Diet Aids Market

Published by: Packaged Facts

Published: Mar. 1, 1995 - 175 Pages

Table of Contents

I. The Products

• Scope of Report
  
  • Food and Beverages Sold at Retail
    
  • Products Not Covered
    
• A Brief History
  
  • Not a New Phenomenon
    
  • Vitamins Discovered
    
  • Food Processing Becomes an Industry
    
  • Organic Gardening Magazine Starts in 1942
    
  • Nutritionists Criticize Processed Foods
    
  • 1960s Counterculture Popularizes Health Foods
    
  • Consumer Activism Grows
    
  • Vegetarianism
    
  • Fitness and Nutrition
    
  • Alar Scare of 1989 Opens Up Organic Market
    
  • Medical and Government Studies Aid the Cause
    
• Market Definition
  
  • Is It "Health" or "Natural"?
    
  • Defining Natural Foods
    
  • Quality of Ingredients
    
  • Minimal Processing
    
  • Philosophy
    
• Product Categories
  
  • Products Parallel Mass Market
    
  • 12 Product Categories
    
  • Grains, Beans, and Grain Products
    
  • Oils, Vinegars, and Sweeteners
    
  • Tofu, Tempeh, Miso, and Sea Vegetables
    
  • Dairy Products and Dairy Substitutes
    
  • Meat Alternatives
    
  • Meat, Poultry, and Fish
    
  • Fresh Produce
    
  • Prepared and Convenience Foods
    
  • Condiments, Sauces, and Seasonings
    
  • Crackers and Snacks
    
  • Cookies, Candy, and Desserts
    
  • Beverages
    
• Government Regulations
  
  • Three Regulatory Agencies
    
  • The FDA
    
  • The USDA
    
  • The FTC
    
  • New Labeling Laws
    
  • Exceptions to Nutrition Claims
    
  • Allowable Health Claims
    
  • Health Food Industry Supports Labeling Changes
    
  • FDA and USDA Restrict "Healthy" Labeling
    
  • "Natural" Foods
    
  • What is Organic?
    
  • A Self-Regulated Industry
    
  • State Organic Standards
    
  • The Certification Process
    
  • Organic Foods Production Act of 1990
    
  • Federal Standard Could Boost Industry, But Some Opposed
    
  • Proposed Federal Standards
    
  • Retailers Will Need Certification, Too
    
  • Organic Is Not Necessarily Better
    
• Food Technology
  
  • Gene Cuisine
    
  • Bovine Growth Hormone
    
  • Irradiation
    
  • "Designer Foods" and "Nutraceuticals"
    
  • Hidden Agendas
    
  • [Chart] New NLEA Labeling Requirements
    
  • [Graphic] Retail Sales of Health and Natural Foods: 1990-1994
    

II. The Market

• Market Size and Growth
  
  • Estimates of Market Size Vary by Source
    
  • Retail Sales Near $4.8 Billion in 1994
    
  • Growth Remarkable for Past Three Years
    
  • [Table] Estimated Retail Sales and Growth of Health and
    Natural Foods: 1990-1994
    
• Factors in Market Growth
  
  • Food and Health Connected
    
  • New Dietary Guidelines
    
  • Health Concerns Spur Sales of Healthier Foods
    
  • "Healthier" Does Not Always Mean "Natural"
    
  • Confusion and Conflicting Feelings About Healthy Eating
    
  • A Countertrend Toward Unhealthy Eating
    
  • Vegetarianism Gaining
    
  • Natural Foods Supermarkets Spur Industry
    
  • Competition Making Industry Stronger
    
  • Major Food Companies Entering Arena
    
  • Stronger Financing Helps Drive the Industry
    
  • Mainstream Outlets Rediscovering Natural Foods
    
  • Natural Foods Going Mainstream
    
  • Industry Wakes Up to Convenience Products
    
  • Natural and Organic Foods Gaining Attention from
    Restaurant Chefs
    
  • Food Safety Issues Help Sales of Organic Products
    
  • Environmental and Social Responsibility
    
  • Premium Prices of Organic Foods Limit Growth
    
  • [Graphic] Projected Retail Sales of Health and
    Natural Foods: 1995-1999
    
• Market Projections
  
  • Sales to Reach $8.7 Billion by 1999
    
  • [Table] Projected Retail Sales and Growth of Health and
    Natural Foods: 1990-1994
    
• Market Composition
  
  • Sales by Product Group; Packaged Groceries on Top
    
  • [Table] Sales by Product Group in Health and Natural
    Foods Stores (1993)
    
  • Organic Foods Sales
    
  • Natural Foods Stores the Leading Retail Outlet
    
  • [Graphic] Sales by Retail Outlet: Health and
    Natural Foods (1993)
    
  • Sales by Region
    
  • [Table] Sales by Region: Health and Natural Foods (1993)
    

III. The Marketers

• The Marketers
  
  • About 1,500 Companies in the Field
    
  • Large and Small, Most Privately Held
    
  • Broad-Line Marketers
    
  • Leading Marketers in Single Product Categories
    
  • Growers and Producers
    
  • Mass Marketers
    
  • [Chart] Selected Marketers and Brands of Health and
    Natural Foods
    
• Marketer and Brand Shares
  
  • No Data Available by Brand or Category
    
  • Health Valley Largest Company Overall
    
  • Smucker Dominates the Natural Juice Category
    
  • [Chart] Leading Marketers and Brands in Selected
    Product Segments
    
• The Competitive Situation
  
  • Industry Becoming More Sophisticated
    
  • Companies Come and Go, Move and Grow
    
  • Mass Marketers Offer "Healthy" Foods
    
  • Four Ways Mass Marketers Compete
    
  • Developing New Products Risky
    
  • Repositioning Existing Products
    
  • Acquiring Natural Foods Companies
    
  • Pillsbury's Joint Marketing Agreement with ADM
    
  • A Healthy Foods Conglomerate?
    
  • Organic Foods Spreading, But Most Major Companies
    Still Avoid Organics
    
  • Natural Foods Marketers Going Mainstream
    
  • Crossovers Carry Risks
    
  • Premium Prices Can Be a Plus
    
  • Little Price Competitiveness
    
• Selected Company Profiles
  
  • Archer Daniels Midland Co.
    
  • Arrowhead Mills, Inc.
    
  • Celestial Seasonings, Inc.
    
  • Coleman Natural Meats, Inc.
    
  • Earth's Best, Inc.
    
  • Eden Foods, Inc.
    
  • Fantastic Foods, Inc.
    
  • Guiltless Gourmet, Inc.
    
  • Health Valley Natural Foods, Inc.
    
  • Lundberg Family Farms
    
  • Morinaga Nutritional Foods
    
  • Organic Valley/CROPP Cooperative
    
  • J.M. Smucker Co.
    
  • Tree of Life, Inc.
    
  • 21st Century Food Products, Inc.
    
  • U.S. Mills
    
  • Vestro Foods, Inc.
    
  • Vitasoy (U.S.A.), Inc.
    
  • Weetabix, Ltd. (Barbara's Bakery, Inc.)
    
  • Welch's, Inc. (Cascadian Farm, Inc.)
    
  • Wholesome & Hearty Foods, Inc.
    
  • Worthington Foods, Inc.
    
• Marketing Trends
  
  • Larger Companies Position Themselves in Mass Market
    
  • Some Target Gourmet Industry
    
  • Marketing to Children
    
  • Political Correctness
    
  • Organic and Nonorganic Products from Same Marketer
    
• Product Trends
  
  • Growing Variety of Products
    
  • Product Claims Measured
    
  • [Table] Product Claims on New Product
    Introductions: 1992 vs. 1993
    
  • Marketers Continue to Cut the Fat
    
  • Convenience Foods Appeal to Busy Consumers
    
  • Mainstream Look-Alikes
    
  • New Ethnic Entries
    
  • Hot Products
    
  • Instant Meals
    
  • Frozen Entrees
    
  • Canned and Jarred Entrees
    
  • Better-Tasting Meatless Meats
    
  • Ready-to-Eat Cereals Booming
    
  • Cookies—Fat-Free vs. Guilty Pleasures
    
  • Grains, Flours, and Pasta
    
  • Granola Bars
    
  • Flavored Oils and Vinegars
    
  • Baking Alternative
    
  • Pasta Sauces
    
  • "Lite" Tofu
    
  • Sales of Organic Dairy Products Surge
    
  • Hemp Seed and Other Alternative Cheeses
    
  • Earth's Best Expands its Baby Food to Juniors
    
  • Snack Foods Overcrowded, But Some New Twists
    
  • Desserts Rival Mainstream Entries
    
  • Beverage Flavors Go Exotic
    
  • Vitamin-Enriched Sodas
    
  • [Chart] Selected New Product Introductions:
    By Category (1993-1994)
    
• Packaging Trends
  
  • Package Design Becoming More Sophisticated
    
  • Many Packages Copy-Intensive
    
  • More—or Less—Packaging?
    
  • Environmentally Correct Packaging
    
• Advertising and Promotion
  
  • Little Measured Advertising
    
  • Magazines the Preferred Medium
    
  • A Few Use TV
    
  • Radio Is Another Alternative
    
• Advertising Positioning
  
  • Copy-Intensive Advertising
    
  • Natural Ingredients and Processes
    
  • Health and Taste
    
  • Convenience
    
  • Human and Environmental Health
    
  • Link to Earth Through Farmer
    
  • Organic Certification a Selling Point
    
  • Sex Appeal
    
  • Hispanic Marketing
    
  • Versatility
    
  • Examples of Consumer Advertising
    
• Consumer Promotions
  
  • Some Companies Beginning to Use Coupons
    
  • Frequent Purchaser Rebates
    
  • Consumer Education
    
  • "Missionary Marketing"
    
  • Building Goodwill
    
  • Examples of Consumer Promotions
    
• Trade Advertising and Promotions
  
  • Use of Three Key Trade Publications
    
  • Trade Ads Double as Consumer Ads
    
  • Promotions
    
  • Trade Allowances and Deals
    
  • Co-Op Offers
    
  • In-Store Display Materials and Supports
    
  • Retailer Incentives
    
  • Examples of Trade Advertising and Promotions
    
• Trade Shows
  
  • A Forum for the Industry
    
  • Major Shows
    
• Industry Organizations
  
  • The National Nutritional Foods Association
    
  • OFPANA
    
  • Other Associations
    

IV. Distribution and Retail

• Distribution
  
  • Specialty Distributors the Major Source
    
  • Substantial Organic Sales Through Direct Selling
    
  • The Role of Wholesalers
    
  • Shakeout Among Distributors
    
  • New Pricing Policies
    
  • Wholesalers Offering More Services
    
  • Some Wholesalers Offer Private Label
    
  • Direct Buying
    
  • Co-Op Buying
    
  • Brokers Support Marketers' Efforts and Aid Retailers
    
• Retail Overview
  
  • Number of Retail Outlets
    
  • Health and Natural Foods Stores the Leading Outlets
    
  • Six Types of Health and Natural Foods Store Formats
    
  • Health Food Chains
    
  • Mass-Market Outlets
    
  • Mail Order, Farmers' Markets, and Other Outlets
    
  • [Table] Sales of Health and Natural Foods: By Retail Channel
    
• Health and Natural Foods Stores
  
  • Number of Outlets Growing
    
  • [Table] Health and Natural Foods Stores: By Format
    
  • Natural Foods Supermarkets
    
  • Not All Natural Foods Supermarkets Successful
    
  • Is the Market Self-Limiting?
    
  • Small Stores Can Succeed with Niche Marketing
    
  • Medium Stores Enlarging
    
  • Private Corporations and Sole Proprietorships Favorite
    Ownership Forms
    
  • Food Co-Ops
    
  • Most Stores Well-Established
    
  • Site Selection
    
  • Personal Conviction Plays a Role
    
  • Retail Philosophy
    
  • Profile: Whole Foods Market, Inc.
    
  • Profile: Fresh Fields
    
• Health Food Chains
  
  • Few Major Chains
    
  • Chains Focus on Non-Foods
    
  • Profile: General Nutrition Centers (GNC)
    
• Supermarkets and Mass Marketers
  
  • Vast Majority of Supermarkets Carry Natural Foods
    
  • Mass Merchandisers
    
  • Drugstores
    
  • Profile: Osco's New Vision
    
  • Warehouse Clubs
    
  • Supermarkets Increase Potential Consumer Base for
    Natural Foods
    
  • Shelf Integration or Separate Sections
    
  • Most Supermarkets Lack Commitment to Organics
    
• Other Outlets
  
  • Farmers' Markets
    
  • Profile: New York City's Greenmarket
    
  • Mail Order
    
  • Profile: Walnut Acres
    
  • Real "Alternative" Outlets
    
• Operating Performance
  
  • Sales Performance
    
  • Sales per Square Foot
    
  • Gross Profit Margin
    
  • Turnover
    
  • [Table] Performance of Health and Natural Foods Stores (1993)
    
  • Number of Wholesale Suppliers Drops
    
  • Retailers Remodeling, Expanding
    
  • Foodservice
    
  • Retailers Adding Refrigerator and Freezer Space
    
• Retail Advertising and Promotions
  
  • Most Not Sophisticated
    
  • Favorite Advertising Media
    
  • [Table] Retailers' Favorite Ad Media
    
  • Retail Advertising Budgets
    
  • Advertising Positioning
    
  • Retail Promotions
    
  • Consumer Education
    
  • Community Service and Goodwill Policies
    

V. The Consumer

• Consumer Use
  
  • Many Studies but No Definitive Profile
    
  • Only 5% of Public Shop in Health Food Stores
    
  • Education, Job Status, and Affluence Key Factors
    
  • Education Signals Use of Health Foods
    
  • Occupation Another Determinant
    
  • Affluence Points to Health Foods
    
  • Baby Boomers Prime Consumers
    
  • Marital Status, Household Size, Children
    
  • Health Food Stores Strongest in West
    
  • [Chart] Demographic Characteristics Favoring Shopping
    in Health Food Stores
    
• Vegetarians
  
  • Who Is a Vegetarian?
    
  • The Vegetarian Times Survey
    
  • The Roper Poll
    
  • The HealthFocus Study
    
  • [Table] Frequency of Using Meatless Meals
    
  • The Natural Health Survey
    
  • Reasons for Being a Vegetarian
    
  • [Table] Single Most Important Reason for
    Becoming a Vegetarian
    
  • Teenagers Choosing Vegetarianism
    
  • Vegetarian Times Subscriber Profile
    
  • Vegetarians Are Prime Natural Foods Consumers
    
• Attitudes Toward Health and Nutrition
  
  • Consumers Shop for Healthy Foods
    
  • [Chart] Demographic Profile of Health-Conscious
    Shopper Groups
    
  • Majority Have Changed Their Diets
    
  • [Table] Changes Made in Diet Because of Health Concerns
    
  • Most Americans Follow Healthy Guidelines
    
  • [Table] Trends in Key Aspects of Diet and Nutrition
    
  • Men Show Growing Concern About Nutrition
    
• Organic Foods Purchasers
  
  • Consumer Use of Organic Foods
    
  • Age and Education Are Factors
    
  • Affluence Not a Factor
    
  • Organic Going Mainstream
    
  • Produce the Most Commonly Used Product
    
  • Purchase Trends by Organic Product
    
  • [Table] Purchase Trends By Organic Product: 1992
    
    

Appendix I: Examples of Advertising and Promotions

Appendix II: Names and Adresses of Selected Leading Marketers

Appendix III: Publications in the Health and Nautral Food Fields

Abstract

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