Table of Contents
Introduction and Abbreviations
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- Introduction
- Hypothesis/story
- - Dieting – UK, Market Intelligence, February 2004
- - Coffee – UK Market Intelligence, January 2004
- Definition
- Consumer research
- Abbreviations
Premier Insight
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- Emerging health/eating trends need to be addressed
- Trading up in the sugar market opening up opportunities
- Premium artificial sweeteners
- Repertoire purchasing needs to be encouraged
- More sugar flavours need to be explored
Executive Summary
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- Value growth amid volume decline
- One lump or two?
- Opportunity for sweeteners
- Hey Big Splenda!
- Organic slowdown
- Acquisitions and NPD
Market Drivers
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- Levels of being overweight and obese
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- Figure 1: Incidence of being overweight or obese among men and women, by age group, 1997 and 2001
- Figure 2: Obesity among adults, by gender and occupation, 2001
- Insulin and diabetes
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- Figure 3: Prevalence of diagnosed diabetes in the UK, 2004
- Atkins, low-carb, diabetes and the glycaemic index
- GI Diet – the diet for 2005
- The slimming issue
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- Figure 4: Adults who are trying to slim, 1980-2003
- Methods used to lose weight
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- Figure 5: Ways in which consumers would try to lose weight, 2000-04
- Cutting down on sugar is the third most popular way of losing weight
- Dental hygiene
- Low-carb diets are growing in popularity
- From the spoon vs hidden sugar consumption
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- Figure 6: Weekly expenditure on sugar and sugar products, 2001/02 and 2002/03
- Sweet spreads and confectionery
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- Figure 7: Weekly expenditure on ready-prepared foods containing sugar, 2001/02 and 2002/03
- Hot drinks
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- Figure 8: Weekly expenditure on non-alcoholic drinks, 2001/02 and 2002/03
- Demographic shifts
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- Figure 9: Trends and projections in total UK population, by age group, 1999-2009
- PDI and consumer expenditure
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- Figure 10: PDI and consumer expenditure, at current and constant 1999 prices, 1999-2008
- Demographics favour artificial sweeteners
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- Figure 11: Breakdown of the UK population, by socio-economic group, 1999 and 2004
- Regulatory issues
Market Size and Trends
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- Volume and value sales heading in opposite directions
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- Figure 12: UK retail volume and value sales of sugar and artificial sweeteners, 1999-2004
- Figure 13: Index of volume and value sales for sugar and artifical sweeteners, 1999-2004
- Value sales are rising
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- Figure 14: UK retail value sales of sugar and artificial sweeteners, by sector, 2000-04
- Sugar dominates the market
- Declining sugar volume sales but rising sweetener sales
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- Figure 15: UK retail volume sales of sugar and artificial sweeteners, by sector, 2000-04
- Unit price rising
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- Figure 16: Price per tonne, sugar and artifical sweeteners, 1999-2004
Market Segmentation
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- Sugar
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- Figure 17: UK retail volume and value sales of sugar, 1999-2004
- White granulated dominates
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- Figure 18: UK retail value sales of sugar, by type, 2000-04
- Consumers buying for their needs
- British Sugar withdraws organic sugar beet
- Fairtrade sugar largely retailer-driven
- Artificial sweeteners
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- Figure 19: UK retail sales of artificial sweeteners, 1999-2004
- Artificial sweetening agents
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- Figure 20: Leading sweetener brands, with main sweetening agents, 2004
- New generation sweeteners driving growth
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- Figure 21: UK retail sales of artificial sweeteners, by type, by value, 2000-04
The Supply Structure
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- British Sugar dominates
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- Figure 22: Brand shares in the UK retail sugar market, by value, 2000-04
- Dilemma for sugar manufacturers
- Canderel’s market share slipping in artificial sweeteners
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- Figure 23: Brand shares in the UK retail artificial sweetener market, 2000-04
- Splenda
- British Sugar
- Tate & Lyle
- McNeil Nutritionals
- Splenda brand facing litigation in the US
- Napier Brown Foods
- Billington’s and ABF
- Merisant
- Hermes Sweeteners
- Crookes Healthcare
- Fruisana
- Trade Aid
- Traidcraft PLC
New Product Trends
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- Introduction
- Executive Summary
- Product trends – sugar
- Format
- Commodity or premium?
- Product trends – sweeteners
- Format
- Saccharin vs New Generation
- Convenience
- Hybrid Sugar/sweetener forms
- NPD Forecast/predictions
- New Product Briefs
- December 2004
- Positioning Claims
- November 2004
- October 2004
- August 2004
- July 2004
- June 2004
- April 2004
- March 2004
- February 2004
- January 2004
- November 2004
- November 2003
- October 2003
- July 2003
- June 2003
Advertising and Promotion
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- The odd blip
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- Figure 24: Main monitored media advertising expenditure on sugar and artificial sweeteners, 1999-2003
- The main spenders by brand
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- Figure 25: Main monitored media advertising expenditure on sugar, by leading brands, 2001-03
- Figure 26: Main monitored media advertising expenditure on artificial sweeteners, by leading brands, 2001-03
- Below-the-line promotions
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- Figure 27: Promotions in the sugar and artificial sweetener market, March 2003-August 2004
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- Figure 28: Breakdown of special price store reduction, by brand, March 2003-August 2004
- It is perhaps not surprising to see from the above that it is the major brands that are more likely to be the subject of in-store below-the-line offers. Likewise it is perhaps not altogether surprising to see that Splenda, with such a large advertising support already being directed its way, achieves no better than mid-table mediocrity in the list. Canderel, as the dominant sweetener, attracts much of the attention with competition between Tate & Lyle and British Sugar interestingly listed as second and third. It is worthy of note that these three top products account for 65% of the promotions observed. The other sweeteners appear in the rankings in more or less the same order of their brand share. Own-label, perhaps in an area where distributors have some degree of control over the offers available, claims a greater share of the promotions than the market position would normal allow them to command.
Distribution
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- Grocery multiples dominate sales of sugar
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- Figure 29: UK retail sales of sugar, by outlet type, 2000-04
- Chemists/drugstores are important outlet for artificial sweeteners
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- Figure 30: UK retail sales of artificial sweetener, by outlet type, 2000-04
The Consumer – Consumption
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- Sugar consumption
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- Figure 31: Uses of sugar, 2000-04
- Usage declining
- Drinks
- Drinking – young consumer have the sweetest tooth
- DE consumers sweeten hot drinks with sugar
- Positive influence of children
- Larger household size important
- Detailed demographic breakdown – sugar in drinks
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- Figure 32: Usage of sugar, by gender, age and socio-economic group, October 2004
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- Figure 33: Usage of sugar, by presence of children, lifestage and Mintel’s Special Groups, October 2004
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- Figure 34: Usage of sugar, by household size, October 2004
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- Figure 35: Usage of sugar, by region and ACORN categories, October 2004
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- Figure 36: Usage of sugar, by media usage, commercial TV viewing and supermarket usage, October 2004
- Cooking
- Women major users of sugar for cooking and baking
- Younger consumers add sugar to cereals
- Broad social appeal
- Presence of children is a key discriminator
- Londoners don’t do breakfast
- Detailed demographic breakdown – sugar in cooking
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- Figure 37: Usage of sugar, by gender, age and socio-economic group, October 2004
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- Figure 38: Usage of sugar, by presence of children, lifestage and Mintel’s Special Groups, October 2004
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- Figure 39: Usage of sugar, by household size, October 2004
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- Figure 40: Usage of sugar, by region and ACORN category, October 2004
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- Figure 41: Usage of sugar, by media usage, commercial TV viewing and supermarket usage, October 2004
- Artificial sweeteners – consumption
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- Figure 42: Uses of artificial sweeteners, October 2004
- Almost a quarter of all consumer use artificial sweeteners
- Women more likely to use artificial sweeteners than men
- Mass-market consumers are the most important
- Third age is the most important lifestage
- Scottish consumers eschew sweeteners
- Comfortably Off opt for sweeteners
- Waitrose shoppers eschew artificial sweeteners
- Detailed demographic breakdown – usage of sweeteners
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- Figure 43: Usage of artifical sweeteners, by gender, age and socio-economic group, October 2004
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- Figure 44: Usage of artifical sweeteners, by presence of children, lifestage and Mintel’s Special Groups, October 2004
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- Figure 45: Usage of artifical sweeteners, by household size, October 2004
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- Figure 46: Usage of artifical sweeteners, by region and ACORN categories, October 2004
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- Figure 47: Usage of artifical sweeteners, by media usage, commercial TV viewing and supermarket usage, October 2004
The Consumer – Attitudes and Behaviour
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- Figure 48: Attitudes towards sugar and artificial sweeteners, October 2004
- Awareness of its carb status is low
- Consumers still disappointed with the taste of sweeteners
- Gender breakdown
- ABC1 third age
- Promoting balanced use
- Low-carb, sweeteners and diabetes
- Wealthy Achievers need to be better educated
- Detailed demographic breakdown – attitudinal statements
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- Figure 49: Attitudes towards sugar and artifical sweeteners, by gender, age and socio-economic group, October 2004
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- Figure 50: Attitudes towards sugar and artifical sweeteners, by presence of children, lifestage and Mintel’s Special Groups, October 2004
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- Figure 51: Attitudes towards sugar and artificial sweeteners, by household size, October 2004
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- Figure 52: Attitudes towards sugar and artificial sweeteners, by region and ACORN categories, October 2004
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- Figure 53: Attitudes towards sugar and artificial sweeteners, by media usage, commercial TV viewing and supermarket usage, October 2004
- Assessing key target markets – consumer typologies
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- Figure 54: Consumer typologies, October 2004
- Potential Sweeteners (33% of sample)
- Sugar Loyals (24% of sample)
- The Slimming Down (12% of sample)
- Carb Avoiders (11% of sample)
- Apathetic (21% of sample)
- Detailed Demographics
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- Figure 55: Consumer typologies, by gender, age and socio-economic group, October 2004
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- Figure 56: Consumer typologies, by lifestage, Mintel’s Special Groups and presence of children, October 2004
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- Figure 57: Consumer typologies, by marital status, working status, region and ACORN categories, October 2004
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- Figure 58: Consumer typologies, by media usage, supermarket usage and commercial TV viewing, October 2004
- Assessing enthusiasm
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- Figure 59: Cross-analysis of usage of sugar with consumer typologies, October 2004
- Potential for the Potential Sweeteners
- Sugar Loyals – prime target for premium sugar
- The Slimming Down
- Carb Avoiders
- Apathetic
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- Figure 60: Cross-analysis of artificial sweeteners with consumer typologies, October 2004
- Never say never
- Cluster correlation with retailers
- Typologies and shopper profiles
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- Figure 61: Correlation between retailers and consumer typologies, October 2004
- M&S and Waitrose shopper are Sugar Loyals
- Slimming Down in Asda
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The Future
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- Health demands drive NPD
- Population dynamics to favour artificial sweeteners
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- Figure 62: Population breakdown, by socio-economic group, 2004 and 2009
- Artificial ambitions
- Splenda – how high can it go?
- Organic growth
- Legislative uncertainty
Forecast
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- Growth slows, yet remains strong
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- Figure 63: Forecast of the UK market for sugar and artificial sweeteners, by value, 2004-09
- Decline in sugar volume sales will continue
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- Figure 64: Forecast of the UK market for sugar and artificial sweeteners, by volume, 2004-09
- Premiumisation will drive sugar values
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- Figure 65: Price per tonne, sugar and artificial sweeteners, 2004-09
- Artificial sweeteners will continue to grow
- Factors used in the forecast
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