Influence of healthy eating on market trends. Paul Paquin, Ph.D. INAF, Université Laval, Québec
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1 Influence of healthy eating on market trends Paul Paquin, Ph.D. INAF, Université Laval, Québec
2 Key Trends TREND A key trend is one that represents a genuine growth opportunity On which a company can base a strategy intended to increase sales, market share and profitability, through innovation and competitive marketing (positioning). A trend has a direct connection to consumer needs Has some sort of link to science Can form the basis of a successful brand message Offers opportunities for genuine innovation Source : NNB, 2013
3 Key trends in food, nutrition and health Which ones to target? They must be meaningful in terms of the chosen nutrition-health avenue They must be more than short-term (3-10 years) They must allow businesses to develop and maintain effective plans, innovations, and marketing strategies They must reflect a comprehensive assessment of a wide range of information: consumer, market, regulatory, science, etc.
4 Key Trends recognizable in 2013
5 Market segmentation based on trends according to NNB
6 «Micro-trends» Micro-trends Represent opportunities for business development that are speculative and not significant but could become major. Factors such as technology, perceived benefits, consumer needs, branding, marketing, and regulatory aspects, remain uncertain or in development. Trends representing major development opportunities
7 Micro-trends
8 Trends categorization
9 Categories and opportunities: understanding overlaps 1. Benefits: The benefit the consumer obtains from a product. Not from just seeing some interesting ingredient on the label; From the meaning of specific benefits to him or her. 2. Products: The food categories expected to become the most significant for the delivery of health benefits to the consumer: Dairy, fruits and vegetables, good grains All three overlap with Naturality (Key Trend 1) Dairy products are positioned as the most credible means of delivery of numerous health benefits.
10 Categories and opportunities: understanding overlaps 3. Nutritional needs: Nutritional needs as a whole for specific groups, such as seniors A nutritional need may encompass several types of benefits; In fact, seniors make up by far the largest group having specific needs. 4. Systems: Refer to the elements surrounding a product that enable it to reach the targeted market Packaging, service, distribution
11 The biggest trend Basic consumer requirement for any brand (even those without an overt health position) = innovation strategy Biggest successes: new brands, new product formats Beverages and snacks NATURALITY Behind successes in: Greek yogurt in the US coconut water almonds pistachios Open the door to successful fruit and vegetable-based products credible all-natural food form.
12 Has long been among the biggest trends One of the world s fastest-growing and most-profitable markets. presents a wealth of opportunities, one of the biggest being how to harness the naturality trend. Natural energy Ranks on many companies new product development agendas Many product launches this year (Nestlé, Campbell s and others) that use Fruit and vegetables as a basis for a natural energy drink. Caffeine: deliver it at an effective dose but in a carrier with a good natural image, such as fruit-plus-vegetable juice. ENERGY
13 SENIORS The most important need group over-represented among buyers of all products with health benefits. Eg.: Danone Actimel was bought mostly by people over the age of 60 Growing numbers are as important in China as in the West Are the single-biggest opportunity (supermarket and medical foods) Are not one group Needs and attitudes are different at each stage Fine segmentation required
14 DIGESTIVE HEALTH Is almost recession-proof, even when selling at premium prices. power of feel the benefit Despite the economic downturn, premium brands have achieved 10% + annual growth. General Mills Fiber One Danone Activia Probiotic dairy category is now wellestablished Few or no opportunities for new probiotic dairy brands Growth opportunity = fibre.
15 WEIGHT MANAGEMENT Wide-open area worldwide with a wealth of opportunities Emerging for protein and low-gi diets (the Diogenes study) Major success Kellogg s Special K breakfast cereal. Feel the benefit market consumers must be able to see or feel a difference in their body shape or weight. Putting a weight-management product on the shelf may not be enough A service component has to be provided People value support and service in reaching their weight management goals Weight Watchers Jenny Craig Special K s eating programme
16 DAIRY Strong naturally healthy image in consumers minds Credible category for health messages. Dairy proteins Growing body of science behind their benefits. Essential ingredient to support healthy ageing Massive success of the Greek yoghurt category in the US boomed to $700 million in annual sales There are still a wealth of untapped opportunities to create new dairy propositions, even in developed and mature markets.
17 NNB Diamond Trend: Factors to consider
18 Consumers needs The naturally healthy perception among consumers is becoming a strategic avenue for health messages. Given the number of healthy factors that it contains, dairy is a credible food category for delivering health messages. Innovation has made milk and dairy products ideal matrices also for providing added healthy ingredients.
19 Nutritional science Milk is one of the most studied food products, from both the technological and the nutritional perspective. Dairy products have intrinsic health advantages and benefits. Considerable evidence suggests that calcium and protein obtained from dairy products improve control of body weight. Protein is emerging as an essential constituent in support of healthy aging.
20 Ingredients and technologies The dairy sector has, overall, a well-developed portfolio of ingredients: Powders, concentrates and isolates of protein, fat and carbohydrate, peptides, lipids, phospholipids, etc. Research on dairy ingredients and their health benefits is useful for: The ingredients sector The dairy products sector
21 Regulatory aspects Regulatory compliance: Although the current regulatory framework surrounding health claims does not support the diamond trend currently observed in the food sector, this does not mean that the opportunity does not exist or that regulations are an obstacle to success (e.g. the case of Special K).
22 Food Regulatory aspects of health claims for foods Nutrient Content Protein, carbohydrate, fibre, omega-3 and omega-6 fatty acid, vitamins and minerals Source of, high in, excellent source of, low in (sodium) Health Benefit - General Health Claim - Nutrient Function Claim - Functional Claim - Probiotic Claim Disease Risk Reduction and Therapeutic - Osteoporosis - High blood pressure - Cardiovascular disease - Cancer - Dental caries - Cholesterol
23 Dietary confusion I m trying to eat healthy. I never put salt on my ice cream, I eat only decaffeinated cookies and my red wine has no trans fat.
24 Dairy products
25 Innovation challenges: dairy products Adapting new products for growing market segments (healthconscious, lifestyle consumers, seniors, sports, children); Balancing consumer pull and technological push Maintaining the naturally healthy image while adding technological ingredients; Health-oriented concept (claims) versus sales/marketing strategies and innovation.
26 Innovation challenges milk and dairy beverages Example of the pharma /nutrition => diet/health shift Ensure : from technology consumers to lifestyle Previously pharmaceutically oriented (medical) Today, baby-boomer (young seniors and health) Seniors: major market for dairy products (science-driven) Many opportunities
27 Innovation challenges sports drinks The physically active and young athletes segment(s) More and more specialized products in the sports drink category Milk delivers unique components: chocolate milk Room for adaptation and combinations Before during after activity Knowledge about matrices (Turgeon) Satiety and energy Protein carbohydrate fibre
28 Innovation challenges yogurt products Yogurts are certainly the most significant health benefit vehicle in the dairy sector (several innovations) Digestibility Probiotic Fibre Studies of specific strains New regulation (fibre), 2013 list The balanced health food concept The satiety/weight management concept (Greek yogurt) From mass market to lifestyle consumers
29 Conclusion Trend analysis is important for proper understanding of the diet health relationship opportunity; Healthy foods innovation is increasing in complexity; The approach needs to take into consideration several elements at the same time: trend diamond Increasing market segmentation and greater challenges.
30 The INAF innovation support team François Couture Sophie Myrand Ronan Corcuff Judith Lavoie Sonia Pomerleau And our experts at INAF Thanks to:
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