Diet Foods Market Assessment 2007 : Market Research Report

Diet Foods Market Assessment 2007

Published by: Key Note Publications Ltd

Published: Mar. 1, 2007 - 222 Pages

Executive Summary
1. Introduction
BACKGROUND AND DEFINITIONS
2. Strategic Overview
MARKET DYNAMICS AND SEGMENTATION: Levels of Overweightness and Obesity; Table 1: Trends in Body Mass Index by Sex (% of adults), 1994, 1996, 1998, 2000, 2002, 2004 and 2005; Figure 1: Body Mass Index by Sex (% of adults), 2005; Table 2: Body Mass Index by Sex and Age (% of adults), 2005; The Body's Dietary Requirements; The `Balance of Good Health'; Table 3: `Balance of Good Health' Guide; The Body's Need for Energy; Table 4: Average Daily Energy Intakes, Excluding Alcohol (kilocalories, kilojoules and grams per person per day), 1974, 1993, 1998 and 2004/2005; Table 5: Estimated Average Requirements for Energy by Age Group by Sex (kcal per day); Guideline and Actual Energy Intakes; Table 6: Recommended Intake of Fats, Protein and Carbohydrate for Energy Needs (% of food and drink energy, excluding alcohol); Table 7: Actual Intake of Fats, Protein and Carbohydrate (% of food and drink energy, excluding alcohol), 1993, 1998 and 2004/2005; Sources of Energy in the British Diet; Table 8: Sources of Energy in the Diet of British Adults (% contribution to average daily intake); Fats; Table 9: Major Food Sources of Saturated and Unsaturated Fatty Acids; Proteins; Table 10: Protein Content of Selected Foods (grams per 100 grams of food); Carbohydrates; Table 11: Carbohydrate Content of Selected Foods (grams per 100 grams of food); Nutritional Requirements by Age Group; Children; Teenagers; Adults; Table 12: Total Average Energy Intake per Person by Food Type, Excluding Alcohol (kilocalories), 2003/2004 and 2004/2005; Trends in Consumption of Selected Foods; Table 13: Consumption of Selected Foods (grams/millilitres per person per week), 1974, 1993, 1998, 2003/2004 and 2004/2005; Regular Participation in Sport and Leisure Activities; Table 14: Regular Participation in Sport and Leisure Activities in the Past 12 Months (% of adults), 2006; Trends in Numbers of Working Women; Table 15: The UK Working Population by Sex (million), 1971, 1975, 1980, 1985, 1990, 1995, 2000 and 2005; Table 16: The UK Working Population — Full- and Part-Time Workers by Sex (million), 1985 and 2005; Market Size; Table 17: The Total Market for Diet Foods and Drinks by Sector by Value at Current Prices (£m at rsp), 2004/2005 and 2005/2006
DISTRIBUTION
COMPETITIVE STRUCTURE
ADVERTISING
THE CONSUMER: Membership of Slimming Clubs; Table 18: Membership of Slimming Clubs by Sex (% of adults), 2000-2005; Persons Trying to Slim; Table 19: People Trying to Slim by Sex and Age (% of adults), 2006; Visits to Leisure Centres, Health Clubs and Gymnasia; Table 20: Frequency of Visits to Leisure Centres in the Previous 12 Months by Sex and Age (% of adults), 2006; Table 21: Frequency of Visits to Health Clubs in the Previous 12 Months by Sex and Age (% of adults), 2006; Table 22: Frequency of Visits to Gymnasia in the Previous 12 Months by Sex and Age (% of adults), 2006
MARKET FORECASTS: Table 23: The Forecast Total Market for Diet Foods and Drinks by Sector by Value at Current Prices (£m at rsp), 2007-2011
3. Market Analysis
BACKGROUND: Diets and Diet Foods; The Glycaemic Index; Table 24: Glycaemic Index Ratings for Selected Foods; Other Diet Plans; Low-Fat and Reduced-Sugar Foods and Drinks; Low-Carbohydrate Foods and Drinks; The Atkins Diet; Atkins Low-Carbohydrate Foods; Other Manufacturers of Low-Carbohydrate Foods; Low-Calorie Foods and Drinks; Manufacturers of Low-Calorie Slimming Foods
MARKET SIZE: Low-Fat and Reduced-Sugar Foods and Drinks; Table 25: The Low-Fat and Reduced-Sugar Foods and Drinks Sector by Product Category by Value at Current Prices (£m at rsp and %), 2004-2006; Figure 2: The Low-Fat and Reduced-Sugar Foods and Drinks Sector by Product Category by Value (%), 2006; Dairy Products; Soya Milk; Bakery Products; Ready Meals; Salad Accompaniments, Sauces and Soups; Other Products; Low-Carbohydrate Foods and Drinks; Table 26: The Low-Carbohydrate Foods and Drinks Sector by Category by Value at Current Prices (£000 at rsp), 2004/2005 and 2005/2006; Low-Calorie Foods and Drinks
4. Advertising and Promotion
MAIN MEDIA ADVERTISING EXPENDITURE: Table 27: Main Media Advertising Expenditure on Low-Carbohydrate and Low-Fat/Reduced-Sugar Foods (£000), Years Ending September 2004-2006
ADVERTISING RESTRICTIONS
FOOD LABELLING
5. Distribution
SALES BY RETAIL OUTLET: Table 28: Retail Sales Distribution of Selected Foods by Value (%), Year Ending 26th February 2006
6. An International Perspective: EUROPE
7. PEST Analysis
POLITICAL FACTORS
ECONOMIC FACTORS
SOCIAL AND DEMOGRAPHIC FACTORS
TECHNOLOGICAL FACTORS
8. Consumer Dynamics
OVERVIEW: Table 29: Summary of Research Findings — Consumers' Habits and Attitudes Regarding Dieting and Related Issues (% of respondents), December 2006
DIETING: Respondents Who Were on a Diet; Table 30: Those Currently on a Diet (% of respondents), December 2006; Respondents Who Were Not on a Diet, But Who Had Been on One in the Past Year; Table 31: Those Not Currently on a Diet, But Who Had Been on One in the Previous 12 Months (% of respondents), December 2006; Respondents Who Did Not Perceive a Need to Diet; Table 32: Those Who Did Not Believe That They Needed to Diet (% of respondents), December 2006; Respondents Planning to Go on a Diet in the Near Future; Table 33: Those Planning to Go on a Diet in the Near Future (% of respondents), December 2006
PURCHASING OF LOW-FAT OR REDUCED-SUGAR PRODUCTS: Tendency to Buy Low-Fat or Reduced-Sugar Versions of Foods or Drinks; Table 34: Tendency to Buy the Low-Fat or Reduced-Sugar Versions of Foods or Drinks (% of respondents), December 2006; Belief in the Importance of a Balanced Diet of Healthy `Ordinary' Foods Instead of Buying Low-Calorie, Low-Carbohydrate or Low-Fat Versions; Table 35: Belief in the Importance of Having a Balanced Diet of Healthy `Ordinary' Foods Rather Than Buying Low-Calorie, Low-Carbohydrate or Low-Fat Versions (% of respondents), December 2006
FOOD LABELLING: Tendency to Read Labels to Check Calorie, Fat, Salt and Sugar Contents of Foods; Table 36: Tendency to Read the Labels on Foods and Drinks to Find Calorie, Fat, Salt and Sugar Contents (% of respondents), December 2006; Belief That Food and Drink Labelling Should Be Clearer; Table 37: Belief That Food and Drink Labelling Should Be Clearer to Identify the Calorie, Fat, Salt and Sugar Contents (% of respondents), December 2006
LOW-CALORIE, LOW-CARBOHYDRATE AND LOW-GLYCAEMIC-INDEX FOODS AND DRINKS: Calorie Counting and Tendency to Have Low-Calorie Foods or Drinks; Table 38: Calorie Counting and Tendency to Have Low-Calorie Foods or Drinks (% of respondents), December 2006; Purchasing of Low-Carbohydrate Foods and Drinks; Table 39: Purchasing of Low-Carbohydrate Foods or Drinks, Such as Atkins or Carb Options (% of respondents), December 2006; Switching to Foods and Drinks with Low-Glycaemic-Index Ratings; Table 40: Switching From Sometimes Buying Low-Carbohydrate Foods or Drinks to Buying Those With Low-Glycaemic-Index Ratings (% of respondents), December 2006; Switching to a Balanced Diet of Healthy `Ordinary' Foods; Table 41: Switching From a Low-Calorie or Low-Carbohydrate Diet to Just Having a Balanced Diet of Healthy `Ordinary' Foods (% of respondents), December 2006; Confusion and Contradiction Regarding Diets and Dieting; Table 42: Finding Diets and Dieting Confusing or Contradictory (% of respondents), December 2006
MEMBERSHIP OF HEALTH AND SLIMMING CLUBS AND GYMNASIA, AND LEVELS OF EXERCISE: Membership of Health or Slimming Clubs; Table 43: Membership of a Health or Slimming Club (% of respondents), December 2006; Membership of Gymnasia; Table 44: Membership of a Gymnasium (% of respondents), December 2006; Previous Membership of Health or Slimming Clubs; Table 45: Previous Membership of a Health or Slimming Club (% of respondents), December 2006; Previous Membership of Gymnasia; Table 46: Previous Membership of a Gymnasium (% of respondents), December 2006; Levels of Exercise; Table 47: Taking More Exercise Now Than 12 Months Ago (% of respondents), December 2006
ATTITUDES REGARDING OVERWEIGHTNESS/OBESITY LEVELS AND FOOD MANUFACTURERS' RESPONSIBILITIES: Concern About the Rising Levels of Overweightness and Obesity in the Population; Table 48: Concern About the Rising Numbers of Overweight Persons, and Levels of Obesity, in the Population (% of respondents), December 2006; Belief That Manufacturers Should Cut Back on Advertising For `Unhealthy' Foods or Drinks; Table 49: Belief That Manufacturers Should Cut Back on Advertising Foods or Drinks With High Fat, Salt or Sugar Contents, and Promote Healthier Versions (% of respondents), December 2006
9. Company Profiles: ALPRO (UK) LTD; Profitability; Table 50: Financial Results for Alpro (UK) Ltd (£000 and %), Years Ending 31st December 2003-2005
ARLA FOODS LTD: Profitability; Table 51: Financial Results for Arla Foods Ltd (£000 and %), Years Ending 30th September 2003-2005
ASSOCIATED BRITISH FOODS PLC: Profitability; Table 52: Financial Results for Associated British Foods PLC (£000 and %), 53 Weeks Ending 18th September 2004, Year Ending 17th September 2005 and Year Ending 16th September 2006
ATKINS NUTRITIONALS: Profitability
BAXTERS FOOD GROUP LTD: Profitability; Table 53: Financial Results for Baxters Food Group Ltd (£000 and %), Years Ending 17th May 2003 and 15th May 2004 and 2005
CARBOLITE: Profitability; Table 54: Financial Results for Retail Brands Ltd (£000 and %), Years Ending 31st December 2003-2005
DAIRY CREST GROUP PLC: Profitability; Table 55: Financial Results for Dairy Crest Group PLC (£000 and %), Years Ending 31st March 2004-2006
HJ HEINZ COMPANY LTD: Profitability; Table 56: Financial Results for HJ Heinz Company Ltd (£000 and %), 53 Weeks Ending 30th April 2003 and Years Ending 30th April 2004 and 27th April 2005
KRAFT FOODS UK LTD: Profitability; Table 57: Financial Results for Kraft Foods UK Ltd (£000 and %), Years Ending 14th December 2003 and 2004, and 53 Weeks Ending 17th December 2005
MÜLLER DAIRY (UK) LTD: Profitability; Table 58: Financial Results for Müller Dairy (UK) Ltd (£000 and %), Years Ending 31st December 2003-2005
MULTIPLE FOODS LTD: Profitability
NESTLÉ UK LTD: Profitability; Table 59: Financial Results for Nestlé UK Ltd (£000 and %), Years Ending 31st December 2003-2005
PREMIER FOODS PLC: Profitability; Table 60: Financial Results for Premier Foods PLC (£000 and %), Years Ending 31st December 2003-2005
PREMIER GROCERY PRODUCTS LTD (FORMERLY CAMPBELL GROCERY PRODUCTS LTD): Profitability; Table 61: Financial Results for Premier Grocery Products Ltd (£000 and %), Years Ending 31st July 2003-2005
QUAKER OATS LTD: Profitability; Table 62: Financial Results for Quaker Oats Ltd (£000 and %), Years Ending 31st December 2002-2004
RICHMOND FOODS LTD: Profitability; Table 63: Financial Results for Richmond Foods Ltd (£000 and %), Years Ending 28th September 2003 and 26th September 2004, and 53 Weeks Ending 2nd October 2005
SO GOOD INTERNATIONAL LTD: Profitability; Table 64: Financial Results for So Good International Ltd (£000 and %), Years Ending 31st December 2003-2005
STREAMLINE FOODS LTD: Profitability; Table 65: Financial Results for Streamline Foods Ltd (£000 and %), Years Ending 31st December 2003-2005
UNILEVER PLC: Profitability; Table 66: Financial Results for Unilever PLC (i000 and %), Years Ending 31st December 2003-2005
UNITED BISCUITS: Profitability; Table 67: Financial Results for United Biscuits Finance Ltd (£000 and %), 53 Weeks Ending 3rd January 2004 and Years Ending 1st January 2005 and 31st December 2005
WALKERS SNACK FOODS LTD: Profitability; Table 68: Financial Results for Walkers Snack Foods Ltd (£000 and %), Years Ending 28th December 2002, 27th December 2003 and 25th December 2004
WEIGHT WATCHERS INTERNATIONAL: Profitability; Table 69: Financial Results for Weight Watchers (UK) Ltd (£000 and %), Years Ending 31st December 2003-2005
RETAILERs' OWN LABELS
10. The Future
FORECASTS 2007 TO 2011: Table 70: The Forecast Total Market for Diet Foods and Drinks by Sector by Value at Current Prices (£m at rsp), 2007-2011; Figure 3: The Forecast Low-Fat and Reduced-Sugar Foods and Drinks Sector by Value at Current Prices (£m at rsp), 2007-2011; Figure 4: The Forecast Low-Carbohydrate Foods and Drinks Sector by Value at Current Prices (£m at rsp), 2007-2011
11. Consumer Confidence
METHODOLOGY
KEY FINDINGS THIS QUARTER
THE WILLINGNESS TO BORROW: Confidence Slips Slightly; Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2005-2006; Significantly More Adults Are Willing to Borrow; Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), November 2005-2006
SPENDING FROM SAVINGS: Little Change in Spending from Savings; Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2005-2006; Saving Grows in Relative Importance; Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), November 2005-2006
12. Further Sources: Associations; Publications; General Sources; Government Sources; Other Sources; Bisnode Sources

Abstract

The diet foods market as covered in this Market Assessment report encompasses several distinct sectors. These have followed different growth paths. The old established low-calorie foods and drinks sector declined during the short-term rise in popularity of low-carbohydrate foods and drinks; however, both sectors have now been overshadowed by the growing interest in foods or drinks with low-Glycaemic-Index (GI) ratings, and by continued market growth in the wide variety of low-fat and reduced-sugar products on offer. The low-fat and reduced-sugar foods and drinks sector dominates the diet foods market as defined in this report.

Unilever's market-leading range of Slim.Fast low-calorie foods and drinks has been affected by the growth, and subsequent decline, of Atkins Nutritionals' and other suppliers' low-carbohydrate foods and drinks during 2004 and early 2005. Unilever is now continuing to support Slim.Fast, but — like Nestlé, Heinz, Atkins and others — is reducing its range of and support for low-carbohydrate products.

The very sizeable low-fat and reduced-sugar foods and drinks sector has become an area of major interest to manufacturers, and one of significant new product development (NPD). In part, this has been the result of government-led pressure for the UK population — particularly children — to consume less saturated fat, sugar and salt in their diets, in an attempt to halt the rapid increase in the numbers of overweight and obese persons.

Low-fat or reduced-sugar variants are now available within virtually all the sectors of the food and drink market, with total sales estimated to have grown by 3.8% in value in 2006 — the same annual growth rate as in 2005. However, the low-fat and reduced-sugar foods and drinks sector is forecast to increase at a slowing growth rate over the next 5 years (to 2011).

Sales of semi-skimmed and skimmed milks (excluding soya milk) account for half of the low-fat and reduced-sugar foods and drinks sector, in value terms. Other dairy products apart from milk represent nearly a quarter of the total value of the low-fat and reduced-sugar sector. This is principally attributable to low-fat yoghurts and chilled desserts, and to cheeses.

The bakery products segment holds a 10.6% value share of the total low-fat and reduced-sugar foods and drinks sector. This share is growing, and is principally accounted for by low-fat potato crisps and other bagged savoury snacks — a significant growth area within this being rice- and corn-based products. A 5.3% share of the total low-fat and reduced-sugar sector is held by low-fat ready meals, although this proportion is falling. A slowly rising share of around 4% is held by low-fat and low-calorie sauces and soups, mainly through salad accompaniments (i.e. salad creams, mayonnaise and dressings).

The balance of the low-fat and reduced-sugar foods and drinks sector is accounted for by a range of products including soya milk, canned beans and pasta, cereal bars, jams and marmalades, and chocolate or malted hot beverages. Retailers' own-label products have taken advantage of the trend towards `healthier' diets, with sub-brands such as Healthy Living (Tesco), Be Good to Yourself (Sainsbury's) and Count on Us (Marks & Spencer).

Low-fat and reduced-sugar foods and drinks are manufactured by all the major food producers, with particularly strong brands (and some own-label items) made by Arla, Associated British Foods (AB Foods), Dairy Crest, Heinz, Kraft, Müller, Nestlé, Premier Foods, Quaker, Streamline Foods, Unilever and United Biscuits.

Main media advertising expenditure on all products covered in this report rose by 39.9% in the 12 months to September 2005, but fell by 18.5% in the year to September 2006.

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Diet Foods Market Assessment 2007

Table of Contents

Abstract