Examining consumer trends in products, prices and portion size: how manufacturers and retailers can align to help tackle obesity
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1 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
2 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
3 Obesity is a global epidemic impacting both developed and developing countries 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 NHS: Obesity is estimated to affect around 1 in 4 1 in 5 In the UK. 2 adults and around 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 World Obesity Federation: China is expected to have 48.5 million overweight children in 2025, more than the population of Spain. 4 3 Source: [1] Harvard Business Review, Sep 2016; [2] NHS, June 2016; [3] Hindustan Times, Oct 19/11/16 11/19/ ; [4] South China Morning Post, Oct 2016
4 Developing countries tend to have more people concerning about overweight/obesity Global: I concern about overweight/obesity, Romania 68% UAE 73% China 63% Saudi Arabia 69% Philippines 63% Chile 70% South Africa 85% India 68% Indonesia 85% Source: [1] Canadean s Global Attitudes & Behaviors Survey from Q /11/16 11/19/16 4
5 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
6 Trend 1: Guilt-free indulgence making healthy products more interesting and sensory appealing 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 6 19/11/16 11/19/16 6
7 Younger consumers tend to indulge themselves with high sugar, high fat food Global: I try to eat as much the following ingredient as possible, Sugar Fat Meat 7 19/11/16 11/19/16 7 Source: [1] Canadean s Q3 global survey, 2016
8 Trend 2: Good things come in small packages the trend for portion control continues Rossmann ener Bio Beetroot Chips A source of fiber without fat, 20g Frutli Freeze-Dried Crunchy Fruit Pieces Free from fat or added sugar, 16g 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 8 19/11/16 11/19/16 8
9 Perception towards portion control Global: what do you plan to do over the next twelve months, Eat smaller portion sizes of meals in an attempt to lose weight Cut out certain ingredients from your diet (i.e. Carbs) 42% Look for products marketed as "light" Look for products marketed as "diet" 35% 24% 17% 9 19/11/16 11/19/16 9 Source: [1] Canadean s Global Attitudes & Behaviors Survey from Q1 2015
10 Perception towards portion control Global: what would I do to lose weight, % 8% 10 19/11/16 11/19/16 10 Source: [1] Canadean s Q3 global survey, 2016
11 Trend 3: Healthy bargain making healthy products affordable to everybody 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 11 19/11/16 11/19/16 11
12 Spending power Global: My disposable income is increasing, By country By gender France 23% UK 32% 35% 42% Germany 36% Italy 21% Spain 27% VS Global 39% By age USA 41% Canada 31% 12 19/11/16 11/19/16 12 Source: [1] Canadean s Q3 global survey, 2016
13 Trend 4: Ingredient matters Exploring new healthy ingredient for food products 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 13 19/11/16 11/19/16 13
14 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
15 Suggestion 1: Offer more promotions to healthy products Which?: promotions across major supermarkets in the UK between April and June, Vs. 30% Vs. 34% More than half of confectionery products were on offer compared to only around a third of fresh fruit and vegetables 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. 51% said supermarkets should include more healthier choices in promotions to make it easier for people to choose healthier food /11/16 11/19/16 15 Source: [1] Which? Press Office, Aug 2016; images sourced from Shutterstock
16 Influence of price and promotion Global: Which of the following factors have the most influence on your food choice %: Health wellness impact 33%: Price & promotions By income Vs /11/16 11/19/16 16 Source: [1] Canadean s Q3 global survey, 2016; 2] Lidl, accessed on Oct 27, 2016
17 Suggestion 2: Introduce loyalty scheme to encourage the purchase of healthy products 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 /11/16 11/19/16 17 Source: [1] Nectar
18 Suggestion 3: Manufacturer to launch marketing campaign to encourage more physical activities 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 /11/16 11/19/16 18 Source: [1] ClickZ, June 2015; images sourced from ClickZ
19 Suggestion 4: Retailers to put healthy products in more visible places Focus on how to make healthier products stand out more to consumers e.g. organize products by health claim rather than product type 19 19/11/16 11/19/16 19 Source: [1] Marketing Week, Aug 2016; images sourced from Shutterstock
20 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
21 Conclusions 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 Food Matters Live
22 Please keep in touch Irene Bi NICHE SEGMENTATION EXPERIENTIAL RESEARCH PANEL BUILDING CRITICAL INSIGHTS Thank you Food Matters Live
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