By Denise Purcell

According to research from Mintel International, the functional foods market—defined as foods and beverages with added ingredients or processing that allows manufacturers to make a specific health claim—will surpass $10.4 billion in sales for 2004, up from $8.9 billion in 1999. Long-term attitudinal changes toward diet and lifestyle among Americans drive product demand, though sales potential has been somewhat hampered by some consumer skepticism.

The market—divided for Mintel’s study into bakery and cereal; bars and snacks; dairy and margarine; and other processed foods—witnessed a peak in sales growth in 2002 but has experienced slower increases ever since. This is in part due to stagnant growth in functional cereals and bakery items, which represent three-quarters of the market.

Mintel forecasts that functional foods will increase at a faster clip over the next five years to reach $12.8 billion in 2009, a 23 percent increase. Growth will be lead by significant breakthroughs in fortification ingredients during this time period.

Denise Purcell is managing editor of Specialty Food Magazine.