Functional Food Growth Slows

To some extent, the numbers reflect category maturation after an extended period of accelerated growth. Sales of the largest functional categories grew at a compound annual rate of 8% between 2003 and 2008 in retail outlets tracked by Information Resources Inc. (IRI), points out PF's "Functional Foods and Beverages in the U.S."

The slowdown also reflects consumers' reduced ability to afford non-essential and more costly specialty items, and the impact on specialty item sales of consumers' continuing shift to shopping at Walmart and other discount retailers.

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