Scientia Forecasts Bright Future for Functional Foods

A Scientia Advisors study forecasts global sales of functional foods will hit nearly $200 billion by 2012, a 52-percent gain over 2006 sales of $128 billion.

The study was based on extensive interviews with scientists, clinicians, manufacturers and product developers, as well as on traditional market research. The predicted 7-percent rate essentially continues the 8-percent annual compound growth rate seen in the functional foods market between 2003-2006. It is nearly twice the 4-percent growth rate Scientia predicts for conventional foods and pharmaceuticals through 2012.

The expected growth in the functional foods marketplace will come as a result of a constellation of factors, according to Bob Jones, a principal consultant at Scientia, who led the study. Factors include increasing scientific evidence of functional foods’ effectiveness; increased media publicity encouraging consumer adoption; an aging population with growing chronic health needs, and food companies’ ability to work in a regulatory environment that increasingly requires scientific substantiation of claims being made.

Scientia predicts especially dramatic growth of functional foods in China, where a doubling of dairy production in the past four years has greatly increased the availability of milk and yogurt.

Not all functional food products enjoy equal success, the study found. For example, yogurts fortified with probiotics have enjoyed great success, where margarines fortified with a cholesterol-lowering sterol have largely failed in the United States. The study identifies several factors responsible for the commercial success of some functional food products and the disappointing sales of others.

Click here to download the study.