Download - Sugar & Sweeteners the Consumer & Industrys Response -

8/9/2019 Sugar & Sweeteners the Consumer & Industrys Response -

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© 2014 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel

Sugar and sweeteners: the

consumer and industry’s response FDIN May 2014


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mintel.com2

Everyday at Mintel…


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mintel.com3

Today’s presentation

What do consumers think about sugar andsweeteners?

What are the latest trends in sugar reduction?

How are products formulated and positioned, andwhat’s working?

Sugar &sweetener

s

Sugarreduction

Winners,

losers, theopportunity


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mintel.com4

UK consumers, types of products considered to be healthy, Sep2013

Roughly 40% of consumers say low/no sugar is healthy, higher thanthe response for low calorie or generic “light/diet” labelling

Consumers recognise low sugar and sugar-free as a healthy option…

Source: GMI/Mintel

Base: 2,000 internet users aged 16+

15

17

19

21

26

28

35

41

4245

0 5 10 15 20 25 30 35 40 45 50

Low in carbohydrates

Organic

Labelled 'natural'Labelled 'light' or 'diet'

Unprocessed

High fibre

Low calorie

Low sugar/sugar-free

Low fat/fat-freePart of my five-a-day

%


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Low sugar, sugar-free, considered to be healthy, Sep 2013

Women and consumers aged 45+ are far more likely to see low sugarand sugar-free as a healthy option

…Especially women and older consumers

Source: GMI/Mintel


41

34

48

3734

36

43

5052

0

10

20

30

40

50

60

All Male Female 16-24 25-34 35-44 45-54 55-64 65+

%


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UK consumer, attitudes towards diet foods, Sep 2013

Nearly 60% of consumers say they are wary of ingredients includingsweeteners used in diet foods; half would like to see more natural

sweeteners

Consumers are sceptical of sweeteners…

Source: GMI/Mintel


50

58

36

31

14

11

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

I'd like to see more products using natural

sweeteners to replace sugar

I'm wary of the ingredients/sweeteners in

diet food products

Any agree Neither agree nor disagree Any disagree


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UK consumers, actions taken to manage weight, Sep 2013

After exercise, cutting back on fatty and sugary foods/drinks are the2nd and 3rd most important actions taken to manage weight

Consumers cite sugar reduction as key weight management strategy

Source: GMI/Mintel

Base: 1,394 internet users aged 16+ who have tried to lose weight/maintain ahealthy weight in the last 12 months

15

18

2528

30

41

48

48

49

60

0 10 20 30 40 50 60 70

Skip meals

Eat more high protein food

Eat more low sugar/fat/cal productsCut back on carbohydrates

Cut back on alcohol

Cut back on desserts

Eat smaller portions

Cut back on sugary foods/drinks

Cut back on fatty foods

Exercise more

%


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mintel.com8

UK new product introductions with low/no sugarclaim, as % total introductions

The percentage of new products labelled sugar-free or low sugar hasdeclined over time in key categories

Where do we see sugar-free and reduced sugar products?

Source: Mintel GNPD

0%

5%

10%

15%

20%

25%

30%

Soft Drinks Snack Bars/

Fruit Snacks

Candy & Gum Breakfast

Cereals

Yogurt & Flav

Milk

Apr09-Mar10

Apr10-Mar11

Apri11-Mar12

Apr12-Mar13Apr13-Mar14


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• Stevia has madeits mark in 2012-

13…

• 41% of UKconsumers saidthey wereinterested inbuying low calorieCSDs made withnaturalsweeteners e.g.stevia

•

But acesulfame-kand sucralose leadand both haveshown growth inuse over time

• Use of aspartame,

What’s sweetening sugar-free and low sugar soft drinks?

Source: Mintel GNPD

Use of sweeteners in new softdrinks, as % total

0%

5%

10%

15%

20%

25%

30%

35%

40%

Apr11-Mar12

Apr12-Mar13

Apr13-Mar14


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UK retail value growth 2010-12

In the US market diet / low cal CSDs take 34% share and are forecastto grow by 2-3% per year over the next few years, following a period

of decline

Diet carbonated soft drinks are strong…

After price and brand,low calorie content isthe third most importantfactor influencing choice

of CSD (31% ofrespondents)

Source: Mintel

18%

4%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Diet / low calorie CSDs Regular CSDs

Diet / low calorie

CSDs now accountfor 45% of themarket by value


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UK retail value growth 2010-12

Juice drinks as a whole have benefited from a good value image andactive NPD, but low sugar variants have failed to capitalise on the

opportunity

…While low sugar juice drinks have struggled lately

32% of consumerslimit their

consumption of juicedrinks due to the

high sugar content

Source: Mintel

Low sugar juicedrinks account for

just 16% of thesegment by value,down from 20% in

2010

-21%

6%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

Low sugar Standard


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47%

Key factors influencing purchase of juice and juice drinks

High fruit content is the key factor, after flavourand price/promotion are eliminated

39% Of consumers say “Counts towards therecommended ‘5-a-day’ of fruit/vegetables”

29% Low sugar content is at best a 3rd factor

Source: GMI/Mintel

Base: 1,292 internet users aged 16+ who have bought fruit juice in the last threemonths


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Tropicana Trop50Del Monte

Naturally Light

Trop50 remains thebig story in sugar

reduction (andstevia), with £15m

in retail sales in2013.

Both are sweetenedwith stevia.

50% less sugar andcalories (3.9g-4.4g sugarsper 100ml, according to

variant)

50% less sugar, 50calories per glass (4.5g

sugars per 100ml)

Low sugar juice drinks – winners and losers

Source: Mintel GNPD


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Coca-Cola Sprite withstevia, 30% less sugar

Vimto Panda Still Juice Drinks,“no added sugar, no

aspartame”

Innocent Fruity Water forKids, 50% pure fruit juice,

50% spring water

Brands reformulate and launch new products, with diversemessages around sugar (or lack of…)

Diverse messages for low sugar positioning

Source: Mintel GNPD


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44%

Key factors influencing purchase of kid’s snacks

Of consumers look for products that deliver one offive-a-day

34% Of consumers cite low sugar/salt as a key factor

32% Of consumers look for “natural” attributes

Source: GMI/Mintel

Base: 937 internet users aged 23+ who have bought snacks for their child (aged7-15)


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Stream Foods’ FruitBowl Sea Fruit

Shapes

Both products arelabelled free from

artificial ingredients,

“1 of your 5 a day”,and “no added

sugar”.

Sugars 50g per 100g “Contains naturally

occurring sugars”

So these meet the criteria?

Source: Mintel GNPD


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41%

Key factors influencing purchase of breakfast cereals

Of consumers cite satiety, “Keeps you feeling fulluntil lunchtime”

38% Of consumers focus on high in fibre content

29%Of consumers mention low in sugar as a key factorfor themselves; rises to 32% for family purchase

Source: GMI/Mintel

Base: 1,846 internet users aged 16+ who use breakfast cereals


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Nestlé Chocapic Duo, France,reformulated 2013

Sugar reduction strategy

Front-of-pack:less than 9g sugar

per portion

Nutrition panel:

28.7g sugars per

100g (previously35.9g/100g)

Added calcium

Wholegrain

Source: Mintel GNPD


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Bear Alphabites, UK

Sugar replacement strategy

Front-of-pack: “no addednonsense”

Nutrition panel:

18g sugars per 100g

Sweetened with coconutblossom nectar, which

has a lower GIcompared to other

sugars

Source: Mintel GNPD


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33%

Key factors influencing purchase of yogurt and flavoured milk

Of consumers cite “all natural ingredients” as thekey factor for yogurt, after flavour andprice/promotion are eliminated

29% Of UK yogurt purchasers cite low sugar / sugar-free as an important attribute

49%

Of consumers agree with the statement, “moreflavoured milk should contain natural sweeteners(e.g. stevia) as opposed to sugar”; rising to 54%among 16-24 year olds

Source: GMI/Mintel

Base: 1,602 internet users aged 16+ who have bought yogurt in the last 3months


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Tesco Healthy LivingWhipped Yogurt, UK

Yogho! Yogho!drinking yogurt, NL

Both products aresweetened with

sugar and stevia.

Both flag “reducedsugar” front-of-

pack.

Stevia is notfeatured as a “destination

ingredient” Reduced sugar; “50% lesssugar than a typical Tescomousse” ; 9.2g sugars per

100g

40% less sugar thanaverage yogurt drinks

Sugar + stevia creates opportunity for sugar reduction

Source: Mintel GNPD


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Glenisk OrganicGo-Yos, Ireland

Moma! Bircher MuesliYogurt, UK

Go-Yos state front-of-pack “Developedby mums, sugar-

free recipe”.

Moma! yogurt stateson-pack “No added

refined sugar”.

Sweetened with organicagave syrup; 4.1-4.3g

sugars per 100g

Sweetened with fruit juice and puree; 11.9g

sugars per 100g

Sugar-free messages and sources of sugars

Source: Mintel GNPD

h l d f d d d d


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UK new product introductions with low/no sugarclaim, as % total introductions

Some growth in % of products labelled as sugar-free or low sugar, butfrom a low base; few new developments in sweet spreads or desserts

Where else do we see sugar-free and reduced sugar products?

Source: Mintel GNPD

0%

2%

4%

6%

8%

10%

12%

14%

16%

Sweet Spreads Sweet Biscs,

Cakes

Desserts/ Ice

Cream

Sauces/

Dressings

Apr09-Mar10

Apr10-Mar11

Apri11-Mar12

Apr12-Mar13Apr13-Mar14

S t bi it “li ht” “b tt f ”?


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BelvitaMcVitie’s

Digestives

The “healthier”biscuits segmentdeclined in value

terms by 5.4% from2012-2013.

Competition hascome from breakfast

biscuits: healthypositioning without

referencing the terms “light” or “diet”.

15g sugars per 100g;

slow releasecarbohydrates, rich incereals, source of fibre

16.8g sugars per 100g(higher for Light,reduced fat variant)

Sweet biscuits – “light” or “better for you”?

Source: Mintel

S li ht l l l i l f t


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Dolmio Light Saucefor Lasagne

Tesco Light Choices

In sauces anddressings most

examples of reducedsugar products are

overtly health-oriented brands, e.g.

Weight Watchers.

But leading brandsand private label offer “light” (low sugar)

alternatives

30% less sugar, madefrom 100% naturalingredients

30% less sugar, low in

calories, free fromartificial flavours, colours

and hydrogenated fat

Sauces – light, low sugar, low calorie, low fat

Source: Mintel GNPD

Conclusions


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Conclusions

Sugar reduction will continue to be a researchpriority

But the reality is that market penetration ofreduced sugar foods remains relatively low

Consumer interest is high, but consumers

may be deterred by a negative tasteperception, confused by on-pack messages

Sugar aspriority

The reality

Theconsumer

Future steps


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Future steps

Stealth health, or covert reduction, may work

in some categories

Alternative ingredients may provide part ofthe answer

But in either case on-pack communication iscritical

And bear in mind – consumers increasinglytake the holistic, balanced approach…

Stealth

health

Stevia& more

Comms

Balance


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David JagoDirector of Innovation & Insight

Th


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