Developed countries have a hard pressing problem of overweight and childhood obesity where approximately 17% of children are obese. Most developed countries have another demographic problem that of an ageing population with different kinds of degenerative diseases, heart diseases, diabetes, cancer and other ailments. It is also evident that various dietary factors during pregnancy can make infants sensitive to chronic diseases in adulthood. The present day consumers have a far greater knowledge of diet and health association.



The result of these is that self-medication and disease prevention aspects of foods are increasingly motivating decisions on food selection. Governments in developed countries are weighed with high health costs, growing absenteeism, and falling productivity arising out of health problems in the respective communities.

In the last two decades, a new category of food commonly referred to as “Functional Foods" has emerged. These foods are a result of shift to using foods and food ingredients pertaining to self-medication and disease prevention. Convenient food items are being replaced by healthy foods as people are becoming more conscious of their health and physical well-being. These decisions in food choices are providing food processors ‘new’ avenues for brand extensions.

The market research report on food processing industry published by RNCOS named “Food Processing Industry – Australia (2005)" reports on Study of Australian Food Law, which includes Food Adulteration Act, Harmonization of Food Laws in Australia and Role of Task Force.

The market research report discusses the Australian government’s initiatives to promote processed food and beverages in the country. It considers land and labor productivity as major factors in proliferating the industry to new processing units in Australia.

The report explains how the industry’s growth in the country has taken place with the availability or raw materials, changing lifestyles and flexible trade patterns.

The market research report has conducted an in-depth SWOT analysis of the industry to suggest that the best opportunities of Functional Foods are in a ready market; where benefits of science are prevalent; where the regulatory requirements can be achieved; and the industry has the technical support and ability to develop and commercialize the food products.

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