This month’s Times&Trends focuses on the wellness evolution, focusing on the current low-carb consumer craze, highlights from a recent Information Resources study, which will be presented in depth at its first annual “Reinventing CPG Summit” later in February. This analysis draws from consumer purchase behavior linked to their wellness concerns and attitudes over the past few years.

Consumer demand for healthier and nutritional benefits is growing - evidenced by recent consumer response to the Atkins low-carb diet and low-carb innovations or product categories. “Low-carb” is part of an overall wellness evolution that has many facets to it. Wellness is a major force that will have a significant influence on consumer purchase behavior within a number of product categories and services. “We are what we eat and drink” has taken hold and is fostering growth and shopper interest in wellness products.

This free summary is also accessible via the GMA Web site  at http://www.gmabrands.com/publications/gmairi.cfm

IRI’s benchmark wellness study addresses health concerns’ impact on purchase behavior.  IRI conducted a comprehensive analysis of wellness attitudes and purchase behavior to provide insights into macro consumer trends and highlight emerging opportunities. It reinforces the growing consumer interest in not just healthier products, but nutritionally fortified products.

Healthier & Nutritional Products Are Pacing Growth.   Compound annual growth in dollars per thousand households over two years reveals that indulgent snacks and beverages are essentially flat, while their healthier counterparts experienced modest growth and nutritional counterparts strong growth.

The low-carb craze is spearheaded by the Atkins diet. 
But the national obesity crisis, media attention, new low-carb product launches and fast food restaurants’ quick response offerings have attracted attention to reduced carbohydrate consumption just as fat and cholesterol content did in the early 90s.

New and existing buyers drive low-carb branded product growth.
Sales of a core of snack and beverage low-carb brands have tripled in just four years. Household penetration is up 10 points, to 21 percent, and purchases-per-buyer have nearly doubled.

The low-carb diet craze has ignited many categories.   Fourteen relatively mature product categories (all low in carbohydrates per serving) are $1.2 billion ahead of year ago because of consumer low-carb interest. Many shelf-stable, refrigerated or fresh and frozen meat, poultry and cheese categories are significantly ahead of year ago. Pork rinds, snack nuts and dried meat snacks are selling. The bacon and egg breakfast is back!

Taste & variety demands drive the need for balance.
Taste is a pivotal factor in food & beverage selection – 46 percent of consumers in the study said they “rarely give up good taste for health benefits.” And consumers are not about to give up variety in their selections. The study shows that attitudes towards health influence behavior, but they do not dictate behavior. Even the most health-conscious consumers purchase a balanced mix - indulgent products represented more than 50 percent of snack and beverage purchases of even these more health-minded consumers.

Low-Carb dieting is flanked by other successful diet plans and brands.  Atkins or low-carb dieting is not the only way to weight-loss. Other concepts have proven successful over the long term and have found ways to introduce taste and variety into their programs.

Change is here, but the impact may be slow and gradual.
Consumers are more and more interested in healthier, nutritional eating and weight-loss objectives - this is clear. However, history and consumers' extended interest in indulgent products and variety tells us that diets are not about to become “nutrition-pure.”

But there’s current evidence that healthier, nutritional eating and weight-loss objectives are driving significant shopper shifts and growth in emerging healthier and nutritional shelf-stable, refrigerated and frozen category segments.

And there’s evidence that some consumer groups - with more defined food & beverage wellness needs - will be more aggressive than others in implementing shifts. The brief identifies three significant opportunities worthy of CPG marketer and retailer attention: obese and diabetic consumers, 55 and over or boomer consumers, and the family-with-children demographic segment.
 

Details on the Reinventing CPG Summit where the study will be presented in depth are in the brief or at www.cpgsummit.com.   
Times & Trends reviews new developments and critical events across all major CPG categories, key channels and all consumer groups, providing powerful benchmarking insights to help guide strategic decisions.