PR-SCIENTIA ADVISORS FORECASTS BRIGHT FUTURE FOR “FUNCTIONAL FOOD” MARKET
December 17, 2008
International management consulting firm predicts rapid growth, global sales of nearly $200B by 2012 for medicinal foods, nutraceuticals, worldwide; far outpacing conventional food, pharma. Key factors include aging US population, rising healthcare costs, robust science, company innovation.
Cambridge MA and Palo Alto, CA– With many industries in the doldrums, Scientia Advisors is pleased to forecast continuing robust growth in the functional foods marketplace, worldwide.
In a study released today, Scientia, an international management consulting firm, predicts an annual compound growth rate of seven percent through 2012, averaged across all segments of the industry. The rapid rise will bring global sales of functional foods to $195B—a 52 percent gain over 2006 sales of $128B.
Functional foods, sometimes called “medicinal foods” or “nutraceuticals,” are those fortified with naturally-occurring ingredients that provide health benefits beyond basic nutrition.
Functional foods may include probiotics (microorganisms that provide health benefits), Omega 3 (fish oil) extracts, phytonutrients (substances found in plants such as soy beans, blueberries or grapes) or other natural substances. Some of these ingredients can reduce the risk of certain diseases or help manage chronic conditions such as diabetes or heart disease. Others can enhance physical and athletic performance, memory, or cognitive performance.
The study describes a constellation of factors responsible for the expected growth in various parts of the world, particularly in the US and China. It predicts that the trend will help reduce health care costs and identifies factors responsible for the commercial success of some functional food products and the disappointing sales of others.
The predicted seven percent rate essentially continues the eight percent annual compound growth rate seen in the functional foods market between 2003-2006. It is nearly twice the four percent growth rate Scientia predicts for conventional foods and pharmaceuticals through 2012.
The Scientia study , led by Scientia Principal Bob Jones, was based on extensive interviews with scientists, clinicians, manufacturers and product developers, as well as on traditional market research.
Scientia Advisors is an international management consulting firm specializing in growth and operational strategies for major and emerging companies in health care, life science and biotechnology, worldwide.