The market for targeted health and wellness foods and beverages is a dynamic and promising one, driven largely by the growing recognition—among scientists, government, practitioners, and consumers alike—of the instrumental role diet plays in a wide range of health conditions. In fact, diseases that are linked to eating habits, including heart disease, high blood pressure, stroke, some types of cancer, and diabetes, are among the leading causes of death in the United States.
The risk of developing diet-related chronic diseases increases with age, so the graying of the population is a key factor in this market. Escalating healthcare costs that prompt consumers to seek alternative ways of managing their health also serve to draw attention to these products.
Packaged Facts defines targeted health and wellness (THW) products as retail packaged foods and beverages that are specially formulated and distinctively marketed as addressing a specific health concern or disease. This category is distinct from, but related to, a number of other product categories, including functional foods, nutraceuticals, and condition-specific nutritional supplements, as well as the FDA-defined categories of foods for special dietary use and medical foods.
The most compelling insights in Targeted Health and Wellness Foods and Beverages are derived from a series of proprietary Packaged Facts online consumer surveys. More than 40 tables, charts, and graphs illustrating the results of these surveys are featured in the report. Among the key findings:
- Nearly two-thirds of U.S. grocery shoppers have purchased a food or beverage in the past year for the purpose of addressing one or more of the 20-plus health and wellness concerns examined by Packaged Facts. Cholesterol management and digestive health of particular concern.
- In many categories, THW shoppers are exceptionally willing to pay more for “better-for-you” grocery products. They also express an above-average willingness to pay more for higher-quality grocery products.
- The health benefit reputation of a food, beverage, or ingredient is the most significant factor when shoppers are making a purchase decision based on a specific personal or household health concern. This underscores the importance of conveying health benefits credibly, clearly, consistently, and frequently.
- Nearly half of shoppers in Packaged Facts’ survey say doctors are one of their key sources of information about nutrients in food, and about one-quarter cite other medical professionals. Furthermore, one-quarter of shoppers say a recommendation by a health professional is an important factor when buying grocery products targeting a specific health concern. Therefore, marketing to healthcare practitioners can be a rewarding strategy, despite challenges.
- Shoppers are proactive about conducting research to educate themselves about diet, as just over half of Packaged Facts respondents consider health, nutrition, and wellness websites to be among the most valuable sources of information about nutrients in food.
- In general, shoppers who purchase THW products tend to visit a broader range of grocery outlets than does the population overall.
This report focuses on products sold in stores, rather than specialty distribution products or foodservice offerings. Because this study focuses on food and beverages products formulated and marketed to address a specific health concern, whole foods (including produce) fall outside the market scope. Dietary supplements, energy drinks, sports/fitness performance products, and weight loss/maintenance products are also excluded from Packaged Facts’ definition of targeted health and wellness (THW) foods and beverages.
Packaged Facts’ proprietary online surveys provide the basis for much of the analysis of the THW market. These surveys had a sample of 2,000 U.S. respondents age 18 or over who in aggregate are Census representative on the primary demographic measures of gender, age bracket, race/ethnicity, geographic region, household income bracket, and presence of children in the household. Respondents were asked about their consumption of foods and beverages for specific health concerns as well as a variety of “quality of life” purposes — boosting energy, for instance, or enhancing appearance. While these findings are discussed throughout this report, Packaged Facts’ analysis emphasizes the following specific health concerns:
- Blood Pressure
- Cancer
- Cholesterol
- Diabetes
- Digestive Health
- Eye/Vision Health
- Female Health
- Heart/Circulatory Health
- Joint/Bone Health
- Male Health
- Mental clarity/cognition/memory
- Prostate Health
- Urinary Tract Health
- Chapter 1: Executive Summary
- Definition, Scope, and Methodology
- Related Terms
- Functional Foods
- Nutraceuticals
- Foods for Special Dietary Use
- Condition-specific Nutritional Supplements
- Medical Foods
- Medical Nutrition Therapy
- Clinical Nutrition
- Personalized Nutrition
- Diet Is Implicated in Leading Causes of Death and Disability
- Table 1-1: 15 Leading Causes of Death in the U.S.
- The Regulatory Environment
- United States
- Canada
- Europe and UK
- Japan
- Australia/New Zealand
- People’s Republic of China
- Market Factors
- The Diet-Disease Link
- Diseases Linked to Diet Kill Three Out of Four Americans
- More Than 6 in 10 Shoppers Buy Targeted Health and Wellness Foods
- Table 1-2: Purchasing of Targeted Food and Beverage Products, by Specific Health or Wellness Concern, 2011 (percent of U.S. grocery shoppers)
- Cholesterol, Digestive Health of Particular Concern
- Figure 1-1: Purchasing of Targeted Food and Beverage Products, by Specific Health Concern, 2011 (percent of U.S. grocery shoppers)
- 4 in 10 Shoppers Frequently Purchase Targeted Foods and Beverages
- THW Shoppers Are Cutting Back on Grocery Spending …
- … But They Are Also More Willing to Pay More for Better-for-You Foods
- Market and Marketers
- Oatmeal, Yogurt Top Choices for THW Consumers
- Table 1-3: Purchasing of Selected Types of Grocery Products With Targeted Health/Wellness Positioning, 2011 (percent of U.S. grocery shoppers)
- Credibility the Most Influential Factor in THW Purchases
- Figure 1-2: Most Important Factors in Targeted Health/Wellness Food and Beverage Purchase Decisions, 2011 (percent of U.S. grocery shoppers)
- Companies Use Relationships With Medical Community to Promote Products
- Clinical Trials Generate Confidence Among Consumers, Practitioners
- Industry Structure
- Acquisitions, Partnerships Characterize the THW Industry
- The Retail Marketplace
- Price Promotions Prompt Purchases, Special Merchandising Not So Much
- Figure 1-3: Comparative Influence of Retailer Marketing on THW Purchases, 2011 (percent of U.S. grocery shoppers)
- In-Store Literature More Valuable for Information Than Employees
- Figure 1-4: Comparative Importance of Retailers as a Source of Information About Nutrients in Food, 2011 (percent of U.S. grocery shoppers)
- Is There a Dietitian in the House?
- Product Trends and Opportunities
- North America, Asia Top Regions for THW Introductions
- Women’s Health, Immunity the Leading Categories
- Figure 1-5: Global Targeted Health and Wellness Product Introductions, by Health Concern, 2006-2011 (share of reports)
- Beverages Are Marketers’ Vehicle of Choice for Health and Wellness Benefits
- United States Represents Nearly One-Third of Global THW Introductions
- THW Consumers Buy Oatmeal and Yogurt
- Figure 1-6: Purchasing of Selected Types of Grocery Products Due to Specific Health or Wellness Concern, 2011 (percent of U.S. grocery shoppers)
- Products’ Benefits Are Increasingly Supported by Scientific Evidence
- Consumer Trends
- Three in Four Shoppers at Least Occasionally Buy Targeted Health and Wellness Foods
- Figure 1-7: Frequency of Purchasing Grocery Products Because of Nutritional Advantages Addressing Specific Health Concerns, 2011 (percent of U.S. grocery shoppers)
- Two-Thirds Buy Groceries Explicitly Marketed as THW Products
- Figure 1-8: Frequency of Purchasing Grocery Products Marketed or Labeled as Targeting Specific Health Concerns, 2011 (percent of U.S. grocery shoppers)
- Condition-Specific Grocery Shoppers Pursue Broader Wellness Goals
- Chapter 2: The Products
- Key Points
- Definition and Scope
- Related Terms
- Functional Foods
- Figure 2-1: Minute Maid “Enhanced” Juices
- Nutraceuticals
- Foods for Special Dietary Use
- Condition-specific Nutritional Supplements
- Table 2-1: Selected Condition-Specific Nutritional Supplements Tracked by SymphonyIRI
- Medical Foods
- Medical Nutrition Therapy
- Clinical Nutrition
- Personalized Nutrition
- You Are What You Eat, After All
- Diet Implicated in Leading Causes of Death and Disability
- Table 2-2: 15 Leading Causes of Death in the U.S.
- The Regulatory Environment
- Permissible Label Statements Range From Informative to “Why Bother?”
- Health Claims
- Table 2-3: Requirements for Use of Fiber/Heart Disease Health Claim
- in Food Labeling
- Qualified Health Claims (QHCs)
- Table 2-4: Standardized Qualifying Language for Qualified Health Claims
- Table 2-5: Qualified Health Claims
- Structure/Function (S/F) Claims
- Dietary Guidance
- Nutrient Content Claims (NCCs)
- Table 2-6: Comparison of Health Claims, Qualified Health Claims, Structure/Function Claims, and Dietary Guidance Statements
- Chapter 3: Market Factors/Macro-Trends
- Key Points
- The Diet-Disease Link
- Diseases Linked to Diet Kill Three Out of Four Americans
- Table 3-1: Projected U.S. Population by Age Bracket, 2010-2020 (in thousands)
- Purchasing Patterns
- More Than 6 in 10 Shoppers Buy Targeted Health and Wellness Foods
- Table 3-2: Purchasing of Targeted Food and Beverage Products, by Specific Health or Wellness Concern, 2011 (percent of U.S. grocery shoppers)
- Cholesterol, Digestive Health of Particular Concern
- Figure 3-1: Purchasing of Targeted Food and Beverage Products, by Specific Health Concern, 2011 (percent of U.S. grocery shoppers)
- Seventy Percent of Shoppers Purchase Food/Beverage Products Specifically for Nutritional Content
- Figure 3-2: Purchasing of Food and Beverage Products for Specific Nutritional Benefits, 2011 (percent of U.S. grocery shoppers)
- Just Under 70% of Shoppers Buy Beverages for Special Nutritional Benefits
- Figure 3-2: Purchasing of Specific Beverage Products for Special Nutritional Benefits, 2011 (percent of U.S. grocery shoppers)
- 4 in 10 Shoppers Frequently Purchase Targeted Foods and Beverages
- Half of All Shoppers Are Driven by Wellness Goals and Concerns
- Table 3-3: Agreement with the Statement “The groceries I buy are determined in part by specific wellness goals and concerns,” by Health Concern, 2011 (percent of U.S. shoppers)
- THW Shoppers Are Cutting Back on Grocery Spending…
- Table 3-4: Agreement with the Statement “I am cutting back on grocery spending these days,” by Health Concern, 2011 (percent of U.S. shoppers)
- …But They Are Also More Willing to Pay More for Better-for-You Foods
- Table 3-5: Agreement with the Statement “I am willing to pay more for better-for-you grocery products,” by Health Concern, 2011 (percent of U.S. shoppers)
- THW Shoppers Will Pay More for Quality Groceries
- Table 3-6 Agreement with the Statement “I am willing to pay more for higher-quality groceries,” by Health Concern, 2011 (percent of U.S. shoppers)
- The Regulatory Landscape
- U.S. Food and Drug Administration
- Health Canada
- European Food Safety Authority
- UK Food Standards Agency/Department of Health
- Japanese Ministry of Health, Labor, and Welfare
- Food Standards Australia New Zealand
- State Food and Drug Administration, People’s Republic of China
- Chapter 4: Marketing Strategies and Trends
- Key Points
- Communicating Benefits
- Oatmeal, Yogurt Top Choices for THW Consumers
- Table 4-1: Purchasing of Selected Types of Grocery Products With Targeted Health/Wellness Positioning, 2011 (percent of U.S. grocery shoppers)
- Figure 4-1: Purchasing of Selected Types of Grocery Products With Targeted Health/Wellness Positioning, 2011 (percent of U.S. grocery shoppers)
- Credibility the Most Influential Factor in THW Purchases
- Figure 4-2: Most Important Factors in Targeted Health/Wellness Food and Beverage Purchase Decisions, 2011 (percent of U.S. grocery shoppers)
- Frequent THW Shoppers Are Exceptionally Influenced By Health Benefit Reputation
- Table 4-2: Most Important Factors in Targeted Health/Wellness Food and Beverage Purchase Decisions, by Frequency of Purchase, 2011 (percent of U.S. grocery shoppers)
- Health Benefit Reputation Also Influences Decision to Purchase High-Antioxidant or High-Omega Foods
- Figure 4-3: Most Important Factors in High-Antioxidant Food and Beverage Purchase Decisions, 2011 (percent of U.S. grocery shoppers)
- Figure 4-4: Most Important Factors in High-Omega Food and Beverage Purchase Decisions, 2011 (percent of U.S. grocery shoppers)
- Internet the Most Valuable Source of Information About Nutrients
- Table 4-3: Most Important Sources of Information About Nutrients in Food, 2011 (percent of U.S. grocery shoppers)
- Positive Food Messages, Third-Party Certification Increasingly Effective
- Figure 4-5: Consumer Preferences Regarding Food Messaging (percent of U.S. adults)
- Marketing Strategies
- Companies Use Relationships With Medical Community to Promote Products
- Marketing to Practitioners Can Be Rewarding, But Challenges Remain
- Nutrition Education in Medical Schools Is Inadequate
- Nutrition Professionals Represent a Prime Target
- Clinical Trials Generate Confidence Among Consumers, Practitioners
- Industry Structure
- Acquisitions, Partnerships Characterize the THW Industry
- Innovator Profile: Abbott Nutrition Advances Science-Based Nutrition
- Innovator Profile: Raisio Group a Pioneer in Both Clinical Trials and Medical Marketing
- Innovator Profile: Nestlé Health Science’s Vision Is To Create a New
- Food/Pharma Paradigm
- Chapter 5: The Retail Marketplace
- Key Points
- A Note on Consumer Data
- More Than 6 in 10 Shoppers Buy Targeted Foods and Beverages
- Table 5-1: Purchasing of Targeted Food and Beverage Products, by Specific Health or Wellness Concern, 2011 (percent of U.S. grocery shoppers)
- Where THW Shoppers Buy Groceries
- Alternative Channels Are Exceedingly Popular
- Table 5-2: Leading Retail Channels for THW Consumers, by Health or Wellness Concern, 2011 (percent of U.S. grocery shoppers; indices of 150+)
- THW Shoppers Buy Groceries Through a Wider Variety of Channels
- Table 5-3a Purchasing Patterns of THW Consumers, by Health Concern and Retail Channel/Chain, 2011 (percent and index)
- Table 5-3b: Purchasing Patterns of THW Consumers, by Health Concern and Retail Channel/Chain, 2011 (percent and index)
- Table 5-3c: Purchasing Patterns of THW Consumers, by Health Concern and Retail Channel/Chain, 2011 (percent and index)
- Table 5-3d: Purchasing Patterns of THW Consumers, by Health Concern and Retail Channel/Chain, 2011 (percent and index)
- Table 5-3e: Purchasing Patterns of THW Consumers, by Health Concern and Retail Channel/Chain, 2011 (percent and index)
- Table 5-4: Retail Channel Preferences, by Health Concern, 2011 (index)
- Diet-Conscious and Health-Proactive Consumers Favor Supertarget, Natural Food Chains
- Table 5-5: Grocery Channel Preferences of Consumers Watching Their Diet, by Health Concern, 2011 (percent and index of U.S. adults)
- Table 5-6: Attitudes Toward Health, Medicine, and Diet: Psychographic Indicators for Grocery Channel Preferences, 2011 (percent and index of U.S. adults)
- Retailers’ Role in THW Buying Decisions
- Price Promotions Prompt Purchases, Special Merchandising Not So Much
- Figure 5-1: Comparative Influence of Retailer Marketing on THW Purchases, 2011 (percent of U.S. grocery shoppers)
- In-Store Literature More Valuable for Information Than Employees
- Figure 5-2: Comparative Importance of Retailers as a Source of Information About Nutrients in Food, 2011 (percent of U.S. grocery shoppers)
- Scoring Systems Help Shoppers Choose Better-For-You Foods
- Is There a Dietitian in the House?
- Chapter 6: Product Trends and Opportunities
- Key Points
- A Note on Methodology
- Global Overview
- North America, Asia Top Regions for THW Introductions
- Women’s Health, Immunity the Leading Categories
- Figure 6-1: Global Targeted Health and Wellness Product Introductions,
- by Health Concern, 2006-2011 (number of reports)
- Figure 6-2: Global Targeted Health and Wellness Product Introductions,
- by Health Concern, 2006-2011 (share of reports)
- Figure 6-3: Global Targeted Health and Wellness Product Introductions,
- by Health Concern, 2006-2011 (number of SKUs)
- Figure 6-4: Global Targeted Health and Wellness Product Introductions, by Health Concern, 2006-2011 (share of SKUs)
- Beverages Are Marketers’ Vehicle of Choice for Health and Wellness Benefits
- U.S. Overview
- United States Represents Nearly One-Third of Global THW Introductions
- Immunity Accounts for One in Five New Products in U.S.
- Figure 6-5: U.S. Targeted Health and Wellness Product Introductions, by Health Concern, 2006-2011 (number of reports)
- Figure 6-6: U.S. Targeted Health and Wellness Product Introductions, by Health Concern, 2006-2011 (share of reports)
- Figure 6-7: U.S. Targeted Health and Wellness Product Introductions, by Health Concern, 2006-2011 (number of SKUs)
- Figure 6-8: U.S. Targeted Health and Wellness Product Introductions, by Health Concern, 2006-2011 (share of SKUs)
- Figure 6-9: U.S. Targeted Health and Wellness Product Introductions, by Health Concern, 2011 (share of SKUs)
- Table 6-1: U.S. Targeted Health and Wellness Product Introductions, by Health Concern, 2007 vs. 2011 (share of SKUs)
- Half of Hot Cereal, Yogurt, Fresh Produce Purchasers Are THW Consumers
- Table 6-2: Purchasing of Selected Types of Grocery Products Due to Specific Health or Wellness Concern, 2011 (percent of U.S. grocery shoppers)
- Figure 6-10: Purchasing of Selected Types of Grocery Products Due to Specific Health or Wellness Concern, 2011 (percent of U.S. grocery shoppers)
- Orange Juice Is the Beverage Most Often Purchased for Nutritional Benefits
- Figure 6-11: Purchasing of Specific Beverage Products for Special Nutritional Benefits, 2011 (percent of U.S. grocery shoppers)
- Fiber, Vitamins, Minerals the Most Desirable Nutritional Content
- Figure 6-12: Purchasing of Food and Beverage Products for Specific Nutritional Content, 2011 (percent of U.S. grocery shoppers)
- Fruit Juice Is Selected for Antioxidant Content, Fish for Omega Fats
- Superfruits Figure Prominently in New Products
- Table 6-3: Key Ingredients in New Targeted Health and Wellness Food and Beverage Products (by ingredient and specific health concerns addressed)
- Products’ Benefits Are Increasingly Supported by Scientific Evidence
- Next-Generation Technological Innovations Deliver
- Table 6-4: Selected New Targeted Health and Wellness Food and Beverage Products
- Global Overview
- Chapter 7: Consumer Trends
- Key Points
- Findings Are Based Primarily on Packaged Facts’ Proprietary Surveys
- 80% of Shoppers Buy Groceries Because of Special Nutritional Characteristics at Least Some of the Time
- Figure 7-1: Frequency of Purchasing Grocery Products Because of Special Nutritional Characteristics, 2011 (percent of U.S. grocery shoppers)
- Three in Four Shoppers at Least Occasionally Buy Targeted Health and Wellness Foods
- Figure 7-2: Frequency of Purchasing Grocery Products Because of Nutritional Advantages Addressing Specific Health Concerns, 2011 (percent of U.S. grocery shoppers)
- Two-Thirds Buy Groceries Explicitly Marketed as THW Products
- Figure 7-3: Frequency of Purchasing Grocery Products Marketed or Labeled as Targeting Specific Health Concerns, 2011 (percent of U.S. grocery shoppers)
- Nonwhite Shoppers Are Heavier Consumers of Groceries Explicitly Marketed as THW Foods and Beverages
- Table 7-1: Demographic Indicators Favoring Frequent Purchase of Groceries Explicitly Marketed as THW Products, 2011 (percent of U.S. grocery shoppers)
- Table 7-2: Demographic Indicators Favoring Occasional or More Frequent Purchase of Groceries Explicitly Marketed as THW Products, 2011 (percent of U.S. grocery shoppers)
- Age Is the Leading Demographic Indicator for Purchase of THW Groceries for Most Health Concerns
- Table 7-3: Selected Demographic Indicators for Purchase of Targeted Health/Wellness Foods, by Health Concern, 2011 (percent of users and index of U.S. grocery shoppers)
- Distinct Gender Differences Exist for Different Health Concerns
- Table 7-4: Purchasing of Targeted Health/Wellness Foods, by Health Concern and Gender, 2011 (percent of users and index of U.S. grocery shoppers)
- THW Grocery Shopper Profile Skews Upscale
- Table 7-5: Selected Demographic Indicators for Purchase of Targeted Health/Wellness Foods, by Health Concern, 2011 (percent of U.S. grocery shoppers)
- Seniors Exceed All Other Demographics in Rate of Purchase of THW Grocery Products of All Types …
- Table 7-6: Selected Demographic Indicators for Use of Targeted Health and Wellness Foods, by Type of Grocery Product, 2011 (percent and index of U.S. grocery shoppers)
- … But Boomers Comprise a Larger Customer Base
- Table 7-7: Selected Demographic Indicators for Use of Targeted Health and Wellness Foods, by Type of Grocery Product, 2011 (percent of U.S. grocery shoppers)
- Demographics for Use of Certain THW Brands Skew Upscale
- Table 7-8: Demographic Indicators for Use of Targeted Health and Wellness Foods, by Brand or Brand Line, 2011 (percent and index of U.S. adults)
- THW Shoppers Say They Are in Good Physical Health
- Table 7-9: Agreement With the Statement “I Am in Good Physical Health,” by Health Concern, 2011 (percent of U.S. grocery shoppers)
- Table 7-10: Agreement With the Statement “I Have a Serious Medical Condition/Disease,” by Health Concern, 2011 (percent and index of U.S. grocery shoppers)
- Condition-Specific Grocery Shoppers Pursue Broader Wellness Goals
- Table 7-11: Psychographics Regarding Health and Wellness Goals, by Health Concern, 2011 (percent and index of U.S. grocery shoppers)
- Table 7-12: Use of Nutritional Supplements, by Health Concern,2011 (percent and index of U.S. grocery shoppers)
- Table 7-13: Importance of Nutritional Supplements, by HealthConcern,2011 (percent and index of U.S. grocery shoppers)
- Table 7-14: Use of Prescription Medication, by Health Concern, 2011(percent and index of U.S. grocery shoppers)
- Appendix I
- Selected Dietary Components With Potential to Address Key Health Concerns
- Appendix II
- Selected Branded Foods/Ingredients Tested in Human Clinical Trials
- Appendix III
- Addresses of Selected Marketers
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