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This fully updated report from Packaged Facts analyzes three key categories of fortified foods: foods, beverages, and baby foods & formula. The report analyzes the lifestyle and demographic trends affecting this market, projecting market size and growth by product category. The study also unveils the competitive strategies and new product launches of major players, examines the retail milieu, and profiles the consumer by product type and brand.
Market Parameters This report covers foods and beverages distinctly marketed as fortified with nutrients, and sold through supermarkets, other mass-market outlets, and health and natural food outlets. These products appear in a variety of processed food categories, and are characterized by the marketer's decision to add nutritional supplement ingredients to make the foods healthier for the consumer. Packaged Facts divides the fortified foods market into three broad categories: 1) foods, 2) beverages, and 3) baby foods and formula. Products Fortified by Law or Custom Not Included In order to limit discussion to the most dynamic section of the market, Packaged Facts excludes from its definition foods that are universally fortified by law or industry custom. Thus, table salt fortified with iodine is not included, because almost all brands of table salt are iodine-fortified, and iodine fortification is not a point of difference between brands. Likewise, whole milk fortified with vitamin D and low-fat milk fortified with vitamins A and D are the industry standards. Hence, these products are not included in the market definition of this report, although milk fortified with acidophilus or other ingredients such as vitamin E is included. Sports Nutrition, Meal Replacements, Herbal Teas Not Included A number of products on the fringes of the fortified foods market are not included in the sales figures in this report because they do not represent line extensions of comparable non-fortified food or beverage categories. Specifically, sports nutrition products such as the protein powders used by body-builders are not included. The same is true of meal-replacement drinks like Ultra Slim-Fast and Ensure, and diabetes-control products such as Ensure's Glucerna line. Energy bars are a special case. In general, Packaged Facts has chosen to include those brands that have made an impact on the mass market (such as PowerBar and Balance Bar) and which are marketed almost like snack bars, while excluding brands that are positioned primarily as sports nutrition products and marketed primarily through health foods stores, gyms, and sporting goods venues. In addition, isotonic sports drinks and herbal/medicinal teas are excluded from this report unless they are also fortified with standard vitamins or minerals. Products such as vitamin C-fortified cough drops and calcium chews are likewise excluded because they are marketed as over-the-counter medications or supplements, not foods. Chewing gum is not included in this report because it is not meant to be swallowed. Report Methodology The information contained in this report was obtained from both primary and secondary research. Primary research entailed consultation with industry sources and on-site examination of the retail milieu. Secondary research entailed data-gathering from relevant trade, business, and government sources. Sources include InfoScan scanner data from Information Resources, Inc. (IRI), Chicago, Illinois; estimates published in the trade press, in such journals as Supermarket Business; annual reports, 10Ks, and other financial releases from public companies; sales estimates of private companies by Hoover's, Inc. and other Internet sources; marketer profiles in trade and consumer publications; company press releases and marketing literature; published data on advertising expenditures; national consumer panel data; and previous Packaged Facts reports on the fortified foods market. The market sales estimates presented here have been extrapolated by Packaged Facts using InfoScan data obtained from IRI. These data track sales of various food categories in supermarkets (defined as grocery stores with annual sales of at least $2 million), mass merchandisers, and chain drugstores, but do not break out sales by fortified vs. unfortified line extensions. Therefore, Packaged Facts has: 1) analyzed each pertinent food segment (e.g., ready-to-eat cold cereal, snack bars, yogurt, bottled juices, refrigerated juices, aseptic juices, infant formula, and so forth) and projected fortified sales for each segment by calculating the estimated percentage of foods in that segment that are fortified, by tallying sales of individual brands, or by both of these means; and 2) further projected these estimates to include other retail channels. Figures provided on national consumer advertising expenditures are based on data (copyright 2000) from CMR, a Taylor Nelson Sofres company. The analysis of consumer demographics primarily derives from the Simmons Market Research Bureau (New York, NY) spring 2001 consumer survey, based on 25,030 respondents. Press Release Fortified Foods Market More Than Tripled Between 1997 and 2001 to $18 Billion New York, April 12/PRNewswire - Foods and beverages that are distinctly marketed as fortified with nutrients have enjoyed tremendous popularity in recent years. According to The U.S. Market for Fortified Foods: Expanding the Boundaries, a newly published Packaged Facts report available at MarketResearch.com, sales of the total fortified foods market reached almost $18 billion in 2001, tripling the sales figure posted in 1997. Projections for coming years demonstrate continued optimism for the future of the market, with retail sales forecast to reach $28.6 billion by 2006. Success within the fortified foods market stems from the industry’s extremely high rate of product development and the fact that consumers have proven quick to purchase enhanced foods as they are introduced to the market. Sensing a lucrative opportunity, major food and beverage players have focused their attention on the fortified foods industry in recent years, purchasing the successful smaller players that have made this niche market a powerful force within a large and competitive industry. Complex mergers and acquisitions along with rapid product development have combined to make fortified foods a confusing, though profitable, marketplace. “Small entrepreneurial marketers in the food and beverage industry quickly become candidates for acquisition,” said Meg Hargreaves, VP of Research Publishing for MarketResearch.com. “The absorption of many minor fortified food producers by large companies, as well as the changing regulatory environment, have made this lucrative market rather difficult for some companies to navigate.” The U.S. Market for Fortified Foods provides detailed information about consumer demographics, as well as distribution and marketing trends, product development, and emerging promotional campaigns. The report also includes historical sales data, as well as market projections through the year 2005.
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