Fortified/Functional Packaged Food in Portugal

PROSPECTS

Fitness trends and reduced meat diets inspire consumers to call for products fortified with protein

Continued consumer demand for protein-rich options is driving innovation and growth in fortified/functional packaged food. The popularity of added protein options can be attributed to an increase in consumers embracing both healthier lifestyles and physical exercise.

Fortified/functional trends most popular in dairy, baby food and breakfast cereals

Fortified/functional trends are popular in dairy, baby food, and breakfast cereals. These categories have a history of fortification and therefore consumers have come to expect fortified/functional options to be available.

Dairy sees probiotic boosts, with new additions of fortified kefir and skyr

As can be seen with the success of Activia (from Danone Portugal SA), there is a growing interest in products fortified with probiotics, particularly in dairy products and dairy alternatives. However, manufacturers continue to view this as a niche segment outside of dairy, and the current strategy for leading manufacturers is to position these products as natural (or naturally high in probiotics), and sometimes with added superfoods, such as cacao, rather than looking to probiotics.

COMPETITIVE LANDSCAPE

Danone Portugal SA continues to lead, thanks to success of top Activia brand

Danone Portugal SA continues to lead fortified/functional packaged food in company value share terms, thanks to the success of its high protein and probiotic products. As has been noted in trends, consumers are favouring added protein variants in order to supplement diets which are reduced in meat.

High fibre fortification starting to attract Portuguese consumers

Despite the appearance and success of the noted fortified/functional products with added fibre, there has been little further innovation in this area. High fibre content in food is a trend gaining traction in other western European countries, such as the UK and France, as there is an increasing focus on digestive and gut health and high-fibre and whole foods are seen as being nutritionally superior.

Limited innovation in fortified/functional packaged food gives scope for new products

Manufacturers are seen to be focusing their investments in naturally healthy segments. In 2019, apart from the select categories discussed, the fortified/functional trends are not a widespread phenomenon in packaged food.

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