>>Functional foods is growing by 47%
Functional foods are those consumed as part of our normal diet, that have a particular function when ingested in regulating a particular body process.
The biggest impact that these types of products have made has been in the dairy category. Whether motivated by quirky ad campaigns, perceived or real consumer benefits, functional foods seem destined to have a big impact on the UK grocery trade.
Overall, the market for this category is now worth £353m and has seen strong year-on-year growth of 46.7%. With a penetration of 51.5%, this is the equivalent of 12.6 million households buying into this market in the last year. The average spend for these households is almost £28 each.
Those functional foods represented in the dairy category fall roughly into two broad areas - cholesterol-reducing products, such as Benecol, or intestinal flora promoting (probiotic) products, such as Actimel. It seems to be the one-shot yogurt/milk drink market that has been the main product form for the delivery of these functional consumer benefits.
This sector of functional foods has grown by 81.5% in a year, with almost one in three households now purchasing yogurt/milk drink-type products, according to the latest annual figures. Flora Pro-activ has recently extended its brand into this sector with the twin consumer benefits of cholesterol-reduction and probiotic.
Of the brands in the sector, Danone Actimel Yogurt Drink is the market leader, accounting for more than one fifth of all functional foods sales by value.
The ‘Actimel Challenge’ appears to be working, with growth for the brand coming mostly through penetration gains - 1.6 million additional households have purchased Actimel’s yogurt Drink in the latest year.
With its many product launches, and heavy brand marketing campaigns, this market promises to prove to be very dynamic and one to keep an eye on in 2005.
Patrick Lyon, analyst, TNS Superpanel
Functional foods are those consumed as part of our normal diet, that have a particular function when ingested in regulating a particular body process.
The biggest impact that these types of products have made has been in the dairy category. Whether motivated by quirky ad campaigns, perceived or real consumer benefits, functional foods seem destined to have a big impact on the UK grocery trade.
Overall, the market for this category is now worth £353m and has seen strong year-on-year growth of 46.7%. With a penetration of 51.5%, this is the equivalent of 12.6 million households buying into this market in the last year. The average spend for these households is almost £28 each.
Those functional foods represented in the dairy category fall roughly into two broad areas - cholesterol-reducing products, such as Benecol, or intestinal flora promoting (probiotic) products, such as Actimel. It seems to be the one-shot yogurt/milk drink market that has been the main product form for the delivery of these functional consumer benefits.
This sector of functional foods has grown by 81.5% in a year, with almost one in three households now purchasing yogurt/milk drink-type products, according to the latest annual figures. Flora Pro-activ has recently extended its brand into this sector with the twin consumer benefits of cholesterol-reduction and probiotic.
Of the brands in the sector, Danone Actimel Yogurt Drink is the market leader, accounting for more than one fifth of all functional foods sales by value.
The ‘Actimel Challenge’ appears to be working, with growth for the brand coming mostly through penetration gains - 1.6 million additional households have purchased Actimel’s yogurt Drink in the latest year.
With its many product launches, and heavy brand marketing campaigns, this market promises to prove to be very dynamic and one to keep an eye on in 2005.
Patrick Lyon, analyst, TNS Superpanel
No comments yet