Pharmaceutical Foods & Beverages Market To Reach $20B By 2007.

Increasingly, studies are showing that many major illnesses are diet-related-and consequently diet-preventable-food has become an integral part of self-care plans, and products classified as “phoods,” or, those that combine the health benefits of foods with pharmaceuticals, are experiencing healthy market gains.

According to “The New U.S. ‘Phood’ Market,” an exclusive new report by market research publisher Packaged Facts, total U.S. retail sales of phoods 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% to 8%-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.

This Packaged Facts report goes on to examine all aspects of the “phood” and “bepherage” industry, which includes 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 also offer significant competitive advantages to marketers. 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,” said Don Montuori, Acquisitions Editor for Packaged Facts.