Functional food challenges
 
THE first challenge related to functional foods is to define them.

March 2006

Dr Patch said definitions were important because they provided a framework for identifying opportunities and establishing an R&D strategy for the functional food sector.

The NCEFF defines functional foods as foods that are promoted on a health platform that is “based on scientific evidence”.

The significance of this definition is that it made functional food manufacturers responsible for scientifically and clinically proving the efficacy of their products.

However, there are many so-called ‘functional foods’ on the market that do not meet this basic definition, which poses a threat to the long-term development of the sector, as consumers are first confused, and then sceptical, about the various claims made for new and existing products.



Market size

The size of the functional foods market is hard to estimate.

Dr Patch tabled a number of estimates from commercial research firms that placed the global market in 2002 between US$36 billion and US$50b, with the US market alone being worth around US$18b and growing at around 4-5% a year.

The market in Europe and Japan was estimated at around US$15b and US$12b a year, respectively.

In Australia, estimates of the value of the market have been around A$1b for functional foods, A$8 million for organics, A$9m for supplements and A$3.5m for bio-actives.



Food trends

Dr Patch said the NCEFF carried out scoping work with Julian Mellentin from the Centre for Food and Health Studies in London that identified a number of eating trends influencing the development of functional foods.

The first trend, well underway, was the increased role of food for good health.

Dr Patch said the natural extension of this trend was that all food would be ‘functional’ in the future.

“Nutritional supplements will increasingly be delivered in the form of new and conventional food and the combination of bio-activity of various constituents would be tailored for specific results,” he said.

Indeed, Dr Patch said the concept of ‘personalised nutrition’ would grow; functional foods developed to match the nutritional requirements of an individual or group.

Overlaying these specific nutrition developments were a number of general trends expected to affect overall eating habits.

These included the growing popularity of diets incorporating low-GI foods, fusion cooking with increasing influence from Asia and concerns about increasing childhood obesity.



Drivers of growth

Dr Patch said there were a number of factors driving the growth of functional foods.

For example, in the rapidly developing and health-conscious Chinese market, the percentage of ‘middle class’ consumers who are prime targets for the functional foods message is expected to grow from 19% in 2003 to 40% in 2030.

Also in China, as in other parts of Asia, as populations become more urbanised, their diets are becoming more westernised, and they are eating less rice and more dairy products and processed products.

Dr Patch said this opened up opportunities for the dairy industry, as dairy products were perceived as healthy products and were a great base on which to build the concept of extra functional properties.

In the overall market, ageing populations, a trend towards smaller households, and growing awareness of the role of nutrition in the treatment of diabetes, obesity and mental health will all act as drivers for functional food development and demand.



Health claims

Dr Patch said there were four major claims that manufacturers could use to promote their functional foods:

• Nutrient content claims – ‘X’ is low in saturated fat or ‘X’ contains Lactobacillus plantarum 299v

• Structure function claims – ‘X’ contains calcium, which is important for healthy teeth and bones

• Health claims – diets low in saturated fat and cholesterol may reduce the risk of heart disease. X is low in saturated fat

• Therapeutic claims – this product contains ‘X’, which prevents coronary heart disease

However, for manufacturers with global marketing aspirations, it must be noted different countries and regions interpret health claims in their own way.

Dr Patch emphasised the importance of manufacturers keeping up-to-date with legislation changes and advised them to make their views known to regulatory bodies when the opportunity arose.

In future, it may not be necessary to communicate the benefits of functional foods by direct health claims.

Nutrient content claims and public relations could be just as effective.

Wherever the regulation of health claims issue goes in the future, Dr Patch advised that ‘substantiation’ requirements would inevitably become more rigorous.

He said manufacturers would be wise to adopt a long-term approach to commercialising their scientific breakthroughs in the area of functional foods.

This long-term approach would involve a number of stages:

• Market preparation – raising consumer awareness, determining relevance and establishing credibility

• Raising general awareness – using labels (nutrient claims), free testing (cholesterol, bone scans, glucose), sponsorship (trade booths, etc.), and scientific presentations and conferences such as those organised by the Dairy Industry Association of Australian (DIAA)

• Communicating benefits – demonstrating efficacy and safety to health professionals and the media, and publishing studies

When developing or promoting products that responded to major health issues, such as obesity, Dr Patch said it would also be useful to work with policy and health authorities.

Dr Patch outlined these challenges at last year’s DIAA National Conference in Adelaide.

*Chris was the previous editor of Australian Dairy Foods - the official journal of the DIAA.

This article - first published in Australian Dairy Foods , February 2006 issue was re- published with the permission of Australian Dairy Foods editor Irina Fainberg.
1st March 2006