Indulgence and Health In Confectionery: Emerging natural, functional and wellness trends

Indulgence and Health In Confectionery: Emerging natural, functional and wellness trends

Indulgence and Health in Confectionery
Emerging natural, functional and wellness trends

Business Intelligence for the Consumer Goods Industry

Business Insights' portfolio of consumer goods management reports are designed to help you make well informed and timely business decisions. We understand the problems facing today's consumer goods executives when trying to drive your business forward, and appreciate the importance of accurate, up-to-date, incisive product, market and company analysis. We help you to crystallize your business decisions.

The strength of our consumer goods research and analysis is derived from access to unparalleled databases and libraries of information and the use of proprietary analytic techniques. Business Insights reports are authored by independent experts and contain findings garnered from dedicated primary research. Our authors' leading positions secure them access to interview key executives and to establish which issues will be of greatest strategic significance for the industry.

Our consumer goods portfolio of reports can be used across a wide range of business functions to assess market conditions and devise future strategies and cover the food, drink, health, cosmetics, toiletries, dairy categories and key consumer issues including eRetail and marketing.

Key issues examined by this report...

• Concerns about marketing to kids. The concept of a ban on junk food is being debated around the world, as governments are choosing to step in and attempt to halt the increase in numbers of overweight and obese children and adults. Manufacturers including Kraft Foods, Mars, Nestlé, Unilever and General Mills have agreed that they will not advertise food and drink on the television, in print or on the Internet to young children, or promote products in primary schools.

• Obesity levels rising. Weight management is a growing trend within the global food and drinks marketplace. Although confectionery brands have been criticized for contributing to the rising number of overweight and obese people in the world, there is potential for credible and innovative brands to shake off this reputation and offer weight management products to people who are following low-calorie and/or low-fat diets.

• Stagnation drives innovation. The overall confectionery market does not have especially strong growth rates. It is an established, mature and long-standing category within the global food market, which is characterized by low but positive growth. Health offers new opportunities for growth.

Indulgence and Health in Confectionery
Emerging natural, functional and wellness trends

The global healthy food market is growing in value and volume year-onyear driven by rising levels of diet-related illnesses such as obesity, type-2 diabetes and cardiovascular disease; as well as consumer interest in nutrition, and technological advances in the ingredients industry. Healthy confectionery would have been something of an oxymoron just a few years ago; traditionally representing the indulgence rather than health trend. However, as the industry and consumers have become increasingly health-conscious, the development of healthy confectionery has become an imperative NPD strategy to avoid a steady and inevitable decline in sales. Indulgence and Health in Confectionery is a new management report published by Business Insights that examines the strength of the major health related confectionery categories across geographies and also outlines some emerging category opportunities. Assess the trends to understand future direction of the market and plan NPD strategies with this new report...

This new report will enable you to...

• Predict future market growth levels using this report's analysis of epidemiology data on cardiovascular disease and obesity in the 7 major markets (France, Germany, Italy, Spain, UK, the US and Japan).

• Understand the key trends in the confectionery market that have impacted marketing and NPD as well as confectionery sales potential, including EU health claims regulation and nutritional labeling.

• Improve targeting and the effectiveness of your NPD strategies with this report’s analysis of Productscan data of over 3,000 healthy product launches across the confectionery sector between 2004 and 2007. Detailed analysis of the top 20 product tags/descriptions and top 20 flavors over past 4 years. Comparison with the overall confectionery market to identify overlaps and potential new lines.

• Quantify new and emerging opportunities using current and forecasted sales data on diet and functional confectionery and sports and energy bars in the US and Europe to 2011.

Your questions answered...
• Which healthy confectionery sector offers the the highest value sales potential in Europe and the US to 2011?
• What are the major consumer trends influencing new product development?
• What are the major industry drivers pushing growth in healthy confectionery?
• Are there similarities between the types of flavors and product tags in the overall confectionery market versus the healthy confectionery sector?
• Which product trends have made the biggest impact on NPD over the past 4 years?

Some key findings from this report...
• The healthy image associated with dark chocolate is contributing to growth in chocolate’s market value, but it is worth noting that the growth rate (CAGR of 2.3% in Europe and 3.8% in the US) will be lower than expected in other highly innovative confectionery categories, including gum and cereal bars.

• The Spanish functional confectionery market has noted the strongest value increase in Europe from $51m in 2001 to $227m in 2011 (just behind the UK). Functional confectionery is attracting more attention than diet variants in Spain.

• Of all chewing gum products launched in 2007, 50.9% claimed to be healthy in some way. This increased from 38.5% in 2004.

• Overall, 23.9% of new healthy confectionery products carried a ‘no sugar’ label in 2007. 9.1% of healthy confectionery products claimed to be natural.

Table of Contents
Indulgence and Health in Confectionery
Executive Summary 8
The healthy confectionery market 8
Market drivers 9
Innovation and NPD 10
Innovation trends 11
Conclusions 12
Chapter 1 Introduction 14
Market background 14
What is this report about? 15
Report structure 16
Chapter 2 The healthy confectionery market 20
Summary 20
Introduction 21
Better-for-you confectionery drives growth 21
Confectionery market value 22
By category 24
Healthy indulgence 25
Diet confectionery 27
Functional confectionery 29
Sports and energy bars 31
Company analysis 32
Zetar 32
Cadbury Schweppes 34
M&A of the year: Mars acquires Wrigley 36
Private label players 37
Global healthy confectionery market potential 38
Chapter 3 Market drivers 40
Summary 40
Introduction 41
Stagnation drives innovation 41
Rising number of diet-related illnesses 45
Junk food marketing 47
Health claims regulation 50
Targeting children (and gatekeepers) 51
Mobile phone and Internet marketing 53
Chapter 4 Innovation and NPD 56
Summary 56
Introduction 56
Category analysis 57
Chewing gum 59
Sugar confectionery 60
Chocolate 61
Snack bars 62
Regional analysis 63
Asia-Pacific 65
Europe 66
North America 68
South America 70
Middle East & Africa 71
Product tag analysis 73
Natural and organic 74
Premiumization 75
Diet-friendly 75
Flavor innovation 77
Flavor comparison to overall confectionery market 79
Innovative healthy savory flavor launches 81
Chapter 5 Innovation trends 84
Summary 84
Introduction 84
Trend analysis 85
Low and light 86
Natural and organic 90
Sports and energy 93
Wellness and wellbeing 98
Beauty 100
Healthy and natural 101
Indulgence through self-treating/rewards 102
The gender divide 102
Prevention and cure 102
Convenience (on-the-go, single-serve) 102
Innovative product examples 103
Functional 104
Chewing gum 106
Chocolate 107
Confectionery snack bars 108
Sugar confectionery 109
Next generation weight management 110
Premiumization 113
Chewing gum 114
Chocolate 115
Confectionery snack bars 115
Sugar confectionery 116
Sugar replacing ingredients 117
Targeting by age 119
Chapter 6 Conclusions 122
Summary 122
Introduction 122
European hotspot 122
Get real 123
Target specific health concerns 123
Optimize consumption occasions and consumer groups 123
Spread the brand story 124
Index 125
List of Figures
Figure 4.1: Percentage of healthy confectionery products launched in each category, 2004-2007 57
Figure 4.2: Percentage of healthy confectionery products launched, by category, 2004-2008 58
Figure 4.3: Trident Splash and Trident Soft 60
Figure 4.4: Sula Polza Prirody by Perfetti Van Melle 61
Figure 4.5: Lotte Zero Mild 62
Figure 4.6: Percentage of healthy confectionery products launched, by region, 2004-2007 64
Figure 4.7: Mentos Blast chewing gum 65
Figure 4.8: Rapunzel Organic Schokolade and Zotter chocolate bars 68
Figure 4.9: Bellybar Pregnancy Nutrition Chews, Kik Energy Balance Ginseng Gum and Origins
Sensory Therapy Chocolates Dark Chocolate Bars 70
Figure 4.10: Breick Diet Banadas en Chocolate 71
Figure 4.11: Elite Must Lychee Orange chewing gum 72
Figure 4.12: Sarotti Bio Vollmilch and Oekovital Bio Frutti-Mellows 74
Figure 4.13: Whitman’s Organic Milk Chocolate Eggs 77
Figure 5.14: Percentage of healthy confectionery new product launches, by trend, 2004-2007 86
Figure 5.15: Importance of key features for the success of a new confectionery product over the next three years 87
Figure 5.16: Choclatique’s Boutique Box of Assorted Chocolates, Wrigley’s Orbit sugar-free gum and Welch’s Fruit ‘n Yogurt Snacks 90
Figure 5.17: Tearrow Natural Tea Flavor Sugarless Gum, Choconella Passionate Organic Dark Chocolates, Premier Nutrition S-o-leil Organic Raw Food Bar and Bissinger’s Naturals Gummy Pandas 93
Figure 5.18: Sports and energy new product launches 97
Figure 5.19: New Tree chocolate, Ruth’s MacaPower Bars and Wellness Gummibonbons 99
Figure 5.20: Kanebo Cue Coenzyme Q10 Tablet, Amoriss and Hello Beauty Oligo Collagen
Marshmallows 104
Figure 5.21: XyliDent Pro Reducol Purukumi and Kracie Otoko Kaoru 106
Figure 5.22: Dove Vitalize Dark Chocolate, Vere Chocolate and Heart Chocolate Candy Bar with CM-X 108
Figure 5.23: Salba Life Krispy Rice Bars 109
Figure 5.24: Glico PosCA 110
Figure 5.25: Weight management new product launches 113
Figure 5.26: Estroven Sugar Free Calci-Fresh Calcium Gum 114
Figure 5.27: Nutpatch Hazelnut Nougat 116
List of Tables
Table 2.1: Value of the confectionery markets, Europe and US, ($m), 2006-2011 23
Table 2.2: Value of confectionery market by category, Europe and the US, ($m), 2006-2011 25
Table 2.3: Value of healthy-indulgent (HI) food consumption occasions, Europe and US, ($bn), 2006-2011 26
Table 2.4: Diet confectionery, Europe and US, ($m), 2001-2011 27
Table 2.5: Functional confectionery, Europe and US, ($m), 2001-2011 30
Table 2.6: Sports and energy bars, Europe and US, ($m), 2001-2011 32
Table 3.7: Drivers behind the purchase of a healthy versus a traditional confectionery product 43
Table 3.8: Prevalence of obesity in the six major markets by age (000s), 2005 45
Table 3.9: Prevalence of overweight in the six major markets by age (000s), 2005 46
Table 3.10: Prevalence of cardiovascular disease in seven major markets, 2005 46
Table 4.11: Top 20 product tags on healthy confectionery launches, 2005-2007 73
Table 4.12: Top 20 flavors in healthy confectionery launches, 2005-2007 78
Table 4.13: Top 20 flavors in overall confectionery launches, 2005-2007 79