Skip navigation

THE WIDE WORLD OF WELLNESS

U.S. CONSUMERS ARE INVESTING in their health like never before, and certain categories show just where shoppers are putting down their money. Whether it's antioxidants or spa treatments, Americans have proven themselves an eclectic group when it comes to whole health spending. This diversification only helps supermarket retailers, who operate at the critical juncture of food, diet and health. This

U.S. CONSUMERS ARE INVESTING in their health like never before, and certain categories show just where shoppers are putting down their money. Whether it's antioxidants or spa treatments, Americans have proven themselves an eclectic group when it comes to whole health spending. This diversification only helps supermarket retailers, who operate at the critical juncture of food, diet and health.

This year, SN Whole Health asked information providers like Mintel International and NPD Group to furnish key data from research the firms conducted over the past year, that highlight the fastest-growing product categories, key services and top economic issues that influence how consumers spend their health and wellness dollars.

FUNCTIONAL FOODS

  • Percentage of respondents purchasing functional foods or beverages in 2008: 48
  • Percentage in 2006: 34

Women display a higher tendency to purchase functional foods, particularly for weight control and digestive health. Use is also highly age-dependent, with people in the 18-34 age bracket significantly more likely to purchase. Functional foods are consumed primarily as a supplement, not for prevention. Fewer than one in three users cite specific health issues as a motivating factor. The top two reasons given have to do with general supplementation of one's current diet. Benefits that garner the most interest include maintaining a strong immune system and healthy brain function.

TAKEAWAY: In 2008, 13% of respondents report purchasing functional foods only, and 7% bought functional drinks only. Fully 28% use both food and drink, suggesting that consumers who embrace the functional concept do so across categories.

SOURCE: Mintel International

PACKAGING TRENDS

  • Percentage of respondents who would take a reusable bag shopping with them: 16
  • Percentage who use portion-control packages: 42
  • Percentage of respondents who avoid buying bottled water for environmental reasons: 23

Three factors are influencing packaging in the marketplace: sustainability and the environment; functionality; and health, wellness and safety. Packaging can convey guidance on specific health attributes, while minimalist packaging helps convey organic and natural properties. Increasingly, “good for you” messages will have to include “good for the environment” packaging. One recent example of this conflict at work is the battle over PET, the popular, petroleum-based bottle material that's currently under siege from environmental groups.

TAKEAWAY: The supply chain, which to date has thrived more on cost control and efficiencies and less on environmental concerns, will continue to be under the microscope.

SOURCE: Mintel International

BETTER-FOR-YOU FOODS

  • Percentage of consumers who ate foods labeled “reduced fat” in the past two weeks: 79
  • Percentage who ate foods labeled “whole grain”: 56

Eating “better for you” foods seems to be gaining ground over outright dieting. In other words, making more healthful food choices — many with added nutrient value — is replacing calorie depravation. The percentage of adults on a diet has decreased by 10% since 1990, while the percentage of Americans eating healthier has increased. This shows a growing awareness of nutrition-based food decisions. For example, the most recent NPD Dieting Monitor shows that 46% of respondents have increased omega-3 consumption, up from 36% in 2005.

TAKEAWAY: Even with concerns about the economic downturn, eating healthy still remains top-of-mind with consumers. According to a recent NPD Fast Check Survey on economic conditions, adults who identify themselves as financially worse off compared with last year said that eating healthy still had the greatest impact on their food and beverage purchases. Saving money ranked a close second.

SOURCE: NPD Group

DIETING AND HEALTH

  • Percentage of respondents who consider themselves overweight: 58
  • Percentage limiting the amount and types of food they eat: 39
  • Percentages of female respondents willing to limit food intake: 45
  • Percentages of male respondents willing to limit food intake: 34

Of 19 popular diets, low-fat and heart-healthy are the most popular; they also have the greatest percentage of respondents who use food or ideas from the diets but not the diets themselves. Among the various plans, Slim-Fast and calorie counting have the greatest attrition rate; Weight Watchers and low-fat diets are also likely to have been tried and rejected by more than 10% of respondents. Among those simply counting calories — the third most popular diet mentioned — the attrition rate is very high: 23% of respondents have used this approach previously but no longer do so.

TAKEAWAY: Expect the demand for diet-branded foods to grow. New product launches in the category increased from 23 in 2006 to 167 in 2007. This includes not only foods that are “diet branded,” such as South Beach or Weight Watchers, but also “functional” foods and beverages promoting weight loss.

SOURCE: Mintel International

ECONOMIC CHANGES

  • Percentage of consumers trying to use up leftovers: 56
  • Percentage choosing more private-label items: 48

Roughly one-third of adults feel their financial situation is worse this year than last, and the most concerned are those with larger families. Among these “financially concerned” adults, more than half said they are trying to prepare meals at home, to use up leftovers and to stock up when items are on sale, compared with what they were doing a year ago. Price doesn't appear to be the only motivation for consumers to eat more meals at home. They still say that eating healthy is another reason to prepare their own meals.

TAKEAWAY: While much of the media focuses on economic conditions, one factor not often noted in the increase of in-home meal consumption is a leveling-off of women entering the workforce. More stay-at-home moms are a subtle, but strong influence, and will likely become more of a factor in their own right once the current economic situation is resolved.

SOURCE: NPD Group

VITAMINS AND MINERALS

  • Value of the U.S. vitamin and mineral supplement market in 2007: $5.1 billion
  • Expected value of the market in 2012: $4.9 billion

Sales in the vitamin and mineral supplement market have been slowly decreasing since 2003 by 1.7% to 6.7% per year in constant 2007 dollars. Private-label brands are pushing general price points down, while innovative formulations catering to specific groups' needs are giving manufacturers the opportunity to charge more. Sales have been additionally challenged by the increasing popularity of functional and fortified foods that allow consumers to obtain essential nutrients through everyday foods.

TAKEAWAY: Since studies show that older people are more likely to report vitamin and mineral supplement use, expect the wave of Baby Boomers currently reaching retirement age to drive category growth. The population of Americans ages 55-64 and 65-74 will increase by 20.5% and 22.8%, respectively, by 2012.

SOURCE: Mintel International

SUPERFRUITS

  • Percentage growth of superfruit beverages between 2004 and 2006: 47
  • Sales of dried cranberries in FDM channels in 2006: $82 million

Pomegranate, blueberry, cranberry, açaí and goji currently represent the high-profile growth areas within superfruit marketing. They're becoming increasingly mainstream, especially in the beverage market, where cranberry, pomegranate and superfruit blends are providing much of the recent growth in juice and juice drinks. While beverages remain the focus of superfruit marketing, some fruits are moving into other categories, such as produce and bakery.

TAKEAWAY: New superfruit varieties are being developed for market. These include acerola, dragonfruit and camu camu; others with the potential to be superfruits remain largely confined to their region of origin. For example, the lulo or naranjilla is rarely seen outside South America, while marketing of jujube and longan as fruits with functional benefits is limited almost entirely to the Pacific Rim.

SOURCE: Mintel International

SACRED FOODS

  • Value of the kosher food market in the U.S. in 2007: $12.5 billion
  • Number of new kosher-certified products launched in the U.S. in 2007: 4,477
  • Number launched in 2003: 399

Sales of kosher-certified foods have grown steadily over the past few years, at around 10% to 15% annually. Halal-certified products, a $15 million category in the United States, are also gaining ground. Although religious belief does account for some of these sales, safety concerns are the main reason for the popularity of sacred foods right now. Consumers see kosher and halal options as following stricter guidelines than conventional production practices. This has been especially pronounced over the past two years, as meat and other food recalls have seemingly swept the country.

TAKEAWAY: Kosher foods in particular are poised for growth. Between 2002 and 2007, the number of products in that category multiplied by more than 15 times. And with around 400 kosher-certifying agencies in the country, the movement of products to shelves should remain smooth. The biggest hurdle for sacred foods is that many people only buy for certain occasions, mainly on holidays.

SOURCE: Mintel International

OMEGA-3

  • Percentage of consumers who specifically buy omega-3 products: 30
  • Percentage of consumers who aren't sure if they buy products with omega-3: 26
  • Estimated U.S. market for food fortified with omega-3s: $800 million

Omega-3 fatty acids have enjoyed immense popularity as supplements, with more than $700 million in sales in 2006. Now that same demand has translated to the food and drink markets, which are fortifying more and more offerings with omega-3s. Most consumers are aware of the trend, and many say they look specifically for omega-3s in the products they buy. As a health claim, omega-3s purport to improve or reduce the risk of seven of the 11 leading health concerns, including heart disease, arthritis and depression.

TAKEAWAY: Opportunities and pitfalls abound. Omega-3s should show strong growth in the near future, and with nearly as many people unfamiliar with the trend as those who are, there is ample room for expansion. On the science and regulatory side, however, this is a relatively new field of study, and so retailers and manufacturers should take care to craft focused, honest messages.

SOURCE: Mintel International

SUGAR AND SWEETENERS

  • Percentage of consumers in 2006 who avoided full-sugar products: 20
  • Percentage avoiding full-sugar products in 2001: 14

Nearly seven out of 10 adults polled said they want to cut down on or avoid sugar completely, and about four out of 10 adults said they check food labels regularly for sugar. Use of sugar substitutes to sweeten beverages is increasing. Consumption of sugar-sweetened carbonated soft drinks is declining (from 88 annual drinkings per capita in 1997 to 77 in 2006); consumption of diet soft drinks has remained the same. Also, more than half of consumers stated they are aware of, and concerned about, high-fructose corn syrup, one of the most commonly used sweeteners today.

TAKEAWAY: Some 44% of American homemakers said they are extremely or very concerned about serving foods with sugar, the highest percentage noted since 1994. Data continues to show an increase in consumption of foods and beverages that are low-sugar, sugar-free or contain sugar substitutes.

SOURCE: NPD Group

GREEN PRODUCTS & PACKAGING

  • Percentage of consumers willing to pay 1%-10% more for green products: 46
  • Percentage of consumers willing to pay 26%-50% more for green products: 10
  • Percentage of consumers who question authenticity of green claims: 60

Products with ethical, sustainable and related “green” claims are growing fast. This includes free-range, fair trade and organic offerings, as well as sustainable-certified seafood, which has become a particular focus of late. Last year, for example, the Marine Stewardship Council certified 4 million tons of fish. Packaging innovations have also become a part of the trend, with biodegradable and reduced-size containers now on shelves. From an operations standpoint, companies have begun offsetting their carbon output, in some cases even claiming to be “carbon negative.”

TAKEAWAY: Consumers are interested in going green, and surveys show they're willing to pay more for sustainable products. As the market expands, however, so does the potential for confusion. What is green? What isn't green? What does green even mean? This confusion can ultimately hurt sales, and so companies need to think about ways to cut down on what's become known as “green noise.”

SOURCE: Mintel International

GREEN MARKETING

Percentage of consumers rating these segments of the food industry on their progress toward becoming more environmentally friendly:

  • Supermarkets: 30
  • Food/beverage manufacturers: 22
  • Full-service restaurants: 15
  • Quick-service restaurants: 15

Perhaps because of their visible support for reusable shopping bags and mission-minded retailers like Whole Foods Market, supermarkets get the highest marks for their eco-friendly practices.

SOURCE: NPD Group