Health & Wellness 2014 Snapshot


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Market and consumer trends in the health & wellness sphere, particularly relevant to F&B/ Retail companies.

Health & Wellness 2014 Snapshot

  1. 1. Health & Wellness Trends Schieber Research | October, 2013
  2. 2. The following presentation aims to demonstrate significant trends in Health & Wellness, relevant to the world of Consumer Goods, mainly in F&B, in 2014 and in the years to follow. Note that, in wellness trends, we need to observe “proactive health consumers” differently from “mainstream consumers”, but past experience proves that seemingly “niche” health trends are soon becoming mainstream. Such is the Juicing phenomenon, abstaining from specific ingredients, etc.. However, these are sometimes passing, rather than longterm trends. Schieber Research has examined consumer research, company reports, sales data, product launches, market research and analyst reports, in order to highlight the most important market forces. We hope you enjoy this presentation, and would love to get your feedback!
  3. 3. Ingredient Focus • “Real” food & Clean label • Salt, fat and sweeteners changing landscape • Seeking better carbs and more / other protein • Allergen free and vegetarian food Changing Consumption Habits • Small meals and portion control • Snackifying • Digital tools to monitor wellness Targeted Nutrition • Inherent Functional Food • Energy, heart health, digestion, anti-aging and other specific goals • Nutrition by age • Older consumers • Children • Personalized nutrition
  4. 4. The term “Wellness” is perceived more holistically by today’s consumers, and marketers are trying to target at least some of the following elements through their product launches and marketing: Physical • Avoiding sickness/ allergies • Fitness, Looks Mental Social • Enjoy life • Stress less • Maintaining energy levels • Work-life balance • Environmental Responsibility • Community • Success and sense of accomplishment
  5. 5. Today’s consumers approach wellness holistically: from “reactive” to “preventive” / proactive, incorporating fun and indulgence as part of the wellness equation. Hartman Group, Reimagining Health & Wellness, 2012
  6. 6. According to Datamonitor, “Clean Label” is connected to various connotations Consumers are searching for “more of the good stuff” - not only “less of the bad stuff”. But they want it as natural as possible, in contrast to “lab-made good”.
  7. 7. Trendy diets, such as “The Caveman / Paleo Diet”, symbolize the genesis of “Clean Eating”, a lifestyle that calls for elimination of processed ingredients. This trend is in line with the continuing negative sentiment towards ingredient such as gluten (in the US, “gluten-free” food grew 110% in 2013 according to Euromonitor) and lactose (evident in Europe). There appears to be a certain tension as per the question, “what constitutes natural eating”, as Vegetarian / Vegan approaches conflict with “naturalistic” carnivore diets.
  8. 8. Natural alternative sweeteners, such as Agave or Stevia, continue to grow on the ground of both helping to reduce total calorie content in food & beverages, and helping to position the products as more natural / healthy due to positive consumer perception. Salt reduction on the other hand, is not as communicated, since consumers might perceive the products as less tasty if they are aware of the reduction. However, due to the growing awareness of sodium related health hazards, we expect to see this trend grow. The alternative sweetener of tomorrow: Monk Fruit
  9. 9. Consumers are seeking more ingredients and nutrients such as: protein, omega3, anti-oxidants etc.. The motivations concern looks / satiety, energy, heart health, healthy development and more. We believe that the discussion on protein will change from “how much” to “which source”, due to the trend for reducing animal-sourced protein. This is similar to the change in conversation we’ve experienced with fat, and later carbs.
  10. 10. Today’s consumers expect their diet to help them prevent / treat illness. Functional products are used to improve the quality of life, in regards to energy levels, mental feeling, mind clarity and looks – anti-aging, slimming, skin health ) From gut health to anti oxidants to energy benefits to targeted health
  11. 11. According to Consumer Analysis by Canadean, the main motivation in 14.5% of food purchase volume is related to changing age structures, i.e., consumers are searching for products to answer specific age needs – healthy growth among children, heart health / digestion among older consumers, etc. Danone is an example for building a portfolio according to the level of relevance of nutritional needs – by different age groups (source: investor presentation)
  12. 12. Consumers are more aware than ever to the role that nutrition plays in total quality of life. As a result, food and beverage manufacturers emphasize the notion of Healthy Ageing. According to Innova, the leading claims in the field are: Gut Health / Digestion Cognitive Health Energy Bone and Joint Health Immune System Skin Health Eye Health Prominent Trend: Omega3 for Grown ups
  13. 13. In Germany, MyMuesli is offering organic muesli with functional benefits aimed at different demographics The consumer want Functional AND Natural “inherently” functional Greek yogurt is one example to the power of “positive nutrition” stemming from the search of “real food” It is considered as a relatively un-processed clean good food. Chobani US Sales in 2013: $ 1.7 Billion (Euromonitor) Why? Less fat, more protein, and mostly: it’s “REAL” Chobani US Market Share (Euromonitor) 21% 1% 2013 2013
  14. 14. Following the massive success of Greek Yogurt, companies are trying to introduce Kefir to new markets as well. This is part of the growth in Ethnic ingredients which are perceived as healthier in outside markets, including Super-fruit, Chia, AloeVera, Kombucha and other ingredients.
  15. 15. Immunity and digestion now go beyond pre/pro biotic yogurt. Consumers are turning to food and beverages containing super fruits and vegetables (Beetroot & greens in particular), which are perceived as helping digestion and immunity.
  16. 16. Energy Drinks strive for differentiation
  17. 17. Breakfast & Snacking as major growth platforms Consumers view snacking as part of a healthy diet, turning more and more to smaller meals around the clock instead of 2-3 square meals. Breakfast is back in fashion, not so much because consumers now know the importance of this meal (because this was undisputed to begin with), rather the reason is the introductions of convenient-andindulgent-but-good-for-me products which successfully dealt with consumer barriers in the category.
  18. 18. Consumers and shoppers are increasingly interested in fresh foods, and this stretches to made-to-order food.
  19. 19. The nutrition and wellness world includes monitoring tools aimed at detecting calorie consumption and expenditure, medications and health parameters such as sugar / blood pressure / cholesterol levels. However the adoption of these technologies remains niche. We believe that the world of nutrition will undergo “Gadgetization”, similarly to the sports/fitness world, with equipment that will be considered as cool, status symbols, which will in turn increase awareness to certain nutritional parameters.
  20. 20. We believe that the consideration of holistic health aspects, including mental health and stress relief, poses a tremendous opportunity to retail players and to manufacturers alike. In France, Coca-Cola launched a pop-up bar/restaurant which created a “mood bubble” to separate the consumer from the street. Other examples include tourism, where hotel chains aim to tailor experiences according to the specific fitness / nutritional lifestyle of the guests.
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