Ingredients for health 2015

Ingredients for health 2015

January 2016

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Ingredients for health 2015

Ingredients for health 2015 ...................................................... 3

Antioxidants for health ............................................................. 3
Bone and joint health ............................................................... 4
Cancer: reducing risk ............................................................... 5
Cardiovascular health ............................................................... 6
Cognitive & mood health .......................................................... 7
Diabetic benefits...................................................................... 8
Digestive health ...................................................................... 9
Energy / sports performance .................................................... 10
Eye health ............................................................................. 11
Immunity enhancement .......................................................... 12
Inflammation ......................................................................... 13
Weight management ............................................................... 14
Weight loss ............................................................................ 15
General ingredients ................................................................ 16
Vegetarian products ................................................................ 17
Protein fortification ................................................................. 18
Organic products .................................................................... 19
Fairtrade ............................................................................... 20

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Ingredients for health 2015

Ingredients for health 2015

Antioxidants for health
After a period of product launch activity stabilization in 2011 and 2012,
antioxidant claims are back on the radar for food and beverage products,
with growth again evident in 2013 and 2014, according to tracked global
product launch activity by Innova Market Insights. Juice & juice drinks
continues to be the dominant sub-category for antioxidant claims,
accounting for 15% of global product launches in 2014, followed by tea
with 10%. Cereal and energy bars led in terms of food products with
antioxidant claims, with 6%, followed by snack nuts & seeds, with 4.5%.

The snack nuts & seeds market in particular, demonstrated significant

growth in regard to antioxidant claims, with a 47% increase recorded for
such product launch activity in 2014 from 2013, with continued growth
anticipated for 2015. North America is the leading region for antioxidant
claims, representing one third of antioxidant positioned product launch
activity tracked in 2014, closely followed by Asia with 25%. Product launch
activity with antioxidant claims in 2014 as a percentage of total product
launches tracked, is higher for North America at 2.5%, compared to only
1% globally.

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Ingredients for health 2015

Bone and joint health

Bone and joint health still remains very niche, with product launch activity
tracked by Innova Market Insights with either a bone health or joint health
claim representing under 1% of all global food and beverage launches in
2014. A more general bone health claim was used for the majority of
product launch activity with 97% of the total, compared to only 5% for
joint health, with a marginal amount of products carrying both claims.
While approximately half as prevalent as bone health claims in 2014,
added calcium is another claim used to convey bone health benefits,
relying on consumer awareness of the link between calcium and bone
health. Interestingly, the growing dairy & alternative drinks market was
the leading sub-category for added calcium claims in 2014, representing
just over 20% of product launches, followed by milk & milk drinks with
18%. Baby food led for bone health claims in 2014, representing just over
half of product launch activity tracked, followed by dairy with 23%, while
product launches with specific joint health claims were evenly spread
between the soft drinks (21%) and hot drinks (20%) categories.

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Ingredients for health 2015

Cancer: reducing risk

The terms “superfoods” and “superfruits” has been coined to convey foods
which have high phytonutrient content that may confer health benefits,
such as cancer risk reduction. There is no definitive list of superfoods, they
are just foods deemed highly nutritious for whatever reason; so marketing
has a big part to play in promoting fruit, vegetables, grains and seeds’
natural health attributes.

Analysis of new global tracked product launch activity by Innova Market

Insights revealed a 43% increase in product launches with a “superfood”
or “superfruit” claim in 2014 from 2013. Sports powders was the leading
market sub-category for “superfood” claims in 2014, with 16% of product
launch activity, followed by cereal & energy bars (13%) and breakfast
cereals (8%). “Superfruit” claims were most prevalent for the juice & juice
drinks (26%), sports powders (10%) and fruit (7%) sub-categories. Aside
from allergy free positionings, organic was the leading health positioning in
2014 for superfood products, accounting for 43% of product launches,
while antioxidant (33%) was the most prevalent health positioning for
superfruit product launches tracked.

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Ingredients for health 2015

Cardiovascular health
Global product launch activity positioned on a heart health platform
started to fall approximately five years ago, following years of consistent
growth, according to new product launch data tracked by Innova Market
Insights. Heart health claims peaked with a 1.4% share of all food and
drinks launches in 2010, but this has since decreased to a position where
they accounted for just 0.9% in the 12 months to the end of June 2015.
This increases to over 2.6% if launches featuring omega 3/DHA claims are
also included, whether or not they specifically refer to heart health. This
compares with 2% of products simply featuring low cholesterol claims.

North America and Europe continued to dominate activity for heart health
product launches, accounting for a combined 55% share of the total
recorded, with the US leading with just over a quarter, ahead of Western
Europe with just over 21%. Asia took third place, ahead of Australia/New
Zealand. In terms of types of product using heart health claims, the
market remains relatively fragmented, with cereals (breakfast cereals and
cereal bars) accounting for a leading 19%, ahead of meat, fish & eggs with
10%, dairy with 8%, bakery with 6% and soft drinks with 6%.

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Ingredients for health 2015

Cognitive & mood health

The lion’s share of brain health positioned product launch activity tracked
globally in 2014 by Innova Market Insights was found in the baby
formula/milk sub-category, whereby DHA is often incorporated for its brain
development attributes. This is despite rising concerns from seniors over
age-related complaints such as dementia and Alzheimer’s disease, whom
would benefit from products offering cognitive advantages. Baby formula
aside, manufacturers are preferring to target a wide range of consumers
for new product launches with a brain health positioning, due to the vast
array of benefits being claimed- for relaxation, for improved focus and for
stress reduction are some examples. Excluding the baby food category,
leading sub-categories in 2014 for brain health product launch activity
were tea with 1.9% of product launches, followed by milk & milk drinks
(1.8%) and breakfast cereals (1.7%). Botanicals are showing promise for
brain health claims. For example, growth has been reported for US product
launches from 2013 to 2014, containing ginger (+19%), gingko biloba
(+18%), turmeric (+18%), ginseng (+13%) and cinnamon (+13%).

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Ingredients for health 2015

Diabetic benefits
The diabetes epidemic represents a significant opportunity for food
manufacturers, however growth has been somewhat sporadic for new
product launches with a diabetic positioning, according to global product
launch data tracked by Innova Market Insights. The leading market sub-
categories in 2014 with a diabetic positioning were sugar & sweeteners
accounting for 15% of product launches tracked, followed by chocolate
blocks (7.%) and sweet biscuits/cookies (7%).

Manufacturers are tending to broaden product appeal to those more

generally interested in healthy and “cleaner” eating, rather than targeting
diabetics specifically. For example, global product launch activity tracked
with either a sugar free, no added sugar or low sugar positioning all
increased in 2014 from 2013, with growth of +6%, +5% and +26%
respectively. Also, products promoting their glycemic index (GI) on-pack is
another great aid not only for diabetics, but for all carb-conscious
consumers. Global low GI positioned product launch activity surged in
2014, with a +56% increase from that of 2013, indicating some future
momentum. Leading sub-categories for low GI activity in 2014 were sugar
& sweeteners (19%), cereal & energy bars (13%) and breakfast cereals
(7%). North America represented just over one third of all low GI product
launches tracked, followed by West Europe (27%) and Asia (15%). On a
country level, Australia and the UK are the next most prevalent countries
for Low GI product launch activity after the US, each accounting for 9% of
product launches.

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Ingredients for health 2015

Digestive health
Analysis of global product launch activity tracked by Innova Market
Insights in 2014 revealed digestive/gut health to be the most popular
active health positioning, accounting for one third of all active health
product launches. Although there has been regulatory issues concerning
probiotic health claims [particularly in the European Union] and digestive
health benefits, dairy products continue to dominate, representing 46% of
global product launches with a digestive/gut health positioning in 2014,
followed by baby food with 30% and soft drinks with 5%. Fiber content is
an associated area of interest for digestive health, although products
positioned on a fiber platform may or may not have specific digestive/gut
health claims. High-fiber, source-of-fiber or added-fiber claims were used
on nearly 4% of global food and beverage launches recorded by Innova
Market Insights in the 12 months to the end of June 2015, rising to 5% in
North America and over 9% in Australia/New Zealand, but falling to about
2% in Asia. Cereals dominated, with breakfast cereals (17%), cereal &
energy bars (9%) and bread & bread products (8%) leading product
launch activity. Botanicals are another ingredient source receiving
attention for digestive health benefits. For example, growth was evident in
2014 from 2013 for US products containing ginger (+51%), cinnamon
(+18%), turmeric (+16%), milk thistle (+16%) and fennel (+13%).

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Ingredients for health 2015

Energy/sports performance
It is well accepted that many consumers are working longer and sleeping
less and are looking to food and beverages for an energy boost. According
to global new product launch data by Innova Market Insights, products
positioned on an energy/alertness platform continue to rise, with a 14%
increase in tracked product launch activity recorded in 2014 from 2013.
The leading sub-categories for energy positioned product launch activity in
2014 were energy drinks (19%), cereal & energy bars (12%) and
breakfast cereals (8%). The evolvement of energy drinks into the
mainstream, in particular, has been a significant driver for growth. The use
of natural flavors, zero sugar formulations, ongoing activity in organic lines
and focus on additional benefits such as hydration, endurance, mental
focus and protein content, has broadened the appeal of energy drinks, and
in doing so, increased consumption occasions. Another noteworthy area of
growing new product development on a healthy energy platform, is
snacks. Energy balls and other interesting formats and snack nuts & seeds
products are leveraging their inherent energy attributes for energy claims.

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Eye health
New product innovation specifically for eye health continues to remain
niche worldwide, however there was a 21% increase in global product
launch activity tracked by Innova Market Insights with an eye health
positioning in 2014 from 2013. This growth can be mainly attributed to
eye health claims used for the baby food category, which represented
nearly three quarters of all eye health positioned product launch activity in
2014. Juice & juice drinks was the next best leading sub-category for
product launch activity with 5.4%, followed by milk & milk drinks (4.6%).

The leading ingredients utilized offering eye health benefits include vitamin
A, B vitamins, zinc, vitamin E, lutein and beta-carotene. Lutein and
zeaxanthin feature strongly as ingredients within the eye health
supplements market, although usually in combination with other beneficial
components, such as antioxidant vitamins A, C and E, B vitamins such as
B6 and B12, blueberry extracts as a source of anthocyanins, omega 3 fatty
acids and minerals such as zinc and selenium.

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Ingredients for health 2015

Immunity enhancement
According to global new product launch data tracked by Innova Market
Insights, products positioned on an immunity platform are demonstrating
good growth, with a +9% increase in product launches with an immune
health claim evident in 2014 from 2013. While baby food is the leading
market category for immune health positioned product launch activity,
immune health benefits can be found in a wide array of food and
beverages, providing consumers with plenty of choice for an immune
health boost. Key ingredients for immune enhancement include a range of
probiotic strains and blends, vitamins, particularly the so-called ACE
vitamins, and zinc, although many of the products using these do not
make specific claims, relying on consumer association of the product
ingredients with these benefits. The leading sub-categories in 2014 for
immune health positioned product launch activity were baby formula/milk
(35%), juice & juice drinks (8%), baby cereals & biscuits (6%) and tea
(5%). Botanicals making an impact for immune health claims in the US
market with growth in applications in 2014 from 2013, include ginger
(+39%), turmeric (+22%), cinnamon (+13%), ginseng (+10%) and
annatto (+8%).

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Ingredients for health 2015

Inflammation
There are numerous studies emerging linking obesity in particular, with
cellular inflammation. Inflammation has become a bit of a buzzword and
consequently, it is being used in a very general fashion for claims purposes
related to a wide range of ingredients, according to global new product
analysis by Innova Market Insights. New global product launches tracked
using the word inflammation surged in 2013, increasing by +50% from
2012, and have since stabilized. Excluding sports products, whereby
inflammation in this case relates more to muscle exertion and fatigue, the
leading sub-categories for inflammation claims in 2014 were juice & juice
drinks with 12% of product launch activity, followed by tea (9%) and iced
tea (5%). Ingredients associated with reducing inflammation include
flaxseed, tannins, ginger, chia, apple cider vinegar, aloe vera and
wheatgrass.

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Ingredients for health 2015

Weight management
Weight management positioned product launch activity is back in vogue
after a period of static growth. Global product launch activity tracked by
Innova Market Insights with a weight management positioning increased
by +14% in 2014 from 2013, with product launch activity in the first 9
months of 2015, already exceeding that of the whole of 2014. The market
sub-categories with the most new product launches with a weight
management positioning in 2014 were cereal & energy bars (12%), tea
(8%), breakfast cereals (7%), sports protein based RTD (7%) and sport
bars (4%). The most popular ingredients incorporated for weight
management claims in 2014 were fiber, green tea catechins, oligofructose,
chromium and L-carnitine. Related to weight management, sugar-related
claims are gaining momentum, with no added sugar being the most
popular claim. Global product launch activity tracked with either a sugar
free, no added sugar or low sugar positioning all increased in 2014 from
2013, with growth of 5.7%, 4.7% and 25.8% respectively. Both low
calorie and low fat product launches tracked in 2014 also exceeded the
number of launches tracked in previous years.

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Weight loss
Beyond weight management as a platform, products that are primarily for
weight loss are another key target market for supplements. Nearly 13% of
global 2014 supplement launches had a weight management positioning.
Dietary supplements are playing an increasing role and as a result demand
for weight loss ingredients is probably at an all-time high, resulting in a
growing number of new ingredients and blends emerging. Ingredients vary
from the relatively well-established, such as whey protein and green tea,
to the more unusual, more fashionable, but often less well-researched,
such as raspberry ketones, African mango seed, Garcinia Cambogia, bitter
orange (citrus aurantium), green coffee extract, forskolin (from Coleus
forskolii) and white mulberry (Morus alba). There has been considerable
controversy about the safety and efficacy of many of these products,
which has caused some problems in the market as a whole.

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General ingredients
The response to consumer interest in naturalness and purity appears to be
continuing, despite some adverse public debate about the lack of definition
of the term “natural.” Over one-fifth of food and drink launches recorded
by Innova Market Insights in 2013 were positioned as one or more of
“natural” or “additive- and preservative-free” or “organic”, reflecting
ongoing interest in natural ingredients and clean-labelling. Interest in
“free-from” products also appears to be increasing, with significant rises in
numbers for gluten-free and lactose-free lines in 2013. The rise in GMO-
free claims is also continuing, although on a smaller scale, as they
currently still account for 2.4% of total launch activity worldwide, although
rising higher in Eastern Europe and North America. In terms of products
carrying GMO-free claims, dairy, baby food and bakery have the largest
number of launches. The next playing field is likely to be GMO foods in the
US, even though mandatory labeling has so far narrowly missed passing
into law in most states. Consumers are more aware of what’s inside the
food they eat and many are demanding transparency on whether their
prepared foods contain GMO ingredients.

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Vegetarian products
The ongoing concern for future sustainability of the global food chain and
ingredient source transparency is having far reaching consequences for
food manufacturers and consumers alike. One area of new product
development to benefit from a continued focus on sustainability and health
in general is vegetarian foods. Innova Market Insights revealed a 22%
increase in global product launches tracked with a vegetarian positioning
from (2014 vs. 2013).

Vegetables are increasingly shifting to the center of the plate, with world
renowned chefs showcasing vegetables on their menus, exposing their
versatility and unique flavors and textures. One vegetable on the rise is
cauliflower, with a 22% increase reported in global product launch activity
tracked containing cauliflower (2014 vs. 2013). This renewed interest in
vegetables should inspire and further drive innovation by food
manufacturers in producing more exciting and tasty meat substitutes,
vegetarian ready meals and meal kits for example.

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Protein fortification
Protein content is an up-and-coming area in the food and drinks market,
with Innova Market Insights reporting a 31% increase in global product
launches with a high/source of protein claim (2014 vs. 2013). Another
area that is well established in the EU, but newer to other markets such as
the US, is the “clean label” trend. Over 20% of US products tracked in
2014 featured a clean label positioning, up from 17% in 2013. Innova
Market Insights analysts report that 28% of US consumers claim that
clean label is a factor that influences their purchasing decision for food &
beverage products. This has led to trending ingredients that can be
marketed on a clean label platform. For example, significant recent rises
have been reported in the use of natural sweeteners such as stevia and
monk fruit. Natural colors, such as those based on beetroot, blackcurrant
and black carrot are also enjoying strong growth in new products.

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Organic products
With growing awareness of health and the environment by consumers, the
ambiguity surrounding what exactly constitutes “natural” and the drive for
cleaner labels, the global organic market is in a good position to capitalize.
In addition, a growing band of consumers are being influenced by cleaner
eating diet trends and may well gravitate towards organic while also
eliminating all junk food, processed food, sugar and food additives from
their diets.

Organic food choices are growing, with 7.4% of total global product
launches tracked in 2014 by Innova Market Insights, having an organic
positioning. This is a significant increase from 5.8% tracked in 2013. The
leading market sub-categories for 2014 “organic” launches were: juice &
juice drinks (6.8%), baby meals (6.4%), tea (6%) and chocolate (4.6%).
Product launch activity with a “natural” positioning on the other hand, has
stagnated, representing 6.5% of new products tracked for the last three
years.

There is considerable variation among regions in terms for products

carrying this claim. Unsurprisingly, West Europe was responsible for 48%
share of organic product launch activity, followed by North America (23%)
and Asia (17%), with the remaining regions each all having under 5%
share.

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Fairtrade
Global new product development positioned on an ethical platform
continues to surge, with Innova Market Insights reporting a 59% increase
in new products with animal or human friendly style claims (2014 vs.
2013). Consumers are now embracing all things ethical and the fairtrade
movement could be considered to be the main catalyst for the evolvement
of ethically positioned product launch activity. The growth in new global
fairtrade product launch activity has been phenomenal, with a 26%
increase in products with fairtrade claims reported (2014 vs. 2013).

Although chocolate was the market category by which the fairtrade

concept initially came into force, a diverse range of products are now
available with fairtrade certification. In 2014, chocolate accounted for
almost 30% of fairtrade product launches tracked, followed by tea (10%)
and coffee (9%). There was with significant growth was evident for the
iced tea, juice & juice drinks, ice cream and sweet biscuits/cookies sub-
categories. With ongoing development of markets for fairtrade ingredients,
the future outlook remains strong.

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