About this report
Sales of 'healthy' options within the five markets examined in this report are expected to top €4.6 billion in 2006, representing 35% of total sales. 'Healthy' dairy products represent 62% of all healthy foods, with sugar-free confectionery representing a further 20%.

Half of sales of dairy products are of healthier lines and 75% of sales of sugar confectionery and chewing gum are taken by sugar-free varieties. Healthy eating is least well developed in crisps and snacks, where low-fat variants account for only some 4% of sales.

Contents
Introduction

Definitions
Abbreviations
Executive Summary
Food spend outpaces general consumer expenditure
Dairy products is the largest market…
…with growth driven by products offering well-being
Low-fat and low-sugar for confectionery and bakery, fibre for cereals
New product development in healthy lines
Prospects are good for healthy eating
Market Drivers
High concern with personal appearance
Government action to tackle unhealthy eating habits
Importance of food safety
Growing incidence of child obesity
Increasing emphasis on enjoyment of food
Consumer attitudes towards healthy eating
Guarding young people’s health
Italian children adopting the eating habits of Northern European neighbours
Figure 1: Trends in Italian population, 2000-05
Ageing population benefits functional foods
Figure 2: Projections in Italian population, by age, 2006-10
Greater potential for functional foods
‘Healthy’ means more than just low-fat
Working population has less time for eating healthily
Figure 3: Trends in Italian employment, 2000-05
Figure 4: Trends in Italian PDI, consumer expenditure and GDP, at current prices, 2000-05
Figure 5: Detailed breakdown of consumer spending in Italy, at current prices, 2000-05
Modest improvement in economic situation to 2010
Market Size and Trends
Food expenditure
Figure 6: Italian consumer expenditure on food, at current and constant prices, 2000-05
Figure 7: Expenditure on food as % of total consumer expenditure, 2000-05
Meat takes over a fifth of food spend…
Figure 8: Average monthly family expenditure in Italy, 2001-04
…but fish is second in importance to beef in expenditure terms
Figure 9: Average monthly family expenditure in Italy on food and beverages, by type, 2004
Figure 10: Average monthly family expenditure in Italy on food and beverages, by region, 2004
Value sales in selected markets
Figure 11: Italian retail value sales of selected foods, by type, at current prices, 2002-06
Figure 12: Italian retail value sales of selected foods, by type, at constant prices, 2002-06
Sales of ‘healthy’ foods
Moving beyond low-fat
Figure 13: Italian retail value sales of selected ‘healthy’ foods, 2002-06
‘Healthy options have gained most ground in dairy foods
Organic is small, but growing
Market Segmentation
Dairy products
Figure 14: Italian retail value sales of dairy foods, 2002-06
Half of dairy sales are ‘healthier’ options
Figure 15: Italian retail value sales of “healthy” dairy foods, 2002-06
Low-fat varieties take 80% of milk sales
Figure 16: Italian retail value sales of milk, by type, 2002-06
Cheese – less is more
Probiotic is the star performer in yogurts
Figure 17: Italian retail value sales of yogurt, by type, 2002-06
Widening usage occasions for yogurt
Confectionery
Figure 18: Italian retail value sales of confectionery, 2002-06
Figure 19: Italian retail value sales of sugar-free sugar confectionery and chewing gum, 2002-06
Bakery products
Figure 20: Italian retail value sales of bakery products, at current and constant prices, 2002-06
Healthy bakery products take a quarter of sales
Figure 21: Italian retail value sales of 'healthy' bakery products, 2002-06
Crisps and snacks
Figure 22: Italian retail value sales of crisps and snacks, at current and constant prices, 2002-06
Figure 23: Italian retail value sales of low-fat crisps and snacks, 2002-06
Breakfast cereals
Figure 24: Italian retail value sales of breakfast cereals, at current and constant prices, 2002-06
Figure 25: Italian retail value sales of 'healthy' breakfast cereals, 2002-06
New Product Development
Figure 26: New product launches in Italy, by sector, 2002-06
Figure 27: Leading product claims for new product introductions in Italy, 2002-06
Functional food NPD, 2005-06
The Supply Structure
Manufacturers’ shares
Dairy products
Confectionery
Baked goods
Crisps and snacks
Breakfast cereals
Companies and brands
Nestlé
Granarolo
Danone
Barilla
Parmalat
Unilever
Prospects and Forecast
Prospects
Italian diet held up as a ‘healthy’ example
Quality and health are more important than convenience
‘Functional’ set to grow
Forecast
Figure 28: Forecast of Italian retail value sales of selected ‘healthy’ foods, by type, at current prices, 2006-11
Growth across all healthy food markets expected to continue
Slight increase in food inflation over the forecast period
Figure 29: Forecast of Italian retail value sales of selected ‘healthy’ foods, by type, at 2006 prices, 2006-11
Factors used in the forecast