By Natasha Telles D’Costa, research manager, New Zealand GIC, Frost & Sullivan
Centuries ago Hippocrates once said “Let food be thy medicine and medicine be thy food” and this is well-emulated in the health and wellness trend in the current global food market where considerable importance is placed upon healthy, high value nutritious foods.
This trend is set to grow strongly – particularly in the heart health food sector where growth is driven by the alarming increase of cardiovascular related diseases, especially over the last decade.
New Zealand’s heart health food market is also growing as cardiovascular related disease continues to be a deathly killer and the largest cause of non-communicable disease deaths globally. More specifically mortality is due to the onset of ischaemic or coronary heart disease, hemorrhagic and ischaemic stroke, hypertensive heart disease or congestive heart failure. Hence, more and more consumers globally are opting for healthy, functional and nutritionally high value foods in order to prevent the onset of cardio vascular related diseases. This in turn also drives the growth for the heart health ingredients segment within the nutraceutical market as consumers are becoming increasingly health conscious and turning towards the trend of preventive medicine to manage and control the risk factors that can lead to cardiovascular related disease.
Global heart health foods market
Heart health concerns among consumers vary across regions based on genetics, the level of economic development and awareness.
The USA has the largest market for heart health foods due to the high consumption of trans- fats and unhealthy lifestyles which have led to increased incidence of cardiovascular disease (CDV). Europe has the second largest market and the most common form of CVD death is via ischaemic heart disease. In Asia Pacific, traditional healthy cuisine is being replaced by cholesterol rich fast food. Other factors such as, rising obesity levels, the genetic predisposition to retain twice as much body fat as Caucasians and the lack of health ingredient awareness is the increasing CVD occurrence which in turn makes APAC the fastest growing market with a CAGR of 20.1 percent up to 2018. The rest of the world isn’t far behind with disease growth being driven by the consumption of cheap and high energy calorific foods which accounts for the large amount of CVD deaths.
Global heart health nutraceutical market
The global nutraceutical market is estimated to grow to $211 billion by 2015. The industry is expected grow due to the growing healthcare costs and the increased interest from the developing world. Japan is the market leader, whereas the American and European markets are the largest revenue generators. However, there is competition from the growing demand in Asia Pacific.
As awareness grows, consumer demands for products with specific health benefits have been increasing. Hence nutraceutical products are segregated into various sectors based on their health benefits such as heart health, eye health, etc. The heart health market has witnessed the most growth due to the increasing incidence of cardiovascular related diseases claiming many lives. This market is estimated to grow to $5.4 billion by 2016 and has presented large opportunities for ingredient manufacturers because risk factors such as high cholesterol can be controlled through the intake of nutraceuticals. The US and Europe with their aging populations have the largest markets, however, increasing demand for heart health nutrition is seen in Asia Pacific and the rest of the world. The key ingredients in the heart health ingredient market are:
Polyunsaturated fatty acids (PUFA)
These have the largest market and have been associated with numerous health benefits, such as lower blood cholesterol levels and decreased risk of coronary artery diseases by reducing inflammation. The market consists of three variants such as marine PUFA, algal PUFA and flaxseed oil. Omega-3 fatty acids in particular are associated with a wide array of health benefits including enhancing heart health and are incorporated in an array of products including supplements and functional foods. The US and the European Union are the largest markets, while Eastern Europe, APAC and China are the fastest growing. The Indian, African and Latin American markets are in their infancy stage still and moderate growth over the coming years is expected.
Phytosterols
These are naturally present at low levels in many plants and plant-derived products. When consumed, they compete with regular cholesterol for absorption into the body which results in reduced absorption of regular cholesterol and hence reduced overall cholesterol levels. As high cholesterol is the most prevalent form of heart disease in the US and Europe, this cholesterol lowering effect will drive demand for phytosterols. South America and Asia are emerging as hot spots for phytosterols products. The European Union and US markets are growing as new products are hitting the market place.
Soy Protein
These are composed of 38 percent proteins and contain nine essential amino acids that are apt for human health. The market for soy protein in heart health in Asia-Pacific is growing due to increased demand, especially in Asia where soy is indigenous. The US is also a key market, particularly after FDA approved of the use of soy and its claims on heart health. However the European market has no significant soy production and is witnessing stagnating growth in the soy protein market growth as prices skyrocket in the Asian market where countries like India are tightening soy exports due to growing domestic demand.
Beta-Glucan
This is a soluble dietary fibre that has proven beneficial effects on health and has approved health claims in the Europe and the US. These two are the key markets for beta-glucan, whereas markets in Asia and the rest of the world have not been significantly penetrated. Other soluble dietary fibres markets in nacest stages of growth is Glucomannan, which functions to lower cholesterol concentration, hence improving heart health.
Other emerging ingredients
These include green tea extract and soy isoflavones which improves endothelial function and protects low density lipoprotein cholesterol from oxidation, hence benefiting heart health. Additionally, vitamin C and vitamin E also enhances heart health by reducing lipoprotein levels, reducing blood pressure and aids to prevent LDL lipid peroxidation and inhibits blood clotting plaque enlargement and rupture.
NZ heart health food market
CVD is prevalent in NZ and is the largest cause of death in New Zealand accounting for 35 percent of overall deaths and is more common in females than males. Additionally more than 80 percent of incidence is in the non-maori population. This drives the growth of the heart health food market where phytosterols is a key heart health ingredient market as the NZ law allows its supplementation in spreads such as fortified margarine. There has also been a huge increase globally in incorporation of phytosterols in dairy products. Omega -3 is another key heart health ingredient market for fortification both domestically and export wise as NZ has abundant Hokki and krill supplies.
Key market dynamics
Market drivers and restraints affect the overall market dynamics of the heart health food market. These include:
Market drivers
Increasing awareness and incidence of CVD: As awareness grows consumer demand for products with specific health benefits has been skyrocketing. Consumer concerns have thus moved to healthier lifestyles to prevent the onset of such diseases.
Data backing the science of heart health ingredients: More scientific trials and experiments are being conducted to validate claims of the benefits of the health ingredients which in turn increase consumer confidence.
Increasing healthcare costs drives preventive care: Due to rising costs of healthcare, more consumers are moving away from treatment and towards preventive medicine. Preventive medication is driving the trend for healthier eating via functional food and beverages.
Increasing focus on natural products: The natural label has emerged as a market defining trend with synthetic products being constantly replaced by natural ingredients due to worries over safety of synthetic variants. Additionally as NZ is GM free its products have huge quality appeal both locally and in particular, in international markets such as Europe.
Increase in convenience: NZ is witnessing an increased demand for healthier and high nutritional value convenient foods. The breakfast foods are a key market where probiotic yoghurts and liquid breakfasts are a growing market. However claims that these foods very little energy and high sugar levels have caused limited uptake of these foods on a daily basis.
Market restraints
Lack of innovation in country specific products: The use of local ingredients in food fortification is a key growth area as consumers are already familiar with the ingredients. Hence NZ has the ability to tap into this market as it has an eco-friendly image and it is also gaining a lot of global multinational interest in NZ sourced raw materials. For example, polyphenols has given a new avenue for growth in the NZ olive oil industry. However New Zealand is in its nascent stages and requires more innovative means to incorporate and use local raw materials.
Insufficient marketing activities restrict consumer awareness for certain ingredients: Also marketing has to be more focused on specified ingredients. Also clear, easy to understand health claims without scientific jargon must be present on the products as it will promote easier purchasing decisions for consumers.
In conclusion, the growing incidence of cardio-vascular related diseases is driving the growth of the heart health food market globally. USA has the largest heart health ingredient market followed by Europe, Asia-Pacific and the rest of the world. The key ingredients that aid the functioning of the healthy heart are polyunsaturated fatty acids, phytostrols, soy protein, beta-glucan and other emerging products such as green tea extract, soy isoflavones and vitamin C and E. Phytosterols and omega-3 are the prominent heart health ingredient markets in New Zealand. The key drivers driving demand within the heart health food market in NZ is the increased awareness and incidence of CVD, the increased data which validate the health claims, increased healthcare costs which is forcing consumers to invest more on preventive medicine and the increased demand for natural, fortified and high-value nutritional convenience foods. However the factors that restrain growth within this market are the lack of innovation in country specific products and the insufficient marketing activities that restrict consumer awareness for certain ingredients.
Hence the growing health and wellness trend in the global food sector where a huge amount of importance is placed upon healthy eating and nutrition is expected to dramatically grow within the Heart Health Food sector in the coming years as cardiovascular related diseases continues to remain a deathly killer of many globally including NZ.
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