全球nutrition market(1).ppt

Functional Foods&NutraceuticalsExploring the Canadian Possibilities,Kelley C.Fitzpatrick,M.Sc.Marketing and Research Development ManagerRICHARDSON CENTRE FOR FUNCTIONAL FOODS&NUTRACEUTICALSRoom 256 Agriculture BuildingUNIVERSITY OF MANITOBAWinnipeg,Manitoba R3T 2N2kelley_fitzpatrickumanitoba.ca,CANADIAN DEFINITIONS,Nutraceutical&Natural Health Product Product isolated or purified from foods Sold in medicinal forms-pill,powder,capsule,Functional Food A conventional food Consumed as part of a usual diet,Physiological Benefit or Protect against DiseaseHealth Claim Variable status,CANADIAN REGULATORY STATUS,Natural Health Products New regulations Canada Gazette II,Summer 2003 Will allow expanded labeling information&health claims Will require much more stringent processing,etc.,Functional Foods Five“generic”risk reduction claims approved within“Mandatory Nutrition Labeling”Jan 2003 Other“product specific”claims Not expected for 2 or so years Will allow some limited claims but with significant scientific support,$150 billion Global Nutrition Industry in 2001,Source:Nutrition Business Journal,2002,2001 USA Category Growth,Source:Nutrition Business Journal,2002,U.S.Functional Food Market Is Expected to Grow at 8.3%Through 2004,$12.3,Source:HBP Analysis,2000,U.S.FUNCTIONAL FOOD RETAIL SALES($US billion),$13.7,$14.8,$16.0,$17.3,$18.8,$20.4,$22.1,$23.8,PROJECTED,Trends driving FFN market,Canada Represents a Respectable 2.8%of The Global Market,Considering Relatively Low Population Size,2001 GLOBAL NUTRITIONAL INDUSTRY(in Canadian$billions),Source:HSC Research and Analysis,2003,TOTAL$239 Billion,The Canadian Nutrition Market is Being Shaped by a Collection of Connected Forces,Branded Manufacturers,Branded manufactures have strong competitive advantage because they are established to meet current Canadian regulatory guidelines.,Supply Chain,The supply chain in Canada is very well organized.,Legal/Regulatory,Uncertain regulatory environment,Consumer Demographics,The largest growing segment is the aging consumer with growth of womens products ahead of other segments.,Consumer Attitudes/Lifestyle,Increased desire for healthier lifestyles and increased awareness,Retailers,The mass channel is the dominant leader for most sales while the direct channel lags behind.,NUTRITION MARKET,However,the importance of these forces varies by category.,Source:Health Strategy Consulting Research and Analysis,2003,Imports,Because of current regulations many products are being purchased cross-border in the U.S.,2001 Canadian Market$6.6 billion CDN,Herbs&Botanicals 10%,Specialty Supplements7%,Functional Foods41%,Vitamins&Minerals14%,Natural&Organic Foods19%,Natural Personal Care9%,Source:Nutrition Business Journal,2002,Factoring in Canadas Low Population,Sales Figures Reflect a Smaller,but Attractive Industry,2001 SALES(CAD$Billions),Source:HSC Research&Analysis,2003,The Canadian population is barely 0.5%of the worlds population,while America represents 4.5%.The ratio of 9:1 is a commonly seen when comparing the two countries industries.,Canadian Spending Per Capita Reveals a Strong Market,SALES PER CAPITA(sales population)(CAD.$),Population=271MSales=$81B,Population=31MSales=$6.6B,Population=126MSales=$35.7B,Population=377MSales=$55.6B,Source:HSC Research and Analysis,2003,Canadian per capita purchases of nutritional products in 1997 was only$91.,Canada Healthy Foods and Supplement Market,Ca.$1.23 billion US annual Supplement sales(NBJ 2002)68%Canadians Vitamins 60%Minerals 25%Herbals 28%Men 64%Women 72%Highest usage aged 18-29 years oldAngus Reid Group,2000,Top 5 Selling Herbs(by Canadian Household),Source:Canadian Natural Health Retailer,September-October 2001,Ontario Leads Retail and Supplier Sales,NATURAL PRODUCT HEALTH RETAIL STORE SALES,SUPPLIERS SALES(distributors&manufacturers),Retail and supplier sales closely follow populations the heavier populations densities found along eastern Canada.,Source:Saskatchewan Nutraceutical Network,2002,The Canadian Industry,Number of Companies%of CompaniesBritish Columbia4722%Alberta15 7%Saskatchewan2612%Manitoba73%Ontario5224%Quebec4923%New Brunswick21%Nova Scotia73%Newfoundland63%Prince Edward Island42%Total215100%Source:Canadian Technological Road Mapping on Functional Foods and Nutraceuticals,KPMG 2002&the Saskatchewan Nutraceutical Network,Membership Directory,2001.,Primary Focus of Western Canadian Industry,Personal Care Products15%,Other 11%,Natural Health Products52%,Functional Foods22%,Source:Saskatchewan Nutraceutical Network,2002,Products,Natural Health ProductsOver 70 herbs grown in Western CanadaEssential Oils Caraway,coriander,dill,celery,hempElk velvet and emu oil products,Willowherb(Fireweed),Echinacea Products,Elk Velvet Products,Ingredients from Oilseeds&Others,Essential Fatty Acid Supplements Omega 6-Borage,Evening primrose,Black Currant,Hemp OilOmega 3-Flaxseed,Fish,Hemp oilAlgae Sources-EFAs,CarotenoidsPumpkin seed oilConjugated Linoleic Acid-Sunflower Oil Flaxseed LignansHemp based productsPhytosterols,Nutritional Significance of Canola Oil,Healthy Fatty Acid ProfileCholesterol FreeOptimal Balance of Essential Fatty Acids(EFAs)“Good”Source of Vitamin ESource of Phytosterols,Borage,Also known as“Starflower”Richest source of GLA20-24%GLAGrown extensively in Western Canada,Hemp,3-4%GLA 20%ALA Grown in Western Canada since 1998,Phytoestrogens75-800 times higher than 66 other plant foods(Thompson et al.Nutr.Cancer,1991)Major lignan-Secoisolariciresinol diglucoside(SDG)converted by bacteria into estrogen-like compounds Estrogenic Properties Structurally similar to several sex hormones,FLAXSEED LIGNANS,Anti-oxidant PropertiesReduce Atherosclerotic lesionsHypoglycemic effects(Prasad,K.1999.Circulation.99(10):1355)Alleviate symptoms related to lupus nephritis(Clark,W.F.&A.Parbtani.1998 US Patent 5837256).Reduce hormone-dependent cancers-breast,endometrial and prostate(Thompson,1995.In:Flaxseed in Human Nutrition)Decrease rate of bone resorption Protection from bone loss(Arjmandi,B.H.et al.1998.JANA.1(2):27.),FLAXSEED LIGNANS,Flax&Soy Energy Bar,Multi-ingredient formulasEFA blends,condition specific formulas,Phytosterols,Oats&BarleyBeta-glucan-FDA Health Claim SoyFenugreekWheat Bran,Lentils,Peas&BeanSoluble&Insoluble fiberRed clover,Functional Foods&Ingredients,Fenugreek,Functional Foods&Ingredients,Omega 3 enriched productsDairy&Vegetable sources-Pro&PrebioticsModified fatty acid vegetable oilsFruit products Seabuckthorn,Saskatoon berry,blueberry,cranberry etc.,Seabuckthorn,Canadian Nutritional Industry Summary,Rapid growth Past few years spawned largely by consumer demand for natural health productsWhile seemingly small when compared to other global powerhouses in the nutritional industryRapid growth of 130%in consumer purchases in the last four years Comparable per capita spending to other leaders Leads to position of a competitive contender in the global market,Source:Health Strategy Consulting Research and Analysis and SNN 2002,Canadian Nutritional Industry Summary,Functional foods-largely undefined segment continues to be pulled by consumers into traditional food marketThe supplement category-largely affected by regulationsallowing a few companies to have a large portion of the market shareDistribution-highly dominated by mass,health food and specialty storesRegulatory reform vital for ensuring consistent enforcement of safety,quality and efficacy issues,while also allowing for the growth of a competitive industry,Source:Health Strategy Consulting Research and Analysis and SNN 2002,Low production costs&high quality raw materials Leader in oilseeds&grain processing Strong research infrastructure focused on value added ag production-uniqueInnovative growers with capacity to expand Capacity for small-scale custom processingGovernment support for agriculture Innovators and entrepreneurs in the sectorProximity to US market,Industry StrengthsWestern Canada,Industry Challenges,Focus on production as opposed to producing for markets Research funding constraints Regulatory and business constraintsIdentifying market opportunities and constraints Competitive intelligenceIdentifying and attracting skilled human resourcesConsumer Positioning,Awareness&Education,Health Claims in CanadaCurrent Situation,Food and Drug Act&Regulations,1953Premarket approval by HPB for new foods and drugs.Health claim-Drug Identification Number(DIN)and New Drug Submission required.Prohibit sale or advertisement of products which indicates a treatment,cure or preventive role for diseases or disorders listed in:Schedule A wide range of diseases and disorders including CHD,diabetes,cancer,hypertension,obesity and arthritis,Generic Health Claims Foods,Calcium&OsteoporosisSodium&HypertensionDietary Fat&Coronary Heart DiseaseFruits,Vegetables&CancerDietary Sugar Alcohols(sorbitol,xylitol,mannitol)&Reduced Risk of Dental Caries,Generic Health Claims Foods,Further Scientific Review underwayFolate and Neural Tube Defects Fibre-Containing Grain Products,Fruits and Vegetables and CancerFruits,Vegetables and Grain Products that Contain Fibre,Particularly Soluble Fibre and Risk of Coronary Heart Disease,Other Health Claims,?Soy Protein&Risk of Coronary Heart DiseaseSterols/stanols&Risk of Coronary Heart Disease“Qualified”Health ClaimsStructure/Function Claims,NATURAL HEALTH PRODUCTS,A New Vision,Report of the Standing Committee on HealthJoseph Volpe,M.PChairNovember 1998,Natural Health Product-Definition,Purpose-Diagnose,treat,mitigate or prevent diseaseRestore or correct organic functions Maintain or promote health,Natural Health Product-Definition,Health Claims-impact of Schedule A?Working Group,Feb 2003 reassess diseases in Schedule A suggest possible modifications to ScheduleSub-set of DrugsDoes not require establishing a new regulation for each new health claim All products MUST register as NHPs and carry a claim,Natural Health ProductDefinition,Categories-Plant,alga,fungus or non-human animal materialExtract or isolate of the aboveMineral,trace element,vitamin,amino acid,essential fatty acid Synthetic duplicate of(b)or(c)aboveProbiotics,homeopathics,Traditional preparationsExclusions,Proposed Regulatory FrameworkProduct Licensing,ALL NHP will be issued a product license(PIN)pre-market approvalCompliance with an“Attestable traditional”NHPD MonographSubmission of data to support safety,quality&efficacy of health claims SOEsDifferent levels of evidence required for different types of claims,Office of Natural Health Products www.hc-sc.gc.ca/hpb/onhphttp:/canada.gc.ca/gazette/gazette_e.htmlHealth Claims for Foodswww.hc-sc.gc.ca/food-aliment/english/subjects/health_claims/index.html,People prefer to get their health from.the kitchen cabinet rather than.the medicine cabinet Source:Ian Newton,Roche,SNN Conference,2001,MARK YOUR CALENDERS,Functional Food&NutraceuticalIndustry and Research UpdateInternational ConferenceOctober 10 and 11,2003Fairmont HotelWinnipeg,MBIn conjunction with“Business of Science Symposium 2003”www.manitobalifesciences.ca,MY THANKS to.,Sarah Broadfoot,Communications AssistantHarminder Dhanjal,Mgr Finance&AdminCrystal Jorgenson,Communications SpecialistDiane Wreford,Executive Assistant to the Dean of Ag and Food ScienceSPEAKERS!CHAIRS!,