examining consumer trends in products, prices and portion...

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

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Obesity is a global epidemic impacting both developed and developing countries

Food Matters Live

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



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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%


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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%


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



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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


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

Food Matters Live

Please keep in touch…

Irene Bi

[email protected]

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