Introduction

Consumers have a heightened level of health awareness and say they are taking active steps to control their health, yet obesity and its implications seem unstoppable. Important shifts in lifestyle, nutrition and cultures are creating challenging market dynamics with manufacturers’ core product offers being squeezed and having to find new strategies for growth.

Scope

Overview 1
Catalyst 1
Summary 1
Executive Summary 3
Hot topic 3
The Future Decoded 3
Obesity remains the key health issue to address 3
The increasing prevalence of obesity is no longer confined to high income countries or households 3
``Obesogenic`` environments are contributing to the growth of obesity 4
More sedentary lifestyles are creating imbalances between energy intake and expenditure 4
Genes are contributing to the growth of obesity and overweight prevalence 4
Changes in culture and societies are reflected in changing patterns of food consumption 5
Consumers are increasingly taking responsibility for their own health 5
Consumers are not willing to give up taste for health 5
Regulation and government efforts to control the rise of obesity have had limited success to date 6
Action Points 6
Table of Contents 7
Table of figures 8
Table of tables 9
THE FUTURE DECODED 10
A contradiction - the rise of obesity and consumer demand for healthy products 10
TREND: Obesity remains the key health issue to address 10
How do we define obesity? 10
The longevity and widespread implications of obesity are very concerning 11
Healthcare costs are also set to spiral 11
TREND: The increasing prevalence of obesity is not confined to high income countries or households 12
There is a lack of consistent, trended and directly comparable data, despite the high profile of the issue 12
Over half the population across Western Europe, the US and Asia Pacific are overweight or obese 12
Obesity is not only associated with just high income countries or households 14
Overweight and obesity prevalence in children is increasing worldwide 15
TREND: ``Obesogenic`` environments are contributing to the growth of obesity 17
More sedentary lifestyles are creating imbalances between energy intake and expenditure 18
Calorie intake has increased globally 18
There has been an increase in daily calorie intake and increased consumption of calorie dense foods 18
Increased consumption of beverages is contributing to increased calorie intake 18
Seventy percent of Australians are sedentary or have low exercise levels 20
Southern Europe has the lowest frequency and intensity of exercise of the countries compared 21
Genes are contributing to the growth of obesity and prevalence of overweight consumers 24
Changes in culture and societies are reflected in changing patterns of food consumption 25
Changing food consumption habits are encouraging the obesity trend 26
INSIGHT: Consumers are increasingly taking responsibility for their own health 27
Consumers are trying to control their weight through dieting regimes 27
The notion of an ideal body shape is encouraging people to go on weight-loss diets 27
In Asia Pacific, consumers are more likely to cut out fats from their diet 28
European consumers equate a healthy diet to one incorporating more fruit and vegetables 28
The five a day message is getting through 33
INSIGHT: Consumers are not willing to give up taste for health 34
Growth rates of diet alternatives are projected to grow faster than regular variants in Europe 34
Health claims are behind the fastest growing brands in the UK 36
The growth of indulgent products highlights the importance of taste 38
Health comes second to taste when selecting products for snacks 38
Consumer concern for health is creating shifts within product categories 39
Consumers are moving to adjacent categories that they perceive to be healthier 41
Obesity and overweight prevalence continue to rise despite consumer awareness and manufacturer response 42
INSIGHT: Regulation and government efforts to control the rise of obesity have had limited success to date 42
The current bans on advertising to children are ineffective 42
Banning vending machines in schools may not be the whole solution 44
Nutritional labeling is inconsistent across the globe and consumers check labels for different elements 45
Fat taxes have obtained limited support but could change market dynamics if introduced 46
ACTION POINTS 49
ACTION: Add healthy products to your range to minimize the risk exposure to obesity 49
Reducing fat, salt and sugar content on existing products can help rejuvenate growth in core businesses 50
Position food and drink offers as nutritionally beneficial 52
Develop products that can address multiple health concerns to really achieve differentiation 53
ACTION: Improve your existing portfolio by using portion control and labeling to help consumers make healthy choices 54
Consumers are dissatisfied with the lack of healthy options and with the level of nutritional information provided by restaurants 55
100 calorie initiatives are proving highly successful in some parts of the world 55
Use labeling as a means to signpost healthy or better nutritional choices for consumers 57
ACTION: Consider the opportunities that the regulations and revised guidelines provide 60
ACTION: Take advantage of growth in indulgent categories, but consider the social responsibility implications 60
Encouraging people to exercise or earn their indulgent moment could improve social responsibility scores 62
ACTION: Taste and price must be important elements of the product mix alongside health benefits 62
Consumer concern for their own health does not come at the cost of price, quality or convenience 62
APPENDIX 64
Definitions 64
Methodology 64
References 65
Ask the analyst 65
Datamonitor consulting 65
Disclaimer 65
List of Tables
Table 1: Number of overweight and obese adults (15+ years old) by country (millions), 2002-2012 13
Table 2: Percentage of overweight and obese adults (15+ years old) by country (% adult population), 2002-2012 14
Table 3: Number of overweight and obese children (0 to 14 years old) by country (millions), 2002-2012 16
Table 4: Percentage of overweight and obese children (0 to 14 years old) by country (% child population), 2002-2012 17
Table 5: On-the-move food and drink market value in Europe and the US (US$m), 2000-2010 26
Table 6: Changes made to food and drink consumption by EU consumers in 2005 (% respondents) 29
Table 7: European consumer attitudes to dietary changes (% respondents) , overall results, 20007 30
Table 8: European diet market as a percentage of segment, (% value) 2002-2012 34
Table 9: Selected categories, total market size Europe (US$m), 2002-2012 35
Table 10: Top 10 brands in 2005 and 2007, UK 37
Table 11: Turnover of the six largest companies most at risk from the obesity crisis 50
Table 12: Definitions 64
List of Figures
Figure 1: Comparison of the prevalence of overweight (BMI 25 to <30) and obese (BMI 30+) males and females across selected countries 15
Figure 2: Per capita daily calorie consumption in selected regions of the world, 1975-1995 19
Figure 3: Levels of physical activity in the US, 2005 21
Figure 4: Frequency of physical activity by country, 2005 23
Figure 5: Duration of physical activity by country, 2005 23
Figure 6: Active steps taken to eat healthily, by country, 2007 30
Figure 7: Attitudes to importance of reducing saturated fat intake across Europe and the US in 2007 31
Figure 8: Attitudes to importance of controlling calorie intake across Europe and the US in 2007 32
Figure 9: Attitudes to importance of reducing sugar intake across Europe and the US in 2007 32
Figure 10: Diet alternatives are growing across key food and beverage segments in Europe 35
Figure 11: NPD in the bread category have led to fast growth for UK bakers Hovis, Warburton and Kingsmill 36
Figure 12: Survey of Americans and Europeans shows that health influences the consideration of snack choice in around 50% of respondents 39
Figure 13: Percentage of consumers indulging in higher quality, more indulgent snacks in the evening 40
Figure 14: EU citizens believe parents and guardians have the most influence over what children eat 43
Figure 15: Using sunseed oil has helped Walkers rejuvenate sales in its core product lines 51
Figure 16: Mars Inc. has reformulated its core products by removing trans fats 52
Figure 17: Including nutritionally beneficial ingredients is becoming increasingly popular 53
Figure 18: Nutritionally beneficial products targeted at women's health could be replicated across many product categories 54
Figure 19: 100 calorie packs are increasing in popularity in the US and Canada 56
Figure 20: 100 calorie packs are evident across a range of categories from rice and desserts to snacks 57
Figure 21: The FSA Traffic Light Labeling System is intended to provide ``at a glance`` information on nutritional content of a product 58
Figure 22: The GDA system allows consumers to make personal choices based on their own needs 58
Figure 23: Signposting nutritionally beneficial products allows consumers to make like for like comparisons 59
Figure 24: Products positioned as indulgent are enjoying growth across categories and geographies 61
Figure 25: Innocent enjoyed their meteoric rise through offering products that are tasty, healthy and convenient 63