Function follows form: consumer confusion has been a barrier to widespread growth of functional foods, but manufacturers have an opportunity to communicate the benefits of the market

Dairy Foods, Jan, 2005 by William A. Roberts, Jr.

A Functional Boom?

Mintel has found young adults to be a willing audience for functional foods, but Baby Boomers (who begin turning 60 in 2006) may hold untapped potential. The aging consumer may face chronic health conditions that respond to dietary management and fortification. However, Mintel's consumer research found seniors the least likely group to purchase functional foods, partially due to the youth-oriented marketing efforts of most functional foods. Additionally, older adults are more comfortable taking pills to solve health conditions.

The youth-oriented marketing efforts have propelled younger consumers to the forefront of functional food consumption. Respondents aged 18-34 are most likely to purchase functional food, even though one third of this group never has bought such products. Only 15% are regular purchasers, while 41% buy occasionally and 56% are interested in learning more about the products. Clearly, the opportunity exists to grow the segment. Functional cereals, yogurt and nutritional bars, Mintel believes, can serve as "gateway" products, a means of introducing new consumers to the benefits of functional foods, while package labeling can combine advertising with health information.

Currently, functional food consumers can be grouped into one of three classifications:

* Medically driven purchasers seek products to address a specific disease or condition. Likely over the age of 45, over 65 in particular, they want functional foods to address high cholesterol, high blood pressure or osteoporosis.

* The healthy generalist consumer is most likely a regular purchaser of functional foods and wants a range of products promoting a healthy, lifestyle.

* The average consumer, meanwhile, wants more-healthful food options but has specific requirements: it cannot be too much trouble, and it must add a new element of taste or convenience. This group is probably not willing to pay more for a product solely on the basis of enhanced nutrition, warns Mintel. Unfortunately, consumers do not understand most functional products or their benefits, a further reflection of the opportunities and importance to be found in education efforts.

Once the consumers become regular purchasers of functional foods, they seem to have a wide acceptance of all such products. Mintel's research shows regular buyers are "much more likely" to buy foods in all of the surveyed categories. Soy products seem of particular interest. More than half of functional buyers purchase soy products, undoubtedly benefiting from the promotion of soy to women as a possible replacement for hormone replacement therapy. At the same time, branded ingredients are playing an increasing role in functional foods, be it isoflavones, phytosterol ingredients, or omega-3 fatty acid DHA.

The importance of functional ingredients to recent growth in yogurt sales cannot be denied. The category's best-selling dairy product, functional yogurt, accounts for almost 56% of dairy/margarine sales, and has benefited from the inclusion of such complementary ingredients as prebiotics and probiotics. Among the probiotics serving to boost the category are Lactobacillus casei, L. reuteri and Bifidobacterium bifidum.