EASTER INNOVATION FROM AROUND THE GLOBE

Datamonitor’s Product Launch Analytics takes a look at innovative chocolate treats for this year’s Easter baskets

LONDON  – Thursday, 5^th April 2012 – The Easter Bunny has been busy this year with innovative chocolate products taking pride of place on supermarket shelves  around the globe this Spring. 

“There is something to make everyone smile, from a traditional Christian chocolate cross and royalty-themed chocolate ducks to real egg shells filled with praline, decorate your own eggs and a cocktail egg from Brazil,” says Cesar Pereira, Global Director of Product Launch Analytics at Datamonitor.

Brasil Cacau has extended its line of chocolate eggs with three new varieties including Pe-de-Moleque (a Brazilian sweet made with toasted nuts ,Cocada (a Brazilian sweet made with coconut) and Caipirinha (a Brazilian cocktail).  The Caipirinha variety is a milk chocolate egg with crunchy lime, filled with bottle-shaped, ‘lime-caipirinha’ flavored milk chocolates sweets.

North of the equator, US consumers will be able to celebrate Easter with Russell Stover’s solid milk chocolate cross.  The ”cross” comes in a windowed, Easter-themed box.

Across the pond in the United Kingdom, Marks & Spencer plc has launched a new hand-decorated milk chocolate product for Easter inspired by the popularity of the royal family.  Their Royal Ducknesses  features two decorated hollow milk chocolate “ducks” with sugarpaste crown shapes. They come without artificial colors or flavours and are presented in  see-through plastic box.

Meanwhile, consumers in Germany will be offered a new praline chocolate in real egg shell from Gut Springenheide GmbH.  Presented in a windowed paperboard box, the product is available in white, red, and green colors.

Finally, Italian consumers who feel like being artistic can now decorate their own eggs.  Italy’s Molino Spadoni S.r.l. has introduced a new dark chocolate egg that includes a decoratin kit, sold under the Specialita del Trentino brand name. The kitincludes two dark chocolate egg shells, a blank greetings card, a base to support the egg, a wrapper, a satin ribbon, and a string to hold the egg together.  Consumers can fill the eggs with miniature eggs, toys, candy or other surprises in an ideal way to personalise their Easter egg gifts.

“There is an Easter Egg to suit every taste out there somewhere,” says Pereira.  “Chocolatiers from around the globe have pulled out the stops for top class product innovation this year.”

-ENDS-

 Note to Editors:

 Product Launch Analytics from Datamonitor is the most comprehensive and detailed source of information for newly launched consumer packaged goods from around the world.

Cesar Pereira, global director of Product Launch Analytics, is available for comment.

To arrange an interview with Cesar Pereira, please contact Kirstin Stocker in Datamonitor’s press office at +44 (0) 1483 825664 or e-mail Kirstin at kirstin.stocker@informa.com.

For more information on Product Launch Analytics, please contact David Pender at +1 212-652-5332 or dpender@datamonitor.com (Americas) or Jay Talwar at +44 (0) 207 551 9587 or jtalwar@datamonitor.com (Europe).

ABOUT DATAMONITOR

The Datamonitor Group (www.datamonitor.com) is a world-leading provider of premium global business information, delivering independent data, analysis and opinion across the Automotive, Consumer Markets, Energy & Utilities, Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Sourcing, Technology and Telecoms industries. Combining our industry knowledge and experience, we assist more than 6,000 of the world’s leading companies in making better strategic and operational decisions.

 Shoppers will pay more but buy less this Christmas, says new report by Verdict and SAS.  But, do retailers know WHO is doing the Christmas shopping?

London, UK – 11th November 2011 – Men will buy more than half of the nation’s Christmas turkeys this year says a new report from Verdict Research and business analytics company SAS.  According to the report – How Britain will Shop for Christmas 2011 – retailers who want to make the most of the coming season’s opportunities are advised to look carefully at who is doing the shopping.

More than 10.5 million turkeys will be bought by UK consumers this Christmas. Turkey purchases start in earnest from mid-November while more than 5 million will be bought in the last week with 56.5 per cent purchased by men. The research suggests that women send their partners out with lists to save time as they ready the home, wrap presents, prepare party food and organise decorations, leaving men responsible for the tree, drink, Christmas food and present shopping.

“One of the most interesting things to come out of this report is who is doing the Christmas shopping,” said Maureen Hinton of Verdict.  “The data clearly shows that retailers ought to be actively targeting men, for whom Christmas is one of the big shopping windows. After a tough 2011 many retailers will be relying on Christmas to make a profit before being hit hard by a tough Q1 in 2012. Consumers will cut back as they recover from Christmas spending and face increased utility bills and high unemployment. Therefore retailers must build up enough cash and margin to support them through difficult trading until the next likely boost in spending, Easter.”

The report shows that UK households will spend £86.5bn in the run up to Christmas, £1.2bn more than in Q4 last year, but the volume of purchases will be down by 0.7 per cent.  Although shoppers will be counting their pennies, spend on food, clothing, footwear, health and beauty will all increase as consumers purchase their Christmas gifts.

Spend on food will increase by almost four per cent (3.8 per cent) in 2011 to £33.4bn, outperforming overall retail growth but only because of inflation rather than sales. Clothing, footwear, health and beauty will also outperform as they are major gift categories due to their relationship to personal well-being. However, non-food sales will be hit the hardest, shrinking by 0.1 per cent as consumers avoid big ticket items with home related categories expected to shrink by £490 million. (See appendix for a detailed sector-by-sector breakdown.)

Online sales will fare particularly well this year due to the convenience, ease of access and ability to compare prices across different websites. Spending online will grow to £9bn which represents nearly 10 per cent of total spend over the holiday period and this increase can, in part, be attributed to the increase in mobile commerce for price comparisons, ordering and checking stock availability. However, this does not account for the influence online has on overall spending with 63 per cent of online shoppers researching online and then buying instore. The increase in online purchases this year is up against a weaker comparative due to the bad weather of 2010 halting the delivery of online purchases.

“UK retailers face one of the most challenging Christmases ever as a combination of low consumer confidence and inflation is making shoppers question every purchase they make, even at a time when they want to celebrate.

All the growth in the market is inflation led and a repeat of last year’s bad weather would be disastrous for retailers who are already on very tight margins.” continued Hinton.

Cindy Etsell, retail specialist at SAS UK said, “The pressure on retailers this Christmas is unlike anything they will have experienced before. The key for maximising sales is about understanding when consumers are looking to purchase items and ensuring that sales prices are optimised accordingly. Monitoring customer behaviour is critical for this and the information that retailers have about their customers from till receipts, credit and loyalty cards, and even wider unstructured data from sources like social networks can steer their understanding of purchasing patterns and ability to mark down prices at the optimum time to shift stock without losing significant margins.”

-ENDS-

Notes to editors

For a PDF of the full report and/or interviews with Cindy Etsell of SAS or Maureen Hinton of Verdict, please contact:  Kirstin Stocker at Verdict: kirstin.stocker@informa.com OR Pippa Melamet at Hotwire: sas@hotwirepr.com.

ABOUT SAS

SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions delivered within an integrated framework, SAS helps customers at more than 50,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world THE POWER TO KNOW.

ABOUT VERDICT:

Verdict Research is the leading authority on retailing. The firm has privileged access, at the highest level, to key executives working within the top 200 retailers. Its research and publications provide executives working in a wide range of business sectors – retailing, manufacturing, advertising, marketing, professional services, property, finance and the media – with unrivalled independent analysis of the retail sectors, key trends driving each, insight into the major players and forecasts. Verdict Research (www.verdict.co.uk) is a wholly owned subsidiary of Datamonitor.

Appendix

Christmas 2011 UK retail trends by sector

Food & grocery

• Online sales will be a key channel for seasonal sales growth and innovation will be crucial in gaining market share (20.9% total sales). However, UK shoppers are wary of another year of heavy snowfall, with many consumers going online to browse before heading to stores to purchase items.
• Grocers are embroiled in heavily publicised price-focused marketing campaigns and private label ranges have gained greater credibility with shoppers wanting to trade down.

Health & beauty

• This will be one of the more robust sectors in 2011 due to relatively low selling prices and a strong focus on offering a wide range of products for gifting. In particular, perfumes are always a strong festive gift with late November/early December being the peak purchasing period.

Clothing & footwear

• Clothing & footwear is expected to fare slightly better than other sectors this Christmas as they make affordable gifts compared to other larger big ticket items. Lifestyle and premium brands are expected to perform well with the in-store experience, brand perception and quality credentials helping customers to justify higher spend.

Electricals

• Small consumer electronics will give the sector a welcome boost but an increase of 3.5% in volume will not be enough to drive positive growth in 2011 because this is one sector that is still deflationary. Online specialists should perform well with their competitive prices and varied delivery options providing shoppers with a far more convenient mode of shopping.
• Post Christmas, market volumes will rise as consumers take advantage of sales but like-for-like comparisons are likely to be poor as many consumers bought big ticket items last year in anticipation of the VAT increase in January this year.

Books, music & video

• These products will struggle this Christmas as demand for physical music and video products continue to drop off and more consumers take to tablets, e-readers and downloading. Price competition from online suppliers and grocers will continue to squeezes margins. Digital content does not fare well as a Christmas gift, while video games will not perform well because no new hardware and consoles have been launched in have been released in the second half of 2011.

Furniture & floor coverings

• This sector will decline by 5% in Q4 2011 as most shoppers made big ticket purchases last year in anticipation of the VAT increase in January and are wary of spending in the current climate.

Homewares

• Gifting will be the key driver of growth over the Christmas period but big ticket categories will continue to suffer. Retailers will need to be aware of consumer demand for decorations peaking in mid-November (12^th – 21^st November) and optimise prices to reflect this demand.

DIY & Gardening

• This is the worst hit sector with a 6.3% drop in expenditure on Q4 last year. The link to the housing market is the key factor behind its difficulties as consumers are reluctant to spend on big projects due to concerns with employment, household expenses and debt. Unless visiting for specific DIY purposes such as Christmas trees, consumers are unlikely to frequent these shops with the aim of purchasing Christmas gifts. As a result, it is more crucial for this sector than any other to closely monitor customer spending patterns and maximise sales opportunities during peak periods.

A more humane world

Animal rights have emerged as a growing worldwide concern as consumers want to know more about how the foods they eat were raised and prepared.  For example, according to the Datamonitor research, the “free range” product claim commonly used to identify how poultry are raised has nearly doubled in frequency for new food products launched worldwide since 2006. 

 Poultry has recently been joined by free-range pork, lamb and beef and the free-range trend will accelerate in 2010 as foodservice chains follow the trail blazed by leading-edge consumer packaged goods companies into humanely-raised products. The research has highlighted the UK as leading the way, with China, Brazil and the USA not far behind, all showing an increase in the launch of products making the ‘free range claim’. 

Growth in meat flavoured products market

A flurry of meat flavoured product launches in the USA over the last few months has combined with innovations from the UK, leading Datamonitor to predict this will be a key trend in 2010.  The products launched in the USA included Das Lolli Man Bait (meat flavoured lollipops), Mo’s Dark Bacon Bar and  Backon (bacon flavoured Vodka).

Plastics back in from the cold

New types of degradable packaging enable plastic to biodegrade in years, not centuries.  The key is additives like EcoPure or Reverte that help plastic biodegrade more quickly and safely than it ordinarily would.  The bottled water market has been ground zero for this trend with entries like Aquamantra Natural Spring Water in Enso bottles and State of Mind Bottled Water in Reverte Back to Nature bottles (both from the USA).  This trend is likely to accelerate in 2010 on a global scale with Charlies Honest Water in an eco bottle from Australia and New Zealand and Italy’s Sant’anna Bio bottle.  Datamonitor expects the trend to move beyond the bottled water market to other categories.

Skincare you wear

Innovations like skin-enhancing bedding from US-based company, London Luxury, and sun activated clothing from Toronto brand SunSoul, show that wearable skincare could be a breakout hit in 2010 and beyond.  These products utilize breakthroughs in nanotechnology to incorporate ultrafine particles like copper or aloe vera into clothing or bedding.  SkinGlow, also from London Luxury, uses Cupron Copper Technology that professes to smooth or reduce the appearance of wrinkles, fine lines and more in just a few weeks of use. 

More muscular functional drinks

 A decade ago, a brand called Red Bull took the soft drink market by storm, creating a new niche for energy drinks.  History could potentially repeat itself with a drinks brand called Muscle Milk.  Quietly, the protein-enhanced exercise recovery drink brand from Californian Company, Cytosport has crafted a following that suggests significant crossover potential for so-called “muscle” beverages that have long been aimed at weightlifters and power athletes.  Muscle Milk and similar healthy and active lifestyle beverages could be the next hot niche within the functional drinks market.

Superfruits get more exotic

Candidates for the next hot superfruit for 2010 and beyond include Baobab (a tart African fruit high in antioxidants), Borojo (a natural energizer from the jungles of South and Central America), Maqui (a berry native to South America said to have 8 times the antioxidants of blueberries) and Yumberry (technically “yang-mi” fruit – a super-high antioxidant tree fruit from China). 

Ingredients: the fewer, the better

Packaged food and drinks companies around the world are seeking to say “better for you” in innovative ways.  The newest technique is to take a machete to product ingredient lists.  Out are ingredients that sound more at home in a chemistry lab and in their place are ingredients that most consumers recognize.  Haagen-Dazs’ 5 Ice Cream illustrates the trend with just five ingredients for each ice cream flavor.  Look for other packaged food and drinks makers to dance the limbo with product ingredient lists in 2010 and beyond.

Bamboo cleans up

Perhaps no substance has enjoyed more of a booster shot courtesy of the green movement than bamboo.  Thanks to its outrageously-fast growth rate (it can grow as much as 24 inches in a single day), bamboo has become the ingredient of choice for companies that want to bolster their sustainability credentials.  The substance has shown up in recent launches as disparate as dish-cleaning sponges and paper plates to baby wipes and cosmetics packaging. 

From energy shots to relaxation shots

While the shot format has been around for some time in various world markets for dairy-based drinks, the format has exploded in popularity in other markets.  Almost singlehandedly, shots have elevated the energy drink market to new heights.  The latest “shot” trend is the polar opposite of energy drinks – new relaxation “shots” that offer a non-alcoholic way to reduce stress.  Most launches have been from the USA although we’ve seen launches in Amsterdam with LR Liquid Relaxx Calm Alert Drink and Fancl Suyarin from Japan (the first drink to specifically induce sleep).   All told, the number of new products featuring the words “shot” or “shots” has doubled since 2006, reports Datamonitor’s Product Launch Analytics.

A gluten-free world

 The gluten-free movement credit as it continues to strengthen each year.  With the incidence of food-related allergies on the rise, things look good for suffers of celiac disease seeking products they can enjoy.  Datamonitor’s Product Launch Analytics reports a doubling of new gluten-free products since 2005 with major consumer packaged goods companies now jumping on the bandwagon.

The success of marketing probiotic yogurt products such as Yoplait and Yakult means that Australian consumers are more aware of the importance of digestive health issues than ever before. Terms such as ‘digestivus culturus’ and ‘l. casei shirota’, which at one time would mystify consumers, are now becoming more widely understood. However, this is only the beginning of the digestive health movement. “Consumers are now more knowledgeable regarding digestive health and are seeking out more ways of safeguarding their health with functional foods,” comments Mark Whalley, Consumer Markets Analyst at Datamonitor.

“This is good news for the millions of Australians who suffer from digestive complaints such as heartburn and irritable bowel syndrome”, said Whalley, based in London. In 2008, nearly three and a half million people complained of heartburn, and this figure expected to rise past four million by 2013 (amounting to nearly a 20% of the population). Similarly, around 2.7 million people suffered from IBS in 2008, with a predicted increase to 3.2 million by 2013. No wonder then that so many people are looking for solutions to their problems!

The real success of these products has been the way in which consumers have adopted them for a ‘daily dosing’ routine. The daily consumption of a probiotic yogurt allows people to feel that they are combining a healthy boost with a delicious treat. “However, the industry faces a tough challenge justifying prices at a time when consumers are looking to save pennies”, added Mark Whalley.

Trust also continues to be an issue for Australians, with only a quarter (27.5%) telling Datamonitor that they firmly believed the claims that these products make. In other Asia Pacific countries such as Japan, the idea of drinking a daily Yakult is a far more normal and accepted part of life. As time goes on, the same culture is expected to develop across Europe and North America.

Manufacturers are responding to interest by incorporating probiotics into more foods that people eat everyday, including desserts such as ice creams and even tomato ketchup. What’s more, prebiotics, the lesser-known cousin of probiotics, are finding their way into a number of products, including breakfast cereals. It is this ease of consumption that is making digestive health regimes so appealing.

The future of foods and beverages which claim to improve digestive health is looking good. “People find these products appealing and, more importantly, they like how they taste. Digestive health has strong links with immunity health, which means that consumers feel better after eating their probiotic yogurts. This is what keeps them coming back for more. It’s therefore likely that, looking forwards, digestive health products will go from strength to strength,” concludes Whalley.

]]> http://about.datamonitor.com/media/archives/2933/feed 0 http://about.datamonitor.com/media/archives/624 http://about.datamonitor.com/media/archives/624#comments Fri, 01 Aug 2008 03:34:06 +0000 media@datamonitor.com http://about.datamonitor.com/media/?p=624 London. A new report* from independent market analyst Datamonitor reveals that consumers in the UK are eating more fresh fruits and vegetables to meet their “five a day” target. Between 2002 and 2007, the annual consumption of fresh fruits and vegetables in the UK increased from 93kg per person in 2002 to 113kg in 2007, and Datamonitor forecasts this will increase to 123kg in 2012. However, Datamonitor research shows that the emergence of so-called “superfruits” could be having an adverse effect. Indeed, false assumptions about their nutritional value may prevent consumers from fulfilling their fruit and vegetables quotas.

“Daily dosing” is gaining appeal

The quantifiable nature of the “five a day” target has been extremely effective in breaking consumption down into an attainable goal. The emphasis now placed on fruit and vegetable consumption as a quantitative target has resulted in consumers looking to quickly ‘dose’ themselves, much like the ingestion of a daily medicine. “This dosing allows consumers to feel satisfied that they are boosting their health without being inconvenienced by spending large amounts of time planning and preparing nutritious meals,” comments Mark Whalley, Consumer Markets Analyst at Datamonitor and author of the report.

Consumption of fruit and vegetables varies by country, sometimes by a great deal – those countries with low consumption such as the Netherlands, Sweden and the UK are beginning to ‘catch up’. Those with a higher consumption are forecast to see a tapering off as consumers cannot (or do not feel inclined to) raise the amount of fruit and vegetables in their diets any further.

Manufacturers have jumped on the bandwagon

Manufacturers have capitalised on this trend by incorporating more fruits and vegetables into their products, and advertising these goods with healthy messaging. As product innovations have become more varied and imaginative, incorporating superfruits such as acai and goji berries has had a widespread impact on the entire industry. Famed for having high levels of nutrients and anti-oxidants, superfruits have become a much-desired addition to consumers’ diets. “Consumers have responded enthusiastically to the idea that these fruits provide them with an enormous health boost,” comments Whalley, “to the extent that the consumption of other fruits and vegetables is suffering.”

Though the popularity of superfruits and growing number of innovative products which feature them as ingredients gives consumers extra options in making their fruit and vegetable quota, people must be aware that they are not a “quick-fix” solution to a worldwide epidemic of under-consumption. Datamonitor believes that overlooking more traditional, “ordinary” alternatives like apples purely in favour of superfruits will prove detrimental to overall consumption, and ironically begin to undo the positive effects that fruit and vegetable targets have had in the UK.

In addition to recorded statistics, the perceived spread of the problem has also been noticed by European adult consumers.  According to a Eurobarometer survey, some 85% of consumers in the UK agree they feel there are more overweight children now than five years previously. In France, Sweden and Germany this proportion exceeds 90%.

Who is to blame?

Consumption of food though is of course an issue. In Europe, children consume more than the population average in many energy-dense, indulgence food and drink categories. European kids consume 17% more than the population average in confectionery (9.8% UK), 23% in Savoury Snacks (20.4% UK), almost 26% in Ice Cream (27.5% UK), and 33% in fizzy drinks (31.4% UK). Furthermore, a reliance on packaged food to provide balanced nutrition has led to many children accessing a diet that is geared too much towards convenience rather than balanced nourishment. In the western world children are now suffering because their diet is not balanced and is too rich in calories.

Obesogenic environments and lifestyles contribute to growing childhood obesity

Much of the problem of childhood obesity is that the conditions for its prevalence are so rife, making a healthy weight more difficult to maintain. Modern lifestyles can encourage bad eating and exercise habits, which make keeping slim a difficult goal to achieve. In countries where many retail developments and leisure venues are increasingly located on the periphery of urban centres the importance of the motor car is likely to continue unchallenged unless either regulation or the cost of ownership makes cars less affordable.

The situation of more children travelling to school by car or public transport may become more extreme in future if more children travel greater distances to access the best-ranked schools in a parallel of more adults commuting to work over greater distances. With a growing dependence on cars and public transport to travel ever further to school, fewer children are regularly benefiting from the moderate exercise of walking, which limits the amount of ‘unnoticed’ exercise taken by children.

“Ethical consumerism will increasingly come to the fore as people shop for products they feel akin to politically, ethically and aesthetically, says Nick Beevors, consumer market analyst at Datamonitor and the report’s author. “Consumers will choose brands that are actively making a difference in a transparent and trustworthy manner. This is reflected by the double-digit growth of 15.7% (between 2007-2012), which Datamonitor forecasts for fair-trade purchases over the next 5 years, in the 11 countries covered in the report.” *

Brits’ spend per head on fair-trade products outstrips that of the rest of Europe, the US, Australia & New Zealand and Japan

Worth £455.3m, the US has the largest fair-trade market of the regions covered.

In Europe, the UK remains the largest market for fair-trade products with a value of £395m (£6.50 per capita) in 2007, followed by France and Germany with a value of £152m (£2.50 per capita) and £99m (£1.20 per capita) respectively. By 2012, Datamonitor expects the UK market for fair-trade goods is to exceed £800 million.

Meanwhile with per capita expenditure at 50 pence and under, consumers in Italy, Spain, New Zealand and Japan spend the least on fair-trade goods.

Across all countries, Beverages account for the largest share of fair-trade product sales. In the UK for example, fair-trade coffee and tea have become hugely popular and are widely available in many supermarkets and coffee shops.

Growing environmental concerns fuel growth

Environmental concerns represent the most important issue in ethical consumption today, helping to drive the growth of ethical markets such as fair-trade. Consumers are becoming more concerned with how their actions are affecting the world around them, even eclipsing general concerns about society, economic and animal cruelty issues.

Catastrophic natural disasters in the western world, such as hurricane Katrina in the US, drought in Australia and floods in the UK, are increasingly attributed to climatic change and as the threat becomes more ‘real’ to western consumers, the trend will become increasingly important. “Consumers are most concerned about climate change not just in an altruistic way regarding the fate of nature, but as genuine concern for human life and importantly, their own quality of life,” says Beevors.

As ethical and environmental consciousness grows so too will certain types of buying behavior. This is reflected by the growth of key product segments, notably fair-trade and organic consumption. As more businesses adopt more ethically sound policies, transparency and trust will become an increasingly important currency as manufacturers attempt to cool a potential consumer backlash to ‘greenwashing’ in the search for clear, honest and effective environmental benefits.

Beevors concludes:

“Fair-trade products meet both social and environmental standards set by the group, creating a fair deal for producers and minimal environmental impact. Another important driver of fair-trade purchases is the perceived authenticity, detail and overall sense of provenance associated with such products. Consumers increasingly want to become engaged with issues such as origin and production details. Fair-trade labeling is something that gives them a degree of confidence over these issues.”

“Current market conditions suggest the functional food market will continue to witness impressive growth rates, says Michael Hughes, consumer market analyst and author of the study. “After all, changing social demographics and greater emphasis on maintaining health is driving the demand for foods rich in nutrients and minerals.”

A myriad of health problems drive functional food and beverage sales

The combined US, Western European and Asia-Pacific functional food and drink market is worth US$ 72.3 billion, Datamonitor analysis reveals. Datamonitor forecasts the US, Western European and Asia-Pacific functional food and drink market will grow at a compound annual growth rate (CAGR) of 5.7% between 2007 and 2012. This buoyant growth is being driven by consumers who are seeking products that offer a solution to both long and short-term health problems.

An aging society is leading to older shoppers seeking out food and beverages that help fight disease and maintain a sense of physical and emotional vitality. In particular, products are being purchased that help reduce the risk of illnesses such as osteoporosis and hypertension.

Younger consumers are also purchasing functional foods and drinks with greater regularity, often as a quick-fix solution. As consumers continue to work longer hours than the generation before them, they are turning to functional products that provide a quick fix energy boost in order to optimize performance.

“Often, functional product consumption has been associated with aging populations aiming to minimize the risk of serious illness. However, lifestyle changes are leading to younger consumers purchasing functional foods with greater regularity, in order to combat day-to-day health issues, such as sleep deprivation, skin blemishes and even nail deficiencies”, says Hughes.

Many consumers are still dubious about the validity and safety of functional foods

Despite these impressive growth rates Datamonitor feels the market faces the challenge of deteriorating levels of consumer trust and confidence. Consumers are becoming less trustworthy of health claims made by food and drink manufacturers, often believing functional package claims to be either false or an excuse to command a premium price. As a result, Hughes believes it is “essential that manufacturers promote functional foods in a credible and honest manner and continue to educate consumers about the credence of emerging ingredients such as lycopene, prebiotic fiber and plant sterols.”

Continuous media coverage on food safety scares and product recalls has also left consumers dubious about the safety of foods containing artificial ingredients. Instead, more shoppers are seeking out naturally healthy options, such as organic and fresh produce.

Asia will remain the most prosperous functional food market, while confectionery and soft drinks continue to grow in popularity

The Asia-Pacific functional food market will continue to outperform the US and European market in the foreseeable future, Datamonitor forecasts. Economic growth throughout the region is creating a supply and demand scenario, with consumers benefiting from an increase in disposable income, but suffering from increased diagnosis rates of lifestyle ailments, some of which have arisen as a result of longer working hours in the region.

Consumers are moving away from restrictive diets towards more inclusive diets

Datamonitor’s survey* reveals approximately 65% of Europeans and Americans made active attempts to eat healthier in 2005-2006. Rather than focusing purely on the elimination of “bad” nutrients from their diets, consumers are also embracing the concept of “positive nutrition” – focusing on the inherently good content within food and drinks. Indeed, while consumers do not underestimate the importance of cutting down on fat, sugar and salt, they also believe a healthy diet involves eating fresh food and drink (90%) and eating from a diverse range of foods (66%). “Although consumers are moderating what they eat and drink with greater regularity, they still want to maintain a sense of normality when dieting. Focusing on the good nutrients in food and drink makes dieting easier and less compromising,” says Hughes.

Hedonistic consumption is still more of a priority than nutritional goodness

Although shoppers are making active attempts to eat healthier, they are unwilling to sacrifice hedonistic attributes associated with food, such as taste, pleasure and enjoyment. This attitude, in part, is driven by the widespread belief that healthy food tastes inferior. This is especially relevant, as consumers are eating out of home with greater regularity – a time when the desire to eat healthily is most likely to be compromised. Recent media coverage on the undisclosed high calorie content of certain meals in the foodservice sector could help explain the contradiction between rising obesity levels and attempts to eat healthier.

Hughes explains:

“More often than not, restaurants do not disclose the nutritional content of their food and drink. This means that even if consumers do attempt to eat healthily, they are at risk of over indulging because of a lack of knowledge about food content. The reality however, is that when eating out, consumers view enjoyment as more of a priority than health”.

New product releases are indicative of the trade off between health and indulgence

Datamonitor’s Productscan tracking reveals dietary products and healthy alternatives are witnessing the largest growth in the food and drink market, in terms of new product releases. In particular, products in 100 calorie pack formats are becoming increasingly popular, allowing shoppers to enjoy great taste without having to worry about the consequences of bad nutrient consumption. Simultaneously, indulgence-based products continue to be popular in the food and beverage market, as manufacturers recognize that the inability to compromise between health and enjoyment means eating and drinking occasions are becoming more occasion orientated.