Overview
Introduction
This report examines the extent and causes of the childhood obesity epidemic in the U.S. - a major concern since incident rates have tripled over the last 20 years. Due to today’s culture of culpability and blame allocation, this report looks at the threats posed for food and beverage manufacturers. It examines whether the downfall of Big Tobacco is an indication of things to come for Big Food. New product and marketing opportunities are also described in detail.
Scope
Analysis of the U.S. food and beverage market in relation to the rise in obesity among the U.S. adult and child populations
Examination of U.S. youth lifestyles and attitudes, consumption patterns and purchasing behaviors
Comparison of the downfall of Big Tobacco with respect to the food and beverage industry
Identification of new product category and marketing initiatives for the youth market
Report Highlights
In terms of consumption, 63% of 12-19 year olds have diets meeting 100% or more
of the RDA of vitamin C, 29% for zinc and just 25% for calcium. With regards to
exercise, only 8% of elementary schools, 6.4% of middle schools and 5.8% of high
schools provide daily physical education.
Over half of Datamonitor Industry Survey respondents thought that new labeling
regulations and restrictions on federally funded projects are likely within 2-5
years, due to childhood obesity fears. In addition, survey respondents placed
“poor lifestyle choices,” “poor self-discipline” and “poor parenting skills” as
the highest in relevance to the rise in childhood obesity.
The professor credited with the 35-year assault on tobacco companies, is now
targeting the food and drink companies, outlining a four-step approach to assign
specific shares of blame to specific companies.
Reasons to Purchase
Quantify size and penetration of obesity in the U.S.
Understand impact of potential legislation and additional product taxation
Identify new product and marketing opportunities
Achieve product growth objectives while limiting exposure to costly litigation
OVERVIEW
MARKET CONTEXT
Key Findings
Food and beverage manufacturers must learn from the downfall of Big Tobacco and recognize the dangerous position they are in with respect to blame concerning the rise in childhood obesity. Manufacturers have a great opportunity for product leadership and category reinvention due to a new focus on disciplined eating for health rather than beauty reasons.
Research Methodology
Industry Opinion Survey conducted July-August 2002
Comprehensive secondary research
Market Regions
US coverage
Drivers and Trends
Overview of the implications of the childhood obesity epidemic and how it will affect the U.S. food and beverage industry.
How vulnerable are CPG manufacturers to obesity-driven legislation and litigation?
What are the implications of youths’ response to today’s media and technology-driven environment?
What new products and marketing opportunities will emerge?
FUTURE DECODED
Food and beverage manufacturers will be forced to shoulder some blame and pay the price for the rise in U.S. childhood obesity statistics
New opportunities will arise as fads emerge in the fight against obesity and the search for “health”
ACTION POINTS
Develop and leverage innovative ingredients to improve the taste of “low-” food for the youth market, at competitive prices Become part of the solution, not part of the problem
MARKET PERSPECTIVE
This chapter looks at whether Big Food will be the next Big Tobacco. Lessons to be learned from the method of attack faced by Big Tobacco are applied to the food and beverage industry.
Current health indicators
Looks at the extent of over- and under-nutrition of the U.S. under 20’s
Dangers of childhood obesity
Explores the existing and potential health implications of being overweight during childhood
Public health perspectives
Considers the obesity epidemic in relation to other high-risk youth behaviors
How does the rise in childhood obesity compare to second-hand smoking?
As local and federal government becomes increasingly pressured financially and politically, what are the potential legislative and taxation implications?
Following a leap in awareness of consumers and hence private litigators, what can food and beverage manufacturers expect in terms of private legal action?
THE CONSUMERS
This chapter looks at the U.S. youth population, exploring how and why they eat and behave as they do.
Demographics
The youth population size and how it will change over the next five years
Economic status of the youth population
Attitudes
Youth attitudes towards body weight issues
Drivers of youth exercise, Internet use and lifestyle
Youth/parent shopping and purchasing dynamics
THE PRODUCTS
This chapter looks at the ways in which food and beverage products can and will be forced to change in response to the heightened awareness regarding obesity.
Youth vegetarianism
Consumer behavior and opportunities for new products and marketing approaches
Product content
Likely market driven and enforced changes in future food and beverage product content as a result of the rise in childhood obesity
Pre-emptive industry initiatives
Initial fast food and CPG industry responses to tightening product content and labeling control
DATASETS
Table 1: Classification of obesity
Table 2: Annual economic burden of obesity in youths aged 6-17 years, 1979-1999
Table 3: U.S. nutraceuticals market value by category ($million), 2001-2006
Table 4: Benefits of key nutrients
Table 5: Morbidity of obesity in youth
Table 6: Risk factors associated with overweight and obesity
Table 7: Birth-rates and number of births, by age of teenage mothers, 1991-2000
Table 8: Youth population (millions), split by age group, 2001-2007
Table 9: Age positioning of new nutraceutical launches, September 1997 to August 2001
Table 10: List of top five fast foods, CSPI, August 2002
Table 11: List of worst five fast foods, CSPI, August 2002
Table 12: Percentage of individuals with diets meeting 100% or more of the 1989
Recommended Dietary Allowances (RDAs), by age, 1994-1996
Figure 1: Consumer reaction to obesity hype, by level of lifestyle restructure efforts
Figure 2: Organic Milk-on-the-Moo-ve - Horizon Organic Holding Corp.
Figure 3: Manufacturer opinion of drivers of the rise in childhood obesity
Figure 4: Prevalence of overweight among 6-19 year olds, for selected years 1963 through 1999
Figure 5: U.S. population with BMI >30 by state, 1985-2000
Figure 6: Percent of individuals with diets meeting 100% or more of RDA, by age, 1994-1996
Figure 7: Major public health issues - causation and consequence
Figure 8: Primary and secondary causes of the rise in childhood obesity
Figure 9: U.S. survey percentage of boys and girls between the ages of six and 11 years, and 12 to 19 years, who dine away from home by location, November 2001
Figure 10: Expected changing regulatory environment timeframe, by regulation type
Figure 11: U.S. population projections for 0-21 year old age groups
Figure 12: Reasons for marketing to youths
Figure 13: Weight Status and Weight-Related Attitudes and Behaviors Among Adolescent Girls and Boys
Figure 14: Number of children participating in sports 2001 and the change in % of participating population between 1991 and 2001, both split by sport and age
Figure 15: Survey percentage breakdown of 13 to 19 year olds, that participate in 11 sports, split by sex, 2001
Figure 16: Medium of choice for 8-17 year olds, split by gender, 2002
Figure 17: Use of the Internet by teens, split by age group, 2001
Figure 18: SonicBlue - SP50C Coke CD player, 2002
Figure 19: Factors contributing to the increased effectiveness of pester power
Figure 20: Civilian mothers in the U.S. labor force, and % of those mothers employed, by age of youngest child, 1975-2001
Figure 21: Independence of young consumers, split by age
Figure 22: Manufacturer reasons for business discussions relating to youth obesity
Figure 23: Tools for targeting the youth market
Figure 24: Kraft - Rip-Ums, 2002
Figure 25: Drivers of new product development for youths
Figure 26: Datamonitor’s research methodology
