IndustryARC
Global Functional Food and Nutraceuticals Market (2013 – 2018)
By Types (Whole Food, Fortified Food, Dietary Supplements); Products (Energy Drinks, Healthy Snacks, Fortified Dairy Products, Enhanced Cereals & Grains); Components (Vitamins, Minerals, Fibers, Antioxidants, Herbs)
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TABLE OF CONTENTS 1. Functional Food and Nutraceuticals - Market Overview 2. Executive Summary 3. Functional Food and Nutraceuticals - Market Landscape 3.1. Market Share Analysis 3.2. Comparative Analysis 3.2.1. Product Benchmarking 3.2.2. End user profiling 3.2.3. Patent Analysis 3.2.4. Top 5 Financials Analysis 4. Functional Food and Nutraceuticals - Market Forces 4.1. Market Drivers 4.2. Market Constraints 4.3. Market Challenges 4.4. Attractiveness of the Industry 4.4.1. Power of Suppliers 4.4.2. Power of Customers 4.4.3. Threat of New entrants 4.4.4. Threat of Substitution 4.4.5. Degree of Competition 5. Functional Food and Nutraceuticals Market– Strategic Analysis 5.1. Value Chain Analysis 5.2. Opportunities Analysis 5.3. Product/Market Life Cycle Analysis
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6. Functional Food and Nutraceuticals Market - Analysis by Food Type 6.1. Whole/Conventional Food 6.1.1. Cereal and Bakery Products, Nuts, Grains, Rice and Edible Oils 6.1.2. Fats and Sweets 6.1.3. Milk and its Products 6.1.4. Poultry and Fish Products 6.1.5. Vegetables and Fruits 6.2. Enriched/Enhanced/Fortified Food 6.2.1. Enhanced Dairy Products 6.2.2. Fortified Cereals and Grains 6.2.3. Fortified Gums 6.2.4. Functional Beverages/Energy Drinks 6.2.5. Functional/Healthy Snacks & Candies 6.2.6. Modified Oils 6.2.7. Soy Foods 7.
Functional Food and Nutraceuticals Market - Dietary Supplements Analysis 7.1. By Form 7.1.1. Capsule 7.1.2. Gel Caps 7.1.3. Liquid 7.1.4. Powder 7.1.5. Soft Gels 7.1.6. Tablet 7.2. By Ingredients 7.2.1. Amino Acids 7.2.2. Antioxidants
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7.2.3. Herbs & Botanicals 7.2.4. Minerals 7.2.5. Vitamins 8. Functional Food and Nutraceuticals Market - Functional Components and Source Analysis 8.1. By Ingredients 8.1.1. Carotenoids 8.1.2. Dietary Fibers 8.1.3. Fatty Acids 8.1.4. Flavonoids 8.1.5. Isothiocynaytes 8.1.6. Minerals 8.1.7. Phenolic Acids 8.1.8. Plant Sterols/Stanols 8.1.9. Prebiotics 8.1.10. Probiotics 8.1.11. Sulfides /Thiols 8.1.12. Soy Protein 8.1.13. Vitamin 8.2. By Source/Origin 8.2.1. From Animals 8.2.2. From Marine Life 8.2.3. From Plants 9. Global Functional Food and Nutraceuticals Market – End Consumer Analysis 9.1. By Benefits 9.1.1. On Health 9.1.2. On Physiology
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9.2. By Consumer Age Group 9.2.1. Infants 9.2.2. Teenagers 9.2.3. Adults 9.2.4. Elders 9.3. By Research 9.3.1. Agriculture Commodities & Byproducts 9.3.2. Biotechnology & Functional Food 9.3.3. Dairy Products 9.3.4. Functional Ingredients 9.3.5. Marine Life 9.3.6. Nutrigenomics 9.3.7. Poultry Animals 10. Global Functional Food and Nutraceuticals Market -Geographic Analysis 10.1. Introduction 10.2.North America 10.2.1. Canada 10.2.2. USA 10.2.3. Others 10.3.South & Central America 10.3.1. Argentina 10.3.2. Brazil 10.3.3. Chile 10.3.4. Others 10.4.Europe 10.4.1. Germany 10.4.2. France
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10.4.3. Italy 10.4.4. Russia 10.4.5. Spain 10.4.6. U.K 10.4.7. Others 10.5.APAC 10.5.1. China 10.5.2. India 10.5.3. Japan 10.5.4. Singapore 10.5.5. South Korea 10.5.6. Malaysia 10.5.7. Others 10.6.ROW 11. Market Entropy 11.1.New Product Launches 11.2.M&As, Collaborations, JVs and Partnerships 12. Company Profiles (Overview, Financials, SWOT Analysis – Top 5 Companies, Developments, Product Portfolio) 12.1. Anheuser-Busch InBev 12.2. Arla Foods 12.3. Activia Drinks 12.4. Cargill Inc. 12.5. Coca Cola Co. 12.6. Dean Foods 12.7. Del Monte Foods 12.8. Dr. Pepper Snapple Group Inc.
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12.9. General Mills Inc. 12.10. GlaxoSmithKline Co. 12.11. Groupe Danone 12.12. Groupe Lactalis 12.13. H.J. Heinz Co. 12.14. Hormel Food Corporation 12.15. Hershey Co. 12.16. Kellogg Co. 12.17. Kraft Foods 12.18. Mars Inc. 12.19. McCain Foods Ltd. 12.20. Meiji Group 12.21. Mondelez International, Inc. 12.22. Nestle S.A. 12.23. Odwalla Inc. 12.24. Ostuka Pharmaceutical Co. 12.25. Pepsi Co. 12.26. Red Bull GmbH 12.27. Saputo Inc. 12.28. Unilever 12.29. Yakult Honsha Co. Ltd. 13. Appendix 13.1.Abbreviations 13.2.Sources 13.3.Research Methodology 13.4.Compilation of Expert Insights 13.5.Disclaimer
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Report Description “Functional Food� remains to be an ambiguous term till today due to lack of any authoritative definition over it. Every country has defined this term according to its needs. Basically any food providing additional health benefits beyond the conventional food is termed as functional food. Japan was the first country to coin this term. Sometimes it is also called as Nutraceutical or Health Food. The recent trend of functional food includes dietary supplements containing vitamins, minerals, herbs; which are not recommended by medical practitioners IndustryARC estimates the global functional food market revenue for the year 2013 to be around $175 billion. With an annual average growth rate of about 15% the global market for functional food is forecast to exceed $230 billion by 2015. The growth in the functional food market can be attributed to the current trend for opting out to be preventive rather than reactive on health issues. Apart from that, the hectic life schedule and ageing population are also promoting the human dependency on the functional or nutraceutical foods for meeting nutrition requirements daily. Functional foods have its presence in almost every type of food type that human beings consume right form cereals, grains, nuts, vegetables, fruits, dairy products, confectionery items and snacks to non alcoholic beverages. The US and Japan markets are significant in the functional food industry followed by Asia Pacific and European markets. More than 75% of US functional food market is dominated by global key players such as Coca Cola Co., Dean Foods, General Mills Inc., Kellogg Co., Kraft Foods, Nestle S.A. and Pepsi Co. Functional food fastest growth is being recorded in energy drinks, healthy snacks and breakfast products that include cereals and grains. By the end of 2020 the Asia Pacific functional food market will dominate globally with a CAGR between 6-8% globally. Analyzing the whole market landscape for Functional Food/Nutraceuticals in 2013, Industry ARC is of the view that each sector of functional food market is dominated by different key players. Red Bull GmbH is world leader in energy drinks having market share more than 40% while Pepsi Co. and Kellogg Co. are world leaders in Healthy Snacks. Groupe Danone and Groupe Lactilas dominate the healthy Dairy Products whereas Yakult Honsha Co. Ltd. is a market leader in Probiotic Drinks.
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Functional Food Revenue ($Billion) - By Segment, 2013 80
72.0
70 60
55.0
50.0
50 40 30 20 10 0 Fortified Food
Functional Beverages/Energy Drinks
Dietary Supplements
Source: IndustryARC Analysis
The chart above represents the global market revenue of functional food sectors, viz: Fortified Food, Dietary Supplements and Functional Beverages/Energy Drinks for the year 2013. As it is clear from the chart above that Functional Beverages sector alone is the significant factor in the growth of Functional Food market. With the introduction of Probiotic Drinks, Enhanced Water and Calorie Burning drinks, functional beverage market will surge owing to the health conscious needs of consumers. Estimated Market Share of Functional Food-By Regions, 2013
16.0% 35.0%
24.0%
25.0%
North America
Asia Pacific
Europe
ROW
Source: IndustryARC Analysis
As evident from the pie chart above that North America led the market for 2013. Gradually the functional food will be under the reach of middle class men due to the reduction in prices brought by the fierce competition among functional food manufacturers. Therefore the nutraceuticals
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market will definitely see a growth in Asia Pacific and South American countries with middle income economy. The leading countries in the consumption of nutraceuticals are USA, Canada, Japan, China, Brazil, UK, Russia, Mexico and India. The expected CAGR for the growth of nutraceuticals market will remain between 6-8% at global scale till 2020. The recent acquisitions in the functional food industry are making its importance felt all across the world. Hershey Co bought 80% stake in Shanghai Golden Monkey Co. Ltd. for $ 584 million while Hormel Foods Corporation acquired Skippy brand from Unilever for $ 700 million. Research Institutes are continuously monitoring every functional ingredient/ component that can add value to the nutrient value of functional food. The development of plant sterols and stanols is an undergoing research to incorporate them as functional ingredient in functional food. A programme called as NutraMara in Ireland is looking for the feasibility of using marine plants and species in functional food. Poultry farms have started developing modified diets for their hens in order to increase the nutritional content of eggs i.e. Omega-3 .
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Global Functional Food/Nutraceutical Market - TRENDS
Hershey Co.
Bought 80% stake in Shanghai Golden Monkey Group Co. Ltd. For $584
million.
Hormel Foods Corporation bought Unilever’s Skippy for $700 million. Plant
Stanols and Sterols become the latest research topic for functional food
components.
Due to comparatively low costs people are opting for functional foods rather than costly healthcare.
The expected average annual growth rate for functional food market is 15% globally. Although Japan’s functional food market dominates at global level but the market for healthy snacks was much bigger in USA, to be estimated about $30 billion.
The
latest enriching ingredient used in fortified food is antioxidant that will fuel the
global function food industry.
Anheuser-Busch InBev acquired Grupo Model SAB for $20.1 billion.
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REPORT SCOPE & STAKEHOLDERS SCOPE The global functional food / nutraceutical market has been segmented into different product types like whole/conventional food, fortified or enhanced food and dietary supplements. Each of these segments is further broken down to give an in-depth analysis of the market. Apart from it classification is also given on the basis of functional ingredients used, source, industry and its claims to give a good hold of overall market conditions. The overall market is also presented from the perspective of different geographic regions and the key countries for this industry. Competitive landscape for each of the product types is highlighted and market players are profiled with attributes of company overview, financial overview, business strategies, product portfolio and recent developments. Market shares of the key players for 2013 are provided. The prominent players profiled in this report are Coca Cola Co., Dean Foods, General Mills, Hormel Food Corporation, Hershey Co., Mars Inc. Nestle and others. The report contains the most detailed and in-depth segmentation of the global functional food / nutraceutical market. STAKEHOLDERS Poultry Material Suppliers, Sea Food Providers, Vegetables & Fruits Suppliers, Nutrient and Supplement Suppliers, Confectionery Item Manufacturers, Cereals and Grains Suppliers, Beverage & Chocolate Makers, Nuts Suppliers, Equipment Providers, Processing Industry, Manufacturing Industry, Packaging Industry, IT service providers are the key stakeholders in this market.
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RESEARCH METHODOLOGY The quantitative and qualitative data collected for the functional food/nutraceutical market report is from a combination of secondary and primary sources. Research interviews were conducted with senior executives and/or managers of leading functional food providers. These Key Opinion Leaders (KOLs) were then provided a questionnaire to gather quantitative and qualitative inputs on their operations, performance, strategies and views on the overall market, including key developments and technology trends. Data from interviews is consolidated, checked for consistency and accuracy, and the final market numbers are again validated by experts. The global market was split by products, functional components and geography based on different factors like primary and secondary sources, understanding of the number of companies operating in each segment and also KOL insights. We have used various secondary sources such as directories, articles, white papers, newsletters, annual reports and paid databases such as OneSource, Hoovers and Factiva to identify and collect information for extensive technical and commercial study of the functional food/nutraceuticals market. The key players in the market and its value chain were identified through secondary research and their market opinions were also gathered in a similar way through telephonic interviews and questionnaires. We have also studied the annual reports of these top market players. Interviews with key opinion leaders such as directors, managers, marketing personnel were used extensively in understanding the need and emergence of functional food/nutraceutical market .
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THE ARC ADVANTAGE An analytical model lies at the core of our process, ensuring logical consistency throughout our research. We complement the model with secondary data and interviews with industry experts to reflect the latest trends. With our final expert validation, we provide you with only the most accurate and actionable intelligence.
THE ARC PROCESS Analytical Method 1. Granular breakdown of drivers into factors 2. Validate all factors in terms of their present impact on the market 3. Assign weights to these factors in terms of their relevance and impact on the market 4. Build the Analytical Model ANALYTICAL MODEL
Base Method
1. Get a topdown estimate of the market 2. Follow it up with a bottom-up estimate of the market 3. Check forconsistency and new growth factors that are relevant over the next 10 Years
4. Build the Base model BASE MODEL
Consolidation Method 1. Granular breakdown of drivers into factors 2. Validate all factors in terms of their present impact on the market. 3. Assign weights to these factors in terms of their relevance and impact on the market. 4. Build the Consolidated Model
Delphi Verification 1. Verify the findings of the model with experts from across the value chain 2. Verify the findings with players across small and large enterprises 3. Tweak the model and add new factors 4. Finalize the ARC Model
CONSOLIDATED MODEL
ARC MODEL
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