A low calorie chocolate that tastes just as good as the real thing and a white bread with high fibre are just two of the projects being funded that could make a difference to users diet and health in the future.
£8.5M is being invested in almost 40 research projects by BBSRC, the Technology Strategy Board and other partners to tackle issues around nutritional values, food safety, specific dietary requirements and food waste.
Other innovations being developed include a project to identify foods that could treat osteoporosis, and studies assessing the potential for using pumpkin and mulberry extracts to help treat diabetes and obesity.
Universities and Science Minister David Willetts said: "The food industry is one of the largest and most important sectors of the UK economy. With an ever growing population, our research base needs to do more than ever to not only improve the nutritional value of our food but also identify new ways to prevent disease.
"Our industrial strategy will ensure we get ahead in the global race by turning our world-beating science and research into world-beating products and services."
Iain Gray, Chief Executive of the Technology Strategy Board said: "Businesses need to put innovation at the heart of product development to stay competitive. The ideas funded today have the potential to improve profitability in the future, as well as enhancing our diet and encouraging healthier lifestyles."
The funding competition, called Nutrition for Life is supporting a total of 39 projects. All of them are business led with additional support from universities and research institutes.
The £8.5M initiative is a Technology Strategy Board competition which received co-funding from: BBSRC, Scottish Enterprise, the Department for Environment, Food and Rural Affairs (Defra), the Food Standards Agency (FSA), the Economic and Social Research Council (ESRC) and the Medical Research Council (MRC).