Key Trends in Nutraceutical Food and Drinks.pdf
KEY TRENDS IN NUTRACEUTICAL FOOD AND DRINKS Novel ingredients, new applications and future revenue opportunities By Mark J Tallon, PhD ii Mark J Tallon, PhD Dr Mark J. Tallon received his Ph.D. in nutritional biochemistry from Southampton University and also holds a first degree in exercise physiology and a Masters degree in nutrition science. He has worked as a key consultant to many companies including Labrada Inc, iSatori Global Laboratories, EAS, Miami Research Associates to name a few. Until recently Dr Tallon was Chief Science Officer of Oxygenix Ltd, a consultancy firm specializing in European, Pan-American and Asian regulatory compliance of dietary supplements. He was co-founder of Cr-Technologies, LLP a raw ingredient company specializing in novel and proprietary nutraceuticals for the cosmetic, dietary and functional food market. He is currently a member of the Institute of Biology and the Nutrition Society of Great Britain and a member of the International Society of Sports Nutrition (ISSN). Through these societies, Dr Tallon is currently registered as a certified biologist and nutritionist. Other affiliations include the Institute of Food Technologists, American Botanical Council, and American College of Nutrition, The Physiological Society and the American Medical Writers Association. Copyright © 2007 Business Insights Ltd This Management Report is published by Business Insights Ltd. All rights reserved. Reproduction or redistribution of this Management Report in any form for any purpose is expressly prohibited without the prior consent of Business Insights Ltd. The views expressed in this Management Report are those of the publisher, not of Business Insights. Business Insights Ltd accepts no liability for the accuracy or completeness of the information, advice or comment contained in this Management Report nor for any actions taken in reliance thereon. While information, advice or comment is believed to be correct at the time of publication, no responsibility can be accepted by Business Insights Ltd for its completeness or accuracy. iii Table of Contents Key Trends in Nutraceutical Food and Drinks Executive Summary 12 Weight control 12 Blood sugar 13 Digestive health and allergies 14 Joint and bone health 15 Cognitive health and energy 16 Aging and cosmeceuticals 17 Cardiovascular health: lowering cholesterol and blood pressure 18 Industry survey 19 Chapter 1 Weight control 22 Summary 22 Introduction 22 Obese and overweight epidemiology 23 NPD and innovation 25 Regional analysis 28 Current product overview 30 Current ingredients 31 Protein isolates 32 Oligofructose 33 Bitter orange 36 Novel ingredient case study ForsLean and the Sabinsa Corporation 37 The company 37 The ingredient 37 Proof of efficacy 38 Dosage and delivery form 38 Marketing assessment 38 Future ingredients 40 Caralluma fimbriata 40 Simmondsia chinensis (jojoba plant ext) 42 Pinoleic acid 43 iv Conclusions 44 Chapter 2 Blood sugar 46 Summary 46 Introduction 46 Diabetes epidemiology 47 NPD and innovation 48 Regional analysis 51 Current product overview 53 Current ingredient trends 54 Chromium 54 Cinnamon 56 Glucomannan (amorphophallus konjac) 57 Novel ingredient case study Cinnulin-PF and Integrity Nutraceuticals International 58 The company 58 The ingredient 58 Proof of efficacy 59 Dosage and delivery form 60 Marketing assessment 61 Future ingredients 62 Bitter melon 63 Coffea arabica and chlorogenic acid 65 Lipoic acid (potassium-R-lipoate) 66 Conclusions 67 Chapter 3 Digestive health and allergies 70 Summary 70 Introduction 70 IBS epidemiology 72 Market value of digestive health food and drinks 73 NPD and innovation 74 Regional analysis 77 Current ingredients 80 Resistant starch 81 Pro, pre and synbiotics 83 Allergen free foods 84 Novel ingredient case study Beneo Synergy-1 and Orafti 86 The company 86 v The ingredient 86 Dosage and delivery form 88 Marketing assessment 89 Future ingredients 91 Novel prebiotics 91 Isomalto-oligosaccharides (IMO) 91 Soy-oligosaccharides 92 Xylo-oligosaccharides 92 Cranberry 93 Grapefruit + inulin (prebiotics) 95 Conclusions 96 Chapter 4 Joint and bone health 98 Summary 98 Introduction 98 Osteoporosis epidemiology 99 Market value of bone health food and drinks 100 NPD and innovation 101 Regional analysis 105 Current product overview 107 Current ingredients 107 Glucosamine sulfate 108 Chondroitin 110 Methylsulfonylmethane (MSM) 111 Novel ingredient case study MicroLactin and the Humanetics Corporation 111 The company 111 The ingredient 112 Proof of efficacy 112 Dosage and delivery form 113 Marketing assessment 113 Future ingredients 115 Galactolipids (GOPO) 115 Sodium hyaluronate 118 Sulphoraphane (broccoli extract) 120 Conclusions 121 Chapter 5 Cognitive health and energy 124 Summary 124 Introduction 124 vi Major depressive disorder epidemiology 126 Market value of energy food and drinks 127 NPD and innovation 128 Regional analysis 131 Current ingredients 133 Caffeine 133 ECGC (-)-epigallocatechin-3-gallate) 134 Coenzyme Q10 (CoQ10) 136 Novel ingredient case study Teavigo and DSM Nutritional Products 138 The company 138 The ingredient 138 Proof of efficacy 139 Dosage and delivery form 139 Marketing assessment 140 Future ingredients 142 Creatine 142 Ashwagandha 144 Blueberries 146 Conclusions 148 Chapter 6 Aging and cosmeceuticals 150 Summary 150 Introduction 150 The aging population 151 Market value of oral beauty supplements 152 NPD and innovation 153 Regional analysis 157 Current product overview 159 Current ingredients 160 Coenzyme Q10 (CoQ10) 160 Essential fatty acids 161 Vitamin E 162 Novel ingredient case study Injuv from Soft Gel Technologies, Inc 164 The company 164 The ingredient 164 Proof of efficacy 165 Dosage and delivery form 166 Marketing/company assessment 166 Future ingredients 168 Pomegranate extract 168 N-acetylglucosamine 168 Quercetin 170 vii Conclusions 170 Chapter 7 Cardiovascular health: lowering cholesterol and blood pressure 172 Summary 172 Introduction 173 Cardiovascular disease epidemiology 174 Market value of heart health food and drinks 176 NPD and innovation 177 Regional analysis 182 Current product overview 185 Current ingredients 186 Current cholesterol ingredients 186 Oat fiber (beta-glucans) 186 Soy protein 188 Phytosterols (beta-sitosterols) 189 Current blood pressure ingredients 190 Tripeptides (L-valyl-L-prolyl-L-proline and L-isoleucyl-L-prolyI-L- proline) 190 Casein peptide (C12) 192 Lycopene 194 Novel ingredient case study Reducol and Forbes Medi-Tech Inc 195 The company 195 The ingredient 195 Proof of efficacy 196 Dosage and delivery form 197 Marketing/company assessment 198 Future ingredients 201 Future ingredients in the cholesterol market 201 Glucomannan 201 Pomegranate extract 203 Rice bran oil 204 Future ingredients for the blood pressure market 206 Cinnamon 206 Sesamin lignans 207 L-theanine 209 Conclusions 210 Chapter 8 Industry survey 212 Summary 212 viii Introduction 213 Contributor bio 213 The survey 215 Key trends in functional food and drinks 215 Ingredients 224 Selection of ingredients for food and drinks 230 Marketing functional ingredients 233 Future ingredients 237 Chapter 9 Appendix 242 Bibliography 242 Index 253 List of Figures Figure 1.1: % growth of weight control food and drinks launched, 2002-2006 25 Figure 1.2: % of weight control products launched in each category, 2002-2006 27 Figure 1.3: Share of weight control food and drinks launched, 2002 and 2006 (%) 28 Figure 1.4: Percentage of weight control products launched in each region, 2005-2006 29 Figure 1.5: Balance Bar 33 Figure 1.6: Instantaneo 34 Figure 1.7: IMG advertising copy for Sabinsas ForsLean 39 Figure 1.8: Balanced GenaSlim Meal Replacement Powders 41 Figure 1.9: Suntory Beautiful Water 44 Figure 2.10: % growth of blood sugar food and drinks launched, 2002-2006 49 Figure 2.11: % of blood sugar products launched in each category, 2002-2006 50 Figure 2.12: Share of blood sugar food and drinks launched, 2002 and 2006 51 Figure 2.13: Percentage of blood sugar products launched in each region, 2005-2006 52 Figure 2.14: DiabetiTrim 55 Figure 2.15: Eat Well Be Well 57 Figure 2.16: Kirin Wellfoods Lieta Soup 57 Figure 2.17: Advertising copy for INIs Cinnulin PF 62 Figure 2.18: Charantea Ampalaya Bitter Melon Tea 64 Figure 2.19: Inner Balance Body Shape 67 Figure 3.20: % growth of digestive health and allergen free food and drinks launched, 2002-200675 Figure 3.21: % of digestive health and allergy free products launched in each category, 2002-2006 76 Figure 3.22: Share of digestive health and allergen free food and drinks launched, 2002 and 2006 77 Figure 3.23: Percentage of digestive health and allergen free products launched in each region, 2005-2006 78 Figure 3.24: Hi-Maize Sainsburys bread 82 Figure 3.25: Nurture 3 gold 84 Figure 3.26: Oraftis Ideal You Beneo based sweetener 90 Figure 3.27: CranBiotic from Futurebiotics, LLC 94 ix Figure 4.28: % growth of bone and joint health food and drinks launched, 2002-2006 102 Figure 4.29: % of bone and joint health products launched in each category, 2002-2006 103 Figure 4.30: Share of bone and joint health food and drinks launched, 2002 and 2006 104 Figure 4.31: Percentage of joint and bone health products launched in each region, 2005-2006 105 Figure 4.32: Just 4 Joints 109 Figure 4.33: Zeria Shin Royal Zeronto B Fresh 110 Figure 4.34: Advertising copy for Humanetics MicroLactin 114 Figure 4.35: Litozin Joint Health 117 Figure 4.36: FlexMend with Hyaluronic Acid 120 Figure 5.37: % growth of cognitive health and energy food and drinks launched, 2002-2006 128 Figure 5.38: % of cognitive health and energy products launched in each category, 2002-2006 129 Figure 5.39: Share of both cognitive health and energy food and drinks launched, 2002 and 2006 130 Figure 5.40: Percentage of cognitive health and energy products launched in each region, 2005- 2006 132 Figure 5.41: Herbal Energy Pastilles from Swiss Navy 135 Figure 5.42: Lacto Tab Q10 137 Figure 5.43: Teavigo advert released from DSM 141 Figure 5.44: Firefighter EMS from Firefighter Brands LLC 144 Figure 5.45: Herbonic from Maharishi Ayurveda Corporation 145 Figure 5.46: Natural Factors from Natural Factors Nutritional Products, Inc 147 Figure 6.47: % growth of cosmeceutical food and drinks launched, 2002-2006 154 Figure 6.48: % of cosmeceutical products launched in each category, 2002-2006 155 Figure 6.49: Share of cosmeceutical food and drinks launched, 2002 and 2006 156 Figure 6.50: Percentage of cosmeceutical products launched in each region, 2005-2006 157 Figure 6.51: DermaSilk from Cesmedex 163 Figure 6.52: Injuv advert for Soft Gel Technologies, Inc 167 Figure 6.53: Inaba Shiwa from Inaba Foods Ltd 169 Figure 7.54: % growth of cholesterol and blood pressure reducing food and drinks launched, 2002- 2006 177 Figure 7.55: % of cholesterol and blood pressure reducing products launched in each category, 2002-2006 178 Figure 7.56: Share of cholesterol and blood pressure reducing food and drinks launched, 2002 and 2006 179 Figure 7.57: Percentage of cholesterol and blood pressure lowering products launched in each region, 2005-2006 182 Figure 7.58: Perfect Foods from Garden of Life 187 Figure 7.59: Glenny's Naturals Soy Crisps 188 Figure 7.60: Tescos Reducol fortified milk product 190 Figure 7.61: Vegetables every morning from Ajinomoto 191 Figure 7.62: Beauty drink “Yokuasa Purun” from Coca-Cola 193 Figure 7.63: Reducol raw ingredient from Forbes Medi-Tech Inc 197 Figure 7.64: Reducol branding from Forbes Medi-Tech Inc 199 Figure 7.65: Perfect Meal from Garden of Life 203 Figure 7.66: Heart Oil from Tropical Nutrition Co Ltd 205 Figure 7.67: Kelloggs Smart Start Healthy Heart Cereal Bars 207 Figure 7.68: Kanebo Kurogoma Milk Soft Candy from Kanebo Foods 208 Figure 7.69: C2 Cool IOTF Business Insights Ltd 24 The current incidence of obesity is still on the increase. Table 1.1 summarizes the prevalence of obesity within the 8 major global food and drink markets. The data shows that the US market has the highest incidence of obesity (66.6%) followed by the UK. The National Institute of Health reports that 10.8 million (15%) children aged 6 to 11 and 10.9m (16%) children aged 12 to 18 are overweight or obese. This suggests that by adulthood the increased incidence of obesity-related disease will be evidently greater than at present. As such there is a need for effective natural weight loss solutions. Between 2000 and 2004, a leading solution to the weight control crisis in the US was driven by the herbal ingredient “ephedra”. However, in February 2004 the FDA decided to prohibit the sale of ephedra containing products at an estimated regional cost of $100m per year. As a category driver within the weight loss market the decision of the FDA has shaken consumer confidence as removal was based on safety and toxicological concerns. However, a recent decision by a district court in Utah has allowed the sale of ephedra at a dose of 10mg per day. This victory may be short lived as many people within the regulatory sector believe this ruling will give congress the impetus to tighten further the rules and regulations governing the dietary supplement industry (DHESA). The result may have a wider impact regarding ingredients added to food and drink products including: ? Greater scientific scrutiny of marketing claims; ? Product safety; ? A major hike in product liability insurance. In addition, because obesity is linked to a multiplicity of disease states including accelerated onset of diabetes and cardiovascular disease, consumer perception has gravitated away from purely an image or vanity perspective and towards products that provide beneficial health improvements as a direct consequence of weight loss. 25 NPD and innovation Figure 1.1: % growth of weight control food and drinks launched, 2002-2006 % growth in products launched -80%-60%-40%-20%0%20%40% Dairy Bakery ? Dairy. Product launches in the dairy category that target weight management increased by 34% since 2002 and bakery and cereals increased by 35%. The growth in the dairy channel is representative of the increase in products such as low carb ice creams that claim to help control weight. The bakery and cereal market has also had to develop new low carb products in order to retain share of the weight control market. According 26 to estimates by Morgan and Stanley, the percentage of the low carb marketplace owned by bakery and cereal products will continue to grow, comprising 22% of the total low carb industry in 2008. All other categories have decreased in growth of new product launches in the trend since 2002; with snacks experiencing the largest decrease over the past 4 years (74%). Other functional trends, such as energy, blood pressure and cholesterol, show substantial growth for snack NPD and are therefore taking share from the weight control category. Because of these factors, it is likely that the tradit
