Feb 1, 2010 12:00 PM

Future expansion could be stifled by increased regulatory scrutiny and growing consumer skepticism over unsubstantiated product claims

With their wallets pinched and their minds heavy with recessionary worries, Americans ditched dining out for eating at home last year — and choosing foods and beverages with health and wellness attributes remained a priority for many U.S. consumers. But value and, as always, taste were also highly prized in 2009, as people sought ways to stretch their dollars while meeting their families' nutritional needs and warding off the detrimental health effects associated with increased stress. All of these forces converged to keep U.S. functional food and beverage sales growing in 2009, but at a much slower pace than in previous years. According to Nutrition Business Journal research, U.S. consumer sales of functional foods and beverages inched up 2.7% to $37.4 million last year. This was off from 8% growth in 2008. A slight slowdown in new functional product launches, which spiked in 2008, and discontinuation of numerous lackluster functional offerings also contributed to last year's anemic sales expansion.

Still, all things considered, 2009 proved to be a relatively successful year for the functional category — which outpaced the 1.6% sales expansion achieved last year by the total $628 billion U.S. food and beverage industry. Despite the slower growth in 2009, the functional market is still filled with opportunity, noted Jeff Hilton, co-founder and partner of Integrated Marketing Group (IMG). “People want more control over their health, and these products help provide that control — so all indicators point to consumers continuing to embrace functional foods and beverages.”

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