Lynn Dornblaser, director of CPG Trend Insight at market research company Mintel, says the market is growing but consumers are skeptical and confused about various claims and counter claims.

The firm says that such beverage, bakery, snack, dairy and breakfast cereal products are growing out of the health niche and becoming mainstream, and are being positioned on taste and quality.

The majority -- 30%-- of these products based functional claims on digestive benefits. But consumers in Mintel's "2008 Prepared Foods R&D Trends Survey" said that antioxidants would become the most important functional ingredient, followed by organics, Omega-3 fatty acids, fiber, calcium, probiotics, vitamins, whole fruits, prebiotics and, finally, soy protein, in descending order.

Forty-five percent of consumers in a survey of 820 adults said they eat these foods because they make up for a perception of unhealthy eating habits. Thirty-seven percent said such foods are supplementary to a healthy diet, and 31% say they serve as de facto natural treatments for specific complaints or for weight loss.

Of those who shy away from such foods, 38% said they take a vitamin supplement instead, and 37% said such products are too expensive. Thirty-two percent of consumers don't believe the claims that marketers make for such products.

Also, 69% of consumers polled by Mintel say would like products that help maintain a strong immune system, but only 20% say they buy prebiotic and/or probiotic yogurt products, per the firm.

Mintel says the bottom line is that companies must figure out a way to overcome price and skepticism, and that consumers are looking for a magic bullet in functional food. "Look to Europe and the East for ideas for the next functional ingredient," says Mintel's Dornblaser. "But be mindful of how it should translate to your market."

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