Functionally Fortified Infant Nutrition

The ‘functional’ movement has finally caught on in the U.S. infant and toddler nutrition segment.

By
Joanna Cosgrove
Online Editor

In the last decade, the U.S. food landscape has been reshaped by the consumer penchant for healthy food choices, be they organic, natural or even functionally enhanced. It’s taken some time, but the trend has finally spilled over into the infant and toddler nutrition segment – to the delight of parents desiring to feed their children as well as they feed themselves.

The push toward healthier and functionally enhanced infant foods and formulas can be attributed to a variety of reasons, among them: countering the increased incidence of toddler obesity/tooth decay, formulaic advancements, and mounting acceptance of “enhanced” food products.

In food, drug and mass merchandising (FDM) channels (excluding Wal-Mart), baby food and drink sales were estimated at just over $3.5 billion for 2006 (Baby Food and Drink – US, October 2006, Mintel International Group), representing a decline of approximately 11%. The market is ultimately confined by the number of children ages three and under in the U.S. during any given year. While the number of children this age grew nearly 7% between 2001 and 2006, the increase was not sufficient enough to keep FDM sales above the rate of inflation.

Despite the setback, sales for powder and ready-to-drink formulas posted slight increases from 2004-2006, to the detriment of liquid concentrates. According to Mintel’s research, the powder formula sector has directly benefited from the launch of products containing docosahexaenoic acid (DHA) and arachidonic acid (ARA), as well as other nutrients that address some infant digestive problems.

In the toddler food segment, it would appear manufacturers have attempted to prolong the time moms spend in the baby food and drink aisle by creating more toddler-specific products – and so far, this approach has been successful in growing the segment. According to Mintel’s survey of moms who used or planned to use toddler foods, fortification is the most common reason for doing so. Indeed, 71% said they did/planned to use toddler foods because these products are fortified with vitamins especially for toddlers. Six in 10 moms said it was because these foods are easier for toddlers to hold/eat. And, more than half of those surveyed (52%) said it is because these foods are easier to prepare for the child.

In addition, while there is most certainly an interest in organic baby products, the term “all natural” has struck a resonant chord. Mintel’s consumer research revealed that some 61% of moms of kids three and under say “all natural” is a “very important” attribute when selecting a food or drink for a child under three.

In terms of market leaders, Mead Johnson, the maker of formula brand Enfamil, accounted for an estimated 35% of the 2006 FDM market share (excluding Wal-Mart), followed by Ross Products, makers of Similac and Pedialyte, and Gerber.

Market Trends

According to Lynn Dornblaser, director, Custom Solutions Group, Mintel International, Chicago, IL, infant nutrition products generally fall into two main areas: those with significant levels of fortification and those that focus on the inherent goodness of the ingredients. “For the most part, virtually all baby formulas (liquid or dry) focus on fortification,” she explained. “The point of these products is to provide optimum nutrition to promote healthy growth and development for infants. Therefore, it is essential that the products be fortified with the ingredients that are naturally found in breast milk and ingredients that help promote good growth and development.”

Functionally speaking, Barbara Katz, president, HealthFocus International, St. Petersburg, FL, said it is about time that the U.S. catch up to the rest of the world, especially when it comes to infant foods and formulas. “The U.S. was one of the last countries to approve DHA, which has been found overseas in formula for years. The U.S. doesn’t always lead the market in formula additions,” she said, adding that an overall market shift toward healthier food choices helped ease the infant segment transition. “Pure and natural is the chief mindset of most parents and more so for parents of infants. When infants are on formula or breast milk or a combination of the two as sole source of nutrition, moms take a lot of direction from their doctor and from other friends and family, trusted sources in the communication chain that shouldn’t be discounted.

Ms. Dornblaser added that the use of nutrients such as DHA and ARA in formulations is extending beyond formula to first meals, toddler foods, etc. “Perhaps parents become used to seeing these fortification ingredients in foods,” she said. “In addition, companies are working hard to ensure that babies get all the nutrition they possibly can.”

“When a child starts on solid foods, the benefits of natural and pure are at the top,” concurred Ms. Katz. “When kids get older and more selective and more adamant about making their own choices, moms get more interested in getting added nutrition into them at every chance they can so fortification takes on greater importance.”

In the toddler foods, or “first foods,” segment there’s typically a greater emphasis on the inherent goodness of the ingredients, hence the copious presence of pureed fruits and vegetables. The category has evolved to additionally offer organic varieties as well. “In the U.S., we are seeing more products with organic positioning, which is something that is more well-established in other parts of the world, especially in Europe, where most baby foods are organic,” said Ms. Dornblaser. In fact, she added, the biggest trend in the U.S. baby food segment is the sheer number of organic products on and entering the marketplace. “Many of those organic products we see are very premium, as they are also sold frozen,” she said.

Pediatric Probiotics…and Prebiotics

On a broad mass-market level, probiotics seem to be the ingredient du jour. In November, for instance, the American Academy of Pediatrics held a symposium entitled “Probiotics in Pediatrics: Modulating Gut Immunity and Enhancing Long-Term Health.” Renowned experts in pediatrics, nutrition and gastroenterology addressed how intestinal microflora influence a child’s developing immune system, as well as how disruptions to this normal microbial balance impact infectious, inflammatory and allergic diseases in children.

Among the topics discussed was the role of intestinal microflora in relation to immunity. W. Allan Walker, M.D., a Conrad Taff professor of Nutrition at Harvard Medical School in Boston, asserted that public health measures such as pasteurization and sterilization of foods, increased use of antibiotics, and the rising number of cesarean sections have led to a decreased exposure to microorganisms. In infants, he said, this can cause an increased disease burden as the mucosal immune system fails to develop properly and the timing of appropriate colonization correlates with development of host defenses and prevention of diseases. Inadequate colonization, he asserted, can be overcome by the use of probiotics as “surrogate” colonizers.

Martin G. Martin, M.D., a professor of Pediatrics at David Geffen University of California Los Angeles School of Medicine in Los Angeles discussed how studying the role of the intestinal microflora in health and disease states is crucial due to a rise in allergic and autoimmune disorders in infants (or children). Dr. Martin discussed the evidence for introduction of safe bacteria to infant nutrition, and highlighted how certain probiotics have potential benefits on the gut and immune functions that are at a critical stage in development in infancy.

Not all probiotics are created equal, however. Erika Isolauri, M.D., a professor in the department of Pediatrics at University of Turku in Turku, Finland, narrowed the concept of probiotics to its role in pediatrics and discussed how this requires a focus on several specific strains of bacterial species. For example, recent research confirms that breast milk contains bifidobacteria and specific bifidobacterium species that may promote healthy microbiota development. Bifidobacterium species have been specifically studied in the pediatric population and have shown positive benefits in GI tract infections and antibiotic-associated diarrhea. The challenge, moving forward, is to explore the mechanism of how the specific strain has its benefit in order to identify the most appropriate host.

In May, Nestlé unveiled Good Start Natural Cultures, a routine “starter” formula for infants 0-12 months, containing the probiotic bifidobacterium lactis (designated as BIFIDUS BL) to help support a healthy immune system. The powdered formula is made with 100% whey that is partially hydrolyzed for easy digestion, and includes DHA and ARA for brain and eye development.

Beech-Nut Nutrition Corporation, St. Louis, MO, was one of the first major baby food makers to introduce a family of baby foods formulated with DHA and ARA. Last April, Beech-Nut launched a premium line of baby foods - Good Morning and Good Evening – that take into account the benefits of feeding infants based on the time of day and their nutritional needs. The line consists of two 8 oz. dry cereals and five varieties of 4 oz. jarred food for each of the Good Morning and Good Evening lines.

“Much like adults, infants can benefit from a healthy breakfast that’s made with whole grain and soluble fiber to encourage a steady release of energy throughout the morning to help keep them alert and eager to learn and play,” said Dr. Richard Theuer, a pediatric nutritionist and nutritional consultant to Beech-Nut, who is also adjunct professor of food science at North Carolina State University and a professor of nutrition at the University of North Carolina at Chapel Hill. “At nighttime, because babies grow more when they are resting, they need a diet containing high quality protein to help build muscle.”

In addition to high quality protein to help keep babies calm and relaxed during the evening, Good Evening is formulated with the prebiotic inulin to aid digestion by stimulating the growth of “good” bacteria in a baby’s digestive system. Beech-Nut is the first major brand of baby food and cereals to include prebiotics.

“Moms are looking to provide their child with every advantage they can offer, especially when it comes to food and nutrition. They want their infants to feed well and develop good eating habits for the future,” commented Dennis Warner, Beech-Nut’s vice president of marketing. “Moms are looking at it from both angles -- they want the nutrition with less of the bad stuff (e.g. added sugars, excessive sodium) and more of the good, above and beyond what comes inherently with the products' base ingredients (e.g. potassium in bananas). ‘Above and beyond,’ for example, can come in the form of additional benefits like ‘supports brain and eye development,’ as delivered by DHA.”

As with most market segments, true innovation usually originates in market niches. Nurture, Inc., the Brooklyn, NY-based parent company of Happybaby, the first nationally-distributed fresh frozen organic baby meals, launched Happybellies, the first baby cereal with probiotics and presently the only organic baby cereal with DHA. The line’s other claim to fame is that it is the only baby cereal recommended by renowned pediatrician and best-selling author, Dr. Robert Sears, MD, who worked with Nurture, Inc. to develop its range of healthy meals for babies and toddlers.

“The first time you lay eyes on your new born you immediately look for 10 fingers and 10 toes,” said Dr. Sears. “What you can’t see is how babies are developing internally. Strong brain, eye and immune advancements at the earliest stage possible are crucial building blocks in the overall good health and wellbeing of children. Happybellies cereals easily and conveniently provide the necessary DHA and probiotics to achieve solid early development.”

“The stakes are higher today; food allergies are increasing in a number of children and poor eating habits are developing at an early age. Further, deficient immune systems, asthma, attention problems, and early age obesity seems to be more common than ever before,” added Shazi Visram, CEO and founder, Nurture, Inc., who said the Happybellies formulations are part of a “necessary solution in easing the myriad of health problems children are susceptible to today.”

The three Happybellies baby cereals include Oatmeal (made with organic whole oats), Rice (made with organic brown rice) and Multi-Grain (made with organic oats, organic quinoa and organic amaranth). All varieties are fortified with essential vitamins and minerals, such as iron, folic acid and zinc. Along with DHA, the products contain a range of probiotics strains, including L. acidophilus, bifidislactis and L. bulgaricus. All Nurture, Inc. products are USDA certified organic, free of pesticides, chemical fertilizers, genetic engineering, soy free, dairy free and produced in a nut-free facility.

As the Market Grows Up...

Now that the infant nutrition segment has finally embraced functional fortification beyond the time-tested use of standard vitamins and minerals, the future of the segment looks promising – at least from a product development point of view.

The Mintel data outlined continued challenges for the baby and toddler food and drink market due to the modest increases in the number of births each year and the decline in number of women in their prime childbearing years. However, the good news for the industry is the fact that birth rates for women over 35 are increasing, translating into more moms with higher levels of discretionary income – a trend that could fuel the market for premium baby products.

The ongoing childhood obesity epidemic will also factor into the future of baby food and formula offerings. Mintel said several baby food and drink players are working to address the issue of infant/toddler obesity through educational efforts. However, Mintel expects to see infant/toddler weight control used as a more direct marketing platform in the baby food and drink market within the next five years.

According to a fall 2005 Simmons National Consumer survey, 40% of households with children aged three and under use baby formula, while 41% use baby food/cereal/juice. Further evaluation revealed that strongest usage is found in households with children one year and younger, however, usage of these products falls among households with toddlers aged three. The growing number of products made specifically for toddlers will likely increase the percentage of households using “baby foods” over the next five years.

Mintel predicts FDM baby food and drink sales will grow to over $3.6 billion by 2011. This figure represents an increase of 1% over 2006 in current terms, but a decline of 15% in constant terms. Should the price of organic products decrease to just a slight premium over conventional goods, sales could be higher than expected. Conversely, if breastfeeding becomes more prevalent or extensive, sales could be lower than expected.