Diet Foods- 2010 Edition

  • November 2009
  • -
  • Key Note Publications Ltd


The diet foods market as covered in this Market Assessment report encompasses several distinct sectors. These have followed different growth paths. The old established low-calorie foods and drinks sector declined during the short-term rise in popularity of low-carbohydrate foods and drinks; however, both sectors have now been overshadowed by the growing interest in foods or drinks with low-Glycaemic-Index (GI) ratings, and by continued market growth in the wide variety of low-fat and reduced-sugar products on offer. The low-fat and reduced-sugar foods and drinks sector dominates the diet foods market as defined in this report.

Unilever's market-leading range of Slim.Fast low-calorie foods and drinks has been affected by the growth, and subsequent decline, of Atkins Nutritionals' and other suppliers' low-carbohydrate foods and drinks during 2004 and early 2005. Unilever is now continuing to support Slim.Fast, but — like Nestlé, Heinz, Atkins and others — is reducing its range of and support for low-carbohydrate products.

The very sizeable low-fat and reduced-sugar foods and drinks sector has become an area of major interest to manufacturers, and one of significant new product development (NPD). In part, this has been the result of government-led pressure for the UK population — particularly children — to consume less saturated fat, sugar and salt in their diets, in an attempt to halt the rapid increase in the numbers of overweight and obese persons.

Low-fat or reduced-sugar variants are now available within virtually all the sectors of the food and drink market, with total sales estimated to have grown by 3.8% in value in 2006 — the same annual growth rate as in 2005. However, the low-fat and reduced-sugar foods and drinks sector is forecast to increase at a slowing growth rate over the next 5 years (to 2011).

Sales of semi-skimmed and skimmed milks (excluding soya milk) account for half of the low-fat and reduced-sugar foods and drinks sector, in value terms. Other dairy products apart from milk represent nearly a quarter of the total value of the low-fat and reduced-sugar sector. This is principally attributable to low-fat yoghurts and chilled desserts, and to cheeses.

The bakery products segment holds a 10.6% value share of the total low-fat and reduced-sugar foods and drinks sector. This share is growing, and is principally accounted for by low-fat potato crisps and other bagged savoury snacks — a significant growth area within this being rice- and corn-based products. A 5.3% share of the total low-fat and reduced-sugar sector is held by low-fat ready meals, although this proportion is falling. A slowly rising share of around 4% is held by low-fat and low-calorie sauces and soups, mainly through salad accompaniments (i.e. salad creams, mayonnaise and dressings).

The balance of the low-fat and reduced-sugar foods and drinks sector is accounted for by a range of products including soya milk, canned beans and pasta, cereal bars, jams and marmalades, and chocolate or malted hot beverages. Retailers' own-label products have taken advantage of the trend towards `healthier' diets, with sub-brands such as Healthy Living (Tesco), Be Good to Yourself (Sainsbury's) and Count on Us (Marks & Spencer).

Low-fat and reduced-sugar foods and drinks are manufactured by all the major food producers, with particularly strong brands (and some own-label items) made by Arla, Associated British Foods (AB Foods), Dairy Crest, Heinz, Kraft, Müller, Nestlé, Premier Foods, Quaker, Streamline Foods, Unilever and United Biscuits.

Main media advertising expenditure on all products covered in this report rose by 39.9% in the 12 months to September 2005, but fell by 18.5% in the year to September 2006. 
 

Table Of Contents

Executive Summary

1. Introduction

BACKGROUND AND DEFINITIONS

2. Strategic Overview

MARKET DYNAMICS AND SEGMENTATION
Government Dietary Initiatives
Table 2.1: The ‘Balance of Good Health’ Guide
The Body’s Need for Energy
Table 2.2: UK Average Energy Intakes from All Foods and Drinks, Excluding Alcohol (kilocalories, kilojoules and grams per person per day) 2004/2005, 2005/2006, 2006 and 2007
Guideline and Actual Energy Intakes
Table 2.3: Estimated Average Requirements for Energy by Age Group and Sex (kcal per day)
Table 2.4: Recommended Intake of Fats, Protein and Carbohydrate for Energy Needs (% of total energy)
Table 2.5: UK Average Energy Intakes from All Foods and Drinks, Excluding Alcohol (% of food and drink energy) 2004/2005, 2005/2006, 2006 and 2007
Sources of Energy in the British Diet
Table 2.6: Sources of Energy in the Diet of British Adults (% contribution to average daily intake)
Fats
Table 2.7: Major Food Sources of Saturated and Unsaturated Fatty Acids
Protein
Table 2.8: Protein Content of Selected Foods (grams per 100 grams food)
Carbohydrate
Table 2.9: Carbohydrate Content of Selected Foods
(grams per 100 grams food)
Nutritional Requirements by Age Group
Children
Teenagers
Adults
Table 2.10: Total Average Energy Intake by Food Type, Excluding Alcohol (kilocalories per person per day), 2007
Trends in Food Consumption
Table 2.11: Consumption of Selected Foods (grams/millilitres per person per week), 1974, 2004/2005, 2005/2006, 2006 and 2007
Weight and Obesity Trends
Table 2.12: Trends in Body Mass Index in England by Sex (% of adults), 1993, 1995, 1997, 1999, 2001, 2003, 2005 and 2007
Table 2.13: Body Mass Index in England by Sex and Age (% of adults), 2007
Table 2.14: Trends in Body Mass Index of Children Aged 2 to 15 in England (%), 1995, 1997, 1999, 2001, 2003, 2005 and 2007
Levels of Physical Activity
Meeting the Guidelines
Table 2.15: Proportion of Adults Achieving High Activity Levels
in England by Sex and Age (%), 1997, 2003, 2004 and 2006
Market Size
DISTRIBUTION
COMPETITIVE STRUCTURE
ADVERTISING
THE CONSUMER
Slimming
Table 2.16: Adults Who Have Been Slimming in the Past 12 Months by Sex, Age and Social Grade (%), March 2009
Eating Low-Fat Spreads/Margarines
Table 2.17: Adults Who Have Eaten Low-Fat Dairy Spreads/Soft Margarine in the Past 12 Months by Sex, Age and Social Grade (%), March 2009
Visiting Leisure Centres, Gyms and Health Clubs
Table 2.18: Frequency of Visits to Leisure Centres, Gyms and Health Clubs by Sex and Age (% of adults), 2008
MARKET FORECASTS

3. Market Analysis

BACKGROUND
Principles Behind Dieting
Low-Fat Diets
High-Fibre Diets
Low-Carbohydrate Diets
The Glycaemic Index
Table 3.1: Glycaemic Index Ratings for Selected Foods
Adopting a Healthy Approach
MARKET SECTORS
Low-Fat and Reduced-Sugar Products
Meal-Replacement Products
Low-Carbohydrate Foods and Drinks
Atkins Nutritionals
Other Suppliers
Low-Calorie Slimming Foods
MARKET SIZE
Low-Fat and Reduced-Sugar Products
Table 3.2: The Low-Fat and Reduced-Sugar Foods and Drinks Market by Product Category by Value at Current Prices (£m and %), 2006-2008
Figure 3.1: The Low-Fat and Reduced-Sugar Foods and Drinks Market by Product Category by Value at Current Prices (%), 2008
Table 3.3: Share of Product Categories Held by Low-Fat and Reduced-Sugar Foods and Drinks by Value at Current Prices (%), 2008
Dairy Products
Milk
Table 3.4: The Low-Fat Milk Market by Value at Current Prices (£m and %), 2006-2008
Yoghurts, Chilled Desserts and Yoghurt Drinks
Table 3.5: The Low-Fat/Fat-Free Yoghurts, Chilled Desserts and Yoghurt Drinks Market by Value at Current Prices (£m and %), 2006-2008
Cheese
Table 3.6: The Low-Fat Cheese Market by Value at Current Prices (£m and %), 2006-2008
Butters and Spreads
Table 3.7: The Low-Fat Butters and Spreads Market by Value at Current Prices (£m and %), 2006-2008
Ambient Desserts and Custards
Table 3.8: The Low-Fat Ambient Desserts and Custards Market by Value at Current Prices (£m and %), 2006-2008
Ice Cream
Table 3.9: The Low-Fat Ice Cream Market by Value at Current Prices (£m and %), 2006-2008
Ready Meals
Chilled Ready Meals
Table 3.10: The Low-Fat Chilled Ready Meals Market by Value at Current Prices (£m and %), 2006-2008
Frozen Ready Meals
Table 3.11: The Low-Fat Frozen Ready Meals Market by Value at Current Prices (£m and %), 2006-2008
Bakery Products
Crackers and Crispbreads
Table 3.12: The Low-Fat Crackers and Crispbreads Market by Value at Current Prices (£m and %), 2006-2008
Sweet Biscuits
Table 3.13: The Low-Fat Sweet Biscuits Market by Value at Current Prices (£m and %), 2006-2008
Bread
Table 3.14: The Low-Fat Bread Market by Value at Current Prices (£m and %), 2006-2008
Cakes and Cake Bars
Table 3.15: The Low-Fat Cakes and Cake Bars Market by Value at Current Prices (£m and %), 2006-2008
Crisps and Savoury Snacks
Table 3.16: The Low-Fat Crisps and Savoury Snacks Market by Value at Current Prices (£m and %), 2006-2008
Cereal Products
Breakfast Cereals
Table 3.17: The Low-Fat/Reduced-Sugar Breakfast Cereals Market by Value at Current Prices (£m and %), 2006-2008
Cereal Bars
Table 3.18: The Low-Fat/Reduced-Sugar Cereal Bars Market by Value at Current Prices (£m and %), 2006-2008
Dressings, Soups and Sauces
Salad Accompaniments
Table 3.19: The Low-Fat Salad Accompaniments Market by Value at Current Prices (£m and %), 2006-2008
Ambient and Chilled Soups
Table 3.20: The Low-Fat Soups Market by Value at Current Prices (£m and %), 2006-2008
Soya Milk
Table 3.21: The Soya Milk Market by Value at Current Prices (£m), 2006-2008
Chocolate and Malted Hot Beverages
Table 3.22: The Light/Low-Calorie Chocolate and Malted Beverages Market by Value at Current Prices (£m and %), 2006-2008
Canned Beans and Pasta
Table 3.23: The Reduced-Sugar/Salt and Low-Fat Canned Beans and Pasta Market by Value at Current Prices (£m and %), 2006-2008
Jams and Marmalades
Table 3.24: The Reduced-Sugar Jams and Marmalades Market by Value at Current Prices (£m and %), 2006-2008
Other Foods
Cream
Ambient Cooking Sauces
Frozen Desserts
Others
Table 3.25: Other Low-Fat Foods by Value at Current Prices (£m), 2006-2008
Meal-Replacement Products
Low-Carbohydrate Foods and Drinks
Low-Calorie Slimming Foods

4. Advertising and Promotion

MAIN MEDIA ADVERTISING EXPENDITURE
Table 4.1: Main Media Advertising Expenditure on Low-Fat and Reduced-Sugar Foods (£000), Years Ending June 2008 and 2009
ADVERTISING RESTRICTIONS
FOOD LABELLING

5. Distribution

SHARES BY RETAIL OUTLET
Table 5.1: Approximate Shares of the Major Food Sectors that Include Low-Fat Variants by Retail Outlet (%), 2009

6. An International Perspective

EUROPE

7. PEST Analysis

POLITICAL FACTORS
ECONOMIC FACTORS
SOCIAL FACTORS
TECHNOLOGICAL FACTORS

8. Consumer Dynamics

OVERVIEW
Table 8.1: Summary of Research Findings — Consumers’ Attitudes Towards and Behaviour Relating to Healthy Eating and Dieting (% of respondents) July 2009
EATING LOW-FAT AND REDUCED-SUGAR PRODUCTS
Consumers of Low-Fat or Reduced-Sugar Versions
Table 8.2: Adults Who Eat the Low-Fat or Reduced-Sugar Versions of Foods and Drinks (% of respondents), July 2009
Balanced Eaters of Ordinary Foods
Table 8.3: Adults Who Eat a Balanced Amount of Healthy Ordinary Foods Rather Than Low-Fat or Reduced-Sugar Versions (% of respondents), July 2009
Those for Whom ‘Low’ Means Inferior in Taste
Table 8.4: Adults for Whom Low-Fat, -Salt and -Sugar Versions Taste Inferior to Standard Versions (% of respondents), July 2009
FOOD LABELS
Shoppers Who Read the Labels
Table 8.5: Adults Who Read the Labels on Foods and Drinks to Find
the Calorie, Fat, Salt or Sugar Contents (% of respondents), July 2009
Those Who Appreciate the New Labelling Systems
Table 8.6: Adults Who Find Labels With ‘Traffic Light’ and GDA Information Easier to Understand (% of respondents), July 2009
CONCERNS ABOUT OBESITY
Table 8.7: Adults Who Are Concerned About the Increasing Numbers of Overweight and Obese Persons (% of respondents), July 2009
LEVELS OF EXERCISE
Table 8.8: Adults Who Are Exercising More Than They Did 12 Months Ago (% of respondents), July 2009
FOOD MANUFACTURERS’ AND RETAILERS’ RESPONSIBILITIES
Those Who Think Manufacturers Should Do More
Table 8.9: Adults Who Think Manufacturers Should do More to Reduce the Fat, Salt and Sugar Content of Their Products (% of respondents), July 2009
Those Who Think Retailers Should Do More
Table 8.10: Adults Who Think Food Retailers Should Encourage Consumers to Buy Low-Fat, -Salt and -Sugar Products (% of respondents), July 2009
Those Who Think the Government Should Do More
Table 8.11: Adults Who Think the Government Should Discourage the Advertising of High-Fat, -Salt and -Sugar Products (% of respondents), July 2009
DIETING
The Dieters
Table 8.12: Adults Who Are on a Diet or Have Been in the Past 12 Months (% of respondents), July 2009
Those Who Eat Low-Calorie Meal-Replacement Products
Table 8.13: Dieters Who Eat Low-Calorie Meal-Replacement Products (% of respondents), July 2009
Those Who Eat Low-Fat, -Salt or -Sugar Foods
Table 8.14: Dieters Who Eat the Low-Fat, Low-Salt or Reduced-Sugar Versions of Standard Foods (% of respondents), July 2009
The Calorie Counters
Table 8.15: Dieters Who Count Calories and Eat Balanced Amounts of Healthy Foods (% of respondents), July 2009

9. Company Profiles

ALPRO UK LTD
Table 9.1: Financial Results for Alpro UK Ltd (£000), Years Ending 31st December 2006-2008
ARLA FOODS LTD
Table 9.2: Financial Results for Arla Foods Ltd (£000), 65 Weeks Ending 30th September 2006, and Years Ending 31st December 2007-2008
ASSOCIATED BRITISH FOODS PLC
Table 9.3: Financial Results for Associated British Foods PLC (£000), Years Ending 16th September 2006, 15th September 2007 and 13th September 2008
ATKINS NUTRITIONALS UK LTD
BAXTERS FOOD GROUP LTD
Table 9.4: Financial Results for Baxters Food Group Ltd (£000), Years Ending 27th May 2006, 2nd June 2007 and 31st May 2008
BEL UK LTD
Table 9.5: Financial Results for Bel UK Ltd (£000), Years Ending 31st December 2005-2007
CADBURY TREBOR BASSETT
Table 9.6: Financial Results for Cadbury PLC (£000), Years Ending 31st December 2007 and 2008
DAIRY CREST GROUP PLC
Table 9.7: Financial Results for Dairy Crest Group PLC (£000), Years Ending 31st March 2007-2009
DANONE LTD
Table 9.8: Financial Results for Danone Ltd (£000), Years Ending 31st December 2006-2008
GREENCORE GROUP PLC
Table 9.9: Financial Results for Greencore Group PLC (€000), Years Ending 29th September 2006, 28th September 2007 and 26th September 2008
HJ HEINZ COMPANY LTD
Table 9.10: Financial Results for HJ Heinz Company Ltd (£000), Years Ending 3rd May 2006, 2nd May 2007 and 30th April 2008
KAVLI LTD
Table 9.11: Financial Results for Kavli Ltd (£000), Years Ending 31st December 2006-2008
KELLOGG MARKETING AND SALES COMPANY (UK) LTD
Table 9.12: Financial Results for Kellogg Marketing and Sales Company (UK) Ltd (£000), Years Ending 31st December 2005, 30th December 2006 and 29th December 2007
KERRY GROUP PLC
Table 9.13: Financial Results for Kerry Group PLC (€000), Years Ending 31st December 2006-2008
KRAFT FOODS UK LTD
Table 9.14: Financial Results for Kraft Foods UK Ltd (£000), Years Ending 17th December 2005, 16th December 2006 and 15th December 2007
MÃœLLER DAIRY (UK) LTD
Table 9.15: Financial Results for Müller Dairy (UK) Ltd (£000), Years Ending 31st December 2006-2008
NESTLE UK LTD
Table 9.16: Financial Results for Nestle UK Ltd (£000), Years Ending 31st December 2005-2007
PREMIER FOODS PLC
Table 9.17: Financial Results for Premier Foods PLC (£000), Years Ending 31st December 2006-2008
PROCTER and GAMBLE UK
QUAKER OATS LTD
Table 9.18: Financial Results for Quaker Oats Ltd (£000), Years Ending 30th December 2006, 29th December 2007 and 27th December 2008
RandR ICE CREAM LTD
Table 9.19: Financial Results for RandR Ice Cream Ltd (€000), Years Ending 31st December 2006-2008
ROBERT WISEMAN DAIRIES PLC
Table 9.20: Financial Results for Robert Wiseman Dairies PLC (£000), Years Ending 31st March 2007, 29th March 2008 and 4th April 2009
SO GOOD INTERNATIONAL LTD
STREAMLINE FOODS LTD
Table 9.21: Financial Results for Streamline Foods Ltd (£000), Years Ending 31st December 2006-2008
TAYTO (NI) LTD
Table 9.22: Financial Results for Tayto (NI) Ltd (£000), Years Ending 1st July 2006, 30th June 2007 and 5th July 2008
UNILEVER PLC
Table 9.23: Financial Results for Unilever PLC (€000), Years Ending 31st December 2006-2008
UNITED BISCUITS (UK) LTD
Table 9.24: Financial Results for United Biscuits (UK) Ltd (£000), Years Ending 30th December 2006, 29th December 2007 and 3rd January 2009
WALKERS SNACK FOODS LTD
Table 9.25 Financial Results for Walkers Snack Foods Ltd (£000), Years Ending 30th December 2006, 29th December 2007 and 27th December 2008
WARBURTONS LTD
Table 9.26: Financial Results for Warburtons Ltd (£000), Years Ending 30th September 2006, 29th September 2007 and 27th September 2008
WEETABIX LTD
Table 9.27: Financial Results for Weetabix Ltd (£000), Years Ending 31st December 2005, 30th December 2006 and 29th December 2007
WEIGHT WATCHERS (UK) LTD
Table 9.28: Financial Results for Weight Watchers (UK) Ltd (£000), Years Ending 31st December 2006-2008
THE YEO VALLEY GROUP LTD
Table 9.29: Financial Results for The Yeo Valley Group Ltd (£000), Years Ending 3rd June 2007, 1st June 2008 and 31st May 2009
OTHER MANUFACTURERS OF BRANDS
RETAILER OWN LABEL

10. The Future

FORECASTS 2009 TO 2013
Table 10.1: The Forecast Low-Fat and Reduced-Sugar Foods and Drinks Market by Product Category by Value at Current Prices (£m), 2009-2013
Figure 10.1: The Forecast Low-Fat and Reduced-Sugar Foods and Drinks Market by Value at Current Prices (£m), 2009-2013

11. Further Sources

Associations
Publications
General Sources
Government Sources
Other Sources
Key Note Sources
Understanding TGI Data
Number, Profile, Penetration
Social Grade
Standard Region
Key Note Research
The Key Note Range of Reports

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