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Healthy Eating Market Assessment 2003
Key Note Publications Ltd, Jan 2003
Since the early 1980s, household eating habits have been moving steadily towards healthier eating - less fat and sugar and more fruit. This trend has been prompted by a number of factors, including encouragement from government health campaigns and marketing initiatives by manufacturers and retailers, which have had a beneficial effect on a number of markets, including organic, vegetarian and reduced-fat and reduced-sugar foods. However, the topic of healthy eating has also attracted controversy (including conflicting research findings) and in 2001 and 2002, some adverse publicity linked to 'healthy' food sectors such as organic food.
Predictably, the meteoric rate of growth in sales of organic food has begun to slow as the market matures: the sectors that have grown most strongly since the year ending April 2000 have been organic meat and baby food.
The market for vegetarian food has been fuelled both by an increase in the number of consumers who do not eat meat at all, and by changing attitudes towards meat among non-vegetarians. This market has seen some adverse effects due to the strong growth of the organic sector, as well as the fact that some of the less dedicated vegetarians and meat-reducers have turned to non-vegetarian organic food as a way of addressing their concerns about the safety and healthiness of factory-farmed meat. It is also the case that most organic ready meal ranges include totally meat-free dishes. However, the specialist vegetarian sector has countered this with a number of launches of organic vegetarian products, and the market recovered during 2002.
The market for reduced-fat and reduced-sugar products has shown steady but unremarkable growth since 1998. General concern about obesity (in the UK and beyond) - and in particular about its effect on health and the cost of this to the nation in terms of healthcare and sickness absence - has meant that the Government is likely to take more active steps to encourage healthy eating in future.
Consumer research exclusive to us has revealed that consumers are generally sceptical about healthy eating advice from food manufacturers and supermarkets. However, a relatively high proportion are prepared to pay a premium for healthy food, but the vast majority are unwilling to make sacrifices in terms of taste.
The organic foods market is forecast to continue growing at a vigorous rate between 2003 and 2007, although growth will be slowed by the combination of a decrease in the price premium of organic foods and a maturation of the market. The vegetarian foods market will also show considerable growth during this period, with manufacturers of specialist vegetarian foods continuing the trend of repositioning products with the emphasis on taste and health benefits in an attempt to further the appeal to non-vegetarians. In contrast, sales of reduced-fat/reduced-sugar products will show only modest growth.
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