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Health And Wellness trends 2009
 

Health And Wellness trends 2009

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    Health And Wellness trends 2009 Health And Wellness trends 2009 Presentation Transcript

    • Health & Wellness: Redefining Healthy Living IRI Times & Trends: November 2009
    • Executive Summary INSIGHT ACTION » Consumers’ adoption of healthier lifestyles has » Drive the transition to healthier living with been gradual, marked by a growing prevalence innovative, well-rounded programs that educate of obesity and low exercise compliance rates consumers on the benefits of healthy living and the important role that CPG plays in achieving wellness; tie programs turn-key CPG solutions to underscore ease of use » The market for functional and better-for-you » Accelerate the development of this valuable food and beverages is growing quickly, driven niche market through initiatives addressing by consumers’ heightened awareness and consumer hurdles to healthier eating, including understanding of the important role food and price, time constraints, taste, availability and beverages play in living a healthy life information » The market for natural and organic food and » Conduct frequent and granular assessments beverages is growing, with battle for share across key consumer groups, including trips, occurring across and within retail channels trip types and channel shifts; align distribution/ assortment and marketing strategies to prominent trip types 2 Copyright © Information Resources, Inc., 2009. Confidential and Proprietary
    • Executive Summary INSIGHT ACTION » The market for beauty care products » Stimulate growth with value-oriented has been relatively flat, driven by programs touting innovative, self- consumers’ quest to look good at all administered solutions that address stages of life, but tempered by everyday beauty needs conservative usage patterns » Heavy beauty shoppers represent a » Drive relevance across heavy shoppers sizable growth opportunity; this with comprehensive beauty marketing segment is characterized by strong programs which reinforce the notion of feelings about the connection total wellness and underscore the between inner wellness and outer importance of feeling and looking good beauty 3 Copyright © Information Resources, Inc., 2009. Confidential and Proprietary
    • Healthy Living Obesity has reached epidemic proportions in the United States; government agencies and health advocates are working to reverse this dangerous trend. Obesity Trends Among U.S. Adults (Aged 18 and Older) 1990 2008 No Data <10% 10%-14% 15%-19% 20%-24% 25%-29% >30% Source: Centers for Disease Control; Behavioral Risk Factor Surveillance System 4 Copyright © Information Resources, Inc., 2009. Confidential and Proprietary
    • Healthy Living Exercise compliance continues to be a stumbling block to effective lifestyle management. 2007 Prevalence of Recommended Physical Activity (Aged 18 and Older) Recommended physical activity is defined as at least 5 days a week for 30 minutes a day of moderate intensity activity or at least 3 days a week for 20 minutes a day of vigorous intensity activity Source: Centers for Disease Control; Behavioral Risk Factor Surveillance System 5 Copyright © Information Resources, Inc., 2009. Confidential and Proprietary
    • Healthy Living Exercise Trends as % Consumers Concerned with Condition Among those Exercise Is An Important Part of Life Exercise Most Days with specific health Weight 27% 19% concerns, the need for Cholesterol 21% 14% programs highlighting Heart Problems 18% 12% exercise as a component if Diabetes 16% 11% a healthy Osteoporosis 15% lifestyle is 10% significant. Total Panel 21% 33% Source: IRI MedProfiler™ VIII 6 Copyright © Information Resources, Inc., 2009. Confidential and Proprietary
    • Healthy Living U.S. Functional Food & Beverage Market The market for $ Billions functional food and beverages Soft Drinks/ Enhanced Water $9.6 is growing quickly, driven Dairy (inc. Yogurt) $6.8 by consumers’ heightened awareness and Bakery/Cereals $4.6 understanding of the important Confectionary $2.3 Projected Compound role food and Annual Growth Rate beverages play (2007-2012) in living a Savory Snacks $0.5 6.1% healthy life. Source: PricewaterhouseCoopers- Leveraging Growth in the Emerging Functional Foods Industry, August 2009 7 Copyright © Information Resources, Inc., 2009. Confidential and Proprietary
    • Healthy Living As innovation Products with Wellness Claim Share of CPG Spending around Across Grocery, Drug, Mass and Convenience Stores (excluding Walmart) wellness- % Chg Yr Ago related Dollar Sales Unit Sales attributes All Natural 12% +3.2% +1.0% continues Low/Less Fat 5% (5.6%) and (2.3%) consumers’ Any Grain Claim 4% +9.8% +5.6% quest for healthier food 5+ Grams of 2% +5.0% (1.0%) Fiber per Serving option grows, these Low/Less Calorie 1% +5.3% +3.4% products will Any Low Sodium 1% +5.0% to capture (0.1%) increased Any Organic 1% Claim +3.4% (0.1%) share of Source: IRI Health & Wellness Advantage™ - Powered by IRI Liquid Data; 52 w/e 10/4/2009 vs. same wallet. period prior year 8 Copyright © Information Resources, Inc., 2009. Confidential and Proprietary
    • Healthy Living Foods and beverages touting wellness-related attributes span a wide number of CPG categories, and momentum is strong. “All Natural” Claim Share Across Key Edibles “Any Grain” Claim Share Across Key Edibles Categories Categories % of Total Category Sales- FDMxC % of Total Category Sales- FDMxC Pt Chg YA Pt Chg YA Natural Cheese 49% (1.4) Cold Cereal 54% +0.5 Bottled Water 30% (0.6) Fr. Bread & 23% +1.3 Carb. Beverages 20% (0.3) Rolls Cold Cereal 11% +0.1 11% Salty Snacks +3.9 Fr. Bread/ Rolls 8% +0.7 Fz Dinners/ 6% Entrees +1.1 Salty Snacks 8% +0.8 Total Edibles 6% +0.2 Total Edibles 4% +0.3 Source: IRI Health & Wellness Advantage™ - Powered by IRI Source: IRI Health & Wellness Advantage™ - Powered by IRI Liquid Data; 52 w/e 10/4/2009 vs. same period prior year Liquid Data; 52 w/e 10/4/2009 vs. same period prior year 9 Copyright © Information Resources, Inc., 2009. Confidential and Proprietary
    • Healthy Living Better-for-you food and beverages are fairly well-entrenched across consumer segments, but significant upward potential remains. Index of Household Penetration of Edibles with Wellness Claim By Consumer Segment (Index: 100 = Average) USDA 100% Whole Low Fat No Fat Low Calorie Multi-Grain Certified Natural Grain Organic 96.3 98.8 97.4 95.3 93.6 92.1 76.0 Lower Income 101.0 100.2 100.6 99.9 101.5 98.8 96.8 Middle Income 102.5 101.0 101.9 104.3 104.6 108.5 124.8 Upper Income Households with 103.3 102.4 101.3 115.7 109.0 133.4 106.3 Children 100.5 98.0 97.6 92.3 94.8 108.5 113.2 Hispanic Source: IRI Health & Wellness Advantage - Power by IRI Liquid Data; 52 w/e 10/4/2009 vs same period prior year 10 Copyright © Information Resources, Inc., 2009. Confidential and Proprietary
    • Healthy Living Natural & Organic Food & Beverage Sales* $Billion As the market for Compound Annual Growth Rate natural and organic food 13.2% and $34.1 beverages $30.6 grows, battle $26.6 for share is occurring across and between specialty and mass market 2006 2007 2008 retailers. Source: Nutrition Business Journal. *estimates across all channels, including mass market, natural food stores, and direct channels 11 Copyright © Information Resources, Inc., 2009. Confidential and Proprietary
    • Healthy Living For wealthier shoppers, vitamins are playing an important role in strategies developed to save money through disease prevention. Vitamin Trends Category Growth and Purchase Propensity Unit Sales Purchase Propensity by Income; Index (Avg= 100) Income Segment Definitions % Growth vs YA Getting By Living Comfortably Doing Well Getting By • One member households, 6.0% 70 Liquid 101 116 income up to $19.9K Vitamins/ 6.7% • Two or more member Minerals 20.3% households, income up to $34.9K 2.4% Living Comfortably 94 100 103 Mineral 2.0% • One member households, Supplements income $20K - $34.9K 8.6% • Two or more member households, income $35K 6.2% 104 100 98 - $54.9K 1 & 2 Letter Vitamins 4.8% Doing Well 2.0% • One member households, 87 97 108 income $35K+ -3.3% • Two or more member 2009 Multi-Vitamins 1.6% 2008 households, income $55K+ 3.6% 2007 Source: IRI Consumer Network™; 52 weeks ending 10/11/2009 and same period prior year 12 Copyright © Information Resources, Inc., 2009. Confidential and Proprietary
    • Healthy Living Declines in demand for beauty products were driven by conservative usage patterns, but tempered by consumers’ quest to look as good as possible at every stage of life. Beauty Care Growth Trends* Dollar Sales Change vs Year Ago ($ Millions) $124 Total Beauty Care Market Value $11.5B $42 $22 -$144 Unit Sales (3%) (2%) (1%) (5%) % Chg YA Total Beauty Skin Care Cosmetics Hair Care Source: IRI Beauty Shopper Report * Excludes fragrance 13 Copyright © Information Resources, Inc., 2009. Confidential and Proprietary
    • Growth Opportunities The key to capitalizing on opportunity around natural and organic foods is understanding and delivering underlying drivers and inhibitors of purchase behavior. Attitudes Toward Organic Foods as % Adults with Internet Access I would buy more organic food/ 78% beverages if they were less expensive Organics have a shorter life span 66% vs conventional products Organics are better for me vs non-organics 61% I wish there was a wider selection of 60% organics where I shop I always try to buy locally grown, 59% whether organic or not Source: Mintel, Eating with Meaning, January 2009, Survey of 2000+ adults with Internet access 14 Copyright © Information Resources, Inc., 2009. Confidential and Proprietary
    • Growth Opportunities Often Read Nutritional Labels on Food as % Consumers Concerned with Condition Nutrition label Weight 34% readership is quite low, particularly Cholesterol 27% among the country’s Heart 24% most at-risk Problems grocery shoppers. Osteoporosis 21% Diabetes 21% Source: IRI MedProfiler™ VIII 15 Copyright © Information Resources, Inc., 2009. Confidential and Proprietary
    • Growth Opportunities Support parental efforts to instill healthy eating habits with concise and education-based promotional programs. Parent Strategies with Regards to Kids Snacking as % Consumers 62% 52% 47% 42% 32% Offer snacks W atch Offer snacks Offer low fat Offer low with nutrients portion sizes that are snacks calorie fresh/not snacks processed Source: IRI 2009 Snacking Study 16 Copyright © Information Resources, Inc., 2009. Confidential and Proprietary
    • Growth Opportunities Heavy beauty shoppers represent 40% of industry sales, and hold strong feelings about the relationship between inner wellness and outer beauty. Index of Feelings Toward Personal Beauty Across Shopper Segments (100 = Average) Buyer Definitions 103.4 Natural ingredients Based on Annual make products Beauty Expenditures in 100.7 better for me Food, Drug, Mass, Superstore and Club 90.9 Channels Heavy: >$185 105.1 Leading a healthy Medium: $70-$185 lifestyle makes one 99.0 more beautiful Light: <$70 90.4 Heavy Medium Light Average = 100 Source: IRI Beauty Shopper Report 17 Copyright © Information Resources, Inc., 2009. Confidential and Proprietary
    • Manufacturer Action Items New Product Development Marketing Merchandising - Develop educational awareness - Invest to understand key wellness campaigns regarding healthy - Provide brand information consideration across key lifestyles as well as specific consumer and target groups; and wellness/ disease health benefits of product management benefits via in- reevaluate key brands to identify ingredients opportunities for targeted brand store informational displays/ extension opportunities - Develop targeted marketing kiosks messages against high potential - Be vigilant of technological segments, communicating - Leverage shopper insights to innovation; rapidly explore specific health benefit linked to assess shopping patterns of feasibility of adopting promising the ailment/condition/ wellness healthier brand buyers to new ingredients/ systems/ goal identify optimal shelf processes across key categories/ placement, adjacencies and brands) - Tap into or collaboratively build promotions larger-scale health and wellness - Evaluate risk/rewards of marketing programs offering value-priced better-for- - Cross-merchandise healthy you products targeting lower - Integrate marketing programs brands with other healthy income and value-conscious into retailer partners’ existing options to provide solutions consumer segments health and wellness initiatives to consumers 18 Copyright © Information Resources, Inc., 2009. Confidential and Proprietary
    • Retailer Action Items New Product Development Marketing Merchandising - Develop educational awareness - Invest to understand key campaigns regarding healthy - Provide brand information wellness consideration across lifestyles as well as specific and wellness/ disease key consumer and target health benefits of product management benefits via in- groups; reevaluate store brands - Develop targeted marketing store informational to identify opportunities for targeted line extension messages against high potential displays/kiosks opportunities segments, communicating health benefit linked to the - Leverage shopper insights to - Look for low-cost innovation ailment/condition/ wellness goal assess shopping patterns of opportunities by monitoring healthier brand buyers to better-for-you innovation within - Tap into or collaboratively build identify optimal shelf and outside of current store larger-scale health and wellness placement, adjacencies and brand portfolio categories marketing programs promotions - Evaluate risk/rewards of offering - Demonstrate commitment to - Cross-merchandise healthy value-priced better-for-you natural/organic foods through brands with other healthy products targeting lower income participate in urban farming options to provide solutions and value-conscious consumer programs; heavily market to consumers segments program participation across marketing platforms 19 Copyright © Information Resources, Inc., 2009. Confidential and Proprietary