Market Updates

Full Potential of Energy Shots Still Untapped

This year will see energy shots continuing their seemingly inexorable rise as companies exploit as yet untapped opportunities, according to a new report on the market for functional and healthy food and beverage products.

Writing in “10 Key Trends in Food, Nutrition & Health 2011,” author Julian Mellentin says that 2011 promises to be another “year of the energy shot,” adding: “The astonishingly rapid success of energy shots—a market which has grown in the U.S. from zero to over $1 billion in retail sales in six years—reflects the extent to which there are huge areas of untapped opportunities in products for energy.

“There are opportunities to create new brands, new segments and new categories through strategies focusing on groups of consumers who aren’t served by the energy drink brands currently available; new ingredients with a higher ‘natural and healthy’ score than found in the current energy drinks; and new carriers—something other than caffeinated beverages—with better health credentials, such as dairy and fruit juices.”

Energy is one of 10 Key Trends for 2011 highlighted in the report, which also predicts a big year for digestive health, products containing fruit and weight management.

In addition, the report identifies eight “Micro-Trends” that will shape the functional food and beverage market in a smaller way. Among these is protein, which Mr. Mellentin said presents opportunities in the fields of weight management and muscle wasting in the elderly.

He writes: “The most health-conscious consumers are becoming more aware of the benefits of protein in the diet, while producers of protein, and in particular the dairy industry with its huge annual output of whey proteins, are working hard to find ways to take protein out of the body-builder and elite athlete niche and into wider markets.”

However, he added: “The industry has not yet found an executable and successful product and marketing strategy—a key factor in keeping protein (for now) as a Micro-Trend.”

Another Micro-Trend for 2011 is the rise of vitamin D. “Vitamin D is coming into an ever-stronger position—in short supply in the diet and (in the winter months in particular) not available to many people from sunlight.

“At the same time science is growing in support of its benefits. Researchers have posited benefits from vitamin D in many areas, including heart disease, immune function, depression, diabetes, neuromuscular function and osteoarthritis—not to mention its well-established benefits in conjunction with calcium in supporting bone density.”

A further Micro-Trend for 2011 is the “Reinvention of Dairy.” Mr. Mellentin argued that despite being criticized in the past for its high saturated fat content, experts and consumers are increasingly acknowledging milk’s significant health benefits.

“New science suggests that dairy—particularly saturated fat in dairy—has been over-vilified and it is now set to develop an (even) more favourable ‘health halo.’ Evidence is emerging that it may even benefit heart health. This changing perception will gradually lead to more marketing and product development opportunities.”

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