A wide range of functional food products, beverages and supplements promising beauty benefits have hit the market in recent years, however in the US the industry is dominated by water products, says the report. The functional water brand Borba is one of the leaders in the sector with its range of Skin Balance Waters. The selection of enhanced waters contain antioxidants, vitamins and botanicals, with each drink being formulated to help provide clearer, firmer skin, and help for dry, dehydrated skin, the company claims. Launched in 2005, the range was originally marketed in beauty stores Sephora and Nordstrom, before being introduced into grocery stores. Borba's Skin Balance Waters were picked up by Anheuser-Busch in late summer last year and at the time of the distribution deal the company's vice president of business operations Dave Peacock noted that adding the range allowed the company to participate in the emerging nutraceutical beverage category. In addition, PepsiCo has targeted the notion of beauty through water with the launch of a skin care range that carries the Aquafina logo. Aquafina is one of the biggest selling water brands in the US and the company's Aquafina Enhanced Hydration skin care range benefits from consumer associations between water and health and the extensive advertising budget behind the brand. In contrast, it is fruit juices and dairy products that are tipped to lead the market in Europe over the coming year. However, according to the report the US dairy industry is 'strikingly un-innovative and has failed to keep pace with any of the business opportunities in functional dairy that have been developed by dairy companies in Europe, Asia and South America'. European launches to note include Danone's beauty yogurt fortified with Omega 6, antioxidants and probiotics called Essensis, rolled out in February last year in Italy, Spain and France, and Russian company Wimm Bill Dann's yogurt and probiotic drink. Nevertheless, it is Japan that is thought to be the most developed market in the world for beauty foods with the market showcasing some quirky products such as collagen-filled marshmallows, which were sold in the UK with little success by the confectioner Eiwa. Euromonitor's Eleni Grammenou explained that the 'rise in self medication and the popularity of alternative medicine helped to move interest towards beauty supplements, beverages and foods claiming to enhance beauty naturally and from within.' Grammenou also said the Japanese regulatory system is more sophisticated and therefore processes new product developments at a greater speed, allowing the Asian country to steam ahead in this evolving market.