Investment Rating - The report does not explicitly provide an investment rating for the functional food industry Core Insights - The introduction of new food safety standards aims to enhance transparency and consumer trust in functional foods, particularly by prohibiting misleading terms like "no additives" and "zero additives" [3][6][30] - The industry is expected to shift towards a more scientific approach in product development, focusing on verifiable health benefits and precise nutritional formulations [30][31] Summary by Sections Regulatory Changes - New food safety standards require clear labeling of ingredient quantities and prohibit vague marketing claims, enhancing consumer understanding of product contents [2][3][6] - The standards mandate the inclusion of common allergens on labels, addressing the growing concern for food allergies among consumers [12] Industry Impact - The new regulations will compel functional food companies to ensure compliance with ingredient transparency, which is crucial for maintaining consumer trust [8][18] - Companies are encouraged to innovate in product development, focusing on high-quality ingredients and clear health benefits to meet the new standards [19][30] Consumer Behavior - A significant percentage of consumers express skepticism about the efficacy of functional foods, with 74.8% believing that actual benefits do not meet promotional claims [26] - The primary purchasing channels for functional foods include online shopping and pharmacies, indicating a need for improved consumer education and trust-building strategies [25][26] Future Trends - The industry is anticipated to evolve towards "scientific validation of efficacy," with a focus on developing high-end, customized products tailored to specific consumer needs [30][31] - Regulatory changes are expected to reshape the competitive landscape, favoring companies that can demonstrate scientific backing for their products [31][32]