• A Note about IRI Data
• Functional Foods: The Early Trends
• The 1970s: The Search For Weight-Loss Products
• The 1980s and the 1990s: The 'New Age' Nutrients
• 2000 and Beyond: The Dawn of 'Nutraceuticals'
• Functional Beverages
• Sports Drinks
• Energy Drinks

• Market Is Difficult to Monitor
• 2002 Retail Sales Estimated Close to $22.8 Billion
• Table 3-1: U.S. Retail Sales of Functional Foods and Beverages, 1998-2002
• Figure 3-1: U.S. Retail Sales of Functional Foods and Beverages, 1998-2002

• Share by Product Category
• Table 3-2: Share of U.S. Retail Sales of Functional Foods/Beverages by Product Category: By Dollar and Percent Share, 2002
• Figure 3-1: Share of U.S. Retail Sales of Functional Foods by Product Category: Percent Share, 2002

• Nutritional Health Bars
• Figure 3-2: Share of U.S. Retail Sales of Food Bars by Category
• Table 3-3: U.S. Retail Sales of Leading Nutritional/Health Value Food Bars Functional Waters
• Table 3-4: U.S. Retail Sales of Leading Functional Waters, 2002 Energy Drinks
• Table 3-5: U.S. Retail Sales of Leading Energy Drinks, 2002
• Factors Affecting Market Growth
• All Age Groups Use Functional Foods
• Seniors and Baby Boomers Focus on Fortified Functional Foods
• Table 3-6: Projected Percentage Distribution of U.S. Population by Age Bracket, 2000-2010
• Kids Another Driving Force
• Growing Ethnic Population Shaping Sales
• Table 3-7: Population Projections for Selected U.S. Racial Populations, 2000-2020
• Looking Toward Self-Care and Alternative Health Solutions
• Private Labels Force Increased Fortification
• R&D Budgets Increase as Teams get Leaner
• New Technologies lead to Competitive Advantage and Drive Growth

• Overall Market to Reach $6.65 Billion by 2007
• Table 3-8: Projected U.S. Retail Sales of Functional Foods and Beverages, 2002-2007
• Figure 3-3: Projected U.S. Retail Sales of Functional Foods and Beverages, 2002-2007

Chapter 4: Competitive Situation

• The Food and Drink Companies
• The Pharmaceutical Companies
• Major Companies Have the Edge
• Minor Marketers and Their Importance
• Most Compete in Only a Few Product Areas

• Pharmaceutical Companies Turn More Towards Functional Foods
• Four Strategies for Marketers
• Developing New Products Internally
• Repositioning Current Products
• Joint Ventures provide Synergies of Scope and Scale
• Acquiring Established Companies and Brands
• Recent Divestitures, Mergers, and Acquisitions
• Table 4-1:The U.S. Functional Foods and Beverages Market: Leading Marketers and Their Top Brands, 2002-2003

• The Cereal Marketers
• Other Functional Foods
• Dairy Products
• Functional Bakery Products to Boost Growth
• Nutritional Candy Show Definite Growth
• Nutrition Bars Grow Amidst Concerns of Obesity

• Juice and Juice Drink Marketers
• The Traditional Marketers
• New Age Beverage Players
• Natural Beverage Marketers
• Sports Nutrition Rev up Sales
• Energy Drinks Get a Boost
• Sports and Energy Drinks Marketers Include Soy in Their Portfolio
• Functional Waters

• Marketers for Infant Formulae and Baby foods
• GRAS Status for Docosahexaenoic Acid (DHA)

Chapter 5: New Products and New Product Trends

• New Products Continue to Hit the Market
• Trends in Enrichment/Fortification
• Soy Gaining the Spotlight
• Probiotics and Prebiotics at the Cutting Edge
• Table 4-2: The U.S. Functional Foods Market: Selected New Product Introductions, January 2002- May 2003

• Marketers Target Women to Increase Revenues
• Energy Bars Flavor of the Season
• Nutritious Candy Bars
• Dairy Products

• More Enriched Milk Brands Hit the Market
• Energy Drinks Sees Many New Entrants
• Refreshing Healthful Juices
• Sizzling Fortified Water
• Competition Brews in Sports Drinks
• Soy-based Beverages Propel Growth
• SoBe Targets Kids with Lizardade Launch
• Blurring Line between Energy and Sports Drinks
• Extensions Fuel Growth
• New “New Age” Beverages
• Cadbury Enters Meal Replacement Category
• Packaging Innovation in New Products

• New Products Continue to Proliferate
• Mead Johnson Takes Advantage of GRAS Ruling

Chapter 6: The Consumer

• Nutrition Important in Food Choices
• More Than Half of Population Uses Functional Foods
• Figure 6-1: Usage of Functional Foods, 2000-2002
• American Taste Buds
• Linking Diet and Health
• Functional Food Users Perceived Deficiencies
• Table 6-1: Consumer Perceptions of Diet Deficiencies: General Population vs. Functional Foods Users
• Long-Term Usage Characteristic
• Figure 6-2: Length of Functional Food Usage
• Middle Age Skew to Functional Food Users
• Figure 6-3: Functional Food Users by Age Group
• Functional Food Users More Aware of “Proactive”
• Table 6-2: Consumer Awareness of “Proactive” Terms, General Population vs. Functional Food Users
• Overall Health Tops Reason for Eating Functional Foods
• Figure 6-4: Reasons for Eating Functional Foods
• Yet Lack of Benefits Discourages Use
• Figure 6-5: Top Reasons Why People Stop Using Functional Foods

• “I Don’t Have Time to Eat a Healthy Meal”
• Table 6-3: Demographic Profile:
• Agreement with the statement: “I don’t have the time to prepare/eat a Healthy Meal”
• Table 6-4: Penetration of Functional Foods and Beverages
• Consumer Focus: Nutritional Snacks
• Table 6-5: Demographic Characteristics Favoring the Most Often Use of Food Bars: Chewy Granola vs. Fruit Bar, Fall 2002
• Table 6-6: Demographic Characteristics Favoring the Most Often Use of Food Bars: Cereal Bars vs. Granola, Fall 2002
• Table 6-7: Demographic Characteristics Favoring the Most Often Use of Kellogg’s Nutri-Grain Bars, Fall 2002
• Table 6-8: Demographic Characteristics Favoring the Most Often Use of Food Bars: Quaker Chewy Granola vs. Quaker Fruit and Oatmeal Bars, Fall 2002
• Consumer Focus: Energy Bars
• Table 6-9: Demographic Characteristics Favoring the Most Often Use of Energy Bars: Balance Bars, Fall 2002
• Table 6-10: Demographic Characteristics Favoring the Most Often Use of Energy Bars: Carb Solutions, Fall 2002
• Table 6-11: Demographic Characteristics Favoring the Most Often Use of Energy Bars: Carb Solutions, Fall 2002
• Table 6-12: Demographic Characteristics Favoring the Most Often Use of Energy Bars: PowerBar, Fall 2002
• Consumer Focus: Functional Beverages
• Table 6-13: Demographic Characteristics Favoring the Most Often Use of Liquid Breakfast / Nutritional Supplements: Slim Fast vs. Ultra Slim Fast, Fall 2002
• Table 6-14: Demographic Characteristics Favoring the Most Often Use of Liquid Breakfast/Nutritional Supplements: Metabolife vs. Carb Solutions, Fall 2002
• Consumer Focus: Energy Drinks
• Table 6-15: Demographic Characteristics Favoring the Most Often Use of Liquid Breakfast/Nutritional Supplements: Carnation Instant Breakfast vs. Carnation Slender, Fall 2002
• Table 6-16: Demographic Characteristics Favoring the Most Often Use of Energy Drinks: Red Bull vs. Adrenaline Rush, Fall 2002

• Categories for Comparison
• Attitudes Regarding Health
• Table 6-17: Consumer Attitudes About Health: General Population vs. Energy/Diet Snack Bar Eaters and Nutritional Snack Eaters: Overall Adults vs. Adults Aged 25-34 Years and 45-64 Years
• Opinions Regarding Health
• Table 6-18: Consumer Opinions About Health: Overall Adults vs. Adults Aged 25-34 Years and 45-64 Years, Fall 2002

Chapter 7:Trends and Opportunities

• General Trends
• Consolidation Gains Momentum
• The Health Movement: Witnessing the Protein Paradigm

• Growing Market for Vegetarian Foods
• Flavors to Suit Different Demographic Profiles

• The Wellness Trend: The Future of Functional Beverages
• Disease-Specific Functional Foods and Beverages
• Pediatricians Favor Soy Infant Formulas
• New Delivery Systems and Newer Ingredients