Formulating for Functional Benefits

Today’s eaters are looking for more than basic nutrition. And instead of reaching for a supplement to optimize health and reduce the risk of disease, they are instead seeking new food products formulated with functional ingredients. Functional foods, loosely defined as foods or beverages with the power to beneficially affect one or more target functions in the body to improve health and well-being, are not a new phenomenon—food companies have been fortifying a variety of products with vitamins and minerals for decades. Yet, Renee Lee Wege, trendologist and senior publications manager at Datassential, a global food and beverage intelligence platform, says the latest market data suggests that consumers are yearning for more than just old-fashioned “better for you foods.”

“I’d say we are in version 2.0 of functional foods and beverages,” she says. “Consumers are now looking for really niche products that can kill two birds with one stone, so to speak. They want to get energy and sustenance and solve for more personalized needs like testosterone support for men or help through menopause for women.”

This next frontier of health-conscious eating shows that the line between the grocery store and the pharmacy is starting to blur. Instead of the addition of zinc or some vitamin D to a food or beverage, these products instead boast ingredients including collagen, prebiotics, nootropics, cannabidiol, adaptogens, or even supplements like Estro-G-100.

I’d say we are in version 2.0 of functional foods and beverages.

Renee Lee Wege

Datassential

Chris Peruzzi, founder and chief operating officer at The Functional Chocolate Company, says many of these popular ingredients have been available in health food stores or supplement formulations for a long time.

“There are so many functional ingredients that you now see on social media as new that have actually been on the shelf for 30 years,” he says. “But, today, people want more for their money and for the calories. They don’t want to have to just take a single vitamin C or magnesium pill. They want to have a good-tasting food that will provide support for some ultimate function they are going after. That’s where the market is going.”

Desired Benefits, Functional Ingredients

What ultimate function consumers seek can and does vary. Datassential’s current trends put heart health at the top of the list, followed by immune support, energy, gut health, and hydration. But many consumers are also interested in cognitive support, as well as foods that can help with stress or balance hormones.

That said, Hannah Ackermann, vice president of marketing & nutrition affairs at ingredients company COMET, says one of the biggest trending functional ingredients right now is protein. It seems that new products, as well as old standards, are hitting grocery store shelves with added protein every day.

While protein is great, the vast majority of Americans meet their protein goals without the addition of protein to products.

Hannah Ackermann

COMET

“It feels like protein is everywhere right now. There’s a huge demand,” she says. “And while protein is great, the vast majority of Americans meet their protein goals without the addition of protein to products. In fact, many Americans are likely over their protein goals.”

Joanne Slavin, a professor in the Department of Food and Nutrition at the University of Minnesota, Twin Cities, who specializes in dietary fiber and protein needs across the life cycle, agrees.

“Protein is definitely having a moment right now, both in supplements and food products, but, for most people, it’s just extra calories,” she says. “And when we think about functional foods, we should be asking ourselves what people need, what nutrients they are actually deficient in so we can create the foods that are as functional as possible for people.”

When we think about functional foods, we should be asking ourselves what people need, what nutrients they are actually deficient in so we can create the foods that are as functional as possible for people.

Joanne Slavin

University of Minnesota, Twin Cities

Hannah Holscher, a professor of nutrition at the University of Illinois Urbana-Champaign, says fiber is one of those nutrients with multiple functional benefits, including two on the Datassential most wanted list: gut and heart health.

“Different types of fiber help with different things, including bowel function, lowering cholesterol levels, and preventing cardiovascular disease,” she says. “For example, there are different fibers that we consume as part of a meal that can help blunt the glycemic response to carbohydrates and the byproducts created when microbes in the microbiome break down different fibers, like short-chain fatty acids, could also be contributing to insulin and natural glucagon-like peptide 1 (GLP-1) signaling. But most Americans, at least, aren’t getting enough dietary fiber.”

Certainly, a look at up-and-coming research terms, says Wege, does show that consumers are interested in fiber—and many are looking at “fibermaxxing,” or increasing fiber intake by building meals and snacks around fiber-rich foods like fruits, vegetables, beans, legumes, nuts, and whole grains.

“Fiber is something we can see becoming the new ‘protein,’ where everything right now calls out protein counts and high protein, as well as uses fiber-rich ingredients like psyllium husk,” she notes.

But while protein and fiber may be “everywhere” in today’s food formulations, some consumers may not see these options as functional foods, necessarily. Instead, much of the hype and social media focus is on other types of ingredients, like mushrooms. Paul Lazazzera, co-founder of Benni Pops, a company that offers organic, dairy-free frozen pops leveraging mushrooms and other adaptogens as ingredients, says that many consumers are keen on ingredients like lion’s mane and cordyceps to increase energy levels and improve cognitive function.

“We live in a society where people are very focused on how much you produce and how efficient you are at getting things done,” says Lazazzera. “So, a mushroom like lion’s mane can help with that—helping you think more clearly … and consumers appreciate the ability to get that kind of ingredient in a tasty product.”

Considering Health Claims

While the idea of indulging in a frozen fruit pop, chocolate bar, or tasty treat with brain, heart, or gut health benefits is appealing, most functional food companies are somewhat cautious with the claims they make about their products. Peruzzi says that The Functional Chocolate Company’s products, which include a blend of a dozen or so different ingredients to support a specific need, like stress relief or improved sleep, are positioned as dietary supplements.

“These products say dietary supplement on the front of the package. We did that for several reasons. One being that, because of the ingredients we use, we want to be able to use the structure function statements covered under those ingredients,” he says. “As a dietary supplement company, we can’t say our hot chocolate will help with your menopause-related issues. But we can say that Estro-G-100, one of our patented ingredients, has these basic functions and can do that.”

Benni Pops’ products, similarly, are categorized as supplements. Lazazzera says that when considering claims, the company focuses on the ingredients in each product and how it “may” improve function when taken consistently.

“Any claims we make have to come with that kind of ‘may’ caveat,” he says. “We can’t say that this ingredient is going to cure a disease or will, for sure, have an impact on you. But we can say there’s evidence that this ingredient ‘may’ help with the function you are looking for.”

Consumers today don’t trust what’s on the front of a product. They are reading the ingredients.

Rob Dongoski

Kearney

Yet, Ackermann says there is increasing concern regarding “fairy dusting,” or formulating products that use a large number of ingredients or only small quantities of desired functional ingredients in order to appear more appealing to consumers.

“In the prebiotic fiber market in particular, you’ll see people don’t add an efficacious dose of the ingredient in something like a soft drink because they are worried about tolerance issues,” she says. “If you do that, there’s no chance that people will see the benefits they want.”

She added that she would be uncomfortable making any health claims if a particular product happened to have less than the clinically studied dose of the functional ingredient. Rob Dongoski, global lead, agriculture and food, at Kearney, a global management and consulting firm, says that today, many informed consumers are wary of health claims in food and beverages in general, especially those printed on the front of a package. More and more, savvy buyers are looking for particular functional ingredients based on their individual health needs or relying on apps like Yuka, which can scan product barcodes and provide a health score for products.

“Consumers today don’t trust what’s on the front of a product. They are reading the ingredients. They are looking things up. And they are looking for specific things,” Dongoski explains. “The key is that consumers, especially younger consumers, are very intentional about their food and looking for specific ingredients and personalized offerings.”

Threading the Needle

Currently, the hottest segments of the functional foods market are beverages and indulgent foods and snacks, says Wege. Members of Generation Z, who are less likely to drink alcohol than their forebears, are looking for enjoyable options that also support health. Yet, while the functional foods market is thriving, it’s clear that food and beverage companies must contend with a unique tension: how to court health-conscious consumers who are looking for enhanced nutrition while also shying away from ultra-processed foods. Slavin says this tension is natural as many nutrients and functional food components already exist in whole foods, offering their unique benefits as well as working in complement with other nutrients.

“Trying to determine whether a food is good for you can get really confusing,” she says. “And I understand why people ask if some of these functional food products are a drug or a food. Because, in many cases, it’s kind of a combination. But just because a product is fortified or enriched, or contains a supplement, does not immediately make it unhealthy.”

Dongoski believes that food and beverage companies can address this unique dilemma by creating new side brands that take a popular product and add some enhanced nutrition, yet keep the ingredient stack short and sweet.

“You could have a chip that’s been around forever that people now call out for being ultra-processed and offer a simpler version with that extra functional component but make sure it has five ingredients or less,” he says. “If consumers can recognize every ingredient, they are going to feel a lot more comfortable about eating it.”

Ackermann agrees. “In an ideal world, we’d all be eating a perfect diet and not have to consider things like money or availability,” she says. “But that’s not reality. We need processed foods for convenience and shelf stability. So, as we move forward, we need to stop demonizing processed foods. Instead, we should be thinking about how to make processed foods better.”

That may mean focusing less on the functional ingredient du jour, and thinking more about how to make products as nutritious as possible.

“There’s a role in our diets for a protein bar or boxed macaroni and cheese,” she says. “And, with the right ingredients and formulations, we have the power to make these foods healthier and more functional.”ft