Next Generation Functional

Next Generation Functional Food and Drinks: Opportunities in Personalized Nutrition DMCM4650/Published 11/2008

© Datamonitor. This brief is a licensed product and is not to be photocopied Page 1

OVERVIEW

Catalyst

Personalization is an emerging trend whereby food and drink products are more closely aligned with consumers’ individual

nutritional requirements, lifestyle aspirations and taste preferences. It reflects a crossover between the health and

individualism mega-trends: the coming together of intensifying health concerns and a ‘just for me’ ethos driving a desire for

products, services, and experiences that cater to specific needs and identities.

Summary • Personalized nutrition is an emerging yet potentially influential trend as intensifying health concerns drive

interest in more sophisticated and effective forms of nutrition.

• Personalized nutrition overlaps with a number of other food and beverage trends and themes but is now evolving

with complex nutritional science focusing on genetics.

• Consumers are attracted by the prospect of custom solutions but the desire for personalized benefits is

secondary to most other aspects influencing dietary choices.

• Many consumers appear skeptical about personalized nutrition, especially nutrigenomics. Another potential

inhibitor is that the desire for personalized choices conflicts with the desire for choice simplification, a less

complicated lifestyle and value conscious purchasing.

• Manufacturers can capitalize by developing a broad range of functional food and beverage products offering

antidotes to the myriad health problems faced by consumers. Developing age, gender and occasion targeted

food and beverage solutions is also a key innovation platform. Datamonitor also encourages industry players to

be future focused and invest in the opportunities presented by developments in nutritional science such as

nutrigenomics.

NEW CONSUMER INSIGHT (NCI) SERIES

Next Generation Functional Food and Drinks: Opportunities in Personalized Nutrition Profiting by aligning food and drink products more closely with consumers’ individual nutritional requirements, aspirations and preferences

Reference Code: DMCM4650

Publication Date: November 2008

Table of Contents



TABLE OF CONTENTS

Overview 1 Catalyst 1 Summary 1

THE FUTURE DECODED 8 INTRODUCTION: Personalized nutrition is an emerging yet potentially influential trend 8 TREND: Intensifying health concerns are driving interest in more sophisticated and effective forms of nutrition9 TREND: Personalized nutrition overlaps with a number of other food and beverage trends and themes but is now evolving with complex nutritional science focusing on genetics 16 INSIGHT: Consumers are attracted by the prospect of custom solutions but the desire for personalized benefits is secondary to most other aspects influencing dietary choices 32 INSIGHT: Many consumers appear skeptical about personalized nutrition, especially nutrigenomics 39 INSIGHT: The desire for personalized choices conflicts with the desire for simplified choices, a less complicated lifestyle and value conscious purchasing 48

ACTION POINTS 54 ACTION: Develop a broad range of functional food and beverage products offering antidotes to the myriad health problems facing consumers 54 ACTION: Develop age, gender and occasion targeted food and beverage solutions 80 ACTION: Be future focused and invest in the opportunities presented by developments in nutritional science such as nutrigenomics 91

APPENDIX 94 Definitions 94 Methodology 94 Further reading and references 95 Ask the analyst 96 Datamonitor consulting 96 Disclaimer 96

Table of Contents



TABLE OF FIGURES

Figure 1: Personalized nutrition reflects a crossover between the health and individualism mega-trends 8

Figure 2: More than three quarters of consumers consider diet and nutrition to be an important factor in creating a feeling of wellbeing 10

Figure 3: Diet and nutrition is one of six dimensions associated with the broader notion of wellness 10

Figure 4: Health considerations have a significant amount of influence on food and beverage choices 12

Figure 5: Consumers demonstrate a high level of interest, at least attitudinally, towards label information 14

Figure 6: Intensifying health concerns lead to more considered choices governed by a heightened reliance on food labels which in turn is likely to fuel the demand for more personalized choices 15

Figure 7: Personalized nutrition encompasses four specific sub-trends and associated product benefits 17

Figure 8: Functional food and drinks are formulated to offer specific health and wellness benefits to targeted consumers and consumer needs, and are therefore central to personalized nutrition 19

Figure 9: A high proportion of consumers have no concern over gluten 20

Figure 10: Nutrigenomics is geared towards understanding the response of the body to diets and food factors through various ''omics'' technologies such as transcriptomics, proteomics, and metabolomics 24

Figure 11: Identity based consumption is driven by the importance that shoppers place on ‘brand attitude’ 29

Figure 12: Enjoying small indulgences to escape everyday pressures has remained a theme in global consumer behavior in 2008 30

Figure 13: Four key personal benefits as well as the additional ease of customizing have driven the trend toward more personalized consumer packaged goods 33

Figure 14: Consumers are attracted to the idea of using products and or services designed for specific needs 34

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Figure 15: When considering a wider set of food and beverage considerations, customization/personalization benefits are less important to global consumers 37

Figure 16: Though consumers consider products and or services designed for their specific needs to be important comparatively fewer respondents consider customization/personalization benefits to be an influential factor in their choice of food and beverage products 38

Figure 17: Consumers are unconvinced by the health and nutritional claims made by food and drink products 40

Figure 18: Skepticism surrounds food and beverages aimed at children in developed consumer societies 42

Figure 19: Many consumers express mixed feelings towards food and beverages that are customized to meet specific needs 43

Figure 20: Skepticism surrounds using genetic information to inform and direct food and beverage choices 45

Figure 21: The desire for personalized choices conflicts with the desire for simplified choices, a less complicated lifestyle and value conscious purchasing 48

Figure 22: A large proportion of consumers already feel there is too much choice when doing grocery shopping which means industry players must be careful to make consumers feel confused or overwhelmed by more food or beverage variants offering more targeted benefits 50

Figure 23: The idea of living a less complicated lifestyle resonates with consumer across the globe51

Figure 24: French, US and Brazilian consumers are the most price conscious food and beverage consumers 52

Figure 25: These consumer needs offer opportunities for targeted food and beverage solutions 55

Figure 26: Bone, joint and tooth strengthening food and beverages are all forms personalized nutrition through targeted functional products 57

Figure 27: Heart health products are prevalent across sectors and categories and range in claim specificity 60

Figure 28: Probiotics and prebiotics are being offered in tandem and across a broader range of product formats 62

Figure 29: Omega-3 DHA is typically the core ingredient for the proliferating lines of brain nourishing food and beverages 65

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Figure 30: Antioxidant rich ingredients and probiotics are being used to boost immunity health 68

Figure 31: These products demonstrate just some of the different formats, geographies and ingredients used in beauty food and beverages across the globe 70

Figure 32: Supplements targeted primarily or exclusively at beauty concerns are growing in number 71

Figure 33: Traditional cosmetic companies are increasingly investigating how food ingredients can be beneficial to the skin and hair 72

Figure 34: Targeting the desire for energy and vitality is being done with more intensity and sophistication 74

Figure 35: Mood foods reflect the growing array of products targeting emotional wellbeing 77

Figure 36: Many brands are delivering ‘multi-faceted health’ by developing product ranges with variants that cater to the differing health needs of consumers 79

Figure 37: Gender specific products are well placed to capitalize on the personalized nutrition trend 83

Figure 38: Parents are increasingly acting out their concerns in their roles as ‘gatekeepers’ of family grocery purchasing 85

Figure 39: Personalized nutrition will be particularly important for aging populations 87

Figure 40: Targeting lifestyle/interest groups and more specific occasions are additional routes to offering personalized nutrition 89

Figure 41: With ‘FoodFlex’, Safeway is demonstrating how retailers can also capitalize on shoppers’ desire for more personalized offerings 89

Figure 42: Developing and clearly signposting gluten and lactose free products will become an increasing feature of food and drink product development in the coming years 91

Figure 43: Nutrgenitics and genomics will drive the next generation of health and wellness food and beverages 93

Table of Contents



TABLE OF TABLES

Table 1: Consumer survey: the importance that individuals attach to diet and nutrition in creating a feeling of wellbeing or wellness, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 9

Table 2: Consumer survey: the influence of health on food and beverage product choices, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 11

Table 3: Consumer survey: the propensity to take active steps to eat more healthily more or less often, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 13

Table 4: Functional food and drink market value in Europe, the US and Asia Pacific ($ millions), by country, 2002–12 18

Table 5: Consumer survey: the importance that individuals attach to diet and nutrition in creating a feeling of wellbeing or wellness, in 15 countries across Europe, Asia Pacific, South America and the US, by country and gender, by country, 2008 21

Table 6: Consumer survey: the importance consumers attach to individuality and self-expression, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 27

Table 7: Consumer survey: the importance attached to brands which match their attitudes and outlook on life, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 29

Table 8: Consumer survey: the importance of using products and or services designed for specific needs, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 34

Table 9: Consumer survey: the perceived influence of customization or personalization benefits on food and beverage product choices, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 36

Table 10: Consumer survey: trust in health and nutritional claims made by food and drink manufacturers, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 40

Table 11: Consumer survey: trust in food and beverages aimed at children, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 41

Table 12: Consumer survey: the appeal of food and beverage products formulated with specific nutritional needs in mind, in 15 countries across Europe, Asia Pacific, South America and the US, by country 43

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Table 13: Consumer survey: the appeal of using information about genes to provide nutritional and or diet related advice, in 15 countries across Europe, Asia Pacific, South America and the US, by country 45

Table 14: Consumer survey: agreement with the statement, “there is too much choice when doing grocery shopping”, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 49

Table 15: Consumer survey: importance attached to living a less complicated lifestyle, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008 51

The Future Decoded



THE FUTURE DECODED

INTRODUCTION: Personalized nutrition is an emerging yet potentially influential trend

Personalization is an emerging trend whereby food and drink products are more closely aligned with consumers’ individual

nutritional requirements, lifestyle aspirations and taste preferences. It reflects a crossover between the health and

individualism mega-trends: the coming together of intensifying health concerns and a ‘just for me’ ethos driving a desire for

products, services, and experiences that cater to specific needs and identities. Indeed, “‘personalized diets’ will have

replaced 20th century mass consumerism by 2030,” according to speakers at the Perspectives for Food conference, held by

the European Commission's Directorate-General for Research in Brussels in April 2007. There is a growing belief that diets

cannot be right for everyone. As a result, personalization, whether based on lifestyle, ethnicity, blood type or genetics, will

become an important component of dietary regimes going forward.

If successful branding is developing and marketing a product which the consumer perceives as possessing unique added

values which match their needs more closely, then personalized nutrition can also be viewed as an important component of

future focused food and beverage branding more generally. This report focuses on the differing components of

personalized nutrition, ranging from the choice of products to express self identity through to science-led nutritional

developments such as nutrigenomics. Before examining the specifics, Figure 1 below serves to highlight the key issues

surrounding developments in personalized nutrition. The remainder of this report explores these issues in detail.

Figure 1: Personalized nutrition reflects a crossover between the health and individualism mega-trends

HEALTH & WELLBEING

INDUSTRY PUSH

DRIVERS INHIBITORSECONOMIC DOWNTURN

LACK OF TRUST & AWARENESS

INDIVIDUALISM/NEED SPECIFICITY

Personalized nutrition reflects a

cross-over between the health and individualism

megatrends. These powerful drivers will

generate an intensifying focus on how nutritional benefits can be

tailored to meet the individual needs of

consumers

However, the longer-term

commercialization of personalized nutrition will be dependant on overcoming a

number of inhibitors

• Intensifying health concerns and a better understanding understand of the relationship between food and health

• Aging populations and escalating concerns about diet related illnesses related to aging

• A rejection of the one size fits all" approach to nutrition; dieters know from experience that not every diet works for everybody

• Increased self-responsibility for one’s health and wellness

• The importance of the self and the desire for products that protect/reinforce self identity

• The recognition that science has a major role to play in the fight against many of the diseases prevalent in society

• The growth of functional food and drinks which are scientifically formulated to address consumers’ individual nutritional needs

• Producing foods based on an individual’s genetic make up is at the cutting edge of current nutritional research

• Changing consumer priorities; economic wellbeing takes precedence over dietary wellbeing

• Personalized solutions are typically more expensive and are thus potentially less appealing to consumers who are trying to maximize their discretionary incomes

• Nutrigenomic science – the latest cutting edge approach to facilitating personalized nutrition – is still in its infancy

• So far, evidence on the interaction of nutrients, genetic variations and health implications is uncertain and controversial

• There is also evidence to suggest that consumer opinion is polarized. Some find the science-led approach to nutrition to be at odds with ‘normal’ food culture

• Consumer preference for a simpler choice and the desire for a less complication lifestyle moreover

A DESIRE FOR SIMPLICITY

Source: Datamonitor analysis D A T A M O N I T O R

The Future Decoded



TREND: Intensifying health concerns are driving interest in more sophisticated and effective forms of nutrition

The global Health mega-trend (see New Developments in Global Consumer Trends, DMCM2468) is one of the most

influential drivers of consumer behavior worldwide, particularly regarding food and beverage choices. The trend

encompasses several aspects of consumers’ lives and good health is now often linked with steps taken to achieve a more

general sense of wellbeing/wellness. Consequently, many consumers have adopted proactive and holistic approaches to

their own health, including dietary changes, greater attention to ‘appearance management’ and aspiring towards a better

work-life balance (see Consumer Lifestyles, Priorities And Work-Life Balance, DMCM4616, for further details). The differing

dimensions of wellness are shown in Figure 3 below.

The increased attention being given towards diet and nutrition, and its perceived position as a core component of wellbeing,

was reflected by the results of a recent Datamonitor survey. More than three quarters of respondents across 15 countries

stated that diet and nutrition was ‘important’ or ‘very important’ in creating a feeling of wellbeing or wellness. Only in

Germany, Sweden and Russia did more than 10% or respondents state that diet and nutrition was not important in creating

a feeling of wellbeing or wellness. Given that a sense of wellbeing relates to both emotional and physical health, the results

presented in Table 1 and Figure 2 below highlight just how emotionally attached consumers have become to the

relationship between diet and general health.

Table 1: Consumer survey: the importance that individuals attach to diet and nutrition in creating a feeling

of wellbeing or wellness, in 15 countries across Europe, Asia Pacific, South America and the US,

by country, 2008

QUESTION: How important do you consider to be in creating a feeling of wellbeing or wellness: Diet and nutrition

France Germany Italy Neth. Spain Sweden UK US

Very important 21.1% 9.3% 25.4% 19.8% 27.9% 11.6% 27.9% 30.5%

Important 52.1% 38.9% 50.1% 60.4% 52.1% 43.2% 52.6% 49.2%

Total important 73.2% 48.2% 75.5% 80.2% 80.0% 54.8% 80.5% 79.7%

Neither important nor unimportant 21.7% 38.3% 21.5% 17.8% 18.0% 34.1% 16.6% 16.2%

Unimportant 3.7% 10.5% 2.4% 1.5% 1.6% 9.2% 2.1% 2.6%

Very unimportant 1.5% 2.9% 0.6% 0.5% 0.4% 1.9% 0.7% 1.5%

Total unimportant 5.2% 13.4% 3.0% 2.0% 2.0% 11.1% 2.8% 4.1%

Australia Brazil China India Japan Korea Russia Average

Very important 36.0% 36.7% 48.7% 50.4% 32.0% 19.8% 12.9% 27.6%

Important 48.4% 43.7% 45.1% 34.8% 55.5% 52.0% 42.1% 48.0%

Total important 84.4% 80.4% 93.8% 85.2% 87.5% 71.8% 55.0% 75.6%


Unimportant 2.0% 3.0% 0.6% 2.7% 1.3% 3.3% 18.7% 4.2%



Source: Datamonitor Consumer survey, August 2008 D A T A M O N I T O R

The Future Decoded



Figure 2: More than three quarters of consumers consider diet and nutrition to be an important factor in

creating a feeling of wellbeing


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Source: Datamonitor Consumer Survey, August 2008 D A T A M O N I T O R

Figure 3: Diet and nutrition is one of six dimensions associated with the broader notion of wellness

KEY COMPONENTS/BEHAVIOURSWELLNESS DIMENSION

• Adopting structured exercise routines• Keeping active generally

Physical performance

• Enjoying frequent interactions with friends and family• Contributing to one's environment and community

Relationship satisfaction

• Embracing foods and beverages that promote good health• Embracing better-for-you food and beverage choices

Diet & nutritional wellbeing

• Spending time on personal appearance• Ingesting products to benefit complexion and body shape

Physical Appearance/Body Shape satisfaction

• Taking steps to cope with and/or reduce stress• Feeling positive and enthusiastic about oneself and life • The ability to manage one’s feelings positively• Sustainable lifestyles/ ethical consumerism

Emotional/spiritual fulfilment

• Achieving a desirable work-life balance• Choosing a career which is consistent with personal values

Occupational wellbeing

KEY COMPONENTS/BEHAVIOURSWELLNESS DIMENSION

• Adopting structured exercise routines• Keeping active generally

Physical performance

• Enjoying frequent interactions with friends and family• Contributing to one's environment and community

Relationship satisfaction

• Embracing foods and beverages that promote good health• Embracing better-for-you food and beverage choices

Diet & nutritional wellbeing

• Spending time on personal appearance• Ingesting products to benefit complexion and body shape

Physical Appearance/Body Shape satisfaction

• Taking steps to cope with and/or reduce stress• Feeling positive and enthusiastic about oneself and life • The ability to manage one’s feelings positively• Sustainable lifestyles/ ethical consumerism

Emotional/spiritual fulfilment

• Achieving a desirable work-life balance• Choosing a career which is consistent with personal values

Occupational wellbeing


The Future Decoded



Many consumers are demonstrating high levels of concern about their dietary choices

Moving away from the more holistic concept of wellness and focusing more on the specific influence of health

considerations when making food and beverage choices also reveals just how important diet and nutrition is for global

consumers. Across the 15 countries surveyed by Datamonitor in August 2008, well over half (58%) of global respondents

stated that health had a ‘high’ or ‘very high' amount of influence on their choice of food and beverage products. This

compares to just 12% of respondents overall who stated that health had a ‘low’ or ‘very low' amount of influence on such

purchases (see Table 2 and Figure 4 below for details).

Within Europe, Spanish and Italian respondents indicated that health considerations had the highest amount of influence on

the food and beverage products that they buy. Respondents from both countries were also more likely to state that health

considerations had a ‘very high amount of influence’ on product choice, which further reiterates the importance that

Spanish and Italian respondents place on health.

Elsewhere, respondents in the emerging markets of Brazil (76%), India (80%), China (78%), Russia (72%) and, to a lesser

extent, Korea (60%) all place more importance on health than respondents overall. Australian and Japanese respondents

were more in line with Europe and the US.

Table 2: Consumer survey: the influence of health on food and beverage product choices, in 15 countries

across Europe, Asia Pacific, South America and the US, by country, 2008

QUESTION: Please tell us how much influence the following factors have in your choice of food and beverage products: Health


Very high amount of influence 20.7% 13.7% 27.0% 10.1% 26.1% 15.4% 14.8% 20.5%

High amount of influence 36.0% 36.8% 39.0% 33.2% 41.6% 29.3% 28.5% 30.8%

Total high amount of influence 56.7% 50.5% 66.0% 43.3% 67.7% 44.7% 43.3% 51.3%

Medium amount of influence 30.0% 38.6% 29.2% 44.4% 25.7% 42.3% 42.0% 36.7%

Low amount of influence 9.7% 6.8% 3.7% 8.7% 4.9% 10.6% 9.3% 8.5%

Very low amount of influence 3.6% 4.0% 1.1% 3.6% 1.6% 2.4% 5.5% 3.6%

Total low amount of influence 13.3% 10.8% 4.8% 12.3% 6.5% 13.0% 14.8% 12.1%










The Future Decoded



Figure 4: Health considerations have a significant amount of influence on food and beverage choices

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High or very high amount of influence Medium amount of influence Low or very low amount of influence

QUESTION: Please tell us how much influence the following factors have in your choice of food and beverage products: Health

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Consumers continue to make concerted efforts to improve their diet

Datamonitor fieldwork over the past three years has identified an unquestionable shift towards healthy eating behaviors.

Consumers believe that diet is a critical component of health and wellness and the strength of that mentality seems to be

increasing.

With the exception of Germany, the proportion of respondents who told Datamonitor that they had taken active steps to eat

more healthily in 2008 significantly outnumbered those who stated they had done less (see Table 3 below). This explains

why many of the fastest growing food and beverage products categories and product/brands are often heavily aligned with

the Health mega-trend.

The Future Decoded



Table 3: Consumer survey: the propensity to take active steps to eat more healthily more or less often, in 15

countries across Europe, Asia Pacific, South America and the US, by country, 2008

Answers to the question: In the past SIX MONTHS, please indicate to what extent you have done the following more or less frequently? Taken active steps to eat more healthily

France Germany Netherlands Italy Spain Sweden UK US

Total More 41.9% 28.3% 32.8% 48.7% 44.1% 35.8% 48.0% 51.9%

No change 53.7% 47.7% 61.4% 48.3% 51.4% 60.2% 48.2% 42.3%

Total Less 4.4% 24.0% 5.7% 2.9% 4.5% 4.0% 3.9% 5.6%

Australia Brazil China India Japan Korea Russia Total

Total More 58.6% 72.0% 71.0% 80.4% 25.7% 51.1% 51.4% 49.4%

No change 38.8% 24.2% 27.2% 15.9% 70.6% 41.9% 37.5% 44.3%

Total Less 2.6% 3.8% 1.7% 3.6% 3.8% 7.0% 11.0% 6.3%

NB: Total More is an aggregation of respondents who stated ‘significantly more’ or ‘more’. Total Less is an aggregation of respondents who stated ‘significantly less’ or ‘less’


There have been a number of other national studies from authoritative sources in the last 12 months or so that have also

highlighted the continuing/growing importance which consumers place on improving their diet:

• The International Food and Information Council (IFIC) Foundation 2008 Food and Health survey found that more

than two thirds (67%) of Americans claimed to be making an effort to improve the healthfulness of their diet. This

percentage was consistent with the equivalent study in 2007, but was a significant increase from 2006 when

57% of respondents said the same. Those more likely to have made a change to their diet included: women;

those who consider themselves to have a healthful diet; those whose body mass index (BMI) is in the obese

range or who perceive themselves to be overweight or obese; those who are concerned with their weight; those

who are trying to lose or maintain their weight; and those who are physically active four or more days a week.

Among Americans who reported making a change to their diet, the principle reasons they did so were 1) to

improve overall well-being (69%), 2) to lose weight (69%), and 3) to improve physical health (64%). Elsewhere,

results released from the 2008 Consumer Attitudes about Nutrition survey (the 15th annual research study

sponsored by the United Soybean Board revealed that 74% of consumers changed eating habits in the past

three to five years due to health concerns.

• The 59% of Australian respondents who told Datamonitor that they had taken active steps to eat more healthily

in the six months prior to August 2008 (see Table 3 above) is broadly consistent with the 56% of Australians who

are watching their weight according to the Food Standards Australia/New Zealand Consumer Attitudes study

(January, 2008).

• Delloite (2007) conducted a survey of 77 senior executives of leading food and beverage businesses in the UK.

Health and wellbeing (77%) was overwhelmingly considered to be the most important trend shaping the industry,

significantly surpassing convenience (42%) and higher quality (40%).

The Future Decoded



The growing interest in food labeling highlights the importance of diet and nutrition to consumers and that shoppers are looking for nutritional information that is personally important to them

Consumers across the globe take an increasing interest in finding out what goes into their food and drinks. This interest is

often facilitated by product label usage, with food labels providing nutrition information to help consumers make food

choices to achieve a healthful diet. Today, consumers know more about nutrition than ever before, and they are using that

information to choose foods and beverages that meet their health/dietary goals. There are numerous studies that pinpoint

the changing relationship that consumers have with product packaging, such as a particularly growing reliance on labels to

make more informed choices based on an ever broadening range of health concerns.

For example, Grunert and Wills (in a paper published in the Journal of Public Health, 2007) reviewed pan-European

research on consumers’ response to nutrition information on food labels (which included a total of 58 studies between 2003

and 2006). The authors concluded that “there is widespread interest for nutrition information on food packages.” More

recently, in August 2008, a Datamonitor consumer survey once again highlighted the interest which shoppers have in label

information (for a more extensive review of food labeling issues please refer to The Future of Food Labeling: Winning Trust

and Maximizing In-Store Appeal, DMCM4640). The key implication here is that interest in food labeling reflects the desire to

know more about the specific nutritional credentials of products and how such credentials fit with personal dietary goals. It

highlights how labels need to communicate that the product is right for them.

Figure 5: Consumers demonstrate a high level of interest, at least attitudinally, towards label information

QUESTION: How strongly do you agree or disagree with this statement? I’m very interested in food label information

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The Future Decoded



Figure 6: Intensifying health concerns lead to more considered choices governed by a heightened reliance

on food labels which in turn is likely to fuel the demand for more personalized choices

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QUESTION: In the past SIX MONTHS, I have used nutritional information on product packaging to help make food and drinks choices…


Key takeouts and implications: as general health concerns engulf the mass population, dietary concerns will evolve to become more specific

• Health continues to have a growing impact on consumer lifestyles and dietary choices. As the trend

evolves it is natural that concerns and behavior become more sophisticated. This is why new dietary

and nutritional trends are emerging, such as personalized nutrition (and related sub-trends which are

discussed in the next section).

• Food and drink in particular is becoming a more important way of living more healthily. This creates

significant opportunities for functional food and beverage manufacturers as consumers are now

demonstrating a real desire and willingness to understand how they can eat more nutritiously or

compensate for the lifestyle habits that contribute to poor dietary habits. Accordingly, companies are

looking increasingly to market food and drinks on a health platform, and the trend is expected to

continue to develop in the foreseeable future. Enhanced nutritional benefits are emerging as the main

means of differentiating food and beverage brands. Health is a major NPD battleground.

• The growing reliance on food labeling information is symptomatic of both general and specific health

concerns. Regarding the latter, consumers are increasingly relying on label information to make

informed decisions about the nutritional profile of food and beverage products that matter most to them.

This represents a potentially important development for industry players looking to offer more

personalized nutritional solutions. This is because shoppers are more likely to take the time out to really

understand the benefits associated with such product variants.

The Future Decoded



• Given the growth of aging populations, escalating levels of obesity and associated lifestyle illnesses,

the personalization trend offers manufacturers a significant growth opportunity to market targeted food

and drinks products to a wide range of consumers. In recognition of this, it is likely that manufacturers

will begin to meet the growing demand for personalized food and drinks products which offer more

targeted health benefits.

TREND: Personalized nutrition overlaps with a number of other food and beverage trends and themes but is now evolving with complex nutritional science focusing on genetics

The following analysis explores the nutritional and science based developments associated with personalized nutrition. It

highlights that food and nutrition science has moved from identifying and correcting nutritional deficiencies to the

development of products that promote optimal health for the individual and reduce the risk of disease. The understanding of

human dietary requirements is aided by developments in many scientific disciplines, including food science, nutrition,

chemistry, biochemistry, physiology, and genetics. In particular, new research in proteomics, nutrigenomics, metabolomics,

and other disciplines look set to further identify the biological basis by which food components promote health and

wellness.

Personalized nutrition is a relatively broad concept and it is not focused solely on health and nutrition

Figure 7 below highlights that personalized nutrition encompasses four specific sub-trends and associated product benefits:

• lifestyle supporting/expressive food and beverage products;

• occasion, demographic and dietary specificity;

• functional food and drinks;

• nutrigenomics.

The Future Decoded



Figure 7: Personalized nutrition encompasses four specific sub-trends and associated product benefits

Degree of personalization and manufacturer investment

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LIFESTYLE/ EXPRESSIVE PRODUCTS

FUNCTIONAL FOOD & DRINKS

NUTRIGENOMICS

• Consumers are now seeking to optimize their performance and reduce the risk, or delay the onset of diseases with functional food and drink products

• Includes: bone health, digestive health, heart health, cognitive health, physical health and emotional health

• Progressive nutritional science suggests diets can be customized according to genetic make-up.

• This science is expected to fuel the growth of the nutritional supplement and functional food industries

OCCASION & DEMOGRAPHIC SPECIFICITY• Targeted food and beverage solutions catering to

specific occasion, age group and gender needs is an ongoing theme of innovation in FMCGs

• Self-definition is partly reliant on consumption and the symbolic meaning of brands

• Consumers prefer products and brands with symbolic meanings consistent with their self-concept

• Self indulgence is also loosely aligned with a personal approach to eating


Growing consumption of functional food and drinks reflects the demand for more personalized, targeted dietary solutions

Consumers have moved beyond consuming food simply to maintain everyday health. They are now seeking to optimize

their performance and reduce the risk, or delay the onset of diseases with functional food and drink products. Globally,

there is an ever increasing amount of scientific evidence on the positive contribution that a balanced diet, rich in nutrients—

particularly micronutrients and bioactive compounds—can have on a consumer's overall wellbeing. Widespread interest in

select foods that promote health has resulted in the use of the term 'functional foods'.

The definition of functional food and beverages is a contentious issue, especially as regulatory agencies do not recognize

'functional food' as a nutritional entity. Even in Japan, where functional foods originated, the term was not adopted as it was

deemed that all foods are functional in that they provide the energy and nutrients necessary for survival. A lack of

legislation means that there are several different definitions of functional foods, and this lack of consistency explains why

market valuations on the size of the industry can vary dramatically between sources.

Datamonitor defines functional foods and drinks as “everyday packaged food and beverage products that contain specific

physiologically active components that provide health and wellbeing benefits beyond basic nutritional functions (the term

‘nutraceuticals’ is interchangeable with the term ‘functional food and drinks’).” Functional products contribute a higher

nutritional value than standard products in that they deliver targeted health benefits. For example, products that provide a

natural bioactive substance may be enhanced to increase the level present in the food (e.g. eggs with increased levels of

The Future Decoded



omega-3 fatty acids or tomatoes with enhanced lycopene levels). Products can also be fortified to provide consumers with

a broader selection of food types that contain components with a particular health benefit (e.g. calcium-fortified orange

juice). Functional products can be further defined by the type of benefits provided (e.g. gut and heart health).

Once representing a niche market in Japan, functional foods are now becoming a well-established concept throughout

Western Europe and the US, as consumers become more proactive about improving their health through their dietary

choices. The growing acceptance of functional food and drinks is reflected by the reality that sales of functional products

are rising across all food and drink categories in the US, Europe and Asia alike, and growth rates continue to typically

outperform growth in the food and drink categories overall.

Table 4: Functional food and drink market value in Europe, the US and Asia Pacific ($ millions), by country,

2002–12

$ m 2002 2007 2012 CAGR 2002–07 CAGR 2007–12

France 637.2 807.9 980.4 4.9% 3.9%

Germany 1,497.9 1,982.5 2,524.8 5.8% 5.0%

Italy 768.2 1,138.1 1,525.2 8.2% 6.0%

Netherlands 230.5 285.9 346.2 4.4% 3.9%

Spain 449.3 641.1 813.7 7.4% 4.9%

Sweden 157.5 250.9 317.7 9.8% 4.8%

UK 1,667.9 2,103.3 2,533.0 4.7% 3.8%

US 18,104.1 27,230.5 36,653.0 8.5% 6.1%

Australia 516.0 657.7 840.8 5.0% 5.0%

China 9,593.5 12,491.5 16,162.2 5.4% 5.3%

Hong Kong 1,217.9 1,720.2 2,332.9 7.1% 6.3%

India 1,511.6 1,940.5 2,408.9 5.1% 4.4%

Japan 12,094.5 16,377.5 21,808.8 6.3% 5.9%

New Zealand 108.6 132.6 170.0 4.1% 5.1%

South Korea 1,647.2 2,581.0 3,365.8 9.4% 5.5%

*Includes Indonesia, Malaysia, Pakistan, Philippines, Singapore, Taiwan, Thailand and Vietnam

Source: Datamonitor analysis 2007 D A T A M O N I T O R

Figure 8 below highlights that there are myriad functional driven product trends, most of which are aligned with the differing

dimensions of wellness presented in Figure 3 previously. The synopsis presented below highlights that consumers are

looking for personalized functional food and drink products with a formulation that has been scientifically developed to

benefit a broad range of specific health problems or concerns. The personalization trend in nutritional needs, served via the

tailored solutions available in the form of functional food and drinks, offers consumers the benefits of self-managing these

health problems. (Datamonitor is currently in the process of producing detailed report briefings focusing on the various

functional benefits outlined in Figure 8).

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Figure 8: Functional food and drinks are formulated to offer specific health and wellness benefits to targeted

consumers and consumer needs, and are therefore central to personalized nutrition ‘S

oft h

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DIGESTIVE HEALTH

HEART HEALTH

PHYSICAL HEALTH

BEAUTY/ APPEARANCE DRIVEN HEALTH

EMOTIONAL/RELAXATIONALHEALTH

BONE & JOINT HEALTH• SYNOPSIS: refers to developmental bone health in childhood as well as

long term health problems such as osteoporosis and arthritis• KEY PRODUCT TRENDS: calcium richness; vitamin D fortification

• SYNOPSIS: consumers are increasingly aware that digestive health can have a direct effect on general feelings of wellness, including skin health, immunity levels and energy levels

• KEY PRODUCT TRENDS: probiotics and prebiotics, high fiber/whole foods

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• SYNOPSIS: consumers are increasingly educated about heart health issues, including blood cholesterol levels, blood pressure, heart strength, and circulation and the ways in which dietary patterns affect heart health

• KEY PRODUCT TRENDS: high fiber/whole foods; cholesterol reducers; blood pressure reducers e.g. plant sterols and soy proteins

IMMUNITY HEALTH

• SYNOPSIS: this has a strong crossover with digestive health since digestive health, and the products promoting it, is heavily linked with defence

• KEY PRODUCT TRENDS: probiotics and prebiotics; antioxidant rich; vitamin & mineral fortification

• SYNOPSIS: psychological research has shown that self-esteem, popularity and happiness is more heavily tied with appearance than anything else. So, ‘feeling good’ in a physical health sense is strongly related to ‘looking good’

• KEY PRODUCT TRENDS: ‘nutricosmetics’ in the form of beauty food and beverages and oral beauty supplements

• SYNOPSIS: involves feeling physically good, especially in terms of energy/vitality. Can involve an artificial energy boost or more sustained natural energy boost. The trend/need state has links with natural foods, de-tox diets and cleansing the mind and the body

• KEY PRODUCT TRENDS: all forms of energy and vitality boosting products

• SYNOPSIS: researchers and consumers alike are beginning to understand the powerful links between nutrition, mood and mental health. These products are aimed at helping people with hectic, stressful lifestyles

• KEY PRODUCT TRENDS: mood foods – products formulated with relaxation ingredients such as GABA and botanical extracts and flavorings

COGNITIVE HEALTH

• SYNOPSIS: food and drink products can improve brain function, memory and alertness. These "cognitive boosters" or "smart foods" are edibles fortified with amino acids, vitamins and proteins that stimulate brain function

• KEY PRODUCT TRENDS: Omega-3 fortification


Usage occasion and demographic specificity, and catering to specific dietary requirements, are also important platforms for personalized nutrition

As Figure 7 previously highlighted, personalized nutrition also involves tailoring product formulations according to the

specific nutritional and sensory preferences of consumer groups and consumer occasions. The following analysis explores

this is in more detail:

• A number of consumers have specific dietary requirements, even if some are hyper-sensitive about this

– the UK’s Food Standards Agency Consumer Attitudes report (FSA, 2008) asked whether respondents had any

specific dietary requirements using a prompted list. A substantial proportion of the UK sample (40%, taking all

the categories together) claimed they avoided certain foods for some reason. The largest single group did so for

medical reasons (15%), followed by those on a diet to lose weight (13%). The respondents citing medical

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reasons were most likely referring to food allergens and intolerances. Statistics from medical professions

indicate that consumers are hyper-sensitive about concerns related to allergens and intolerances. Surveys

typically show that about one third of all adults believe they have food allergies. However, true food allergies are

estimated to affect less than 2% of the population. In 2004, the FDA stated that only 2% of adults and a

maximum of 8% of children have true food allergies in the US, while the Food Allergy & Anaphylaxis Network

(FAAN) puts this number at 11 million (3.7% of the population). The European Federation of Allergy and Airways

Diseases Patients' Associations has given similar figures in Europe. Though estimates vary widely for food

intolerance, the FDA estimates that approximately 28% of US consumers suffer from some form of the condition.

Overall, consumers suffering allergies or intolerances are therefore making careful choices in order to avoid

those ingredients in order to protect their health. They choose to personalize their diet and avoid products which

they believe themselves to be allergic or intolerant to. It is thought that the great majority of food allergies

(around 90%) are caused by reactions to one or more of eight foods: milk, soy, eggs, wheat (gluten), peanuts,

tree nuts, fish and shellfish. However, despite the hype about food allergens, it is also importance to recognize

that the majority of consumers may pay little attention to attributes such as gluten. Datamonitor fieldwork in 2008

(see Figure 9 below) highlights that considerably more consumers place a ‘low amount of attention’ towards

gluten content, especially when compared with other macronutrients such as fat and sugar.

Figure 9: A high proportion of consumers have no concern over gluten

-40%

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QUESTION: On a day-to-day basis, how much attention do you give towards the following factors relating to food and beverage products? Please record one answer on the rating scale


• Gender customization is an increasingly important route to satisfying specific consumer needs –

personal care innovation has long been targeting the specific gender-derived health and beauty needs of

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consumers. Indeed, the needs of males and females are relatively distinct, and food and beverage marketers

are beginning to recognize this with a raft of upcoming products which are gender specific both through

formulation and positioning. In particular, products with a strong nutritional focus which are targeted towards

females have been an important component of innovation. The additional emotional attachment that female

shoppers have towards healthy eating has undoubtedly influenced this tendency. Datamonitor’s consumer

survey found that in all 15 countries surveyed, females were more likely to consider diet and nutrition to be an

‘important’ or ‘very important’ factor in creating a feeling of wellbeing or wellness. In 2007, the USDA launched a

renewed dietary guidance device, the 'MyPyramid website for moms, specifically geared for pregnant and

breastfeeding mothers (at MyPyramid.gov). Given the unique needs of women during those times in their lives,

the site offers individualized nutrition guidance consistent with the 2005 Dietary Guidelines for Americans. The

site asks pregnant or breastfeeding women questions such as their age, height, pre-pregnancy weight and

physical activity level before providing a personalized MyPyramid plan.

Table 5: Consumer survey: the importance that individuals attach to diet and nutrition in creating a feeling of

wellbeing or wellness, in 15 countries across Europe, Asia Pacific, South America and the US, by

country and gender, by country, 2008



Females

Very important 26.8% 12.5% 28.6% 23.5% 32.4% 12.4% 34.1% 34.1%

Important 54.1% 41.3% 52.4% 61.2% 54.2% 47.7% 53.4% 50.3%

Total important 80.9% 53.8% 81.0% 84.7% 86.6% 60.1% 87.5% 84.5%

Male

Very important 15.3% 6.2% 22.3% 16.3% 23.4% 10.7% 21.4% 26.8%

Important 50.1% 36.5% 47.8% 59.7% 50.0% 38.7% 51.8% 47.9%

Total important 65.4% 42.7% 70.1% 76.0% 73.4% 49.4% 73.2% 74.7%


Females

Very important 41.9% 40.1% 56.5% 54.9% 40.1% 24.4% 16.5% 32.1%

Important 45.3% 42.3% 39.6% 36.0% 52.2% 55.9% 43.7% 48.5%

Total important 87.3% 82.4% 96.1% 90.9% 92.3% 80.4% 60.2% 80.6%

Male

Very important 30.3% 33.3% 42.0% 46.2% 23.8% 15.2% 8.5% 23.1%

Important 51.5% 45.1% 49.8% 33.7% 58.9% 48.2% 40.2% 47.4%

Total important 81.8% 78.4% 91.8% 79.9% 82.6% 63.4% 48.7% 70.5%


• Age customization reflects the more overt formulation and positioning of products to meet the needs of

specific ages – the marketing community is beginning to recognize the fundamental demographic shift which is

occurring via aging populations. Advances in ‘personalized nutrition’ mean that there is considerable potential to

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develop more tailored solutions to help consumers overcome age related ailments and nutritional deficiencies. At

the other end of the scale, there is currently a huge focus on children's nutrition, in light of escalating childhood

obesity. As a result, age formulated products are proving to be a prominent feature of new product development

plans, with particular focus on the two extremes of the age spectrum. For instance, as children's nutrition

emerges as a major theme in marketing, manufacturers are actively reformulating products to help parents fight

childhood obesity. Simultaneously, aging populations have been a key target for more personalized solutions,

particularly functional food and drinks.

• Occasion specific products are being used as a way of helping consumers to maximize enjoyment while

creating a ‘just for the moment’ positioning – there are a number of interesting concepts that reinforce the

idea that a product is to be consumed during a specific occasion. While this is not an entirely new marketing

approach, it is evident that manufacturers and retailers have been embracing this approach across a broader

range of categories. Datamonitor’s report, On-Trend’ Innovation & Marketing Concepts: The Individualism Mega-

Trend(DMCM4627) highlighted that product categories which are less associated with food or beverages are

now seeking to cross-merchandize by reinforcing the association, and this is being done with ever increasing

detail and sophistication. In addition, food and beverage marketers are targeting more niche and specific

occasions: Awake Good Morning Energy Drink in the US, for example, is touted as "the only energy juice

specially formulated for morning consumption.” Niche vending concepts are likely to emerge to satisfy unmet

needs for foods hard to come by when away from home. In the US, Kosher Vending Industries (KVI) introduced

Hot Nosh 24/6, “the first certified kosher on-demand hot food available through vending machines.” The concept

was spawned when its co-founders identified the challenges that kosher travelers face when visiting locations

that have no available kosher hot food.

Consumers are empowered by additional choice and the new possibilities to adjust and adapt the taste/flavor benefits

Empowerment is an important word associated with individualistic behaviors. Consumers want more control, both in the

way that they use brands (which can be referred to as ‘adaptive customization’) and in how brands are created in the first

place. In particular, personalization in tastes and flavors, whereby a consumer can adapt flavors to their own personal

tastes, is an emerging trend.

• Programmable and adjustable packaging now allows food, beverage and even tobacco consumers to

customize efficacy and taste benefits – food and beverage manufacturers are offering more impressive

personalized benefits through packaging that offer a form of taste/flavor customization. For example, Ipifini's

Programmable Liquid Container technology employs buttons on the container's surface that release additives

(flavors, colors, fragrances) into the liquid. Additive buttons allow for the consumer to choose variations of the

liquid in the container at the point of consumption. For example, a programmable cola bottle with buttons for

lemon, lime, vanilla, and cherry flavors, as well as a caffeine button, allows for thirty-two potential choices of

soda. Similarly, IntelligentWater products are offered in a plastic 'genie' bottle, with a patented ‘TwistRelease’

cap, which dispenses the concentrated vitamin mixture into the pure spring water. Interestingly, the varieties are

also user specific, including Mother&Baby (with folic acid for expectant mothers), Mature&Wise (for individuals

over 50), Body&Beauty (for physically active people) and Spirit&Mind (for mental concentration). Elsewhere,

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Tetley's Twistea Tea offers taste customization benefits via the innovative packaging format. It features a Tetley

teabag locked into a plastic cup to which the consumer simply adds boiling water, twisting the lid to achieve the

required strength of flavor. The teabag remains inside the unit and does not need to be disposed of separately.

• ‘Taste customized vending’ is an emerging concept in offering convenient, yet personalized food and

beverages – a UK company has developed a system that allows soft drinks to be packed in situ within vending

machines. Branded plastic pouches, from 250ml to 500ml, are stored on a roll in the Pouchlink system, created

by Waterwerkz, before being separated and filled using just-in-time flash chilling technology at the point of sale.

Machines can hold up to 2,000 interlinked resealable, spouted pouches of varying sizes, which are then filled on

demand using filtered main water and flavored syrups. WaterWerkz is launching its own brand of juice-based

drinks, under the brand name Froobee, which it has designed to meet the new health standards of UK schools.

Overall, Datamonitor believes there is a big opportunity in the vending market as people look for healthy, on-the-

go refreshments in convenient formats. Offering customers the novelty of creating their own distinct mixes is a

possible reflection of the future of vending.

Nutrigenomics facilitates dietary customization according to an individual’s genetic make-up

Until relatively recently, nutrition studies often assumed that all individuals have average dietary requirements. However,

nutritional science advancements have led to researchers recognizing how different mindsets, genes and genetics all play

a role in the types of food that are most effective for different people in the areas of weight management, nutrition and

general health. In particular, nutrigenomics explores how genetic variation and ‘epigenetic events’ alter individual

requirements for, and responses to, nutrients. There are two aspects to this:

• how dietary patterns affects the genome;

• how genetics determine individual nutritional requirements to prevent diseases.

The US-based Institute of Food Technologists defines nutrigenomics as the “the interaction of dietary components that are

nutritive (vitamins, minerals, fatty acids), bioactive (phytochemicals), or metabolites of food components (retinoic acid,

eicosanoids) with genes to result in gene expression.” Essentially, nutrigenomics is geared towards understanding the

response of the body to diets and food factors through various ''omics'' technologies such as transcriptomics, proteomics,

and metabolomics (see Figure 10 below for synopsis). This knowledge has led to a growing interest in the commercial

opportunity for innovative nutritional products that influence gene expression:

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"When we look toward the future, we're no longer thinking of food as just a source of calories, but rather as a complex mix

of dietary components, whose impact on human health is largely determined by peoples' individual genetic makeup."

Nutrition professor M.R.C. Greenwood, chancellor emerita of UC Santa Cruz and director of the new UC Davis

Foods for Health Institute, quoted in Penton Insight, November 2008

"In order to understand more precisely the role of diet and nutrition, new approaches exploring the link through

nutrigenomics, proteomics and metabolomics may soon provide insight into controlling age-related diseases by following a

balanced food intake."

G. Fernandes et al., Immunologic Research, 2008

Figure 10: Nutrigenomics is geared towards understanding the response of the body to diets and food factors

through various ''omics'' technologies such as transcriptomics, proteomics, and metabolomics

GENOMICS:The characterization and study of whole genomes with respect to the DNA sequence, and the arrangement and

function of genes

TRANSCIPTION:Patterns of gene expression

PROTEOMICS:Structure and function of proteins. The study of the full set

of proteins encoded and expressed by a genome, from healthy and diseased tissues

METABOLIC OUTCOMES:Metabolite profiles and functions

Molecular medicine

Nutritional science

BIOINFORMATICSBiotechnology

PharmacogenomicsGENE FUNCTION & PHENOTYPE

Dr. Jim Kaput’s Five Tenets of Nutrigenomics:

• Improper diets are risk factors for diseases

• Dietary chemicals alter gene expression and/or genome structure

• Influence of diet on health depends upon an individual's genetic makeup

• Genes regulated by diet play a role in chronic diseases

• Individualized nutrition" -diets based upon genotype, nutritional requirements and status - prevents and mitigates chronic disease."

Facilitated by…

Source: Datamonitor analysis; Institute of Food Technologists - The Intersection of Food

and Genes; and PR Newswire, February 2007

D A T A M O N I T O R

Advocates of the science assert that nutrigenomics offers the potential to tailor diets to individual genetic characteristics,

thereby helping weight loss, avoiding cancer and minimizing age-related health concerns. After all, diabetes, cardiovascular

health and obesity are all diet-related conditions that are also genetically influenced. In a recent study, scientists discovered

The Future Decoded



that 16% of the population has inherited two copies of a variant of a gene called FTO, which makes them 70% more likely

to be obese.

While 99.9% of human genes are the same, genetic variations occur that can impact things like an individual's

predisposition to certain dietary components. Indeed, gene variations may offer the only plausible explanation for why two

people can eat roughly the same amount of food but have vastly different body shapes. This is because interactions

between an individual's genetic make-up and various nutrients can lead to subtle changes in DNA when particular

nutritional factors are increased or decreased in their diet. As the genome is recognized and understood, nutrigenomics

aims to individually prescribe particular levels of nutritional supplements to minimize DNA damage. According to Dr Jim

Kaput of the Centre of Excellence in Nutritional Genomics in California, a pioneer of nutrigenomics, genes play a huge part

in obesity and type 2 diabetes. He asserts that we “have about 30,000 genes in our DNA and maybe about 100 of them will

be mis-expressed because of food consumed. This ‘mis-expression’ forces a bodily response which can lead to weight

gain." (Source: UBIC-CONSULTING)

Overall, it is believed that developments in nutrigenomics and nutrigenetics could change clinical practice in nutrition as

reflected by the Perspectives for Food conference, held by the European Commission's Directorate-General for Research

in Brussels in April 2007:

“There is currently a revolution in genomics. The sequencing of the genome of humans, animals, plants and bacteria is a

huge technological leap forward with enormous potential for human health and disease. Knowledge of the genomes is

helping to uncover unprecedented information about the way our bodies react to food and medicines and this is a huge

scientific challenge for the food industry. Producing foods based on an individual’s genetic make up will be a development

of this in the future… A number of scientists have made alliances with companies that are active in developing personalized

nutrition. Consumers in the future will expect to be able to make choices regarding their food. When they desire to, they will

be able to select foods and diets with functionality and wellbeing aspects consistent with their lifestyle.”

Research Food 2030, Conference Report, European Commission

Other authoritative studies and sources have also highlighted the potential significance of personalized nutrition through

nutrigenomics:

• The Foresight report, entitled "Tackling Obesities: Future Choices," is a two year study conducted in the UK by

about 250 experts and scientists. It examined the causes of obesity and mapped future trends to help the

government develop new health strategies. The report predicted that more than half the population of Great

Britain will be "extremely overweight" by 2050, resulting in an estimated cost of £45 billion for public health

services and lost working hours. The study identified nutrigenomics as a possible means for alleviating this

situation by gaining an understanding of how nutrients and genes interact, and how genetic variations can cause

people to respond differently to food nutrients. However, the study notes there is a shortage of evidence

regarding how successful this approach may be in achieving sustainable weight loss, particularly because there

are more than 600 genes currently associated with obesity.

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• In mid-November 2008, more than 100 nutritionists, food scientists, plant researchers, engineers, and medical

and veterinary scientists from Denmark, Finland, Korea, New Zealand, Sweden, and the US gathered at the

University of California, Davis, to chart future research directions in the area of foods, nutrition and human

health. Top of the agenda were presentations on obesity, nutrigenomics and improving human health.

• H Kato and colleagues from the University of Tokyo (in a study published in the Asia Pacific Journal of Clinical

Nutrition, 2008) concluded: "the 'omics' data accumulated by our group and others strongly support the promise

of the systems biology approach to food and nutrition science."

However, a sizeable number of skeptics are also apparent when it comes to the both the evidence and commercial viability

surrounding nutrigenomics and nutrigenetics. This includes both consumers (as analysis elsewhere in this report shows),

and experts within the nutritional community. While genes undoubtedly contribute to obesity (and wider nutrition problems)

other substantive factors include higher consumption of kilojoules, coupled with a sedentary lifestyle.

Dutch researcher Amber Ronteltap recently interviewed 29 experts from trade and industry, civil organizations,

government, media and science for her doctoral research. These interviews revealed that there is poor consensus on

important questions such as what exactly defines nutrigenomics, within what time frame it will be usable in practice, and

how acceptance by consumers is determined. Based on interviews with experts and extensive study, Ronteltap developed

different future scenarios to put to the general public. A representative random sample generated a number of conditions

that consumers would require before accepting nutrigenomics. The most important is freedom of choice: the guarantee that

it would not be compulsory to register a genetic profile. Consumers also believe that the products being developed should

provide proven (health) benefits and that their use should not disrupt the routine of daily life. The general public also wants

to see clear scientific agreement about the usefulness of the possibilities provided by nutrigenomics, according to a release

from the Netherlands Organization for Scientific Research (NWO).

"Commercialization of genetics tests at this stage is premature."

Stuart Hogarth, a fellow at the Institute for Science and Society at the University of Nottingham, England, quoted in

the Wall Street Journal Asia, December 2007

“Given the current state of genetic knowledge—in which there often aren't clear-cut associations between genes and

disease—[it] sounds like a genetic horoscope.”

Gail Javitt, who leads a genetic-testing quality initiative at the Genetics and Public Policy Center at Johns Hopkins

University quoted in the Wall Street Journal Asia, December 2007

Thus far, nutrigenetics based dietary products marketed as personalized nutrition products have been designed to

complement genetic test kits and to provide individuals with dietary solutions that combat specific health issues growing out

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of genetic variation. In contrast to nutrigenetics, nutrigenomics products will rely on the science of genomics to support

efficacy. Examples of companies and researchers capitalizing on the opportunities apparent through this science-led

approach to personalized nutrition are presented in the Action Points chapter.

Personalized nutrition, and the mega-trend it is aligned with, is also linked to self identity, self-expression and self indulgence

The definition of personalized nutrition can also be expanded to include the targeting of lifestyle and personal aspirations.

The Individualism mega-trend represents consumers’ desires to express themselves (self definition in consumer societies

is at least partially reliant on consumption), and to be recognized as having personal needs rather than being part of the

mass market.

• Broader societal trends reflect why personalization and customization benefits appeal to contemporary

consumers – Fletcher (in the International Journal of Market Research, 2006) talks of "splintered societies"

where “homogeneity is fast disappearing [and] heterogeneity is the name of the game.” Futurologist Faith

Popcorn puts it aptly: “to offset a depersonalized society, consumers crave recognition of their individuality.”

Individualism also reflects a world of opportunity and liberating freedom where people can live their lives as they

please, a factor which is particularly evident in the growing number of single person households. People are

trying to identify and express themselves with brands which they are similar to or aspire to be similar to. Table

12 below highlights the broad importance that consumers place on individuality and self expression. More than a

quarter of all respondents across the 15 countries stated that individuality and being able to express themselves

was ‘very important’ to them personally. A further 46% stated that it was ‘important’.

Table 6: Consumer survey: the importance consumers attach to individuality and self-expression, in 15


QUESTION: How important are the following to you? Individuality and being able to express yourself

France Germany Italy Netherlands Spain Sweden UK US

Very important 19.6% 35.5% 32.6% 14.2% 32.1% 16.2% 22.9% 30.9%

Important 44.1% 46.7% 44.4% 50.6% 42.3% 46.4% 47.4% 43.1%

Total important 63.7% 82.2% 77.0% 64.8% 74.4% 62.6% 70.3% 74.0%


Very important 23.7% 51.2% 26.2% 47.8% 16.4% 17.2% 29.5% 27.6%

Important 50.1% 37.9% 54.6% 40.6% 48.0% 52.7% 49.6% 46.7%

Total important 73.8% 89.1% 80.8% 88.4% 64.4% 69.9% 79.1% 74.3%


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• Consumers are attracted to self-congruent brands re-enforcing their self identify – consumers use

distinctively branded products to promote their self-concept because brands may be used to represent “who they

are and what they are not.” Contemporary shoppers, more influenced by ethics and their own self expression,

will increasingly ask questions of brands/products with regards to what they stand for and how they match their

own values. If a brand is ‘humanized’ in this way, then it is logical that consumers choose brands in the same

way they choose friends. They simply select the brands that share the same values and meanings as

themselves. Indeed, psychological research indicates that consumers, especially those of premium/luxury items,

typically prefer products and brands with a symbolic meaning consistent with their self-concept. The wider

availability of information about the politics and ethics of food and drink production, distribution and consumption

has resulted in heightened consumer awareness of issues such as environmental sustainability, animal welfare,

human justice, genetically modified foods and artificial ingredients in food and drinks. This will only serve to

heighten the interest in lifestyle food and beverages that are consistent with the values of shoppers themselves.

• There is also overlap here with nutritional personalization, whereby choosing foods with specific health

benefits is a way of protecting a consumer's self-identity which may be damaged by their ailment – the

notion that ‘we are what we eat’ also encapsulates the strengthening links made between self identify, food

consumption and body shape. When Datamonitor surveyed consumers across 15 countries in August 2008,

more than half of respondents expressed the view that it was important to choose brands which match their

attitudes and outlook on life (see Table 7 and Figure 11). One of the biggest consumer trends in terms of buying

goods for how they represent the extended self is the growing importance of ethical issues. Given that many

consumers now seek to affect ethical issues which they believe in through consumption, it is not surprising that

ethical products are proving increasingly popular despite commanding a price premium.

“A match (or congruence) between consumers’ ideal self-image and brand image contributes to the development of positive

attitudes toward a brand.”

Bjerke and Polegato, Psychology & Marketing, 2006

“Increasingly, consumers are willing to spend lots of money on "identity-related" purchases, while other less-important

purchases are based solely on cost.”

The Futurist, July 2007

The Future Decoded



Table 7: Consumer survey: the importance attached to brands which match their attitudes and outlook on

life, in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008

QUESTION: How important are the following to you? Choosing brands which match your attitudes and outlook on life


Total important 52.0% 31.4% 53.4% 34.7% 49.1% 42.8% 33.7% 49.6%


Australia China Brazil India Japan Korea Russia Total

Total important 41.2% 80.0% 76.8% 81.2% 53.1% 65.4% 66.2% 53.0%


NB: the full range of response options was Very important; Important; Neither important nor unimportant; Unimportant; Very unimportant


Figure 11: Identity based consumption is driven by the importance that shoppers place on ‘brand attitude’

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QUESTION: How important are the following to you? Choosing brands which match your attitudes and outlook on life


The Future Decoded



• In the context of individualization and the increased importance of the self, more consumers are looking

to their food and drink consumption to offer benefits of indulgence and pampering, despite the financial

crisis – concerns over economies across the globe have spread rapidly as the global economic downturn

gathers pace. The slowing of several key economies, including the US, Japan and Germany, has left many

consumers in a less desirable financial situation. However, Datamonitor fieldwork indicates that consumers are

still indulging more often in spite of concerns about the downturn and health considerations. According to a

consumer survey conducted in August 2008, many consumers have been looking to enjoy small indulgences to

escape pressure in everyday life more often in 2008, with only a very small percentage advising that they had

cut down. This is further evidence that, in spite of disposable incomes becoming tighter, consumers still find it

important to indulge themselves. ‘Downtime’ is seen as increasingly necessary if one is to find the energy and

resources to function in today’s ‘24/7 living’.

Figure 12: Enjoying small indulgences to escape everyday pressures has remained a theme in global

consumer behavior in 2008

France

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QUESTION: In the past SIX MONTHS, please indicate to what extent have you done the following more or less frequently…Enjoyed small indulgences to escape the pressures of everyday life


Key takeouts and implications: there are numerous innovation platforms for offering personalized nutrition

• Personalization, whether based on lifestyle, socio-demographics, blood type or genetics, looks set to

become an important component of diet programs going forward.

• Functional food and drinks are formulated to offer specific health and wellness benefits to highly

targeted groups of consumers, and are therefore heavily correlated with the personalized nutrition trend.

The Future Decoded



The growing acceptance of functional food and drinks is reflected by rising sales of functional products

across all food and drink categories in the US, Asia and Europe alike, and growth rates continue to

outperform growth in the food and drink categories overall.

• The ability of a product to make a targeted appeal to a consumer group is a core component of

personalized food and drink products. Formulating and positioning products to specifically appeal to

certain age cohorts, as well as male and female specific variants, is ‘on-trend’ but not without

limitations. Age and gender customization must be compelling because it has strong exclusionary

connotations, restricting the target market. At the same time, however, consumers—especially

females—will increasingly assess the nutritional credentials of brands on the basis of formulations

geared towards satisfying gender specific needs, about which they will gradually become more informed

and knowledgeable over time. Special formulation to meet the nutritional needs of an intended

beneficiary group is important, as is clear and consistent communication of this.

• Personalized nutrition also means manufacturers and retailers need to respond to consumers’

increasing food sensitivity. The danger of suffering an allergic reaction or the consequences of

intolerance to certain food types is driving an increasing market segment to focus on products which

omit certain ingredients. Specifically, it is food intolerances rather than food allergens that provide the

larger consumer market to satisfy. Developing and clearly signposting gluten and lactose free products

will become an increasing feature of food and drink product development in the coming years.

• Taste/flavor customization enables the consumer to choose their own ‘mix and match’ flavor

combinations. Such products offer added value benefits of excitement, boldness and sensation and give

consumers a way of both confirming and projecting their unique sense of self. The trend in

customization of tastes and flavors is a niche rather than mass-market one, but there are growing

opportunities for manufacturers to respond to consumers’ increased interest in novelty, adventure and

control in terms of taste and flavors.

• Deepening knowledge of genomes is helping uncover more about the impact of dietary intake on health.

The science of nutrigenomics seeks to understand the impact of dietary patterns on the functioning of

genes. Nutrigenomics thus uncovers the cause and effect relationship between food and health and can

thus be used to identify innovative nutritional products that can be marketed to provide a variety of

targeted health benefits based on a person’s genetic make-up. This form of personalized nutrition is at

the cutting edge of nutritional science, which itself is ever more focused on products more tailored to

the individual. It could also have an important effect by helping to control many types of disease.

• More research is being done to see what combination of foods work best for a given genotype.

Therefore, in the coming years, nutrigenomics will become better understood. In such a scenario, it is

likely to be highly valued for discovery and health claim substantiation. Some R&D departments in

leading nutrition focused companies, such as Nestle and Danone, are already exploring nutrigenomics

either directly or through partnerships to enhance their positions in anticipation of growing wellness

market opportunities going forward. The longer term commercial viability of nutrigenomics will only

become clearer and more widely accepted as scientific support builds.

The Future Decoded



• In the meantime, nutrigenomic developments are likely to fuel the growth of the nutritional supplement

and functional food industries as they move forward. In addition, the segmentation of products in order

to specifically reach distinct consumer groups (women, men, seniors, young adults, tweens and

teenagers etc.) is likely to continue until the realization of nutrigenomics. Another likely scenario in the

short to medium term is that consumers will try to establish an understanding of their genetic make-up

in relation to diet by trying new things and working it out for themselves through trial and error. Until

then, nutrigenomics will be a trend primarily driven by more elite consumers, particularly celebrities.

• The specialist niche character of personalized nutritional needs in food and drink, along with the

regulatory context, means that innovation in this area is unlikely to be vast. There is also the concern

that cost may be greater than the value of the perceived benefit, which is also an inhibitor to the

development of more general functional food and drinks. Ethical concerns may also hamper consumer

adoption/acceptance as analysis elsewhere in this report highlights.

• As the need for shelf stand out intensifies, consumer packaged goods (CPG) brands will be under

greater pressure to develop ‘brand personality’ and show that a brand fits the self-identity of the target

consumer. This involves building a compelling brand story. ‘Attitude/lifestyle branding’ will therefore

become more prominent, especially in attracting and creating an emotional connection with younger

consumers.

• Marketers of premium food and drinks can make more personalized appeals by catering to the needs of

self-indulgent ‘me-focused’ individuals interested in self-reward, self-pampering and status

enhancement by highlighting unique, unusual and premium features of products. In recent years,

manufacturers and retailers across most consumer markets have moved on from traditional “features

and benefits” marketing and instead have sought to create more emotionally led ‘experiential benefits’

for consumers. The outlook for premium food and drink brands may be more favorable than for premium

personal care, given that consumers often look to keep themselves cheerful during downturn with

gustatory pleasures to be put inside their bodies, more so than what they put on the outside of their

bodies. This is why it is important that enjoyment benefits are also emphasized in marketing

communications.

INSIGHT: Consumers are attracted by the prospect of custom solutions but the desire for personalized benefits is secondary to most other aspects influencing dietary choices

Consumers want to be perceived as unique individuals and part of this is a desire for unique products. They are also

looking for a stronger emotional connection with the products they buy, and customization benefits help to reinforce this

bond. A unified rejection of the 'one size fits all' approach to nutrition is gathering pace; indeed, dieters know from

experience that not every diet works for everybody. However, this does not necessarily mean that consumers will readily

accept and purchase the more complex forms of personalized nutrition outlined in the previous analysis. The following

explores consumer attitudes to personalized products, from both general and dietary choice perspectives.

The Future Decoded



There are a number of personal motivations/benefits associated with customization opportunities

As Figure 13 below outlines, four important needs/benefits are satisfied by offering customization opportunities. In addition

to these personal motivations, digital technologies and developments in nutritional science (see previous analysis) have

made adaptation and customizing much less costly and within easier reach for all consumers. Indeed, the desire for

individuality is not new but has simply become more attainable for an increased number of people.

Figure 13: Four key personal benefits as well as the additional ease of customizing have driven the trend

toward more personalized consumer packaged goods

Need specificity:Self-designed products offer a much closer fit between individual needs and product characteristics

Process benefits:As the customer takes on the role of an active co-designer, it is likely to allow the customer to meet experiential needs

Scarcity benefit:The perceived uniqueness of the self-designed product can be highly appealing to the growing need for self-differentiation

Pride of authorship:Taking pride in having created something on their own (instead of traditionally buying something created by somebody else)

Positive attitudes towards need specific products and growing frequency of personalized consumption

Digital technologies have made adaptation and customizing much less costly and within easier reach of all

Source: Datamonitor analysis adapted from Goldsmith and Freiden (2004) D A T A M O N I T O R

Consumers place high importance on products and services being designed for their specific needs

Given the strong personal benefits associated with more custom solutions outlined in Figure 13 above, it is perhaps

unsurprising that a high proportion (71%) of consumers across 15 countries consider the prospect of “using products and or

services designed for [their] specific needs” to be either ‘very important’ or ‘important’. Only in the Netherlands and

Germany did more than 5% of respondents indicate that this was not an important issue. Brazilians placed the most

importance on custom products and services, with respondents across all the BRIC countries demonstrating highly

favorable attitudes.

The Future Decoded



Table 8: Consumer survey: the importance of using products and or services designed for specific needs,

in 15 countries across Europe, Asia Pacific, South America and the US, by country, 2008

QUESTION: How important are the following to you? Using products and or services designed for your specific needs


Very important 15.5% 13.2% 22.3% 4.0% 22.0% 14.1% 9.5% 20.5%

Important 51.8% 47.1% 49.5% 44.8% 47.3% 51.4% 49.7% 53.3%

Total important 67.3% 60.3% 71.8% 48.8% 69.3% 65.5% 59.2% 73.8%


Unimportant 3.2% 3.7% 1.3% 6.0% 3.8% 2.3% 4.1% 2.7%




Very important 17.0% 48.2% 27.6% 44.0% 11.7% 13.0% 22.8% 19.6%

Important 52.3% 46.0% 57.5% 40.4% 47.5% 57.7% 62.0% 50.9%

Total important 69.3% 94.2% 85.1% 84.4% 59.2% 70.7% 84.8% 70.5%


Unimportant 2.2% 0.2% 1.2% 4.3% 3.4% 3.1% 2.5% 2.9%




Figure 14: Consumers are attracted to the idea of using products and or services designed for specific needs

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The Future Decoded



When considering a wider set of food and beverage considerations, customization/personalization benefits are less important to consumers

While the previous analysis showing that consumers consider products and/or services designed for their specific needs to

be important is interesting, it is more useful to ascertain how the preference for personalized/customized benefits fits into

the broader ‘consideration set’ when making dietary choices.

Table 9 and Figure 15 below highlight that comparatively fewer respondents considered customization/personalization

benefits to be an influential factor in their choice of food and beverage products. Indeed, in France, Germany, the

Netherlands, Sweden, the UK, the US, Australia, and Japan (and the overall average across all countries), the percentage

of respondents stating that customization or personalization benefits had a ‘low amount of influence’ significantly

outnumbered the proportion of respondents perceiving such benefits to have a ‘high amount of influence’ on product

choice. This illustrates that the personalized nutrition trend is still in its infancy and that consumers, at this juncture, are not

pre-occupied by personalized product benefits. Overall, personalization/customization benefits can be grouped among

other factors in the ‘consideration set’ which are potential ‘brand differentiators’, rather than ‘brand fundamentals’ (see

Figure 15). It also implies that there is an ‘attitudinal-behavior gap’; although the idea of more personalized benefits appeals

in theory, the extent to which behavior is influenced by attitudes and values is less apparent. This implied attitude-behavior

gap is reflected by the red bars in Figure 16 below.

Some interesting country-by-country variations were also apparent from the survey results. In Europe, Spanish and Italian

respondents perceive customization or personalization benefits to have the highest amount of influence on food and

beverage choices, with 34% and 30% of respondents from the respective countries indicating that it had a ‘high’ or ‘very

high' amount of influence. Respondents across the BRIC countries perceived customization/personalization benefits to

have more of an influence of product choices. Indeed, less than 10% of Indian respondents perceived such benefits to have

a ‘low amount of influence’ on product choice; this is in stark contrast to the 61% of Dutch respondents who responded in

this way. The results indicate that for the growing numbers of fast moving consumer goods (FMCG) players looking to tap

into emerging market opportunities, there needs to be recognition that these consumers place considerable importance on

a wide range of factors in the purchase ‘consideration set.’

It is also important to acknowledge that taste/flavor is the most important factor driving product choice more generally.

Since taste/flavor customization is an important innovation platform associated with personalized nutrition, this insight

should not be ignored. Indeed, the results indicate the taste/flavor customization messages, at least at this stage, are more

likely to resonate with food and beverage shoppers than personalized nutritional needs.

The Future Decoded



Table 9: Consumer survey: the perceived influence of customization or personalization benefits on food

and beverage product choices, in 15 countries across Europe, Asia Pacific, South America and the

US, by country, 2008

QUESTION: Please tell us how much influence the following factors have in your choice of food and beverage products: Customization or personalization benefits (e.g. formulated for your age, gender or specific health requirements)









Ranking in a list of 14 factors influencing choice 14 13 13 14 10 13 13 13









Ranking in a list of 14 factors influencing choice 13 12 12 7 13 12 13 13

NB: Figure 15 below highlights 14 factors Datamonitor assessed as being issues driving food and beverage choices


The Future Decoded



Figure 15: When considering a wider set of food and beverage considerations, customization/personalization

benefits are less important to global consumers

78%

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QUESTION: Please tell us how much influence the following factors have in your choice of food and beverage products(Shows the % of respondents who stated each factor had a ‘very high’ or ‘high amount of influence’)

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Global response

Food & beverage brand differentiators

Food & beverage brand fundamentals


The Future Decoded



Figure 16: Though consumers consider products and or services designed for their specific needs to be

important comparatively fewer respondents consider customization/personalization benefits to be

an influential factor in their choice of food and beverage products

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Using products and or services designed for specific needs is 'important' or 'very important'Customization or personalization benefits has a 'high' or 'very high' amount of influence on choiceImplied purchasing influence gap

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This chart shows two questions:

Please tell us how much influence the following factors have in your choice of food and beverage products Customization or personalization benefits

How important are the following to you? Using products and or services designed for your specific needs


Key takeouts and implications: personalization/customization benefits fulfill important needs but are not typically top-of-mind when making general food and beverage choices

• The Individualism mega-trend suggests that the next competitive platform going forward is based on

moving beyond 'me too' or incremental offerings to marketing more relevant and more differentiated

products and services. Indeed, a major reason why certain products have additional appeal is that they

offer an obvious source of differentiation. Four key personal benefits as well as the additional ease of

customizing have driven the trend toward more personalized consumer packaged goods.

• However, while consumers want manufacturers to go to greater lengths to satisfy their needs by offering

customization possibilities, it is important to recognize the broader picture.

Customization/personalization benefits are still secondary to other needs such as health, sensory,

convenience and habitual preferences. This reflects how the Individualism mega-trend—while indeed

becoming more important—is less important in directing general consumer behavior.

The Future Decoded



• The high priority given towards taste benefits serves as a useful reminder about the importance of

creating strong sensory appeal at a time when messages of conviviality and health have tended to

dominate the marketing of food and beverage products. Industry players embracing personalized

nutrition must increasingly promote hedonistic attributes, such as “great taste” and “freshness”, to

entice consumers and to maintain their long-term interest. This may also mean placing more importance

on taste and flavor customization rather than personalized nutritional needs.

INSIGHT: Many consumers appear skeptical about personalized nutrition, especially nutrigenomics

The following analysis builds upon the previous insight by highlighting the challenges and barriers to the personalized

nutrition trend. In doing so, it highlights that the trend also faces a significant barrier in the form of consumer skepticism.

Consumers are skeptical of health and nutritional claims

Winning consumer trust is an issue not to be underestimated: today’s consumers are skeptical, not just of personalized

nutrition but health claims in general. Datamonitor’s research in 2008 has identified an ongoing skepticism among shoppers

towards the general health and nutritional claims made by food and drink manufacturers (ongoing because a Datamonitor

study of Western European and US consumers in 2004 also highlighted a similar lack of trust). Table 10 and Figure 16

below highlight that across all countries (with the exception of India and Brazil), less than one in 10 respondents had

‘complete’ trust in general health and nutritional claims made by food and drink manufacturers. There were notable

differences between countries, with Italians displaying far less skepticism than their European counterparts. Across the

BRIC markets, trust appears to be higher, although this has to be tempered by the reality that consumers in these countries

tend to provide more optimistic, favorable responses. Overall, the majority of respondents in most countries expressed

neither trust nor distrust. This implies there is an opportunity for the industry to overcome this ambivalence: consumers are

essentially saying ‘what can you do to win my trust?’ and the industry and legislators must continue to respond to this,

especially if opportunities in new and emerging nutritional developments such as nutrigenomics are to be fully realized.

One reason for the relative skepticism surrounding nutritional claims made by the food and beverage industry is that

consumers simply feel overwhelmed by the proliferation of conflicting nutritional information that they receive, much of

which is essentially conflicting. Indeed, according to a 2008 survey sponsored by the Nutrient Rich Foods Coalition

(NRFC), the US is at a crossroads when it comes to nutritional advice. According to the survey, more than half (54%) of

Americans are overwhelmed by the information and advice they receive on what to eat and what to avoid. The survey

found that 78% of Americans agree they would like a simple, practical tool that would help them build a healthy diet based

on getting the most nutrients from the foods they choose.

"It's clear that Americans are confused about healthy eating and are looking for a simple, sound approach to build a healthy

diet and live well."

Adam Drewnowski, PhD, director of the nutritional sciences program at the University of Washington Center for

Obesity Research

The Future Decoded



Table 10: Consumer survey: trust in health and nutritional claims made by food and drink manufacturers, in 15


How trustworthy do you consider the following to be? General health and nutritional claims made by food and drink manufacturers


Completely trustworthy 2% 2% 6% 2% 4% 2% 2% 6%

Somewhat trustworthy 14% 12% 35% 16% 24% 24% 20% 28%

Total trustworthy 16% 14% 41% 18% 28% 26% 22% 33%

Neither trustworthy nor untrustworthy 47% 49% 45% 58% 49% 57% 50% 47%

Untrustworthy 26% 30% 11% 21% 17% 14% 22% 16%

Not at all trustworthy 12% 8% 3% 4% 7% 3% 5% 4%

Total untrustworthy 38% 37% 14% 25% 23% 18% 27% 20%


Completely trustworthy 2% 12% 5% 34% 0% 2% 5% 5%

Somewhat trustworthy 22% 33% 33% 40% 23% 25% 37% 25%

Total trustworthy 24% 45% 38% 74% 23% 27% 42% 30%

Neither trustworthy nor untrustworthy 50% 35% 51% 20% 59% 47% 38% 47%

Untrustworthy 23% 17% 10% 6% 15% 23% 17% 18%

Not at all trustworthy 3% 2% 2% 1% 3% 3% 3% 5%

Total untrustworthy 26% 20% 11% 7% 18% 25% 20% 23%


Figure 17: Consumers are unconvinced by the health and nutritional claims made by food and drink products

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QUESTION: How trustworthy do you consider the following to be? General health and nutritional claims made by food and drink manufacturers

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The Future Decoded



Consumers in more developed markets are skeptical about food and beverages aimed at children

Children's nutrition has emerged as a major theme in marketing, with retailers and manufacturers actively reformulating

products to help parents fight childhood obesity. This form of age specific marketing and product development is an

important innovation platform within the personalized nutrition trend more generally.

However, a potentially important inhibitor to such child focused personalized food and beverage products is that many

individuals are highly skeptical due to the targeted group. The results of Datamonitor’s consumer research in 2008 capture

this skepticism, particularly in more developed consumer markets. Across all countries, a high proportion of respondents

consider such products to be ‘neither trustworthy nor untrustworthy’ (42% overall). Given that trust is such an important

component of effective brand building and influencing purchase behavior, this is an obvious concern for industry players.

Even more concerning is the reality that across the more developed consumer markets (France, Germany, the UK, the US,

and Australia), more respondents considered food and beverages aimed at children to be ‘untrustworthy’ than those who

felt that such products were ‘trustworthy’. Consumers in emerging markets are more trusting: this is likely to be influenced

by the fact that media scrutiny surrounding childhood obesity and the broader ethics of marketing to children is currently

less prominent in these countries.

Table 11: Consumer survey: trust in food and beverages aimed at children, in 15 countries across Europe,

Asia Pacific, South America and the US, by country, 2008

Answers to the question: How trustworthy do you consider the following to be? Food and beverages aimed at children


Completely trustworthy 3.6% 2.4% 9.4% 3.6% 10.2% 1.6% 1.6% 5.3%

Somewhat trustworthy 21.9% 15.9% 36.0% 25.3% 28.6% 23.2% 16.4% 21.5%

Total trustworthy 25.5% 18.3% 45.4% 28.9% 38.8% 24.8% 18.0% 26.8%

Neither trustworthy nor untrustworthy 41.2% 44.9% 43.1% 50.5% 45.7% 52.4% 44.5% 44.7%

Untrustworthy 23.1% 28.4% 9.0% 16.2% 11.8% 17.9% 27.0% 22.8%

Not at all trustworthy 10.3% 8.5% 2.6% 4.3% 3.7% 4.9% 10.4% 5.7%

Total untrustworthy 33.4% 36.9% 11.6% 20.5% 15.5% 22.8% 37.4% 28.5%


Completely trustworthy 1.1% 9.8% 5.5% 33.3% 1.1% 3.3% 15.8% 6.4%

Somewhat trustworthy 15.4% 43.4% 44.4% 42.0% 24.9% 26.1% 51.0% 27.8%

Total trustworthy 16.5% 53.2% 49.9% 75.3% 26.0% 29.4% 66.8% 34.2%

Neither trustworthy nor untrustworthy 44.0% 32.8% 41.7% 17.4% 57.7% 44.1% 24.1% 42.3%

Untrustworthy 31.1% 11.3% 7.4% 6.5% 13.6% 23.9% 7.5% 18.3%

Not at all trustworthy 8.4% 2.6% 1.0% 0.7% 2.6% 2.6% 1.6% 5.3%

Total untrustworthy 39.5% 13.9% 8.4% 7.2% 16.2% 26.5% 9.1% 23.6%


The Future Decoded



Figure 18: Skepticism surrounds food and beverages aimed at children in developed consumer societies

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QUESTION: How trustworthy do you consider the following to be? Food and beverages aimed at children


Many consumers express mixed feelings towards food and beverages that are customized to meet specific needs

Given the negativity surrounding childhood obesity it is perhaps unsurprising that the analysis above showed consumers to

be skeptical of these personalized, age-targeted foods and beverages.

There is a growing belief, however, that diets cannot be right for everyone. So, in a separate question, Datamonitor also

gauged favorability and acceptance of different emerging food and beverage concepts. This included asking respondents

the extent to which food and beverage products that are formulated with specific nutritional needs in mind were appealing.

The results (the country by country findings of which are presented in Table 12 and Figure 19 below) highlight that while the

overall opinion is broadly favorable, a degree of polarization also characterizes the responses. Indeed, across all European

countries, more than one-third of respondents indicated that food and beverage products formulated with their specific

nutritional needs in mind was not appealing (a sum of respondents stating ‘not very appealing’ or ‘not at all appealing’).

Negative sentiment was slightly less apparent in Australia and the US, although nearly three in 10 respondents in both

countries also perceived such food and beverages negatively.

The Future Decoded



Table 12: Consumer survey: the appeal of food and beverage products formulated with specific nutritional

needs in mind, in 15 countries across Europe, Asia Pacific, South America and the US, by country

QUESTION: How appealing are the following food and beverage concepts and ideas to you personally? Food and beverage products that are formulated with your specific nutritional needs in mind

France Germany Italy Netherlands Spain Sweden UK US

Very appealing 11.1% 6.0% 21.0% 4.7% 13.1% 11.8% 6.9% 18.3%

Somewhat appealing 29.6% 33.4% 41.6% 40.4% 43.3% 36.6% 44.2% 45.2%

Total appealing 40.7% 39.4% 62.6% 45.1% 56.4% 48.4% 51.1% 63.5%

Not very appealing 37.0% 32.6% 31.8% 32.9% 33.9% 37.8% 31.6% 20.1%

Not at all appealing 16.9% 14.5% 3.7% 9.4% 5.3% 6.5% 8.8% 6.9%

Total not appealing 53.9% 47.1% 35.5% 42.3% 39.2% 44.3% 40.4% 27.0%

Don’t know 5.4% 13.5% 1.9% 12.6% 4.5% 7.3% 8.6% 9.4%


Very appealing 15.4% 17.4% 21.9% 39.9% 9.1% 11.4% 21.3% 14.8%


Total appealing 63.0% 48.3% 73.7% 83.7% 57.8% 58.8% 70.3% 56.8%




Don’t know 8.1% 3.0% 1.7% 2.2% 6.0% 3.3% 8.3% 6.7%


Figure 19: Many consumers express mixed feelings towards food and beverages that are customized to meet

specific needs

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QUESTION: How appealing are the following food and beverage concepts and ideas to you personally?Food and beverage products that are formulated with your specific nutritional needs in mind

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The Future Decoded



Skepticism surrounds using genetic information to inform and direct food and beverage choices

Nutrigenomic science is still in its infancy. So far, evidence surrounding the interaction of nutrients, genetic variations and

health implications is uncertain and, in some cases, controversial. A number of companies have launched nutrigenetic

testing kit products that have raised skepticism and been harshly criticized. Most genetic tests on the market today are

marketed as medical devices and are not regulated by the FDA. Without standards and oversight, it is difficult to assess

their reliability. Following a request for an investigation, the Government Accountability Office (GAO) in a 2006 report

warned the consumer to beware, and stated that these kits "mislead consumers by making predictions that are medically

unproven and so ambiguous that they do not provide meaningful information."

There is also a degree of skepticism about genetic based research more generally which may negatively impact

consumers’ perceptions of nutrigenomics (and the associated personalized nutrition benefits). Although many consumers

are interested in knowing about their own genetic make-up, just as many, if not more, may not wish to undergo the tests

involved. According to a study carried out by the Natural Marketing Institute (NMI), when asked if they would be interested

in having their DNA tested and mapped in order to learn how to live healthier lives, almost 39% of adults answered

affirmatively. However, over 41% were not interested. So, while the science around nutrigenetics may continue to advance,

issues around privacy and ethics must also be addressed. The European Commission’s Research Food 2030 conference

report encapsulates the issues at hand, whereby a decline in trust more generally inhibits the more scientifically advanced

developments associated with food nutrition:

“Public trust in science has declined over the past 30 years, partly due to food scares, and this trust needs to be brought

back if we want new scientific technologies to play the positive and productive role in future food production that they may

be capable of.”

Research Food 2030, Conference Report, European Commission

When Datamonitor asked consumers specifically about using their genetic information to provide them with nutritional and

or diet related advice (i.e. the core proposition associated with nutrigenomics) there was a high amount of negative

sentiment towards such a concept. Indeed, in France, Germany, the Netherlands, Sweden, the UK, Japan and Korea, more

than 50% of respondents indicated that it was not appealing (a sum of respondents stating ‘not very appealing’ or ‘not at all

appealing’). Favorability was higher in the US where overall opinion showed a near equal divide between those who

perceived the principles of nutrigenomics to be appealing and those who perceived it to be unappealing. This is broadly in

line with the findings of the study by the NMI (see above). However, the favorability displayed by US respondents was

noticeably lower than a similar study by the IFIC Foundation in 2007 entitled ‘Consumer Attitudes toward Functional

Foods/Foods for Health’. The research found that in 2007, more Americans expressed favorability toward the concept of

using genetic information to provide personalized nutrition and/or diet recommendations (79% versus 71% in 2005), with

nearly one-third (32%) saying they are 'very favorable.' When asked why they are favorable toward nutrigenomics,

“maintaining health and preventing disease” remains the primary reason cited by 18% of the US respondents sampled. The

US respondents most likely to have a 'somewhat favorable' or 'very favorable' opinion toward personalized nutrition were

those who believe food and nutrition play a 'great' (82%) or 'moderate' role (71%) in maintaining or improving overall health

(compared with 53% who responded 'limited or no role').

The Future Decoded



Table 13: Consumer survey: the appeal of using information about genes to provide nutritional and or diet

related advice, in 15 countries across Europe, Asia Pacific, South America and the US, by country

QUESTION: How appealing are the following food and beverage concepts and ideas to you personally? Using information about your genes to provide you with nutritional and or diet related advice

France Germany Italy Neth Spain Sweden UK US

Very appealing 9.1% 4.6% 19.9% 4.7% 9.8% 8.5% 6.4% 16.2%


Total appealing 27.2% 21.5% 58.5% 26.4% 44.1% 34.9% 36.7% 44.0%




Don’t know 8.0% 18.3% 3.4% 13.0% 7.8% 6.5% 8.9% 12.3%


Very appealing 9.9% 19.2% 15.4% 30.8% 5.3% 8.8% 20.6% 12.1%


Total appealing 42.5% 52.0% 58.6% 79.0% 35.1% 43.4% 58.5% 42.7%




Don’t know 9.2% 4.2% 1.9% 4.0% 10.9% 3.3% 12.6% 8.6%


Figure 20: Skepticism surrounds using genetic information to inform and direct food and beverage choices

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The Future Decoded



The negative sentiment towards using information about genes to provide nutritional and or diet related advice in France,

Germany, the Netherlands, Sweden, the UK, Japan and Korea is likely to be influenced by a lack of awareness and

understanding. A related issue here is that it could also be down to perception among respondents that nutrigenomics

means that such food and drinks are somehow "adulterated" i.e. too far removed from the basic and simplistic approaches

to food production that many authenticity focused consumer want. The negative publicity surrounding GM foods has,

arguably, exacerbated this view.

At present, there is only limited research surrounding consumer awareness and understanding of the issues and practices

surrounding nutrigenomics. Indications are that the terms nutrigenomics and nutrigenetics are barely distinguishable and

are not typically understood. The aforementioned IFIC study offered some insight into this. Continuing the range of

questions in an equivalent study regarding nutrigenomics in 2005, US consumers were asked how much they have heard

or read about using individual genetic information to provide personalized nutrition or diet related recommendations.

Results indicated that awareness is on the rise, but is still relatively low. The proportion of Americans in 2007 claiming to

know ‘a lot’ or ‘a fair amount’ about this practice increased to 25%, up from 18% in 2005. Those knowing ‘a lot’ remained

stable, but consumers stating that they know ‘a fair amount’ rose significantly from 13% in 2005 to 21% in 2007, and those

knowing ‘nothing’ dropped by four percentage points to account for one-third of respondents. The IFIC Foundation found

that those who are most likely to know ‘a lot’ or ‘a fair amount’ about nutrigenomics included respondents who believed that

food and nutrition play a ‘great role’ in maintaining or improving overall health, consumers who ‘strongly agreed’ that certain

foods have health benefits that go beyond basic nutrition, consumers who state their overall health is ‘excellent,’ college

graduates, and consumers with higher incomes.

At the same time, more than three-quarters (77%) of Americans expressed an interest in learning more about the use of

genetic information to provide nutrition and/or diet-related recommendations to optimize health and reduce the risk of

diseases to which they are genetically predisposed (up from 70% in 2005). Those most likely to be ‘somewhat’ or ‘very

interested’ in learning more about nutrigenomics were respondents who believe food and nutrition play a ‘great’ (81%) or

‘moderate' role (67%) in maintaining or improving overall health (compared to 38% ‘limited or no role’).

IFIC’s research also identified that US respondents overwhelmingly prefer the terms “personalized nutrition” (76%) and

“individualized nutrition” (73%) rather than “nutrigenetics” (50%) or “nutritional genomics” (40%) to describe the practice of

using genetic information to develop personalized diet and health recommendations.

Elsewhere, to further understand how best to communicate nutrigenomics to consumers, WellGen commissioned a study

by the US-based Hartman Group to define the term nutrigenomics through the words of core wellness consumers. Many

positive associations were linked by these consumers with nutrigenomics, including: "a nutrition-based science that

delivered therapeutic nutrition." It seems likely therefore that the various terms associated with nutrigenomics and

nutrigenetics will evolve into a consumer-friendly expression. This may also help to enhance the perceived sensory appeal

of products. This is especially true of functional food and beverages which are more strongly associated with medicinal

credentials rather than enjoyment benefits. This is particularly important because consumers will not compromise:

The Future Decoded



“Evidence from food scientists suggests that despite current concerns about healthy eating, health is secondary to taste in

selecting many food products….There is also evidence in recent research on functional food… that consumers are

unwilling to compromise on taste even for the sake of the health benefits these foods offer.”

Rajagopal et al., in the Journal of Marketing, October 2006

Key takeouts and implications: consumer skepticism and a lack of awareness will inhibit the adoption of sophisticated functional foods and the more scientific forms of personalized nutrition

• Most consumers are overwhelmed by new and conflicting claims about the health benefits of foods.

Growing skepticism over health claims made by food and drink manufacturers has led to ambivalence

over the credibility of functional products. Shoppers appear dubious about the reported health benefits

obtained from consumption, viewing packaging claims as false, exaggerated, or simply acting as an

excuse to command a premium price. Individual attitudes towards food, nutrition and associated

wellbeing tend to be developed over a period of time, and will not simply change as a result of

packaging claims.

• Companies looking to capitalize on the personalized nutrition trend should be wary of pushing a

product’s functionality too far, thereby pushing away consumers who want to maintain a sense of

normality but still eat healthily. It remains to be seen how far down the functional, value-added road

manufacturers are going to be able to go before consumers get put off at the thought of all the 'added

extras' in the products they ingest.

• Consumer awareness of functional products and personalized benefits is a highly important issue; if

they cannot identify or understand the benefits/functionality, they will not be willing to pay a higher price

for foods with those qualities, and therefore the economic incentive to produce personalized solutions

no longer exists. Therefore, industry players need to take a long-term view. Educating consumers now

about the nutritional science will have a more profitable impact in the long-term than short-term price

cuts that encourage sporadic, short-term adoption.

• As the scrutiny of functional food and drink and dietary supplements claims has intensified, so too has

the demand for more rigorous and transparent scientific support. At this stage, it is difficult to ascertain

whether long-term trials will give nutrigenomics the widespread approval and investment it needs. If it

does, nutrigenomics potentially offers food and dietary supplement companies assurances that

functional claims are based on sound science that generate quantifiable results. This will help to win

over skeptical consumers.

• Before the food industry can actively engage in nutrigenomics and nutrigenetics, risks related to

consumer dissatisfaction and skepticism need to be reduced. Developers of nutrigenetic home testing

kits (one of the commercial applications of the science already available) must demonstrate the efficacy

of applying nutrigenetic science to derive resultant health problems or benefits. At the same time, there

must be assurances that these home test kits measure up to industry standards and regulation.

The Future Decoded



INSIGHT: The desire for personalized choices conflicts with the desire for simplified choices, a less complicated lifestyle and value conscious purchasing

Personalization means increased choice for consumers but this is not always perceived as a positive thing. It also implies

more time, more emotional and physical effort in consumption and usage, and more cost for the consumer because

unique/differentiated benefits typically attract a price premium. All of these factors potentially counter the desire for

personalized product choices. The following analysis explores the specifics surrounding this (which are summarized in

Figure 21 below) in more detail.

Figure 21: The desire for personalized choices conflicts with the desire for simplified choices, a less

complicated lifestyle and value conscious purchasing

Industry players must be wary of creating choice

proliferation and consumer

frustration by over-extended product lines. Strong brand management,

especially through brand extensions, is

vital

Driving the demand for more choice in the form

of personalized solutions

Driving the demand for less choice and a possible rejection of personalization/ customization

• A rejection of the one size fits all" approach to nutrition

• Intensifying health concerns a better understanding understand of the relationship between food and health

• The rise of individualistic values and attitudes in society at large and the desire to opt for self congruent brands

• A sense of being overwhelmed characterizes many lifestyles. The need to customize may be perceived as too complex and time consuming

• Price-led value has a significant influence on consumers’ food and beverage choices at a time when commodity prices have soared

• Research experiments typically confirm that the less choice people have, the better they feel


The issue of consumer choice is complex, but it has implications for the appeal of personalized nutrition

Research experiments typically confirm that the less choice people have, the better they feel. Barry Schwartz, a US

marketing professor and author of 'The Paradox of Choice', provides a number of scenarios showing that when there is too

much choice, consumers are less likely to buy anything at all, and that if they do buy they are less satisfied with their

selection. Elsewhere, Professor Mark Lepper and his team at Stanford University in America have found that consumers

who tested six varieties of jam went on to buy more and feel happier than those who were offered 24 varieties to taste.

Another experiment showed that giving students a choice of fewer essay topics made them produce better work.

The Future Decoded



Datamonitor’s consumer survey, conducted in August 2008, showed a high level of agreement with the statement: “there is

too much choice when doing grocery shopping” (see Table 14 below for country by country specifics). All these studies

show that the relationship of choice and satisfaction is more complicated than assumed. Manufacturers and retailers

therefore need to find the “choice sweet spot” (Schwartz, 2005) by editing the choices for their targeted customer while

manipulating the number of choices and then assessing customer reaction.

“Excess choice is paralysis rather than liberation.”

Professor Mark Lepper, Stanford University in America, quoted in the above referenced article

“For the naturally indecisive, hell is choosing what to put in your supermarket trolley. Successfully negotiate the 38 choices

of milk that I counted for sale in my local Tesco (organic, skimmed, soya, omega3 enriched or filtered for purity) and you’re

then confronted with jam overload: 154 flavors…Then there’s the aisle with 107 varieties of pasta and 98 types of fruit

cordial.”

Liz Hollis, encapsulating the sentiment among some grocery shoppers, writing an article for The Times online

Table 14: Consumer survey: agreement with the statement, “there is too much choice when doing grocery

shopping”, in 15 countries across Europe, Asia Pacific, South America and the US, by country,

2008

QUESTION: To what extent do you agree or disagree with the following? There is too much choice when doing grocery shopping


Strongly agree 6.9% 19.3% 17.9% 16.7% 33.3% 15.2% 9.0% 10.1%

Tend to agree 21.6% 29.0% 32.8% 32.1% 33.9% 30.6% 25.4% 23.7%

Total agree 28.5% 48.3% 50.7% 48.8% 67.2% 45.8% 34.4% 33.8%

Strongly disagree 5.2% 5.1% 2.2% 3.3% 2.6% 4.4% 5.5% 6.4%

Tend to disagree 24.6% 12.3% 5.7% 18.3% 6.0% 13.5% 20.3% 21.2%

Total disagree 29.8% 17.4% 7.9% 21.6% 8.6% 17.9% 25.8% 27.6%


Strongly agree 13.1% 52.9% 28.7% 44.9% 8.8% 15.6% 18.5% 19.2%

Tend to agree 29.0% 32.8% 52.7% 39.3% 38.5% 51.6% 32.0% 32.9%

Total agree 42.1% 85.7% 81.4% 84.2% 47.3% 67.2% 50.5% 52.1%

Strongly disagree 17.6% 4.3% 2.9% 4.3% 7.8% 5.9% 17.8% 13.2%

Tend to disagree 4.3% 0.9% 0.5% 0.7% 0.4% 0.4% 4.4% 3.4%

Total disagree 21.9% 5.2% 3.4% 5.0% 8.2% 6.3% 22.2% 16.6%

NB: Respondents who stated ‘neither agree nor disagree’ are not included in the analysis above


The Future Decoded



Figure 22: A large proportion of consumers already feel there is too much choice when doing grocery

shopping which means industry players must be careful to make consumers feel confused or

overwhelmed by more food or beverage variants offering more targeted benefits

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QUESTION: To what extent do you agree or disagree with the following statements? There is too much choice when doing grocery shopping


The desire for a simpler life may be at odds with some more complex innovation platforms associated with personalized nutrition

Too many demands on time, too much information and even too many choices leave many feeling ‘burned out’ at the end

of a day. In the long term this can have a serious effect on quality of life as less time is spent on relationships with family

and friends and they feel less in control of their own lives. As a result, many people are choosing to either completely or

partially adopt a ‘simplicity’ led, less complicated lifestyle.

Simplicity is the consumer need to reduce physical and/or informational clutter and complexity in their lives, often as an

antidote to stress-driven anxieties associated with contemporary consumer societies. People employed in full-time jobs are

increasingly searching for simplicity/less complication in their lives (see Table 15 and Figure 23 below) as they suffer from

the mounting number of things they have to deal with daily. Datamonitor’s research in 2008 found that, across 15 countries,

more than seven in 10 respondents considered living a less complicated lifestyle to be ‘important’ or ‘very important’ to

them personally. This highlights that any notion of personalized nutrition, particularly factors that rely on more time and

effort invested by the consumer, need to emphasize the long term impact on consumer lifestyles in terms of

simplification/ease. This is especially important if consumers perceive there to be additional choice as a result of the

proliferation of targeted, need-specific food and beverages associated with personalized nutrition.

The Future Decoded



Table 15: Consumer survey: importance attached to living a less complicated lifestyle, in 15 countries across

Europe, Asia Pacific, South America and the US, by country, 2008

QUESTION: How important are the following to you? Living a less complicated lifestyle

France Germany Italy Neth Spain Sweden UK US

Very important 22.1% 11.4% 39.2% 8.3% 33.5% 20.2% 17.8% 27.0%

Important 50.2% 40.1% 45.5% 46.1% 46.5% 49.9% 49.8% 47.7%

Total important 72.3% 51.5% 84.7% 54.4% 80.0% 70.1% 67.6% 74.7%


Not important 3.6% 5.5% 1.1% 6.7% 2.4% 3.3% 3.3% 2.9%




Very important 21.4% 59.7% 29.4% 39.5% 11.0% 18.7% 13.3% 24.1%

Important 55.6% 33.5% 55.6% 40.2% 52.9% 55.9% 41.9% 47.8%

Total important 77.0% 93.2% 85.0% 79.7% 63.9% 74.6% 55.2% 71.9%


Unimportant 1.8% 1.1% 2.2% 3.1% 3.9% 2.7% 12.0% 3.6%




Figure 23: The idea of living a less complicated lifestyle resonates with consumer across the globe

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QUESTION: How important are the following to you? Living a less complicated lifestyle

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The Future Decoded



Price/value is a key influencer of food and beverage choices which may negatively impact the wider acceptance of higher priced personalized nutritional products

Datamonitor’s report 'Private Label Shopping Trends in Food and Non-Alcoholic Beverages' (DMCM4648) highlighted that

during the current economic downturn, industry players in the food and non-alcoholic drinks sectors will have to work

harder to convince consumers that price premiums are worthwhile, especially amid a strong desire for good value and

declining consumer confidence. This is because consumers have incredibly strong dispositions toward price led value: it

often determines grocery store selection and the choices made within that store.

Overall, Datamonitor’s consumer survey found that, across the 15 countries of analysis, price was second only to

taste/flavor benefits in directing food and beverage product choices (see Figure 15 previously for a synopsis). Well over

two-thirds (70%) of respondents overall stated that price had a ‘high’ or ‘very high' amount of influence on food and

beverage product choice. In particular, French, German and US respondents indicated that price had a 'very high' amount

of influence in shaping food and beverage product choices (see Figure 24 below).

The key implication here is that customization and personalization benefits are typically associated with higher prices. The

reason certain products can command a price premium over mainstream versions is that they offer an obvious source of

differentiation: one that marks out the consumer from their peers or provides an added sensory or health benefit due to the

production processes used in its creation, its ingredients or its rarity value.

Figure 24: French, US and Brazilian consumers are the most price conscious food and beverage consumers

QUESTION: Please tell us how much influence the following factors have in your choice of food and beverage products: Price

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The Future Decoded



Key takeouts and implications: customization/personalization is seemingly at odds with other important factors directing consumption behavior

• Consumers want additional choices, but complain that the complexity and volume of the decisions they

are required to make is overwhelming. A number of studies highlight that consumers are feeling

somewhat overwhelmed by choice during grocery shopping. Thus, choice will increasingly be perceived

as a burden as well as a valued luxury.

• Shoppers want products that simplify routines and choices, rather than offering an additional layer of

complexity. Any notion of personalized nutrition, particularly factors that rely on more time and effort

invested by the consumer, need to emphasize the long term impact on consumer lifestyles in terms of

simplification/ease.

• Price is a core determinant of food and non-alcoholic product choices. This is likely to be a barrier to all

forms of personalized nutrition presented earlier in this report. In particular, more expensive and

intricate procedures associated with nutrigenomics and nutrigenetics is irrelevant for the majority of the

population that cannot afford the high costs of either the testing procedures or the derived products.

Action Points



ACTION POINTS

The previous analysis presented a balanced perspective on the personalized nutrition trend. In doing so, it highlighted that

it is driven by two important consumer mega-trends: Health and Individualism. The coming together of these important

mega-trends is indicative of a significant opportunity in food and beverage marketing. However, inhibitors are apparent too,

such as a lack of consumer trust and awareness. This is particularly relevant surrounding the more complex notions of

personalized nutrition driven by new developments in nutritional science: functional food and drinks, and nutrigenomics.

The analysis also identified that personalized nutrition encompasses four specific sub-trends and associated product

benefits. Datamonitor recommends that industry players assess opportunities against each of these sub-trends and the

innovation platforms associated with them:

• Recognize the broad range of functional food and beverage product opportunities offering antidotes to the

myriad health problems facing consumers.

• Develop age, gender and occasion targeted food and beverage solutions.

• Be future focused and invest in the opportunities presented by developments in nutritional science such as

nutrigenomics.

• Embrace the notion of ‘attitude branding’ to appeal to consumers opting for lifestyle supporting and expressive

food and beverage products.

ACTION: Develop a broad range of functional food and beverage products offering antidotes to the myriad health problems facing consumers

Consumers are making active attempts to adopt healthier lifestyles, as the link between diet and good health becomes

more apparent. In addition, changing social demographics are leading to an increase in the number of long term health

problems reported across Europe, North America and Asia Pacific.

An aging society is commonly cited as a core reason behind an increase in diagnosis rates of certain illnesses such as

hypertension and osteoporosis. However, experts are also warning that rising obesity levels are resulting in more cases of

long term health problems such as cancer, liver disease and high blood pressure, including higher diagnosis rates in young

adults and children. This scenario provides an attractive opportunity for functional food manufacturers, as consumers look

to minimize the risk of developing a serious disease as well as optimizing their daily performance.

Figure 25 below is a reminder of the major functional food trends outlined in the previous chapter. The major implication

and opportunity is that consumers will be looking for products that offer them identifiable benefits in managing these health

conditions.

Action Points



Figure 25: These consumer needs offer opportunities for targeted food and beverage solutions

‘Sof

t hea

lth’

‘Har

d he

alth

’

DIGESTIVE HEALTH

HEART HEALTH

PHYSICAL HEALTH

BEAUTY/ APPEARANCE DRIVEN HEALTH

EMOTIONAL/RELAXATIONALHEALTH

BONE & JOINT HEALTH• SYNOPSIS: refers to developmental bone health in childhood as well as

long term health problems such as osteoporosis and arthritis• KEY PRODUCT TRENDS: calcium richness; vitamin D fortification

• SYNOPSIS: consumers are increasingly aware that digestive health can have a direct effect on general feelings of wellness, including skin health, immunity levels and energy levels

• KEY PRODUCT TRENDS: probiotics and prebiotics, high fiber/whole foods

‘PER

SON

ALI

ZED

NU

TRIT

ION’

AS R

EFLE

CTE

D B

Y FU

NC

TIO

NAL

FO

OD

TR

END

S

• SYNOPSIS: consumers are increasingly educated about heart health issues, including blood cholesterol levels, blood pressure, heart strength, and circulation and the ways in which dietary patterns affect heart health

• KEY PRODUCT TRENDS: high fiber/whole foods; cholesterol reducers; blood pressure reducers e.g. plant sterols and soy proteins

IMMUNITY HEALTH

• SYNOPSIS: this has a strong crossover with digestive health since digestive health, and the products promoting it, is heavily linked with defence

• KEY PRODUCT TRENDS: probiotics and prebiotics; antioxidant rich; vitamin & mineral fortification

• SYNOPSIS: psychological research has shown that self-esteem, popularity and happiness is more heavily tied with appearance than anything else. So, ‘feeling good’ in a physical health sense is strongly related to ‘looking good’

• KEY PRODUCT TRENDS: ‘nutricosmetics’ in the form of beauty food and beverages and oral beauty supplements

• SYNOPSIS: involves feeling physically good, especially in terms of energy/vitality. Can involve an artificial energy boost or more sustained natural energy boost. The trend/need state has links with natural foods, de-tox diets and cleansing the mind and the body

• KEY PRODUCT TRENDS: all forms of energy and vitality boosting products

• SYNOPSIS: researchers and consumers alike are beginning to understand the powerful links between nutrition, mood and mental health. These products are aimed at helping people with hectic, stressful lifestyles

• KEY PRODUCT TRENDS: mood foods – products formulated with relaxation ingredients such as GABA and botanical extracts and flavorings

COGNITIVE HEALTH

• SYNOPSIS: food and drink products can improve brain function, memory and alertness. These "cognitive boosters" or "smart foods" are edibles fortified with amino acids, vitamins and proteins that stimulate brain function

• KEY PRODUCT TRENDS: Omega-3 fortification


Recognize that targeted functional food and drinks offering bone and joint and oral health benefits will have added relevance as populations age

Bone and joint health refers to developmental bone health in childhood as well as long term health problems such as

osteoporosis and arthritis. Historically, one of the top food/food component and health benefit associations has been dairy

products for bone growth and osteoporosis prevention. Indeed, when the International Food and Information Council (IFIC)

Foundation explored US consumers’ awareness and consumption of nutrients for certain health benefits in 2008, the diet

and health relationship between calcium-fortified foods or beverages and the promotion of bone health was the most

commonly recognized relationship, with 89% of respondents aware of the association.

In addition, the importance of a diet rich in calcium and vitamin D for children’s bone development is well-established.

According to IFIC’s research, well over three-quarters of US consumers also claimed to be aware of the diet and health

relationship of Vitamin D for the promotion of bone health.

Action Points



Aging populations, however, have made the diet and bone health connection even more pronounced in recent years.

Although bone and joint conditions such as osteoporosis and arthritis are caused by various factors, types of food and drink

consumed can play a big part in reducing symptoms. This means there are market opportunities for manufacturers to offer

food and drinks products specially formulated to give individual consumers particular bone and joint health benefits

according to whether it is for bone development (i.e. younger consumers), general bone health (all ages), or helping ease

bone and joint ailments (predominately aging consumers). The high awareness of the nutrient-health benefit association

also facilitates short term opportunities to capitalize because consumer education is not such a determinant of whether

shoppers will buy the products.

• Target the need for bone development in childhood and osteoporosis protection in late adulthood –

Nippon Milk Community: Mainichi Honebuto Mitsu no Chikara [every day thick bones power of three] is a

functional milk drink with two active ingredients, calcium and MBP (milk basic protein), which promote calcium

absorption, raise bone density and help to prevent osteoporosis. A third significant ingredient is N-acetyl

glucosamine (NAG). This combination, which is formulated to target people in their 50s and families with growing

children, helps develop strong bones and smooth cartilage. Targeting housewives in their 30s to 50s, Morinaga

Calcium no Tatsujin [calcium master] milk drink is fortified with 100% milk calcium. This product has FOSHU

(Food for a Specific Health Use) approval to claim that it contains substantial calcium which maintains the bone

health of young women and may prevent osteoporosis. It contains 400mg calcium (more than half of the daily

requirement) per 200ml serving. The milk calcium is from fresh milk and is readily absorbed. This drink also

contains vitamin D to promote calcium absorption. Elsewhere, Maeil Black Soybean Milk takes a less

conventional approach to maintaining bone health. It is mainly made from black sesame, black soybean, black

rice, sea weed, mulberry and black garlic and is said to maintain bone health.

• Recognize the new delivery formats: bone and joint health benefits are also being touted in new

categories rather than just dairy and supplements – in Japan, the Nissui O-sakana Sausage is a fish

sausage that contains enough calcium to make a nutritional supplement claim on the package. One sausage

contains the equivalent calcium of 300ml milk. Elsewhere, in 2007, Osteoblast Beverages LLC launched the

"stronger bones longer life" Osteo line of high calcium beverages in the US. Company literature states the line is

"loaded with calcium, vitamins and minerals" and is “scientifically formulated to supply approximately half the

daily calcium needs in a healthy, great tasting fruit tea (tisane) and juice drink with added nutrients to help

maintain and build strong bones.” A tisane (fruit tea) is the French word for an herbal infusion that contains a

mixture of dried flowers and fruits but does not contain tea.

• Supplements will need to offer something compelling in light of more sensually appealing bone and joint

health food and beverage solutions – for example, touted as a “new bone health supplement with a

difference,” OsteoMarine from Wassen International Ltd has recently been introduced to UK consumers. It

reportedly “harnesses omega-3 essential fatty acids with other nutrients that have been shown to increase

calcium absorption and to help bind calcium to the bone matrix.”

• Like bones and joints, active ingredients are also important to support the desire for better oral health –

with the introduction of Trident Xtra Care with Recaldent, which “is clinically proven to actively protect,” Cadbury

Adams LLC is touting the ability to help US consumers strengthen and rebuild tooth enamel. Recaldent is a

unique form of calcium derived from milk that increases tooth re-mineralization (strengthening) over and above

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just the salivary stimulation from regular sugar-free gum. Cadbury Adams USA LLC holds the exclusive rights in

the US to use Recaldent in gum and Trident is the only gum brand that contains the ingredient.

Figure 26: Bone, joint and tooth strengthening food and beverages are all forms personalized nutrition

through targeted functional products

Source: Datamonitor/ Product Launch Analytics Database D A T A M O N I T O R

Offer a broad range of products promoting heart health

Heart health is a vital health and wellness need. Increasing stress levels and rising obesity rates play a huge role in the

increasing number of people experiencing heart problems, such as hypertension or high blood pressure. These conditions

not only require a pharmaceutical remedy, but effective diet management as well. In addition, the high prevalence of

overweight and obese individuals has obvious negative connotations for heart health which significantly broadens the

appeal of such products.

Overall, consumers are increasingly educated about heart health issues, including blood cholesterol levels, blood pressure,

heart strength, and circulation, and the ways in which dietary patterns affect heart health. As a result, heart health will

continue to be a platform for offering targeted nutritional solutions, both because of its prevalence as a disease and the

relative ease with which products can be formulated to offer targeted heart health benefits.

A wide range of nutrients and ingredients have positive implications for health. Formulation/fortification with omega-3 fatty

acids, high fiber and whole grains, monounsaturated fats, B vitamins, folate or folic acid, high antioxidants, soy protein/soy

and plant sterols are all innovation platforms geared towards offering heart health claims.

There are two key macro-trends in the heart health food and drinks market: products that are low in unhealthy ingredients

and those that are high in heart protecting bioactive ingredients. The broad opportunities in offering heart healthy products

stem from the fact that products can target general heart concerns. In addition, specific heart health concerns such as

cholesterol or high blood pressure are being addressed with specific solutions that are distinguishable by formulations

mentioned above.

• Cholesterol reducing benefits is likely to be an important innovation platform, especially as the

population ages – YOW Snacks, including Roasted Salted Almonds, promote various benefits based on the

fact that they offer "eight servings of almonds.” Promotional literature highlights that “almonds are rich in vitamin

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E and magnesium, as well as dietary fiber, calcium, iron, phosphorus, iodine, folic acid, zinc, copper and

potassium. They are a great source of monounsaturated fat, which lowers bad LDL cholesterol and raises good

HDL cholesterol. Eating just one and a half ounces of almonds per day may lower your cholesterol and reduce

the risk of heart disease."

• Target weight conscious consumers with appetite suppressants and metabolism boosters to promote

weight loss for longer term heart health – TRIM-U is a grape-flavored energy drink which targets weight-

conscious consumers. The energy drink is designed to “boost energy and metabolism and promote weight loss.”

Enhanced with fat-burning and appetite-suppressing Hoodia, a plant native to South Africa, the liquid formula is

“optimized for the quick energy delivery critical to dieters and fitness enthusiasts.” TRIM-U is sugar-free and is

further bolstered by pharmaceutical grade caffeine, taurine, green tea and garcinia cambogia, all of which

promote a higher metabolism and weight loss. Mars Snackfood’s CocoaVia circulation line in the US promotes a

healthy body through healthy circulation. Company literature states, "CocoaVia circulation contains 200

milligrams of cocoa flavanols, a level that research suggests may support healthy blood vessel function and

circulation. Enjoy the rich taste of CocoaVia circulation, formulated to promote a healthy blood flow - from head

to toe. (The) products do not contain cholesterol lowering plant sterols. Here's what it has to offer: under 150

calories per serving, three grams of fat or less per serving—delicious taste of cocoa."

• Professionally developed heart health products may help boost consumer trust – WatchDog Nutrition

snack bars were launched in response to “the increasing demand for convenient, tasty, satisfying foods that help

people prevent and manage diabetes and heart disease.” Invented by doctors, nutritionists and fitness experts,

WatchDog Nutrition snack bars are reportedly “formulated with nutrients and ingredients scientifically proven to

help people maintain heart-healthy lifestyles or diabetic diets.”

• Products offering blood circulation benefits are likely to gain more acceptance and interest in the

coming years – Ginger Soya Bean Milk is the latest addition to the 'Vitasoy' brand range in Hong Kong. The

spicy drink professes to strengthen the blood circulation and offer warmth to the body in winters (the claim that

this soymilk warms the body is unique).

• Offer heart health benefits through everyday cooking products and meal components – The Republic of

Tea recently extended its Republic of Tea line of products in the US to include Stir Fry Tea Spice. It can be used

as a rice seasoning, as a rub, or for stir frying. Literature states: "[the product is a] unique, versatile stir fry tea

spice with hints of ginger and lemongrass. Not only does it offer a distinct enhancement to dishes, it also gives

them a healthy boost. Green tea helps to lower cholesterol and is high in vitamins, minerals and antioxidants."

Elsewhere, Hearts&Minds LLC has launched Hearts&Minds Peanut Butter with Olive Oil and Omega-3 in the

US. Promotional literature reinforces the heart health positioning by stating that the “natural peanut butter is the

first peanut butter made with consumers' heart in minds, and is the first to use olive oil and omega-3

(EPA/DHA)."

• Aim heart health products at older consumer demographics – for example, PBM Products LLC offers an

‘adult nutritional beverage’ called A-Soy in the US. The vanilla flavored nutritional drink "provides Soy Nutrition

for Life, a complete nutrition that can help reduce heart disease risk, improve diet, and promote overall

wellness." Although health-oriented nutritional beverages are nothing new, this product seems somewhat more

Action Points



specific in its claims and positioning with the "adult nutritional beverage" sub-branding to the reduction of heart

disease risk claim, as well as omega-3 and fiber claims.

• Empowering consumers with DIY health kits to help them monitor important health issues could be a

future step in nurturing a more intimate relationship between food manufacturers and consumers – in

2007, Kellogg partnered with Biosafe Laboratories and Omron Healthcare to develop Smart StartHealthy Heart

Kit which is designed to test essential components that are needed for a strong heart. Some 350,000 kits (which

include a finger prick to collect the blood sample and a bandage) were made for the campaign. According to

Promo Magazine (April 2008), around five million boxes of the Smart Start brand encouraged consumers to mail

in for a cholesterol test and wellness kit since the summer of 2007. About 20 US retailers, including Supervalu,

Jewel-Osco, Food Lion and Albertsons, participated in the promotion with in-store displays. Customers who

bought three boxes of Smart Start cereal or bars received a free kit. One test is a total cholesterol reader, which

is the most widely used test to screen for the risk of developing heart disease. The other is a full cholesterol

panel, which provides the consumer with a complete cholesterol profile. The consumer then fills out the supplied

form, collects a personal blood sample and posts it back to the company. Laboratory results are mailed back

within three working days of test receipt for a $10 fee for a report on total cholesterol or $15 for a full cholesterol

panel, which includes analysis of total cholesterol, HDL, LDL and triglycerides. The company is quoted in trade

press as saying that it has found that “if you deliver a really meaningful health and wellness value to consumers,

they take action…the kits seemed to be an ideal way to connect those things, create teachable touch points and

really spur consumer action.” The essence of the initiative is thus focused on developing deeper consumer

interaction (another form of personalizing products).

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Figure 27: Heart health products are prevalent across sectors and categories and range in claim specificity


Develop digestive health products that communicate both ‘softer’ and ‘hard health’ benefits associated with immunity and gut ailments respectively

Consumers are increasingly aware that digestive health can have a direct effect on general feelings of wellness, including

skin health, immunity levels and energy levels. Products high in fiber, probiotics or prebiotics are all increasingly

understood to be beneficial to the digestive process. This is reflected by the relative success of food and drink products

such as Activia, Yakult and Actimel in numerous markets.

Probiotics contain 'beneficial bacteria' and are most commonly associated with solving gut problems. Probiotic bacteria are

tasked with the final stages of gastrointestinal digestion, processing food components which are most difficult to digest into

molecules that provide numerous benefits. Probiotics have lead the way in helping consumers achieve better gut health,

but the younger and less well known field of prebiotics is tipped to deliver some exciting new developments in the future.

Prebiotics are non-digestible food ingredients that beneficially affect the consumer by selectively stimulating the growth

and/or activity of one or a limited number of bacterial species already resident in the colon, thus helping to improve health.

There are also potentially broader messages that can be utilized when marketing digestive health products. Indeed,

manufacturers are also promoting probiotics as being integral to maintaining overall health and wellness levels. This is

because good digestive health is closely related to the idea of bodily cleansing from the inside, and therefore, to notions of

detoxification. There is also a crossover between digestive health and boosting immunity because the most common way of

achieving the latter is though the inclusion of probiotics in ‘daily dosing’ products such as Yakult and Actimel.

Action Points



• Develop an expansive line of branded digestive health products in recognition of the broadening

application of probiotics and prebiotics and consumers’ growing awareness of such ingredients – eager

to “give people food and beverage options, both inside and outside of the dairy,” the Kraft LiveActive line offers

numerous food and beverages promoting digestive health. Recently, Kraft added LiveActive cereal and

LiveActive On The Go drink mix to the line. Both new products contain a prebiotic fiber called inulin. These new

products are in addition to LiveActive natural cheese snacks from Kraft and LiveActive cottage cheese that were

introduced in 2007.

• Do not overly focus on the nutritional message and recognize the broader benefits (or ‘consideration

set’) of shoppers such as convenience – in Asia, Yakult Honsha: Yakult BF-1 lactic acid bacteria drink

contains live Bifidobacterium bifidum BF-1 strain which can reach the stomach alive. This company leads the

market in live lactic acid drinks with its mainstay product Yakult, which has been on the market since 1935 and

contains Lactobacillus casei Shirota. This new functional drink contains more than one billion Bifidobacterium

bifidum BF-1 strain per bottle. Interestingly, the drink is also packed in a bottle with what appears to be a

uniquely shaped lid (see Figure 28) which enables it to be easily consumed. Elsewhere, Cascade Fresh Activ8

Organic Probiotic Crunch Bar—also pictured below—is claimed to provide “an easy, on-the-go way to get

exceptional probiotic benefits.” The wrapper states that the product contains "5.55 billion CFUs of live probiotic

cultures,” with the bar said to “provide more live probiotic cultures than you'd get in 12 cups of typical yogurt."

Though probiotic snack bars have already been introduced, none have made such a specific claim regarding the

live probiotic cultures, according to Datamonitor’s Product Launch Analytics database product report.

• Combining the benefits of the established probiotic cultures with prebiotics is likely to be a feature of

digestive health products going forward, as well as more interesting flavor profiles to enhance the

sensory appeal – a pumpkin flavor of Namyang Natural Start Vulgaris Fermented Milk was introduced to the

Korean market in 2008, presented in a shrink wrapped package containing four 150ml plastic bottles. Not only is

the pumpkin flavor new for a milk drink with probiotics, but it also contains “rich probiotics and prebiotics [and] is

made using only natural ingredients." It is said to be a "preservative-free, artificial color-free and artificial flavor-

free yoghurt.”

• Recognize the broadening competitive threat surrounding the innovation diversity of probiotics and

prebiotics – there are even examples of personal care products capitalizing on the trend. In the US, for

instance, SK1N Probiotic Systems Body Lotion is said to contain probiotics and natural nutrients that “give skin

the moisture it craves.” The "anti-aging formulation" from SK1N Probioticis Systems is touted as "a revolutionary

way to softer, smoother skin that will change the way you moisturize." Elsewhere, the Swedish Ellen brand of

probiotic tampon was recently launched on the market in Germany and Switzerland. The product concept is to

“help women maintain good vaginal health using natural, self-regulating and probiotic innovations.” The unique

substance on which Ellen is based is "Lacto Naturel," a mixture of patented beneficial lactic acid bacteria that

can strengthen women’s defense against vaginal infections.

• Recognize that digestive health product opportunities are also apparent and are currently being pursued

in pet care – Bacterfield Formula ProBiotic Dry Dog Food is "a premium food for dogs that contains live probiotic

bacteria." Available in the US, the "formula infuses the bacteria inside the kibble, allowing it to remain stable and

have a shelf life for at least 15 months." The range also offers additional specificity in the form of age specific

targeting: it comes in Puppy, Adult, Adult Plus, Sensitive and Senior varieties.

Action Points



• Consider communicating digestive health in differing terms – the idea of gut/digestive health is not

intuitively very attractive, so manufacturers may want to consider using other terms rather than using probiotics

and prebiotics. After all, these have a somewhat medicinal sound and arguably contribute to perceptions that

functional food and beverages are somehow adulterated versions of conventional alternatives. In the US, the

new line of Wildwood Organics Probiotic Hummus is said to be made with "the live food advantage, promoting

healthy digestion."

• Using probiotics and prebiotics in products targeting infants, toddlers and children has particular

influence given their comparatively underdeveloped immune systems – Advance EarlyShield "for immune

support" in the Similac Infant Formula line is touted as "the first and only infant formula with a unique blend of

prebiotics, nucleotides and antioxidants: nutrients naturally found in breast milk. Plus, it has DHA and ARA,

ingredients shown to help your baby's brain and eyes develop." The SimplePac is a resealable plastic canister

with a “grip-flip-scoop design that simplifies feeding time." Literature for the product highlights how its “comfort

grip lets you hold your baby and the formula, too. Hinged design means no more hide-and-go-seek with the lid.

Handy built-in scoop holder means no more digging for the scoop." Elsewhere, Robert's American Gourmet

snack line targeted toward kids and healthy snackers is expected to soon include Smart Puffs with Probiotics

and Simply Booty Vegan snacks. The Smart Puffs are claimed to be the “first snack food containing increased

active cultures in the Puffs' dry cheddar power to aid in digestion.” Datamonitor’s Product Launch Analytics

database identified that this is the first time that the probiotic feature has found its way into puffed snacks, which

strays even further from the chilled dairy product roots of probiotics.

Figure 28: Probiotics and prebiotics are being offered in tandem and across a broader range of product

formats


Action Points



Pursue opportunities in the relatively niche area of cognitive health by capitalizing on the desire for optimal day to day performance in all forms of life

Consumers are becoming more interested in functional food and beverages that enhance mental performance, as a

number of studies suggest there is a link between mental health problems and an individual’s diet. Indeed, nutrient deficient

diets have been cited as one of the main reasons behind the increase in both short and long term mental health problems.

For instance, in 2006, research conducted by food campaigners Sustain and the UK Mental Health Foundation suggested

that dietary changes may be responsible for the increased diagnosis rate of mental illnesses. Compared to 50 years ago,

consumers are eating less fresh food and more saturated fat and processed foods. Furthermore, changes in industrialized

farming techniques have led to changes in the nutritional profile of meat. In 1956 for example, a chicken carcass consisted

of 2% fat, while in 2006, 22% of a chicken carcass was made of fat. A change in the food fed to chickens was also cited as

a reason behind there being less omega-3 fatty acid in chicken meat, a nutrient which is said to help aid brain development.

An aging society also means more people are becoming vulnerable to long term mental health problems such as

Alzheimer's disease, while a larger proportion of younger consumers are reportedly suffering day to day mental health

problems such as fatigue and attention deficit disorders. Food and drink products can improve brain function, memory and

alertness. These 'cognitive boosters' or 'smart foods' are edibles fortified with amino acids, vitamins and proteins that

stimulate brain function. There are growth opportunities here for industry players with a family friendly image because

children in particular are a key target audience for such products. In general, more consumers want to feel good about

themselves (or their children) in terms of cognitive functioning, and manufacturers can make specific claims (e.g. boosts

memory, aids concentration) to appeal to these aspirations.

However, despite the growing interest in functional foods that enhance mental performance, consumption levels of these

food types remain relatively low. Only 22% of Americans purchase foods that enhance mental performance, IFIC research

published in 2007 revealed. That said, there has been an increase in products that help boost mental wellbeing over both

long and short term periods.

• SAM-e Complete is marketed as a “safe and effective supplement to boost the body's production of SAM-e and

help achieve a healthy mood every day.” SAM-e (S-adenosyl-methionine) is a naturally occurring molecule in the

body that helps maintain a healthy mood. This molecule can become depleted due to poor diet and age. Studies

have shown that SAM-e enhances mood by promoting a healthy balance of neurotransmitters, dopamine and

serotonin, which are part of overall healthy brain cell functions.

• It is quite a battle in the oils market for 'better for you' products and the addition of omega-3 DHA seems to be an

emerging theme to elevate product status. When introduced, Crisco Puritan Canola Oil with Omega-3 DHA was

promoted as "the first canola oil with omega-3 DHA—the most complete form of omega-3." The product is

marketed as being suitable for use in “everyday cooking and baking without depleting the benefits of the omega-

3's.” Similarly, Pompeian OlivExtra Plus Canola Oil and Extra Virgin Olive Oil is now offered in a Omega-3 DHA

variety. The product is said to support the brain, eye and heart health throughout life and is cleverly positioned

as "the smarter cooking oil.”

• IQ Plus Brain Drink, distributed in Austria and Germany by IQ Plus GmbH, is a cocoa and milk drink enriched

with phosphatidyl serine which, according to a packaging tag, "improves brain performance.” Additional copy

states that the product "contains 100mg phosphatidyl serine per 200ml... one bottle a day improves brain

Action Points



function, particularly at times of heightened brain activity… [the product] improves learning capacity, awareness

and concentration.” Elsewhere, TrueToniqs Brain Toniq, touted as the "world's first organic, botanical-based,

non-caffeinated think drink specifically designed for those who need more mental focus and clarity," is said to

have no chemical preservatives, caffeine, or sugar, "just effective herbs, natural compounds, and organic agave

syrup”. Reported by Productscan in January 2008, its main ingredients are "eleuthero root extract (also known

as Siberian ginseng), rhodiola root powder, wild-crafted blue green algae extract, DMAE and organic agave

nectar."

• In 2008, Hindustan Unilever Ltd added new flavors to its existing range of snacks Brainy Bite, Brainy Bar and

Brainy Mix for its consumers in India, under the brand name 'Kissan Amaze'. The bar is said to give 33% of the

key brain nutrients children need daily. Similarly, in the US, Kellogg's LiveBright Brain Health Bars are

individually wrapped snack bars. The label for the Live Bright Dark Chocolate Vanilla Bar is flagged "DHA

Omega-3 100mg (per bar)." iQ3 Brainstorm! Fish Oil Cereal Bars in the UK are described by the company

website as "a delicious and nutritious cereal and real fruit bar with Omega-3 and Omega-6, which may help

concentration and brain and eye function... high in DHA for the healthy development and function of the brain,

eye and nervous system.” The package label assures that the cereal bar does not have a "fishy taste."

• The Beech Nut DHA Plus line of baby food, available in the US, is formulated with "DHA to support healthy brain

and eye development… plus prebiotic to support healthy digestion."

• Sonti Mix Juice Drink is offered in Omega 3, 7 Fruits Vitamins, Berry's and Citrus varieties. The Omega 3 variety

is said to reduce concentration of cholesterol in blood, strengthen the immune, nervous and circulatory systems,

inhibit inflammation, help structure the brain and retina and increase vitality and work ability.

• In Korea, Yagult Brain Q 148 Energy Drink is a mixed drink that contains palatinose and substances that break

down amino acids. Packaging literature states, "Palatinose supplies energy to our brains while these substances

increase our concentration."

• In South Africa, Rama Idea! Margarine is described as “a low-fat spread made with nutrients which are important

for the brain.” A product from Unilever South Africa, it is formulated with Omega-3, Omega-3 DHA, ALA, and B

vitamins.

• Wonder+ Headstart with Omega-3 DHA 100% Whole Wheat Loaf is sold in Canada. Package copy states that

"Wonder+ Headstart has been developed with their little brains in mind. Made with omega-3 DHA in every tasty

slice to support the normal development of the brain, eyes and nerves."

• Label copy for Nerd Energy Drink in the US touts that consumption will "enhance brain focus [and] memory

retention." It contains caffeine, B vitamins and amino acids, as well as DMAE, vinpocetine, huperzine A and

Chinese ginkgo biloba.

Action Points



Figure 29: Omega-3 DHA is typically the core ingredient for the proliferating lines of brain nourishing food

and beverages


Use antioxidant rich ingredients to tout immunity health against the rigors of daily life

As mentioned above in the discussion surrounding the opportunities associated with digestive products, immunity boosting

NPD has a strong crossover with digestive health since the latter (and the products promoting it) is heavily linked with

defense/protection. Indeed, Kraft is currently looking to develop the LiveActive food range, formulated to promote digestive

health and based on active ingredients including probiotics and the prebiotic inulin. The key marketing premise here is that

“the gut is the defense system for the whole body”, maintained by the company’s website promotion for LiveActive

The idea of a proactive approach to immunity defense appeals to the high proportion of consumers who feel overwhelmed

by their daily obligations (see Datamonitor's report Consumer Lifestyles and Work Life Balance, DMCM4616) and who are

unable to suffer the consequences of illness (i.e. lost time through the need to rest and recuperate). Therefore the idea of a

strong immunity resonates with consumers today even more so than ever before. Busier lifestyles mean that it is harder to

meet nutritional requirements using traditional food and drinks, while less developed countries still have high nutritional

deficiencies.

The most widely-used ingredients incorporated into product formulations in order to tout immunity health are probiotics and

antioxidant rich ingredients, and use of these is undoubtedly widening across categories and geographies. In terms of

product format, while soft drinks and dairy represent the main established categories in immune health new product

development NPD, the range of products offering these benefits is steadily widening.

Action Points



As with all functional food and drinks, an aging population will continue to drive the demand for food and drinks providing

immune system health. The appeal of immunity boosting products has increased because the delivery formats have

become far more compelling and sensually appealing than more traditional medicinal immunity boosters.

• Combine probiotics with antioxidant rich ingredients – in the US, GoodBelly fruit drink combines

antioxidant-rich fruit and probiotics for a healthy immune system. The range was developed by organic and

natural foods industry pioneer Steve Demos and is touted as “the first fruit-based dairy-free, soy-free, wheat-free

and vegan probiotic product of its kind in the US”. The product is available in two product lines: GoodBelly

Probiotic Fruit Drink and GoodBelly Multi Probiotic Fruit Drink. The latter features a concentrated dose of “20

billion live and active probiotic cultures, vital minerals and 100% daily value of nine essential vitamins.” Another

interesting combination is the Metroelectro Micronutrient Water with Antioxidants + Electrolytes. The line is

touted as "a combination of pure water to hydrate the body, antioxidants to protect cells from damage,

electrolytes to replenish essential minerals, and zinc to boost the immune system." The formulation claim

surrounding micronutrients, in combination with antioxidants and electrolytes, is something unusual for the water

category.

• Give existing healthy brands an ‘antioxidant boost’ – in 2008, NESTEA launched Green Tea Citrus and Diet

Green Tea Citrus products with 50% more antioxidants than before. Both products contain 50% more natural tea

antioxidants, with 96 milligrams of flavonoid antioxidants per eight fl.oz. serving according to creativemag.com.

• Target the immunity need state with anti-bacterial oral health products – Wrigley's Eclipse Chewing Gum

with Magnolia Bark Extract (MBE) is said to include "a natural ingredient that is proven to help kill the germs that

cause bad breath, not just mask it." In particular, Datamonitor’s Product Launch Analytics Database notes that

Magnolia bark extract is a new ingredient for the chewing gum market.

• Continually track the latest ‘in-vogue’ antioxidant rich fruits and assess the commercial opportunity –

food and beverage marketing can capitalize on consumers’ new found interest in differing ‘superfruits’ and other

natural ingredients that offer additional antioxidant benefits over and above standard ingredients. Incorporating

these ingredients/flavors into products creates an additional ‘healthy halo’ around a brand. Red wine grape

extract appears to be a new functional ingredient for fruit drinks. For example, Embodi All Natural Fruit Juice

Blend beverages are claimed to be “the first beverage[s] to contain red wine grape extract made from the skin,

seeds and stems of red wine grapes, and to have all of the benefits of red wine with no alcohol.” New and exotic

superfruits also continue to be a key innovation theme. For instance, Revolution 3D Blends 'Super Fruits,' Multi-

Vitamins & Premium White Tea is positioned as a “multi-dimensional beverage…a first-of-its-kind combination of

antioxidant-rich 'superfruits', multi-vitamins, and premium white tea in an all-natural drink.” Another example is

the Novelle Maqui Superberry, a deeply purpled berry from the Patagonia region, traditionally used by the

Mapuche Indians for supporting stamina, increasing strength, and promoting healthy immune response. The

Maqui Superberry has reportedly “undergone a proprietary ultra filtration process to offer one of the purest and

highest antioxidant superfruits in the world.” Novelle claims to use only the highest quality natural ingredients,

harvested by the Mapuche Indians, utilizing sustainable harvesting practices. The tactic of using varietal fruits as

a way to market a more premium product is on the rise. In the UK, Selfridges & Co recently introduced its

'Mulberry Fair' juices. Web literature for the product states that "Mulberry's levels of antioxidants are 79% more

than blueberries and 24% higher than those found in cranberries." Also in Europe, Amandin Bebida de Chufa,

which is new to the market in Spain, is a drink based on the plant chufa sedge and is tagged "the Mediterranean

Action Points



alternative to soya." The beverage is said to be high in antioxidants, vitamins A, C and E, minerals such as zinc,

selenium and magnesium, and is also said to have a prebiotic effect.

• Re-enforce the immune defense credentials by re-iterating the protective credentials in the brand name

or brand slogans – in France, the Jus de Fruits Rouges product is marketed under the Joker Vital Protect

brand name. The fruit juice is claimed to be naturally enriched with the antioxidant polyphenols from the red

fruits contained in the juice. According to Datamonitor’s Product Launch Analytics Database, lignonberry

appears to be a fruit on the rise thanks to its health properties and even more so with the addition of antioxidant

polyphenols from red fruits for this new beverage. In the US, Next Generation Organic Dairy has launched

Wisconsin Raw Milk Organic Probiotic Cheese. The product is said to be made with certified organic raw milk

and GanedenBC30, a "probiotic ingredient" manufactured by Ganeden Biotech. The tag line reinforces the

immunity benefits by stating that the product is "fortified with GanedenBC30 Probiotic… boosts the immune

system."

• Innovate to protect bioavailability – dosage and delivery are important factors to consider when deciding

whether to create a supplement or functional food, especially with bioavailability becoming a more important

concern. Details increasingly matter when it comes to food and beverage product choices today. Today's health-

conscious consumers want to derive the maximum nutritional value from the food and drinks they already enjoy.

Bioavailability is an important part of this. With this in mind, proving bioavailability may well become an important

part of successfully backing up health claims. Working on the premise that vitamins deteriorate in water over

time, Activate Drinks are packaged in bottles featuring a special top, similar to the VIZcap, in which the vitamins

and other supplements are stored separately in order to protect their freshness. Elsewhere, the Probiotic Health

Daily Probiotic Enhanced Flavored Water Beverage range in the US features 'SmartTop' caps which facilitate "a

more effective delivery system for probiotics.” The SmartTop protects the probiotics until the user is ready to

enjoy the beverage. The label for the Citrus Boost variety of the beverage reads "Effective probiotic delivery…

Our push-button cap is one of the most effective methods to deliver probiotics because it keeps the probiotics

protected until you are ready to enjoy. [It] is formulated with specific strains of live cultures that will help naturally

boost the 70% of your immune system located in your digestive tract. Press fully to pop seal and release

probiotics… Shake to mix… Observe color change… No preservatives."

• Avoid using scientific jargon that could potentially confuse consumers – POM Wonderful, for example, is

one of the best selling functional beverages in the US, with sales of $80 million alone in 2006. Marketing material

to support the pomegranate juice has typically been simple and effective. For example, instead of making

continuous reference to the different types of health components in the fruit, advertisements to support the drink

simply use the strapline “the antioxidant power of pomegranate juice”, something that consumers can easily

identify with. Furthermore, POM Wonderful uses graphic illustrations of the bottle to highlight the perceived

health benefits associated with consumption.

• Consider introducing consumers to the notion of ‘antioxidant daily dosing’ – daily dosing products are

relatively common among functional food and drinks, offering quantifiable nutrient benefits to help consumers

reach recommended consumption targets. In Australia, AntiOx Shots are said to provide consumers “with a daily

shot of antioxidants.” Datamonitor’s Product Launch Analytics database noted that the shot concept is somewhat

new for antioxidants, especially one based on a flavor pairing of mangosteen and pomegranate.

Action Points



Figure 30: Antioxidant rich ingredients and probiotics are being used to boost immunity health

Source: Datamonitor/ Product Launch Analytics Database; creativemag.com D A T A M O N I T O R

Capitalize on the strengthening crossover between health and beauty

There are three major innovation opportunities associated with the trend towards ‘oral beauty/nutricosmetics’. Not only

does this exemplify a trend towards ‘industry convergence’ (defined as a ‘blurring’ of boundaries between industries

Action Points



whereby food and beauty companies are increasingly targeting the same consumer need states), it also recognizes the

depth and sophistication of the health and wellness trend in that consumers are making the connection between a healthy

inside and a beautiful outside. Overall, there are three major innovation opportunities associated with this:

• On the premise that the foundation of any beauty regime should be good nutrition, food and drink companies are

launching beautifying food and beverages and, in doing so, giving a new meaning to the idea of eating and

drinking your way to a better appearance.

• The ‘beauty from within' trend is gathering momentum as supplementing diets to enhance looks becomes more

popular. Growing numbers of consumers are purchasing oral beauty supplements (OBSs), which are marketed

on the basis of the beauty benefits they can provide such as reducing wrinkles or strengthening and beautifying

hair.

• Traditional cosmetics companies are increasingly investigating how food ingredients can be beneficial to the skin

and hair. This makes all the more commercial sense given the increasingly holistic view if nutrition.

The concept of ‘beauty from within’ or ‘oral beauty’ is not a radically new one. Consumers in the Asia Pacific region,

particularly Japan and China, have a long history of drinking teas for their beautifying properties. However, the trend has

expanded geographically and into new categories and occasions as manufacturers across the globe look beyond

conventional beauty formats to provide cosmetic benefits from a nutritional perspective. This explains the increasing

popularity of ingredients such as collagen, coenzyme Q10, ginseng, aloe vera, green tea, rooibos and omega-3 in food and

beverage products ranging from anti-aging teas and jams to collagen-boosting dairy and confectionery products. Some

interesting examples are presented in Figure 31 below.

Action Points



Figure 31: These products demonstrate just some of the different formats, geographies and ingredients used

in beauty food and beverages across the globe

Hello Beauty OligoCollagen

Marshmallows contain ingredients

which promote healthy digestion

and enhance bioavailability of the beneficial collagen

Products such as Danone's Essensis

also have the potential to bring a

new kind of consumer to oral beauty products

The "Look Good Beauty Tea" is

offered as the first and only beauty tea line in the US with

ingredients clinically prove to carry

significant beauty and wellness benefits

Proof that nutricosmeticshave market presence

outside of Asia, this Sour Milk Drink has been

formulated especially for women and is available in Russia under the Neo Idea 3D Regeneo Formula New

Beauty name

Nestlé’s Day & Night yoghurt range in

Hong Kong epitomizes the converging of

beauty and nutrition in a number of

ways, especially the brand name

Even instant coffees are touting skincare benefits in Japan. This Nescafe Excella instant coffee premix is fortified with

collagen for skin care. To re-enforce the health

positioning, it contains half the calories

compared with the standard product”

Specificity of the beauty benefit is likely to

emerge as a competitive platform for future

iterations of beauty food and beverages, e.g. the

Beuaty bottled water product by Works With

Waterin the UK claiming to be able to combat

acne

An update of a fairly well established delivery

format for beauty products in Japan in

Suntory Capsela UruoiShinto Capsule contains

2,000mg collagen, vitamin B1 and B6 and

floating ceramidegranules that float and are visible in the drink

In 2008, Fuji Film Group’s Astaliftbrand of skincare and beauty products (pictured above left)

introduced a new health drink with ingredients claimed by the company

“to be 1,000 times more effective than co-enzyme Q-10”. The Astalift Beauty

Drink contains astaxathin, polyphenol, vitamin C, hyaluronic

acid and marine collagen according to a Productscan report in April 2008

Source: Datamonitor / Product Launch Analytics D A T A M O N I T O R

Oral Beauty Supplements (OBSs) are dietary supplements (not food or drink) marketed as having beauty benefits. Growing

numbers of consumers are purchasing dietary supplements that are marketed on the basis of the beauty benefits they

provide such as reducing wrinkles or strengthening and beautifying hair. Illustrating this, Datamonitor’s 'Seeking Beauty

Through Nutrition' report (BFCM1078) identified double digit growth in oral beauty supplements consumer spending in

Europe and the US between 2000 and 2005. Although this is expected to taper off until 2010 (largely a reflection of market

expansion/maturity), market growth is forecast to exceed that of skincare products overall.

Action Points



Figure 32: Supplements targeted primarily or exclusively at beauty concerns are growing in number

The Skin Perfection line from Boots

reflects how additional private label competition

will be a likely development as the market establishes

more credibility with maturity

More products will be launched that reflect the overlap between beauty

food and drink and oral beauty supplements. Rokko Butter Q.B.B. Coenzyme Q10 Candy Cheese and

Ajinomoto Tsuyaya reflect this

Age specificity is also apparent in

some launches. For instance, KaneboEvita Royal Suplicontains essential health and beauty

ingredients for women in their 50s

Gorgeous Roses Beauty Vitamin Inside & Out

Daily Packets extensively communicate the virtues of beauty from inside out


Food ingredients are not new to beauty products but certain food groups are increasing, due to general health claims.

These include superfruits, dairy, Amazonian fruits, teas, and berries. In March 2008, the Sunday Telegraph in Australia ran

an article highlighting how bioflavonoids in citrus fruits can help to protect capillaries, as well as support collagen

production. The article went on to list the ‘top 10 young skin foods’ as salmon, blueberries, garlic, oranges, carrots, oilve oil,

asparagus, green tea, spinach and Brazil nuts. Irrespective of the accuracy surrounding this list, the article does serve to

illustrate a growing theme in personal care innovation, as reflected by the products shown in Figure 33 below:

“I see food being a significant pathway for new product development.”

Estée Lauder’s senior vice president for corporate product innovation, quoted in International Cosmetic News,

December 2007

Action Points



Figure 33: Traditional cosmetic companies are increasingly investigating how food ingredients can be

beneficial to the skin and hair

Skin Food Essence Mask Sheet comes in

seven varieties: Milk & Green Tea, Wild Berry,

Avocado Lychee, Potiron Au Lait,

Lettuce & Cucumber Water, Peach Sake

Pore and Brandy Mild

Avon Naturals Moisturizing Body

Yogurt include Renewing Raspberry,

Refreshing Peach, and Nourishing

Vanilla

Skin Appetit skin care products are formulated with extracts from super

foods including blueberries, cantaloupe,

red grapes, creamy yogurt, wild honey, figs, walnuts and dark cocoa

chocolate

In Spain, the BylyDepil brand name offers a number of

depilatory variants in an Al Chocolate

variety

Ella Bache, an Australian skin care

company, constructed a peach sculpture to publicize

the company's slogan, "Skin good

enough to eat“

Wrigley struck a licensing agreement

with cosmetic company Lotta Luv to develop lip balms and glosses flavored like

Wrigley's gum

Source: Datamonitor / Product Launch Analytics; www.brandweek.com D A T A M O N I T O R

Target the desire for improved physical health with energizing and vitality enhancing products

Consumers also require functional foods to improve psychological health and daily functioning rather than just to prevent

disease. This is why consumers put greater faith in functional solutions that can treat short term lifestyle conditions, such as

those that provide energy boosts. Surveys often suggest that people feel that they have less free time to relax and re-boost

their energy levels.

Physical health involves feeling physically good, especially in terms of energy/vitality. It can involve an artificial energy

boost or more sustained natural energy boost. The trend/need state has links with natural foods, detox diets and cleansing

the mind and the body. Consumers want to feel good and have vitality in order to perform well in their working lives and in

their leisure time.

• Consider developing new sub-brands to tap into the highly lucrative energizing segment – in recognition

that “guys are increasingly looking for great-tasting beverage options that will give them the extra 'kick' they need

to conquer their day,” Coca-Cola North America launched Full Throttle Coffee, a creamy coffee and energy

blend. Made with 100% premium Colombian Arabica coffee and a proprietary energy and vitamin blend, Full

Throttle is available in mocha, vanilla and caramel flavors. The launch was supported by an integrated marketing

Action Points



campaign and a sampling plan to drive consumer awareness. All introductory marketing materials featured the

tagline "Coffee. Fully Charged". Elsewhere, Dr Pepper Snapple Group recently introduced Venom, an energy

drink “for those wanting to experience thrill seeking adventures.” Available in Black Mamba, regular, and Mojave

Rattler varieties, the company hopes that it “will accelerate Dr Pepper Snapple's entry into the fast growing

energy drink market by delivering a jolt of energy in new killer packaging." Venom's 16.9oz re-sealable aluminum

bottle allows consumers to enjoy the product during multiple occasions, unlike most energy drinks in cans. The

Venom energy blend contains caffeine, l-carnitine, guarana, ginseng and taurine, all relatively common

ingredients that consumers are looking for in energy drinks today. In 2008, Snickers introduced Charged, “the

first candy bar from the brand that provides a boost of energy with added caffeine (60 mg), taurine and B-

vitamins.” This new product satisfies two need states: hunger satisfaction and a boost of energy.

• Pursue opportunities in delivering ‘better’ energizing products – many energy products, despite being

aligned with the health trend, are not actually perceived to be healthy. With the launch of its new Cranergy

Energy Juice Drink, Ocean Spray is devoted to “reenergizing busy Americans with a source of energy they can

feel good about, providing a natural lift with an even-energy feel.” Cranergy is made with real fruit juice and is

“clinically shown to improve alertness and make people feel less tired.” It contains green tea extract (which is a

natural source of caffeine); five B-vitamins, which support healthy energy production; and vitamin C, which can

help boost immunity. Elsewhere, Crunk!!! is touted as "the only energy drink with the unique taste of

pomegranate combined with a proprietary blend of herbs and vitamins." Crunk!!! is said to have been designed

to deliver “mental and physical vitality while supporting the immune system.” It would appear that the

manufacturer is trying to capitalize on the favorability shown towards antioxidant rich fruits in the US. In the

same country, the R Energy Multivitamin is formulated with noni fruit (another so-called superfruit) plus essential

vitamins. Similarly, in Finland, ED Energy Drink is fortified with vitamins, caffeine and taurine and features a goji

berry flavor. In this case, the manufacturer is clearly trying to capitalize on the favorability surrounding goji

berries. In Spain, Corporacion Alimentaria Penasanta SA has introduced a yogurt drink under the Central

Lechera Asturiana brand name. The drink is said to be made with “real jalea” and to “offer energy and vitality.”

• Pursue opportunities outside of beverages – energizing/vitality orientated innovation has been more

concentrated in beverages than food products. However, the functional food trend also offers opportunities to

deliver an energy boost in categories where it perhaps is not expected. Indeed, this may prove lucrative in terms

of attracting consumers not typically attracted to energy drinks such as Red Bull. In Ecuador, Unilever’s

Margarina de Mesa product marketed under the Bonella Energia brand name contains vitamins A, D, B6, B5,

B1, and E to provide the consumer with "energy and vitality during the day."

• Develop new ingredients to deliver energizing benefits – caffeine, taurine and B-vitamins are all common

ingredients used in energizing products but new formulation opportunities also exist. For example, House Ukon

No Chikara Drink in Korea contains curcumin, derived from turmeric as the active ingredient. Each pack contains

10g turmeric extract (30mg curcumin) plus vitamin B6, vitamin E and inositol. The characteristic bitter taste of

turmeric has been removed to make this a palatable drink. According to Datamonitor’s Product Launch Analytics

Database, Curcumin appears to be a new ingredient for energy drinks. Elsewhere, Q10 Drink is a new functional

drink that has recently been launched in Germany. It is available in the variety Accerola-Rhabarber-Acai

(Acerola-Rhubarb-Acai). Said to “support cell protection and energy metabolism from within by supplying the

body with additional Q10,” the drink is also unique due to the unusual flavor blends of Acerola-Rhubarb-Acai.

Action Points



• Communicate the softer side of energizing credentials by using softer words that are aligned with

wellbeing such as balance, vitality and purity – in the US, at the Institute of Food Technologists (IFT) Show

held in Chicago in July 2007, executives from the "Big Food" players (Nestle, Kraft, Campbell's and General

Mills) discussed their various health and wellness initiatives. One executive from Campbell's talked about the

changing definition of wellness in recent years whereby now it engenders a positive attitude, resulting in

products that appear to "celebrate life," provide "balance" and support "energy and vitality.” This view is reflected

by manufacturers which have been deliberately using ‘vitality’ and ‘balance’ branding messages. In 2007,

Unilever announced a “vitality strategy” with a focus on developing products that offer benefits in five areas:

brain health, immunity and strength, beauty, heart health, and weight management. In Japan, Asahi Citrulline

Water has been developed to meet the boom of detox products. It is a functional drink containing citrulline (a

type of amino acid). Citrulline has been permitted by the Ministry of Health, Labor and Welfare to be used in food

and drink product since 2007.

Figure 34: Targeting the desire for energy and vitality is being done with more intensity and sophistication


Target the need for relaxation with calming food and beverages that offer ‘antidotes to reality’

Researchers and consumers alike are beginning to understand the powerful links between nutrition, mood and mental

health. As well as looking to reduce the discomfort of stress on a day to day basis, consumers appear increasingly mindful

of the potential impact of stress on longevity. In response, products are increasingly aimed at helping people with hectic,

stressful lifestyles. Continuing opportunities exist for food and beverage products that can help individuals deal with stress.

So called ‘mood foods’ contain chemicals thought to enhance mood, such as gamma-aminobutyric acid (GABA),

tryptophan, serotonin and melatonin. The growth these ‘mood foods’ underpins some of the more recent NPD activity in the

arena of emotional wellbeing.

Action Points



• Foods touting mental balance have been on the market in Asia for some time – for example, Glico Mental

Balance Chocolate GABA was launched nationally in Japan in 2005. Glico emphasizes the relaxing effect of

GABA and targets men and women in their 20s to 40s who are stressed at work. According to Nutraceuticals

World (November 2007), the chocolate achieved first year sales of $50 million, “exceeding all expectations.”

• Mood enhancing products are emerging elsewhere across the globe too – in March 2008, Productscan

reported on individually wrapped Choconella Passionate Organic Dark Chocolates in the US from Phytobase

Nutritionals, Inc. The product is positioned as a “bite-size organic dark chocolate treat" that is "infused with a

unique combination of Goji berries and exotic Amazonian and Siberian herbs.” Together, these functional

ingredients are said to “increase libido and energy levels, reduce stress, support memory and mental clarity, and

enliven the mood.”

• The specificity of the mood is even being targeted via products aligned with PMS – in the US, the PMS

Support bar contains PMS-reducing botanicals and claims to soothe the physical and emotional discomforts that

come with PMS, relieving everything from cramps and bloating to irritability, stress and anxiety.

• Stress-busting beverages have become a key feature of product development in recent years – a number

of wellness drinks claim to relieve the feeling of occupational stress, sharpen focus, alleviate mental fatigue,

boost energy and so on. What is particularly interesting is that these physical and emotional wellness aligned

benefits are typically given as much, if not more, prominence than flavor. Reported by Productscan in February

2008, consumers in Germany and Austria now have available to them a new Wellness/Diet Drink product

marketed under the Nova brand name. The drink is designed to “suppress one's appetite for a long period of

time while stimulating fat metabolism and perception, and enhancing circulation.” According to the manufacturer,

the wellness drink aims to “relieve the feeling of occupational stress by allowing the consumer to concentrate

more easily.” In Italy, Mila Benessere Attivo Melisse E Valeriana yogurt drink is described as helping to control

stress with added Verbena and balm extracts. Elsewhere, Spava Decaf Whole Bean Coffee is offered in the US

and is a certified organic decaffeinated Arabica coffee fortified with passionflower extract, inositol and vitamin B6

which “may help to reduce tension and stress while promoting overall body wellness.” In Switzerland, the

CHILLmi Freeing Drink is said to combine fruit and herb extracts with chili and mint to produce a drink that

provides a relaxing effect, "freeing the consumer of the day to day worries" without the addition of alcohol, sugar,

or extra vitamins.

• In 2007, New Zealand scientists developed a “brain-boosting fruit-juice cocktail” that improves people's

memory and reduce stress – after two years in development, the drink, derived from a secret blend of fruits,

has shown promising results in reducing stress and enhancing memory. The memory-enhancing drink is a mood

food aimed especially at tired mothers, according to HortResearch neuroscientist Dr Arjan Scheepens. The

institute's surveys found that mothers aged 40 to 60 were the group which most wanted a stress-relieving food

product.

• Anti-stress credentials are being promoted due to specific timings and details associated with

production methods – in 2007, Nakazawa Adult Milk was launched in Japan. According to the company, the

milk is taken from cows once a week at the break of dawn, as they discharge a large amount of the stress-

relieving hormone melatonin during the night. The milk is bottled within six hours of milking and is said to contain

Action Points



three to four times as much melatonin as regular milk. The product is around 30 times more expensive than

ordinary milk.

• Some industry players have begun to explicitly brand their mood food credentials – Yagua Food for Mind

& Mood launched a range of drinks in Germany in 2007. The varieties offered are: Detox Juicer (Vitality Juice),

Relax Juicer (Inspiration Juice) and Beauty Juicer (Skin Juice). The juices are made of added vitamins, minerals

and vegetable extracts and are said to increase the intake of healthy nutrients for skin, hair and nails. Purple

Stuff, a Pro-Relaxation & Calming Elixir, is available in the US. It is said to be made with such ingredients as

crystalline fructose, rosehips, valerian root, l-theanine, the "highest quality fruit essences," and "pure mineral

water."

• Established brands are also looking to capitalize on the trend – for example, Tropicana introduced a juice

variant containing magnesium, thought to cut stress, in France and Sweden. Similarly, in 2007, Minute Maid

Enhanced Juices 100% Juice Blend was introduced to the US market in a new variant to "help nourish the

brain." Literature for the chilled beverage explained how “DHA is a key building block in the brain… Choline and

B12 play a role in brain and nervous system signaling… Antioxidant vitamin E helps shield the Omega-3s in the

brain from free radicals… Antioxidant vitamin C is highly concentrated in brain nerve endings."

• Supplements offering mood-enhancing benefits are also increasingly common – an Se-

Metyyliselenokysteiinitabletti (Se-methylselenocysteine tablet) variety of Ravintolisa (a dietary supplement) was

recently made available under the Seleq name to consumers in Finland in 2007–08. The Se-MSC tablet is

described as being a “highly bio-available antioxidant that provides immediate protection to body cells.” It is

further said to “protect the body against oxidative stress and harmful heavy metals, to maintain the immune

system, and to improve mood.” Elsewhere, the Nordic Naturals line of supplements, available in the US, includes

Omega-3-6-9 Junior Lemon Flavored Liquid. "Taste-tested by kids and teens (ages five and up)," it "provides a

full spectrum of omega fatty acids necessary for brain and eye development and maintenance, as well as mood,

focus, learning ability, and overall wellbeing.” Finally, Unisom SleepMelts Nighttime Sleep-Aid Tablets are

promoted in the US with Diphenhydramine HCI 25mg per tablet. The melting tablet format has been tried in

some other health and beauty categories, but appears to be a first for sleep aids.

• The relevance of mental wellbeing in today’s society is reflected by the emergence of mental health

gyms/exercise zones – for instance, vibrantBrains, a San Francisco start-up, offers a “workout centre for the

brain.” Instead of exercising muscle groups, vibrantBrains members can sharpen their mental prowess using a

variety of computer software programs and other tools, for a monthly membership fee of $60. If the mental

health club idea catches on it might spur a reaction from traditional health clubs to offer this kind of wellbeing

service.

Action Points



Figure 35: Mood foods reflect the growing array of products targeting emotional wellbeing

Source: Datamonitor / Product Launch Analytics; www.trendhunter.com D A T A M O N I T O R

Action Points



Develop product lines with individual SKUs each delivering different targeted benefits

The previous analysis highlights that there are a number of health related need states to target. Many brands are delivering

‘multi-faceted health’ by developing product ranges with variants that cater to the differing health needs of consumers. This

reflects a theme in innovation whereby many brands are differentiated by the targeted health benefit as a well as flavor.

The following examples reflect product ranges offering ‘multi-faceted health’:

• The Y Water Wellness Water range is an organic, low calorie line of functional drinks positioned as

“developmental drinks which provide the vitamins and minerals essential to a child's healthy growth." Varieties

include Brain (with zinc to promote mental performance), Immune (vitamins A, C and E to strengthen the

immune system), Muscle (with magnesium to promote muscle performance) and Bone (with calcium to keep

bones and teeth healthy and strong).

• Canada Dry Mott's Inc recently introduced two varieties of Mott's Fruitsations. ‘Apple Pomegranate + Antioxidant’

is formulated "for the maintenance of good health" with "all natural flavors & colors," while Harvest Apple +

Calcium is "for bone health." The company claims to "take healthy snacking to the next level."

• In Italy, the Aqua Therapy brand includes various varieties including: Curcuma e Ortica (Curcuma & Nettle) for

an anti-cholesterol effect, Echinacea e Astragalo (Echinacea & Milk Vetch) to boost the immune system,

Karkade e Salvia (Hibiscus & Sage) for a sun protection action, Betulla e The Verde (Birch & Green Tea) for a

slimming action, Vite Rossa e Mirtillo (Red Grape and Blueberry) for an anti-cellulite action, and Avena e

Serenoa (Oats and Saw Palmetto) for hair protection action.

• The Isabella's Healthy Bakery line of products, available in the US, includes three varieties of “enriched muffins.”

The Optimize Antioxidant Muffins, "loaded with blueberries, blackberries and raspberries, as well as with acai

and pomegranate extracts," are said to help to “prevent cell destruction by deactivating harmful free radicals.”

This variety also contains vitamins C and E "to help improve immunity and heart health." The Revitalize Peanut

Butter & Chocolate Chip Muffins are “rich in vitamins B6 and B12 to boost energy, increase cellular regeneration

and promote healthy organ systems including the nervous system and skin."

• Function Beverages from MD Drinks Inc in the US are positioned as “physician developed health beverages."

The different SKUs each offer targeted health benefits. The many varietals include: Brainiac in Caranbola Punch

(to boost memory and mental acuity with powerful antioxidants), Urban Detox in Citrus Prickly Pear (help rid

lungs and sinuses of airborne pollutants and fight hangovers), Shock Sports in Lemon-Lime Calamantis (ease

sore muscles and hydrate after working out), Alternative Energy in Tangarine Yuzu (all-natural time release

energy and stamina for 6-8 hours), House Call in Lemongrass Green Tea (help boost immune system and fight

colds), Vacation in Pacific Coconut (improve mood and reduce stress) and Light Weight in Acai Pomegranate

(ignite metabolism and burn more calories per hour).

• In 2007, Green Giant introduced three frozen vegetable blends delivering targeted health benefits. The Health

Blends were touted as the “first of their kind in the frozen vegetable category.” The three Health Blends flavors

were aligned with “three of the top 10 foods trends for 2007”: ‘satiety-enhancing’, ‘antioxidant rich’ and ‘immunity

boosting’, with each flavor incorporating a health trend. Healthy Weight features sliced carrots, sugar snap peas,

black beans and edamame. Immunity Boost features broccoli florets, julienne carrots and red and yellow sweet

pepper strips, and Healthy Vision features sliced carrots, zucchini quarters and sliced green beans.

Action Points



• In France, Awakening Tao Boissons Gazeuses Bien Etre (Healthy Soft Drinks) are plant-based drinks with fruit

flavors. There are four varieties available: Hydration & Motion, which contains blackcurrant, ginseng and acerola;

Health & Energy, which contains kombucha (mushroom extract), guarana and vitamins; Wellness & Serenity, a

blend of ginger, cardamom, passion flower and vitamins; and Youth & Vitality, which contains green tea, ginkgo

biloba and vitamins.

• Chapman's Yogurt Plus "naturally flavored" frozen yogurt delivers multiple health benefits in one SKU. The full

page magazine advertisements read: "Good for your health… Two active probiotic cultures (lactobacillus

acidophilus and bifidobacterium lactis), help strengthen your natural defense… Natural source of prebiotic fiber,

helps increase energy and boost vitality… 1.3 grams of fat per serving… Source of calcium… One serving offers

16–24 percent of your daily fiber requirement."

• Venga Functional Infusions are formulated with "Swiss Alpine water carefully infused with select teas, real fruit

juices, vitamins, minerals and life-enhancing antioxidants." The varieties include: Brainstorm (made with

pomegranate, blueberry, blackberry, rooibos tea, gingko biloba, panax ginseng, glucose, antioxidants and

vitamins); Calorie Burn (made with orange, kiwi, lime, green tea, l-carnitine, caffeine, chromium, Citrimax and

vitamins); Health & Zen (made with orange, white grape, pink grapefruit, white tea, aloe vera, niacin,

antioxidants and vitamins); Rehydrate (made with orange, passionfruit, mango, green tea, electrolytes, calcium,

aloe vera, niacin and vitamins); Daily Dose (made with passionfruit, pink guava, skim milk, rooibos tea, aloe

vera, niacin, calcium and vitamins); and Energize (made with red apple, dragonfruit, sea buckthorn, Yerba Mate

tea, panax ginseng, taurine, caffeine, guarana, niacin and vitamins).

Figure 36: Many brands are delivering ‘multi-faceted health’ by developing product ranges with variants that

cater to the differing health needs of consumers


Action Points



ACTION: Develop age, gender and occasion targeted food and beverage solutions

Personalized nutrition also involves tailoring product formulations according to the specific nutritional and sensory

preferences of consumer groups and consumer occasions. The following analysis explores this is in more detail by

assessing the product opportunities that are apparent.

Target gender specific dietary needs

Gender customization is an increasingly important route to satisfying specific consumer needs and thereby capitalizing on

the personalized nutrition trend. Personal care innovation has long been targeting the specific gender-derived health and

beauty needs of consumers. Now, through both formulation and positioning, food and beverage marketers are also

beginning to recognize this with products which are gender specific. In particular, products with a strong nutritional focus,

and targeted towards females have been an important innovation theme. The additional emotional attachment that female

shoppers have with healthy eating has undoubtedly influenced this. It is also important to recognize here that women still

buy food and drinks products for their families. In summary, the food and beverage industry can target different genders

through a number of strategies including:

• offering specific nutrition benefits or portion sizes developed with women’s nutritional needs and dietary

behaviors in mind;

• offering health and/or wellness related nutritional benefits related to their stage in life course (e.g. for women this

could include menstruation, pregnancy, breastfeeding and the menopause);

• offering nutritional benefits relating to the mix of lifestyle activities, including paid work, sport and leisure, women

or men may be engaged in;

• direct targeting of women through product name and/or package coloring/styling.

The following examples serve to illustrate some of these innovation and marketing themes in practice.

• Luna, the makers of the Whole Nutrition Bar for Women, launched Luna Minis in 2008. At a little less than half

the size of a traditional Luna bar, Luna Minis are “formulated with the nutrition women need in their daily lives.”

They are designed to offer an alternative for women who do not always want an entire Luna bar, but want to

satisfy their snack cravings in a healthy and nutritious manner.

• In September 2006, The Food Doctor launched its 'for women' bread in the UK. It was developed in response to

research from The Food Doctor which found that 69% of women have been cutting out entire food groups as

part of a diet. The line is fortified with many nutrients widely acknowledged as being beneficial for female health,

such as folic acid, soya, vitamin E, calcium, iron and zinc. Two slices of the bread reportedly contain 133% of the

recommended daily allowance (RDA) of folic acid, 33% of vitamin E and 24% of iron. They also contain 83% of

the RDA for calcium and 67% for zinc.

• Body Smart for Women All Natural Pasteurized Process Cheese, available in the US, claims to be "specifically

formulated for women's health," with folic acid, vitamin D and calcium among the touted nutrients.

Action Points



• In the UK, OrganixMum's Organic Fruit and Seed Bars are said to be a natural source of antioxidants, fiber and

omega oils designed to provide “maximum nourishment for busy mums.”

• Luna Nutritional Iced Tea for Women was launched in 2007 as the "first line of organic bottled nutritional iced tea

for women." Created through a collaboration between Luna, which has a history of developing nutritional bars

tailored for women, and The Republic of Tea, the teas are purported to include many of the essential nutrients

women need everyday for overall health and wellness. These include folate, calcium and vitamin D, and are

combined with the reported values of tea itself.

• The Reine Frauensache Tea (For Women Only Tea) is an Austrian beverage made with various herbs and

contains added folic acid. Developed in cooperation with a gynecologist, it is said to “help balance a woman's

body during her menstrual cycle.”

• In India, GlaxoSmithKline Consumer Healthcare relaunched Mother’s Horlicks Malt Drink powder in 2008.

According to product literature, "it is rich in protein and is forfeited with DHA for brain development with an

essential Omega 3 fatty acid."

• In the US, Stonyfield Farm’s Organic YoMommy Fruit on the Bottom Low-fat Yogurt is formulated and positioned

"for pregnancy, nursing and beyond." Promotional literature highlights that it is a “good source of calcium,

vitamin D and folic acid… key nutrients during pregnancy and nursing.” The 32g DHA is marketed as “good for

baby's mental and visual development, and good for moms too.”

• In 2007, Del Monte Foods launched its first energy drink, Bloom Energy, which is formulated especially for

women and is available in three flavors. The product is marketed as an "Energy Drink specially formulated for

women that you can feel good about; energy that will fuel your mind, body and spirit.” Like so many foods and

beverages launched in recent years, it claims to be “rich in antioxidants.” The drink is made with a “full serving of

fruit, daily essential vitamins and nutrients, to contain 100% daily value of vitamin C and five B vitamins, to be a

good source of calcium, vitamin D and dietary fiber; to feature extract of real fruit juice, to be lightly carbonated

and to be naturally caffeinated with antioxidant rich white tea extract and guarana, and to have no cholesterol.”

• A good example of a new food and drink product range targeting busy mothers and housewives, and which

appeals to them as individuals in their own right, is the Eat Positive range from Birds Eye. Available to UK

consumers from April 2008, the product range is marketed to appeal to women as housewives and mothers,

who also have their own nutritional needs. Its marketing slogan is: ‘After you’ve looked after everyone else look

after yourself.’

• Nexcite, a Swedish soft drink containing five "love herbs" (damiana, ginseng, guarana, mate and schizandra,

plus a little caffeine), allegedly boosts the female libido and increases stamina and endurance.

• In North America, Tab Energy, marketed and manufactured by Coca-Cola, is another soft drink with an overt

female positioning. It is promoted under the slogan 'Fuel to be Fabulous' with website literature stating that the

“deliciously pink five calorie energy drink [is] created specifically for women with a sense of style and purpose.”

• The Cerveza con Fibra product marketed under the Ambar brand name in Spain is a non-alcoholic beer with

7.5g of fiber per bottle, and is available in a Manzana (apple) variety that is targeted at women. This beer is said

to be rich in fiber, free from alcohol, and to contain 40% fruit juice.

Action Points



• In India, Vitabiotics has launched a new refreshing low calorie still drink targeted at women in India, under the

brand name Vitabiotics Wellman. This nutraceutical drink is claimed to help maintain health and vitality.

Products targeted at men also represent a theme in more personalized innovation. Notably, Coca-Cola Zero has achieved

global success by tapping into the values and beliefs of male consumers globally, and the company claims to have

provided them with their ‘own Coke’. With a similar taste to classic Coca-Cola, but with zero sugar, Coca-Cola Zero is

aimed at men in their 20s who may have enjoyed traditional Coca-Cola when they were younger, but are now looking for a

no-sugar beverage. Zero was dubbed “Bloke-Coke” by the UK media, where it was the most successful new UK food and

beverage launch in the past three years, according to ACNielsen data. In the 16 weeks following its July 2006 launch,

Coca-Cola Zero achieved sales of £24.1 million, more than double the size of any other new product. The multi-million

pound launch campaign encouraged over a million 18–34 year old men to try the new drink between July and September

2006 (Source: Millward Brown). In the US, it came in fifth in the IRI New Product Pacesetters list for 2005–06 with $121

million sales across food, drug and mass merchandise stores, excluding Wal-Mart. This reflects an overall successful

global launch. Indeed, according to the company, the new drink is the Atlanta-based beverage giant's "most successful

launch...of any brand in 20 years." Other interesting ‘for-men’ food and beverages include the following:

• Perhaps inspired by Coke Zero, Danone’s Volvic Quinze (Fifteen) is a brand of natural mineral water claiming to

be the “first in the world specifically targeted at men.” It features square shaped bottles and sport caps, designed

to be practical either for sporting activity or in the office.

• In Poland, Herbapol Lublin has launched a variety of its Reduction Tea Kit for Men. The kit contains two tea

products: a tea for morning consumption that is said to counteract toxins and harmful elements, and is claimed

to accelerate the metabolism; and a tea for evening consumption, which is claimed to aid in regeneration and

endurance.

• In Russia, KF Bogatir launched Only for Men Chocolate bars in 2006. This line of chocolates has been designed

especially for men and contains differing varieties of alcohol.

• In Australia, the Big M Edge liquid snack product, manufactured by National Foods, is described as “fuel for

blokes” and is “packed with muscle-building protein, the goodness of dietary fiber, plus 11 essential vitamins and

minerals, including half [males'] daily calcium requirement.”

• In February 2008, Productscan reported the launch of Guara For Men Only Biscuits in Switzerland. Featuring

72% cocoa, these cookies, from Wernli AG, are made with cocoa bean chips and dark chocolate with guarana.

• Sapporo Ichiban Otoko no Ippai Kuro no Tokuno Shoyu Ramen (a bowl for men, Chinese style noodles in extra

thick black soy sauce soup) is a cup noodle product for men. The noodles are described in Datamonitor’s

Product Launch Analytics Database as being “firmer and substantial.”

• Kracie Otoko Moeru is a zero-calorie jelly drink containing 70mg L-carnitine to help burn off fats designed for

men. It also contains half the daily requirement of vitamins B1, B2, B6 and B12, plus pantothenic acid. Kracie

Holdings, the product manufacturer, states that one out of three men are overweight, and two out of five men are

possible patients with metabolic syndrome in Japan.

Action Points



• Also in Japan, JT Fresh Breath is a drink for men that refreshes the breath. JT believes that the interest in

‘deodorant chewing gum and candy products’ is increasing in Japan. This functional drink contains a number of

active ingredients including rosemary extract, urajirogashicha [Quercus salcina] extract, cyclic oligosaccharide

and green tea extract.

Some product lines are also branded according to the gender specificity, with individual SKUs targeting men and women

respectively:

• Lotte Choco Pie for Men and Lotte Choco Pie for Ladies (pictured bottom right in Figure 37 below) are both

single portion semi-moist cakes coated in chocolate targeting consumers in their 20s. The variety for men is

filled with “pleasantly bitter coffee cream and bitter caramel.” The variety for ladies is filled with raspberry jam

and raspberry cream with a hint of rose aroma. It has the “subtle aroma and pleasant acidity of raspberry.”

• In the bread category, French Meadow Bakery Woman's Bread and Woman's Tortillas (again pictured bottom

right in Figure 37 below) are two separate lines available in the US. There is also an Organic Sprouted Men's

Bread line “which satisfies hunger and covers all of the nutritional bases for men of all ages.”

Figure 37: Gender specific products are well placed to capitalize on the personalized nutrition trend

Women have been the primary targets in gender specific innovation. The majority of the products pictured below are discussed in the above analysis

But innovation specifically targeting men is also a relatively common theme in the provision of food and beverage products as reflected by these examples below. Some product lines are branded according to the gender specificity, with individual SKU’s targeting men and women respectively


Action Points



Assess innovation opportunities associated with age personalization

Age is an important determinant of the physical needs of consumers, and therefore the functional benefits they desire from

products. Therefore, products formulated and marketed for age specific ailments and problems remain an important way of

communicating product relevance and thus tapping into the individualism mega-trend.

The marketing community is finally recognizing the fundamental demographic shift occurring via aging populations.

Advances in ‘personalized nutrition’ mean that there is considerable potential to develop more tailored solutions to help

consumer overcome age related ailments and nutritional deficiencies. At the other end of the scale, there is a huge focus at

the moment on children's nutrition in light of escalating childhood obesity. As a result, age formulated products are proving

to be a prominent feature of new product development plans.

The growing issue of childhood obesity and poor diets has increased exponentially over the past few years to become

possibly the main challenge faced by the food and drink industry. It is important that with the consumer trend towards

‘better for you’ products, parents—especially mums—feel confident about what they give to their kids. Parents are

increasingly acting out these concerns in their roles as gatekeepers of family grocery purchasing, suggesting that

marketers must address parental concerns in all marketing. There is clearly an opportunity and a need for tasty,

nutritionally balanced and convenient, particularly for those driven by product content rather than marketing spin.

• In 2008, Burger King launched a new nutritionally balanced Kids Meal, featuring BK Fresh Apple Fries and Kraft

Macaroni & Cheese. The new meal is just one part of the ‘BK Positive Steps’ nutrition program which “formalizes

BK’s nutrition efforts and demonstrates [its] commitment to help customers live and eat better.” The new Kids

Meal provides 350 total calories with less than 25% of calories from fat. The launch was supported by a large-

scale marketing campaign, including in-restaurant merchandising.

• WAT-AAH! is a premium brand of pure water specially targeted to kids and teens aged 6–15. The line was

initially made available at Whole Foods and other “fine retail outlets in New York City at launch.” According to the

company, “no other water product currently on the market for kids and teens can claim to be 100% free of

artificial flavors, artificial colors, additives and sugar.” The first four products being introduced are: WAT-AAH!

Bones with calcium; WAT-AAH! Brain with added electrolytes; WAT-AAH! Energy with electrolytes and oxygen

and WAT-AAH! Body, the foundation for the brand with simple and super clean water, absolutely free of sugar.

• EveryKid is marketed as the “first whole food children's multi-vitamin made with organic ingredients.” The

complex formula also touts “essential vitamins and nutrients, bio-available nutrition, [and] nutrients that children's

bodies recognize as food, to help young bodies thrive.”

• In Mexico, a new flavored tuna product called the Trozos de Atun Aleta Amarilla is marketed under the Marina

Azul Kids label and is offered in Pizza and Catsup flavors. It is claimed to be a “natural source of omega 3, to

contain no artificial preservatives, and to not require refrigeration.” Datamonitor’s Product Launch Analytics

Database noted that Pizza and Catsup are new flavors to the tuna fish market.

• Agualicious Healthy Kids Water is touted as the "first bottled water for kids aimed solely at Hispanic consumers

in the US." According to literature, it was "designed to be part of the solution to the growing problem of poor

nutrition and obesity among Latino children."

Action Points



• Plum Organics Kids Frozen Entrees were specifically created for kids aged three to nine years old. Marketed as

being “low in salt and sodium”, the meals also contain 32mg DHA “to support brain and eye development.” The

carbon neutral packaging is also a first for the frozen entree market according to Datamonitor’s Product Launch

Analytics Database.

• Dempster's Smart 100% Whole Grain Wheat Bread and Smart 100% Whole Grain Wheat Sandwich Bread is

offered in Canada. The bread is said to contain “a new patented, vegetarian form of DHA omega-3 for brain, eye

and heart health” and to be the “only whole grain bread targeted toward kids that delivers great taste and

nutrition.”

• In Australia, the Nestle Munch Bunch brand claims to contain “50% more calcium for strong teeth and bones,

omega 3 for brain development, and probiotics for happy tummies.” Package text indicates that the yogurt

contains “no artificial colors or flavors, less than 5g of added sugar per serving, and real fruit.”

• In the US, the Kidfresh Grab + Go line of snack packs are marketed as “nutritionally proportioned for a child's

age group.” They come in portions which are tailored for different age groups: minis (1–2 years), juniors (3–5

years) and kids (6–10 years). Kidfresh, the manufacturer, says that these 'all-natural' snacks are 'kid-tested', and

that they are prepared daily with natural and organic ingredients. They do not contain any artificial colors,

preservatives, additives or trans fats.

For a more extensive review of ‘on-trend’ nutritious products formulated for kids the boarder trends and opportunities

surrounding kids’ nutrition, please refer to Datamonitor's report 'Trends in Kids’ Nutrition' (DMCM4628).

Figure 38: Parents are increasingly acting out their concerns in their roles as ‘gatekeepers’ of family grocery

purchasing


Personalized nutrition will be particularly important for aging populations. Products with disease management benefits,

targeting high-incidence conditions including high cholesterol, high blood pressure, osteoporosis, and diabetes will be

Action Points



particularly important. Age-specific functional food formulations are likely to drive the market forward as more consumers

accept and rely upon these products:

• Tut Gut Molke, marketed in Austria by Alpenmilch Salzburg, is a functional drink containing a mix of fruit and

whey. Tut Gut (do good) has an expanded line that includes a yogurt buttermilk drink with honey and lecithin

designed for consumers in their 40s–60s and is intended to help improve memory and concentration.

• Italian food company Barilla Alimentare’s Alixir brand of functional bread is aimed at consumers aged 35 and

over. The 10 products in the Alixir range are promoted as part of a nutritional food program, with an emphasis on

heart health, immunity, anti-aging and digestive health

• To help men and women address their individual health concerns, Bayer Consumer Care, the maker of One-A-

Day multivitamins, has introduced One-A-Day Men's 50+ Advantage and One-A-Day Women's 50+ Advantage.

These complete daily multivitamins provide nutritional support for individuals over the age of 50. Furthermore,

they contain the specific levels of key vitamins and minerals that men and women each need to address their

distinct health concerns.

• Along similar lines, Productscan (May, 2007) reported that Kobayashi Pharmaceutical has introduced its My

Base range of multivitamin and mineral tablet health supplements in Japan. The products are specifically

formulated for men and women of differing age groups: My Base Man is formulated for men aged 20–40; My

Base Woman for women aged 20–40; and My Base Man 50+ and My Base Woman 50+ are intended for mature

adults, aged 50 years and older.

• Welllwoman 50+ contain a “blend of B vitamins, folic acid and phosphatidylcholine that together help maintain

the efficient functioning of your brain cells as well as supporting a healthy nervous system.” It is specially

designed to provide nutritional support for women aged 50 and above.

• In Brazil, the Suplemento Dietetico product marketed under the Olvebra Sustare Maturidade brand name is

claimed to be a good source of fiber, proteins and calcium, and to have no added sugar. One serving of this

drink for seniors is further claimed to provide 50% of the daily nutritional requirements of vitamins and minerals.

• In Japan, Kagome All Veg is a vegetable juice made with 25 types (previously 23) of vegetables. The main

target is seniors in their 50s and 60s. The vegetables and fruits contained are: tomatoes, carrots, Brussels

sprouts (petit vert), Chinese cabbage, red bell peppers, asparagus, kale, celery, spinach, broccoli, parsley,

watercress, onions, lettuce, cabbage, moroheiya [mulukhiya], pumpkin, beet, giant white radish, mustard

spinach, ginger, purple sweet potato, angelica, eggplant and burdock root. One serving of this juice drink

supplies the equivalent of 350g vegetables.

• Kewpie Kirakira Genki & Dressing Sauce and Kirakira Genki & Dressing Sauce Italian Hiaruron Haigo are

functional salad dressings aimed at “active seniors” in Japan. They contain colorful (yellow, orange, white) small

balls made with alginic acid (a type of dietary fiber) and calcium. According to Datamonitor’s Product Launch

Analytics Database, these balls “pleasantly burst in the mouth.” The dressings are also fortified with hyaluronic

acid; 15g of the dressing contain 15mg hyaluronic acid.

Action Points



Figure 39: Personalized nutrition will be particularly important for aging populations


Targeting lifestyle/interest groups and more specific occasions is another route to offering personalized nutrition

It is often said that effective innovation is that which supports consumers’ lifestyles. Products that are aligned to how people

live their lives, whether in the form of lifestyle activities or the needs emanating from patterns/modes of living, are well

placed to resonate with consumers. Some examples of lifestyle innovation include the following:

• The new line of Luna Sport Nutrition for Women Athletes by Clif Bar & Co is said to be “the first women's organic

energy chew.” The new Moons Energy Chews are offered in Pomegranate (with 50% vitamin C), Blueberry (with

antioxidants A, C & E) and Watermelon (with energizing B vitamins) flavors. They are also “ergonomically

designed to fit women's smaller mouths and pockets.”

• DyDo Drinco: DyDo Nice On is a functional carbonated drink containing ginkgo extract, hihatsu [a type of pepper

from South East Asia, traditionally used in China and India to warm the body when feeling cold] extract and

maca [Lepidium meyenii] extract as healthy ingredients particularly for enhancing concentration. This drink is

designed for golfers, and it is available in golf facilities only. According to Datamonitor’s Product Launch

Analytics Database “the main target is middle aged and senior consumers.”

• Omega Farms Low-Fat Chocolate Milk provides “kids with the added benefits of Omega-3s needed for brain

development and athletes the perfect combination of carbohydrates and protein needed for sports recovery.”

• A good example of a lifestyle food and drink product, because it offers a number of added value aspirational

benefits to individual consumers, is Now (Nutrition for Optimal Wellness) Fivacious Bars, available in the US.

The single serve bars are available in two varieties, each claimed to be suitable for people who do choose not

Action Points



eat meat, fish and/or animal products. The bar is claimed to contain organic milk powder making it suitable for

lacto-vegetarians. The Cinnamon Nut variety of the bar is claimed to be suitable for vegetarians/vegans. This is

a personalized product because it is appealing to, and targeting, the particular individual who is vegetarian or

vegan for ethical reasons or reasons of preference, and who also finds added-value in natural, raw and/or

organic ingredients. The formulation of the product further appeals to individuals who aspire to snack healthily,

because it is flagged as high in dietary fiber, low in sodium, free of cholesterol, and free of trans fat.

• Associating brands with music, sports and entertainment in general has historically been an important

component of marketing. In 2007, Pepsi Inc launched a caffeine-laced version of Mountain Dew as a “game fuel”

in sync with the release of Halo 3. The initiative followed Mountain Dew’s positioning as a “game-friendly

beverage.”

• Food and beverage marketers are targeting more niche and specific occasions. Awake Good Morning Energy

Drink, available in the US, is touted as "the only energy juice specially formulated for morning consumption."

Elsewhere, a new aviation fruit juice product is soon to be launched in the UK. Marketed under the Mile High

Drinks brand name, the drink is available in original and pomegranate varieties. The manufacturer claims that it

is 100% natural, with no artificial flavorings or colorings, and that it has no added sugar or sweeteners.

Importantly, it is said to contain a large amount of antioxidants and is touted to alleviate symptoms experienced

by air travelers, especially long haul travelers, of whom there are an increasing number as air travel becomes

ever more accessible.

• Also in the UK, Alibi Active Pretox Drink is claimed to be the world's first ‘pretox drink’, preparing the body to

receive and process the toxins absorbed on a daily basis. It contains a complex mix of vitamins, amino acids,

herbal extracts, natural spring water, and Californian ruby grapefruit and Tuscan lime flavorings.

• In Asia Nestlé’s Day & Night, which is a low fat collagen enriched dairy drink, re-enforces its beautifying

credentials by provides different flavors and packaging colors depending on when the product should be used

(day or night). This is a concept often seen in skincare and again serves to illustrate that innovation ideation

should occur by looking beyond category boundaries.

• Specificity in retail is another route to delivering more personalized and specific solutions. Outside of the CPG

arena, Nike and Finish Line have recently created the new ‘Running and Training Retail Experience’. Called

Finish Line Ltd, the store concept is “customized to meet the needs of young running and training athletes.” Nike

Brand President Charlie Denson stated that the partnership with Finish Line was “to offer a higher level of

service, a deeper connection to the local running community and a strengthened product assortment…part of a

long-term strategy to elevate the marketplace, create energy at retail and connect with consumers in our core

categories." Finish Line Ltd will be divided into three sections: running, sport style and training.

• In an effort to add functionality to its customer-loyalty card program, Safeway has recently introduced ‘FoodFlex’,

a program designed to help shoppers compare the items they usually buy with healthier choices. Safeway club

card holders can register for FoodFlex online, and FoodFlex will track purchases made with the loyalty card and

provide lists of alternative selections based on searches for lower calories, less sugar or fat, added fiber,

vitamins or other criteria. For example, if a customer purchased a frozen Weight Watchers meal that has 320

calories and wanted another frozen meal with fewer calories, the Alternatives tool offers a list of comparable

meals with a lower calorie count. More than 75,000 items, including produce, meat and seafood, have been

Action Points



added to the FoodFlex program. FoodFlex also can create a personalized nutrition snapshot that captures health

information on purchases made in the last six months.

Figure 40: Targeting lifestyle/interest groups and more specific occasions are additional routes to offering

personalized nutrition


Figure 41: With ‘FoodFlex’, Safeway is demonstrating how retailers can also capitalize on shoppers’ desire for

more personalized offerings

Source: Datamonitor; http://shop.safeway.com/superstore D A T A M O N I T O R

Action Points



Develop specific lines for those suffering from food allergens and intolerances but recognize that it is still a niche market segment

The danger of suffering an allergic reaction or intolerance to certain food types is driving an increasing market segment to

focus on products which omit certain ingredients from formulation. FreeFrom is a major category and fixture in its own right

now with specialty suppliers as well as main brands involved including a number of retailer brands.

Research shows that nearly half the population is aware that peanuts, cow's milk, wheat, soya, eggs, tree nuts and

tomatoes plus quite a few other common ingredients might be making them or their friends and family feel off color, or

worse. As such, there is a huge opportunity to create FreeFrom products in nearly every food and beverage format so that

sensitive consumers can enjoy normal lives and will not feel left out.

Developing and clearly signposting gluten and lactose free products will become an increasing feature of food and drink

product development in the coming years. This will, in part, be influenced by legislative changes. Some global examples of

products appealing to food allergen and intolerance consumers include:

• Glutenfreeda's Wheat Free Gluten Free Burritos in the US. The line is touted as "the world's first gluten-free

burritos." The varieties are "made with gluten-free flour tortillas." The launch highlights how gluten-free appears

to be gaining momentum and moving into new categories, like burritos.

• The Van Harden Frozen Gluten Free Cheese Based Crust Pizza is flagged, "No bread! No kidding!!" Referred to

as a “no-dough pizza,” it is said to be made from “a combination of cheeses with no flour, to be attractive to

people with wheat allergies.”

• Crema di Frutta (Fruit Cream) is a range of jams marketed in Italy under the Achillea Fruttomio brand. Made with

organic ingredients, the new flavors of the jam launched in 2007 included Sottobosco (a mix of raspberries,

blackberries and blueberries) and Ciliegia (Cherry). The jams are sweetened with manioca syrup, instead of

wheat equivalents, in consideration of consumers with wheat intolerance.

• In Spain, Kaiku Corporacion Alimentaria, S.L. recently launched a Leche Semidesnatada (Semi Skimmed Milk)

under its brand Kaiku Plus Sin Lactosa (Lactose Free). Presented in an aseptic carton, Kaiku Plus Sin Lactosa is

said to be “lactose free and high in vitamins.”

• A good example of a product specially formulated for consumers with allergies is the Allergaroo range of ‘ready-

made dishes in a microwaveable pouch’, which were introduced in the US in 2008 by Allergy Friendly Foods,

LLC. Marketing literature highlights the product’s targeted appeal to those consumers who have one or more

food allergy conditions by stating that “Allergaroo products are formulated to be free of the eight most common

food allergens (wheat (gluten), milk, soy, peanuts, tree nuts, eggs, fish and shellfish).”

• In Canada, Enjoy Life Soft & Chewy Snack Bars are promoted as being “free of the 10 most common allergens.”

The bars contain no wheat, dairy, peanuts, tree nuts, egg, soy, fish, shellfish, sulfites, sesame. They are also

made “without the common triggers of intolerance”: potato and caesin.

Action Points



Figure 42: Developing and clearly signposting gluten and lactose free products will become an increasing

feature of food and drink product development in the coming years


ACTION: Be future focused and invest in the opportunities presented by developments in nutritional science such as nutrigenomics

Nutrigenomics is an emerging scientific led approach to nutrition whereby it is recognized that genetics underlies many of

the differences in the way certain diets suit some individuals more than others. It is likely that in the future, nutrigenomics

(the science of how genetic inheritance and nutrition interact) will be an influential factor shaping the personalized

nutritional needs trend especially as the understanding of nutrigenomics expands and knowledge becomes more widely

available. For example, 'The Gene Makeover' is designed to empower individuals to take control of their health and

longevity based on understanding their own unique genetic makeup. The book highlights, among other things, how people

can age more healthfully, increasing their "health span." How inherited genes influence the workings of key biological

processes involved in aging is central to the information provided. This is symptomatic of how, over the next 20 years,

knowledge will build around genetic variations and individual responses to dietary components. Through nutrigenetics and

genomics, the next generation of health and wellness food and beverages will emerge:

“Our world's health crisis, with unprecedented levels of obesity accompanied by dramatic increases in chronic inflammatory

conditions, is a bold call for action for science-based innovations in prevention, nutrition and wellness. Revolutionary

advances in our understanding of both nutrition and the human genome provide us with new tools to begin to address

these enormous problems.”

Keith Wakeman, president of Gene Smart Health, quoted in Health & Medicine Week, June 2008

Action Points



At this stage, the nutritional community has much to learn about tailoring diets to individuals to elicit the best health

outcome, but there examples of companies looking to make this evolution in nutritional science into a commercial

opportunity.

Thus far, nutrigenetics-based dietary products marketed as personalized nutrition products have been designed to

complement genetic test kits and to provide individuals with dietary solutions that combat specific health issues emanating

from genetic variation. For example, a US-based company called Sciona offers a nutrigenetic test that screens 19 different

genes involved in metabolism and offers tailored diets based on the findings. In October 2007, its researchers published a

paper (Nutrition Journal 2007; 6:29) claiming that people who followed a genetically tailored diet were more likely to

maintain weight loss over the course of a year, compared with those whose diets were not based on genetic tests.

Consumer Genetics Inc offers a test called CaffeineGEN to tell whether a person has a 'slow' or 'fast' caffeine-metabolizing

gene. The company website asks if consumers “know that their daily caffeine consumption may put you at risk for a non-

fatal heart attack?” It goes on to add that “if you have a certain gene, having 2–3 cups of coffee may reduce your risk by

22%!" Consumer Genetics says the test is largely based on a study published in the Journal of the American Medical

Association. Ahmed El-Sohemy, a professor of nutrigenomics at the University of Toronto and a co-author of the JAMA

research, believes the study provides "the best evidence yet" that caffeine may trigger non-fatal heart attacks in some

people.

Another innovator in gene-based nutrition, Gene Smart Health, “uniquely combines breakthrough scientific innovation and

an in-depth understanding of the health, food, nutrition, and wellness markets to create major new businesses that

empower individuals to take care of their health and live life abundantly.” The company considers itself to be “at the

forefront in understanding relationships between nutrition, gene expression, inflammation and health” according to Health &

Medicine Week (June 2008). Through its Gene Smart Nutrigenomics Discovery Platform, the company examines the

influence of natural bioactives on the expression of genes that control the inflammatory process related to numerous

chronic inflammatory conditions in humans and animals.

In November 2007, WellGen launched the first nutrigenomics ingredient available to dietary supplement marketers. This

proprietary bioactive extract “reportedly helps to maintain normal gene expression to maintain a healthy inflammation

response.” From an understanding that begins with gene expression, the ingredient can also support claims for joint health,

immune system function, sports performance and oxidative stress.

There is also evidence that larger FMCG players are also actively pursuing opportunities in nutrigenomics. In mid-2008,

The Nestle Research Center (NRC) in Switzerland and GE Global Research (the General Electric Company's centralized

research and development organization) announced an innovative collaboration to scientifically “assess associations

between body composition, metabolic status, diet and lifestyle habits.” The relationship is geared towards creating

synergies from bringing together the “competencies of the Nestle Research Center, experts in metabolism, nutrition and

health research, and GE's extensive knowledge in diagnostic technologies.” A primary goal of the collaboration is to gain “a

deeper understanding of the connection between body composition, metabolic profile and health.” GE Healthcare's Lunar

iDXA system, an innovative imaging technology, will be used by Nestle scientists to measure subjects' body fat, muscle and

bone mineral density, extending beyond the limited measures of body mass index (BMI) and waist-hip-ratio. Researchers

will study the correlations between lifestyle habits, body composition measurements and metabolic data to better

understand the biological drivers of individuals' metabolism and health.

Action Points



"Through this collaboration with GE we have the opportunity to use cutting-edge diagnostic tools to increase our

understanding of how nutrition and lifestyle choices impact body composition and metabolic health. With this knowledge,

Nestle can continue to deliver science-based nutritional products to improve and enhance the quality of peoples' lives."

Prof. Peter van Bladeren, head of Nestle Science and Research

In May 2008, it also emerged that the NRC, Alberto Santos Dumont Association for Science (Brazil), and the Swiss Federal

Institute of Technology (EPFL) were collaborating to evaluate the influence of individual genetic make-up on taste

sensitivity. According to the company, the findings of the research will enable the development a variety of food and

beverage applications "to meet consumer needs at all ages and stages of life".

“The collaboration between Nestlé Research and leading worldwide brain institutes will open a new dimension in sensory

research, allowing Nestlé to provide a broad range of choices to meet personal taste and nutrition preferences."

Peter van Bladeren, head of Nestlé Science and Research

Figure 43: Nutrgenitics and genomics will drive the next generation of health and wellness food and

beverages

Source: Datamonitor; www.sciona.com; www.wellgen.com; www.consumergenetics.com D A T A M O N I T O R

Appendix



APPENDIX

Definitions • Functional food and drinks – everyday packaged food and beverage products that contain specific

physiologically active components that provide health and wellbeing benefits beyond basic nutritional functions

(the term ‘nutraceuticals’ is interchangeable with the term ‘functional food and drinks’).

• Health mega-trend – consists of an umbrella of consumer behaviors that reflect heightened emphasis on

wellbeing. Health is a complex trend characterized by a multitude of wellness related behaviors.

• Individualism mega-trend – The Individualism mega-trend represents consumers’ desires to be themselves

and be recognized as having personal needs rather than being part of the mass market. It reflects how values

promoting notions of self-expression and individuality are rising.

• Personalized nutrition – reflects a crossover between the health and individualism mega-trends; the coming

together of intensifying health concerns and a ‘just-for-me’ ethos driving a desire for products, services, and

experiences that cater to specific needs and identities

• Nutrigenomics – the interaction of dietary components that are nutritive (vitamins, minerals, fatty acids),

bioactive (phytochemicals), or metabolites of food components (retinoic acid, eicosanoids) with genes to result in

gene expression.

Methodology

The nature of New Consumer Insight (NCI) is that we have to build up a picture of consumer behavior, and how it will

develop. These are often from incomplete and sometimes conflicting datasets which means that there is no one analytical

tool that we use. It also means that primary and secondary sources inform all the different areas of the analysis; qualitative

and quantitative analysis is based on the combination of both primary and secondary research.

• Online consumer surveys – since 2003, Datamonitor has conducted large and small scale consumer surveys

across France, Germany, Italy, the Netherlands, Spain, Sweden, the UK and the US for the purpose of New

Consumer Insight. More recently, in August 2008, Datamonitor surveyed consumers in 15 countries: Australia,

Brazil, China, France, Germany, India, Italy, Japan, Netherlands, Russia, South Korea, Spain, Sweden, UK, and

the US. Whilst any one NCI report may well draw heavily on one of our consumer surveys, a report may in fact

use the results of more than one survey, or indeed may not make use of a survey if not appropriate for the

specific topics that we are analyzing.

• Secondary research from company, trade, and academic sources – for the purpose of every New

Consumer Insight (NCI) report, Datamonitor analysts extensively examine trade and specialist publications,

along with business and academic journals. Other sources used include newspaper and periodical articles and

websites. For the most pertinent secondary sources used for this report, please refer to the ‘Further reading and

references’ section below.

Appendix



• Datamonitor’s Market Data – where relevant, NCI research will utilize information from Datamonitor’s Market

Data Analytics. This is a unique online information tool providing comprehensive data across global food, drinks

personal care household products, pet care, news and magazine and tobacco markets. It provides comparable

and accurate data covering historic market values, volumes, with five-year forecast, distribution channels,

company and brand shares.

• Consumption and Usage Demographics – where relevant, NCI research will utilize information from

Datamonitor’s proprietary Consumption and Usage Demogrphics data. This breaks down the total value of each

category covered within the Market Data Analytics into value of consumption accounted for by people from

different demographic groups (for example, the proportion of French savory snacks market value consumed by

people living in one-person households).

• Product Launch Analytics – Datamonitor’s consumer packaged goods Product Launch and Tracking database

provides the most comprehensive information covering new product launches in the world. It has global

coverage and provides a wealth of details on products introductions from the following industry sectors: food;

alcoholic drinks; non-alcoholic drinks; personal care; and household products.

• Country statistics – socio-demographic data, in particular population statistics, are taken from Datamonitor’s

global Country Statistics database to support the analysis.

Further reading and references

Datamonitor (2008) Private Label Shopping Trends in Food and Non-Alcoholic Beverages, November 2008, DMCM4648

Datamonitor (2008) Fiber & Whole Food Consumption Trends: Profitable Innovation Opportunities, July 2008, DMCM4635

Datamonitor (2008) Meeting Fruit and Vegetable Targets, June 2008, DMCM4630

Datamonitor (2008) 'On-Trend' Innovation & Marketing Concepts: The Individualism Mega-Trend, May 2008, DMCM4627

Datamonitor (2008) Online Social Networking, March 2008, DMCM4606

Datamonitor (2008) Functional Food, Drinks & Ingredients: Consumer Attitudes & Trends, February 2008, DMCM4602

Datamonitor (2007) Changing Media Orientations, December 2007, DMCM4601

Datamonitor (2007) Food & Drink Safety: Winning Back Consumer Trust, August 2007, BFCM0203

Datamonitor (2007) New Developments in Global Consumer Trends, April 2007, DMCM2468

Datamonitor (2007) Meeting Beauty and Wellness Needs Through Cosmeceuticals, BFCM1078

European Commission (2007) Research Food 2030 Conference Report, European Commission Directorate-General for

Research

Fletcher, W (2006) The Splintered Society, International Journal of Market Research 48(4), 2006

Appendix



Goldsmith, R.E. and Freiden, J.B. (2004) Have it your way: consumer attitudes toward personalized marketing, Marketing

Intelligence & Planning Vol. 22 No. 2, 2004 pp. 228–239

Institute of Food Technologists – The Intersection of Food and Genes, www.ift.org

International Food Information Council (IFIC) Foundation, 2008 Food & Health Survey: Consumer Attitudes toward Food,

Nutrition & Health, May, 2008, http://ific.org

International Food Information Council (IFIC) Foundation (2007) Consumer Attitudes toward Functional Foods/ Foods for

Health, October 2007, http://ific.org

International Food Information Council (IFIC) Foundation, 2007 Food & Health Survey: Consumer Attitudes toward Food,

Nutrition & Health, May, 2007, http://ific.org

Ask the analyst

The Consumer Knowledge Center Writing team

[email protected]

Datamonitor consulting

We hope that the data and analysis in this brief will help you make informed and imaginative business decisions. If you

have further requirements, Datamonitor’s consulting team may be able to help you. For more information about

Datamonitor’s consulting capabilities, please contact us directly at [email protected].

Disclaimer

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means,

electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the

findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith

from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such

Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be

incorrect.

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