Vitamins and Supplements - UK - September 2014

INTRODUCTION
Definition
Methodology
Consumer research
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Best- and worst-case forecast for retail value sales of vitamins and supplements, 2009-19
Market factors
Companies, brands and innovation
Figure 2: New product launches in vitamins and supplements, % by top claims, 2013 and 2014
Figure 3: New product launches in vitamins and supplements, % branded vs. own-label, 2010-14
The consumer
Figure 4: Vitamins and supplements taken daily or occasionally in the last 12 months, June 2014
Figure 5: Interest in appearance benefits, June 2014
What we think
ISSUES & INSIGHTS
Consumers want personalisation
The facts
The implications
The ASA is clamping down on advertising
The facts
The implications
High interest in appearance benefits
The facts
The implications
TREND APPLICATION
Trend: The Big Issue
Trend: Influentials
Futures: Generation Next
MARKET DRIVERS
Key points
The youngest and eldest demographics offer opportunities
Figure 6: Trends in the age structure of the UK population, by gender, 2009-19
Cost-conscious shoppers could turn to own-label more
Figure 7: Barriers to being healthy, April 2014
Vitamin usage shows rise
Figure 8: Changes in healthy and unhealthy habits – difference between people doing more and less for each habit, April 2014
Competition from other categories
WHO’S INNOVATING?
Key points
New launches – branded vs own-label
Figure 9: New product launches in vitamins and supplements, % branded vs. own-label, 2010-14
Figure 10: Examples of own-label launches in 2013
Innovations by manufacturer
Figure 11: New product activity in vitamins and supplements, % share by top manufacturers, 2010-13
Figure 12: Examples of launches by Natures Aid, 2013
Top product claims
Figure 13: New product launches in vitamins and supplements, % by top claims, 2013 and 2014
Figure 14: Examples of antioxidant and skin/nail/hair products launched in 2014
MARKET SIZE AND FORECAST
Key points
Decline in value in 2014
Figure 15: Value sales of vitamins and supplements, 2009-19
Steady growth to 2019
Figure 16: Best- and worst-case forecast for retail value sales of vitamins and supplements, 2009-19
Forecast methodology
SEGMENT PERFORMANCE
Key points
Joint care and immune support losses
Figure 17: Retail value sales of vitamins and supplements, by segment, 2012/13 and 2013/14
Demographic-specific vitamins
MARKET SHARE
Key points
Wellwoman and Wellman rise in value sales
Figure 18: Brand shares of value sales in vitamins and supplements, 2012/13 and 2013/14
COMPANIES AND PRODUCTS
Merck (Seven Seas)
Background and structure
Strategy and financial performance
Figure 19: Seven Seas Limited financial performance, 2011 and 2012
Product range and innovation
Figure 20: Examples of new product launches by Merck in the vitamins and supplements market, July Q3 2013-Q1 2014
Marketing and advertising
Bayer
Background and structure
Strategy and financial performance
Figure 21: Bayer Group (global) financial performance, 2012 and 2013
Product range and innovation
Figure 22: Examples of new product launches by Bayer in the vitamins and supplements market, July Q4 2013-Q2 2014
Marketing and advertising
Alliance Boots
Background and structure
Strategy and financial performance
Figure 23: Alliance Boots financial performance, 2013 and 2014
Product range and innovation
Figure 24: Examples of new product launches by Boots in the UK vitamins and supplements market, July Q3 2013-Q1 2014
Marketing and advertising
Holland & Barrett
Background and structure
Strategy and financial performance
Figure 25: Holland & Barrett Retail Limited financial performance, 2012 and 2013
Product range and innovation
Marketing and advertising
Vitabiotics
Background and structure
Strategy and financial performance
Figure 26: Vitabiotics Limited financial performance, 2011 and 2012
Product range and innovation
Figure 27: Examples of new product launches by Vitabiotics in the vitamins and supplements market, July Q3 2013
Marketing and advertising
BRAND RESEARCH
Brand map
Figure 28: Attitudes towards and usage of brands in the vitamins and supplements sector, May 2014
Correspondence analysis
Brand attitudes
Figure 29: Attitudes, by vitamins and supplements brand, May 2014
Brand personality
Figure 30: Vitamins and supplements brand personality – macro image, May 2014
Figure 31: Vitamins and supplements brand personality – micro image, May 2014
Brand experience
Figure 32: Vitamins and supplements brand usage, May 2014
Figure 33: Satisfaction with various vitamins and supplements brands, May 2014
Figure 34: Consideration of vitamins and supplements brands, May 2014
Figure 35: Consumer perceptions of current vitamins and supplements brand performance, May 2014
Brand recommendation
Figure 36: Recommendation of selected vitamins and supplements brands, May 2014
BRAND COMMUNICATION AND PROMOTION
Key points
TV advertising drives sales
Figure 37: Main monitored media advertising spend on vitamins and supplements, by media type, 2010-14
Vitabiotics and Bayer dominate advertising
Figure 38: Main monitored media advertising spend on vitamins and supplements, % share by advertiser, January-July 2014
ASA clamping down in 2014
CHANNELS TO MARKET
Key points
Discount stores see strong growth
Figure 39: UK retail value sales of vitamins and supplements, by outlet type, 2012 and 2013
THE CONSUMER – USAGE AND FREQUENCY OF VITAMINS/SUPPLEMENTS
Key points
Majority of people have taken vitamins/supplements in the past 12 months
Figure 40: Vitamins and supplements taken daily or occasionally in the last 12 months, June 2014
Usage is driven by health concerns
Figure 41: Vitamins and supplements taken daily or occasionally in the last 12 months, June 2014
THE CONSUMER – GENERAL HEALTH CONCERNS
Key points
Women have greater health concerns
Figure 42: Concerns relating to general health, June 2014
Middle ages affected by health concerns
Weight gain and fatigue are top two concerns
Stress and depression are affecting the unemployed
THE CONSUMER – REASONS FOR TAKING VITAMINS/SUPPLEMENTS
Key points
Vitamins/supplements taken for generic reasons
Figure 43: Reasons for taking vitamins/supplements, June 2014
Mothers may be taking immune-boosting vitamins/supplements
Heart health is more important to men whereas bone health is more important to women
Energy and appearance are important to young people
THE CONSUMER – INTEREST IN APPEARANCE BENEFITS
Key points
Women show higher interest in appearance benefits
Figure 44: Interest in appearance benefits, June 2014
Young people show higher interest in appearance benefits
THE CONSUMER – FACTORS TO ENCOURAGE PURCHASE OF VITAMINS/SUPPLEMENTS
Key points
Consumers want to see results
Figure 45: Interest in appearance benefits, June 2014
Special offers are important to users
APPENDIX – BRAND RESEARCH
Figure 46: Brand usage, May 2014
Figure 47: Brand commitment, May 2014
Figure 48: Brand momentum, May 2014
Figure 49: Brand diversity, May 2014
Figure 50: Brand satisfaction, May 2014
Figure 51: Brand recommendation, May 2014
Figure 52: Brand attitude, May 2014
Figure 53: Brand image – macro image, May 2014
Figure 54: Brand image – micro image, May 2014
APPENDIX – THE CONSUMER – USAGE AND FREQUENCY OF VITAMINS/SUPPLEMENTS
Figure 55: Usage of vitamins and supplements, June 2014
Figure 56: Usage of selected vitamins and supplements – Users, by demographics, June 2014
Figure 57: Usage of vitamins and supplements – Any vitamin/supplement, by demographics, June 2014
Figure 58: Usage of vitamins and supplements – Multivitamins, by demographics, June 2014
Figure 59: Usage of vitamins and supplements, by most popular reasons for taking vitamins/supplements, June 2014
APPENDIX – THE CONSUMER – GENERAL HEALTH CONCERNS
Figure 60: Concerns relating to general health, June 2014
Figure 61: Selected concerns relating to general health, by demographics, June 2014
Figure 62: Selected concerns relating to general health, by demographics, June 2014 (continued)
APPENDIX – THE CONSUMER – REASONS FOR TAKING VITAMINS/SUPPLEMENTS
Figure 63: Reasons for taking vitamins/supplements, June 2014
Figure 64: Selected reasons for taking vitamins/supplements, by demographics, June 2014
Figure 65: Selected reasons for taking vitamins/supplements, by demographics, June 2014 (continued)
Figure 66: Usage of Vitamin D, by reason for taking vitamins/supplements, June 2014
APPENDIX – THE CONSUMER – INTEREST IN APPEARANCE BENEFITS
Figure 67: Interest in appearance benefits, June 2014
Figure 68: Interest in appearance benefits – Protect skin from sun damage, by demographics, June 2014
Figure 69: Interest in appearance benefits – Whiten teeth, by demographics, June 2014
Figure 70: Interest in appearance benefits – Promote shinier, smoother hair, by demographics, June 2014
Figure 71: Interest in appearance benefits – Help nails to grow stronger, by demographics, June 2014
Figure 72: Interest in appearance benefits – Moisturise the skin from within, by demographics, June 2014
Figure 73: Interest in appearance benefits – Reduce the appearance of wrinkles, by demographics, June 2014
Figure 74: Interest in appearance benefits – Help prevent age spots and discolouration, by demographics, June 2014
APPENDIX – THE CONSUMER – FACTORS TO ENCOURAGE PURCHASE OF VITAMINS/SUPPLEMENTS
Figure 75: Reasons to encourage current users to take vitamins/supplements more often, June 2014
Figure 76: Reasons to encourage lapsed/non-users to take vitamins/supplements, June 2014
APPENDIX – DEMOGRAPHIC TABLE
Figure 77: Demographic table