compromise on taste, so manufacturers need to go beyond reducing sodium to replacing it with ingredients that maintain a salty flavour. There were a number of ingredients products at the IFT show that can help maintain favourable taste, while reducing sodium. Some examples include: potassium choride and salt blends by Morton Salt, ReduxSo by Bell Flavors and Fragrances, sub4salt by Jungbunzlauer Inc., and SaltTrim by Wild Flavours Inc.
Recommendations for Canadian Food & Beverage Processors
Canadian food processors targeting the U.S. should consider developing healthier versions of current product offerings and developing new products in order to meet the growing consumer demand for healthier foods in the US market. Manufacturers need to analyze their product formulation to determine the appropriate balance between removing unhealthy ingredients and/or fortifying with functional ingredients, while maintaining favourable taste.
Food processors must also consider other potential consumer demands, such as convenience, environmentally friendly packaging/production, and desire for "natural" and organic foods. Consumers are increasingly demanding multiple benefits and functionality from their foods and manufacturers must simultaneously satisfy a number of needs to appeal to consumers.
Manufacturers should keep consumer demographics in mind while developing functional foods and beverages, as not all segments of the US population are demanding functional foods and beverages in the same way. An aging population is a key driver leading to increased demand for functional products. At the same time, younger consumers represent another important segment that is driving sales. In particular, time and energy-strapped workers are seeking out functional products that provide quick health solutions in a convenient format. Also, parents are starting to take greater responsibility for the improvement of their children's' health and women, in particular, are demanding functional foods and beverages more than men.
With increasing consumer confusion about product labeling and claims, new products need to be easy to understand and should avoid displaying overly scientific language. Manufacturers should take into account existing consumer awareness of the ingredient they plan to use, as using lesser known ingredients will require more investment into educating the consumer on labels and further the risk of confusion. Manufactures should consider using claims on products when appropriate and are recommended to consult the Canadian Food Inspection Agency's "Guide to Food Labelling and Advertising", particularly Chapter 7, which deals with Nutrient Content Claims. For the US market, manufacturers should consult the US Food and Drug Administration's "Food Labeling and Nutrition: Nutrient Content Claims".
There are a number of ways to formulate healthier foods, both by reducing unhealthy ingredients and adding ingredients that are experiencing growth, such as fibre, omega fatty acids, probiotics and antioxidants. Manufacturers can learn about the latest ingredient options available through market research at venues such as the Institute of Food Technologists Show. As more healthy products become available in the US market, consumers are expecting healthier product offerings. Manufacturers should start considering how to formulate products now in order to meet consumer demand and capture new market opportunities, as health will be a long-term trend driver in the US market.
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