Table of Contents
Issues in the Market
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- Definition
- Excluded
- Vitamin and Mineral fortification
- Superfoods
- Exclusions to the excluded
- Others
- Four key themes
- Abbreviations
Insights and Opportunities
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- Targeting hospitals
- Active government promotion
- Lifestyle and lifestages
- Young consumers show interest in functional foods
- Brands are the way forward on a ‘health plus one’ positioning
- Dairy intolerances are growing
- Consumers are sceptical
Fast Forward Trends
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- Golden Bullet
- What's it about?
- What’s next/implications
- Totophobia
- What's it about?
- What’s next/implications
Market in Brief
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- Market growth slows…
- … as natural products come to the fore
- Promotional support lower
- Market outlook positive
Internal Market Environment
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- Key points
- Consumers proactive in managing their health
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- Figure 1: Agreement with selected lifestyle statements, 2003-07
- Prevention better than cure
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- Figure 2: Attitudes towards healthcare, 2003-07
- Too busy to be healthy?
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- Figure 3: Agreement with selected lifestyle statements, 2003-07
Broader Market Environment
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- Key points
- Changing population dynamics setting a backdrop
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- Figure 4: Effect of the changing make-up in demographics of the UK population on the market for functional foods, 2007
- More regulation of health claims
Competitive Context
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- Key points
- So many ways to be healthy
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- Figure 5: Market size and growth for selected healthful foods, 2002-07
- Superfoods a more direct competitor
- Vitamins and mineral supplements
- Costs to the NHS
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Rate of innovation slows
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- Figure 6: New product introductions with a functional claim*, by product group, 2003-07
- Immunity claims on the up
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- Figure 7: New product introductions, by claim, UK, 2003-07
- Trend to natural functionals
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- Figure 8: New product introductions, by complementary claim, UK, 2003-07
- Beauty from within
- Products for the stressed out
Market Value and Forecast
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- Key points
- Market growth slows
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- Figure 9: Market value for functional foods, 2002-07
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- Figure 10: UK retail sales of functional food and drink products, by sector and value, 2005-07
- Yogurt drinks
- Yogurt pots
- Yellow fat spreads
- Breakfast cereals
- Juice, drinks and bottled water
- Soya dairy-alternative products
- Eggs
- Other products
- The future
- Functional vs. naturally healthy
- Consumers want more credibility
- Forecast
- Healthy but slower growth
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- Figure 11: forecast of the functional foods market, 2002-12
- Health to remain a crucial market driver
- Demographic changes to promote growth
- Beauty products to aid future growth
- Slower growth predicted
- Factors used in the forecast
Product Positioning
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- Key points
- Premium yogurt claims command premium price
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- Figure 12: Prices of pot yogurts with functional claims compared with other yogurts, 2008
- Price premium less obvious in newer markets
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- Figure 13: Prices of selected grocery products with functional claims compared with other conventional product, 2008
Companies and Products
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- Key points
- Principal functional food brands
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- Figure 14: Leading functional food brands with a heart health claim, 2008
- Figure 15: Leading functional food brands with a digestive health claim, 2008
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- Figure 16: Leading functional food brands with a general health claim, 2008
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- Figure 17: Leading functional food brands with other health claims, 2008
- Companies with major functional food brands
- Danone SA
- Actimel
- Activia
- Danacol
- Essensis
- McNeil Nutritionals
- Benecol
- Unilever UK (Flora)
- Flora
- Müller Dairy (UK) Ltd
- Vitality
- Müller Corner
- Müllerlight
- Provexis
- Yakult UK
- Companies with functional food variants
- Conival plc
- Kellogg
- Allied Bakeries
- Noble Foods Ltd
- Alpro
- Dairy Crest
- So Good International
- Tropicana (PepsiCo International)
- Warburtons
- Yeo Valley
Brand Communication and Promotion
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- Key points
- Adspend big but on the decline
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- Figure 18: Promotional spend on main functional food brands, by category, 2003-07
- Yogurt spend reducing
- Flora dominates spreads spend
- Promotional spend on liquid milks drops substantially
- Breakfast cereals and breads pushing hard
- Cheese the new growth area?
Channels to Market
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- Key points
- A considered purchase
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- Figure 19: Estimated retail sales of functional food and drinks, by distribution channel, 2003-07
- Own-label has not developed
The Consumer – Purchasing Behaviour
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- Key points
- Yogurts and spreads lead the way
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- Figure 20: Functional Food product purchased, January 2008
- ABC1s prefer yogurts and C2s go for spreads
- Consumers don’t define functional foods
- The functional breakfast for younger consumers?
- Functional for children
- Repertoire analysis
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- Figure 21: Number of different types of functional foods bought for self, January 2008
The Consumer – Attitudes towards Functional Foods
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- Key points
- A credibility issue
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- Figure 22: Number of functional foods bought for self, by agreement with attitude statements, January 2008 (column %)
- Some need convincing…
- … others, the Victor Meldrews – “just don’t believe it”
- Men tend to be more sceptical than women
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- Figure 23: Attitudes towards functional foods, by gender, January 2008
- Price and a ‘naturally healthy diet’ are the biggest obstacles
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- Figure 24: Attitudes towards functional foods, by age, January 2008
The Consumer – Consumers Ready for Functional Beauty Products
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- Key Points
- Inner beauty – the thing to watch
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- Figure 25: Functional claims that consumers find believeable, January 2008
- Consumers do not find anti-ageing process believable
- Who is the target audience?
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- Figure 26: Number of functional foods bought for self, by claims that respondents would find believable about certain foods, January 2008 (column %)
Appendix: Introduction
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- Glossary of terms
- Advertising data
Appendix – Internal Market Environment
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- Figure 27: Agreement with selected lifestyle statements, by demographic sub-group, 2007
- Figure 28: Agreement with selected lifestyle statements, by demographic sub-group, 2007
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Appendix – Broader Market Environment
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- Changing population dynamics
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- Figure 29: UK population changes in socio-economic status and age, 2002-12
- Figure 30: UK population changes in household size, 2002-12
- Figure 31: Health conditions controlled or prevented through my diet, by socio-demographics, January 2008
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- Figure 32: Health conditions controlled or prevented through my diet, by socio-demographics, January 2008
Appendix – The Consumer – Purchasing Behaviour
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- Figure 33: Functional foods ever purchased, by detailed demographics, January 2008
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- Figure 34: Functional foods ever purchased, by detailed demographics, January 2008
- Repertoire analysis
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- Figure 35: Number of functional foods bought for self, January 2007 (row %)
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- Figure 36: Number of functional foods bought for self, by health conditions respondents try to control/prevent through diet, 2008 (column %), January 2008
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- Figure 37: Number of functional foods bought for self, by types of products bought, January 2008 (column %)
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Appendix – Consumer – Attitudes towards Functional Foods
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- Figure 38: Attitudes towards functional foods, January 2008
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- Figure 39: Attitudes towards functional foods, by detailed demographics, January 2008
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- Figure 40: Attitudes towards functional foods, by detailed demographics, January 2008
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Appendix – Consumer – Consumers Ready for Beauty Functional Foods
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- Figure 41: Functional foods bought for self, by functional claims that consumers find believable, January 2008 (row %)
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- Figure 42: Functional foods bought for self, by functional claims that consumers find believable, January 2008 (row %)
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- Figure 43: Functional foods bought for self, by functional claims that consumers find believable, January 2008 (column %)
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- Figure 44: Functional foods bought for self, by functional claims that consumers find believable, January 2008 (column %)
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- Figure 45: Number of functional foods bought for self, by claims that respondents would find believable about certain foods, January 2008 (column %)
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- Figure 46: Functional foods bought for self, by functional claims that consumers find believable, January 2008 (column %)
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- Figure 47: Functional foods bought for self, by functional claims that consumers find believable, January 2008 (column %)
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