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Published by: Mintel International Group Ltd.
Published: Mar. 1, 2006 - 93 Pages
Table of Contents
- INTRODUCTION AND ABBREVIATIONS
- Definition
- Figure 1: Explanation and examples of health claims
- Consumer research
- ACORN
- ABBREVIATIONS
- EXECUTIVE SUMMARY
- Market reaches one billion
- Yogurt and juice drinks grow fastest
- New breed of consumer
- Healthy choice
- Rapid market expansion
- Legal benefits
- Large companies dominate
- ...own-labels move in
- Consumer buy-in
- Gender differences
- Visible AB slant
- A functional future
- Current trends persisting, market could double in size
- MARKET BACKGROUND
- Consumer awareness
- Prevention is better than cure
- Figure 2: Agreement with lifestyle statements on health, by gender, 2001-05
- Attitude versus action
- Figure 3: Agreement with lifestyle statements on health, by gender, 2001-05
- Good intentions
- The health phenomenon
- Figure 4: UK growth rates of healthy food and drink products, by sector, 2000-05
- Low-carb and GI
- Organics
- Cross-over between free-from and functional
- Functional foods - the evolution
- Health goes mainstream
- A different approach
- ...or food with function?
- Science - claim and counter claim
- Legislative issues
- Novel foods
- The Joint Health Claims Initiative (JCHI)
- Labelling and claims
- MARKET SIZE AND SEGMENTATION
- Value tops one billion
- Figure 5: Estimated UK retail sales of functional food and drink products, 2000-05
- The price of health
- Varying performance
- Figure 6: UK retail sales of functional food and drink products, by sector and value, 2001-05
- Soya soars
- Yogurt drinks go down well
- Children are the future
- Juice is next big thing
- Older categories slow down
- Significant ‘others’
- Growth rate comparisons
- Figure 7: Growth rates of overall food and drink categories compared to growth rates of functional food and drink products, 2003-05
- Functionals grow fastest
- Functional water struggles for credibility amongst consumers
- Price sensitivity varies by category
- Figure 8: Price comparison between functional and mainstream spreads, 2006
- Figure 9: Price comparison between tropicana juice variants, 2006
- THE SUPPLY STRUCTURE
- DAIRY
- Figure 10: Leading brands in the dairy category, functional ingredient and basic health claim, 2006
- COMPANY/BRAND ACTIVITIES (DAIRY)
- Alpro/Provamel
- Danone SA
- Unilever UK (Flora)
- Benecol (McNeil Consumer Nutritionals)
- Müller
- So Good International
- Yakult
- Own-label
- What’s next for the dairy sector?
- Probiotic yogurts continue to evolve
- Figure 11: Timeline showing launch of adult probiotic drinks
- DRINKS
- Figure 12: Leading brands in the drinks category, functional ingredient and basic health claim, 2006
- COMPANY/BRAND ACTIVITIES (DRINKS)
- Glaxo SmithKline (GSK)
- Tropicana (Pepsico International)
- Red Bull Co
- What's next for drinks?
- CEREALS
- Figure 13: Leading brands in the cereals category, functional ingredient and basic health claim, 2006
- COMPANY/BRAND ACTIVITIES (CEREALS)
- Jordans
- Kellogg
- Cereal Partners UK (Nestlé)
- Quaker Oats
- OTHER (BREAD AND EGGS)
- Figure 14: Examples of other leading brands, functional ingredient and basic health claim, 2006
- COMPANY/BRAND ACTIVITIES (OTHERS)
- Allied Bakeries
- Warburtons
- Dean's Foods Ltd
- Organic and functional crossover could cause confusion
- NEW PRODUCT TRENDS
- Figure 15: New product launches in functional foods by food category, January 2005-06
- Beverages and dairy lead NPD
- Dairy moves comfortably into own-label
- Beverages
- Omega 3
- Children's products
- ADVERTISING EXPENDITURE
- Adspend doubles
- Figure 16: Main monitored media advertising expenditure on functional foods in the dairy sector, 2001-05
- Adspend reflects buoyant sector
- Expenditure by brand
- Figure 17: Main monitored media advertising expenditure on functional foods in the dairy sector, by top brands, 2001-05
- NPD and brand extension drive adspend
- Actimel challenges probiotic drinks
- Flora pro.activ spreads
- Muller adds to range
- Expenditure by media type
- Figure 18: Main monitored media advertising expenditure on functional foods within the dairy sector, by media type, 2001-05
- Growth of press and radio
- Expenditure by quarter
- Figure 19: Main monitored media advertising expenditure on functional foods within the dairy sector, by quarter, 2005
- A summer-time message
- DISTRIBUTION
- Multiples in charge
- Figure 20: Estimated retail sales of functional food and drinks, by distribution channel, 2001-05
- Multiples take on function
- Mixed welcome for own-label
- Pricing issues
- Shelf space grows
- THE CONSUMER
- Push or pull?
- Who is in the driving seat?
- Health headlines dominate the media
- Figure 21: Examples of health-related news headlines, 2004-06
- Relevance of health issues
- Figure 22: Health issues of concern, November 2005
- Gender bias
- Figure 23: Health priorities, by gender, November 2005
- Figure 24: Repertoire of number of health concerns, November 2005
- Targeting the healthy wealthy
- Figure 25: Relevance of health issues by socio-economic group, October 2005
- Age concern
- Figure 26: Relevance of health issues by age, October 2005
- Targeting younger consumers
- The consumer lifecycle
- Figure 27: Relevance of health issues according to mean age, November 2005
- Obesity scores highly
- A different type of pester power
- The family way
- Age-specific targeting
- The media has a huge impact and mostly seems to affect ABs
- THE CONSUMER - DETAILED DEMOGRAPHICS
- Relevance of health concerns
- Figure 28: Health issues of concern, November 2005
- Figure 29: Top 5 health issues of concern, by demographic sub-group, November 2005
- Figure 30: Top 5 health issues of concern, by demographic sub-group, November 2005
- Figure 31: Health issues of concern, by demographic sub-group, November 2005
- Figure 32: Health issues of concern, by demographic sub-group, November 2005
- Figure 33: Health issues of concern, by demographic sub-group, November 2005
- Figure 34: Health issues of concern, by demographic sub-group, November 2005
- Cross-analysis
- Figure 35: Cross-analysis of health concerns, November 2005
- Figure 36: Cross-analysis of health issues of concern, November 2005
- Figure 37: Mean age of health concerns, November 2005
- THE FUTURE AND FORECAST
- Market development
- Consumer development
- New platforms
- New ingredient trends
- Naturally functional
- The backlash?
- Opportunities ahead
- If current trends persist, market could double in size by 2010
- Figure 38: Forecast for the expenditure on functional foods, at current and constant prices, 2005-10
- FACTORS USED IN THE FORECAST
- APPENDIX: RESEARCH METHODOLOGY
AbstractThe functional food market was worth an estimated £1.1bn by the end of 2005, having grown 143% since the start of the decade. In particular, probiotic yoghurts and yoghurt drinks saw an incredible value rise of 183% from £97 million in 2001 to £275 million in 2005, representing one quarter of total functional food sales.
The spectacular emerge of functional foods owes much to an evolution in consumer lifestyle and diet. They are outpacing their mainstream counterparts thanks to premium pricing as well as increased penetration from consumer trading up. Health rather than convenience is now the standard in food claims, responding to greater consumer awareness of the link between diet and well-being. Mintel’s research indicates the market still being in a state of evolution with product repertoires expanding rapidly as soon as new functional ingredients emerge.
About Mintel’s report:
Mintel’s new market intelligence report provides the user with a fresh insight into a market with plenty of scope for further growth.
Compiling together the most sought-after trend data and authoritative, independent market analysis, it offers you a vital way of fully understanding the retail market for functional foods. It also offers you unique findings from exclusive consumer research; invaluable information that will enable you to tailor your business to real consumer demand. Mintel’s research report has been designed to help you:
- Trace UK retail sales of functional food and drink products
- Track market performance, sector by sector and the key dynamics influencing growth
- Gain a fresh insight into the healthy lifestyle phenomenon that is driving the market
- Form an opinion on the “functional food - or food with function” discussion
- Observe the market’s key brands, shares and activities
- Explore the characteristics and demands of a new breed of consumers and tailor your offering and promotional strategy accordingly
- Pinpoint market potential before your competitors
- Unravel the importance of functional claims in spreads and yogurts
- Learn how the juice giants have failed to make their mark as the next big thing
- Stay ahead of the latest ingredient trends
- Identify future platforms in the market and build realistic business models.
Intriguing findings include:
- Over half of all adults (55.3%) agreed that they should do a lot more about their health compared to 50.5% just four years previously.
- With significant numbers of consumers wanting to be healthier (31.2%), but too busy to take action, there has been an explosion of interest in foods with added health benefits, from the so-called “superfoods” to functional foods.
Get Full Details About This Report >>
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