Europe might be the biggest market for functional foods in value terms, worth over $90bn and commanding a 39% share of global value sales, but that doesn't mean the market is saturated. The continent has seen sales of functional foods grow by 40% in the last five years, which puts it well ahead of the average and there's still a huge appetitie for innovation.
More than 11,000 healthy products were launched in Western Europe in 2006, compared with just under 6,000 in North America and 5,000 in Asia, showing that Europe is streets ahead when it comes to new product development (NPD). Some 4,000 of these launches were in the UK, Europe's second largest market for healthy and functional foods, valued at $17bn; and nearly 2,000 were launched on to the $19bn German market; over 1,000 new products were introduced in France and Italy, with Spain and the Netherlands bringing up a sizeable rear (Innova.com and Euromonitor).
Positive positioning
A quarter of new healthy or functional products in 2006 carried a 'low-fat' claim, 9% a 'sugar-free' claim and 8% a 'low-calorie' claim - all well-recognised by consumers interested in cutting their intake of 'bad foods'. But they are also ready to accept that food can be used to boost health.
Products carrying so-called 'positive' health claims might only represent a small proportion of the overall healthy foods market, but their share of the functional stomach is growing fast especially in the area of gut health. Last year, 7% of new products carried a 'gut health' claim, the vast majority based on the presence of 'friendly' probiotic bacteria. Indeed, probiotics have inspired a raft of innovations across Europe, with the dairy category, pioneered by such players as Danone, Yakult Honsha and Valio, dominating activity.
Prebiotics: rising stars?
While probiotics have been grabbing the headlines, interest in their lesser known relative, the prebiotic, has been building. Prebiotic ingredients, such as Orafti's Beneo inulin and oligofructose, that boost the growth of beneficial bacteria in the gut, are currently worth €87M in the European marketplace and forecast to reach €179.7M by 2010, according to Frost & Sullivan.
Just how sharply the market for prebiotic products has grown in the last five years can be demonstrated by the exponential increase in the number of new product launches. In 2002, just two prebiotic product launches were tracked across the whole of Europe. By 2004, that had swelled to 69 and last year it reached 116.
The UK is by far the largest European market for prebiotic products, commanding a 29% share, while Germany is also a sizeable launch-pad, accounting for 21% of all new products. Other countries who have small but burgeoning prebiotic markets include Italy (8%), Spain (8%), the Netherlands (5%), Ireland (4%), Belgium (4%), France (4%) and Switzerland (4%).
Unlike probiotics, which are almost exclusively found in dairy products, prebiotics are in everything from baked goods to baby food and soft drinks. This is because whereas probiotics are vulnerable to cooking and storage, limiting their application beyond dairy, prebiotics are resistant to processing.
To date, 27% of new prebiotic product introductions have been in the baked goods and cereals arena. Besides their gut health properties, part of the appeal of prebiotic ingredients like Beneo inulin and oligofructose is that they are soluble dietary fibres and natural sugar replacers. This means they can be used to lower sugar and increase the fibre content of foods without having a negative impact on taste.
With a 25% share of the market, baby food is the second largest application for prebiotics. Children under the age of five are one of the groups most susceptible to gastrointestinal infections, so infant formula manufacturers looking to replicate the qualities of breast milk are turning to prebiotics to boost gut health.
consumer education
In dairy, which accounts for 15% of prebiotic launches, probiotics have paved the way by educating consumers about gut health. Prebiotics can fulfil a number of functions in dairy products, acting as both prebiotic and fat replacer with the same mouthfeel as fat.
Some manufacturers are opting to develop 'synbiotic' products - a concept based on findings that the survivability and viability of probiotics is enhanced when they are combined with prebiotics. Beneo inulin and oligofructose have been the subject of much of this research. A study conducted at Michigan State University, US, for example, showed that Beneo P95 had a beneficial effect on the viability of bifidobacteria. Orafti researchers have also found that both BeneoP95 and BeneoSynergy1 (oligofructose-enriched inulin) protect probiotic bacteria during intestinal transit, demonstrating the vitality of synbiotic products.
There are also instances of manufacturers using the 'satiety' effect of prebiotic ingredients to market yoghurts as 'making you feel fuller for longer'. There is mounting scientific evidence to suggest that Beneo oligofructose can boost the feeling of satiety and beneficially affect sugar and lipid metabolism. In addition, a growing body of research indicates that inulin and oligofructose influence levels of food intake by modulating the blood concentrations of gut hormones involved in appetite regulation.
BeneoSynergy1 has also been proven to boost bone health, a benefit that clearly sits comfortably with dairy. A study in adolescents carried out at the Children's Nutrition Research Center in Houston, Texas, found improvements in calcium absorption, bone mineral content and bone mineral density following one year of supplementation with BeneoSynergy1. The difference between intervention and control groups was an extra 31mg of calcium per day being assimilated into the bones - or 20% more.
In products at the indulgent end of the category, such as ice cream and dairy desserts, Beneo ingredients can fulfill a dual function, acting as both prebiotic and fat replacer, bridging the gap between health and enjoyment by reducing the fat and sugar content, with no compromise on mouthfeel, roundness or creaminess.
Science to succeed?
One of the forces that has sealed the success of the probiotic market has been the vast resources that multi-national food firms have ploughed into consumer education while suppliers of probiotic strains have invested heavily in scientific research to back up claims. If prebiotic products are to enjoy the same success, it is essential that they, too, are backed by sound science.
The new EU Nutrition and Health Claims Regulation, which came into force on July 1, further reinforces the need for prebiotic products to be supported by science. The regulation seeks to prohibit vague or 'soft' health claims, for example, promoting 'general well-being', while setting more rigorous standards for specific or 'hard' health claims. The law will create challenges for ingredient suppliers but could also open up opportunities for those who can substantiate their claims with sound scientific research.
Thanks to Orafti's research-driven approach, the new EU legislation will not dramatically impact upon the way in which it operates. It has already undertaken in excess of 300 studies, including about 100 human intervention studies, on chicory inulin, oligofructose and oligofructose-enriched inulin. Under the new regulation, a list of pre-approved claims will be established (article 13) and Orafti will submit proposals for claims including digestive health and improved regularity, the stimulation of a healthy microflora, and increased calcium absorption, bone mineral density and inner protection. As more research data becomes available, other submissions will be prepared.
Food for the future?
As science reveals more about how food affects our health, people are increasingly taking matters into their own hands and 'self-medicating' with products they believe will help certain physiological functions. With such broad application potential, positive processing properties and substantiated gut health evidence, prebiotics are very well placed.
Tim Van der Schraelen is marketing and communications manager at Orafti. Telephone: +32 16 801 301 or email: tim.van.der.schraelen@orafti.com