EI estimates that the global fortified F&B market climbed to about $97 billion in 2006, to almost double the size of vitamins and dietary supplements. Worldwide functional F&B grew by 10% in '06, compared to supplements' 6%.

But while global functional F&B growth is projected at a hearty 34% between 2006 and 2011, vitamins and dietary supplements--far from slowing--are expected to grow by 18% on a worldwide basis between 2007 and 2012.

In recent EI "Trend Watch" reports, analysts point out that increasingly health-conscious consumers around the globe realize that fortified foods and beverages, however helpful, can't actually replace vitamins/supplements (not to mention a balanced diet) as sources of the nutrients, vitamins and minerals their bodies need.

And while segmentation within functional F&B is becoming more sophisticated and driving overall category growth, legislation in most countries is likely to restrain full potential to some degree, EI points out.

The bottom line: While functional F&B growth is expected to negatively affect the single-vitamins subcategory, overall vitamins/supplements growth is being driven by increasing demand--particularly among the elderly--for multivitamins/combination dietary supplements that promise to alleviate or prevent specific health conditions such as cardiovascular disease and bone/joint ailments.

Furthermore, F&B marketers are not the only ones riding the tsunami of interest in anything ingestible that might help our faces and bodies look younger as long as possible. EI estimates that dietary supplements positioned primarily as beauty-enhancing grew by 17%, to $100 million, in the U.S. alone last year.

"All in all, consumers are expected to look to a combination of functional foods and vitamins and dietary supplements," EI's analysts conclude.

A few more intriguing functional F&B trend highlights from EI:

* Functional drinking and spoonable yogurts combined grew 28% in the U.S. in 2007 to $812 million, and are projected to hit nearly $1.5 billion by 2012 (83% growth).

* U.S. sales of functional drinks other than yogurt grew 11% to over 13 billion last year, and are expected to increase by 46% to over $19 billion by 2012.

* While the U.S. and Europe still lag behind Japan, in particular, in introductions and adoption of the latest twists on "beauty foods" (such as soups and beverages that include ingestible collagen), we're catching up fast.

In the U.S., marketers with food/beverage products touting cosmetic benefits include NV Perricone MD and Borba. In addition to its many topical products and Skin Balance Waters, Borba is now selling Gummi Bear Boosters, a solution for "snacking your way to better skin" with candies that are actually "delicious skin-care nutraceuticals designed to harness the positive effects of vitamins, minerals, and nutrients offered in Borba formulations."

Meanwhile, Coca-Cola is teaming with L'Oréal to produce a tea-based skin-care drink, Lumaé, due to be launched this year. Like Borba's Skin Balance Waters, which are stocked in beauty specialist Sephora, Lumaé will be distributed through upmarket cosmetics retailers, such as Saks Fifth Avenue, rather than the usual soft-drinks channels, according to EI.

This news story is important. I recommend that everyone read it.