Phood And Bepherage News

[pineda]

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Phoods" Market to Reach $20 Billion, Says Report

(from report by progessivegrocer.com)

January 11, 2005 -- New York

As an increasing number of studies point to the relationship between diet

and health, products classified as "phoods," or those that combine the health benefits of

foods with pharmaceuticals, are experiencing healthy market gains, according to a new

report by market research publisher Packaged Facts.

The study, "The New U.S. 'Phood' Market," predicts that total U.S. retail sales of such

food will continue to grow at a healthy pace through 2009, reaching $20 billion by 2007.

As the market develops, annual percentage gains will ramp up from 7 percent to 8 percent

-- and they could be much higher, depending on the success of mainstream cereal and juice

marketers to pull in consumers with formulations targeting specific health conditions.

The report examines all aspects of the "phood" and "bepherage" industry, including

products that provide a positive pharmaceutical benefit beyond basic nutrition. Packaged

Facts classifies such items into the categories of traditional, or "inherently healthy"

(oatmeal, whole grain breads, cranberry juice), fortified (orange juice with plant sterols),

and "designer" (soy protein bars, smart spreads).

"Phoods and bepherages offer significant competitive advantages to marketers," said Don

Montuori, acquisitions editor for Packaged Facts. "In mature food and beverage

categories-such as breakfast cereal and juice-marketers can use medically beneficial

formulations to strengthen brand differentiation, expand market share, draw new users,

and increase consumption among established users."

[groovehouse]

that's phreakin' crazy...