Table of Contents
Introduction
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- Consumer research
- Abbreviations
Executive Summary
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- Busy lifestyles and growing health awareness drive much current NPD
- Changes to eating habits and meal occasions
- Britons look for convenience…
- …and are receptive to NPD
- Prepared meals and chocolate confectionery top the list for new product introductions
- Top suppliers for new product introductions invest in ‘healthier’ lines
- Convenience, health and function to remain key selling points
- Comparative winners and losers
Market Drivers
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- Spread of microwave oven ownership gives a boost to NPD
- Health and fear of sickness; attention focuses on children's diets
- The influence of TV and celebrity chefs
- Reduced salt receiving special attention
- Additives also under scrutiny
- New EU regulations and scientific developments to shape NPD and product claims
- Five-a-day campaign provides new selling point
- Functional trend may switch to drinks
- Category management can support NPD
- Rising PDI and premiumisation
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- Figure 1: UK PDI and consumer expenditure, at current and constant prices, 2000-10
- Figure 2: Agreement with lifestyle statements on premiumisation, 1999-2004
- More young adults and elderly consumers with different requirements
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- Figure 3: Trends in UK population, by age group, 2000-05
- One-person households show strongest increase
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- Figure 4: Trends in UK household size, by number of persons, 1998-2007
- Female workforce grows fast
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- Figure 5: Workforce in employment in the UK, by gender, 1998-2007
The Consumer – Changing Eating Patterns
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- Modern lifestyles have led to fragmented meal occasions
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- Figure 6: Eating patterns, by country, 2005
- Backlash against the snacking culture?
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- Figure 7: Trends in eating patterns in GB, 2001-05
- Ethnic and convenience are key trends
The Consumer – Attitudes Towards New Products
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- Openness towards new products, especially convenience lines
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- Figure 8: Attitudes towards new products, by country, 2005
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- Figure 9: Trends in attitudes towards new products in GB, 2001-05
- Women are keener than men to try new products
- Younger consumers also more experimental
- In GB, more affluent consumers are more willing to try new products
- Londoners have least brand loyalty
- Smaller households less receptive to NPD
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- Figure 10: Attitudes towards new products in GB, by demographic sub-group, 2005
The Consumer – Target Groups
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- New Product Enthusiasts – Product Managers’ Dreams (32% of GB adults)
- Marketing implications
- Tried & Trusteds (20% of GB adults)
- Marketing implications
- Promiscuous Product Lovers (32% of GB adults)
- Marketing implications
- Innovation Immune (16% of GB adults)
- Marketing implications
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- Figure 11: GB adult population by NPD target groups, 2005
- British receptive to NPD
- Largest proportion of GB adults is interested in new products, but has little brand loyalty
- Enthusiasts form the second-largest group of consumers
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- Figure 12: GB population within the European context, 2005
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- Figure 13: Profile of Mintel’s Target Groups, GB 2005
New Product Activity
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- Leading categories for NPD
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- Figure 14: Top 30 product sectors for new product introductions in UK, 2003-05
- Ready meals are by far the leading category for NPD
- Sauces also offer a convenient and quick meal solution
- Snacks and confectionery – healthy and indulgent
- Juices – no added sugar
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- Figure 15: Leading categories for NPD compared to consumer penetration levels, 2005
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- Figure 16: Further product sectors for new product introductions in UK, 2003-05
- Water receiving new flavours and gaining consumers
- Leading positioning claims
- ‘Vegetarian’ products aimed not just at vegetarians
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- Figure 17: Leading positioning claims for new product introductions in the UK, 2003-05
- Other leading positioning claims are all ‘healthy’ options
- Convenience is catered for by microwaveable options
- Packaging
- Other
The Suppliers
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- Own-label leads for new product introductions
- Tesco
- Sainsbury’s
- Marks & Spencer
- Asda
- Waitrose
- Somerfield
Trends in Food Expenditure and Product Penetration
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- Food and drink expenditure trends
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- Figure 18: UK household expenditure on food and non-alcoholic drink, at current and constant prices, 1999-2004
- Intense competition in food retailing holds prices down
- Food expenditure by sector
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- Figure 19: Detailed average household expenditure on food, per person per week, 1975-2003
- Consumption trends
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- Figure 20: Penetration of foods and beverages, by main shoppers, 2002-05
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- Figure 21: Penetration of selected foods, by all adults, 2002-05
- Figure 22: Penetration of non-alcoholic beverages, confectionery and snacks, by all adults, 2002-05
Prospects
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- Boom may be over
- Social pressures will persist so convenience foods will remain important
- Chilled foods NPD may be strangled by low margins
- Functional foods: stage is set for an increase in popularity
- Products perceived as ‘healthier’ and with a positive image to do best…
- …as long as there is clearer labelling too
- Health and drinks
- Allergy sufferers will be addressed more frequently
- Meals for singles
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- Figure 23: Forecast UK population, by age group, 2005-09
- Emergence of the ‘super consumer’, keen on new functional foods
Forecast
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- Brand land
- Youthful exuberance
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- Figure 24: Impact of future demographics on typologies, 2005-10
- Dampening of new product fervour
- Brand loyalty will grow at expense of NPD
- Despite this, the British will remain the most NPD friendly
- New product acceptance scoring
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- Figure 25: Consumption scores by new product typologies 2005
- Higher consumption among those most favourable to NPD
- Relatively new product areas favoured by NPEs
- Promiscuous Product Lovers’ choices reflect youthful make up
- NPD avoiders
- Brand lovers
- Creating an NPD propensity score
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- Figure 26: Receptiveness to NPD scores, by product, 2005
- The top scorers
- The lower scores
- Applying future typology trends to product areas
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- Figure 27: Impact of future NPD typologies on Receptiveness to NPD scores, by product, 2005-10
- More negative scores
- Comparative winners and losers
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