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MARKET DEVELOPMENT
Functional Food claims not trusted by consumers
calendar05-12-2005 | linkSoyatech.com | Share This Post:

2/12/05 (Soyatech.com) -  Two market analyst reports have found that consumers in the US and Europe do not trust the claims made on functional foods. Meanwhile, the market for food and drinks fortified with vitamins and minerals is growing rapidly in south east Asia, due mainly to Government backing.

The first study conducted by Datamonitor, showed that despite a 7% annual increase in the sales of functional foods from 1999-2004, US and European consumers distrusted the health claims made by food and drink companies. What was more, the meaning of some health claims was often unclear to them. The US Food and Drug Administration's (FDAs) health claims initiative and the proposed EU legislation on the subject have not increased consumer trust. Third party endorsements by charities are also failing to communicate the alleged health benefits of fortified foods. John Band, the author of the report, believes that although health claims can be relevant, many labels do not do convey the key message clearly enough.

He goes on to give an example of how the FDA's qualified health claims are not at all "marketing friendly". For example,the claim for tomatoes and prostate cancer reads "Very limited and preliminary scientific research suggests that eating one-half to one cup of tomatoes and/or tomato sauce a week may reduce the risk of prostate cancer. FDA concludes that there is little scientific evidence supporting the claim." Heinz have said that they do not intend to use the statement even though they have the right to do so.

The study found that 45% of Americans distrust health claims compared to 63% of Britons, 56% of Germans and 47% of the French. However despite the scepticism Germany is Europe's largest functional foods market with more than 150% of sales compared to any other country. The only area where the US is less trusting than Europe is with probiotic ingredients. Apparently Americans tend to be less receptive to the idea of ingesting live bacteria! (From Nutra Ingredients Europe).

Meanwhile a report by Frost & Sullivan reveals that the market for foods and beverages fortified with vitamins and minerals is growing in South East Asian Markets (Malaysia, Thailand, Vietnam, Indonesia, Philippines and Singapore). The growth is expected to be 10.1% per year from 2005-2012. Calcium enriched products are seeing the fastest growth at 16.5% per annum compared to 1.8% in Europe. This growth is mainly due to Government campaigns to boost public health. Thailand, for example, offers a 'Nutrition Seal' to companies which produce fortified foods that the health ministry views as accessible to rural and at-risk populations. Nevertheless, public awareness is still limited, particularly for less well known vitamins. (From Nutra Ingredients Europe)