Contents:

New Profit Opportunities in Health and Nutrition to 2009 Changing consumer concerns and market influencers in food and drinks Executive Summary 10 Identifying consumers' health concerns 10 Profitability hotspots and innovation opportunities 11 New product development 12 Conclusions and profit opportunities by market category 13 Chapter 1 Introduction to the Report 16 Aim of the report 16 Identifying the main health-related issues influencing the food and drinks industry at present 18 Chapter 2 Identifying Consumers' Health Concerns 22 Summary 22 Introduction 23 Obesity 23 A definition 23 The unhealthy facts 24 Nutritional influence 25 Who/what is accountable for the rising levels of obesity? 26 Adults versus children 27 What factors are causing obesity in children? 27 What factors are causing obesity in adults? 28 Obesity case study: Weight Watchers’ reinvention 28 Diabetes 30 A definition 30 The unhealthy facts 31 Diabetic food and drinks 32 Healthy meal recommendations 32 Breakfast 32 Lunch and dinner 32 Diabetic-friendly products 33 Product opportunities 34 Ingredients 35 Tagatose 35 Chromium 36 Dieting choices – far too many to choose from? 37 The typical length of a diet 38 Low fat/low calorie diets remain the most popular for consumers 39 Promoting a long-standing breakfast product as a diet food 40 Glycaemic Index: the next big thing? 42 What is the GI diet? 43 GI diets and diabetes 45 New Zealand strongly in favour of GI 45 Nutritionists' expert opinions on the GI diet 47 The small issue of exercise… 48 Over the last six months, how often have you exercised, on average, per week? 49 The impact of food scares on consumers’ perceptions of the food and drinks industry 50 GM foods 51 Global snapshot of the GM food market 53 The United Kingdom 54 Asia 54 Russia 55 Africa 56 Australia 56 The United States 57 Are consumers likely to accept GM foods into their daily diet over the next five years? 57 Chapter 3 Profitability Hotspots and Innovation Opportunities 60 Summary 60 Introduction 61 Steady market growth expected for the healthy food and drinks market 61 How successful in terms of sales do you believe the next five years will be globally for the health food and drinks market? 61 Most profitable target audiences for health food and drinks 62 The most successful healthy food and drinks sectors to 2009 65 Functional food and drinks 67 Future success potential of functional food and drink products 67 With all this activity, are consumers prepared to pay a premium price for functional products? 68 Functional versus organic 68 Senior consumers are ready and waiting for functional and healthy products to promote longevity 69 Which organic products do older consumers typically purchase? 71 Glico functional food and drinks – best practice company from a best practice country 71 Profitability hotspots 73 Profitability hotspots in the healthy food and drinks arena at present 73 Profitability hotspots in 2009 74 Low carb versus low calorie competition assessment 76 Chapter 4 New Product Development 80 Summary 80 Introduction 81 Launching a successful new product is difficult enough, let alone launching a healthy new product… 81 Which healthy brands/private labels are consumers most interested in? 81 Cadbury's easily beats the diet products in terms of consumption 82 Retailer private label 83 Foodservice 84 Low carb 85 Industry insight into the next big thing in healthy NPD 86 Drinks 86 Perceptions of healthy drink products to 2009 86 Foods 87 Perceptions of healthy food products to 2009 87 Future forecast: top 10 successful healthy food products to 2009 88 Innovative functional and low calorie product launches 89 Australia: fortified water 89 Australia: nutritional food range 89 Germany: vitamin-enhanced spreads 90 South Africa: the first prebiotic brand in the UK 90 United States: low calorie ready meals 91 United States: fortified berries 91 United States: soy burger to replace veggie burger 91 Anti-ageing products 91 Lessons to be learned by the food and drinks industry from the growing skincare market targeting consumers' age concerns 92 Antioxidants for anti-ageing 93 Omega-3 94 The research 94 The health benefits of omega-3 95 Sources of omega-3 96 Products sold on their omega content 96 Focus on salt reduction 97 Arguments for salt 97 Arguments against salt 98 The food and drink industry's reaction and future action 99 Sodium reductions already made in some processed food sectors 100 Sid the slug campaign 101 Retailers' reactions: The Co-op 102 Manufacturer's reactions 102 Next on the agenda – sugar 103 Vegetarian and meat-free products 104 The future potential for vegetarian/meat-free products in the next five years 104 Branded, high quality, healthy vegetarian products are the way forward 106 Innovative vegetarian/healthy product launches 106 Health is wealth 107 Chapter 5 Conclusions and Profit Opportunities By Market Category 110 Summary 110 Introduction 111 Dairy 111 Promoting the probiotics content of dairy products 111 Promoting the benefits of dairy for pregnancy 112 Confectionery 113 Soft drinks 113 Fruit juices related to particular body parts/ailments 114 Vegetable juices related to particular body parts/ailments 115 Alcoholic drinks 115 Bakery 118 Snacks 119 The gluten-free diet 120 What is coeliac disease? 120 Sources of gluten that have to be avoided on a gluten-free diet 121 Manufacturers of gluten-free products 122 Glutano – manufacturing gluten-free products 122 Meal solutions 124 Opportunities for healthy canned meals range with added vitamins and minerals 124 Canned meat 125 Canned pasta 125 Canned vegetables 126 Definitions 127 Index 129 List of Figures Figure 1.1: Highly important consumer concerns with a view to the potential future impact on food and drink development 20 Figure 2.2: How long is the typical diet? 39 Figure 2.3: What are the most popular diets according to the consumers? 40 Figure 2.4: Is the GI diet set to become the next big dieting trend? 43 Figure 2.5: The Australian GI symbol 46 Figure 2.6: Is exercise as important as dieting to consumers? How often do consumers exercise per week? 50 Figure 2.7: What impact do you believe food scares such as BSE/CJD and bird flu have had on consumers' perceptions of the food and drinks industry? 50 Figure 2.8: Are consumers increasingly likely to accept GM foods into their daily diet over the next five years? 58 Figure 3.9: How successful in terms of sales do you believe the next five years will be globally for the health food and drinks market? 62 Figure 3.10: Age groups expected to experience the most NPD activity over the next five years 63 Figure 3.11: What do you perceive to be the most profitable health food and drinks sectors over the next five years? 66 Figure 3.12: How do you perceive the future success of the following functional products over the next five years? 68 Figure 3.13: Consumers' willingness to pay a premium for functional versus organic 69 Figure 3.14: Profitability hotspots in the healthy food and drinks arena at present 74 Figure 3.15: Profitability hotspots in the healthy food and drinks arena by 2009 76 Figure 4.16: Cadbury’s easily beats the diet product examples in terms of consumption 82 Figure 4.17: Have you purchased any of the following retailer’s private label products in the past 12 months? 84 Figure 4.18: Have you purchased any of the following foodservice branded products in the past 12 months? 85 Figure 4.19: Have you purchased any of the following low carb branded products in the past 12 months? 86 Figure 4.20: Future forecast: top 10 successful healthy food products to 2009 88 Figure 4.21: Heinz soup – reduced salt 100 Figure 4.22: Sid the Slug – anti-salt campaign 102 Figure 4.23: Vegetarian-friendly cereals with added health benefits, soya milkshakes and meat-free pepperoni pizza 108 List of Tables Table 1.1: Rating the importance of the influence of 11 consumer concerns on the development of the food and drinks industry 19 Table 2.2: Do you think the food and drinks industry should be held responsible for the rising levels of obesity in children? 26 Table 2.3: How important do you consider the following factors in the controversial debate on rising levels of obesity in children? 27 Table 2.4: How important do you consider the following factors in the controversial debate on rising levels of obesity in adults? 28 Table 2.5: Prevalence of diabetes in the seven major markets 31 Table 2.6: Which of the following diets have consumers tried in the past? 40 Table 2.7: What impact do you believe food scares such as BSE/CJD and bird flu have had on consumers' perception of the food and drinks industry? 51 Table 3.8: How successful in terms of sales do you believe the next five years will be globally for the health food and drinks market? 61 Table 3.9: Age groups expected to experience the most NPD activity over the next five years 63 Table 3.10: What do you perceive to be the most successful health food and drinks sectors over the next five years? 66 Table 3.11: Future success potential of functional food and drink products 67 Table 3.12: Profitability hotspots in the healthy food and drinks arena at present 73 Table 3.13: Profitability hotspots in the healthy food and drinks arena by 2009 75 Table 3.14: Low carb versus low calorie competition assessment 77 Table 4.15: Have you purchased any products from the following companies/brands in the past 12 months? 83 Table 4.16: Perceptions of healthy drink products to 2009 86 Table 4.17: Perceptions of healthy food products to 2009 87 Table 4.18: Lessons to be learned by the food and drinks industry from the growing skincare market targeting consumers' age concerns 92 Table 4.19: Antioxidants for anti-ageing 93 Table 4.20: Food and drinks companies plans to reduce levels of salt in their products 103 Table 4.21: What is the future potential for vegetarian/meat-free products in the next five years? 104