Abstract
Overview
Introduction
Natural & Fresh Food & Drinks tracks the widespread take-up of the healthy eating trend, its active adoption by two-thirds of all consumers and how this has in turn created the large, fast-growing market for natural food and drinks products. As consumers' attitudes and beliefs evolve the report examines how the latest market developments will create winners and losers over the next five years.
Scope
- A unique survey of healthy eating beliefs and behaviors was conducted with 5,000 consumers across the US and Europe during June 2006
- An analysis of more than 36,000 natural, organic or fresh product launches between 2000 and September 2006 was conducted on our ProductScan database
- Countries covered: France, Germany, Italy, Netherlands, Spain, Sweden, UK, US, plus an analysis of relevant new product developments globally
- Product categories covered: bakery & cereals, dairy food, fruit & vegetables, meat & fish, ready meals, soft drinks plus natural, organic and fresh
Report Highlights
Consumer interest in health is up - around 80% of US and European consumers report that they are concerned about food and health issues and two-thirds have taken active steps to eat more healthily in the past year alone. Eating fresh food is the key - this is believed to be important by a staggering 90% of people.
Increasing consumer interest in fresh food is not matched by more new product launches - in fact whilst 7% of new products were marketed as fresh in 2000, this had fallen to just 4% in 2006. But since 'fresh' can cover a number of possible consumer benefits there are many ways of developing relevant products in the future.
From virtually nothing in 1980, organics accounted for 4% of new product launches in 1990 and 7% by the 2006. This remarkable growth in product availability is of course mirrored in the sales statistics: organics in the US and Europe grew from a US$18bn (€15bn) market in 2000 to US$32bn (€25bn) in 2005.
Reasons to Purchase
- Consumer data - See the scale of fresh and healthy eating
- NPD analysis - Spot the growth areas
- Actions - Prioritize product, price and promotional activities
Table of Contents
- CHAPTER 1 EXECUTIVE SUMMARY
- The hot topic
- The future decoded
- Action points
- CHAPTER 2 THE FUTURE DECODED
- Key findings
- TREND: Consumer interest in health is increasing
- TREND: Eating fresh food is consumers' most important route to healthy eating
- TREND: The market for natural food and drink has and will continue to grow strongly
- TREND: Consumers are acting increasingly ethically
- The proportion of consumers acting ethically is growing
- Consumers are increasingly likely to pay more for ethical goods
- TREND: Organics is showing particularly strong growth
- TREND: Users tend to move through a defined series of product categories
- TREND: Alternative distribution channels remain strong
- Case study: UK and US farmers' markets
- INSIGHT: Beliefs about the importance of organics vary by country
- INSIGHT: Buying organic is not typically an altruistic act
- INSIGHT: Consumer trust remains a vital issue
- INSIGHT: Future natural food growth will be highest amongst today's occasional users
- INSIGHT: Natural and fresh food flourishes in key consumer demographic groups
- INSIGHT: Increasing consumer interest in fresh food is not matched by more new product launches tagged as such
- INSIGHT: Fresh food and drink covers a number of possible consumer benefits
- CHAPTER 3 ACTION POINTS
- Key findings
- ACTION: Develop products that draw upon the key fresh concepts
- ACTION: Combine natural and fresh with other health-related benefits
- ACTION: Ensure that product claims are substantiated
- ACTION: Use packaging formats that enhance fresh-appeal
- ACTION: Reflect brand attributes in the packaging composition
- ACTION: Develop attractive price points for organics
- ACTION: Focus on selling the taste benefits of organics
- ACTION: Maintain the trustworthiness of organics
- ACTION: Don't forget the attractive niche that is ethically-minded
- ACTION: Use targeted media to develop segment-specific campaigns
- ACTION: Spread the positive beliefs about organics
- ACTION: Improve the provision of information to consumers
- ACTION: Promote the story of the product
- ACTION: Learn from the successes of the expanding niche channels
- ACTION: Ensure shelf stand-out as naturals go mainstream
- CHAPTER 4 APPENDIX
- Supplementary data
- Definitions
- Research methodology
- References
- How to contact experts in your industry
- List of Tables
- Table 1: Responses to the question "To what extent have you taken active steps to eat more healthily in the past year?", US & Europe, 2006
- Table 2: Responses to the question "How important is eating fresh food and drinks in maintaining a healthy diet?", US & Europe, 2006
- Table 3: Responses to the question "How important is reducing consumption of processed food and drink in maintaining a healthy diet?", US & Europe, 2006
- Table 4: Responses to the question "How has your interest in purchasing fresh, natural and organic food and drink changed in the previous 12 months?", US & Europe, 2006
- Table 5: Global natural and organic new product development, 1990-2006
- Table 6: Value of the US & European natural (including organic) food and drink market, 2000-2010
- Table 7: Value of the US & European organic food and drink market, by country, 2000-2010
- Table 8: Value of the US & European natural (including organic) food and drink market, by key product categories, 2000-2010
- Table 9: Value of US & European organic food and drink market, by key product categories, 2000-2010
- Table 10: Value of the US & European natural (excluding organic) food and drink market, by key product categories, 2000-2010
- Table 11: Structure of the European & US organic food retail market, 2002
- Table 12: Responses to the question "How important is eating organic food and drinks in maintaining a healthy diet?", US & Europe, 2006
- Table 13: Success of natural/organic food and drink at tapping into consumers eating more healthily, US & Europe, 2006
- Table 14: Ranking of the importance of the reasons for buying organic, US & Europe, 2006
- Table 15: Natural (excluding organic) food users as % of the total US and European population, 2000-2010
- Table 16: Organic food users as % of the total US and European population, 2000-2010
- Table 17: US and European organic food and drink users by frequency and scale of use, 2005
- Table 18: Potential winners and losers from the fresh trend
- Table 19: Global new product development incorporating key fresh concepts*, 2000-2006
- Table 20: Global new product development incorporating key fresh concepts, 2000-2006
- Table 21: Responses to the question "How important are the following in maintaining a healthy diet?", US & Europe, 2006
- Table 22: Natural, Organic and Fresh new products that have additional health benefits by type, 2000-06
- Table 23: Responses to the question "To what extent have you bought ethical or socially-responsible grocery items in the past year?", US & Europe, 2006
- Table 24: Ideas for possible targeted, segment-specific marketing campaigns
- Table 25: Value of the US & European organic bakery & cereals market, by country, 2000-2010
- Table 26: Value of the US & European organic dairy food market, by country, 2000-2010
- Table 27: Value of the US & European organic fruit & vegetable market, by country, 2000-2010
- Table 28: Value of the US & European organic juices market, by country, 2000-2010
- Table 29: Value of the US & European organic meat & fish market, by country, 2000-2010
- Table 30: Value of the US & European organic ready meals market, by country, 2000-2010
- List of Figures
- Figure 1: Ethical consumer behavior by country, 2000-2005
- Figure 2: Willingness to pay more for ethical products by country, 2000-2005
- Figure 3: Organics in Wal-Mart's new Plano, Texas test store
- Figure 4: Consumer trust in natural and organic products relative to conventional food and drink
- Figure 5: Age distribution of European natural and fresh food and drink consumers, 2005
- Figure 6: Age profile and purchase motivations for core, secondary and sporadic consumers of organic and natural food and drinks
- Figure 7: New products incorporating raw, local and reduced packaging, 2006
- Figure 8: Natural & fresh products with additional health benefits, 2006
- Figure 9: New products declaring their organic content, 2006
- Figure 10: Packaging formats that enhance a product's freshness
- Figure 11: Examples of environmentally-friendly packaging
- Figure 12: A value-priced Sunflower Market natural food store, US
- Figure 13: Contrasting formats for natural foods retailing, Europe
- Figure 14: Marketing that emphasizes the safety of organics
- Figure 15: Horizon Organic's "Seven Steps to an Organic Lifestyle", 2006
- Figure 16: Adapting farmers' market advantages for the mass market
- Figure 17: Products that suggest a personal nature
- Figure 18: Products attributes which suggest small-scale preparation
- Figure 19: Adapting fresh food supermarket advantages for the mass market
- Figure 20: Packaging design to ensure shelf stand-out, 2006
