Mintel last examined the retailing of health foods in March 2004, since when there have been some significant changes in the sector. The sector has been disrupted by the impending introduction of new regulations by the EU. The Directives on Food Supplements and Traditional Herbal Medicines seek to harmonise the supply of vitamin and mineral supplements and herbal medicines across Europe, in terms of allowed ingredients and dosages. There was much resistance to the legislation within the industry, but both were eventually implemented – with provisos – in late 2005. The impact of these new regulations is discussed from the point of view of both independent and multiple retailers.

The growing involvement of non-specialist multiples, particularly supermarkets, in the health foods sector is having both positive and negative effects. The fact that they have massive buying power, bigger footfall and the ability to develop own-label ranges is a potential threat to independent specialists; on the other hand, their activities in health foods may be broadening the customer base for the products and raising awareness of the issues. This will be the main theme of the report: to question whether, with the backing of grocery multiples, health foods are destined to become mainstream products; and if so, what future is there for specialist shops?

Investigation of this theme will include discussion of the public health issues that are leading to government pressure for the production of healthier food products, such as rising obesity, heart disease and diabetes. It will also include examination of consumer reactions to healthy eating campaigns and media coverage of the issues. The report will also examine the way in which different supermarkets are developing health food ranges, and the manner in which specialist shops are differentiating themselves, including suggested options for their future development.