Health Foods Market Report Plus - Market Research Reports

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Health Foods Market Report Plus

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This report concentrates on four key sectors within the overall health foods market - functional foods (including sports nutrition), organic foods, vitamins, minerals and supplements (VMS), and alternative remedies. Overall sales within these four sectors grew strongly during 2001, reaching an estimated £2.03bn (an increase of 17.4% on the 2000 figure). The strongest growth was experienced in the organic foods sector, while sales growth within the functional food sector has slowed down during the past year. The VMS sector showed steady, but more modest, growth. Meanwhile, sales of alternative remedies, the smallest of the four sectors, showed a good year-on-year increase. The dramatic changes which have impacted on the health foods market over the past few years have continued, with large mainstream manufacturers and retailers strengthening their hold. New retail initiatives have included the establishment of dedicated health food sections within J Sainsbury PLC's stores, and the purchase by Tesco PLC of a company specialising in complementary therapies. Mainstream manufacturers have continued to make acquisitions of existing specialist health food companies. A potential issue arising within the health foods market is the prospect of European legislation affecting food supplements and herbal medicines. As well as the fact that such legislation may eventually restrict the range of products available to the consumer, the current uncertainty over what will and will not be allowed by Europe is restricting new product development. Another factor which may slow down market growth is the attention of the media and pressure groups, who are closely scrutinising the way in which companies are marketing organic and functional foods. Coupled with the prospect of an economic slowdown, there is good reason to believe that the `honeymoon period' (during which consumers were eager to pay a premium for food which they felt would be beneficial to their health) may be coming to an end. However, the effects of these potential problems are not likely to be felt immediately, with steady, but less dramatic, growth continuing over the next few years.

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