Report: The U.S. Market for Whole Grain and High Fiber Foods TOC

Chapter 1: Executive Summary

Scope and Methodology

Scope of Report
Report Methodology

Introduction

The Next Big Thing, Again
Definition of Terms
Whole Grain
High Fiber
90% of Americans Dont Get Fiber RDA
3% of Calories Consumed in U.S. from Whole Grains

The Market

Sales to Near $7.5 Billion in 2009
Market Share by Product Category
Figure 1-1: Share of U.S. Retail Sales of Whole Grain and High Fiber Foods by Product Category, 2000 vs. 2004 (percent)
Market Share by Retail Channel
Government, Major Marketers Commit to Whole Grains
Whole Grains in the Post-Low-Carb Landscape

The Marketers

Conglomerates Dominate Market
Lesser-Known Players Also Compete
Leading Players by Market Share
George Weston Is Top Sales Gainer
Key Considerations: Supply and Formulation Issues
Line Extensions and Brand Leverage

Marketing and New Product Trends

Preventive Health, Weight Loss Are Most Important Angles
Education Is Key to New Campaigns
Revamping Grain/Fiber Packaging, Tag Lines
Familiar Brands, New Formulations
Raw Ingredients Aiming to Improve Whole Grain Taste Profile

The Consumer

62% of Adults Are Fiber-Conscious
49% Choose High Fiber Cold Cereals

Looking Ahead

Trends & Opportunities

Chapter 2: Introduction

Market Definition

Scope of Report
Seven Product Categories
Cereals
Snacks
Baked Goods
Grains & Beans
Beverages
Pasta
Flour

The Science of Whole Grains and High Fiber

The Next Big Thing, Again
Definition of Terms
Whole Grain
High Fiber
Natural Sources vs. Supplements
Whole Grains and Fiber Prevent Variety of Illnesses

Whole Grains, High Fiber, and the American Diet

90% of Americans Dont Get Fiber RDA
3% of Calories Consumed in U.S. from Whole Grains
Obesity Among Leading Causes of Death in 2005
The Atkins Effect: Per Capita Flour Consumption in Decline
"Matriarch" Sets Household Health
Meals On the Run, Outside the Home Growing Trends

Government, Industry, and Foodservice Responses

New Food Guidelines, Revised Pyramid in 2005
Possible Changes to Food Labeling
Whole Grains Council Seeks New Approach
Whos Responsible for "Obesity Foods"?
"Healthy" Vending Machines and Advertising Changes
Restaurants, Incorporating More Whole Grain, Healthful Options

Chapter 3: The Market

Market Size and Growth

Methodology for Estimates
U.S. Retail Sales Approach $4.8 Billion
Figure 3-1: U.S. Retail Sales of Whole Grain and High Fiber Foods, 2000-2004 (in millions of dollars)
Cereals Decline Along with Wider Market
Snacks on the Rise, Buoyed by Snack & Sports Bar Trends
Whole Grain Baked Goods Outpace Refined Market
Grains and Beans Are Slow But Steady Performers
Fiber-Boosted Beverages a Surprising Performer
Pasta Bounces Back from Downward Trend
Flour Manages Slight Growth in Weak Market
Market Share by Product Category
Figure 3-2: Share of U.S. Retail Sales of Whole Grain and High Fiber Foods by Product Category, 2000 vs. 2004 (percent)
Market Share by Retail Channel
Figure 3-3: Share of U.S. Whole Grain and High Fiber Food Sales by Retail Outlet Type, 2004 (percent)
Table 3-1: U.S. Retail Sales of Whole Grain and High Fiber Foods, 2000-2004 (in millions of dollars)
Table 3-2: U.S. Retail Sales of Whole Grain and High Fiber Cereal, 2000-2004 (in millions of dollars)
Table 3-3: U.S. Retail Sales of Whole Grain and High Fiber Snacks, 2000-2004 (in millions of dollars)
Table 3-4: U.S. Retail Sales of Whole Grain and High Fiber Baked Goods, 2000-2004 (in millions of dollars)
Table 3-5: U.S. Retail Sales of Whole Grain and High Fiber Grains and Beans, 2000-2004 (in millions of dollars)
Table 3-6: U.S. Retail Sales of Whole Grain and High Fiber Beverages, 2000-2004 (in millions of dollars)
Table 3-7: U.S. Retail Sales of Whole Grain and High Fiber Pasta, 2000-2004 (in millions of dollars)
Table 3-8: U.S. Retail Sales of Whole Grain and High Fiber Flour, 2000-2004 (in millions of dollars)

Factors to Market Growth

Government, Major Marketers Commit to Whole Grains
Whole Grains in the Post-Low-Carb Landscape
Leading Low-Carb Plans Change Their Tune
Low-Carb Benefits Without the Low-Carb Label
Shift Away from "Obesity Foods" Driven by Bottom Line, Wall Street Anxiety
Mainstream America Wakes Up to Natural and Organic Foods
Whole Grains Add Value to Convenience Foods
More Demand for Value-Added Foods, High Quality Ingredients
High-Tech Ingredient Development Merges Taste and Good Health

Projected Market Growth

Sales to Near $7.5 Billion in 2009
Table 3-9: U.S. Retail Sales of Whole Grain and High Fiber Foods, 2004-2009 (in millions of dollars)
Early Spike in Cereals from Whole Grain Conversion
Table 3-10: U.S. Retail Sales of Whole Grain and High Fiber Cereal, 2004-2009 (in millions of dollars)
Snacks Off to a Slower Start
Table 3-11: U.S. Retail Sales of Whole Grain and High Fiber Snacks, 2004-2009 (in millions of dollars)
Increasing Growth in Baked Goods
Table 3-12: U.S. Retail Sales of Whole Grain and High Fiber Baked Goods, 2004-2009 (in millions of dollars)
Brown Rice Sales to Drive Grains/Beans Category
Table 3-13: U.S. Retail Sales of Whole Grain and High Fiber Grains/Beans, 2004-2009 (in millions of dollars)
Slowing Growth in Beverages
Table 3-14: U.S. Retail Sales of Whole Grain and High Fiber Beverages, 2004-2009 (in millions of dollars)
Whole Grain/High Fiber Pasta a Hard Sell
Table 3-15: U.S. Retail Sales of Whole Grain and High Fiber Pasta, 2004-2009 (in millions of dollars)
Whole Grain a Bright Spot in Sagging Flour Market
Table 3-16: U.S. Retail Sales of Whole Grain and High Fiber Flour, 2004-2009 (in millions of dollars)

Chapter 4: The Marketers

Overview

Conglomerates Dominate Market
Lesser-Known Players Also Compete
Table 4-1: U.S. Market for Whole Grain and High Fiber Foods: Selected Marketers and Leading Brands, 2004

Marketer and Brand Shares

Methodology for Estimates
Leading Whole Grain Players by Market Share
Figure 4-1: Top Marketers of Whole Grain and High Fiber Foods, 2004 (percent)
George Weston Is Top Sales Gainer
Leading Marketers of Whole Grain and High Fiber Cereals
Leading Whole Grain and High Fiber Snack Marketers
Leading Marketers of Whole Grain and High Fiber Baked Goods
Top Marketers of Whole Grain Beans and Grains
Top Whole Grain and High Fiber Beverage Marketers
Market Leaders in Whole Grain and High Fiber Pasta
Leading Marketers of Whole Grain and High Fiber Flour
Table 4-2: Top Marketers of Whole Grain and High Fiber Foods by IRI-Tracked Sales and Market Share: 2000 vs. 2004 (in millions of dollars)
Table 4-3: Top Marketers of Whole Grain and High Fiber Foods by Net Sales Gains, 2000-2004 (in millions of dollars)
Table 4-4: Top Marketers and Brands of Whole Grain and High Fiber Cereal by IRI-Tracked Sales and Market Share: 2000 vs. 2004 (in millions of dollars)
Table 4-5: Top Marketers of Whole Grain and High Fiber Cereal by Compound Annual Growth Rate, 2000-2004 (percent)
Table 4-6: Top Marketers and Brands of Whole Grain and High Fiber Snacks by Market Share: 2000 vs. 2004 (in millions of dollars)
Table 4-7: Top Marketers and Brands of Whole Grain and High Fiber Baked Goods by IRI-Tracked Sales and Market Share: 2000 vs. 2004 (in millions of dollars)
Table 4-8: Top Marketers of Whole Grain and High Fiber Baked Goods by Compound Annual Growth Rate, 2000-2004 (percent)
Table 4-9: Top Marketers and Brands of Whole Grain and High Fiber Grains and Beans by Market Share: 2000 vs. 2004 (in millions of dollars)
Table 4-10: Top Marketers and Brands of High Fiber Beverages by Market Share: 2000 vs. 2004 (in millions of dollars)
Table 4-11: Top Marketers and Brands of Whole Grain and High Fiber Pasta by IRI-Tracked Sales and Market Share: 2000 vs. 2004 (in millions of dollars)
Table 4-12: Top Marketers of Whole Grain and High Fiber Pasta by Compound Annual Growth Rate, 2000-2004 (percent)
Table 4-13: IRI-Tracked Sales of New World Pastas Healthy Harvest Brands, 2001-2004 (in dollars)
Table 4-14: Top Marketers and Brands of Whole Grain and High Fiber Flour by Market Share: 2000 vs. 2004 (in millions of dollars)
Table 4-15: Top Marketers of Whole Grain and High Fiber Flour by Compound Annual Growth Rate, 2000-2004 (percent)

The Competitive Situation

Key Considerations: Supply and Formulation Issues
Line Extensions and Brand Leverage
Alliances with Health and Diet Gurus
Consumer Perceptions of Market Giants vs. Specialists
Losing Out to Private Label

Chapter 5: Competitor Profiles

Competitor Profile: General Mills, Inc.

Corporate Overview
Leader in Whole Grain and High Fiber Foods
Weight Loss and Whole Grains
Shortcomings and Challenges Ahead

Competitor Profile: George Weston Bakeries, Inc.

Corporate Overview
Strong Growth in Brands with Whole Grain Options

Competitor Profile: Hodgson Mill, Inc.

Corporate Overview
Wide Variety of Whole Grain/High Fiber Products
"David and Goliath"

Competitor Profile: Kellogg Company

Corporate Overview
Number-One In Cereal, Trailing in Whole Grains
More "Healthy Beginnings"
More Surprises in Fortification to Come

Competitor Profile: Kraft Foods North America

Corporate Overview
"Fat" Foods Under Fire
Limited Whole Grain/High Fiber Marketing
Opportunities and Limitations for Whole Grain Growth

Competitor Profile: New World Pasta Company

Corporate Overview
Limited, But Innovative Whole Grain/High Fiber Products
Fighting Off American Italian Pasta Co.

Competitor Profile: Quaker (PepsiCo Beverages & Foods)

Corporate Overview
Leader in Whole Grain Oats
More of the Same?

Competitor Profile: Sara Lee Bakery Group

Corporate Overview
Riding Out Low-Carb, Embracing Whole Grain

Chapter 6: Marketing, New Product, and Retail Trends

Marketing Trends

Preventive Health, Weight Loss Are Most Important Angles
Education Is Key to New Campaigns
Revamping Grain/Fiber Packaging, Tag Lines
Reaching Out to Parents

New Product Trends

Familiar Brands, New Formulations
Raw Ingredients Aiming to Improve Whole Grain Taste Profile
In the Morning and On the Go
Fortified Foods: Bulking Up Whole Grains Benefits
Targeted Products
Other Food Categories Following Whole Grain
Figure 6-1: Number of New Foods and Beverages with "High Fiber" Package Tags, 1999-2004 (number)
Table 6-1: Marketers and Brands of Whole Grain and High Fiber Foods: Selected New Product Introductions, 2004-2005

Advertising and Promotion

Consumer Advertising Overview
Whole Grain Advertising Positioning
Playing on Fiber/Grain Preconceptions
Potato Board Campaign a Model for Other "Low-Carb Casualties"

Retail Trends

Whole Grain and High Fiber Retail Overview
Figure 6-2: Share of U.S. Whole Grain and High Fiber Food Sales by Retail Outlet Type, 2004 (percent)
In-Store Bakeries Gaining Market Share
Lessons Learned from Low-Carb
"Bulking Up" With Health and Natural Food Stores

Chapter 7: The Consumer

Consumer Overview
- Note on Simmons Market Research Bureau Consumer Data
62% of Adults Are Fiber-Conscious
49% Choose High Fiber Cold Cereals
Figure 7-1: Percent of Adults Who Most Often Use Selected Fiber Products by Type, 2004 (U.S. adults)
Fiber vs. Fun Cereals
Granola vs. Energy Bars
Brownberry and Earth Grains Have Strongest Fiber Draw
Upscale and Urban Skew for Grain Crackers
Distinct Demographics for Whole Wheat Flour
Blacks at Index of 132 for Brown Rice
Table 7-1: Demographics for Adults Who Agree with Statement: I Try To Get Plenty of Fiber in My Diet, 2004 (U.S. adults)
Table 7-2: Demographics for Adults Who Strongly Agree with Statement: I Try To Get Plenty of Fiber in My Diet, 2004 (U.S. adults)
Table 7-3: Demographics for Adults Who Most Often Use Fiber Products by Type: Cold Breakfast Cereal, 2004 (U.S. adults)
Table 7-4: Demographics for Adults Who Most Often Use Fiber Products by Type: Hot Breakfast Cereal, 2004 (U.S. adults)
Table 7-5: Usage Indices by Breakfast Cereal Brand Among Adults Who Strongly Agree with Statement: I Try To Get Plenty of Fiber in My Diet, 2004 (U.S. adults)
Table 7-6: Demographic Indexes by Type of Breakfast Cereal Used Most Often: Cold and Hot Fiber Cereal vs. Treat Cereal, 2004 (U.S. adults)
Table 7-7: Demographics for Adults Who Most Often Use Quaker Oats Fruit & Oatmeal or Nature Valley Granola Bars, 2004 (U.S. adults)
Table 7-8: Usage Indices by Granola Bar Brand Among Adults Who Strongly Agree with Statement: I Try To Get Plenty of Fiber in My Diet, 2004 (U.S. adults)
Table 7-9: Demographics for Adults Who Use Energy Bars, 2004 (U.S. adults)
Table 7-10: Usage Indices by Energy Bar Brand Among Adults Who Strongly Agree with Statement: I Try To Get Plenty of Fiber in My Diet, 2004 (U.S. adults)
Table 7-11: Demographics for Adults Who Most Often Use Fiber Products by Type: Grain Bread, 2004 (U.S. adults)
Table 7-12: Usage Indices Among Strongly Fiber-Conscious Consumers by Bread Brand and Preferred Product Type: Grain, Bran, Multi-Grain, Oat, and Whole Wheat, 2004 (U.S. adults)
Table 7-13: Demographic Indexes by Type of Bread Used Most Often: Grain vs. White, 2004 (U.S. adults)
Table 7-14: Demographics for Adults Who Most Often Use Fiber Products by Type: Grain Crackers, 2004 (U.S. adults)
Table 7-15: Demographic Indexes by Type of Snack Cracker Used Most Often: Grain vs. Butter-Flavored, 2004 (U.S. adults)
Table 7-16: Demographics for Adults Who Most Often Use Fiber Products by Type: Whole Wheat Flour, 2004 (U.S. adults)
Table 7-17: Demographic Indexes by Type of Flour Used Most Often: Whole Wheat vs. All-Purpose/White, 2004 (U.S. adults)
Table 7-18: Demographics for Adults Who Most Often Use Fiber Products by Type: Brown Rice, 2004 (U.S. adults)
Table 7-19: Demographic Indexes by Type of Rice Used Most Often: Brown vs. White, 2004 (U.S. adults)

Chapter 8: Looking Ahead

Trends and Opportunities
New Labeling Standards Needed
Proprietary Symbols Headed for Trouble
Opportunities in Product Formulation
Honing In On Specific Health Benefits
Playing the Weight Card
More "Grab and Go" and Convenience Foods
Trends in Product Fortification
Snack Nuts and Baking Nuts to Reap New Benefits
Table 8-1: IRI-Tracked Sales of Snack Nuts and Baking Nuts, 2000-2004 (in millions of dollars)
Snack Nuts Get New Focus on Nutrition
Table 8-2: Top 10 Marketers of Snack Nuts by IRI-Tracked Net Sales Increase, 2000-2004 (in millions of dollars)
Table 8-3: Top 10 Marketers of Cooking/Baking Nuts by IRI-Tracked Net Sales Increase, 2000-2004 (in millions of dollars)
Branching Out in Additional Categories

Appendix: Addresses of Selected Marketers

The U.S. Market for Whole Grain and High Fiber Foods