Take a walk through any large grocery store or specialty retailer, or visit an online food product website, and you will likely find a diverse selection of protein powders, energy drinks, power bars, probiotics, vitamin waters, and calcium-fortified beverages aimed at promoting bone health. These items are often fortified with nutrients, phytochemicals, botanicals, or dietary supplements like chewable calcium citrate with D3, and are collectively referred to in the industry as functional foods. Functional foods are characterized by their potential positive impact on health beyond basic nutrition, serving not only to fulfill daily nutrient needs but also to help lower the risk of disease and enhance overall well-being. Although the U.S. Food and Drug Administration (FDA) is responsible for regulating functional foods, it has yet to provide an official definition.
Terms such as “functional foods” and “nutraceuticals” are commonly used in the marketplace. As stated by the FDA, these products fall under its regulatory umbrella via the Federal Food, Drug, and Cosmetic Act, even if they are not explicitly defined in legal terms. Regardless, the demand for functional foods is on the rise, and many experts predict that this sector will experience significant growth in the near future. As consumers in the U.S. become increasingly health-conscious, they are seeking out natural ingredients and nutrient-rich foods and beverages. Companies entering the functional foods market are adapting to this trend by continuously launching new products.
Kara Nielsen, a food and beverage trend expert, noted in a recent Packaged Facts report that growing consumer awareness and interest in medicinal foods are propelling their popularity in the natural food and beverage sector. These foods, which incorporate functional ingredients derived from natural sources rather than laboratories, are becoming highly sought after. A report from Technavio projects that the global functional foods and beverages market will grow steadily, with a compound annual growth rate (CAGR) of nearly 8% from 2017 to 2021, while the U.S. market is expected to see a CAGR of 6.53% during the same period. This trend is driven by an aging population eager to maintain health, escalating medical expenses, and a heightened consumer awareness of the link between healthy eating and wellness.
Functional foods have transitioned from a niche market to a mainstream one, drawing interest from some of the largest food corporations. For instance, Campbell’s CEO Denise Morrison highlighted the company’s strategy to expand into rapidly growing categories like organic and functional foods through its acquisition of Pacific Foods for $700 million. Similarly, PepsiCo acquired probiotic beverage manufacturer KeVita last fall and launched its Tropicana Essentials Probiotics line earlier this year, marking a significant move to bring probiotics into the mainstream juice market. Additionally, General Mills’ venture capital arm led a $6.5 million Series D investment in March to support Farmhouse Culture, a startup focused on fermented and probiotic foods.
As research and development progresses, major players in the functional food sector are expected to introduce new products. They are also actively seeking acquisitions to enhance profitability and share prices, often looking towards smaller, agile startups for the next innovative breakthrough. The development and application of functional foods have historical roots, with Japan and Russia being pioneers in using these foods to aid digestion and improve performance. The first commercial implementation of a functional food in the U.S. may have occurred in 1924 when Morton Salt Company added iodine to its products at the government’s request, addressing iodine deficiency in the Great Lakes region, also known as the “goiter belt.”
Oatmeal has significantly raised public awareness about the potential benefits of functional foods. According to Carol Culhane, president of International Food Focus Ltd. in Toronto, oats contain beta-glucan, a soluble fiber that has been proven to lower low-density lipoprotein (LDL) cholesterol levels. The FDA approved the claim that beta-glucan can reduce serum cholesterol in 1997, marking a pivotal moment for functional foods. Although initial product applications had varying success, the industry has seen substantial improvements in marketing, packaging, and distribution strategies over the years. General Mills launched its Fiber One cereal in 1985, followed by Danone’s Activia probiotic yogurt in 1987, both of which remain successful today.
In the current market, various functional foods are available, but manufacturers must navigate the fine line of health claims to comply with Federal Trade Commission regulations, which require scientific backing for any health assertions. The FDA also scrutinizes health claims, making the approval process lengthy and costly. Companies must conduct thorough research and safety assessments to achieve Generally Recognized as Safe (GRAS) status for their functional food ingredients.
Consumer acceptance remains a crucial factor for the success of functional foods. Culhane emphasizes that long-term success relies on individual experiences that encourage lifestyle changes. For instance, while lycopene—a powerful antioxidant found in tomatoes and watermelons—can reduce prostate tumors, its effects are not immediate for individuals facing prostate issues in their 50s; they would need to start consuming it in their 20s. The challenge lies in encouraging young adults to adopt healthier eating habits early on.
Furthermore, not all functional foods deliver maximum benefits when consumed in typical serving sizes. For example, one would need to consume a quart of soy milk daily to achieve the cholesterol-lowering benefits of soy protein and about three cups of oatmeal to gain the benefits of beta-glucan. Currently, consumers can find buttery spreads like Lipton’s Take Control and Raisio Group’s Benecol, which contain plant stanol and sterol esters to help lower heart disease risk, as well as high-fiber breads such as Schwebel’s Roman Meal 100% Whole Wheat and Kellogg’s Kashi Soft-Baked Cookies.
Stanol and sterol compounds, naturally occurring in vegetables and cereals, inhibit the absorption of dietary cholesterol, thereby lowering total and LDL cholesterol levels in the bloodstream. These compounds are increasingly incorporated into functional foods, such as Minute Maid Premium Heartwise orange juice, which contains Cargill’s CoroWise plant sterols, and Joseph’s Bakery line of flatbreads, which features ADM’s CardioAid plant sterols. Additionally, researchers are working on extracting beta-glucan from mushrooms to boost immune health, producing fiber-rich inulin flour from chicory root, and investigating various beneficial nutrients from algae.
While algae-based food products can promote human health, challenges remain in quantifying their benefits and understanding how harvesting and processing methods affect their nutritional value. The emerging field of phycology, which studies algae, offers exciting opportunities for those interested in developing new functional food ingredients. Kristi Crowe-White, Ph.D., an associate nutrition professor and registered dietitian at the University of Alabama, remarked, “The future of functional foods is leaning towards a deeper understanding of the chemistry and composition of native or raw foods. We have identified about 20 well-integrated compounds, but there are many more to discover. This is a thrilling time to be involved in this field.”
In conclusion, as the market for functional foods continues to grow, consumers are increasingly turning towards options like chewable calcium citrate with D3, which can enhance their health and well-being, reflecting a broader trend towards natural, nutrient-rich diets.