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Market Analysis

Morlife operates in the Functional Food market that is described as “food and beverages that provide a health benefit beyond basic nutrition.”   They are often believed to enhance health and well-being (assist in weight-loss, reduce risk of disease), enhance performance (either physical/athletic performance or memory/cognitive functions), or help manage a chronic condition (such as heart disease, diabetes).

History

The first fortified food products resulted from public health endeavors for example vitamin-D enriched milk virtually eliminated rickets and iodine-fortified salt substantially decreased incidences of goiter.  However the movement of private companies creating “functional foods” began in Japan over 20 years ago. The market was developed to fulfill the need of consumers who appreciate the role of diet in their health, and seek to prevent the onset of chronic disease through the adoption of specific behaviors.

Market

As leading market research company Scientia Advise reports in 2006 the ‘functional foods’ market was recorded to be worth US$128 Billion in 2006 and has enjoyed constant growth ever since. It is forecasted to continue to grow at a compound rate of 7% and said to be worth US$195 Billion by 2012. The growth has been facilitated by the emergence of solid scientific reports into the benefits of functional foods, the convergence of consumer demographics, and the changing economics of health care and greater consumer awareness.

Changing demographics, in particular the aging baby boomer population, are helping to set the foundation for future growth. Healthcare trends, including pharmaceutical investment and research into diseases and chronic conditions that are rapidly gaining greater significance, are a further source for potential growth. The advance of nutritional science has been remarkable over the past few years; we are now seeing respected medical journals publishing articles substantiating the clinical efficiency of nutritional interventions that would have been viewed as skeptically a few years ago. The medical community increasingly regards functional foods as a powerful adjunct treatment modality, and the health care providers are seeing that functional foods can potentially reduce the costs of managing expensive chronic disorders.

Overview

  • Functional foods are classified as food and beverages that provide a health benefit beyond basic nutrition.
  • The first functional foods were developed in Japan
  • The growing market is due to; the aging population, health care trends, support from the medical and scientific research industries, cheaper alternative than medicine and other treatments
  • Functional Food market is estimated to be worth US$195 Billion by 2012
  • Functional Food market is continuing to grow at a compound rate of 7%
  • Many drivers behind consumer purchases of Functional Food are scientific facts and the media.
  • People are seeking natural ways to remove ill health form their lives and live longer, healthier lives.
  • People are focusing a lot more on general wellbeing and maintaining their health in order to prevent sickness and ill health, as opposed to waiting to getting an illness and then trying to cure it.