2008 RFA Symposium
U.S. Health & Wellness Trends and the Food & Nutrition Industry Greg Stephens, RD Natural Marketing Institute
September 16, 2008 1
Gregory J. Stephens, RD Vice President of Strategic Consulting Natural Marketing Institute • Greg brings 25 years of specialized expertise in the CPG, nutrition and pharmaceutical industries to NMI. His background includes sales, marketing, strategic planning and regulatory affairs for companies such as Ross Nutritional Products Division of Abbott Laboratories. • He received a Bachelor of Science degree in Human Nutrition from Georgia State University and is a Registered Dietitian with the American Dietetic Association. • Greg is a frequent author of published articles, a contributing editor for Nutraceuticals World Magazine and has spoken at industry events such as Natural Products Expo, Supply Side, American Dietetic Association, and American Healthcare Association to name a few.
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Presentation Outline
About Natural Marketing Institute (NMI) Consumer Insights & Trends • Natural, Organic & Preservatives • Friendly Labeling & Packaging
Health and Wellness Trends • General Health & Wellbeing • Cardiovascular Health • Immunity & Inflammation • Cancer (Prevention) • Mental Health • Stress (Energy & Lack of Sleep) • Skin • Joint Health • Digestive, GI Health
Source: NMI’s 2007 Health and Wellness Trends Database™ ©Natural Marketing Institute, 2008
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NMI: Health, Wellness & Sustainability
Syndicated Data Sources Published Reports Custom Data Mining Sponsorship & Subscriptions
Custom, Primary Consulting
• • • • • • • • • •
Strategic Marketing/Business Planning Brand Development/Expansion/Positioning New Product Concept Development/Strategy Emerging Trend Identification Competitive Intelligence/Tracking Communications And Media Strategy Acquisition Identification, Due Diligence Market Assessment And Industry/Sector Sizing Volumetric Modeling/Financial Proforma Development Full Service Qualitative And Quantitative Research…
Algorithms & Panels 4
Consumer Insights from NMI Nationally Projectable Studies...
The Health & Wellness Trends Database ™ (HWTD)
Healthy Aging/ Boomer Database
The LOHAS Consumer Trends Database™ (LCTD)
Product Attribute Trend Identifier
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Presentation Outline
About Natural Marketing Institute (NMI) Consumer Insights • Natural, Organic & Preservatives • Friendly Labeling & Packaging
Health and Wellness Trends • General Health & Wellbeing • Cardiovascular Health • Immunity & Inflammation • Cancer (Prevention) • Mental Health • Stress (Energy & Lack of Sleep) • Skin • Joint Health • Digestive, GI Health
Source: NMI’s 2007 Health and Wellness Trends Database™ ©Natural Marketing Institute, 2008
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Ingredient Label Reading Impacts Product Purchase Two- thirds of consumers have avoided certain foods to eat healthier What are Americans doing? Reading labels (65%) Selecting foods based on nutritional facts panel (51%) Avoiding products with high fructose corn syrup (46%) Trying to limit trans-fats in their diet (61%)
Source: NMI’s 2007 Health and Wellness Trends Database™ ©Natural Marketing Institute, 2008
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Food Fears Abound
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Most Important Criteria for Food/Beverage Selections (% GP-PGS segment indicating which attributes are most important when selecting the food or beverages consumed by their household)
Significantly more consumers are basing food selection on “natural” or “organic” criteria compared to 2 years ago
16% Product is natural 10%
Product is organic
7%
3%
2005
Source: NMI’s 2007 Health and Wellness Trends Database™ ©Natural Marketing Institute, 2008
2007
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Avoidance Is Driving Specific Food Choices (% general population who completely/somewhat agree...)
Half of consumers feel that the use of pesticides and preservatives have caused increased food allergies
Approximately two out of three consumers indicated they first started using the following to avoid pesticides, toxins, GMO ingredients, hormones and antibiotics Organic produce Organic packaged foods Natural foods Organic milk
Source: NMI’s 2007 Health and Wellness Trends Database™ ©Natural Marketing Institute, 2008
70% 64% 63% 59%
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New U.S. Organic Food and Beverage Launches with Allergy and Additive Conscious Claims Organic Allergy and Additive Conscious Product Claims
552
Organic no additives/preservatives
Organic low/no/reduced allergen
237 184
Organic gluten free
148
27 6 2001
Source: Mintel, NMI PATI Data
2002
2003
2004
2005
2006
2007
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Ingredient List Items Checked Most Often (% GP-PGS who indicated that when they read the label of a packaged food/beverage item, they check the following most often*)
GP-PGS Ingredient list
32%
Nutritional facts panel
26%
Preservatives
21%
Natural ingredients
15%
Organic ingredients
9%
Four out of ten consumers look for a “short list of recognizable ingredients”
*Select mentions
Source: NMI’s 2007 Health and Wellness Trends Database™ ©Natural Marketing Institute, 2008
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“No Junk” Claim
Organix’s Organic Crunchy Sticks, UK, with a “no junk promise” Smart Snacks’ Hopper Hip Hop cereal bars, Australia
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Simplicity Via Graphic Communication of Benefits
Jordans’ Organic Granola, UK, with symbols on pack that convey specific benefits about the product
Clear Packaging Also Conveys Purity
Peaceworks’ Kind bars Bear Naked’s All Natural Appalachian Trail Mix Taylor Fresh Foods’ Steam Cuisine Chilled Meals
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Kraft Embraces “Less is Better”; “Natural” and Environmentally Responsible This innovative bottle improves transport efficiency, energy consumption and consumer convenience, with no change in source materials.
A process refinement enables a 19 percent weight reduction, saving over three million pounds of plastic annually. In addition, Kraft now contains “natural” preservatives 16
Recent Headlines Pronouncing Americans Are Eating Better-for-You Foods (Q.23 - TRENDED GP-PGS usage for fortified and functional foods)
Functional and fortified food use trends provide proof!
74% 72% 59% Fortified foods/beverages
47% Functional foods/beverages
1999
2000
2001
Source: NMI’s 2007 Health and Wellness Trends Database™ ©Natural Marketing Institute, 2008
2002
2003
2004
2005
2006
2007
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However, Consumer Confusion Persists (% GP-PGS who agree completely/somewhat with the following statement)
‘I feel overwhelmed about the nutritional characteristics of the foods/beverages I eat’ (one-third of consumers agree)
‘When it comes to healthy eating, I am confused about what I should be doing’ (one-third of consumers agree)
‘ A healthy lifestyle is much more difficult as I get older’ (two-thirds of consumers agree)
Source: NMI’s 2007 Health and Wellness Trends Database™ ©Natural Marketing Institute, 2008
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Labels Can Help Take the Guesswork Out of Healthy Eating
General Mills’ Green Giant frozen vegetables--Healthy Vision (beta carotene in carrots); Healthy Weight (high in fiber), and Immunity Boost (high in antioxidants and with olive oil), all USA 19
Presentation Outline
About Natural Marketing Institute (NMI) Consumer Insights • Natural, Organic & Preservatives • Friendly Labeling & Packaging
Health and Wellness Trends • General Health & Wellbeing • Cardiovascular Health • Immunity & Inflammation • Cancer (Prevention) • Mental Health • Stress (Energy & Lack of Sleep) • Skin • Joint Health • Digestive, GI Health
Source: NMI’s 2007 Health and Wellness Trends Database™ ©Natural Marketing Institute, 2008
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General Health & Wellbeing Cardiovascular Health Immunity Cancer Mental Health Stress, Energy, Lack of Sleep Skin Joint Health Digestive, GI Health
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Natural Food and Beverage Usage Trending Upward (Q.23 % GP-PGS indicating past year usage of natural foods and beverages by year)
Natural Foods 63%
63%
2003
2004
68%
73%
74%
2005
2006
2007
Natural Beverages 59%
65%
68%
2005
2006
2007
Source: NMI’s 2007 Health & Wellness Trends Database™
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Food Choices Paramount to Healthy Lifestyles (Q.6 % GP-PGS indicating it is extremely/very important in how they maintain a healthy, balanced lifestyle)
CAG’ 02 - ‘07 74%
72%
67%
68%
40%
Consumption of healthy, nutritious foods
-0.5%
Overall consumption of food/bevs
+0.3%
Consumption of functional foods/bevs
+6.1%
Consumption of natural foods/bevs
+7.2%
Consumption of organic foods/bevs
+7.4%
30% 35%
25% 20% 14%
2002
2003
2004
Source: NMI’s 2007 Health & Wellness Trends Database™
2005
2006
2007 23
Consumer Usage of Functional & Fortified Beverages Trends Upward (Q.23 - TRENDED GP-PGS usage for fortified and functional foods)
U.S. sales of functional drinks other than yogurt grew 11% to over $13 billion last year, and are expected to increase by 46% to over $19 billion by 2012
74% 72% 59% Fortified foods/beverages
47% Functional foods/beverages
1999
2000
2001
2002
2003
2004
2005
2006
2007
Source: NMI’s 2007 Health and Wellness Trends Database™
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Drivers of Usage of Functional/Fortified Foods (Q.27 - % consumers indicating why they first started using functional/fortified foods)
Drivers of initial usage of functional/fortified foods Base: Those using functional/fortified foods/beverages
60%
To promote overall health To increase consumption of certain nutrients
44% 38%
To increase energy
36%
To manage/lose weight To prevent health issue from occurring
28%
To enhance physical performance
28%
To improve mental abilities
26%
To treat health issue
26%
To prevent cancer
Source: NMI’s 2007 Health and Wellness Trends Database™
Three quarters of the population (76%) feel they are deficient in some type of nutrient. The top perceived nutrient deficiencies among U.S. adults include: Omega 3 fatty acids Fiber Calcium Whole grains
24%
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Consumers Are Driven to Health For Prevention ( Q.46 - % consumers indicating the following are extremely/very important in why they maintain a healthy lifestyle)
67%
To prevent health problems To treat health problems
53%
GP-PGS
Source: NMI's 2007 Health and Wellness Trends Database™
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Taste is Still a Requirement… Even for Healthy Food (Q.32 - % GP-PGS who completely/somewhat agree with the following statements)
52% 47% 48% Healthy food should taste good and not willing to give up taste for health
44% 28%
23%
23%
18%
2004
2005
2006
Taste is more important than health
2007
Source: NMI’s 2007 Health & Wellness Trends Database™
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General Health Cardiovascular Health Immunity Cancer Mental Health Stress, Energy, Lack of Sleep Skin Joint Health Digestive, GI Health
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Foods/Beverages Launched with a Claim Promoting Cardiovascular Health - Global
707
417* 305 209 137 59
86
90
104
2001
2002
2003
37 1999
2000
2004
2005
2006
2007
2008
*As of 8/14/08
Source: NMI’s 2008 Product Attribute Trend Identifier™
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Costs of Heart Disease Rise as Population over 50 Continues to Grow (Q. 90 - % consumers managing or treating heart related problems: cholesterol, high blood pressure, heart disease)
Over a third of the population (38%) are managing a heart-related condition 79%
59%
34% 19% 7%
18-29
30-39
40-49
50- 64
65+
Source: NMI’s 2007 Health and Wellness Trends Database™
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Ingredient Association with Heart Health (Q.91 - % general population primary grocery shoppers indicating they associate the following ingredients with heart health)
45%
(% associating the following with heart health)
Omega 3's
45%
Oats
38%
Fish Oil
38%
Antioxidants
35%
Fiber
34%
Whole grains
Soy Plant Sterols
2003
2004
2005
2006
2007
Understanding of Omega 3 heart benefits has grown significantly over past 5 years
31%
Dark chocolate Vitamin E
32%
29%
Media noise and marketing efforts play a large role in educating the consumer
19% 15% 7%
OPPORTUNITY Those managing heart-related problems do not show significantly higher understanding of ingredients Source: NMI’s 2007 Health and Wellness Trends Database™
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General Health Cardiovascular Health Immunity Cancer Mental Health Stress, Energy, Lack of Sleep Skin Joint Health Digestive, GI Health
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Foods/Beverages Launched Worldwide With Claim of Promoting Immune Health – Past 10 Years
Aggressive promotion of condition-specific foods and beverages targeted to immunity (e.g., DanActiveTM) has likely contributed to the explosive rate of product development since 2006
99 41
37
2000
2001
52
116
496
369*
137
70
42 1999
2002
2003
2004
2005
2006
2007
2008
*As of 8/14/08
Source: NMI’s 2008 Product Attribute Trend Identifier™
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Doctors are Less Likely to be Consulted for these “Less” Serious Conditions (% consumers indicating they spoke with their doctor about a condition they were treating/managing)
+
High blood pressure High cholesterol Diabetes Arthritis Joint pain
Likelihood to speak with doctor
__
Fatigue Lack of energy Memory loss Concentration problems Weight management
Consumers more likely to self-treat
Source: NMI’s 2007 Healthy Aging Boomer Database™
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Ingredient Association with Immune Health (Q.91 % general population primary grocery shoppers indicating they associate the following ingredients with immune health)
(% associating the following with immune health)
Antioxidants
41%
Omega 3's
21%
Vitamin E
21%
Probiotics
16%
Fish oil
15%
Whole grains
Understanding of ingredient benefits for immune health, while lacking, does show some growth...
12%
Fiber
11%
Protein
11%
Knowledge of antioxidants for immune support has almost doubled in the past 5 years, and knowledge of Omega 3’s for immune support has literally tripled
Source: NMI’s 2007 Health and Wellness Trends Database™
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General Health Cardiovascular Health Immunity Cancer Mental Health Stress, Energy, Lack of Sleep Skin Joint Health Digestive, GI Health
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Management and Concern Over Prevention of Cancer (Q.90/92 - % general population managing cancer/concerned about preventing cancer)
71% Concern is high
Prevalence may be low
36% A lot A little
5%
Household managing
35%
Concerned about preventing
Source: NMI’s 2007 Health and Wellness Trends Database™
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Cancer Prevention Driving Healthy Behaviors (Q.5 - % general population indicating why they were first prompted to start leading a healthier lifestyle)
One out of five consumers indicate that they started leading a healthier lifestyle to prevent cancer
A third of consumers indicate their biggest fear of aging is “getting cancer”
Source: NMI’s 2007 Health & Wellness Trends Database™ NMI’s 2007 Healthy Aging Boomer Database™
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Over one-forth of Users First Started Using Functional or Natural Organic Products to Prevent Cancer (Q27 % general population (users of products) stating that they first started using the following to prevent cancer*)
“I first started using the following products to prevent cancer...” Natural foods
32%
Organic produce
31%
Vitamins and minerals
29%
Herbal supplements
28%
Organic packaged foods
26%
Functional foods and beverages
24%
*mentions >20% shown Source: NMI’s 2007 Health & Wellness Trends Database™
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Ingredient Association with Cancer Prevention (Q.91 - % general population primary grocery shopper indicating they associate the following ingredients with cancer prevention)
(% associating the following with cancer prevention)
Antioxidants
48%
Fiber
44%
Whole grains
32%
Omega 3's
28%
Oats
20%
Fish oil
19%
Vitamin E
18%
Dark chocolate
18%
Soy
Claim restrictions may limit consumer understanding of ingredient benefits for cancer prevention Independent clinical studies combined with consumer education can help disseminate ingredient benefits surrounding such a serious disease
11%
Source: NMI’s 2007 Health & Wellness Trends Database™
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General Health
Cardiovascular Health
Immunity Cancer
Mental Health Stress, Energy, Lack of Sleep Skin
Joint Health
Digestive, GI Health
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Management and Concern Over Prevention of Memory/Concentration Problems (Q.90/92 - % general population managing memory/concentration problems/concerned about preventing memory/concentration problems)
71%
23% A lot A little
13%
Household managing Source: NMI’s 2007 Health & Wellness Trends Database™
37%
Concerned about preventing
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Ingredient Association with Cognitive/Brain Health (Q.9 1 - % general population primary grocery shopper indicating they associate the following ingredients with cognitive/brain health)
(% associating the following with cognitive/brain health)
Omega 3's
22%
Up from 17% (2006)
Antioxidants
22%
Up from 15% (2006)
Fish Oil
18%
Vitamin E
13%
DHA
12%
Protein
11%
Lycopene
9%
Lutein
8%
Up from 4% (2006)
Note: PS and Ginkgo were not choices in this question. Source: NMI’s 2007 Health & Wellness Trends Database™
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General Health Cardiovascular Health Immunity Cancer Mental Health Stress (Energy & Lack of Sleep) Skin Joint Health Digestive, GI Health
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Stress At Younger Ages (Q.7 - % consumers indicating managing/relieving stress is very/somewhat important/ Q.93 - % consumers very/somewhat satisfied with managing stress)
Importance and Satisfaction of Managing/Relieving Stress Finding ways to manage and relieve stress – Younger age groups feel managing stress is important but are less satisfied with the results
87%
62%
18-29
87%
87% 81%
81%
66%
67%
61% 57%
30-39
40-49 Important
50-64
65+
Satisfied
Source: NMI’s 2008 Healthy Aging Boomer Database ™
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Stress as a Driver of Lack of Energy and Sleep (Q.32, 33 - % consumers who strongly/somewhat agree....)
“My ........... is caused by the amount of stress and anxiety I have in my life”
Lack of energy
Sleep disorder
72%
63%
Almost two-thirds of consumers (58%) indicate that managing stress is an extremely/very important reason for why they maintain a healthy lifestyle
Source: NMI’s 2007 Healthy Aging Boomer Database™ NMI’s 2007 Health & Wellness Trends Database™
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General Health Cardiovascular Health Immunity Cancer Mental Health Stress, Energy, Lack of Sleep Skin Care Joint Health Digestive, GI Health
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Younger Generations, and Particularly Females, Are More Fearful of How Their Skin Will Appear As They Age (Q.71 - % consumers who mention dry skin/wrinkles among their biggest fears about aging)
“Dry skin/wrinkles is one of my biggest fears about aging”
Compared to men, women are twice as likely to mention dry skin and wrinkles as one of their biggest fears of aging
21% 17% 15%
8%
Gen Y
Gen X
Boomers
Matures
Source: NMI’s 2008 Healthy Aging/Boomer Database™
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Consumers Have Embraced the Concept of “Beauty From the Inside Out”… (Q.10 - % consumers who STRONGLY/SOMEWHAT agree with the following)
I believe that how I take care of my body on the ‘inside’ can have an affect on how I look on the ‘outside’
I believe that consuming nutritious foods and beverages is good for my skin 89%
94%
Source: NMI’s 2008 Healthy Aging/Boomer Database™
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Ingredient Association With Skin Health (Q.91 - % general population primary grocery shopper indicating they associate the following ingredients with skin health)
Only 3% of consumers currently use nutritional supplements formulated for skin health
(% associating the following with skin health)
Vitamin E
42%
Antioxidants
32%
Fish Oil
18%
Omega 3's
17%
Calcium
Fewer than half of consumers associate Vitamin E with skin care
13%
Source: NMI’s 2007 Health & Wellness Trends Database™
50
General Health Cardiovascular Health Immunity Cancer Mental Health Stress, Energy, Lack of Sleep Skin
Joint Health
Digestive, GI Health
51
About One-Fifth of the Population is Suffering from Joint Pain or Arthritis (Q.90/92 - % consumers who are currently managing the following conditions/concerned about preventing)
62%
28% 31%
29%
A lot A little
39%
Household managing joint pain
Source: NMI’s 2007 Health & Wellness Trends Database™
Household managing arthritis
Concerned about preventing joint pain/arthritis 52
Ingredient Association with Joint Health (Q.91 - % general population primary grocery shopper indicating they associate the following ingredients with joint health)
(% associating the following with joint health)
Glucosamine
41%
Calcium Antioxidants
Down 3% (CAG from 2003) Up 10% (CAG from 2003)
38% 13%
Omega 3's
10%
Fish oil
10%
Protein
8%
Source: NMI’s 2007 Health & Wellness Trends Database™
Up 29% (CAG from 2003)
Media noise surrounding glucosamine benefits may be lessening while Omega 3 marketing is becoming louder accounting for the trends over the past 5 years
53
General Health
Cardiovascular Health
Immunity Cancer Mental Health Stress, Energy, Lack of Sleep Skin
Joint Health
Digestive, GI Health
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Trended Awareness of Probiotics (Q.7 - % GP-PGS indicating they have heard of the term probiotics)
Awareness of the term “probiotics” has shown strong increases over the past six years, with a 56% growth in awareness just in the last year
31%
18%
20%
One out of 5 (21%) feel it is important for their store to carry foods enriched with probiotics
14%
9%
2002
10%
2003
2004
Probiotics awareness is mainstreaming
2005
2006
2007
29% CAG
Source: NMI’s 2007 Health and Wellness Trends Database™
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Ingredient Association with Digestive Health (Q.91 - % general population primary grocery shoppers indicating they associate the following ingredients with digestive/colon health)
(% associating the following with digestive/colon health)
61%
Fiber
Strong growth in understanding of probiotic benefits
43%
Whole grains
14%
29%
Oats
3%
Probiotics
14% 2002 2003 2004 2005 2006 2007
Antioxidants
11%
Source: NMI’s 2007 Health and Wellness Trends Database™
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Greg Stephens Vice President, Strategic Consulting
[email protected] phone: 215-513-7300, ext 237 fax: 215-513-1713 www.NMIsolutions.com
