Pulse Report: Opportunity for Retailers and CPGs as More Consumers Connect Diet and Health

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Pulse Report: Opportunity for Retailers and CPGs as More Consumers Connect Diet and Health

01/02/2013

As healthful eating becomes a priority among mainstream consumers, the opportunity for food and beverage products that claim nutritional benefits is promising–provided CPG manufacturers and retailers invest in consumer education.

Jamil Satchu,
partner, Symphony Consulting, SymphonyIRI Group

"While manufacturers have developed foods and beverages with healthier attributes, perhaps the biggest obstacle they now face is consumer awareness," explains Jamil Satchu, partner, Symphony Consulting. "At best, consumers lack understanding, and given the complexity of some health claims, that's understandable. At worst, they are skeptical of many health claims, particularly newer ones. But, time and information can overcome this obstacle."

"Food and Beverage Health Claims TrendSpotting," the most recent in the Executive Briefings by Symphony Consulting, a division of SymphonyIRI Group, analyzes key trends across five macro food and beverage health claims categories to define areas with the highest growth and greatest potential for future expansion.

The report grouped 30 common health claims into five macro health claims classifications: Better for You, Dietary Restriction, Condition-Specific, Natural and Energy. Claim trends were then examined across five macro food and beverage categories: Macro Snacks, Breakfast Foods, Refrigerated and Frozen Cooking Ingredients, Ready-to-Eat Meals and Liquid Refreshment Beverages.

"Better for You" and "Dietary Restriction" lead among the five macro health claims, accounting for 36 percent and 33 percent of total health claim sales, respectively. However, Energy grew the most rapidly during the past year, at 8 percent. The dollar growth rate within Food and Beverage, by comparison, is approximately 4.6 percent.

The report found age to be influential in the demand for products with certain health claims. Older baby boomers (those born between 1946 and 1955) contributed 24 percent to total claim sales growth, but accounted for just 20 percent of dollar sales.

Generation X and Y shoppers also represent a high-value opportunity, contributing 23 percent and 27 percent to claims sales growth respectively, while accounting for 20 percent and 25 percent of dollar sales, respectively.

Baby boomers were more interested in condition-specific health claims, such as Heart and Omega ALA, the report says, while Gen X and Y use food for functional purposes, such as energy and exercise enhancement.

The Brand New You

A variety of factors are driving consumers to consider a healthful diet as part of an integrated approach toward proactive health management. Health care reforms and regulation–like New York City's recent ban on trans fats in restaurant cooking–are designed to raise awareness of the connection between health and diet.

Consumer Demographics and New Health Priorities
Source: Symphony Consulting Analysis

Macro Snacks

This macro category includes salty snacks, yogurt and snack bars and has grown 6.5 percent over the past 52 weeks. "Better for You" and "Dietary Restrictions" are the leading claims driving sales, with 37 percent and 35 percent of snack claim sales, respectively.

SymphonyIRI's 2012 Annual Consumer Snacking Survey revealed 43 percent of respondents are snacking three to four times a day, and 87 percent are trying to eat more healthfully. This convergence would seem to indicate opportunity for healthy new snacks.

Top 5 Fastest-Growing Claims and Categories Driving Claims Growth

Year to date ending Nov. 4, 2012, Multi-Outlet + Convenience

Note: 1. Category contributing to the greatest dollar growth of given claim. Second category is indicated only if first category contributed to less than 50 percent of growth.
2. Brand contributing to the greatest dollar growth of given claim within category.
Source: SymphonyIRI ILD POS database MULO+C; year to date ending Nov 4, 2012; and Symphony Consulting Analysis


Refrigerated & Frozen Cooking Ingredients

This macro category includes butter, frozen potatoes/onions and fresh eggs and is growing 5.7 percent a year, faster than the food and beverage industry overall. Leading health claims are "Better for You" (36 percent of claims sales) and "Dietary Restriction" (31 percent of claims sales). There is opportunity for growth in this category in the "Better for You" and "Condition-Specific" claims segments.

Top 5 Fastest-Growing Claims and Categories Driving Claims Growth

Year to date ending Nov. 4, 2012, Multi-Outlet + Convenience

Note: 1. Category contributing to the greatest dollar growth of given claim. Second category is indicated only if first category contributed to less than 50 percent of growth.
2. Brand contributing to the greatest dollar growth of given claim within category.
Source: SymphonyIRI ILD POS database MULO+C; year to date ending Nov 4, 2012; and Symphony Consulting Analysis



20% The percent of the population experts expect to be older than 65 by the year 2030.
Source: U.S. Department of Health & Human Services, Administration on Aging






TIP:
Take the lead. Retailers have an opportunity to educate shoppers about health claims and healthful eating.


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