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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Junk Science

According to research firm Mintel, the market for functional foods jumped 42 percent, adjusted for inflation, between 2002 and 2007, driven in part by product introductions increasing tenfold during that time. American consumers are getting a crash course in what critics contend is the faux science of food marketing as they are bombarded by a dizzying range of food and beverages touting benefits from omega-3, probiotics, prebiotics, fiber and antioxidants. Some of the country's biggest marketers have seen their health benefits questioned, including Coca-Cola and Kraft with vitamin-enhanced drinks, Tropicana orange juice, Quaker Oats, Eggland's Best eggs and Sara Lee Whole Grain White Bread.

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