Global trends in functional dairy foods
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1 Global trends in functional dairy foods Ranjan Sharma Presentation to Korean Dairy Industry visitors June
2 Presentation outlines Trends and drivers for functional foods Functional food Regulations Trends and innovations in functional dairy foods 2
3 Functional foods Foods and ingredients that are safe to eat and have proven health benefits, in addition to their normal nutritional benefits Whole food, components/ingredients of food Natural or formulated food Focus is on preventative health benefits rather than cure 3
4 Global functional foods & beverage sales 2003 US $, billion Global functional foods & beverage sales, Japan USA UK Germany Italy France Brazil Euromonitor
5 Global functional foods & beverage sales 2003 Global functional foods by functionality % 2% Sport & enery 10% 18% 42% Added vitamins, minerals or supplements Promotes intestinal health or digestion Added calcium Lowers cholesterol 19% Other Euromonitor
6 Functional foods and beverages global sales US $ billion Global functional foods & beverage sales, 2003 Non-dairy beverages Dairy products Bakery & snacks Sales 2003 Growth % (CAGR ) Euromonitor
7 Functional dairy products global market share 2003 Euromonitor
8 US functional foods Category Size (US $ billions) Sports & energy drinks Breads & grains Snacks & bars Juices Dairy & dairy alternatives Tea & coffee drinks All other Total Growth rate (% vs 2002) 8 Nutrition Business Journal
9 Drivers for functional foods Population demographics Rising obesity - the health condition/disease of the millennium Increased incidences of noncommunicable, chronic diseases Unhealthy kids Consumer awareness of food-health relationships 9
10 Population demographics Population demographics Ageing population Increasing life expectancy Increasing population of developing countries and shrinking/changing population of developed countries Growing affluence in developing world and increased affordability 10
11 Population trends - Australia Australia - population by age groups (2005) years years years years Australia - population by age groups (2050) years years years years US Census Bureau
12 Population trends - China China - population by age groups (2005) years years years 65+ years 2005 China - population by age groups (2050) years years years 65+ years US Census Bureau
13 Population trends - Japan Japan - population by age groups (2005) years years years 65+ years 2005 Japan - population by age groups (2050) years years years 65+ years US Census Bureau
14 Population trends - United States US - population by age groups (2005) years years years 65+ years 2005 US - population by age groups (2050) years years years 65+ years US Census Bureau
15 Population trends - Korea Korea - population by age groups (2005) years years years 65+ years Korea - population by age groups (2050) 0-9 years years years 65+ years
16 Life expectancy at birth Major area World More developed regions Less developed regions Least developed countries Other less developed countries Africa Asia Europe Latin America & Caribbean North America Oceania UN(2005) World Population Prospects The 2004 Revision, UN, New York
17 % Obese Obesity the millennium disease Obesity Worldwide Leastdeveloped countries Developing countries Emerging economies Developed economies Newsweek,
18 Obesity a major factor in lifestyle diseases Diabetes 80% Cancer 40% of uterine cancer 25% of kidney cancer 10% of breast 10% of colon cancer Heart health 21% of heart diseases 18 Newsweek August 2003
19 Diseases causing global deaths Projected global deaths by cause, 2005 (millions) Diabetes Chronic respiratory diseases Cancer Cardio vascular diseases Malaria Tuberculosis HIV/AIDS Total deaths 58 million Deaths (millions) WHO
20 Diseases causing global deaths Projected global deaths by cause, 2005 (millions) Diabetes Chronic respiratory diseases Chronic diseases Cancer Cardio vascular diseases Malaria Tuberculosis HIV/AIDS Total deaths 58 million Deaths (millions) WHO
21 Diseases causing global deaths Projected main causes of death % 7% 2% 9% 30% WHO, % 9% Cardiovascular diseases Cancer Chronic respiratory diseases Diabetes Other chronic diseases Communicable diseases, maternal & perinatal conditions & nutritional deficiencies Injuries 21
22 US$ (billion) Foregone income to deaths by chronic diseases Foregone income due to diseases ( ) Brazil Canada China India Russia UK 22 WHO 2005
23 Unhealthy kids US data High blood pressure 3 fold increase in last 10 years Cholesterol 10% of children with 200 mg/dl Metabolic syndrome 1 million kids Overweight 30% kids AHA recommendations Begin monitoring blood pressure at age 3 Begin monitoring cholesterol at age 8 if there is a family history 23 Sloan, 2006 (FT April 2006)
24 Australian health 60% of adults and 25% of children are overweight or obese 25% of adults have diabetes or impaired glucose metabolism 3.7 million have heart diseases 51% of adults have high cholesterol 24
25 Functional foods - top Health Claims opportunities (US) Which benefits present the greatest opportunity? Cardiovascular Health Natural Ingredients Weight Loss Cholesterol Reduction 50% 45% 44% 42% Organic Ingredients Digestive Health Energy 35% 32% 31% Source: 2004 Prepared Foods Functional Foods Trends Survey of 198 food developers/marketers 25
26 Consumer research consumer would use food to prevent disease/health condition Disease/health condition % Obesity 76 High cholesterol 67 Blood sugar imbalance 67 Heart disease 66 Diabetes 64 Lack of energy 58 Osteoporosis 48 Vision problems 38 Arthritis NMI, 2005 (FFN Jan 2006)
27 Food regulations and health claims US and Japan leading the way EU, Canada and Australia/New Zealand developing frameworks Types of claims Nutrient claims Structure-function claims Diseases-specific claims 27
28 Health claim regulations selected countries Health claims making references to diseases are specifically prohibited Australia, Austria, Belgium, Brunei Darussalam, Costa Rica, Denmark, Ecuador, Finland, France, Germany, Greece, Honduras, Israel, Italy, Japan, Luxembourg, Lithuania, Malaysia, Morocco, Netherlands, New Zealand, Nigeria Specified disease risk-reduction claims are permitted Brazil, Canada, China, Indonesia, Philippines, Sweden, United States Hawkes, 2004 (WHO) 28
29 Health claim regulations selected countries Nutrient function and/or other function claims are permitted Brazil, Canada, China, Belgium, Denmark, Finland, France, Germany, Greece, India, Italy, Japan, Malaysia, Poland, Netherlands, Republic of Korea, Spain, Singapore, Sweden, Thailand, United Kingdom, United States, Vietnam Specific framework to permit product-specific health claims Japan, Netherlands, Sweden Hawkes, 2004 (WHO) 29
30 US Food label claims Health claims Nutrient claims Structure-function claims The responsibility rests with manufacturer, FDA or Federal Trade Commission (for advertising) 30
31 Health claims - US Health claims meeting significant scientific agreement (SSA) Describe a relationship between a food, food component, or dietary supplement ingredient, and reducing risk of a disease or health-related condition, e.g. "diets high in calcium may reduce the risk of osteoporosis" Qualified health claims When there is emerging evidence for a relationship between a food, food component, or dietary supplement and reduced risk of a disease or health-related condition, and label claims carry a FDA qualification statement, e.g. supportive but not conclusive research shows that consumption of EPA and DHA omega-3 fatty acids may reduce the risk of coronary heart disease 31
32 Nutrient content claims - US Describe the level of a nutrient or dietary substance in the product, using terms such as free, high, and low, or they compare the level of a nutrient in a food to that of another food, using terms such as more, reduced, and lite 32
33 Structure-function claims - US Describe the role of a nutrient or dietary ingredient intended to affect normal structure or function in humans, for example, "calcium builds strong bones Nutrient or dietary ingredient acts to maintain such structure or function, for example, "fiber maintains bowel regularity," or "antioxidants maintain cell integrity" 33
34 Approved health claims - US 34 Food/ingredient Disease 1 Calcium Osteoporosis 21 CFR Dietary lipids Cancer 21 CFR Sodium Hypertension 21 CFR Saturated fat & cholesterol Coronary heart disease 21 CFR Fibre containing grains, fruits & vegetables 6 Fruits & vegetables with fibre particularly soluble fibre Cancer 21 CFR Coronary heart disease 21 CFR Fruits & vegetable Cancer 21 CFR Folate Neural tube defect 21 CFR Non-cariogenic sweetner Dental caries 21 CFR Soluble fibre from cerain foods Coronary heart disease 21 CFR Soy protein Coronary heart disease 21 CFR Stanols/sterols Coronary heart disease 21 CFR
35 Japan 1991 Japan, the first country to regulate functional foods under FOSHU Under FOSHU, foods are defined as foods in the case of which specified effects contributing to maintain health can be expected based on the available data concerning the relationship between the foods/foods contents and health, as well as foods with permitted labelling which indicates the consumer can expect certain health effects upon intake of these particular foods 2001 Dietary supplements included under FOSHU 35
36 Japan Foods for infants Foods for pregnant women Foods for Special Dietary Uses (Regulated under the Health Promotion Law) Foods for medical purposes Foods for Specified Health Uses (FOSHU) Foods for the elderly 36
37 Foods for Specified Health Uses (FOSHU) 371 Foods Approved as of September 1, 2003 Health Benefit Claims Functional Ingredients FOSHU Share Helps maintain good gastrointestinal condition Oligosaccharides, Lactobacillus, Bifidobacterium, Dietary Fiber 190 product s 51 % Good for those who have high serum cholesterol / triglycerides Soy Protein, Peptides, Dietary Fiber, Diacylglycerol, Plant Sterol / Stanol (Esters) % Good for those who have high blood pressure Peptides, Glucosides 28 8 % Helps improve absorption of calcium (minerals) Good for those who have high blood glucose Helps maintain strong and healthy teeth 37 CPP, CCM, Soy Isoflavonoids, Oligosaccharides, MBP, Heme Iron Dietary Fiber, Albumin, Polyphenols, L-Arabinose Xylitol, Polyols, Tea Polyphenols, CPP-ACP 23 6 % % 26 7 %
38 Health claims in Australia/New Zealand Food Standards Australia new Zealand (FSANZ) A joint body responsible for food regulations and health claims in Australia and New Zealand Currently allowed label claims Certain nutrient claims allowed, e.g. this food is high in fibre Currently, no health claims are allowed except a benefits claims on maternal consumption of folate and prevention of neural tube defect in a new-born 38
39 Australia/New Zealand - proposed health claims framework Increasing degree of regulation General level claims Content claims General level health claims High level claims Absolute claims (e.g. low fat ) Comparative claims (e.g. reduced fat ) Function claims Enhanced function claims Biomarker claims Risk reduction claims 39 FSANZ, 2006
40 40 Trends in Functional dairy products
41 Functional dairy products 41 Fortified Milk beverages Minerals (Calcium, Magnesium, Iron) Omega-3 fatty acids Conjugated linoleic acids (CLAs) Phytosterol Lactoferrin Peptides Milk rich in melatonin Probiotic yoghurt & other dairy products
42 42 Fortified milk - calcium
43 Fortified milk Mg & Iron Mg (Candia, Fr) Mg (Lactalis, Fr) Fe 43 Fe (Meiji Love)
44 Fortified milk - Omega 3 fatty acids Candia, France Natrel, Canada Nestle, Malaysia PB Foods, Australia 44
45 Fortified milk - Omega 3 fatty acids (fresh milk) Dawn, Ireland 45 Neilson, Canada
46 Milk with CPP and IgG CPP and IgG rich milk (Stolle, Japan) 46
47 Fortified milk Conjugated Linoleic Acid (CLA) NaturLinea, Spain 47
48 Fortified milk phytosterol and peptides Phytosterol (Unilever) Peptides (Valio) 48
49 Melatonin rich milk UK Finland UK 49
50 Trends in yoghurt drinks Probiotic Yoghurt smoothie With fruit juice Lactoferrin Plant extracts Antioxidants Fibre Peptides 50
51 Probiotic drinking yoghurt revolution 51
52 52 Source:
53 Probiotic drinking yoghurt National Foods, Australia Danone Neo Immune (Russia) Emmi, Italy 53
54 Activate (probiotic drink with Bifidobacteria BBiT, Meadow Fresh (NZ Foods), NZ Bactive, probiotic with Danisco Howaru, Bakoma, Poland 54
55 Yogurt with phytosterol With phystosterol (Valio) Benecol (Valio) Phytosterol (Emmi) Flora Pro-Activ (Unilever, UK) 55
56 Yogurt with omega 3 fatty acids Yogurt with fish oil, Omega Farm, US Pro Heart (Jalna, Australia) Omega 3 and blueberry Probiotic buffalo yogurt with omega 3 (Woodstock,US) (using Ocean Nutrition Omega 3 Fish oil) 56
57 Yogurt drinks with plant extracts Lecithin Yoghurt drink (Alpenmilch Saltzberg) Bonne Nuit with plant Extracts (Novandie, Fr) Aloe Vera (Emmi) 57
58 Innovations in drinking yoghurt With Mg (Danone, Belgium) With green tea (Morinaga, Japan) 58
59 Yogurt with lactoferrin With L.casei and Lactoferrin (Kyodo Milk) With lactoferrin (Morinaga) 59
60 Innovations in drinking yogurt 60 With protein, Vit. & minerals (Glanbia, Ireland) With protein, Fibre, vit & minerals (General Mills, USA)
61 Yogurt powder Yokit yogurt & smoothie powder (USA) Add water and eat or drink with yogurt cultures and prebiotics 61
62 FOSHU approved yogurt Yakult Pretio (FOSHU approved) A fermented milk drink recommended for people with High blood pressure 62
63 Probiotic butter Yogurt butter (Migros Swiss) Probiotic butter (Cuinneog Farm, Ireland) 63
64 Infant formulae Probiotic infant formula with Bifidus BL (Nestle, Australia) Milk-based Infant Formula with DHA & ARA (PBM Products) 64
65 Probiotic frozen yogurt/ice cream/dessert UniSlim (Silver Pail Dairy, Ireland (BB-12 (bifidus) and Inulin) Godhalsa (Sia Glass Sweden (L. plantarum 299v) 65
66 Cheeses Pro LA5, Germany (probiotic cheese slices, L. acidophilus) with omega 3 Cheese with omega 3 (fish oil) (Omega Farm, US) 66
67 Future trends Health and wellness continue to dominate development of functional dairy products Product taste, presentation, convenience remain top targets Individualised functional foods Products targeting age (kids and elderly), obesity and gender 67
68 OzScientific Food Research & Innovation Dairy research & innovation Business direction & market intelligence, Product/ingredient development (functional foods, nutraceutical & bioactive ingredients), Scientific & IP literature review Please contact Ranjan Sharma on or Visit 68
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