The New U.S. "Phood" Market: Functional, Fortified, and Inherently Healthy Foods and Beverages

Jan 1, 2005
175 Pages - Pub ID: LA1020433
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With health and wellness a top criterion driving consumer food choices, this first-edition Packaged Facts report offers a unique perspective on a hot topic, examining pharmaceutical-benefit foods (i.e., “phoods”) and beverages including traditional (e.g., regular oatmeal, whole-grain breads), fortified (e.g., orange juice with calcium), and “designer” (e.g., protein bars, smart spreads) products. The combination of more permissible FDA-approved health claims on food packages, media attention to the link between diet and health, and new product/ingredient/technological development is spurring rapid growth in this market, which encompasses products fortified with glucosamine and/or calcium to promote joint and bone health, those containing omega-3 fatty acids and/or plant sterol/stanol esters for heart health and other benefits, soy protein-enhanced foods, and “vitamin waters” and other functional beverages—among many others. Also covered are products enhanced with cutting-edge ingredients and nutrients, such as lutein for eye health, glucosamine for joint health, or probiotics/prebiotics to strengthen the immune system; as well as certain “inherently healthy” products, such as whole-grain/functional cereals and wellness teas.

The New U.S. "Phood" Market--Functional, Fortified, and Inherently Healthy Foods and Beverages, examines the factors affecting the growth of this market, including consumer trends, ingredient trends, the competitive environment, marketing and advertising trends, new product introductions, and a regulatory environment that is fostering wider use and awareness of pharmaceutical-benefit foods. It also profiles key products including Benecol and Take Control spreads, Kellogg’s Smart Start and Kashi Heart cereals, Stonyfield Farm yogurts, Groupe Danone’s DanActive prebiotic drink, Tropicana Essentials orange juice, Celestial Seasonings Wellness Teas, and others. In conclusion, it identifies cutting-edge trends, opportunities, and ideas market participants can use to their advantage in the future.

Report Methodology
The information in The New U.S. "Phood" Market--Functional, Fortified, and Inherently Healthy Foods and Beverages is based on both primary and secondary research. Primary research involved on-site examination of the retail milieu, interviews with marketing, public relations and industry analysts within the beverage market and consultants to the industry. Secondary research entailed data-gathering from relevant trade, business, and government sources, including company literature. Packaged Facts has derived mass merchandiser sales figures from Information Resources, Inc. (IRI) InfoScan sales-tracking data. Figures provided on national consumer advertising expenditures are based primarily on data compiled by CMR/TNS Media Intelligence U.S., the leading provider of strategic advertising and marketing communications intelligence. The analysis of consumer demographics derives from Simmons Market Research Bureau survey data for spring 2004. New product information is gathered via literature research, personal interviews and data compiled by ProductScan, a service of Marketing Intelligence Service Ltd.

The report looks at every segment of the functional and fortified food/beverage market, examining trends for growth and projecting sales of products through 2009. It analyzes consumer demographics and their current and projected impact on sales of pharmaceutical foods and beverages. It provides up-to-date competitive profiles of marketers of functional and fortified products and discusses the influence of demographic trends as a driver of retail trends. The report also spotlights new products and current distribution trends, and offers readers trends and marketing opportunities within the food/beverage industry.

What You’ll Get in this Report
The New U.S. "Phood" Market--Functional, Fortified, and Inherently Healthy Foods and Beverages makes important predictions and recommendations regarding the future of this market, and pinpoints ways current and prospective marketers can capitalize on current trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that The New U.S. "Phood" Market--Functional, Fortified, and Inherently Healthy Foods and Beverages offers. The report addresses the following segments:

  • The Market (including market size and composition, and projected market growth)
  • The Marketers (including discussions of specific marketer brand and market shares)
  • Competitive Profiles (of the mainstream marketers, specialists and up-and-coming niche players, and analyses of the products they market)
  • Distribution Strategies
  • The Consumer (who’s buying what, and where)
  • The Products
  • Trends and Opportunities

Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

Scroll down to see a more detailed outline of the contents of this report.

How You Will Benefit from this Report
If your company is already competing in the functional/fortified food and beverage market, or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for pharmaceutical foods and beverages, as well as projected sales and trends through 2008. Contributing to that understanding will be a complete analysis of sales data from IRI and other published and trade sources, a detailed discussion of the consumer for functional/fortified foods and beverages based on Simmons data.

This report will help:

  • Marketing Managers identify market opportunities and develop targeted promotion plans for the functional and fortified foods/beverages.
  • Research and development professionals stay on top of competitor initiatives and explore demand for pharmaceutical foods.
  • Advertising agencies working with clients in the food, beverage and pharmaceutical industries understand the product buyer to develop messages and images that compel consumers to purchase these products.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.

Chapter 1: Executive Summary
  • Scope and Methodology
  • Introduction
    • The New Intersection of Foods and Pharmaceuticals
    • Two Classifications: Phoods and Bepherages
    • Exclusions
    • Report Methodology

  • Overall Market Trends
    • The Hot Button: Consumer Health Concerns
    • Linking Diet and Health
    • Here Comes “Phood”
    • Sales to Near $15.1 Billion by 2009
    • Figure 1-1: Projected U.S. Retail Sales of Phoods: 2004-2009 (in billions of dollars)
    • Superior Growth for Most Phood Categories

  • Phoods
    • The Competitors
    • Different Marketing Thrusts for Food vs. Pharmaceutical CompaniesSome Phoods Are Licensed
    • Four Competitive Paths
    • Using Naturally Health-Beneficial Ingredients
    • Extending Existing Brands with Fortified Products
    • The Big Get Bigger
    • Not All New Phoods Make the Grade
    • Divide (Especially by Gender) and Conquer
    • National Consumer Advertising Expenditures
    • Product Usage Rates
    • Figure 1-2: Household Penetration Rates for Selected Phood Classifications, 2004 (U.S. households)

  • Bepherages
    • The Competitors
    • Mergers & Acquisitions
    • New Brands and Companies Have Good Success Rate
    • Advertising Positioning
    • Product Usage Rates

  • Looking Ahead: Trends and Opportunities
    • Nutrient Trends: What’s Next
    • Target Marketing: Who’s Next

Chapter 2: Overall Market Trends

  • Introduction
    • The New Intersection of Foods and Pharmaceuticals
    • Two Classifications: Phoods and Bepherages
    • Exclusions
    • Functional Foods and Nutraceuticals
    • Health Claims
    • Types of Health Claims
    • Health Claims That Meet Significant Scientific Agreement (SSI)
    • Qualified Health Claims
    • Structure/Function Claims
    • Nutrient Content Claims
    • Medical Organization Logos
    • Key Nutrients and Ingredients
    • Vitamins
    • Minerals
    • Dietary Fiber
    • Probiotics and Prebiotics
    • Soy Protein and Soy Isoflavones
    • Omega-3 Fatty Acids
    • Herbal and Botanical Ingredients
    • Table 2-1: U.S. Phood Market: Key Nutrients and Ingredients, 2004

  • Market Drivers
    • The Hot Button: Consumer Health Concerns
    • Linking Diet and Health
    • Here Comes “Phood”
    • Competitive Advantages for Marketers
    • The Role of Research & Development
    • Target Marketing: Boomers and Beyond
    • The Role of Convenience
    • The Health and Natural Foods Conundrum
    • Trends in Japan and Europe

  • Retail Sales and Market Share Trends
    • Methodology for Estimates
    • Total Phood Sales Estimated at $16.2 Billion
    • Table 2-2: U.S. Phood Market: IRI-Tracked Sales of Phoods by Product Category, 2003 vs. 2004 (in millions of dollars)
    • Figure 2-1: Share of U.S. Phood Sales by Retail Outlet Type, 2004 (percent)
    • Phood Classification Bigger, But Bepherage Growth Faster
    • Figure 2-2: U.S. Phood Sales by Classification: Phoods vs. Bepherages, 2004 (in millions)
    • Superior Growth for Most Phood Categories
    • Slow Going in Cereal, Dried Fruit
    • Other Heart-Healthy Phoods, Olive Oil on the Ups
    • Most Bepherages Are Big Winners
    • Dairy-Related Categories Growing at Double-Digit Rates
    • Nutritional Bars and Powders Post Healthy Growth

  • Market Projection
    • Sales to Near $15.1 Billion by 2009
    • Figure 2-3: Projected U.S. Retail Sales of Phoods: 2004-2009 (in billions of dollars)
    • Table 2-3: U.S. Phood Market: IRI-Tracked Sales and Share of RTE (Cold) Cereal, 2003 vs. 2004 (in millions of dollars)
    • Table 2-4: U.S. Phood Market: IRI-Tracked Sales and Share of Hot Cereal/Oatmeal, 2003 vs. 2004 (in millions of dollars)
    • Table 2-5: U.S. Phood Market: IRI-Tracked Sales and Share of Dried Fruit, 2003 vs. 2004 (in millions of dollars)
    • Table 2-6: U.S. Phood Market: IRI-Tracked Sales and Share of Fresh Bread, 2003 vs. 2004 (in millions of dollars)
    • Table 2-7: U.S. Phood Market: IRI-Tracked Sales and Share of Cooking/Baking Nuts, 2003 vs. 2004 (in millions of dollars)
    • Table 2-8: U.S. Phood Market: IRI-Tracked Sales and Share of Olive Oil, 2003 vs. 2004 (in millions of dollars)
    • Table 2-9: U.S. Phood Market: IRI-Tracked Sales and Share of Bottled Water, 2003 vs. 2004 (in millions of dollars)
    • Table 2-10: U.S. Phood Market: IRI-Tracked Sales and Share of Loose/Bagged Tea, 2003 vs. 2004 (in millions of dollars)
    • Table 2-11: U.S. Phood Market: IRI-Tracked Sales and Share of Refrigerated Orange Juice, 2003 vs. 2004 (in millions of dollars)
    • Table 2-12: U.S. Phood Market: IRI-Tracked Sales and Share of Shelf-Stable Bottled Juice Drink, Blend, or Smoothie, 2003 vs. 2004 (in millions of dollars)
    • Table 2-13: U.S. Phood Market: IRI-Tracked Sales and Share of Refrigerated Soymilk, Kefir, and Milk Substitutes, 2003 vs. 2004 (in millions of dollars)
    • Table 2-14: U.S. Phood Market: IRI-Tracked Sales and Share of Refrigerated Yogurt and Yogurt Drinks, 2003 vs. 2004 (in millions of dollars)
    • Table 2-15: U.S. Phood Market: IRI-Tracked Sales and Share of Fresh Milk, 2003 vs. 2004 (in millions of dollars)
    • Table 2-16: U.S. Phood Market: IRI-Tracked Sales and Share of Fresh Eggs, 2003 vs. 2004 (in millions of dollars)
    • Table 2-17: U.S. Phood Market: IRI-Tracked Sales and Share of Margarines/Spreads/Butter Blends, 2003 vs. 2004 (in millions of dollars)
    • Table 2-18: U.S. Phood Market: IRI-Tracked Sales and Share of Nutritional Liquid/Powder, 2003 vs. 2004 (in millions of dollars)
    • Table 2-19: U.S. Phood Market: IRI-Tracked Sales and Share of Nutritional/Intrinsic Health Value Bars, 2003 vs. 2004 (in millions of dollars)

Chapter 3: Phoods

  • Marketer Overview
    • The Competitors
    • Different Marketing Thrusts for Food vs. Pharmaceutical Companies
    • Some Phoods Are Licensed
    • Table 3-1: The U.S. Phood Market: Selected Marketers and Products, 2004

  • Competitive Trends
    • Four Competitive Paths
    • Using Naturally Health-Beneficial Ingredients
    • Extending Existing Brands with Fortified Products
    • The Big Get Bigger
    • Not All New Phoods Make the Grade
    • Divide (Especially by Gender) and Conquer
    • Going Whole Grain
    • Health Nuts and Other Inherently Healthy Phoods
    • Raising the Food Bar Bar
    • Targeting Aging Baby Boomers with Drinkable Meals

  • Advertising Trends
    • National Consumer Advertising Expenditures
    • Advertising Positioning

  • New Product Trends
    • The Alpha and Omega
    • Another Source of Omega-3s: Flax Seed
    • Soy Good Cereals
    • Other Cereals with Targeted Health Benefits
    • Probiotics, Prebiotics, and Symbiotics
    • Cholesterol-Reducing Cheese
    • Herbals and Phytochemicals
    • New to Phoods: Conjugated Linoleic Acid
    • Table 3-2: The U.S. Phood Market: Selected New Food Product Introductions, 2003-2004

  • Product Profiles
    • RTE Cereal: Kellogg’s Smart Start and Kashi Heart to Heart
    • Smart Start
    • Kashi Heart to Heart
    • The Ensemble Failure
    • Hot Cereal/Oatmeal: Quaker Oats’ Nutrition for Women
    • Quaker W.I.N. and Take Heart Lose Out
    • Yogurt/Yogurt Drinks
    • Stonyfield Farm’s Probiotics and Prebiotics
    • Danone’s Repositioned Actimel: DanActive
    • Margarines/Spreads/Butter Blends: McNeil’s Benecol and Unilever’s Take Control
    • Nutritional/Intrinsic Health Value Bars: Clif’s Luna Bar

  • Consumer Trends
    • Note on Simmons Survey Data and Tables
    • Product Usage Rates
    • Product Purchasing Patterns
    • Patterns by Age Bracket
    • The Gender Skew
    • Patterns by Race/Ethnicity
    • Geographic Distribution and Local Eating Habits Affect Regional Patterns
    • Patterns by Household Income
    • Patterns by Household Size
    • Key Demographic Characteristics Favoring Use of Selected Categories and Brands
    • Table 3-3
    • Household Penetration Rates for Selected Phood Classifications, 2004 (U.S. households)
    • Table 3-4a: Indices for Use of Selected Phood Classifications: By Adult Age Bracket, 2004 (U.S. households)
    • Table 3-4b: Indices for Use of Selected Phood Classifications: By Adult Age Bracket, 2004 (U.S. households)
    • Table 3-5: Indices for Use of Selected Phood Classifications: By Gender, 2004 (U.S. households)
    • Table 3-6: Indices for Use of Selected Phood Classifications: By Race/Ethnicity, 2004 (U.S. households)
    • Table 3-7a: Indices for Use of Selected Phood Classifications: By Region, 2004 (U.S. households)
    • Table 3-7b: Indices for Use of Selected Phood Classifications: By Region, 2004 (U.S. households)
    • Table 3-8a: Indices for Use of Selected Phood Classifications: By Household Income Bracket (in Thousands), 2004 (U.S. households)
    • Table 3-8b: Indices for Use of Selected Phood Classifications: By Household Income Bracket (in Thousands), 2004 (U.S. households)
    • Table 3-9: Indices for Use of Selected Phood Classifications: By Household Size, 2004 (U.S. households)
    • Table 3-10: Demographic Characteristics Favoring Use of Whole-Wheat, Multi-Grain, Oat, or Bran Bread, 2004 (U.S. households)
    • Table 3-11: Demographic Characteristics Favoring Use of Unsalted or Unroasted Nuts, 2004 (U.S. households)
    • Table 3-12: Demographic Characteristics Favoring Use of Wheat Crackers, 2004 (U.S. households)
    • Table 3-13: Demographic Characteristics Favoring Use of Cheerios (Regular, Honey Oat, Multi-Grain), 2004 (U.S. households)
    • Table 3-14: Demographic Characteristics Favoring Use of Old Fashioned Quaker Oats, 2004 (U.S. households)
    • Table 3-15: Demographic Characteristics Favoring Use of Total Cereal—Any Variety, 2004 (U.S. households)
    • Table 3-16: Demographic Characteristics Favoring Use of Special K—Any Variety, 2004 (U.S. households)
    • Table 3-17: Demographic Characteristics Favoring Use of Wheaties, 2004 (U.S. households)
    • Table 3-18: Demographic Characteristics Favoring Use of Smart Balance, Benecol, or Take Control Margarine, 2004 (U.S. households)
    • Table 3-19: Demographic Characteristics Favoring Use of Yoplait Drinkable Yogurt, 2004 (U.S. households)
    • Table 3-20: Demographic Characteristics Favoring Use of Dannon Drinkable Yogurt, 2004 (U.S. households)
    • Table 3-21: Demographic Characteristics Favoring Use of Stonyfield Farm Yogurt, 2004 (U.S. households)
    • Table 3-22: Demographic Characteristics Favoring Use of Ensure Nutritional Supplement, 2004 (U.S. households)
    • Table 3-23: Demographic Characteristics Favoring Use of Luna Bars, 2004 (U.S. households)
    • Table 3-24: Demographic Characteristics Favoring Use of Smart Start Cereal, 2004 (U.S. households)
    • Table 3-25: Demographic Characteristics Favoring Use of Boost Nutritional Supplement, 2004 (U.S. households)

Chapter 4: Bepherages

  • Marketer Overview
  • The Competitors
  • Table 4-1: The U.S. Phood Market: Selected Beverage Marketers and Products, 2004

  • Competitive Trends
    • Four Ways to Compete in “Bepherages”
    • Using Naturally Health-Beneficial Ingredients
    • Extending Existing Brands with Functional Beverages
    • Mergers & Acquisitions
    • New Brands and Companies Have Good Success Rate
    • Licensed Names a Point of Entry
    • Massive Effort to Woo the Carb- and Weight-Conscious
    • Divide and Conquer
    • Targeting Hispanics

  • Advertising Trends
    • National Consumer Advertising Expenditures
    • Advertising Positioning

  • New Product Trends
    • Weight Loss and Lower Carbs
    • Heart to Heart Talk
    • Boundary Blurs Between Fruit Juices and Functional Beverages
    • The Antioxidant Sweepstakes
    • Pomegranate Juices Flow
    • Quercetin Drink
    • Water, Water Everywhere
    • Energy Drinks
    • Soy Good
    • Juice-Based Smoothies Find Favor
    • Probiotics and Prebiotics
    • Functional Tea and Coffee
    • 7 Up Plus—The First of Its Kind Under a Major Brand
    • Glucosamine to Alleviate Joint Pain
    • Double-Calcium Milk to Reduce Risk of Osteoporosis
    • Going Nuts with Coconut Water
    • Table 4-2: The U.S. Phood Market: Selected New Beverage Product Introductions, 2003-2004

  • Product Profiles
    • Juice Drinks and Smoothies: Odwalla’s Functional Beverages
    • Soymilk: White Wave’s Silk
    • Milk: McNeil Nutritionals’ Lactaid
    • Bottled Water: PepsiCo’s Propel Fitness Water
    • Tea: Celestial Seasonings’ Wellness
    • Refrigerated Orange Juice
    • PepsiCo’s Tropicana Essentials
    • Coca-Cola’s Minute Maid

  • Consumer Trends
  • Demographics
    • Note on Simmons Survey Data and Tables
    • Product Usage Rates
    • Purchasing Patterns
    • Patterns by Age Bracket
    • The Gender Skew
    • Patterns by Race/Ethnicity
    • Geographic Distribution and Local Eating Habits Affect Choices
    • Patterns by Household Income
    • Patterns by Household Size
    • Key Demographics for Selected Categories and Brands
    • Table 4-3: Household Penetration Rates for Selected Bepherage Classifications, 2004 (U.S. households)
    • Table 4-4a: Indices for Use of Selected Bepherage Classifications: By Adult Age Bracket, 2004 (U.S. households)
    • Table 4-4b: Indices for Use of Selected Bepherage Classifications: By Adult Age Bracket, 2004 (U.S. households)
    • Table 4-5: Indices for Use of Selected Bepherage Classifications: By Gender, 2004 (U.S. households)
    • Table 4-6: Indices for Use of Selected Bepherage Classifications: By Race/Ethnicity, 2004 (U.S. households)
    • Table 4-7a: Indices for Use of Selected Bepherage Classifications: By Region, 2004 (U.S. households)
    • Table 4-7b: Indices for Use of Selected Bepherage Classifications: By Region, 2004 (U.S. households)
    • Table 4-8a: Indices for Use of Selected Bepherage Classifications: By Household Income Bracket (in Thousands), 2004 (U.S. households)
    • Table 4-8b: Indices for Use of Selected Bepherage Classifications: By Household Income Bracket (in Thousands), 2004 (U.S. households)
    • Table 4-9: Indices for Use of Selected Bepherage Classifications: By Household Size, 2004 (U.S. households)
    • Table 4-10: Demographic Characteristics Favoring Use of Cranberry Juice/Blend, 2004 (U.S. households)
    • Table 4-11: Demographic Characteristics Favoring Use of Ready-to-Drink Orange Juice with Calcium, 2004 (U.S. households)
    • Table 4-12: Demographic Characteristics Favoring Use of Soymilk, 2004 (U.S. households)
    • Table 4-13: Demographic Characteristics Favoring Use of Frozen Orange Juice with Calcium, 2004 (U.S. households)
    • Table 4-14: Demographic Characteristics Favoring Use of Ocean Spray Cranberry Juice/Blend, 2004 (U.S. households)
    • Table 4-15: Demographic Characteristics Favoring Use of Celestial Seasonings Herbal Tea, 2004 (U.S. households)
    • Table 4-16: Demographic Characteristics Favoring Use of Tropicana Ready-to-Drink Orange Juice with Calcium, 2004 (U.S. households)
    • Table 4-17: Demographic Characteristics Favoring Use of Minute Maid Ready-to-Drink Orange Juice with Calcium, 2004 (U.S. households)
    • Table 4-18: Demographic Characteristics Favoring Use of Red Bull Energy Drink, 2004 (U.S. households)
    • Table 4-19: Demographic Characteristics Favoring Use of Northland Cranberry Juice/Blend, 2004 (U.S. households)
    • Table 4-20: Demographic Characteristics Favoring Use of Minute Maid Frozen Orange Juice with Calcium, 2004 (U.S. households)
    • Table 4-21: Demographic Characteristics Favoring Use of SoBe Adrenaline Rush Energy Drink, 2004 (U.S. households)
    • Table 4-22: Demographic Characteristics Favoring Use of Arizona Extreme Energy Shot, 2004 (U.S. households)

    Chapter 5: Looking Ahead

    • Trends and Opportunities
    • Nutrient Trends: What’s Next
    • The New Food Guide Pyramid and Whole Grains
    • Omega-3 Fatty Acids
    • Expanding Applications for Plant Sterols
    • CoQ10: The Next Antioxidant?
    • CitriMax
    • Chondroitin and Glucosamine
    • Black Cohosh: A Natural Remedy for Menopause Symptoms
    • Foods That Lower Blood Pressure
    • Target Marketing: Who’s Next
    • Gender and Age Demographics
    • Condition-Specific Products
    • Targeted Racial and Ethnic Groups
    • Cosmeticeutical Foods and Beverage in Japan and Europe
    • Product Periscope: Phoods
    • New Dairy Foods
    • Prebiotic Cereals
    • Next Up, Functional Snacks?
    • Chocolate for Health
    • Product Periscope: Bepherages
    • Prototypes
    • More Soy Beverages on the Horizon
    • Will Coffee Be the Next “Health Drink”?
    • Breaking News
    • Apples
    • Beef Fat
    • Blueberries
    • Chocolate
    • Cranberries
    • Cruciferous Vegetables
    • Eggs
    • Fiber
    • Gazpacho
    • Grapes/Grape Juice
    • Milk Protein
    • Olive Oil
    • Plums
    • Tea
    • Tomatoes
    • Walnuts

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