Healthy Eating

Published by: Key Note Publications Ltd

Published: Jul. 1, 2008 - 119 Pages

Table of Contents

Executive Summary

1. Introduction

REPORT FOCUS

DEFINITIONS

Organic Foods

Functional Foods

Vegetarian Foods

2. Strategic Overview

RECENT INITIATIVES

Healthy Weight, Healthy Lives

1. The Healthy Growth and Development of Children

2. Promoting Healthier Food Choices

3. Building Physical Activity Into Our Lives

4. Creating Incentives For Better Health

5. Personalised Advice and Support

Saturated Fat

Salt

Food Labelling

ADVERTISING AND MARKETING

Main Media Advertising Expenditure

Table 1: Main Media Advertising Expenditure on Selected Organic Products and `Healthy-Eating' Ranges by Major Grocery Chains (£000), Years Ending December 2006 and 2007

Recent Supermarket Campaigns

Recent Food Standards Agency Campaigns

Marketing Food and Drink to Children

THE CONSUMER

ORGANISATIONS AND PRESSURE GROUPS

The Food and Drink Federation

The Food Standards Agency

The Soil Association

Sustain

The Vegetarian Society

3. Organic Foods

BACKGROUND

MARKET SIZE

Table 2: The Estimated Total UK Market for Organic Foods and Drinks by Retail Value at Current Prices (£m at rsp), Years Ending December 2004-2007

Market Segmentation

Table 3: The Estimated UK Market for Organic Foods and Drinks by Sector by Retail Value at Current Prices (£m at rsp and %), Years Ending December 2004-2007

Figure 1: The Estimated UK Market for Organic Foods and Drinks by Sector by Retail Value (%), Year Ending December 2007

DISTRIBUTION

Table 4: Retail Sales of Organic Foods and Drinks in the UK by Distribution Channel by Value at Current Prices (£m at rsp and %), Years Ending December 2004-2007

ORGANIC SOURCING

Table 5: Organic Products Sourced in the UK and Sold Through Multiple Retailers (% of value), 2004-2006

Table 6: Source of Organic Products Sold in Box Schemes/ Mail Order (% value), 2006

ORGANIC FARMING

Table 7: Organically Managed Land in the UK (hectares), 2000-2007

Table 8: Number of Registered Organic and In-Conversion Producers and Growers in the UK by County and by Region, January 2006 and 2007

CONSUMER TRENDS

Table 9: Purchasing of Organic Food (% of adults), 2007

MARKETING AND ADVERTISING

Table 10: Main Media Advertising Expenditure on Selected Organic Products (£000), Years Ending December 2006 and 2007

4. Functional Foods

BACKGROUND

MARKET SIZE

Table 11: The Functional Foods Market in Great Britain by Value at Current Prices (£m at rsp and %), 2004/2005, 2005/2006 and 2006/2007

Market Segmentation

Table 12: The Functional Foods Market in Great Britain by Product Sector by Value at Current Prices (£m at rsp and %), 2004/2005, 2005/2006 and 2006/2007

CONSUMER TRENDS

Table 13: Summary of Research Findings Regarding Consumers' Habits and Attitudes Concerning Functional Foods and Related Health Issues (% of respondents), August 2007

MARKETING AND ADVERTISING

Table 14: Main Media Advertising Expenditure on Selected Functional Food Brands (£000), Years Ending December 2006 and 2007

5. Vegetarian Foods

BACKGROUND

MARKET SIZE

Table 15: The Total UK Vegetarian Foods Market by Sector by Value (£m), Years Ending February 1999-2004

Table 16: The Total UK Vegetarian Foods Market by Sector by Value (£m), Years Ending March 2005-2007

Figure 2: The Total UK Vegetarian Foods Market by Sector by Value (£m), 1998/1999-2006/2007

Market Segmentation

Chilled Vegetarian Foods

Table 17: The UK Chilled Vegetarian Foods Sector by Subsector by Value (£m), Years Ending March 2005-2007

Frozen Vegetarian Foods

Table 18: The UK Frozen Vegetarian Foods Sector by Subsector by Value (£m), Years Ending March 2005-2007

CONSUMER TRENDS

Table 19: Frequency of Purchasing Vegetarian or `Suitable for Vegetarian' Foods (% of respondents), April 2007

Table 20: Summary of Research Findings Regarding Consumers' Habits and Attitudes Towards Vegetarianism (% of respondents), April 2007

ADVERTISING AND MARKETING ACTIVITY

Table 21: Main Media Advertising Expenditure on Selected Vegetarian Foods (£000), Years Ending December 2006 and 2007

6. An International Perspective

FOOD LABELLING

ORGANIC FARMING

EU Organic Standards

FUNCTIONAL FOODS

The Global Market

Western Europe

The US

Japan

7. PEST Analysis

POLITICAL FACTORS

ECONOMIC FACTORS

SOCIAL AND DEMOGRAPHIC FACTORS

Table 22: Trends in Body Mass Index by Sex (% of adults), 1996, 2001 and 2006

TECHNOLOGICAL FACTORS

8. Consumer Dynamics

OVERVIEW

Table 23: Summary of Research Findings Regarding Consumers' Habits and Attitudes Towards Healthy Eating (% of respondents), May 2006 and February 2008

COMPARISON WITH 2006

Attitudes Towards HEALTH CLAIMS

I Do Not Always Believe What Food Manufacturers and Supermarkets Say About How Healthy Different Foods Are (S1)

High-Street Supermarkets With a `Healthy' Own-Label Range of Foods Mean It Is Easy to Be Sure the Food You Are Buying Is Good For You (S2)

Table 24: Attitudes Towards Manufacturers'/Retailers' Claims, and Supermarket `Healthy' Own-Label Ranges (% of respondents), February 2008

There Is So Much Conflicting Advice About Which Types of Food and Drink Are Healthy and Unhealthy For You That You May As Well Just Eat What You Like (S3)

I Think Nowadays People Make Too Much Fuss About Whether Food and Drink Is Healthy or Not (S4)

Table 25: Confusion and Scepticism About Healthy Eating (% of respondents), February 2008

ATTITUDES TOWARDS FOOD LABELS

When I Buy Food and Drink I Usually Check the Labels To Find Out the Fat Content (S5)/When I Buy Food and Drink I Usually Check the Labels in Case There Are Any Ingredients I Wish To Avoid, e.g. Additives, Colourings, etc. (S6)

Table 26: Checking Labels (% of respondents), February 2008

When I Buy Food and Drink I Never Check the Ingredients On the Label (S7)

Table 27: Not Checking Labels (% of respondents), February 2008

ATTITUDES TOWARDS COST AND TASTE

I Think It Is Worth Purchasing Food and Drink Which Is Healthy Even Though It May Cost a Bit More (S8)

I Think It Is Worth Purchasing Food and Drink Which Is Healthy Even If It Does Not Taste as Good (S9)

Table 28: Attitudes Towards Cost and Taste (% of respondents), February 2008

ATTITUDES TOWARDS ORGANIC FOOD

I Think Organic Food Is Better For You Than Non-Organic Food (S10)/I Think Organic Food Tastes Better Than Non-Organic Food (S11)

Table 29: Attitudes Towards Organic Food (% of respondents), February 2008

ATTITUDES TOWARDS ASPECTS OF FARMING AND GROWING

I Am Concerned About the Use Of Pesticides and Other Chemicals in Farming and Growing (S12)/I Am Concerned About the Treatment of Animals in Farming and Growing (S13)

Table 30: Attitudes Towards Aspects of Farming and Growing (% of respondents), February 2008

AVOIDANCE of certain types of foods

I Try Not to Eat Too Many Carbohydrates (e.g. Bread, Potatoes, Cereals)(S14)/I Try Not to Each Too Much Fat (e.g. Butter, Cheese) (S15)

Table 31: Avoidance of Certain Types of Foods (% of respondents), February 2008

9. Supplier Profiles

INTRODUCTION

ASDA GROUP LTD

Corporate Strategy

Advertising

Profitability

Table 32: Financial Results for ASDA Group Ltd (£000), Years Ending 31st December 2004-2006

Recent and Future Developments

MARKS AND SPENCER PLC

Corporate Strategy

Advertising

Profitability

Table 33: Financial Results for Marks and Spencer PLC (£000), Years Ending 2nd April 2005, 1st April 2006 and 31st March 2007

Recent and Future Developments

WM MORRISON SUPERMARKETS PLC

Corporate Strategy

Advertising

Profitability

Table 34: Financial Results for Wm Morrison Supermarkets PLC (£000), Years Ending 29th January 2006, 4th February 2007 and 3rd February 2008

Recent and Future Developments

J SAINSBURY PLC

Corporate Strategy

Advertising

Profitability

Table 35: Financial Results for J Sainsbury PLC (£000), Years Ending 26th March 2005, 25th March 2006 and 24th March 2007

Recent and Future Developments

SOMERFIELD LTD

Corporate Strategy

Advertising

Profitability

Table 36: Financial Results for Somerfield Ltd (£000), Years Ending 30th April 2005, 29th April 2006 and 28th April 2007

Recent and Future Developments

TESCO PLC

Corporate Strategy

Advertising

Profitability

Table 37: Financial Results for Tesco Stores PLC (£000), Years Ending 25th February 2006, 24th February 2007 and 23rd February 2008

Recent and Future Developments

WAITROSE LTD

Corporate Strategy

Advertising

Profitability

Table 38: Financial Results for Waitrose Ltd (£000), Years Ending 29th January 2005, 28th January 2006 and 27th January 2007

Recent and Future Developments

10. The Future

CONSUMERS AND HEALTHY EATING

Consumers From Households That Include Children

Respondents Living in Households That Included Children Aged Under-5

Respondents Living in Households That Included Children Aged 5 to 9

Respondents Living in Households That Included Children Aged 10 to 15

MARKET FORECASTS 2008 TO 2012

Organic Foods

Table 39: The Forecast UK Market for Organic Foods and Drinks by Sector by Retail Value at Current Prices (£m at rsp and %), Years Ending December 2008-2012

Figure 3: The Forecast UK Market for Organic Foods and Drinks by Sector by Retail Value at Current Prices (£m at rsp), Years Ending December 2008-2012

Functional Foods

Table 40: The Forecast Functional Foods Market in Great Britain by Product Sector by Value at Current Prices (£m at rsp and %), 2007/2008-2011/2012†

Vegetarian Foods

Table 41: The Forecast Total UK Vegetarian Foods Market by Sector by Value (£m), Years Ending December 2007-2011

Figure 4: The Forecast Total UK Vegetarian Foods Market by Sector by Value (£m), Years Ending December 2007-2011

11. Further Sources

Associations

Publications

General Sources

Government Sources

Other Sources

Bisnode Sources

Abstract

Healthy eating continues to be high on the agendas of the Government, the media, consumers and the food industry, with many new developments and initiatives since 2006, when Key Note's previous edition of this report was published. Obesity — attributed partly to more sedentary lifestyles and partly to types of food that people eat — continues to be a problem and has attracted a considerable amount of attention nationally. January 2008 saw the publication of a cross-Government strategy entitled Healthy Weight, Healthy Lives.

The market for organic food has made the transition from a niche sector to the mainstream. This change was initiated by growing consumer concern about the effects of modern methods of food production on both health and the environment, but it was the entry into the market of the major retailers that led to the rapid rise of organic sales. A period of strong growth during 2005 and 2006 was followed by something of a slowdown during 2007, mainly due to shortages of supply of UK-produced organic goods. Despite this, the market grew by 45.4% between 2004 and 2007.

Growth within the market for functional foods slowed considerably during the year ending 8th September 2007, with retail sales achieving less than half the rate of growth shown during the previous year. Breakfast cereals, yoghurts and yoghurt drinks form the biggest sectors of the market, together accounting for more than three-quarters of sales.

The vegetarian foods market showed signs of picking up during the year ending March 2007, with the chilled sector showing increased growth, and the frozen sector regaining a degree of momentum after sales slipped during the year ending March 2006.

Key Note's original research, commissioned for this report, showed that more than three-quarters of consumers did not always believe the claims of supermarkets and food manufacturers about the healthiness of different types of food. However, more than four in ten agreed that the `healthy' own-label food ranges produced by high-street supermarkets made it easy to be sure that one was buying healthy food.

Despite the scepticism and confusion that undoubtedly exist among consumers, almost eight in ten were prepared to pay a bit more for healthy food and drink. However, far fewer were prepared to sacrifice the taste of their food for the sake of their health: fewer than one in four said that it was worth purchasing healthy food and drink even if it did not taste as good.

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