41 pages, Oct 2015
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Health awareness is having an increasingly important impact on food consumption. This briefing focuses on its various influences, from legislation through to packaging. The first sections examine government intervention and whether this is becoming more or less likely. The second looks at how companies are altering their priorities, moving into new and healthier products.
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Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.
Whilst criticisms of sugar have been prevalent for some time, there is now a concerted effort by governments and international health organisations to curb consumption. Products such as confectionery will be the largest sufferers of any tax on sugar, but a number of other products which are not traditionally associated with high levels of sugar will also perform poorly.
Alarm bells will be ringing for food manufacturers whose products’ ingredients contain high levels of sugar. Already, governments have taken measures to limit consumption. Denmark introduced a short-lived fat tax, whilst Mexico introduced its own punitive sugar tax in 2014. Such taxes have damaged sales.
To overcome such problems, companies are moving into areas of high growth that are less unhealthy alternatives to high sugar products. The “snacking continuum” is now being extended beyond typical high sugar confectionery to a wide range of foods which actually boast health benefits.
Companies can pursue several methods of achieving sales growth with healthier –or less unhealthy –products. One tactic has been to miniaturise indulgence products, such as chocolate bars, which has contributed to value sales increases. However, less cynical healthy product launches will also be welcomed by consumers, and may be more financially rewarding in the long term for manufacturers.
Given the increased focus on health, many new brands are achieving success by placing themselves in opposition to the largest manufacturers. These “clean” brands highlight the decreasing popularity of many large food brands.
Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.