Food and beverage makers in North America are shying away from children's products and have dramatically cut back on new product launches aimed at the younger end of the market, according to the New York based Productscan Online.
The market research company noted that a total of 1391 foods and beverages were launched for children between January and November 2004, a fair way behind 2003's total of 1871 and even short of the totals for 2001 and 2002 which came in at 1647 and 1778 respectively.
"The controversy surrounding the childhood obesity crisis as well as the fixation on the low-carb fad meant that kids were not a top priority on the food and beverage front in 2004," said Tom Vierhile, the executive editor of Productscan Online.
The emphasis on health and nutrition appears to have caused the slowdown. Colored foods and beverages are now seen as unhealthy rather than fun and recent efforts to eliminate so-called 'junk' foods from schools also seem to have added to the trend.
In California, for example, coalitions of parents, students and pro-nutrition groups recently won a state-wide ban on soft drinks in elementary and junior schools. And with an estimated 10-15 percent of all school children obese, according to Time magazine, more restrictions can be expected.
Vierhile told NutraIngredientsUSA.com that this slowdown had caught everybody by surprise and blamed the low-carb trend and increasing health concerns among consumers and lobby groups as the key influential factors.
"First, everyone dropped everything and chased after the low-carb fad, and secondly, food companies don't know what will happen in terms of 'healthy' legislation and are therefore cautious about introducing new products," he said.
Some food and beverage makers that have been blamed for introducing children's products with higher amounts of fat and/or sugar, are now adopting a more responsible attitude, believes Productscan.
The market research firm noted that, for example, that this summer McDonald's began offering milk jugs as an alternative to soft drinks in its Happy Meals. Schools have also been getting into the act, adding healthier fare to menus including fruit drinks, yogurts and salads.
However, Vierhile doesn't believe that food companies have the confidence at the moment to launch healthy food lines as mainstream foods.
"Kraft Foods, for example, has a Back to Nature line, but they seem hesitant to launch it into the mainstream market," he said.
As for next year, Vierhile thinks that this hesitation will continue until it is clear whether new legislation is likely to be put in place.
"The food companies are walking on a tightrope and it is difficult to make foods that will appeal to parents and children," he added.