Market Report Source

Overview

Today, consumers are taking a more proactive approach to managing
their health and the prevention of diet-related diseases, such as obesity,
diabetes, cardiovascular and bone and joint diseases. Many of these
diseases are at epidemic levels, and this combined with increasing patient
power makes the prevention of these lifestyle diseases attractive markets
for both the food and pharmaceutical industries to exploit.

Next-Generation Nutraceuticals is a new report published by Business
Insights that provides analysis of how the food and pharmaceutical
industries are becoming more aligned in their approach to consumer
health. This report assesses the changing regulatory landscape in addition
to how the strategies of leading ingredients, food, drinks and
pharmaceutical companies are evolving in the new consumer health
marketplace.

Understand how food and drinks manufacturers are applying
genomic and proteomic technologies that are widely used in the
pharmaceutical industry in order to create increasingly sophisticated
functional food products with this new report.

Some key findings from this report…
• The functional food and drinks market was worth $26.4bn in
Europe and the US in 2005. It continues to grow at a CAGR of
4.4%, driven by consumers’ increasing acceptance of functional
foods and a desire to self-medicate.
• The food and drinks industry is adopting pharma technologies
in order to create more sophisticated and personalized health
products. These technologies include genomics, transcriptomics,
metabolomics and nanotechnology.
• Labelling and health claim regulations are likely to change
globally as a result of the evolution of functional food and
drinks. These changes are likely to include issues such as
harmonization of regulatory guidelines and more extensive clinical
trials.
• A major growth area for Nestlé is heart health. In 2004, of all the
functional products launched by the company, only 6.5% were heart
health products, but this share increased to 29.7% in 2006.

Your questions answered…
• In what ways are the food and pharma industries converging?
• How are the food and pharma industries tackling the prevention of
lifestyle related health problems including obesity, diabetes and
cardiovascular disease?
• How are functional food and drinks evolving to have qualities
associated with pharma products?
• How are food and drinks companies applying the use of pharma
technologies?
• How will regulatory changes affect the future of functional foods
and drinks globally?
• Which companies are the leading innovators in nutrigenomics and
with whom are they partnering?

This new report will enable you to…
• Assess changing cross-market dynamics using this report’s
analysis of convergence between companies including Chr. Hansen
and BASF and the pharmaceutical industry and the innovative
functional ingredients that this produces.
• Understand how nutrigenomics will revolutionize the functional
food and drinks market through enabling a more personalized
approach to the management of diet and health, mirroring
pharmacogenomic and personalized medicine developments in the
pharmaceutical industry.
• Identify the opportunities and threats resulting from regulatory
changes regarding health claims on food and drinks in Europe,
the US and Japan, and the prospect of a closer alignment with
pharmaceutical regulation in the development of the next
generation of functional food and drink products.
• Predict future food and pharma product developments using
the report’s critical evaluation of recent partnering activity between
leading food and drinks companies and innovative biotechnology
platform developers.

Table of Contents

Executive Summary

Food and pharmaceutical disease prevention

Functional food and drinks

Technologies for nutrigenomics

The regulatory landscape

Strategies of leading ingredient, food, drinks and pharma companies

Future challenges and opportunities

Chapter 1 Food and pharmaceutical disease prevention

Summary

Introduction

The changing approach to the health burden

New technologies

Key convergent markets

Obesity

Epidemiology

Sales

Cardiovascular disease

Epidemiology

Sales

Diabetes

Epidemiology

Sales

Bone health

Epidemiology

Sales

Conclusions

iv

Chapter 2 Functional food and drinks

Summary

Introduction

Functional food and drinks

Functional ingredients

Scientific evidence to support the health benefits of functional ingredients

Proving efficacy: pharma vs. food

Growth areas and product trends in the functional foods market

Heart health

Digestive health – Probiotics

Innovative ingredients aligning with pharma

Personalized nutrition

Conclusions

Chapter 3 Technologies for nutrigenomics

Summary

Introduction

Biomic technologies in the pharma industry

Pharma technologies in the food industry

Genomics

Genomics in personalized nutrition

Case study: Sciona Inc

Transcriptomics

Transcriptomics in the food industry

Case study: WellGen Inc.

Proteomics

Metabolomics

Case study: the INTERMAP study

Challenges to metabolomics in nutrition research

Growth and interest in metabolomics

Systems Biology

Nanotechnology delivering new ingredients

Conclusions

Chapter 4 The regulatory landscape

Summary

Introduction

v

Regulation of health claims for functional foods

Japan

United States

Health claims

Structure/function claims

Criticism of the FDA’s approach

Europe

Opportunities and threats of functional food regulation

The future of functional food regulation

Regulation of personalized dietary advice

Conclusions

Chapter 5 Strategies of leading ingredient, food, drinks and pharma companies

Summary

Introduction

Ingredient manufacturers

DSM

BASF

Chr. Hansen

Products

Research

Opportunities for the ingredients industry

Food and drinks manufacturers

Nestlé

Nestlé’s products

Research

The future for Nestlé

Unilever

Unilever’s products

Research

The future for Unilever

Ajinomoto

Research and the future for Ajinomoto

Danone

The future for Danone

Coca-Cola

Other food and drinks manufacturers

Pharma companies

Future trends for the food and pharma industries

Agribusiness

vi

Alliances

Food-pharma alliances

Alliances with new technology companies

Alliances for nutrigenomic research

Conclusions

Chapter 6 Future challenges and opportunities

Summary

Introduction

Opportunities and market drivers

Consumer demand

Incentives

Opportunities in developing markets

New product development opportunities

Marketing

Challenges

Scientific challenges

Furthering basic and applied research

Clinical testing of nutraceuticals

Defining health

Ethical, legal and societal concerns

Ethical concerns

Societal concerns

Privacy and human rights

Research practices in nutrigenomics

The regulatory framework

Conclusions

Chapter 7 Appendix

Bibliography

Index

Footnotes

vii

List of Figures

Figure 1.1: Drivers of change in the food and pharma industries

Figure 1.2: Examples of food and pharma approaches to heart disease

Figure 1.3: A functional food pyramid

Figure 1.4: The role of food and pharmaceuticals in the healthcare continuum

Figure 1.5: Examples of obesity drugs in development

Figure 1.6: Global deaths from cardiovascular disease

Figure 1.7: Drugs in clinical development for CV disorders

Figure 2.8: Top US consumer health concerns, 2005

Figure 2.9: Nutrigen IQ3 Yogurt Drink

Figure 2.10: Right Direction Cookies

Figure 2.11: DanaCol with Omega-3 & Plant Sterols Dairy Drink

Figure 2.12: Calpis Aqua Nyusankin

Figure 2.13: Calpis Interbalance L-92 Lactic Acid Bacteria Drink

Figure 3.14: The ‘omics technologies: definitions

Figure 3.15: The ‘omics technologies

Figure 3.16: The Cellf??Assessment Kit from Sciona

Figure 3.17: Pro-inflammatory metabolic pathways

Figure 3.18: Technologies used in proteomics

Figure 3.19: 1H NMR spectrum of urine showing functional windows

Figure 3.20: Large scale metabolomic screening of human populations: identifying outliers

Figure 4.21: Standardized qualifying language for qualified health claims

Figure 4.22: Examples of structure/function claims allowed on food labeling

Figure 5.23: Recent products launched that contain TEAVIGO??

Figure 5.24: Development of new probiotic cultures at Chr. Hansen

Figure 5.25: Nestlé’s products by functional category, 2004-2006

Figure 5.26: Nestlé’s functional brands (2005)

Figure 5.27: Nestle NesVita Pro-Heart Probiotic Drink

Figure 5.28: Unilever’s products by functional category, 2004-2006

Figure 5.29: Flora Pro-Active Blood Pressure Mini Drink

Figure 5.30: Ajinomoto products by functional category, 2004-2006

Figure 5.31: Calpis Ameal S Maiasa Yasai (vegetable breakfast drink)

Figure 5.32: Danone’s products by functional category, 2004-2006

Figure 5.33: Danone Petit Danone Cheese Dessert

Figure 5.34: Coca-Cola’s products by functional category, 2004-2006

Figure 5.35: Enviga

Figure 5.36: Novartis’ Benefiber Clear Choice! Powder and Isocal Jelly Arg Jelly Dessert

Figure 6.37: Awareness and favorability towards personalized nutrition

viii

List of Tables

Table 1.1: Number and percentage of overweight and obese adults by country, 2005-2010 (%

adult population)

Table 1.2: Size of the diet food and drinks market and the obesity pharmaceutical market,

(US$,m), 2005-2010

Table 1.3: Estimated prevalence of major cardiovascular diseases in the seven major markets,

2004

Table 1.4: Size of the food and drinks and pharmaceutical markets for heart health, (US$,m),

2005-2010

Table 1.5: Prevalence of type-2 diabetes in the 7 major markets, 2005-11

Table 1.6: Size of the pharmaceutical market for diabetes, (US$,m), 2005-2010

Table 1.7: Prevalence of Rheumatoid Arthritis based on population > 60 in the seven major

markets (000s), 2005–2010

Table 1.8: Prevalence of osteoporosis in men and women over 50 across the seven major markets,

2005

Table 1.9: Size of the food and drinks and pharmaceutical markets for bone health, (US$m),

2005-2010

Table 2.10: Functional ingredients

Table 2.11: Functional food ingredients (cont.)

Table 2.12: Examples of functional food ingredients and the scientific basis for health benefit

claims

Table 2.13: Functional food and drink sales by value ($m), 2005-2008

Table 3.14: Companies offering nutrigenetic testing and dietary advice, 2006

Table 3.15: Genetic variations screened by the Cellf??Assessment Kit from Sciona, 2006

Table 3.16: How nutrients alter gene expression

Table 3.17: Examples of transcriptomics in nutritional biology and nutrigenomics

Table 3.18: Companies and research centres utilizing gene expression analysis for nutrigenomic

applications

Table 4.19: FOSHU functions and functional food components

Table 4.20: Generic health claims currently approved by the FDA

Table 4.21: Regulatory opportunities and threats in the functional foods industry

Table 5.22: Ajinomoto products containing AmealPeptide??launched in Japan

Table 5.23: Recent functional food and drinks launches

Table 5.24: Some functional food and drink products launched by pharma companies

Table 5.25: Consortia involved in the International Nutrigenomics Network

Table 5.26: Examples of other collaborative nutrigenomic research projects

Table 6.27: Biomarkers for well-being and disease risk reduction