Ingredient Trends - US - December 2003

INTRODUCTION & ABBREVIATIONS
INTRODUCTION
OTHER RELEVANT REPORTS
DEFINITION
ABBREVIATIONS
EXECUTIVE SUMMARY
HEALTH CONCERNS DRIVE INGREDIENT ACTIVITY
INNOVATION IS BLURRING THE LINES BETWEEN HEALTHY AND ‘REGULAR’ FOODS
INNOVATIONS AND REGULATIONS DETERMINE WHICH INGREDIENTS PROSPER
TOTAL FOOD ADDITIVES MARKET RELATIVELY STABLE
ROBUST NEW PRODUCT ACTIVITY IN LOW CALORIE SWEETENERS…
….AND EXPLOSIVE GROWTH IN FORTIFICATION INGREDIENTS
HERBAL INGREDIENTS TAKE A BACK SEAT
GLOBAL COMPETITON HEATS UP
Marketing is Beginning to Target Consumers
CONSUMERS READ AND CARE ABOUT INGREDIENT LABELS
MARKET DRIVERS
HEALTH CONCERNS
Diabetes
Weight management
Figure 1 Prevalence of obesity among adults aged 20 years and over, 1997-2003
Figure 2 Percentage of U.S. overweight children aged 6-19, 1976-2000
Prevention of dental cavities
General health
INGREDIENT BREAKTHROUGHS
High intensity sweeteners
Sweetener blends
Increased bioavailability
Ingredient interactions
CONSUMER CONFUSION OR ACCEPTANCE DEPENDS ON A CONSISTENT MESSAGE
Efficacy
Safety
REGULATION
Regulatory approval
Performance claims and labeling
CONVENIENCE-MINDED CONSUMERS
NICHE MARKETING
OTHER INDUSTRY FACTORS
MARKET SIZE & TRENDS
Figure 3 Total wholesale sales of U.S. food additive market, at current and constant prices, 1999-2003
MARKET SEGMENTATION
Figure 4 Numbers of new products, segmented by type, 2001-03
VITAMINS AND MINERALS
Figure 5 Launches of products fortified with vitamins and minerals, by ingredient type, 2000-03
Figure 6 Launches of products fortified with vitamins and minerals, by usage sector, 2000-03
Launches of each vitamin & mineral
Figure 7 Launches of products fortified with calcium, by usage sector, 2000-03
Figure 8 Launches of products fortified with vitamin C, by usage sector, 2000-03
Figure 9 Launches of products fortified with vitamin A, by usage sector, 2000-03
Figure 10 Launches of products fortified with folic acid, by usage sector, 2000-03
Figure 11 Launches of products fortified with vitamin E, by usage sector, 2000-03
Figure 12 Launches of products fortified with iron, by usage sector, 2000-03
Figure 13 Launches of products fortified with B vitamins, by usage sector, 2000-03
Frequency of vitamin and mineral launches in each sector
Figure 14 Launches of products fortified with vitamins and minerals, in the snack sector, 2000-03
Figure 15 Launches of products fortified with vitamins and minerals, in the beverage sector, 2000-03
LOW CALORIE SWEETENERS
Figure 16 Launches of products with low calorie sweeteners, by sweetener type, 1999-2003
Figure 17 Launches of products with low calorie sweeteners, by usage sector, 1999-2003
Launches of each low calorie sweetener by usage sector
Figure 18 Launches of products containing sucralose, by usage sector, 1999-2003
Figure 19 Launches of products that advertise usage of Splenda, by usage sector, 1999-2003
Figure 20 Launches of products containing sorbitol, by usage sector, 1999-2003
Figure 21 Launches of products containing maltitol, by usage sector, 1999-2003
Figure 22 Launches of products containing acesulfame potassium (ace-k), by usage sector, 1999-2003
Figure 23 Launches of products containing aspartame, by usage sector, 1999-2003
Figure 24 Launches of products containing lactitol, by usage sector, 1999-2003
Figure 25  Launches of products containing isomalt, by usage sector, 1999-2003
Figure 26 Launches of products containing mannitol, by usage sector, 1999-2003
Figure 27 Launches of products containing xylitol, by usage sector, 1999-2003
Figure 28 Launches of products containing erythritol, by usage sector, 1999-2003
Figure 29 Launches of products containing stevia, by usage sector, 1999-2003
Figure 30 Launches of products containing saccharine, by usage sector, 1999-2003
Figure 31 Launches of products containing cyclamate, by usage sector, 1999-2003
Frequency of low calorie sweetener launches in key sectors
Figure 32 Launches of products with low calorie sweeteners in the confectionery sector, 1999-2003
Figure 33 Launches of products with low calorie sweeteners in the snacks sector, 1999-2003
Figure 34 Launches of products with low calorie sweeteners in the beverages sector, 1999-2003
HERBAL INGREDIENTS
Figure 35 Launches of products with herbal ingredients, by herbal type, 1999-2003
Figure 36 Launches of products with herbal ingredients, by usage sector, 1999-2003
Launches of each herbal ingredient by usage sector
Figure 37 Launches of products containing ginseng, by usage sector, 1999-2003
Figure 38 Launches of products containing taurine, by usage sector, 1999-2003
Figure 39 Launches of products containing guarana, by usage sector, 1999-2003
Figure 40 Launches of products containing ginkgo, by usage sector, 1999-2003
SUPPLY STRUCTURE
FOREIGN TRADE
Figure 41 U.S. imports of selected ingredients, 2001-2003
Figure 42 Import origin of selected ingredients in the U.S., 2002
COMPANIES AND BRANDS
Figure 43 Total sales of leading manufacturers active in the ingredients market, 2002
Cargill, Inc.
BASF
Archer Daniels Midland
DSM N.V. (Roche Vitamins and Fine Chemicals)
Merck KGaA
Ajinomoto Co.
Associated British Foods (SPI Polyols)
McNeil Consumer and Specialty Pharmaceuticals (Johnson & Johnson)
Eisai
Danisco A/S
Roquette Freres
NutraSweet Co.
Nutrinova GmbH (Celanese AG)
Indena SPA
ADVERTISING & PROMOTION
INTRODUCTION
COMPANY ACTIVITY
Cargill
Archer Daniels Midland
Ajinomoto
McNeil: Splenda (Sucralose)
Nutrinova GmbH
THE CONSUMER
INTRODUCTION
INFLUENCE OF INGREDIENTS ON BUYING DECISIONS
Figure 44 Label components influencing buying decision, October 2001 and October 2003Base: adults aged 18+; 1,000 in 2003 and 1,010 in 2001
Figure 45 Label components influencing buying decision, by gender, October 2001 and October 2003“I am going to read some items that are printed on nutrition labels. Which of these items, if any, is likely to influence your decision to buy a food or drink product?”Base: adults aged 18+; 1,000 in 2003 and 1,010 in 2001
Figure 46 Label components influencing buying decision, by age, October 2001 and October 2003“I am going to read some items that are printed on nutrition labels. Which of these items, if any, is likely to influence your decision to buy a food or drink product?”Base: adults aged 18+; 1,000 in 2003 and 1,010 in 2001
Figure 47 Label components influencing buying decision, by income, October 2001 and October 2003“I am going to read some items that are printed on nutrition labels. Which of these items, if any, is likely to influence your decision to buy a food or drink product?”Base: adults aged 18+; 1,000 in 2003 and 1,010 in 2001
Figure 48 Label components influencing buying decision, by race/ethnicity, October 2001 and October 2003“I am going to read some items that are printed on nutrition labels. Which of these items, if any, is likely to influence your decision to buy a food or drink product?”Base: adults aged 18+; 1,000 in 2003 and 1,010 in 2001
GENERAL VS. SPECIFIC HEALTH CONCERNS AS MOTIVATOR
Figure 49 Main reason for reading nutrition labels, October 2003Base: 1,000 adults aged 18+
Figure 50 Main reason for reading nutrition labels, by age, October 2003“Which of the following is the main reason that you read nutrition labels?”Base: 1,000 adults aged 18+
Figure 51 Main reason for reading nutrition labels, by income, October 2003“Which of the following is the main reason that you read nutrition labels?”Base: 1,000 adults aged 18+
Figure 52 Main reason for reading nutrition labels, by race/ethnicity, October 2003“Which of the following is the main reason that you read nutrition labels?”Base: 1,000 adults aged 18+
Figure 53 Main reason for reading nutrition label, by label components influencing buying decision, October 2003“If you read food and drink ingredient labels, which of the following, if any, is likely to influence your decision to buy?”Base: 1,000 adults aged 18+
TRENDS IN LOW CALORIE SWEETENER USE
Figure 54 Changes in low calorie sweetener purchase behavior, October 2003Base: 1,000 adults aged 18+
Figure 55 Changes in low calorie sweetener purchase behavior, by age, October 2003“Comparing what you do these days with what you did two years ago, would you say you buy more products with low calorie sweeteners, fewer products with low calorie sweeteners or your behavior has not changed one way or the other?”Base: 1,000 adults aged 18+
Figure 56 Changes in low calorie sweetener purchase behavior, by income, October 2003“Comparing what you do these days with what you did two years ago, would you say you buy more products with low calorie sweeteners, fewer products with low calorie sweeteners or your behavior has not changed one way or the other?”Base: 1,000 adults aged 18+
GENERAL ATTITUDES TOWARDS FUNCTIONAL FOOD AND DRINKS
Figure 57 General attitudes towards functional food and drinks, by gender, August 2003Base: 1,001 adults aged 18+
Figure 58 General attitudes towards functional food and drinks, by age, August 2003“Please tell me whether you agree or disagree with each of the following statements about functional foods or drinks…”Base: 1,001 adults aged 18+
THE INFLUENCE OF HERBS ON BUYING DECISION
Figure 59 Influence of herbal ingredients on purchase behavior, October 2003Base: 1,000 adults aged 18+
Figure 60 Influence of herbal ingredients on purchase behavior, by gender, October 2003“Are you more likely or less likely to buy a product because it contains ginseng, guarana, taurine, or ginkgo biloba?”Base: 1,000 adults aged 18+
Figure 61 Influence of herbal ingredients on purchase behavior, by age, October 2003“Are you more likely or less likely to buy a product because it contains ginseng, guarana, taurine, or ginkgo biloba?”Base: 1,000 adults aged 18+
Figure 62 Influence of herbal ingredients on purchase behavior, by race/ethnicity, October 2003“Are you more likely or less likely to buy a product because it contains ginseng, guarana, taurine, or ginkgo biloba?”Base: 1,000 adults aged 18+
SUMMARY
FUTURE & FORECAST
FUTURE TRENDS
Wellness will continue to define trends
Figure 63 U.S. population projections, by age, 1998-2008
Room for growth abounds
Ingredient breakthroughs continue
Regulation may become stricter and clearer
Health news will shape consumer preferences
MARKET FORECAST
Food additive market to maintain value
Figure 64 Forecast of U.S. food additive market, at current and constant prices, 2003-2008
Forecast Factors
APPENDIX: TRADE ASSOCIATIONS
APPENDIX: NEW PRODUCT BRIEFS
VITAMINS AND MINERALS
Hain-Celestial Group: Healthy Valley Empower, The Most Complete Breakfast Cereal
Bristol Myers-Squibb: Sugar Free Meal Replacement Shakes
PepsiCo: Tropicana Pure Premium Essentials
Campbell Soup: Invigor8 100% Juice Energy Drink
LOW CALORIE SWEETENERS
Vancol Industries: Clearly Lite Diet Beverage
Well’s Dairy: Blue Bunny HealthSmart Vanilla Fudge Bar
HERBAL INGREDIENTS
Nutritional Concepts: Xan-Thin Dietary Supplement
PepsiCo: SoBe Courage
Biochem: Java Blast Energy Bar
APPENDIX: GNPD FOOD & DRINK CATEGORY DEFINITIONS
Baby Food
Bakery
Beverages
Breakfast Cereals
Confectionery
Dairy
Desserts & Ice Cream
Fruit & Vegetables
Meals & Meal Centers
Pet Food
Processed Fish, Meat & Egg Products
Sauces & Seasonings
Side Dishes
Snacks
Soup
Spreads
Sweeteners & Sugar
Weight Control