Functional foods are no longer a lifestyle option but fast becoming an integral part of our daily diet. Manjira Sharma explores  Increasingly, the medicine of the future is being defined not by what cures we can propose for deadly or chronic diseases, but what preventive measures one can adopt early to avoid the occurrence of such diseases. Regular exercise, meditation, adequate rest and a balanced diet are emerging as the prime factors that define good health and well being. Moreover, a growing awareness of food items and ingredients that promote health or offer particular health benefits has seen a surge in recent years. More and more people have opted for both lifestyle and dietary changes; such nutritional items like soya flour, probiotic yogurt, green tea, etc are no longer restricted to the plates of celebrities or health food fanatics but have become staple items of everyday food intake. Most of these items fall under the banner of ‘Functional Foods’ and are of particular interest to developing nations who can tap into this growing food segment.While there is still some ambiguity regarding the exact definition of functional foods, they may be defined as food products that impact certain physiological functions, thereby offering health benefits. These food items are specially fortified to meet certain health targets. As researchers discover newer varieties of herbal compounds that have health benefits, the functional food industry is busy trying to integrate them in different kinds of food so that they can help prevent or control chronic ailments. Functional foods on diabetes, osteoporosis and digestive disorders are being developed and many of these are already available in the market. Probiotic yogurt and fibre-enriched bread are already quite popular. Marico has also launched a new brand of healthy cooking oil as a functional food. Despite such broad definitions, there are often doubts about the categorisation of functional foods as distinguishing them from dietary supplements and herbal medicines is sometimes difficult; also cultural perceptions vary. Are they nutraceuticals? Should they be defined as medicines or conventional food items? Actually there is some grey area regarding functional foods. Unlike medicines that are used to treat or prevent particular physiological conditions, functional foods only inhibit or prevent the risk of certain diseases: they do not offer a cure for particular ailments. One important thing to bear in mind is that they require fortification of existing foods through food processing. Functional foods is a result of technological intervention during the processing stage that includes such products as diary products fortified by certain lactic acid bacteria, genetically modified golden rice, and planting materials derived through breeding like orangefleshed sweetpotato. Explaining the confusion between the terms functional foods and neutraceuticals, CL Rathi, MD, Advanced Enzyme Technologies Ltd, says, “Functional foods usually claim to give the consumer some health benefits, for instance, products like yogurt, oat meal, orange juice, etc. Nutraceuticals on the other hand is all about ‘special nature-based ingredients’ which is consumed like a medicine. These include products like Chavanprash, Revital, Proteinex, etc.” Here we must keep in mind that some degree of basic fortification, such as salt iodisation, is no longer considered as functional food. One of the reasons for the growing popularity of functional foods is the convenience associated with such food intake. It has now been proved that drinking a glass of beetroot juice a day can help control hypertension substantially. But this is often not a suitable solution. According to Swaminathan Subramanian, head of business development in Rheoscience, a Danish firm promoting functional foods, convenience plays a huge role in the popularity of functional foods. Nutraceuticals include functional foods and dietary supplements. It comprises functional ingredients that provide particular nutritional benefits. Pierre Socha, Senior VP, Corporate Strategy, Avesthagen Ltd agrees with this when he says, “Nutraceutical is a pervasive term for products that offer health benefits that reach beyond basic nutrition. Nutraceuticals should demonstrate to have a certain physiological benefit and/or reduce the risk of chronic disease/disorder, thereby supplementing health through the ‘promoting’ or ‘preventive’ approach.”  As per an Ernst & Young report, the Indian Nutraceutical market is pegged at $1 billion and growing at a CAGR of 18 per cent, against the global market CAGR of 7 per cent. The Indian nutraceutical market is estimated to be around $270 million, excluding vitamin formulations. There is tremendous incentive for pharma companies to foray into the functional foods segment. They sell at higher prices and involve more robust profits and this makes it a highly profitable segment. Functional foods retail at 30–500 per cent higher prices than ordinary food products and this makes it highly lucrative. Studies have proven the role of bio-technology in developing functional foods for improved health effects of staple food items like high-iron rice, high vitamin A rice, improved oil content in oil crops, improved protein content in legume, etc, especially for developing nations. Confusion over the exact label of functional foods poses a challenge in terms of defining its market size. However, its global market size has been pegged at anywhere between $60–80 billion. Though a large chunk of the global market for functional foods remains predominantly in Japan, Europe and the US, greater prosperity and growing awareness of health related issues, especially in Brazil, China and Russia, has expanded the markets in these nations too. A World Bank study pegs the market for functional foods to far exceed that for organic foods. The global functional foods sector grew by nearly 10 per cent in the past few years. This has led to a burst in activity with developing countries trying to cater to the sudden increase in export demand of functional foods. The functional foods market in India is very young and in formative stages. It would be too early to comment upon the overall size of the market as it is highly fragmented and has multiple dimensions to it. Functional foods afford a great opportunity for developing nations, armed with traditional knowledge of ayurveda and herbal treatments. Countries like India, China, Vietnam, etc, can also offer competitive prices owing to cheap labour. For example, the cost of soybean production in northeast China is almost 10 per cent cheaper than in the American mid-west. Further, individual governments can offer sops to encourage investments in plants and research labs. In India too, competition is shooting up with several players like Amul, Avesta Good Earth and Mother Dairy foraying into the functional foods segment. Swiss major Nestle launched its probiotic curd Nestiva in 2007 and plans to diversify the probiotic range in other dairy products as well. The company plans to launch more dairy products such as milk for the lactose-intolerant and for diabetics. Nesvita alone contributes 30–40 per cent of the revenues from the curd segment for Nestle. While yoghurt and yoghurt-based products are growing at 14–15 per cent, probiotic yoghurt is growing at 25 per cent globally. 2007 also saw the launch of Amul’s probiotic lassi and ice-cream. Probiotic comprises foods that contain the good bacteria that is normally found in our body. Not only do these organisms help is digestion, they also protect the body against harmful bacteria. While probiotic fortification has been restricted to yogurt in India, in the US it has been extended to granola, candy bars, cereals and cookies. Avesta Good Earth, the functional foods division of leading life sciences company Avesthagen, has also launched products like breakfast cereal (museli) and snacks (museli bars) to tap the functional foods segment in India. Mr Socha says, “Apart from the health food range, Good Earth’s functional foods range is an extension of Avesthagen’s ‘food for medicine’ programme, wherein plant-based, clinically-validated bioactives are integrated into convenient consumable formats leading to preventive personalised healthcare.” Under the functional foods range, Good Earth Whole Wheat Cracker with Teestar was launched last year as India’s first ever clinically-validated functional food targeted at pre diabetics. Teestar has excellent blood glucose modulating properties, and has generated tremendous response and global interest from consumers, the media, food industry practitioners, and retail trade worldwide. “Also, work is underway towards integration of bioactives into certain interesting categories to capitalise on the expected growth of the functional foods market in India, which is evident from the changing societal trends towards overall wellness and the entry of established players in the health and wellness space,” adds Mr Socha. In addition, the company plans to take these products to the overseas markets such as UK and EU, the Middle East, and the US. While there is no denying the health benefits such foods afford or the huge opportunity that exists for developing nations to tap into this lucrative segment, experts, nutritionists, scientists and farmers have often expressed dismay and doubts about the real benefits of functional foods. While developing nations like India may be a rich source of raw materials (owing to its biodiversity) and cheap talent required to develop such functional foods, there are many challenges in building a robust functional foods industry here. The substantial costs involved in food processing and export (search for markets, product research and certification, meeting regulatory demands, consumer research, and public relations) can be an inhibiting factor. Below are some of the challenges faced by the functional foods industry: Inadequate regulatory framework: Lack of strong regulatory bodies for certification to meet international norms can go a long way in restricting the growth and acceptability of the industry abroad. Consistent enforcement and proper checks and balances are mandatory for the success of the functional foods segment. A credible system can also help to provide a level playing field that fosters competition and encourages innovation.
“Till recently, the sector was governed by two laws, namely, Prevention of Food Adulteration Act and the Drugs & Cosmetics Act; and there was no proper regulatory framework associated with nutraceuticals. We expect FSSA (Food Standard & Safety Act) to replace these by the end of 2009, thereby providing a comprehensive regulatory framework governing the quality and claims of nutraceuticals, standardising the labelling requirements and marketing, providing guidelines for manufacture, storage and transportation, etc,” says Mr Socha. Underdeveloped facilities: The launch of a new functional foods product requires much investment in R&D and scientific know-how. Lack of high-end research facilities and capabilities often dilutes the claims of Indian products in the strict markets abroad where the certification standards are more stringent. This also impairs the ability to identify functional compounds, spot potential changes during processing, and conduct clinical trials—all of which are extremely important steps to gain approvals and certifications.
 Maintaining balances: While it’s true that developing nations have a bio-diverse culture, proper management and replenishment of these precious resources is imperative to maintain the fragile ecological systems that nourish the earth. Proper guidelines need to be enforced to avoid drastic reductions in plant populations and maintain local plant balance.
Human rights: Further, there are fears that by opening the doors to foreign food processing companies, we are becoming increasingly dependent on them for life’s essentials. Also, most of the poor in the developing countries earn their livelihood by tilling the soil. Bringing in outside competition will wipe them clean as they do not possess the skills, resources or technology to compete with the bigger players. For example, India’s dairy cooperatives—chiefly run by rural women—would be hard pressed to withstand the challenges posed by Nestle or Procter & Gamble. Even as the debate against functional foods rages unabated, critics and cynics have expressed doubts about their efficacy and claims. Many allege that lack of sufficient regulation has led companies to make false health claims without providing the required evidence to support such claims. Some physicians argue that certain claims that include lowering cholesterol levels or prevent cancer can mislead patients and lead to potentially dangerous consequences. Many spokespersons from third world and developing nations argue that if the money that is invested to develop and successfully launch a functional foods product is used instead for true sustainable development and promotion of local agriculture, the benefits would improve exponentially. Most important is the argument that owing to their high costs, such foods will forever be out of reach of people who most need them. While fortifying food to meet the challenges of malnutrition is a valid argument, it falls on its face when one considers that the malnourished have no access to the miraculous ‘golden rice’ that is the supposed cure for this affliction. Despite conflicting views and realities, there is no denying the tremendous scope that lies in the functional foods domain. It allows corporate to leverage on the growing need amongst the affluent to adopt readymade health solutions that can help them lead healthier, more meaningful lives. For the consumers, it offers a convenient and easy-to-adopt dietary option that promises them great results at affordable prices. |
