Brazil’s functional foods market broaches $4bn

By staff reporter

- Last updated on GMT

Related tags Percent Nutrition Euromonitor

Functional and fortified foods make up the biggest portion of the Brazilian health and wellness market, with growth of eight percent in 2007 and sales in excess of $4bn, according to Euromonitor.

When functional beverages are thrown into the equation, the figure rises above $5bn, with energy drinks starring and growing at 26 percent, Euromonitor said in a report that comes from its 32-nation Health & Wellness series.

Probiotic yogurt was the most dynamic food category, also growing at 26 per cent with

Dairy Partners Americas Brasil and Danone leading the way with the former notching sales of that accounted for 31 percent of fortified/functional packaged food and the latter, 11 percent.

Danone’s probiotic yogurt, Activia, was performing particularly strongly and responsible for driving the category, Euromonitor said.

Dairy dominates the sector, representing 59 percent of all functional food sales, itself expected to grow by five percent compound between 2007-2012.

“A key growth driver is the ageing population and thus a rising number of consumers with health concerns, related to weight or intestinal health, amongst others, which positively impacts sales of fortified/functional food, and in particular dairy products,”​ Euromonitor said.

Some sectors performed less well such as functional oils and fats which slid 12 percent as the price dropped out of the market.

Functional gum was another moderate performer, growing at only two percent.

“Functional gum continued to experience declining volume sales as this type of gum is not perceived by consumers as a product that helps to whiten the teeth,”​ the market analyst said.

“The restrictions regarding functional properties adopted by ANVISA (National Health Surveillance Agency), which requires manufacturers to prove the efficacy of their functional properties, helped to increase the suspicions of consumers.”

But overall, functional foods were highly regarded by large sections of the Brazilian population.

“Generally, fortified/functional food is perceived by health-conscious Brazilian consumers to be helpful in addressing specific health conditions such as high blood pressure, heart disease, high cholesterol, digestive health, women’s health, osteoporosis, stress, fatigue etc.”

Skin-friendly beauty foods were also highly popular, fortified with ingredients such as vitamin E, collagen, ceramide and hyaluronic acid.

In the beverage aisles, Kraft and Nestlé are the big two, accounting for more than 64 percent of cold and hot functional drinks in 2007.

Sales of fortified/functional beverages are expected to increase 36 percent in constant value terms over the 2007-2012 period.

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