Younger consumers are a key target audience

for functional foods and beverages; those age 18–24

are most likely to purchase such a product. The ability
to improve mental performance is a sought-after benefit
among users of functional products.

pg 24 04.08 • www.ift.org

Whether to prevent disease, pump up performance, or to
promote overall wellness, consumers are increasingly seeking
out products that deliver highly specific health benefits.
F
unctional foods are fast becom-
ing a part of everyday life.
Two-thirds of adults made an
effort to buy more fortified foods
last year—up 17% over 2005 (MSI,
2007a). One-third of young adults
age 18–24 regularly drink energy
beverages (Experian, 2007). And
more than half (57%) of mothers of
preteens bought organic foods last
year (MSI, 2007b).
With the majority (69%) of
Americans pursuing a preventive
lifestyle and 27% taking a treatment
approach, not surprisingly, products
that offer specific health benefits
that make it easier for consumers to
address their individual needs are
enjoying explosive sales growth.
Campbell’s Reduced Sodium soup
topped Information Resources Inc.’s
“Top 10 Food/Beverage Paceset-
ters” list of the most successful new
brands of 2006–2007, with year-one
Photo copyright © STOCK4B/Getty Images
Functional Food Trends
sales of $101 million (IRI, 2008a).
Gatorade A.M, which ranked No. 4,
is targeted to those who exercise in
the morning. General Mill’s Fiber
One chewy snack bars, No. 5 on the
list, deliver 35% of the daily value
of dietary fiber. Dannon DanActive
yogurt drink, No. 7, helps boost
immunity, and Dannon Activia Light
yogurt, No. 9, regulates digestive
health while providing fewer calo-
ries than a traditionally formulated
product.
The remainder of the Top 10
list—Birds Eye Steamfresh frozen vege-
tables, No. 2, Vault/Vault Zero regular
and diet soft drinks, No. 3, Heineken
Premium Light Lager beer, No. 6, Sara
Lee Hearty & Delicious breads, No. 8,
and Jazz Diet Pepsi soft drink, No.
10—also had a healthy component.
(See Figure 1 for a detailed breakout
of the leading benefits offered by the
Pacesetters.)
BY A. Elizabeth Sloan
Perhaps most exiting, it’s getting
harder to tell healthy products from
traditional products—and that’s
good for growth. Cascadian Farm’s
Organic Granola now comes in Dark
Chocolate Almond. Organic Bistro gour-
met frozen meals balance good carbs,
fats, and protein. Rachel’s “Wickedly
Delicious” yogurts boast calcium,
vitamins D and A, omega-3 DHA,
and a prebiotic and come in exotic
flavors like Pink Grapefruit Lychee.
Globally, functional foods sales
are projected to grow from $75 bil-
lion in 2007 to $109 billion by 2010
(GBA, 2007). Functional beverages,
the fastest-growing global segment,
will top $34 billion by 2010. U.S.
functional food sales reached $29
billion in 2007.
In the United States, “lesser
evil” products continue to dominate
the healthy market. ACNielsen’s
LabelTrends reports that for the year
04.08 • www.ift.org 25 pg
 Functional Food Trends
ending (Y/E) 7/14/07, dollar sales
of products carrying a low-fat claim
rose 1% to reach $14 billion, fat-free
2% to $9.5 billion, reduced-fat, 4%
to $8 billion, and those absent from a
specific type of fat 38% to $8 billion
in food, drug, and mass merchan-
diser channels, excluding Wal-Mart
(FDMx). Those with a reduced-
calorie claim grew 6% to $11 billion,
sugar-free 6% to $5 billion, no sugar
added 6% to $3 billion, low-salt/
sodium 3% to $11 billion, and no
salt/sodium 1% to $4 billion
(Lempert, 2007a).
One-third of shoppers (36%) are
trying to reduce the risk of devel-
oping a health condition, follow a
doctor’s advice (30%), or manage/
treat a specific condition on their
own (25% ), according to Food Mar-
keting Institute data (FMI, 2006).
Perhaps surprisingly, those
age 18–24 are the most likely to
purchase a functional food/drink,
primarily fortified bars, energy/
sports drinks, candy, and smoothies
(Mintel, 2006). Although use of
functional foods currently declines
with age, older consumers are more
likely to use functional products on
a regular basis.
The young adult population
will grow substantially through
2015—with the number of those age
18–24 up 6% and those age 25–34
up 12%, as will the older-adult
Helping the youngest members of the household treat their tummies
right, Happy Bellies infant cereal contains probiotics and DHA.
pg 26 04.08 • www.ift.org
market segment—with the number
of those age 55–64 up 35%. Thus,
functional food marketers need to
create distinct products targeted to
members of these key groups
(Sloan, 2007a).
Lastly, as Americans become
more familiar with the benefits of
functional food, expect products that
offer multiple health benefits to be
most successful.
1. Healthy Household Halo
Despite more Americans cooking/
eating at home, 57% of shoppers
making a lot of effort to eat healthier,
and two-thirds (68%) of households
eating together five nights/week
or more (FMI, 2006), healthier
“family-sized” convenience foods are
virtually unavailable.
Only 8% of shoppers say there
are many healthy packaged foods
(FMI, 2007). With one-third of all
dinners using a convenience item,
and frozen meal starters posting the
largest gains in supermarkets for Y/E
11/3/07, their market potential is
enormous (MSI, 2007c; ACielsen,
2008). Fantastic Foods’ new
low-sodium family-sized, starter Veg-
etarian Simmer Soups mixes and A.C.
LaRocco’s Super Food Rx pizzas are
among the few.
Raised on the “Basic 4”—and
the most likely to cook the evening
meal—those age 50+ are sending
FruitaBü Fruit Sploooshers from Stretch Island
Fruit Co. are positioned to help get kids to be
more enthusiastic about consuming fruit.
sales of healthier side dishes and
vegetables soaring.
Households with a member on
a restricted diet are significantly
more likely to impose their behaviors
on the rest of the household. Half
(53%) of adults are controlling their
diet—61% for weight, 36% choles-
terol, 22% blood sugar, 18% high
blood pressure, and 14% diabetes
(Mintel, 2007a).
Products with healthier prepa-
ration techniques are fast gaining
ground. Hain Celestial Group’s
Rosetto’s all-natural frozen Steam ‘n
Eat ravioli microwaves in minutes
and has no trans/hydrogenated
fats. Earth’s Best’s Kidz natural,
antibiotic-free Baked Chicken Nuggets
provide 10 g of whole grain/serving.
Babies and young children also
drive healthier household eating, and
with the number of kids under age 6
projected to grow 10% by 2015, the
time for health-promoting toddler/
infant foods is now (Sloan, 2007a).
Beech-Nut’s DHA+ baby foods include
DHA for brain and eye development
and a probiotic for digestive health.
Earth’s Best’s Organic Infant Formula
with Iron also includes DHA and

ARA. Happy Baby’s new Happy Bel-
lies infant cereal contains probiotics
and DHA.
First Juice®, for kids 6–30
months, has less than half the sugar
of regular organic juices, is fortified
with vitamins A, C, D, and calcium,
and comes in a sippy-top bottle.
R.W. Knudsen’s Sensible Sippers are
made with 50% organic juice and
50% water; these tot-friendly drinks
come in mini juice boxes
(4.3 oz). Volvic’s Y Water is a new
kids’ water—with a clever bottle
that can also be used as a toy—
offered in Y Immune Water, Bone Water,
Brain Water, and Muscle Water
varieties.
In recent years, sales of health-
ful kids’ foods have outsold regular
kids’ products 3:1 (IRI, 2006). Half
of moms (49%) are trying to limit
caffeine consumption. For sugar, it is
36%, artificial sweeteners 33%, trans
fat 32%, high fructose corn syrup
32%, sodium 24%, artificial colors
18%, and calories 17%. Calcium,
vitamins C, E, D, and Bs, omega-3s,
iron, and folic acid are the nutrients
they most want to include for their
children (MSI, 2007d).
With 28% of parents admitting
that they have an overweight child,
one in eight kids having two or more
risk factors for heart disease, and
protection from diseases later in life now
the No. 3 concern of moms, after
immunity and growth/development,
expect healthy kids foods to become
more restrictive yet.
2. Natural End Benefits
Nine out of 10 (88%) of consum-
ers have long felt it important to eat
foods that are naturally good sources
of nutrients vs taking dietary supple-
ments (67%) or eating fortified foods
(56%), according to 2007 Health-
Focus data. Recent scientific
validation of the health benefits of
phytochemicals and superfoods have
convinced consumers that key bene-
fits are, in fact, naturally achievable,
thus creating a new, unstoppable
trend to whole food nutrition.
The majority of shoppers believe
Functional Food Trends
there are bioactives in foods that
help prevent and treat disease: 75%
positively link antioxidants with
immunity, 65% connect omega-3s
and heart health, and 61% associate
green tea with disease risk reduc-
tion (HealthFocus, 2007).
Led by the flavonoids and poly-
phenols, phytochemicals began to
cross over to mass market status in
2007, according to Sloan Trends
TrendSense™ model (Sloan, 2007b).
Others, including anthocyanins
and carotenoids, are perfectly
positioned for launch into the
health-food channel. Expect the
next wave of phytochemicals to
go beyond deriving health benefits
from antioxidants and to focus on
other classes of phytochemicals
with non-antioxidant mechanisms.
Savvy marketers are deliver-
ing natural health benefits via a
combination of intrinsic nutrients
and phytochemicals. Green Giant
created Healthy Weight, Healthy
Vision, and Immunity Boost frozen
vegetables. Dole’s frozen fruits are
formulated into Heart Health Mixed
Fruit and Immunity Blend Tropical
Fruit.
The name of PepsiCo’s Aquafina Alive Satisfy
Blending whole fruits/juices is clearly explains the product benefit—satiety.
another healthier approach. Camp-
bell’s V-8 V-Fusion Banana Strawberry
drink combines 10 fruits/vegetables, Exotic Juice Supplements. Clearwater
provides a serving each of fruits and County Foods’ Garden Green’s Gar-
vegetables, and is high in vitamins A, banzo’s are naturally high in protein,
C, and E. Wyman’s high antioxidant fiber, iron, manganese, magnesium,
Wild Blueberry Black Current Juice deliv- and folate. Watch for powerful new
ers two servings of fruit per glass. health benefits from cooking spices,
Marketers are making it easier herbs, and seeds. Fruits, vegetables,
to get a serving of fruit/vegetables. and flowers are increasingly being
Stretch Island Fruit Co.’s FruitaBü used to provide foods with a variety
Organic Fruit Sploooshers deliver of flavors, aroma, and a healthy aura.
organic “smoooshed” fruit via kid- Enhancing nutrient levels in
friendly tube packaging. Nestlé’s meats, eggs, and milk naturally via
Juicy Juice for kids provides two serv- specialized animal feeds is another
ings of fruits/vegetables and Green strong trend. Omega-3 deli meats
Giant’s Giant Bites baked nuggets are and milk have debuted in Canada.
filled with veggies. Lotus Foods’ Organic Jade Pearl Rice is
Blood oranges, goji berries, infused with a bamboo extract, rich
seabuckthorn, mangosteens, in fiber, minerals, and amino acids.
garbanzo beans, and specialty Lastly, color has become a new
mushrooms are among the new code for healthy foods, e.g., red
superfoods. Pure Fruit Technologies foods are known for lycopene, lutein,
introduced Goji•Zen and Seabuck•7 and vitamin C. Unilever introduced
04.08 • www.ift.org 29 pg
 Functional Food Trends
Knorr Color Soups in Europe with veg-
etable/fruit soup blends in a variety
of colors (Dornblaser, 2008).
3. Balancing the ‘Bul-get’
The U.S. weight loss market—
projected to grow from $58 billion
to $69 billion by 2010—is undergo-
ing a sea change as consumers shift
from dieting/weight loss programs
to managing weight via smaller por-
tions, specific food restrictions, and
light/low-fat and super-satiating
foods (Marketdata Enterprises,
2007a). In 2007, dieting was at its
lowest level in 16 years (NPD, 2007).
Among the 52% of adults who
tried to lose weight last year, only
12% followed a diet (IFIC, 2007a).
Sales of low-carb foods in FDMx fell
45% for Y/E 9/9/07 (IRI, 2007a).
Kraft has renamed its South Beach
Diet line as South Beach Living.
Reducing portion sizes is second
only to exercise as the most common
weight-control method: 69% used
smaller portions to lose and 51%
Figure 1. Benefits offered by top 10 new food and beverage brands, “Pacesetters,” introduced February 2006 – January 2007. From IRI.
pg 30 04.08 • www.ift.org
to manage weight (IFIC, 2007a).
Cutting calories was the third-most-
frequent weight loss method—used
by 60% of consumers. Reducing fat
calories was fourth, used by 41%, and
cutting carbs was fifth, with 30%
taking this approach (IFIC, 2007a).
Satiety is a new weapon in the
war on weight (Sloan, 2007c).
Global sales of satiety foods reached
$7.5 billion in 2005; 29% of new
satiety products were launched in the
U.S. last year (Innova, 2008). Dan-
non’s Light & Fit Crave Control yogurt
and LightFull’s Satiety Smoothies are
based on protein/fiber blends. Fuze’s
satiety beverages are aimed at school
vending. Slim-Fast launched Slim-Fast
Hunger Shot daily dose drink in the UK.
Half (54%) of those trying to
lose weight substituted water for
sugared drinks/juices (Lempert,
2007b). PepsiCo’s new Aquafina
Alive Satisfy has 10 calories and 10%
DV of fiber to help lightly fill you up.
Hint’s premium waters come in pear
and other flavors. Calorie-burning
Corozona’s Heart Healthy potato crisps are more
than just a savory snack; they are also a source of
plant sterols.
drinks have found a niche, especially
among young adults. Coca-Cola/
Nestlé’s calorie-burning Enviga
green tea drink posted $24 million
in FDMx sales in 2007, with sales in
convenience stores likely double that
(NNB, 2008). Steaz Sparkling Green
Tea now comes in a diet version.
Sloan Trend’s TrendSense™ model
confirms that metabolism and blood
sugar control became viable weight-
loss mass markets in 2007 (Sloan,
2007b). Although Slim-Fast and
NutriSystem tout the Glycemic Index,
its interest is limited to the health
food channel. Liquid/powdered
weight meal replacement drink pene-
tration is 18% (Mintel, 2007a).
With one-third (34%) of those
age 12–17 often trying to lose
weight, teen weight control is a
fast-emerging opportunity (Expe-
rian, 2007). Disproportionately
high levels of obesity among African
American and Hispanic women
age 40+ are creating a demand for
ethnic-focused weight-control foods.
4. Contemporary Conditions
As 31 million Americans turn age 65
over the next 10 years, and the oldest
of the 76 million baby boomers enter
their 60s, the demand for condition-
specific foods will skyrocket. Half
(50%) of those age 55+ already have
high cholesterol, half (50%) have high
blood pressure, 28% osteoporosis,
and 18% diabetes (IRI, 2007a).
Heart disease and cancer remain Amer-
ica’s top health concerns: 58% are extremely
concerned about heart disease, up 3% over the
past two years, and 57% have that level of
concern about cancer, up 4% (HealthFocus,
2007). Last year, one-third (32%) of con-
sumers made a strong effort to eat foods with
omega-3s, DHA or EPA, 20% did so with
cholesterol-reducing products, 18% with
olive oil, and 5% with co-enzyme Q10 (MSI,
2007a).
Expect polyphenols and flavanols to see
increased use in heart-healthy products, pep-
tides and gamma-aminobutyric acid (GABA)
for blood pressure, and plant sterols for cho-
lesterol management. Unilever’s
pro.activ is the first daily dose cholesterol-
lowering mini-drink with plant sterols in the
U.S. Corozona’s Heart Healthy potato crisps in
Pacific Rim Barbecue and other exotic flavors
also contain plant sterols. Lakewood Organic
Heart Healthy Pomegranate juice line contains
omega-3s.
As boomers age 45+ confront a greater
risk of heart attack and stroke, ingredients
that increase circulation and prevent danger-
ous clots—such as cocoa flavanols—will
find a welcome market.
Post-menopausal women—who are
now nearly one-third of the U.S. female
population—and are at greater risk for heart
attacks, stroke, bone fractures, obesity,
Unlike some traditional Asian fare, which is high in sodium, Kahiki Naturals are sodium-reduced.
depression/mood issues, insomnia, peri-
odontal disease, and eye problems—are
another untapped functional food opportu-
nity. With almost 12 million men having low
bone mass and 2 million with osteoporosis, a
male bone-health market is fast approaching
(NOF, 2007).
Half (47%) of adults are extremely con-
cerned about arthritis, up 6% in the past
two years, and 80 million suffer joint pain/
arthritis (HealthFocus, 2007). With 32%
of seniors having knee pain and 15% neck
pain, and one in four boomers experiencing
back pain, expect more targeted products for
healthy joints (HHS, 2007).
With more than one million new cases
per year and 43% of adults very concerned
about diabetes, up 5% in the past two years
and 9% for those age 50+, the demand for
products that help control blood sugar will
continue to grow (HealthFocus, 2007).
Blood sugar management and insulin resis-
tance have reached mainstream market
status; awareness of the Glycemic Index,
blood sugar/energy, pre-diabetes, and Syn-
drome X, have not (Sloan 2007b). Still, one
in 10 shoppers checked the label for the Gly-
cemic Index in 2007 (FMI, 2007).
Dental health and periodontal problems
are another fast-emerging food opportunity.
One in three adults 30+ and half of those
55+ have periodontal issues. Vitamin C and
calcium can play important preventive roles
04.08 • www.ift.org 33 pg
 Functional Food Trends
(AAP, 2007).
Sarcopenia or muscle wasting,
irregularities in fat metabolism, high
triglyceride levels, nutrient-dense
foods, and calcium, vitamin D,
and vitamin B-12 deficiencies will
represent new functional opportuni-
ties as the population ages. Concern
for food/drug interactions will also
reach an all-time high.
5. Proactive Lifestyles
With the majority of consumers
trying to live a preventive lifestyle,
fortified foods and beverages have
quickly become a way of life. Vita-
min C topped the list of nutrients
consumers were seeking out last
year; 68% of consumers were mak-
ing a strong effort to get more of it,
followed by 49% who were seek-
ing more calcium, 46% B vitamins,
35% fiber, 33% antioxidants, 33%
vitamin E, 32% omega-3s/DHA/fish
oil, 28% vitamin A, 26% omega-3s,
25% potassium, 24%
iron, and 19% folic
acid (MSI, 2007a).
Seniors were
twice as likely
pg 34 04.08 • www.ift.org
as any other age group to consume
omega-3s, vitamin E, and calcium,
and are regular users of vitamin C,
B-12, B-complex, antioxidants, and
herbal products (Experian, 2007).
Antioxidants, vitamins E and C,
calcium, and omegas are the top
nutrients used by boomers.
Beta-carotene and vitamin E
are two nutrients that have recently
regained mass market status after
being hit by negative scientific
publicity (Sloan, 2007b). Phy-
tochemicals, amino acids, and
probiotics will likely be among the
next wave of fortification ingredi-
ents. Gallup reports that last year
12% of consumers made a strong
effort to consume more lycopene,
12% lutein/zeaxanthin, 11% amino
acids, 11% glucosamine, 9% probiot-
ics/prebiotics, and 1% polyphenols
(MSI, 2007a).
While limiting fat remains a
cornerstone of healthy living, con-
sumers have become as concerned
about the type of fat as they are about
the amount. Just over seven out of
10 consumers tried to limit trans fat,
animal fat, and saturated fat in their
diet last year (IFIC, 2007a). Unfor-
tunately, awareness of mono- and
polyunsaturated fats has fallen dur-
ing the past year.
Frozen organic dinner rolls from French Meadow
Bakery are both convenient and wholesome.
Just under half (45%) of shop-
pers checked the label for sodium,
up from 39% the year before, 45%
checked calories, and 42% checked
sugar content (FMI, 2007). Kahiki
Naturals frozen gourmet Asian meals
are lower in sodium and contain no
trans fats.
Consumers are also recognizing
the potential for functional foods in
other lifestyle areas such as improv-
ing immunity.
With older consumers undergo-
ing vision changes and coping with
night vision issues and contact lens
use at an all-time high, eye health is
fast becoming an important func-
tional food opportunity, ranking
No. 4 on the list of consumer health
concerns (HealthFocus, 2007).
Antioxidants, including vitamins C
and E, beta-carotene, zinc, lutein,
and zeaxanthin are well-known for
their role in ensuring eye health.
Sales of Bausch & Lomb’s Preservision
supplement—based on a National
Eye Institute Study of these ingredi-
ents—rose 30% in unit sales in drug
stores for Y/E 12/10/07 (Anon, 2008a).
Lastly, functional food prod-
ucts that enhance skin, hair, and
nails from the inside out are another
exciting market (Sloan, 2007c).
The U.S. “cosmeceutical” market is
expected to grow from $14.9 billion
to $17.2 billion by 2010 (Packaged
Facts, 2007a). Danone’s high-antiox-
idant Essensis yogurt and Magic Fruits’
Beauty Snacks—made from dried
fruits naturally high in antioxi-
dants—are two of the latest “inner
beauty” market entrants in Europe.
6. Simpler, Greener, and Cleaner
Many consumers are taking a sim-
pler, more-natural approach to the
foods they eat, looking for foods
with only a few ingredients and as
fresh and close to the farm as time
and budget will allow. Sales of prod-
ucts carrying a natural claim grew
8% to $19 billion in FDMx sales for
Y/E 7/3/07 (Lempert, 2007a).
Organic food and beverage sales
grew 13% in 2007 and are expected
to continue at double-digit growth

A UK organic pioneer, Green & Black’s chocolate
now is more widely available to U.S. consumers.
through 2010 (IRI, 2007b). More
than half (55%) of consumers pur-
chased organic fruits and vegetables
last year, and one-third (34%) pur-
chased organic foods/drinks other
than produce (MSI, 2007e).
Whole and heritage grains are
among the ingredients that best
symbolize this new natural direc-
tion. All-natural, instant Quaker
Simple Harvest multi-grain hot cereal
delivers on this increasingly com-
mon desire for simpler foods. French
Meadow Bakery’s “take & bake”
frozen dinner rolls include Sprouted
Organic Peasant Rolls with Ezekiel
Grains. Seeds and garden herbs do
much to add an earthy and whole-
some touch.
Consumers believe local products
are fresher, have fewer pesticides,
and, in general, are of higher quality
(Hartman, 2008). More than three-
quarters of consumers (77%) say
they are currently buying products
they perceive to be locally made or
produced. One quarter (25%) of
consumers now cite farmers markets
as their preferred location for fresh
produce (IRI, 2008b).
Artisan and family farms are
another healthier homespun direc-
tion. Products in the Heritage Line
from Amish Naturals are carefully
crafted in Amish kitchens. Straus
Family Creameries Barista milk is
the first organic milk made just for
coffee. Ruth Kase’s cheeses challenge
you to “taste the difference tradition
makes.” American Roland sells Hand-
Packed Tuna Fillets in olive oil.
Hormones topped the list of
ingredients that consumers were
least comfortable consuming,
with 81% of consumers expressing
discomfort, followed by trans fats,
mentioned by 79% of consumers.
Not surprisingly, organic and natu-
ral meats are a strong and growing
category.
Concern over environmental
contamination and the sustainability
of species—especially fish—con-
tinues to grow. Wild Planet Inc.’s
Wild Planet Minimal Mercury canned
tuna, is tested for mercury levels
by an independent testing firm.
One-quarter of consumers actively
look for products that are inherently
better for the environment and 29%
look for sustainable packaging (IRI,
2008b; Sloan, 2007d).
Fair trade is developing into a
global movement. Sales of fairly
traded products across Europe, the
U.S., Australia/New Zealand, and
Japan have experienced double-digit
growth since 2003 (Datamonitor,
2008). The U.S. has the largest fair-
trade market at $455 million; those
in the UK spend the most per capita.
Food scares, ethnical issues,
and health concerns are helping to
fuel the demand for more vegetar-
ian and vegan foods. The processed
food vegetarian retail market totaled
$1.2 billion in 2006 and is projected
to reach $1.6 billion in the next five
years (Mintel, 2007b).
7. Smart Treats
With two-thirds (66%) of consumers
Functional Food Trends
trying to eat snacks with more nutri-
tion, 63% looking for lower-calorie
favorites, and one-quarter looking
for 100-calorie snack packs, provid-
ing healthier snack options is a “must
have” strategy. Although indulgent
snacks still account for two-thirds
of snack market sales, healthy snack
sales outpaced traditional snacks
nearly 3:1 over the last few years
(IRI, 2007d).
When it comes to formulating
healthy snacks, avoiding trans fat
is an important characteristic for
57%, followed by low-fat, which is
important to 47%, and whole-grain,
important to 46% (IRI, 2007b).
Better-for-you chips posted the
highest growth over the past few
years, followed by trail mix, rice,
popcorn cakes, and yogurt (Mintel,
2008b). Without a doubt, freeze-
dried fruits and fruit chips are the
hottest trend in the snack business
in 2008. Stoneridge Orchards All
Organic Dried Fruits are sulfite- and
preservative-free. Fruitaceuticals’
PomaCrans popable snack is bursting
with antioxidants. Fruit chips posted
growth of 98% over the previous
year and veggie chips were up 32%
(IRI, 2007b).
With fresh fruit, nuts, dried
fruit, trail mix, and peanut butter/
jelly among the most frequently
consumed healthy snacks, it’s not
surprising that savvy marketers are
pursuing healthy combinations.
Bear Naked’s All-Natural Peanut But-
ter Granola allows you to rediscover
the indulgent flavor of childhood
in a better-for-you snack. Sencha’s
Delicate Pear Green Tea Bar marries
whole grains, fruit, nuts, seeds, and
green tea.
Nuts are also exploding in
popularity. Divine Foods Boomi Bars
deliver indulgent flavored nuts,
seeds, and fruits in Pistachio Pineapple
and Apricot Cashew. Odwalla’s Chewy
Nut Bar is an excellent source of cal-
cium, vitamin E, and folate.
Dark chocolate continues to have
unstoppable health appeal and sales.
Green & Black’s dark 85% organic
chocolate bar has 85% cocoa con-
04.08 • www.ift.org 37 pg
 Functional Food Trends
tent. Sweetriot chocolate-covered
cocoa nibs, is a new, low-calorie
antioxidant-rich way to snack. Seri-
ous athletes will love BNG’s Choklat
Crunch Power Crunch bar with 10 g of
whey protein surrounded by world-
class Belgian chocolate. Fruit for
Life’s new chocolate-dipped straw-
berries are deliciously healthy.
Simply Wicked Confections Gin-
ger Bears and Naked Ginger candies are
made with real ginger and less sugar.
Honest Foods Granola Planks are the
first crumble-your-own granola.
Americans are also eating fewer
bars than two years ago: 30% said it
is because they are not using them
for weight loss to the extent they did
previously. Among this group, 17%
cited high calorie content, and 19%
cited sugar content (Mintel, 2007c).
Lastly, parents have four main
strategies when it comes to kids’
snacks: 63% watch portion sizes,
60% look for snacks with nutrients,
40% use low-fat snacks, and 34%
opt for low-calorie (IRI, 2007b).
According to HealthFocus 2007
research, the absence of artificial
sweeteners has a strong/moder-
ate influence for 62 percent when
they are trying a new brand of kids’
product. Other factors are contains
only natural ingredients, which
Allergaroo entrees from Allergy Friendly Foods LLC are free of all of the eight major allergens.
pg 38 04.08 • www.ift.org
influences 59%, grown without pes-
ticides 59%, no artificial colors or
flavors 58%, lower in sodium 57%,
lower in calories 55%, and individual
portion-size package 51%.
8. Sensitivity Training
The number of adults who perceive
that they, or their children, suffer
from food allergies, intolerances,
and sensitivities continues to grow,
creating lucrative markets, dispro-
portionate to their true medical
base. One in five (20%) of U.S.
adults say they have a food “sensi-
tivity;” 28% of parents report their
child is afflicted (Mintel, 2007d).
With 70 million Americans
suffering from digestive ailments,
sensitive tummies represent an enor-
mous functional food opportunity
(NIDDK, 2007). Over one-third
(37%) of consumers are very/extremely
concerned about gastrointestinal (GI)
issues, up 6% in the last two years
(HealthFocus, 2007).
ACNielsen reports sales of foods
carrying a digestive health/probiot-
ics claim reached $712 million in
FDMx for Y/E 11/3/07, up 48%
over 2006 (Lempert, 2007c). Along
with dairy products, baby foods,
bars, and cereals are the fast-grow-
ing probiotic segments. Only 11% of
consumers were aware of the term
probiotics in 2007.
Watch for increased fortification
of probiotic-containing products.
GoodBelly’s yogurt touts 11 added
nutrients. A horsepower race is also
developing in terms of both the
number and uniqueness of probiot-
ics strains; Cascade Fresh’s Cascaders
smoothies have eight live active
cultures.
Awareness of dietary fiber’s role
in digestive health is also high; 86%
of consumers link fiber with a healthy
digestive system, and 74% associate it
with heart disease prevention (IFIC,
2007b). Sales of Proctor & Gamble’s
Metamucil Fiber Sure jumped 273%
in unit sales in drug stores for Y/E
8/12/07 (Anon., 2007).
Similar in nature to fiber, pre-
biotics have a strong future and
are perfectly timed for launch into
the health food channel; probiot-
ics became a mainstream market in
2007 (Sloan, 2007b).
Low-acid products represent
another important digestive market.
Proctor & Gamble’s Folgers Simply
Smooth stomach-friendly coffee is
expected to reach 10% of the $19
billion coffee market (Anon., 2007).
Low-acid tomatoes, teas, juices,
spaghetti sauces, and soups are other
 Functional Food Trends
high-potential segments.
There is also market potential for
digestive-health products targeted
to kids. Nearly one-third of moms
have had children sent home from
school with GI problems; 40% are
regularly awakened by their child’s
discomfort. Lifeway’s ProBugs Organic
Whole Milk Kefir is a great grab-and-
go preventive treat for kids (Amerfit,
2007).
Our aging population will cause
other digestive issues to move into
the spotlight, including diverticular
disease, gastrointestinal reflux dis-
ease, and irritable bowel syndrome.
Gluten-free products are pro-
jected to grow from $870 million to
$1.7 billion by 2010 (Packaged Facts,
2007b). In 2007, 16% of shoppers
checked the label for gluten (FMI,
2007). Hain Celestial Group’s new
gluten-free line of frozen meals is
fortified with the nutrients com-
monly deficient in gluten-free diets
and has a prebiotic to aid diges-
tion. Allergy Friendly Foods LLC’s
Allergaroo entrees—free of all of
the eight major allergens—come in
shelf-stable microwaveable pouches
in spaghetti, chili mac, and other
flavors.
One-quarter (24%) of consumers
tried to limit consumption of lactose
in 2007, down from 32% in 2006;
28% tried to avoid dairy (IFIC,
2007a). While soy foods remain an
important alternative, sales have suf-
fered due to the retraction of a heart
health claim by the American Heart
Sharkies Kids Sports Chews are an early entrant into the category of energy-boosting products targeted to kids.
pg 40 04.08 • www.ift.org
Assn. and mixed results on soy’s
menopausal benefits. Soymilk sales
continue strong growth, however.
Silk soymilk now is fortified with
fiber and also offers a new line of fla-
vored lactose-free coffee creamers.
Rice and oat milks and “ice creams”
also are coming on strong.
9. Vitality Treadmill
Energy was the top reason consum-
ers made a dietary change last year
(Roper GfK, 2007). More than half
of adults (55%) need something to
give them an energy boost several
times a week, 48% to increase their
stamina/physical endurance, 46% to
help them wake up, 43% to improve
mental alertness, and 40% to keep
them awake (MSI, 2007e).
B-vitamins and vitamins overall
are the nutrients consumers believe
most important to achieve high
energy levels. In addition, more than
one-third (35%) cite protein, 32%
caffeine, 25% iron, 22% carbs, 21%
ginseng, 20% sugar, 19% green tea,
14% glucose, 13% amino acids, and
12% ginkgo (MSI, 2007e).
Longer-lasting energy, e.g.,
Redline Power Rush offers up to seven
hours of “pure energy;” low-calorie
options and energizing waters such
as Emergen-C’s Health & Energy Water
are among the latest trends. Clean
energy drinks, e.g., Skylar-Haley’s
sparkling Organic ESSN Energy drink,
powders, and effervescent tablets
and hybrid concepts are other new
approaches.
While older adults are the least
likely to use energy products, they’re
as likely to select foods for energy
as those age 18–29 (HealthFocus,
2007). With 40% of Boomers—and
34% of seniors—reporting lack of
energy/tiredness, vitality beverages
are a very big idea.
Sharkies’ Kids Sports Chews
and Crayons sports drink are among
the first sports products made
specifically for kids. Steaz’s new
Decaffeinated Sparkling Green Teas are
available in school vending machines.
Teens are more than twice as likely
to use energy drinks as adults (Min-
tel, 2007f).
Creating sports nutrition prod-
ucts for those age 50 and older—the
fastest-growing group of exercis-
ers—is another strong idea. Those
50+ exercise at almost the same
rate as those 18–24 and are the most
likely to exercise regularly (Health-
Focus, 2007).
Of all new functional food con-
cepts, consumers are most interested
in new products that improve mental
performance (IFIC, 2007a). Over
one-third (35%) strongly believe that
foods can be used to improve mental
health. Half of those age 50–64 are
very concerned about lack of mental
sharpness vs 43% of the total popula-
tion.
Just over one-third of consumers
drink energy beverages for a mental
boost (Mintel, 2007g). Ginseng,
guarana, and taurine are among the
key ingredients. Candies, gums, and

Cool Soups put a new twist on vending and c-store meal or
snack options.
chocolates are gaining in popularity.
Improving cognitive ability in children
and teens is another fast-growing market.
Omega-3s, DHA, Choline, B vitamins,
minerals, and taurine are frequently used
ingredients. Baby food accounted for nearly
40% of all DHA-fortified food/bever-
age introductions in the U.S. (Dornblaser,
2007). Uncommon Loot’s Headshot Guarana
Energy Bar is targeted to teen gamers.
With half of adults suffering from sleep
problems several times a week—and 80% at
least once a month—the demand for sleep-
inducing foods and beverages is at an all-time
high. Dreamerz added Chocolate Pillows choco-
lates and an Herbal Fruit Flavored Drink Mix
containing melatonin and GABA to its sleep-
enhancing line.
Stress and calming are other new func-
tional market opportunities. The Republic
of Tea includes a new whole-leaf herb tea for
relieving stress in its Be Well Red Tea Collec-
tion.
10. New Venues
Without a doubt, the most important fac-
tor driving the healthy and functional foods
market mainstream has been the increased
accessibility of healthy products through
additional channels.
With today’s grab-and-go lifestyle and
rising gas prices, convenience stores have
become a powerhouse for sales of some
healthy products. For example, c-stores
distributed 80% of energy beverages sold
in the U.S. last year and 41% of single-
serve juices (Mintel, 2007g; Beverage
Marketing, 2007).
Moreover, major c-store marketers such
as 7-Eleven have instituted new programs
specifically designed to increase sales of
healthy products. Country Choices Organic
Oatmeal on the Run! bar is perfectly positioned
for early morning c-store traffic.
Beverages, bars, and on-the-go items such
as Go Appetit’s new drinkable Cool Soups and
Galaxy Granola’s Meteorbites snacks, fruit-
baked for natural sweetness, are perfectly
positioned for c-store and vending use. Lipton
Pureleaf Natural Iced Tea, AMP Overdrive Energy
Drink, Vault Red Blitz, Java Monster Energy, and
Miller Chill Lager Beer were the top 5 new bev-
erage best sellers in c-stores for the 30 weeks
ending 12/30/07 (IRI, 2008c).
Restaurants are another fast-emerging
venue for healthy and functional drinks.
Three-quarters (76%) of adults and three in
four teens are trying to eat healthier in res-
taurants (NRA, 2008b). Healthy alternatives
are the No. 1 2008 QSR trend among opera-
tors. One-quarter of those age 35–49 are
looking for healthier menus in restaurants,
and 18% of those age 50-64 are doing so.
Wraps/pitas/tortillas topped the list of
menu items that QSR operators reported
selling more of in 2007, with 64% reporting
increases, followed by entrée salads reported
by 59%, chicken sandwiches 59%, fruit
sides 47%, and vegetarian items 33% (NRA,
2008). One in five (18%) QSR operators
plan to add more healthy items in 2008
(NRA, 2008). French fry sales in QSR are
the lowest in 15 years (NRA, 2007b).
Three-quarters (77%) of QSR opera-
tors said their patrons ordered more energy
drinks in 2007—the No. 1 gainer in the
beverage category, followed by 74% more
espresso/specialty coffee, and 58% more
water (NRA, 2008b).
Vegetarian, vegan, low-carb, low-fat,
gluten-free, light, organic, trans fat-free,
natural, healthy, and low-calorie are the
top 10 health claims on menus (Mintel
Menu Insights, 2008). Vegetarian ingredi-
ent menu item claims were up 67% from
2005 to 2007.
Jack-in-the Box offers a new light menu
and symbol featuring its chicken pita. Taco
Bell’s Fresco menu keeps calories in mind
04.08 • www.ift.org 43 pg
 Functional Food Trends
and features a 170-calorie taco.
New York City has passed a law
requiring calorie labeling on menus.
Local is a stronger draw than
natural or organic on menus; 40%
say it is more important to buy local
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