About this report
Driven by the rising numbers of those, in an ageing society, suffering from, or worrying about, heart disease, allergies, diabetes, obesity and other problems and ailments, the market for healthy food products continues to expand. Healthy aspects alone are, however, not enough anymore for many consumers – taste, variety, and convenience also comes strongly into play.

To meet consumer demand, organic/low calorie/fat/sugar/cholesterol versions of existing lines, as well as quite new products with added functions, continue to emerge in great numbers. But suppliers seek not only to improve their portfolios but also their corporate images, some presenting themselves as a friend, coach, and advisor to those seeking to eat better and thus live healthier lives.

Contents
Introduction

Definitions
Consumer research
Abbreviations
Executive Summary
Public concerns about health merge with the need for enjoyment
Consumer habits
Functional food and organic lines continue to expand
Healthy lines to be found in all sectors
Leading manufacturers improve their portfolios
Low-fat is most important health claim for new product development
Foods that are growing in popularity
TGI Europa data show Germans score comparatively low on healthy eating
Market to expand further, though faster in volume than value terms; indulgence will play a larger role
Market Drivers
Simple dieting gives way to lifestyle changes; men catch on too
The rising number of elderly Germans boosts demand
Figure 1: Trends in German adult population, by age, 2000-05
As consumers look for new ways to prevent disease, the boundaries between food and medicine blur…
…. and sickness insurance funds have their own health campaigns
Government healthy eating campaigns heighten awareness…
… while the DGE promotes cereals, vegetables and ‘intelligent’ snacking
Health claims more tightly regulated
Obesity on the rise
Consumer base for healthy foods may have plateaued
Indulgence is also important
Wider availability improves take-up
Incidence of health problems
Figure 2: Incidence of ailments in last 12 months and last week, by country, 2005
Figure 3: Remedies taken in last 12 months, by country, 2005
Other lifestyle factors
Figure 4: Lifestyle factors, by country, 2005
Health scares and rising consumer knowledge shift spending
Better on-pack information to help consumers make informed choices
Catering for allergies
The Consumer – Attitudes Towards Healthy Eating

Figure 5: Attitudes towards food and diet, by country, 2005
Figure 6: Trend in attitudes towards food and diet in Germany, 2002-05
Who does what?
Figure 7: Attitudes towards food and diet in Germany, by demographic sub-group, 2005
Attitudes towards food and diet by lifestyle factors
Figure 8: Attitudes towards food and diet in Germany by lifestyle factors, 2005
Lifestyle factors and healthy eating
Figure 9: Use of selected foods by lifestyle in Germany, 2005
The Consumer – Healthy Eating

Salad dressings and spreads are more popular in Germany than elsewhere
Figure 10: Use of selected foods by country, 2005
Snacks and ice-cream are less widely eaten
Indulgence foods are growing, underpinning need for ‘healthier’ varieties
Figure 11: Growth in penetration of selected foods in Germany, 2002-05
New Product Development
Figure 12: Number of new product launches in Germany, by sector, 2002-06
Figure 13: Number of new product launches in Germany, by selected product claims, 2002-06
Low fat is the leading selling point
Functional food NPD, 2005-06
Market Size and Trends
Figure 14: German consumer expenditure on food and non-alcoholic drink, at current and constant prices, 2001-06
Figure 15: Detailed breakdown of spending on consumer goods – food as % of total, 2001-06
Figure 16: German monthly food expenditure, per household, 1993, 1998 and 2003
Retail sales of selected foods
Figure 17: German retail value sales of selected foods, by type, 2002-06
Healthy foods
Functional food
The ‘wellness’ trend
Organic foods
Figure 18: German retail value sales of organic food and non-alcoholic drink, 2001-06
Low-fat and ‘light’ foods
Figure 19: German retail values sales of selected “healthy” foods, 2002-06
Figure 20: Popularity of selected low-calorie brands, 2004 and 2005
Figure 21: German retail value sales of ‘light’ foods, 2001-06
New market opportunities
Other eating trends
Mainstreaming
Market Segmentation
Dairy
Figure 22: German retail value sales of dairy foods, by sector, 2002-06
Milk and milk substitutes
Butter, margarine & spreads and cheese
White line and cream
Bakery
Figure 23: German retail value sales of bread, cakes and biscuits, by sector, 2002-06
Snacks
Figure 24: German retail value sales of snacks, by sector, 2002-06
Confectionery
Figure 25: German retail value sales of confectionery, by sector, 2002-06
Cereals
Figure 26: German retail value sales of cereals, by sector, 2002-06
The Supply Structure
Manufacturers’ and brand shares
Dairy – white line
Figure 27: Popularity of selected yogurt brands, top 20, 2001-05
Butter and spreads
Figure 28: Popularity of selected margarine brands, top 15, 2001-05
Baked goods
Figure 29: Popularity of selected sweet biscuits brands, top 10, 2001-05
Crisps and snacks
Figure 30: Popularity of selected savoury snacks brands, top 10, 2001-05
Sugar confectionery
Figure 31: Manufacturers’ value shares of sugar confectionery, 2005
Figure 32: Popularity of selected sugar confectionary brands, top 20, 2001-05
Chocolate confectionery
Figure 33: Popularity of selected moulded chocolate bar brands, top 15, 2001-05
Figure 34: Popularity of selected countline brands, top 20, 2001-05
Figure 35: Popularity of selected muesli countline brands, 2001-05
Breakfast cereals
Figure 36: Manufacturers’ value shares of breakfast cereals, 2002-05
Few big organic brands, but rising own-labels
Companies and brands
Bahlsen
Campina (Tuffi Campina emzett)
Dr August Oetker Nahrungsmittel
Kraft Foods
Molkerei Alois Müller
Nestlé
Plus Warenhandelsgesellschaft mbH
Unilever Bestfoods
Prospects and Forecast
Prospects
Overall growth may be slower, though strong in the right niches
Low-cholesterol and gluten-free to advance
Older Germans to drive market, especially for wellness lines
Functional food lines to grow selectively
Salty snacks will gain ground against sweet ones, but ‘light’ varieties will stagnate unless taste is assured
Bakery market polarising
Organic market to grow further, though there are still hurdles
Ageing population will continue to drive changing eating habits …
Figure 37: Projections in German population, by age, 2006-10
… and inspire new exotic products
Market for cereals and high-roughage bakery lines has good prospects to grow
Forecast
Figure 38: Forecast for German retail value sales of selected foods, by type, at current prices, 2006-11
Ageing population will boost growth in healthy eating
Healthy food products likely to grow ahead of the overall market
Real price of food to decline
Figure 39: Forecast of German retail value sales of selected foods, by type, at constant prices, 2006-11
Factors used in the forecast