Insights into Tomorrow's Nutraceutical Consumers

Table of Contents

CHAPTER 1 EXECUTIVE SUMMARY

• The hot topic
• The future decoded
  • Lifestyle health problems are on the rise
  • Nutraceutical consumption is growing fast
  • Higher-income women and young people are the key audience
  • People do not believe manufacturers health claims
  • Consumers have an attitude-behavior gap concerning healthy eating
• Action points

CHAPTER 2 THE FUTURE DECODED

• Introduction TREND: Lifestyle health problems are on the rise
  • The proportion of Senior consumers is growing
    • Early Seniors need energy and preventative health measures
    • Late Seniors are more focused on disease maintenance
  • Lifestyle diseases are becoming more common
    • Ageing population drives bone health problems
    • Almost 25% of people suffer from heart health problems
    • Serious gut health problems are rare
• TREND: Nutraceutical consumption is growing fast
  • US consumption growth is driven by energy and drinks
    • Dairy and soft drinks are fastest growing categories
    • Energy is top, and will remain top
  • European consumption is more evenly split
    • Confectionery growing to rival soft drinks
    • Gut health and heart health are the key need states
  • Swedes and Germans are Europes keenest nutraceutical consumers
• TREND: Healthy eating is increasingly part of consumers lives
  • People increasingly understand the importance of a healthy diet
  • On-the-go healthy food and drink consumption is rising relentlessly
    • Healthy OTG food occasions are growing at 3% annually
    • Healthy OTG drinking occasions will rise to more than one a day
• INSIGHT: Higher-income women and young people are the key audience
  • Seniors lag behind in consumption terms
  • American women are the biggest nutraceutical consumers
  • Nutraceutical products are not benefiting from masstige trends
    • Masstige is a real phenomenon
    • Masstige has genuine potential in food and drink markets
    • Functional and masstige have not yet been successfully combined
• INSIGHT: People do not believe manufacturers health claims
  • People are increasingly skeptical about corporate claims
  • Food and drink claims are particularly distrusted
  • Consumers must understand products to trust their claims
  • People will believe realistic and focused claims
• INSIGHT: Consumers have an attitude-behavior gap concerning healthy eating
  • Younger consumers show the biggest gap concerning general health
  • Men show the biggest gap when it comes to healthy eating
  • The picture is more mixed when health enters the fray
  • The attitude-behavior gap is declining
• INSIGHT: People use nutraceuticals for short-term reasons
  • Weight loss, energy and clean teeth are most important
  • Long-term health concerns are becoming more important
  • Anti-ageing beauty benefits are an emerging niche
• INSIGHT: Nutraceuticals must satisfy trends beyond just health
  • A good sensory experience is vital, but challenging to achieve
    • Functional ingredients restrict ability to meet consumer flavor preferences
    • Authenticity conflicts with added functionality
    • Striking a middle path
  • Time pressure drives healthy consumers to nutraceuticals
  • Some functional food and drinks have cool value Conclusions

CHAPTER 3 ACTION POINTS

• Introduction Communicate effectively with consumers to gain their trust
  • Focus tightly on specific health benefits
    • Ensure that natural products also make specific health claims
  • Seek endorsements from reputable organizations
• Build trust in your company as well as your products
  • Show a corporate commitment to health and wellness
    • Become a lifestyle information provider
    • Use interactive media to build brand relationships
  • Extend brands that consumers already trust
• Create products that address the attitude-behavior gap
  • Use natural ingredients for taste and authenticity
  • Draw attention to products convenience and cool benefits
    • Improve convenience, especially among niche consumer groups
    • Promote nutraceuticals as cool through celebrity endorsement
• Create masstige products for lower-income groups
  • Tap into demand for accessible premium products
  • Apply hi-lo consumption to functional food marketing
• Meet older and younger consumers unmet needs
  • Target Seniors by highlighting product effectiveness
  • Help younger consumers to maximize their alertness
• Stimulate demand for appearance-enhancing products
  • Capitalize on obesity concerns with weight-loss functional foods
  • Target reluctant consumers with beauty claims
• Borrow successful innovations from abroad
  • Look to Japan for esoteric advances
  • Learn what consumers like from other Western markets

CHAPTER 4 APPENDIX

• Supplementary data
  • Functional food & drink sales in France
  • Functional food & drink sales in Germany
  • Functional food & drink sales in Italy
  • Functional food & drink sales in the Netherlands
  • Functional food & drink sales in Spain
  • Functional food & drink sales in Sweden
  • Functional food & drink sales in the UK
  • Functional food & drink sales in the rest of Europe
• Definitions
• Research methodology
• Future readings
• Report writing team
• How to contact experts in your industry

List of Tables

• Table 1 : Population by age group (m), Europe and US, 1999-2009
• Table 2 : Consumers suffering from bone health problems (m), Europe and US, 1999-2009
• Table 3 : Consumers suffering from heart health problems (m), Europe and US, 1999-2009
• Table 4 : Consumers suffering from gut health problems (m), Europe and US, 1999-2009
• Table 5 : US functional food & drink market value (US$ m), by category, 1999-2009
• Table 6 : US functional food & drink market value (US$ m), by claimed health benefit, 1999-2009
• Table 7 : Europe functional food & drink market value (US$ m), by category, 1999-2009
• Table 8 : Europe functional food & drink market value (US$ m), by claimed health benefit, 1999-2009
• Table 9 : Europe functional food & drink market value (US$ m), by country, 1999-2009
• Table 10 : Importance of improving physical health through diet, Europe and US, 2005
• Table 11 : Healthy on-the-go eating occasions (per head and total), Europe & US, 2004-2009
• Table 12 : European and US healthy on-the-go drinking occasions (per head and total), 2004-2009
• Table 13 : Functional food and drink share of volume consumption by age group, Europe & US, 2004
• Table 14 : Functional food and drink share of volume consumption by gender, Europe & US, 2004
• Table 15 : Consumers trust of specific institutions (% respondents), 2003
• Table 16 : Consumers trust of claims made by food and drink manufacturers (% respondents), Europe and US, 2005
• Table 17 : Consumers likelihood of taking active steps to improve physical health as % of stated importance of improving physical health, Europe and US, 2005
• Table 18 : Consumers likelihood of improving their diet as % of stated importance of improving physical health through diet, Europe and US, 2005
• Table 19 : Consumers likelihood of choosing health over taste as % of stated importance of choosing health over taste, Europe and US, 2005
• Table 20 : US consumers perceived interest in functional and fortified product types, 2005
• Table 21 : Fastest-growing new nutraceutical ingredients in Japan, 2003-2005
• Table 22 : France functional food & drink market value (US$ m), by category, 1999-2009
• Table 23 : France functional food & drink market value (US$ m), by claimed health benefit, 1999-2009
• Table 24 : Germany functional food & drink market value (US$ m), by category, 1999-2009
• Table 25 : Germany functional food & drink market value (US$ m), by claimed health benefit, 1999-2009
• Table 26 : Italy functional food & drink market value (US$ m), by category, 1999-2009
• Table 27 : Italy functional food & drink market value (US$ m), by claimed health benefit, 1999-2009
• Table 28 : Netherlands functional food & drink market value (US$ m), by category, 1999-2009
• Table 29 : Netherlands functional food & drink market value (US$ m), by claimed health benefit, 1999-2009
• Table 30 : Spain functional food & drink market value (US$ m), by category, 1999-2009
• Table 31 : Spain functional food & drink market value (US$ m), by claimed health benefit, 1999-2009
• Table 32 : Sweden functional food & drink market value (US$ m), by category, 1999-2009
• Table 33 : Sweden functional food & drink market value (US$ m), by claimed health benefit, 1999-2009
• Table 34 : UK functional food & drink market value (US$ m), by category, 1999-2009
• Table 35 : UK functional food & drink market value (US$ m), by claimed health benefit, 1999-2009
• Table 36 : Rest of Europe functional food & drink market value (US$ m), by category, 1999-2009
• Table 37 : Rest of Europe functional food & drink market value (US$ m), by claimed health benefit, 1999-2009
• Table 38 : Definitions of disease types covered

List of Figures

• Figure 1 : Swedes and Germans are the biggest per-capita nutraceuticals consumers
• Figure 2 : Low earners are almost as indulgent as high earners in terms of purchasing behavior
• Figure 3 : There are strong gains to be made from targeting the needs of specific consumer groups, such as pregnant women
• Figure 4 : Consumers health behaviors in the future will be decreasingly characterized by attitude/ behavior gaps
• Figure 5 : US consumers well-being concerns focus on presentation issues
• Figure 6 : Oral beauty products have a limited but rising market penetration across the leading developed economies
• Figure 7 : Nutraceuticals that target specific beauty care concerns are starting to appear
• Figure 8 : All-natural nutraceutical products have authenticity and often taste benefits over artificial additives
• Figure 9 : Targeted functional products can be made from natural ingredients, but many natural products currently just make general health claims
• Figure 10 : Successful healthy product lines can easily be extended into functional categories
• Figure 11 : Some fortified categories can be marketed as strongly aspirational even at a relatively low price point
• Figure 12 : Products that are closely targeted to Seniors taste and health requirements can help overcome their skepticism
• Figure 13 : Highly specific alertness claims may win over younger consumers, but only if they can be substantiated
• Figure 14 : Functional products can target weight-conscious consumers with active weight-loss benefits
• Figure 15 : Many Japanese nutraceuticals could not be replicated in the US or Europe