Our team at Glanbia Nutritionals has taken a look at Europe’s functional/fortified food and beverage market – currently estimated at €30billion and forecasted to grow at a CAGR of 2.9% between 2020 and 2025.1 While food accounts for 64% of this market, higher growth is expected for beverages (at 5.1%) than foods (at 1.6%).2
While fortified products make up an important part of Europe’s total food and beverage market (for example, through breakfast and energy products), some key trends are emerging that point to new opportunities in fortification:
1. COVID Driving Interest in Healthier Lifestyles
The COVID-19 pandemic has been impacting Europe’s food and beverage market as more consumers look for products to help support their health. FMCG Gurus reports 41% of consumers in Europe have researched how to eat and drink more healthily as a result of COVID-19, while another 41% have sought out functional products with health-boosting ingredients more often.8
2. Consumers Looking for Energy Boosts
A lack of energy is also something many European consumers are facing due to stress and lifestyle changes from the pandemic. Half say they don’t have enough energy to get through the day, and two-thirds are interested in products that can keep them energized throughout the day.9 Brands that consider energy-supporting ingredients as part of their fortification strategy can meet this new need.
3. Fortified Products Aligned with Other Food and Beverage Trends
Another trend supporting product fortification can be seen from recent new product launches in Europe. New foods and beverages with vitamin and mineral fortified claims are increasingly likely to feature other in-demand claims. In 2020, one in four vitamin and mineral fortified new product launches also made a no additives/preservatives claim, while more than one in five made a vegan/vegetarian claim.10 This illustrates how fortified products are becoming aligned with other key healthy food trends.
Top Fortification Opportunities
Recent new product launches also provide insights into which product categories have a high potential for added fortifications. One is the meat alternatives category. From 2019 to 2020, new product launches of meat substitutes in Europe featuring vitamin and mineral fortified claims grew by 105%.11 Another category to watch is growing up milks, which saw a 31% increase in new launches with vitamin and mineral fortified claims in 2020.12
Brands also need to consider which ingredients to prioritize for product fortification. Over the last five years, B vitamins, which consumers associate with energy, were the most commonly added fortifying ingredient in fortified new product launches in Europe (present in over 60% of these new products).13 Vitamin C, known for its role in immunity support, was the next most frequently used (found in over 40%).14 Calcium and vitamin D, both linked to strong bones, were the next most popular in fortified product launches.15
Consumers’ growing interest in foods and beverages that can support a healthy lifestyle, combined with a heightened need for energy and immunity support options, is creating new opportunities in fortification for food and beverage companies. Products that are health-focused (like growing up milks) or have a health halo (like plant-based meats) are key focus areas for nutrient fortifications since health-minded consumers are already looking to these products to boost health.
For more trends and insights visit https://www.glanbianutritionals.com/en/nutri-knowledge-center or https://www.glanbia.com/our-expertise/nutrition-solutions
References
1,2. Euromonitor, Western Europe, Fortified/Functional Packaged Foods & Beverages, February 2021.
8, 9. FMCG Gurus, Ingredients – What’s Hot for 2021, November 2020.
10-15. Mintel, Global New Product Database, all European launches with vitamin and mineral fortified claim, 2021.