The Status of Functional Foods in China

Japan is the earliest country to produce and research functional foods. Its research aims to change the Japanese people's concept of health and reduce medical expenses, which is also the main reason for the production of modern functional foods. With the good development of the functional food industry in Japan, countries such as Europe and the United States have also gradually become interested in functional foods and begun to pay attention to the development and production of functional foods. The current global development of functional foods is growing more and more.

In recent years, with the increasing number of people with chronic diseases and sub-health in China, as well as people's increasing awareness of their own health and health preservation, functional foods that are both delicious and effective are also becoming more and more popular with consumers; the Chinese government and capital have also begun to pay attention to the research and development of functional foods. According to IT Juzi data, in 2022, the capital market will cool down, and the number of corporate financing events in China will decrease by 23% year-on-year. However, several functional food start-up brands, including Easy Law, Yuan Institute, and Xiuyuan Yangzheng, have bucked the trend and obtained financing. Functional foods have become a new outlet in the food industry.

Definition of functional foods

Different countries or organizations have different definitions of functional foods. At present, China does not have a clear official definition of functional foods, nor does it categorize functional foods specifically. There is no legal name for “functional foods” in the food classification. According to public information, the 36Kr Research Institute defines functional foods as foods that have a significantly higher content of functional factors or activity than ordinary foods, are not intended for therapeutic purposes, and have functions such as enhancing the body's defense functions, regulating physiological rhythms, preventing diseases, and promoting health.

Functional foods can supplement nutrients preventively for healthy people, and can also promote the recovery process for people with abnormal physiological functions. The basic conditions that functional foods must meet include a clear goal (a clear health function); the inclusion of a clear functional factor (an active ingredient); the stability of the functional factor, the presence of a morphological content; being effective when taken orally; being safe and non-toxic with no side effects; and being accepted by consumers as food. In terms of efficacy, functional foods mainly include oral beauty products, fatigue relief products, slimming and detox products, disease prevention products, body rhythm products, and performance enhancement products. In terms of form, functional foods are mainly in the form of gummies, jellies, drinks, protein bars, freeze-dried foods, etc., and are designed to have efficacy while maximizing consumer needs such as taste and convenience.

The development of functional foods in China

The development of the functional food industry in China can be divided into four stages: the initial stage, the growth stage, the crisis of confidence stage, and the revival and development stage. It has experienced a transformation from medicine to food, a spread from being taken by specific groups of people to being taken by the general public, and a trajectory from being purposeful to being developed for everyday use.

The first generation of functional foods are primary functional foods. From the early 1980s to the mid-1990s, the first generation of products included various fortified foods. The function of these foods was inferred based only on the nutrients in the foods, without rigorous experimental proof or scientific evidence. These products were mainly various fortified foods and tonic products.

The second generation of functional foods refers to foods proven through animal and human experiments to have certain physiological regulatory functions. Scientific and realistic, this is the type of functional food that is mostly available on the market in China today.

The third generation of functional foods builds on the second generation, and further research is needed on information such as the structure, content and mechanism of action of functional factors. This type of product is still not widely available on the Chinese market.

At present, there are more than 4,000 relatively standardized health food manufacturers in China, of which more than two-thirds are small and medium-sized enterprises, with no more than six listed companies and no more than 18 with annual sales of 100 million yuan. Of the more than 4,000 health food products, more than 90% are first- and second-generation products, and two-thirds of the product functions are concentrated on immune regulation, anti-fatigue and regulating blood lipids, which to some extent has caused low-level repetitive competition to intensify.

Current research status of functional foods at home and abroad

The research of functional foods is related to the basic theories of various disciplines such as physiology, biochemistry, nutrition and traditional Chinese medicine. In recent years, domestic and foreign researchers have studied the efficacy and stability of functional food factors from the molecular, cellular and organ levels of molecular biology through the interdisciplinary integration of multiple disciplines, the application of knowledge from multiple disciplines and the use of modern scientific instruments and experimental methods, and have developed functional foods with intellectual property rights.

Currently, the third-generation functional foods account for 50% of the functional foods worldwide, with a total value of 200 billion US dollars. Among them, the average expenditure of consumers in Europe and the United States on functional foods accounts for 25%, so the sales of functional foods in the United States, Europe and other countries are also relatively high. In terms of product categories, the third-generation functional foods that sell well in Europe, the United States and other regions are mainly vitamins and minerals, natural products, fish oil, bee products, etc. Compared with China's third-generation functional foods, they are more diverse, cheaper, have a higher technological content, and have a higher content of active ingredients. Japanese functional food products are unique, often adding special functional factors such as probiotics, live bacteria, dietary fiber, etc., to make foods with special functions. Their health benefits are favored by consumers. At the same time, the sales of fortified foods such as fortified infant formula are also high.

Problems with functional foods in China

The main problems with functional foods in China are insufficient basic research, low-level duplication, exaggeration of product efficacy, uneven production areas, excessive product packaging, high prices, and a lack of integrity. In addition, the mechanisms of action, structure-activity relationships, and dose-effect relationships of the functional factors of second-generation products are not yet clear, and there is still some gap in the research and development of third-generation functional foods compared with other countries. In addition, the functions of the approved functional foods are relatively concentrated, generally having the effects of anti-fatigue, immune regulation, and blood lipid regulation, which cannot meet the needs of the majority of consumers. At the same time, the higher selling price of the products also exceeds the acceptable consumption level of most consumers.

The market prospects for functional foods in China are strongly supported by national policy. The “Guiding Opinions of the National Development and Reform Commission and the Ministry of Industry and Information Technology on Promoting the Healthy Development of the Food Industry” (NDRC Industry [2017] No. 19) issued on January 5, 2017, proposed to “conduct evaluations of the health benefits of foods, accelerate the development of infant formula , elderly foods and functional foods that meet the needs of specific populations, support the development of health food, research and development of functional proteins, functional dietary fiber, functional glycogen, functional oils, probiotics, bioactive peptides and other health and health food, and carry out application demonstrations.” National health status. With the continuous improvement of people's living standards, diets are becoming more and more diverse, and dietary structures have also changed. Unreasonable diets and irregular living and working schedules have led to a gradual increase in the number of people in a state of sub-health.

Currently, China is facing the dual problems of overnutrition and undernutrition in public nutrition and health, especially problems such as overweight and obesity, diabetes, hypertension, hyperlipidemia and other metabolic syndromes. It is urgent to actively promote the comprehensive improvement of public nutrition and health, continuously enhance the technical level and development capabilities of precision manufacturing of health foods, and lead with science and technology in targeted nutritional balance design and health intervention, as well as the development of functional health nutrition and special dietary foods. According to data from the China Business Industry Research Institute, from 2016 to 2020, the output of functional foods in China increased year by year, from 506,000 tons in 2016 to 682,000 tons in 2020, and will reach 772,000 tons in 2022. Therefore, the market prospects for the development of different types of functional foods are very broad.

The development of functional foods in China focuses on

the naturalness, safety and effectiveness of functional foods, ensuring that functional foods complete safety testing and effective functional evaluations before entering the market. Attention is paid to molecular-level research on functional foods, which should start with research on the structure-activity relationship, quantity-activity relationship, mechanism of action and possible toxic effects of functional factors at the molecular, cellular and organ levels, and actively develop the third generation of functional foods.

Next, high-tech methods will be used to search for and extract various special functional factors from a variety of natural plant and animal resources. Then, the third-generation functional foods will be produced using an external synthesis method, and methods for detecting various functional factors will be established and developed. Attention will be paid to the research of basic raw materials for functional foods, especially those with Chinese characteristics, such as ginkgo, rhodiola, ginseng, and deer antler. Not only will the functional factors in them be studied, but also the technological processes for separating and preserving their activity and stability, including the removal of some harmful and toxic substances from the raw materials. Emphasizing interdisciplinary and cross-border technical exchanges and cooperation, functional food science is a new discipline that is different from traditional food science and nutrition. It involves many fields such as botany, food engineering, nutrition, physiology, biochemistry, cell biology, genetics, epidemiology, and analytical chemistry. Therefore, the research of functional foods in China should break the shackles of independent departments or majors, and carry out in-depth and systematic research on functional foods through joint research and development among universities, scientific research institutions, and enterprises.

The application of new technologies and processes in functional foods should be strengthened, such as biotechnology, membrane technology, extrusion molding technology, microwave technology, cold sterilization technology, supercritical sublimation technology, ultra-micro technology, modern analytical testing technology, etc., especially the introduction of biotechnology to promote the in-depth research and development of functional foods. Since the market for functional foods in China is relatively lagging, it is necessary to conduct an in-depth analysis of the problems involved, and in light of the development trends of functional foods at home and abroad, apply functional factor resources to the development of functional foods, and develop a third-generation functional food with Chinese characteristics, laying the foundation for promoting the development of functional foods and the implementation of the national strategy of “Healthy China”.