Table of Contents
Introduction and Abbreviations
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- Definitions
- Research methodology
- Consumer research
- ACORN
- Other research
- Abbreviations
Executive Summary
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- Health food shop sales show robust growth
- Specialists sector dominated by one company
- Organic products exceed £1 billion sales
- Chemists seeking to expand revenue sources
- Supermarkets embrace all health foods
- Websites abound
- Specialist wholesalers serve the retail trade
- Consumer expenditure boom
- Demand for convenience dominates the food market
- Consumers aware of alternative medicines
- Growth fuelled by strong economy and rise in consumer expenditure
- Caring for babies and young children
- Ageing population also positive news for health specialists
- Growing number of ABs will favour growth in health food markets
- Vegetarians on the rise
- More consumers are buying into health
- Age segmentation is evident
- Major chains dominant
- Consumers shop around
- Diversity among consumers
- Importance of displays and point of sale
- One in five think it is worth making a special trip to the health food shop
- Price resistance evident in organic or health foods
- Supermarkets rank highly as a source of food for special dietary needs
- Health food specialists perceived strong in VMS
- Specialists thought better for advice
- Some that like supermarket ranges, still think it is worth going to a specialist health shop
- Health food shops missing out on families with children and the less affluent
- Health food shops attract a mature audience
- Special offers are a powerful marketing tool
- Four main consumer types
- Core customers for health shops
- The floating shoppers
- Chemists dominate non-food area of health retailing
- Two chains dominate the health foods sector
- Herbal specialists grow
- Organic supermarkets a rare breed
- Organic box schemes attracting larger players
- Diet foods likely to provide a boost in 2004
- Choice and advice the strengths of health food specialists
- European directives
- Future prospects
Premier Insight
Retail Sales
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- All retail sales
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- Figure 1: All retail sales, at current and constant 2000 prices, 1998-2003
- Sales through non-specialised food retailers
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- Figure 2: retail sales through non-specialised food retailers, at current and constant 2000 prices, 1998-2003
- Sales through health food shops
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- Figure 3: Estimated retail sales through health food shops, at current and constant 1998 prices, 1998-2003
- Figure 4: Trends in retail sales through health food shops, at current and constant 1998 prices, 1998-2003
Sector Structure
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- Number of health food stores
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- Figure 5: Estimated number of specialist health food shops, 1998-2003
- Organic supermarkets
- Chemists
- Supermarkets
- Mail order/Internet
- Industry representation
- Wholesalers and co-operatives
Consumer Expenditure
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- Key sectors of the health food and related products market
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- Figure 6: Trends in spending on key health food and related products sectors, 1998-2003
- High growth in demand for organic foods
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- Figure 7: UK retail sales of organic food and non-alcoholic drink, by type, at current prices, 1998-2003
- Increased spending on meat-free foods
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- Figure 8: Consumer expenditure on vegetarian food products, by category, at current prices, 1998-2003
- Non-foods in the health market
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- Figure 9: Sales of non-food health products, by product type, at current prices, 1998-2003
- Natural foods and other ‘healthy’ foods
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- Figure 10: Consumer expenditure on natural foods and other ‘healthy’ products, by category, at current prices, 1998-2003
Market Factors
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- PDI and consumer expenditure
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- Figure 11: PDI and consumer expenditure, at current and constant 1998 prices, 1998-2007
- Age of population
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- Figure 12: Trends in the UK population, by gender and age, 1998-2007
- Unemployment levels
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- Figure 13: Unemployment levels in the UK, 1998-2007
- Women in employment
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- Figure 14: Women in employment in the UK, 1998-2007
- Socio-economic groupings
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- Figure 15: Trends in socio-economic groupings, adults in the UK, 1998-2007
- Trends in number of vegetarians
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- Figure 16: Number of vegetarians in the UK, 1990 and 1998-2003
- Food related issues
The Consumer
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- Critical consumer findings
- Products
- Retailers
- Frequency of VMS usage
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- Figure 17: Vitamins and other supplements, use and frequency of use, 2000, 2002 and 2003
- Health food and related products purchased
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- Figure 18: Most popular purchases of health food and related products at any outlet, 1998 and 2001
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- Figure 19: Health foods and food supplements bought in the last 12 months, December 2003
- Characteristics of purchasers of health foods and food supplements
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- Figure 20: Health foods and food supplements bought in the last 12 months, natural foods and other foods, by gender, age and socio-economic group, December 2003
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- Figure 21: Health foods and food supplements bought in the last 12 months, wholemeal/speciality bread, vegetarian foods and organic foods, by gender, age and socio-economic group, December 2003
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- Figure 22: Health foods and food supplements bought in the last 12 months, VMS, herbal and homeopathic remedies, special dietary foods, sport and fitness products and slimming products, by gender, age and socio-economic group, December 2003
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- Figure 23: Health foods and food supplements bought in the last 12 months, natural foods and other foods, by lifestage, presence of children and Mintel’s Special Groups, December 2003
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- Figure 24: Health foods and food supplements bought in the last 12 months, wholemeal/speciality bread, vegetarian foods and organic foods, by lifestage, presence of children and Mintel’s Special Groups, December 2003
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- Figure 25: Health foods and food supplements bought in the last 12 months, VMS, herbal and homeopathic remedies, special dietary foods, sport and fitness products and slimming products, by lifestage, presence of children and Mintel’s Special Groups, December 2003
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- Figure 26: Health foods and food supplements bought in the last 12 months, natural foods and other foods, by region and ACORN category, December 2003
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- Figure 27: Health foods and food supplements bought in the last 12 months, wholemeal/speciality bread, vegetarian foods and organic foods, by region and ACORN category, december 2003
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- Figure 28: Health foods and food supplements bought in the last 12 months, VMS, herbal and homeopathic remedies, special dietary foods, sport and fitness products and slimming products, by region and ACORN category, December 2003
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- Figure 29: Health foods and food supplements bought in the last 12 months, natural foods and other foods, by media use, commercial TV viewing and store used for regular grocery shopping, december 2003
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- Figure 30: Health foods and food supplements bought in the last 12 months, wholemeal/speciality bread, vegetarian foods and organic foods, by media use, commercial TV viewing and store used for regular grocery shopping, December 2003
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- Figure 31: Health foods and food supplements bought in the last 12 months, VMS, herbal and homeopathic remedies, special dietary foods, sport and fitness products and slimming products, by media use, commercial TV viewing and store used for regular grocery shopping, December 2003
- Shops or outlets used to buy health foods and food supplements
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- Figure 32: Shops or outlets used to buy health foods and food supplements in the last 12 months, December 2003
- Characteristics of those visiting leading stores
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- Figure 33: Shops or outlets used to buy health foods and food supplements in the last 12 months, health food shops, other specialist outlets (farmer’s markets, organic specialists, farm shops), mail order/direct, by gender, age and socio-economic group, December 2003
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- Figure 34: Shops or outlets used to buy health foods and food supplements in the last 12 months, supermarkets and specialist food retailers, by gender, age and socio-economic group, December 2003
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- Figure 35: Shops or outlets used to buy health foods and food supplements in the last 12 months, chemists, by gender, age and socio-economic group, December 2003
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- Figure 36: Shops or outlets used to buy health foods and food supplements in the last 12 months, health food shops, other specialist outlets (farmer’s markets, organic specialists, farm shops), mail order/direct, by lifestage, presence of children and Mintel’s Special Groups, December 2003
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- Figure 37: Shops or outlets used to buy health foods and food supplements in the last 12 months, supermarkets and specialist food retailers, by lifestage, presence of children and Mintel’s Special Groups, December 2003
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- Figure 38: Shops or outlets used to buy health foods and food supplements in the last 12 months, chemists, by lifestage, presence of children and Mintel’s Special Groups, December 2003
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- Figure 39: Shops or outlets used to buy health foods and food supplements in the last 12 months, health food shops, other specialist outlets (farmer’s markets, organic specialists, farm shops), mail order/direct, by region and ACORN category, December 2003
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- Figure 40: Shops or outlets used to buy health foods and food supplements in the last 12 months, supermarkets and specialist food retailers, by region and ACORN category, December 2003
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- Figure 41: Shops or outlets used to buy health foods and food supplements in the last 12 months, chemists, by region and ACORN category, December 2003
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- Figure 42: Shops or outlets used to buy health foods and food supplements in the last 12 months, health food shops, other specialist outlets (farmer’s markets, organic specialists, farm shops), mail order/direct, by media use, commercial TV viewing and store used for regular grocery shopping, December 2003
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- Figure 43: Shops or outlets used to buy health foods and food supplements in the last 12 months, supermarkets and specialist food retailers, by media use, commercial TV viewing and store used for regular grocery shopping, December 2003
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- Figure 44: Shops or outlets used to buy health foods and food supplements in the last 12 months, chemists, by media use, commercial TV viewing and store used for regular grocery shopping, December 2003
- Conclusions and implications
Consumer Attitudes and Typology Groups
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- How successfully do the main stores attract their target market?
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- Figure 45: CHAID analysis of key health food and related products purchasing outlets, November 2003
- Number of retailers used for health food and related products
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- Figure 46: Number of different products purchased, by stores used, November 2003
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- Figure 47: Stores used by number of different products purchased, November 2003
- Attitudes towards food, diet and health
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- Figure 48: Consumer attitudes towards health and diet, 2000, 2002 and 2003
- Attitudes towards health food retailing
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- Figure 49: Attitudes towards health foods and food supplements, December 2003
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- Figure 50: Attitudes towards shopping for health foods at supermarkets, by gender, age and socio-economic group, December 2003
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- Figure 51: Attitudes towards health food shops comparing health food shops to supermarkets, by gender, age and socio-economic group, December 2003
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- Figure 52: Attitudes towards health food shops, price/reading about health products/tempted by special offers, by gender, age and socio-economic group, December 2003
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- Figure 53: Attitudes towards shopping for health foods at supermarkets, by lifestage, presence of children and Mintel’s Special Groups, December 2003
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- Figure 54: Attitudes towards health food shops comparing health food shops to supermarkets, by lifestage, presence of children and Mintel’s Special Groups, December 2003
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- Figure 55: Attitudes towards health food shops, price/reading about health products/tempted by special offers, by lifestage, presence of children and Mintel’s Special Groups, December 2003
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- Figure 56: Attitudes towards shopping for health foods at supermarkets, by region and ACORN category, December 2003
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- Figure 57: Attitudes towards health food shops comparing health food shops to supermarkets, by region and ACORN category, December 2003
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- Figure 58: Attitudes towards health food shops, price/reading about health products/tempted by special offers, by region and ACORN category, December 2003
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- Figure 59: Attitudes towards shopping for health foods at supermarkets, by media use, commercial TV viewing and store used for regular grocery shopping, December 2003
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- Figure 60: Attitudes towards health food shops comparing health food shops to supermarkets, by media use, commercial TV viewing and store used for regular grocery shopping, December 2003
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- Figure 61: Attitudes towards health food shops, price/reading about health products/tempted by special offers, by media use, commercial tv viewing and store used for regular grocery shopping, December 2003
- Identifying targets
- Characteristics of customer typology groups
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- Figure 62: Health food customer types, by gender, age and socio-economic group, December 2003
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- Figure 63: Health food customer types, by lifestage, presence of children and Mintel’s Special Groups, December 2003
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- Figure 64: Health food customer types, by region and ACORN category, December 2003
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- Figure 65: Health food customer types, by media use and commercial TV viewing, December 2003
- Customer types of those purchasing health foods and related products
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- Figure 66: Health food customer types, by items purchased in the last 12 months, December 2003
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- Figure 67: Health food customer types, by shop used for health foods/VMS, December 2003
- Conclusions and implications
Retail Market Shares
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- VMS, complementary medicines and slimming products
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- Figure 68: UK retail shares of VMS, herbal and homeopathic, aromatherapy and slimming products, by outlet type, 2001 and 2003
- Vitamins and dietary supplements
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- Figure 69: UK retail sales of vitamins and dietary supplements, by outlet type, 2001 and 2003
- Herbal and homeopathic remedies
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- Figure 70: UK retail sales of herbal and homeopathic remedies, by outlet type, 2001 and 2003
- Slimming products
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- Figure 71: UK retail sales of slimming products, by outlet type, 2001 and 2003
- Organic food
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- Figure 72: Distribution of organic food, 2001 and 2003
Retailer Profiles
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- Health food specialists
- Holland & Barrett
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- Figure 73: Holland & Barrett, outlet data, 1998-2003
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- Figure 74: Holland & Barrett, financial performance, 1997-2002
- GNC (now owned by NBTY Holland & Barrett)
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- Figure 75: GNC, outlet data, 1998-2003
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- Figure 76: GNC Ltd, financial performance, 1998-2002
- Health food independents
- Other specialist retailers
- Fresh & Wild
- As Nature Intended
- Planet Organic
- Julian Graves
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- Figure 77: Julian Graves, financial performance, 1998-2002
- Herbal specialists
- Neal’s Yard Remedies
- Napiers
- Chemists
- Boots the Chemist
- Superdrug
- Lloydspharmacy
- Moss Pharmacy
- Internet/mail order suppliers
- ThinkNatural.com
- Positivehealth
- Pharmacy2U
- Healthspan
- Goodness Direct
- Magazines
- Supermarkets
- Tesco
- Sainsbury's
- Asda
- Safeway/Morrisons
- Marks & Spencer
- Waitrose
- Other supermarkets
Retail Practices and Operational Issues
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- Definition of ranges is evolving
- Obesity is hitting headlines, and diets are big business
- Consumers prepared to spend heavily on themselves
- Evolution of organic retailing
- New niche opportunities for retailers
- Why consumers opt to shop at health food/products specialists
- Health scares drive demand in healthier eating
- More need for special diets
- Animal welfare of concern to consumers
- Consumers taking responsibility for health issues
- How health food/products retailers can compete
- Choice of products
- Product mix of health food shops
- Customer service
- Retail ambience
- Price and competition
- Convenience and store location
- Home delivery
- The advantages of a box delivery scheme
- Expertise
- Supplier relationships
- Trade associations
- Staff costs and recruitment
- Staff development and training
- Industry training initiatives
- Investment in stock
- European Directives
- Other regulations
- The supermarkets in health foods
- The future for health food retailers
- Competition in the box delivery area of organic retailing
- Biodynamic farming
- Future for chemists
- Future for supermarkets
The Future
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- Underlying market growth
- Trends in key product areas
- Conventional wholefoods
- Organic produce
- Vitamins and supplements
- Alternative remedies
- Special diets
- Fat friends
- Main developments for health food chains
- Just how much can the organic supermarkets grow?
- Improving shares through major grocery chains
- Chemists fighting back
- Changes in legislation
- Summary
Forecast
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- Sales through health food shops
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- Figure 78: Forecast of sales through health food shops, at current and constant 2003 prices, 2003-07
- Figure 79: Forecast of sales through health food shops, 2003-07
- Spending on key health food and related products sectors
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- Figure 80: Forecast of spending on key health food and related products sectors, 2003-07
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- Figure 81: Forecast of total spending on key health food and related products sectors, 2003-07
- Factors used in the forecast
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