10 FUNCTIONAL FOOD TRENDS OF 2014

Published April 21, 2014 in Food Product Design 

Posted in News, Market Research, Market Trends, Clean Label, Functional Foods, Beverages, Proteins,Beans, Nuts and Seeds, Nuts, Legumes, Vitamins / Minerals, Fish, Fish Oil, Omega-3s, Probiotic,Immunity, Immune Health, Natural, Healthy, Healthy Foods, Nutrition, Diet, Hispanic, Demographic,Organic, Energy Drinks, Sports Nutrition, Children, Vegetarian, Egg, Weight Management

CHICAGO—A heightened interest in natural products and an emphasis on protein make up a couple of the major trends impacting how consumers today shop and purchase their food products. New insights from the Institute of Food Technologists (IFT), gathered from a variety of industry sources, reveal a total of 10 functional food trends that will likely shape the industry in the coming year.

1. Specialty nutritionals
Many consumers who once relied on nutritional supplements have made the switch to fortified and functional foods instead. Nearly 9 in 10 adults made a strong effort to consume more nutrients, vitamins, minerals, herbs/botanicals and fish/oil/omega-3s in their diets. Maintaining a healthy digestive system and immune health also are top health priorities, and probiotics will play a key role in 2014.
2. Clean label foods
Consumers' interest in "real" ingredients they can recognize is also driving the industry and leading to a demand for simple, natural foods. More than half of consumers look for foods absent of artificial ingredients, while one in four adults buy organic foods/beverages. The majority of consumers strongly agree with the idea of getting their nutrition from foods with naturally occurring health benefits.
3. Hispanics and health
Another trend involves America’s 52 million Hispanics who offer a huge market potential with a buying power of more than $1 trillion. U.S. Hispanics spent an estimated $6.9 billion on functional foods in 2012 and $9.4 billion on natural/organic foods/drinks . Hispanics are also the number one users of energy drinks/shots, sports beverages and 100% juice/juice drinks. In addition, this demographic is about twice as likely as the general population to spend whatever it takes to look younger, and they are often the first to try a new health food, nutritional product or diet.
4. The power of protein
An emphasis on protein is another huge trend in today's food industry. The protein market is still center stage with 57% of consumers, especially between the ages of 18 and 34 and above age 65, seeking protein sources. These consumers are looking for more protein to maintain healthy bones/joints, strengthen immune systems, and build muscle strength and tone while maintaining energy throughout the day.
5. Kid-friendly foods
Almost half of America’s 32 million moms who say they always buy health foods and beverages for their kids are looking for a wider range of healthy, convenient, kid-friendly foods and drinks with nutrient and calorie levels specific to kids. Research shows 44% of children under age 12 consume organic foods/drinks at least once per week, and moms are less likely to seek out organic products as their children age.
6. Pharma foods
 An estimated 8 in 10 believe functional foods can help prevent or delay the onset of heart disease, hypertension, osteoporosis and Type 2 Diabetes, while 6 in 10 associate it with benefits linked to age-related memory loss, cancer and Alzheimer’s disease. Last year, 56% of consumers bought foods or beverages that targeted a specific condition, and cholesterol-lowering foods and beverages were the most purchased condition-specific food or drink.
7. Vegetarian movement
Meals without meat is another growing trend in the United States: 80% of households now eat meatless meals for dinner on occasion. Eggs are the most popular alternative, followed by beans/lentils/legumes. Dairy-free milks including soy, rice and almond, ranked fifth, and coconut water ranked eighth among the popular nonalcoholic beverage trends in restaurants for 2014.
8. Sports nutrition
Foods for athletic performance enhancement are also trending as the explosive sports nutrition category targets both athletes and body builders, as well as recreational sports participants, casual athletes and gym exercisers. Nearly 6 in 10 adults used a sports nutrition product in 2012, and the combined consumer sales of sports nutrition supplements, nutrition bars, and energy drinks topped $24 billion in 2012, up 11.2%. A growing body of research also points to the value of dairy in sports nutrition, and these ingredients can help provide digestible, high-quality protein for building and repairing muscle, carbohydrates for energy, and vitamins and minerals to strengthen bones and replace electrolytes. Kids play a major role in the sports nutrition category, with almost 75% of kids between the ages of 6 and 11, and 71% of teens ages 12 to 17 using sports drinks. Some moms are also using sports nutrition powders for their children. Half of the users of protein drinks believe they help them perform better during exercise.
9. Managing weight
Weight loss is still a huge factor for consumers, but today, people looking to shed a few pounds have avoided the deprivation-style weight loss campaigns, and instead simply eat healthier while adding specific "real food" components and nutrients to their diets. Whole grains, fiber, and vitamin D topped the list of ingredients that two-thirds of those trying to manage their weight added to the diet, while others added more calcium, protein, antioxidants, or omega 3/fish oil. An estimated 60% of adults believe that protein works for weight loss, and one-third believe protein boosts metabolism and aids in fat burning.
10. The next generation
Lastly, Millennials' view of food choices has been another driving force in 2014. Millennials between the ages of 14 and 33 now view their food choices as healthier, more expensive, more natural/organic, less processed, better tasting and fresh. This demographic is also the most likely to believe that functional foods and beverages can be used in place of some medicines, to relieve tiredness and lack of energy, retain mental sharpness with aging, stress, and eye health. Millennials and Generation X read nutrition labels for calories, vitamins/minerals, serving size and protein. They also drink a wider range of beverages than other generations, including ready-to-drink coffees and sparkling drinks.

Sources:

• Institute of Food Technologists: Top Ten Functional Food Trends for 2014

SALES & MARKETING TRENDS: Halal Food Trends

Global Pathfinder Report

 Halal Food Trends 

The international Muslim population is comprised of nearly 1.6 billion people who, as part of their Islamic religion, follow a Halal diet (Carnegie Endowment for International Peace). The sheer size and scope of this market presents a promising mosaic of consumers for food manufacturers.

There are two key drivers that make the Muslim population an increasingly important market. The first simply comes down to the numbers. It is estimated that Muslims account for about 25% of the global population, and the Muslim population is younger and growing faster as a whole, increasing at a rate of 1.8% per year (Carnegie Endowment for International Peace). The second is the changing nature of the world market. The Muslim population is gaining influence and economic clout, with the gross domestic product (GDP) of most Muslim countries growing faster than in the West.

Compounded by new immigration, there are large amounts of native Muslims around the world. These second and third generation Muslims show the same consumer inclination to opt for convenience rather than cooking from scratch. They are also looking to expand the range of cuisines traditionally favoured by their elders. These changing trends not only promise a growing demand for Halal foods, but also make a market ripe for new product developments.

Halal Traditions

Within the Islamic religion, a strong emphasis is placed on cleanliness, both spiritually and in the context of
food and drink. For a food and drink product to be approved for consumption it must conform to the Islamic dietary laws as specified in the Quran (Holy Book). Halal and Haram are universal terms that apply to all facets of Muslim life

Halal is an Arabic term meaning ―permissible‖ or ―lawful.‖ The opposite of Halal is Haram, which means
―prohibited‖ or ―unlawful.‖ Health is a key characteristic embedded in all the teachings and instructions of
Islam; followers are taught that anything Halal will lead to good health, whereas anything Haram will lead to
some form of disease and suffering.

In regards to food and drink, Islamic scholars have laid down three guidelines:

1. Consumption must include only Halal food and food products.
2. The food and food products must be obtained through Halal means.
3. The material in contact with the food or food products must not be harmful to health.

Halal products are determined based on their purity and cleanliness, and while the particular standards may
have regional or other complexities, there are some primary instances of non-Halal, or Haram products,
including:
pork and all swine by-products,
animals that are not slaughtered according to Halal requirements,
animals that have been killed prior to slaughter,
animals slaughtered in the name of anyone other than God,
carnivorous animals or birds of prey,
blood and blood by-products,
alcohol and intoxicants, and
otherwise Halal foods that have been contaminated by any of these Haram
products.

In 2009, the global food market was valued at US $3,992.2 billion (retail plus trade), and according to the latest
research from the World Halal Forum, the global Halal food market is worth an estimated US $635 billion. The
Halal market in Europe alone represents US $67 billion, highlighting that the Halal food market in non-Muslim
countries is substantial. Non-Muslim countries offer huge opportunities for Halal food producers.

The 1.6 billion global Muslim population largely resides in countries where the economy is growing, enjoy
higher income levels, and report higher expenditures on good-quality Halal food, creating substantial marketing
opportunities for Halal food products. Also, while developed countries are seeing declining populations with
shrinking families, Muslim nations are seeing rapid growth and larger families. Both of these trends are fuelling
further growth amongst Halal products.

According to the Halal Industry Development Corporation of Malaysia, among all Halal products on a global scale, 10% is represented by meats, and 35% is processed food and non-alcoholic beverages. Value-added beef products and deli are classified within the processed food category, which also includes a wide variety of other products, such as cookies, candies, and so on. The remaining categories, such as dairy or fresh produce, are fragmented and proportionally small by comparison.

While many things are clearly Halal or Haram, there are some items that are not so easy to classify, and these are often referred to as mashbooh, which means ―doubtful‖ or ―questionable.

The International Halal Food Market: Characteristics and Challenges 

 

According to the World Halal Forum Chairman (for 2008-2007) Mr Khairy Jamaluddin, one of the things 

impeding growth in the Halal industry, despite rising consumer demand for Halal products, is the lack of 

international consensus in regards to Halal standards. There are several competing bodies offering Halal status 

certification, and certification fees differ substantially. Furthermore, in almost all countries Halal is a religious 

issue and thus the state will not intervene in its control or standardization. Halal certification, therefore, is 

conducted by many independent agencies, associations, councils, and federations, and is regulated under 

labelling law. 

 

However, Halal markets are not necessarily similar across different countries or regions - each market is 

fragmented by ethnicity, location, income, and various other determinants - posing further challenges to the 

idea of international standardization, as well as the producers and exporters of Halal products. Furthermore, 

most Muslim countries, especially those in Asia and Africa, still rely on basic and non-tradable food products which are largely supplied locally and not internationally exchanged. 

 

The concept of Halal does hold a sort of universal meaning, and while Halal certification is a necessity, it is 

insufficient on its own to succeed in international trade due to the inconsistencies in terms of standards 

mentioned above. Halal products must also hold up to world-class standards of quality, safety, packaging and labelling. It has been observed, for example, that most imported Halal products in the Middle East have failed due to poor packaging, inconsistent supply and lack of sustained branding. Equally important, integrity within the Halal supply chain must be preserved. If consumers lose confidence in the status of Halal, sales and trade will be affected. 

Although we tend to think of Muslim countries as being centered in the Middle East, the 

largest Muslim nations are actually located in South and South-East Asia. Countries with a 

Muslim majority are the most obvious target markets for Halal products. However, Muslims living within 

Western countries also present strong demand for Halal products that suit a convenience-oriented lifestyle, thus creating many opportunities for Canadian suppliers of Halal products. 

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