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NewswireToday - /newswire/ -
Atlanta, GA, United States, 01/08/2008 - TSG today announced the release of an introductory study on "Targeted Foods", an area of rapid growth in the functional food and beverage category. TSG projects that "Targeted Foods" will reach $76. 5 Bn by 2012.
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TSG defines “Targeted Foods” as a subset of the broader category of functional foods. “Targeted foods” will reach $76.5 Billion, or 35% of the functional foods category by 2012.
“Targeted Foods” has broad implications for the future of the food and beverage industry. The rise of chronic health conditions coupled with increasing consumer awareness of the connection between diet and health are creating high demand for products other than medicine that can address individual concerns. TSG believes that five areas which will be highly “targeted” from a population or health need will be weight management, cardiovascular health, arthritis/joint health, digestive disease, and anti-aging/beauty.
Established food and beverage giants as well as emerging companies are rapidly entering the “Targeted Foods” category with existing products being enhanced to meet specific needs, and novel products being launched that are targeted to specific populations. “Targeted Foods” are meeting these conditions in three clear ways through “Targeted Foods”: 1) health/disease conditions such as Celiac disease, arthritis, cardiovascular disease and digestive health, 2) physical/mental states i.e. performance, beauty, and brain function, and 3) age/gender i.e. women, menopause, and infant nutrition. Examples of “Targeted Food” products range from bread with soy isoflavones for menopausal women to soda with glucosamine for joint health.
According to TSG, the global functional food and beverage market is poised to grow from $59.6Bn in 2004 to $218.5Bn in 2010. TSG expects that “Targeted Foods” will comprise $54.6 Billion to $76.5 Billion, or 35% of the functional food category by 2012. Beverages are the largest product category within targeted foods, encompassing 60% of targeted food products, and will continue to drive innovation.
TSG believes that “Targeted Foods” is of significant importance for the established players in the food and beverage industry due to its premium pricing, higher than average gross margins, highly attractive growth rate, and relevance to consumers’ emerging health needs. TSG expects that transaction volume will increase over the next three years through licensing, alliances, mergers, and acquisitions, and recommends that emerging companies in “Targeted Foods” establish a clear growth agenda.
About TSG
TSG (tsg-partners.com) is a specialty advisory group that combines growth strategy and corporate finance to create shareholder value for companies in the life sciences, biotechnology, healthcare, and wellness sectors. TSG’s approach is based on a combination of independent analysis of the markets and customer needs and a deep appreciation of the technology landscape and capital markets environment. TSG’s focus on growth aims at bringing together growth strategy and transaction insight to build sector leaders. TSG has presence in Atlanta, Boston and Silicon Valley and was founded in 2001 by Panna Sharma.
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rebecca[.]tsg-partners.com 
