Functional foods, ingredients,

Nutraceuticals, Botanical Drugs: Trends,

Opportunities and Challenges

Jeya Henry

Professor of Food Science and Nutrition, Oxford Brookes University, UK

Director of the Functional Food Centre, Oxford, UK

Functional Foods and Nutraceuticals (FFN)

The global FFN market should reach US The global FFN market should reach US $500 billion by 2010$500 billion by 2010

Functional foods accounted for 35% of the Functional foods accounted for 35% of the US nutrition market in 2000. This wasUS nutrition market in 2000. This was

closely followed by dietetic supplementsclosely followed by dietetic supplements

The top functional foods as named by the consumers are:

Fruits and vegetablesFruits and vegetables Fish and fish oilsFish and fish oils SeafoodSeafood Dairy including milk Dairy including milk

and yoghurt and yoghurt Meat and poultryMeat and poultry Herbs and spicesHerbs and spices FibreFibre

Tea inc green teaTea inc green tea NutsNuts Whole grainsWhole grains WaterWater Cereals Cereals Oats, oat bran, Oats, oat bran,

oatmealoatmeal Vitamins/supplementsVitamins/supplements

Nutritionists list of top Nutritionists list of top functional foods – April 2009functional foods – April 2009

Salmon – The American Heart Salmon – The American Heart Association suggests that people Association suggests that people with coronary heart disease consume with coronary heart disease consume about 1g of omega-3 fatty acids about 1g of omega-3 fatty acids daily.daily.

Oats – A powerhouse nutrient, known Oats – A powerhouse nutrient, known for aiding with digestion, (and which) for aiding with digestion, (and which) also helps fight disease, and may also helps fight disease, and may lower risk for high cholesterol, heart lower risk for high cholesterol, heart disease, diabetes and cancer.disease, diabetes and cancer.

Nutritionists list of top Nutritionists list of top functional foods – April 2009functional foods – April 2009

Blueberries – Protect the body against Blueberries – Protect the body against the damaging effects of free radicals the damaging effects of free radicals and the chronic diseases associated and the chronic diseases associated with the aging processwith the aging process

Low-fat milk – Instrumental in Low-fat milk – Instrumental in lowering high blood pressure, helping lowering high blood pressure, helping with regular heart beat, and building with regular heart beat, and building strong bones.strong bones.

Low-fat yoghurt – Look for brands that Low-fat yoghurt – Look for brands that contain live and active cultures contain live and active cultures

SWOT Analysis

Strengths

1. Production of a Number of

Natural Food Resources

2. Highly Skilled Human Capital

3. World Class Research

Recommendations

1. Sensitise primary food producers to embrace the development of functional foods

2. Development of research cluster devoted to functional foods bringing together world class researchers

3. Align technical and research capabilities by first initiating functional food research

SWOT Analysis

Weaknesses

1. Limited cooperation between stakeholders in the food sector

2. Lack of focus on developing functional foods

3. Poor linkages between academics, industry and government agencies

4. Lack of Critical Mass to initiate globally challenging functional food programmes

5. Food companies complacent ignoring current world trends. Concentrating on primary produce – not value added products

6. Lack of comprehensive clinical trial capabilities

Recommendations

1. Formation of a functional food forum composed of members from academia, industry, government agencies

2. Appoint a functional food, Nutraceutical botanical plants “TSAR” to take leadership of this activity

3. Develop a centralised pilot processing plant with facilities for extraction, processing, product development and packaging

4. Develop dedicated clinical trial centres for functional foods

5. Encourage entrepreneurship amongst science and technology graduates

SWOT Analysis

Opportunities

1. Increased public concern to consume foods for health benefits rather than pills

2. Changing demography (ageing population)

3. Lifestyle changes (lack of time to prepare conventional meals)

4. Increasing costs of medical care (prevention)

5. Changes in eating patterns (snaking)

Recommendations

1. Increase consumer awareness about functional foods and their health benefits

1. Encourage the food industry to appreciate and undertake product development in functional foods in order to meet the challenges of the ageing population and lifestyle changes

1. Department of health and agriculture need to align policy in order to appreciate the impact of functional foods on health outcomes

SWOT Analysis

Threats

1. CHINA

a. Lower costs of production

b. Over supply of food products to the world market

c. Exploitation of 5,000 years traditional Chinese medical history

2. Ride the wave or be stranded on the beach (second rate player in the market)

Recommendations

1. Concentrate on developing value added functional foods

1. Encourage the food industry to appreciate and undertake product development in functional foods in order to meet the challenges of the ageing population and lifestyle changes

1. Comprehensive audit of plants species in Chile characterise medicinal or health properties

Public health concernsPublic health concerns

DiabetesDiabetes ObesityObesity Cardiovascular diseaseCardiovascular disease HypertensionHypertension CancerCancer Cognitive decline (Healthy ageing)Cognitive decline (Healthy ageing) DepressionDepression

Global estimates of diabetes

1.0

22.3

13.2

13.3

7.7

66.0

0 20 40 60 80

Oceania

Europe

Latin America

North America

Asia

Africa

Millions

Case examples Finland, China Singapore, Ireland.

Finland has become the world leader in Finland has become the world leader in innovation in food, nutrition and health with an innovation in food, nutrition and health with an impressive level of innovation in the functional impressive level of innovation in the functional food sectorfood sector

How did they achieve this?How did they achieve this?– By placing science based innovation at the core of its By placing science based innovation at the core of its

business, limited access to primary food source business, limited access to primary food source forced Finland to use innovation to develop functional forced Finland to use innovation to develop functional food products food products

Finland as a case example

Governmental involvement and incentives to Governmental involvement and incentives to industry and academics industry and academics – Tax Breaks Tax Breaks

– Promotion of SME not multinationals (Note over 80% Promotion of SME not multinationals (Note over 80% of world functional foods developed my SMEs) of world functional foods developed my SMEs)

– Clustering of scientists, technologists and marketeers Clustering of scientists, technologists and marketeers provided fertile grounds for Innovation provided fertile grounds for Innovation

FinlandFinland

Finland has developed a “cluster Finland has developed a “cluster based” approach where clusters are based” approach where clusters are geographic concentrations of inter-geographic concentrations of inter-connected food companies, connected food companies, institutions, academics and institutions, academics and governmental agenciesgovernmental agencies

The creation of a functional food The creation of a functional food forum has been a key to their forum has been a key to their success success

Finland

Proven as a centre of Functional Food Proven as a centre of Functional Food activity:activity:

BenecolBenecol Valio BreadsValio Breads XylitolXylitol Dietary FoodDietary Food DrinksDrinks

Regulatory Aspects

Regulatory Aspects

Chile currently lacks clear guidelines and Chile currently lacks clear guidelines and policies for the Nutraceutical and functional food policies for the Nutraceutical and functional food industryindustry

Regulatory responsibility not clearly specified Regulatory responsibility not clearly specified between department of health and agriculture between department of health and agriculture (similar situation in the UK until the FSA formed)(similar situation in the UK until the FSA formed)

Regulatory different in EU compared to Japan Regulatory different in EU compared to Japan and the USA (more liberal)and the USA (more liberal)

Concept to commercial reality Functional food development is a multi- stage process

that requires insight and inputs from academics, industry and regulatory partners

Stages in the commercialisation of functional foods are:– Description of a novel diet-disease related food

component– Pilot scale production of food– Clinical trials (Efficacy & safety)– Regulatory approval– Large scale commercial production– Consumer knowledge– Market growth

Recommendations (1)

1.1. Formation of a functional food forum composed of members from academia, Formation of a functional food forum composed of members from academia, industry, government agenciesindustry, government agencies

2.2. Development of research cluster devoted to functional foods bringing together world Development of research cluster devoted to functional foods bringing together world class researchers class researchers

3.3. Appoint a functional food, Nutraceutical “TSAR” to take leadership of this activityAppoint a functional food, Nutraceutical “TSAR” to take leadership of this activity

4.4. Develop a centralised pilot processing plant with facilities for extraction, processing, Develop a centralised pilot processing plant with facilities for extraction, processing, product development and packaging product development and packaging

5.5. Develop dedicated clinical trial centres for functional foods Develop dedicated clinical trial centres for functional foods

6.6. Encourage entrepreneurship amongst science and technology graduatesEncourage entrepreneurship amongst science and technology graduates

Recommendations (2)

1.1. Concentrate on developing value added functional foods Concentrate on developing value added functional foods

2.2. Encourage the food industry to appreciate and undertake product development in Encourage the food industry to appreciate and undertake product development in functional foods in order to meet the challenges of the ageing population and lifestyle functional foods in order to meet the challenges of the ageing population and lifestyle changes changes

3.3. Sensitise primary food producers to embrace the development of functional foods Sensitise primary food producers to embrace the development of functional foods

4.4. Comprehensive audit of plants species in Chile characterise medicinal or health Comprehensive audit of plants species in Chile characterise medicinal or health properties properties

5.5. Increase consumer awareness about functional foods and their health benefitsIncrease consumer awareness about functional foods and their health benefits

6.6. Department of health and agriculture need to align policy in order to appreciate the Department of health and agriculture need to align policy in order to appreciate the impact of functional foods on health outcomesimpact of functional foods on health outcomes

7.7. Align technical and research capabilities by first initiating functional food research Align technical and research capabilities by first initiating functional food research

Conclusion

Concentrate in developing the functional food sector Concentrate in developing the functional food sector prior to exploiting Nutraceuticals as the latter requires prior to exploiting Nutraceuticals as the latter requires considerable investment and Phase 2 clinical trials. considerable investment and Phase 2 clinical trials.

Development of functional foods will enhance the Development of functional foods will enhance the capacity building of the scientists and technologists capacity building of the scientists and technologists thereby enabling easy transition to neutraceuticals thereby enabling easy transition to neutraceuticals

Four potential areas for development of high impact Four potential areas for development of high impact functional foods are:functional foods are:– DiabeticsDiabetics– Obesity Obesity – Depression (1 in 5)Depression (1 in 5)– CVDCVD