• Food Navigator USA , Friday, August 8, 2008 10:45 AM

With parents concerned about increasing obesity rates and other health problems among children, the children's functional food and beverage market in the U.S. will grow to $26.8 billion by 2011, from $16.4 billion in 2007, according to a new report published by consultancy TSG. Growth will continue at double-digit rates beyond 2012, it predicts.

The report identifies a number of key aspects of children's health that are being addressed through diet, including obesity, hyperactivity, brain function, digestion and immunity.

Beverages currently constitute the largest segment of the kids' food and beverage market, accounting for 29% of total sales, says TSG. Ice cream and frozen desserts make up 17% of the market. Cereal accounts for 15%, lunch kits and sweet snack foods each take an 8% share, and cookies and crackers make up 7%. Dairy products currently hold 4% of the market, while fruits and vegetables hold only 1%.

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