Examining consumer trends in products, prices and portion size: how manufacturers and retailers can align to help tackle obesity
Presented at Food Matters Live, London, UK, November 23, 2016
AGENDA
Introduction Latest trends in healthy products, consumer insights on eating habit,
spending power and perception towards portion size What can manufacturers and retailers can align to help tackle obesity Conclusions
Food Matters Live
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Obesity is a global epidemic impacting both developed and developing countries
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More than 1/3 (37.7%, or 91.4 million) of U.S. adults are considered obese, which is among the highest obesity rates in the world. 1
World Obesity Federation: China is expected to have
48.5 million overweight children in 2025, more
than the population of Spain. 4
NHS: Obesity is estimated to affect around
1 in 4 adults and around
1 in 5 children aged 10 to 11
Close to
1 in 5 children in India are overweight or obese, found a review of 52
studies done across in 16 states. 3
Source: [1] Harvard Business Review, Sep 2016; [2] NHS, June 2016; [3] Hindustan Times, Oct
2016; [4] South China Morning Post, Oct 2016
In the UK. 2
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Developing countries tend to have more people concerning about overweight/obesity
Food Matters Live Source: [1] Canadean’s Global Attitudes & Behaviors Survey from Q1 2015
Global: “I concern about overweight/obesity,” 2015 1
Indonesia
85%
China 63%
Philippines
63% Saudi Arabia
69%
UAE 73%
India 68%
Chile 70%
Romania
68%
South Africa
85%
AGENDA
Introduction Latest trends in healthy products, consumer insights on eating habit,
spending power and perception towards portion size What can manufacturers and retailers can align to help tackle obesity Conclusions
Food Matters Live
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Trend 1: Guilt-free indulgence – making healthy products more interesting and sensory appealing
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Mother's Market Non
Oil Curry Meal
“65 Kcal for a 120g
serving” – “contains no
fat”
Fellas Dried Turkey
Jerky
“High in protein” –
“low in fat” – “114
Kcal”
Thomas’ Salted
Caramel English
Muffins
“Cholesterol free – 0g
trans fat”
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Younger consumers tend to indulge themselves with high sugar, high fat food
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Sugar
Global: “I try to eat as much the following ingredient as possible,” 2016 1
Fat
Meat
Source: [1] Canadean’s Q3 global survey, 2016
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Trend 2: Good things come in small packages – the trend for portion control continues
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Rossmann ener Bio Beetroot Chips
“A source of fiber without fat,” 20g
Biofudlab OOO Snack Bar
“Contains no more than 7 ingredients” – “free from preservatives,
colors, flavors, added sugar,
gluten, GMO and dairy,” 30g
Poptacular The Alternative Health Food
Snack Popcorn “50 calories per cup” – “can be opened from the smaller end for
portion control, or from the wider end for
sharing”, 4oz
Frutli Freeze-Dried Crunchy Fruit Pieces
“Free from fat or added sugar,” 16g
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Perception towards portion control
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Global: “what do you plan to do over the next twelve months,” 2015 1
Eat smaller portion sizes of meals in an
attempt to lose weight
42% Cut out certain
ingredients from
your diet (i.e.
Carbs) Look for products
marketed as
"light"
35% 24% 17%
Look for
products
marketed as
"diet"
Source: [1] Canadean’s Global Attitudes & Behaviors Survey from Q1 2015
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Perception towards portion control
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Global: “what would I do to lose weight,” 2016 1
53%
8%
Source: [1] Canadean’s Q3 global survey, 2016
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Trend 3: Healthy bargain – making healthy products affordable to everybody
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Yoplait Go Big Low Fat Yogurt
“Gluten-free” – “live & active cultures and
vitamins A & D,” priced at 0.64 USD in a 4oz
pouch
Carrefour Fresh Cheese Dessert
“Private label” – “contain 0% of fat,”
priced at 1.35 EUR in a 2-count serving
Monoprix Bien Vivre Sans Sucres Crunchy
Cookies “Private label” – “sugar
free,” priced at 1.95 EUR
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Spending power
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By age
By gender
Global: “My disposable income is increasing,” 2016 1
35% 42%
By country
UK 32%
VS Global 39%
Source: [1] Canadean’s Q3 global survey, 2016
France 23%
Germany 36%
Italy 21%
Spain 27%
USA 41%
Canada 31%
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Trend 4: Ingredient matters – Exploring new healthy ingredient for food products
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Baiyunshan Monk Fruit Digestive Biscuits
Sweetened with monk fruit – “high in fiber with
no added sugar”
Nilgiri's Oats & Jamoon Health Cookies
“Jamoon or Jamun is a native fruit in India, and
is believed to support health for diabetics”
Takanashi “Fat Zero Plus” Yogurt
Contains indigestible dextrin fiber to
“suppress blood sugar level and neutral fat
which can cause obesity”
AGENDA
Introduction Latest trends in healthy products, consumer insights on eating habit,
spending power and perception towards portion size What can manufacturers and retailers can align to help tackle obesity Conclusions
Food Matters Live
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Suggestion 1: Offer more promotions to healthy products
Which?: promotions across major supermarkets in the UK between April and June, 2016 1
More than half of confectionery products were on offer compared to only around a third of fresh fruit and
vegetables
30%
Source: [1] Which? Press Office, Aug 2016; images sourced from Shutterstock
34%
29% said they found it difficult to eat
healthily as they think healthier food is more expensive than less healthy food. This was the top reason given for not
eating more healthily.
Vs. Vs.
51% said supermarkets should include
more healthier choices in promotions to make it easier for people to choose healthier food.
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Influence of price and promotion
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Global: “Which of the following factors have the most influence on your food choice” 2016 1
12%: Health
wellness impact 33%: Price &
promotions
Source: [1] Canadean’s Q3 global survey, 2016; 2] Lidl, accessed on Oct 27, 2016
Vs.
2
By income
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Suggestion 2: Introduce loyalty scheme to encourage the purchase of healthy products
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Giving consumers more financial incentives to encourage them to shop for healthier products
“Nourish yourself with healthy food from Sainsbury’s and get more Nectar and Vitality points.”1
Vitality Health (a UK-based medical insurance supplier) will give consumers 8 extra Nectar points for purchasing listed healthy
foods at Sainsbury’s per adult per week.
Source: [1] Nectar
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Suggestion 3: Manufacturer to launch marketing campaign to encourage more physical activities
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The key is to promote an active lifestyle as a way to prevent obesity
Sprite’s summer 2015 campaign in China 1
It aimed to "encourage China's post '90s generation to get offline, go outside and
have more fun over summer.”
Source: [1] ClickZ, June 2015; images sourced from ClickZ
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Suggestion 4: Retailers to put healthy products in more visible places
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Focus on how to make healthier products stand out more to consumers e.g. organize products by health claim rather than product type
Source: [1] Marketing Week, Aug 2016; images sourced from Shutterstock
AGENDA
Introduction Latest trends in healthy products, consumer insights on eating habit,
spending power and perception towards portion size What else can manufacturers and retailers can align to help tackle
obesity Conclusions
Food Matters Live
Conclusions
3
4
Food Matters Live
Healthy products should combine with other USPs e.g. indulgent flavors, low price to aim at different audiences The growing popularity of portion control continues to drive smaller-sized food products Brands should offer more financial rewards to encourage consumers to purchase healthier products Tackling obesity should be an ongoing mission for manufacturers and retailers
NICHE SEGMENTATION EXPERIENTIAL RESEARCH PANEL BUILDING CRITICAL INSIGHTS
Thank you
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Irene Bi