France leads the way in nutraceuticals

France is a leading destination for investment in the functional foods industry and the country’s market segment was valued at €900 million in 2006, with an estimated annual growth rate of more than 10%.

The global market for functional foods is currently estimated at more than €100 billion, which is roughly 5% of the total agri-food industry market. According to an Ipsos survey published in October 2007, 52% of French consumers are concerned about the effects on their health of the food they eat. The market for foods developed specifically for their health benefits is growing dramatically.
The French government supports research activities through an R&D tax credit that is currently the best of its type in Europe. This credit reimburses up to 50% of R&D expenditure for the first year (up to €100 million), 40% in the second year and 30% in subsequent years.

Some of the innovative projects that are currently being developed in this sector involve Danone and Lactalis, which are at the forefront of innovation in the €400-million bioactive dairy-products sector. Japanese and US companies also have an important market presence. Shiseido is developing an anti-wrinkle yogurt with aloe vera, while Knorr (Unilever) has launched Knorr Vie (a fresh fruit and vegetable drink) and the Proactive range of yogurts and drinks, which reduce cholesterol, according to the company.