Press Release Summary = The nutraceuticals market is generally defined as encompassing functional foods and vitamins, minerals and supplements. Functional foods are described as those foods (and some drinks) containing health benefits beyond their usual nutritional value.
Press Release Body = Nutraceuticals - Market Assessment
The nutraceuticals market is generally defined as encompassing functional foods and vitamins, minerals and supplements. Functional foods are described as those foods (and some drinks) containing health benefits beyond their usual nutritional value. Growth in the whole nutraceuticals sector is supported by continuing interest in keeping healthy, particularly among the over-40s, and retaining the ability to enjoy a long and healthy lifestyle.
There continues to be substantial growth in the functional foods market, put at 24.1% in value terms in 2004/2005 (12 months ending February) over the same period in 2003/2004. This was principally due to the very strong sales growth in probiotic yoghurt and yoghurt drinks, which represent a major and increasing proportion of the market. Over the period from 2000/2001 and 2004/2005, cereals bars, yoghurt drinks, soya milk and yoghurts experienced the strongest growth.
2003 and 2004 saw increases in the vitamins, minerals and supplements market, after a previous sales decline in 2001 and then a static situation in 2002. The major sectors include multivitamin/multimineral products, pioneered by Wyeth\'s Centrum and followed by competing products from Seven Seas and Roche/DSM. The large, established fish oils market has staged a recovery to just above the sales level seen at the start of the decade, while the value of the glucosamine sector is rising rapidly.
Functional foods manufacturers tend to be limited to the major international food and drink producers that can afford the high costs of research and development (R&D) and promotion - such as Danone, Kellogg\'s, Unilever Bestfoods and Nestlé. However, the number of companies involved in this sector is increasing, as its high growth rate continues. Within vitamins, minerals and supplements, earlier adverse publicity regarding the value of taking such products has resulted in several recent changes in manufacturers. The most important involve DSM\'s purchase of Roche\'s vitamins business. In addition, there have been management takeovers at Wassen and Efamol, and a break-up of Peter Black\'s healthcare business.
The vitamins, minerals and supplements market is becoming increasingly dominated by retailers\' own labels, with mixed retailers, drugstores, health-food shops and grocery multiples gaining market share with their own brands, at the expense of brands sold through these outlets and all sales through multiple chemists.
Advertising expenditure on functional foods grew by 84% in 2004 compared with 2003, while that for vitamins, minerals and supplements rose by 12.7%. In spite of this, Key Note predicts somewhat slower sales growth in the functional foods sector over the period from 2005 to 2009, compared with 2000/2001 to 2004/2005. However, the vitamins, minerals and supplements sector is expected to experience stronger growth.
2022
