Overview

As defined by the International Food Information Council, the term “functional foods” refers to foods that provide health benefits beyond basic nutrition. The concept of functional foods is not entirely new, although it has evolved over the years. In the early 1900s, U.S. food manufacturers began adding iodine to salt in an effort to prevent goiter.

The three different types of functional foods are those products that are inherently healthy, those that add a bioactive compound to provide a health benefit and engineered foods that deliver a desired benefit. For example, scientific data has verified the health benefits of pure cranberry juice, which naturally contains the bioactive compound proanthocyanidins, and of pure grape juice, which naturally contains the bioactive compound resveratrol. Certain brands of orange juice, on the other hand, have been fortified with added calcium, known to promote healthy bones and to lower high blood pressure. Engineered functional foods, like energy drinks and sports snacks, are scientifically formulated to provide a desired health benefit.

In the United States, the beverage market has led the functional foods category for some time. The biggest sector within beverages is energy drinks, which dominate the market. After beverages, cereal products are the next biggest category, with whole grain and oat content being emphasized and heart health claims being made. Soy products are the next biggest category. Together the three categories make up 85 percent of the U.S. market.

Regulation
The Federal Trade Commission (FTC) and the U.S. Food and Drug Administration (FDA) share jurisdiction over foods, drugs, dietary supplements and other health-related products. The FTC has primary responsibility to oversee the advertising of food and over-the-counter drugs, while the FDA regulates the labeling of these products. Neither agency uses the term functional foods.

The FDA and the FTC have recently stepped up their oversight of functional foods. The FDA issued warning letters to 17 food companies earlier this year over various health claims and is now requiring pre-approval for certain claims. The FTC recently settled class-action lawsuits with Dannon, Kellogg’s and Nestlé over health claims. In its settlement with Nestlé, the FTC suggested the company conduct a minimum of two clinical human trials.

U.S. Market
Leatherhead Food International, a United Kingdom (UK)-based organization, placed the value of U.S. functional food sales at $7.1 billion in 2009. The organization predicted the U.S. market could reach $9.1 billion by 2014. Leatherhead Food International, in its 2011 report, said global sales of functional foods in 2010 reached $24 billion.

Source

Functional Foods Market to Grow, Nutritional Outlook, 2011.

Other Links

• Application of Biotechnology for Functional Foods, Pew Initiative on Food and Biotechnology, 2007 - This report looks at the potential to develop functional foods through the application of modern biotechnology. The first section describes some recent scientific advances that could lead to functional foods on grocery store shelves, and the second section analyzes the legal authorities that could govern the use of biotechnology-derived functional foods.
• Background on Functional Foods, International Food Information Council Foundation. Written for consumers, this online article provides an overview of functional foods.
• Consumers Attitudes About Nutrition, United Soybean Board, 2010 - In their annual survey of consumer attitudes toward nutrition, the board found that American consumers continue to perceive soy as heart healthy. Trans fat remained a prominent concern, and dietary fiber was a new concern.
• Expert Report on Functional Foods: Opportunities and Challenges, Institute of Food Technologists, 2005.
• Facts about “Functional Foods," American Council on Science and Health, 2002.
• Focus on: Functional Foods, FoodProcessing.com - Food, in general, is not being consumed as a cure for health issues.
• Functional Foods?, American Council on Science and Health, 2004.
• Functional Foods and Nutraceuticals, Agriculture and AgriFood Canada, Ottawa, Ontario.
• Functional Foods/Foods For Health Consumer Trending Survey - Executive Summary, International Food Information Council Foundation, 2009.
• Functional Foods: Their Role in Disease Prevention and Health Promotion, Institute of Food Technologists, linked on NutriWatch, 1998 - This article defines functional food and gives examples from plant and animal sources.
• Healthful Foods Directory, Institute of Food Technologists - This online guide product and contact information for 200 companies supplying ingredients within 27 categories.
• Key Trends in Functional Food Products, Food Product Design, 2010.
• NutraIngredients.com - This commercial site carries breaking news on nutraceuticals and supplements.
• Top Functional Ingredients in Kids’ Foods and Drinks, Decision News Media, 2010 - According to a new report, vitamin D, calcium and iron top the list of nutrients used in fortified kids’ foods around the world.
• What are Functional Foods and Nutraceuticals?, Agriculture and Agri-Food Canada, 2009.
   

Links checked December 2011.