'Phenomenal growth' in sales of functional food

Sales of so-called functional foods are growing by some 20 per cent a year, according to Bord Bia, the Irish food board

Sales of so-called functional foods are growing by some 20 per cent a year, according to Bord Bia, the Irish food board. However, it points out that this "phenomenal growth" has to be put in context as it is starting from a very low base, these foods still being relatively new to the market.

Sales of probiotic yoghurts and drinks alone were worth about €46 million in the Republic in 2004, according to research carried out by UK-based market research company Leatherhead Food International. It also found that 8 per cent of Irish people consumed probiotic yoghurt daily.

Tara McCarthy, senior manager of Bord Bia's consumer foods division, says functional foods are classified under the health and wellbeing category. Other goods in this category, including diet products, are also selling well, she says, even if probiotic drinks or cholesterol-reducing spreads are getting more attention and being heavily advertised.

She says the focus of these functional foods is moving somewhat from gut health to cholesterol reduction and could move next to brain health.

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McCarthy says the science behind these products is "quite robust" and EU regulations are becoming stricter in terms of ensuring that any claims made are based on scientific evidence.

However, as with other categories such as organic, some people will not buy into the idea behind these foods. For example, some people will always prefer natural foods such as broccoli, "which have good functionality associated with them".

Stephen Bogan, senior strategic planner with McCann Erickson advertising agency, estimates the functional foods market in Ireland to be worth more than €100 million a year. In addition to probiotic drinks this also includes products such as margarine spreads that reduce cholesterol or milk with omega 3 or folic acid, and certain bars and cereals. In Europe, sales of functional foods are worth more than €1 billion a year, Bogan says.

The advantage to producers is that because these are higher value products, they can yield greater profits.

However, Bogan doubts whether most consumers believe these products actually work. In surveying consumers and talking to focus groups, he has found that many people find it difficult to accept the idea that by eating more of particular margarine products, they can lower their cholesterol, as they have been used to the principle that the more margarine you eat, the greater the damage you do to your health.

While some products are designed specifically to give an added nutritional benefit and result from new food technologies, he accepts that others may be "trying to jump on the functional bandwagon". For example, some products which always contain oats are now being advertised on the basis of new research findings on the benefits of eating oats.

He says a range of factors are helping to increase the popularity of these products: people are more health conscious; have more money; are more inclined to self-medicate; are demanding more of themselves; and there is an ageing population.

Frank Hayes, director of corporate affairs with Kerry Group, which introduced omega 3 milk to Ireland through its Dawn brand (pictured), says it accounts for "a small but growing" share of its milk sales. Hayes says that while people still like to "indulge" on occasions, the "primary focus" now is on products that can improve health. "All you have to do is to look at the retail shelves to see the focus on it," he says.