The functional food industry is growing steadily worldwide.

Innovative products are

being launched continuously and competition is fierce. Researchers agree that the
market is growing at an annual rate of 8-14%, but the exact size of markets for
functional foods is difficult to measure. Depending on the source of data and
definition of this category of products, the global market could range from US$7 to
US$167 billion (Market Research, 2004). Market researchers are frequently vague
about the criteria used to define product ranges and the methodology used to
create their market numbers for functional foods, which is confusing to supply chain
participants. fThe functional food industry is resource-intensive, both in terms of
financial resources and the time required for basic research, technology
development, and commercialization, including obtaining product approvals and
developing and resourcing marketing strategies (Hobbs, 2002). In this particular
industry, many health-promoting ingredients are still being tested for their longterm effects on health or face discrepancies with regard to scientific opinions. fThe
complexity of this industry leads to the formation of new supply chain partnerships
among input suppliers, farmers, researchers, and food processors. There exist
opportunities for strategic alliances or joint ventures and the need for a consistent
supply of functional ingredients through contracts or special supply arrangements.
Thus, not only a wide range of products but different market segments and
economic conditions characterize this industry. In particular, the functional food
industry reflects a shift from a mass market to a market with differentiated
products, serving consumers with relatively high incomes. fToday, supply chain
participants perceive the functional food industry as an opportunity to gain market
share through improved margins and customer loyalty. Nevertheless, this type of
industry is still highly concentrated, which means that a small number of large
companies dominate and shape its direction. In addition, it is generally
characterized by a high rate of failure for new food products, often due to
insufficient market research. Although they possess unique nutritional and health
characteristics, functional foods still compete with conventional foods for market
share and shelf space in retail stores (Hobbs, 2002).

Key Trends & Developments in Ingredients provides extensive discussion of new protein ingredient sources with a primary
focus on plants, the identification, development, application and benefits of microalgae ingredients in functional food
products, the latest in omega-3 fatty acid ingredients and enhanced scientific understanding and growing recognition of
dietary insufficiency and health benefits associated with vitamin D and magnesium. Coverage of each ingredient topic
includes understanding of the latest science related to health and wellness, innovation and new developments in ingredient
technology, recent new product launches featuring these ingredients, consumer awareness and interest in these ingredients,
when available, and identification of market opportunities.

Products for hearth health.

According to the research made by Datamonitor, almost 25% of the population over
40 years suffers from hearth diseases. This fact reflects on a high level of stress,

obesity, and inadequate diet. The ingredients that beneficially influence the hearth
health (anthocyanins, antioxidants, carotenoids like carotene, lycopene, lutein,
zeaxanthin, isoflavons, fatty acids, phytosterols, Omega- 3, Q10 coenzyme) are
used in snakes, baked products, dairy-produce, oils, tea and other drinks, soybean
products, etc. o
Products for bones health and against arthritis.
Earth's population is in a continue process of ageing. Typical problems for aged
people are the one of bones and arthritis. In a Datamonitor report it is being showed
that the number of people with bones diseases grown with 1% a year in Europe and
with more than 2% in USA between 1994 and 2004. Calcium and vitamin D are the
typical ingredients associated with bones health. Recent studies indicate the
beneficial effect on the heart health, but also protection ingredients against cancer;
this is why people try to introduce them (especially calcium) in as many products as
possible, especially in drinks: soybean milk, orange juice, water, refreshments.

Products for stomach health. The number of consumers suffering from serious
medical conditions affecting the gut and bowel is low. The products for this
consumer are various: gluten-free products, probiotics products (specifically
probiotic yogurts).
Products for According to World Health Organization (WHO),
the obesity reached epidemical proportion in an aggregate level, with more than a
billion adults being overweighed and more than 300 millions being obese, clinically
speaking. The obesity is also dangerous because it favors other diseases: BCV,
diabetes, bones diseases, cholesterol growth. Consumers are being aware of the
risks, and as a result, the market destined to this kind of peoples is growing with
more than 3,5% a year. This diets do not necessarily contain functional foods, but
mostly low energetically value, with low content of fat. There are two tendencies of
development for this group of products: "light" products and products with
"negative caloric value." This second group mostly influence the metabolism using
stimulating, like: coffin, guarana, ginseng, herba mate (that are using more calories
than the product itself) and action in soothing the appetite; this products are mostly
found as drinks. A large number of products from this category are being destined
to overweighed children, because these ones are the most exposed to multiple
diseases. In order to adjust the weight, in 2001 it was being recommended
appetizers, cereals, refreshments, using attractive colors and packs with cartoons
destined to attracts the smallest from the consumers. In our days people are
focusing mostly on consuming fruits and vegetables

Products for immunity and against aging. They are being reached in antioxidants.
Leaders of sales in this category are cooling drink, appetizer, dairy-produce, whole
mea