Many companies throughout the value chain believe that food will play an increasingly competitive role as the vehicle for concentrated dosages of dietary fortification. Consequently, in the past two years we have seen greater sales growth of raw material vitamins to food companies than to supplements companies. Over this same time period, the entire functional food category has been growing at a rate of 8 to 10 percent per year. We expect this growth rate to continue for the next two to three years. One of the dynamics to watch will be whether vitamin and other health supplementation will be accomplished more through pill or food form.
Functional foods are the most appealing dosage form imaginable and have great potential.
However, the current crop of products offers little more than a sprinkle of ingredients that may lead to a lack of consumer confidence. Today, hype and uniqueness help boost these products, but after the novelty wears off, consumers will become more critical and selective in their purchase decisions. To ensure the future of this market, manufacturers must offer products that will live up to their claims, provide a real benefit and be priced within reach. Therefore, companies have the opportunity to capture consumers' knowledge about and interest in key nutritional ingredients by creating appealing products that incorporate these ingredients into foods such as cereals, bars and beverages that are already common in their daily diets.