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Main Consumer Goods & Retail Food and Beverage New Profit Opportunities In Health, Convenience And Indulgence: Insight Into The Major Drivers In The Food And Drinks Industry
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New Profit Opportunities In Health, Convenience And Indulgence: Insight Into The Major Drivers In The Food And Drinks Industry

DateFeb, 2003
Pages156
Price / format€2145 / Hard Copy
€2044 / Electronic

€2 044 





Abstract:
The consumer megatrends of convenience, health and pleasure drive demand for new types of food and drink that are packaged in new ways, distributed through alternative channels and are consumed at non-traditional occasions. Manufacturers and retailers who really understand the impact made by the megatrends on consumer purchasing decisions will not only create a more desirable product line - they will see the opportunities for increasing market share, improving margins and engendering loyalty that may be invisible to competitors whose vision of the future is limited to "more health, more convenience, and more enjoyment.” New Profit Opportunities in Health, Convenience and Indulgence: Insight into the major drivers in the food and drinks industry is a new management report, revealing the emerging opportunities in the food and drink industry for products that fit with the consumer megatrends. The report provides a field guide to attaining higher margins, greater loyalty and increased 'share of stomach’.








Table of contents:
Table of ContentsInvestigating MegatrendsExecutive Summary 12Introduction to the megatrends 12Consumer lifestyle drivers 12Industry drivers 13Market evaluation 14Marketing mix 15Case studies 15Industry opinion 16Chapter 1 Introduction to the Megatrends 18Summary 18Introduction 18Consumer lifestyle drivers 18Industry dynamics 19Market evaluation 19Marketing mix 20Chapter 2 Consumer Lifestyle Drivers 22Summary 22Introduction 22Convenience 23Changing household structure 23More working women 24Changing working patterns 25Effects of time pressure on purchasing decisions 26Health 28Natural, organic and information-rich 29Low and light 32Functional and fortified – positive nutrition 35Pleasure 38Indulgent and premium 41Novel and fun 42Ethnic and exotic 42Chapter 3 Industry Drivers 46Summary 46Introduction 46Route to higher margins 47Increased consumer loyalty 50Gain greater share of stomach 52Chapter 4 Market Evaluation 56Summary 56Introduction 56Methodology 59Bakery 62Biscuits 62Bread and Rolls 63Morning goods, cakes and pastries 64Canned food 65Cereal bars 66Breakfast cereals 67Chilled food 68Confectionery 69Chocolate 69Gum 70Sugar confectionery 71Meal solutions 72Cooking sauces 72Chilled ready meals 73Chilled pizza 74Frozen ready meals 75Frozen pizza 76Dairy 77Cheese 77Chilled desserts 78Yogurt, milk and cream 79Ice cream 80Frozen food 81Snacks - nuts and seeds 82Snacks - popcorn 83Snacks - potato chips/crisps 84Snacks - savoury 85Drinks – soft 86Bottled water 86Carbonates 87Concentrates 88Energy and sports drinks 89Juices and fruit drinks 90New age beverages 91Drinks – alcoholic 92Beer and cider 92Spirits 93Drinks - hot 94Coffee 94Hot chocolate 95Tea 96Regional comparison 97Chapter 5 Marketing Mix 100Summary 100Introduction 100Price point 101How should a price point be chosen? 101Multi-pricing strategies 102Packaging 104Health product packaging 104Premium product packaging 105Convenient packaging 106Promotion 107Distribution 109Chapter 6 Case Studies 112Summary 112Introduction 112Case study 1 113Sainsbury’s private label cheddar 113Case study 2 116Patak’s Foods 116Case study 3 119Walnut Ridge South African cooking sauce 119Innovative product launches in each megatrend 122Bakery 122Canned food 123Cereals 124Chilled food 125Confectionery 126Cooking sauces 127Dairy 128Frozen food 129Pizza 130Ready meals 131Snacks 132Drinks – alcoholic 133Drinks – hot 134Drinks – soft 135Chapter 7 Industry Opinion Survey 138Summary 138Introduction 138Importance of each megatrend 139Importance of each megatrend for the consumer versus the food anddrinks industry 140Importance of each megatrend in ‘justifying a higher margin’ versus‘engendering consumer loyalty’ 142Objectives when developing and marketing products that fit withconsumer megatrends 144Important consumer groups for healthy, convenient and pleasurableproducts 146The importance of each channel for communicating added value to theconsumer 147Most important locations and channels for healthy, convenient andpleasurable products 148Most important ethnic influences on new product development 149Important consumption occasions for healthy, convenient andpleasurable products 150Chapter 8 Appendix 152Glossary 152Index 155List of FiguresFigure 2.1: Breakfast meals skipped by age group 27Figure 2.2: All-day snacking 27Figure 2.3: Proportion of population over 50, 1994—2006e 37Figure 2.4: Factors perceived to be among the most important influences on food choice in the EU,1996 (%) 39Figure 2.5: Top selling books on food and drink, November 2002 40Figure 2.6: Visits abroad (millions), by country 1995—2005e 43Figure 3.7: Which pricing/sales strategy? 47Figure 4.8: Martket evaluation methodology 61Figure 4.9: Average price point (US$), by product positioning for the biscuits category 62Figure 4.10: Biscuits megatrend opportunities, 2002—2007 62Figure 4.11: Bread and rolls megatrend opportunities, 2002—2007 63Figure 4.12: Average price point (US$), by product positioning in Bread and Rolls category 63Figure 4.13: Average price point (US$), by product positioning in morning goods, cakes andpastries category 64Figure 4.14: Morning goods, cakes and pastries megatrend opportunities, 2002—2007 64Figure 4.15: Average price point (US$), by product positioning in canned goods category 65Figure 4.16: Average price point (US$), by product positioning in cereal bars category 66Figure 4.17: Cereal bar megatrend opportunities, 2002—2007 66Figure 4.18: Breakfast cereal megatrend opportunities, 2002—2007 67Figure 4.19: Average price point (US$), by product positioning in breakfast cereals category 67Figure 4.20: Average price point (US$), by product positioning in chilled food category 68Figure 4.21: Chocolate megatrend opportunities, 2002—2007 69Figure 4.22: Average price point (US$), by product positioning in chocolate category 69Figure 4.23: Average price point (US$), by product positioning in gum category 70Figure 4.24: Gum megatrend opportunities, 2002—2007 70Figure 4.25: Average price point (US$), by product positioning in sugar confectionery category 71Figure 4.26: Sugar confectionery megatrend opportunities, 2002—2007 71Figure 4.27: Cooking sauce megatrend opportunities, 2002—2007 72Figure 4.28: Average price point (US$), by product positioning in cooking sauces category 72Figure 4.29: Average price point (US$), by product positioning in chilled ready meals 73Figure 4.30: Chilled ready meal megatrend opportunities, 2002—2007 73Figure 4.31: Average price point (US$), by product positioning in chilled pizza 74Figure 4.32: Chilled pizza megatrend opportunities, 2002—2007 74Figure 4.33: Frozen ready meal megatrend opportunities, 2002—2007 75Figure 4.34: Average price point (US$), by product positioning in frozen ready meals 75Figure 4.35: Average price point (US$), by product positioning in frozen pizza 76Figure 4.36: Frozen pizza megatrend opportunities, 2002—2007 76Figure 4.37: Cheese megatrend opportunities, 2002—2007 77Figure 4.38: Average price point (US$), by product positioning in cheese category 77Figure 4.39: Average price point (US$), by product positioning in chilled desserts category 78Figure 4.40: Chilled dessert megatrend opportunities, 2002—2007 78Figure 4.41: Yogurt, milk and cream megatrend opportunities, 2002—2007 79Figure 4.42: Average price point (US$), by product positioning in yogurt, milk and cream category79Figure 4.43: Average price point (US$), by product positioning in ice cream 80Figure 4.44: Ice cream megatrend opportunities, 2002—2007 80Figure 4.45: Average price point (US$), by product positioning in frozen food 81Figure 4.46: Average price point (US$), by product positioning in nuts and seeds category 82Figure 4.47: Nuts and seed snacks megatrend opportunities, 2002—2007 82Figure 4.48: Popcorn megatrend opportunities, 2002—2007 83Figure 4.49: Average price point (US$), by product positioning in popcorn 83Figure 4.50: Average price point (US$), by product positioning in potato chips/crisps category 84Figure 4.51: Potato chip megatrend opportunities, 2002—2007 84Figure 4.52: Savoury snack megatrend opportunities, 2002—2007 85Figure 4.53: Average price point (US$), by product positioning in savoury snacks category 85Figure 4.54: Average price point (US$), by product positioning in bottled water category 86Figure 4.55: Bottled water megatrend opportunities, 2002—2007 86Figure 4.56: Carbonated soft drinks megatrend opportunities, 2002—2007 87Figure 4.57: Average price point (US$), by product positioning in carbonates category 87Figure 4.58: Average price point (US$), by product positioning in concentrates category 88Figure 4.59: Concentrates megatrend opportunities, 2002—2007 88Figure 4.60: Energy and sports drinks megatrend opportunities, 2002—2007 89Figure 4.61: Average price point (US$), by product positioning in energy and sports drinks 89Figure 4.62: Average price point (US$), by product positioning in juices and fruit drinks 90Figure 4.63: Juice and fruit drink megatrend opportunities, 2002—2007 90Figure 4.64: New age beverage megatrend opportunities, 2002—2007 91Figure 4.65: Average price point (US$), by product positioning in new age beverages 91Figure 4.66: Average price point (US$), by product positioning in beer and cider 92Figure 4.67: Beer and cider megatrend opportunities, 2002—2007 92Figure 4.68: Spirits megatrend opportunities, 2002—2007 93Figure 4.69: Average price point (US$), by product positioning in spirits 93Figure 4.70: Coffee megatrend opportunities, 2002—2007 94Figure 4.71: Average price point (US$), by product positioning in coffee 94Figure 4.72: Average price point (US$), by product positioning in hot chocolate category 95Figure 4.73: Average price point (US$), by product positioning in tea category 96Figure 4.74: Tea megatrend opportunities, 2002—2007 96Figure 5.75: Example demand curve 102Figure 5.76: Demand curve with multi-pricing strategy 103Figure 5.77: Health versus indulgence 107Figure 6.78: Sainsbury’s private label cheddar 113Figure 6.79: Price range of private label cheddar 115Figure 6.80: Tikka Masala ‘Wrap kit’ 118Figure 6.81: Walnut Ridge ‘Cape Malay Curry’ cooking sauce 120Figure 6.82: Innovative new product launches: Bakery 122Figure 6.83: Innovative new product launches: Canned food 123Figure 6.84: Innovative new product launches: Cereals 124Figure 6.85: Innovative new product launches: Chilled food 125Figure 6.86: Innovative new product launches: Confectionery 126Figure 6.87: Innovative new product launches: Cooking sauces 127Figure 6.88: Innovative new product launches: Dairy 128Figure 6.89: Innovative new product launches: Frozen food 129Figure 6.90: Innovative new product launches: Pizza 130Figure 6.91: Innovative new product launches: Ready Meals 131Figure 6.92: Innovative new product launches: Snacks 132Figure 6.93: Innovative new product launches: Alcoholic drinks 133Figure 6.94: Innovative new product launches: Hot drinks 134Figure 6.95: Innovative new product launches: Soft drinks 135Figure 7.96: Importance of each megatrend in the food and drinks market 140Figure 7.97: Importance of the each megatrend for the consumer versus the food industry 141Figure 7.98: Importance of each megatrend in ‘justifying a higher margin’ versus ‘engenderingconsumer loyalty’ 143Figure 7.99: Objectives when developing and marketing products that fit with consumer megatrends145Figure 7.100: Important consumer groups for healthy, convenient and pleasurable products 146Figure 7.101: The importance of each channel for communicating added value to the consumer 147Figure 7.102: Most important locations and channels for healthy, convenient and pleasurableproducts 148Figure 7.103: Most important ethnic influences on new product development 149Figure 7.104: Important consumption occasions for healthy, convenient and pleasurable products15List of TablesTable 1.1: Top 20 sector profit opportunities for the consumer megatrends 14Table 2.2: Average household size, 1998—2002 23Table 2.3: Women’s share of the labour force, 2000—2004e 24Table 2.4: Average length of the working week, 1999 25Table 2.5: Survey of low and light use among U.S. adults: by gender 34Table 2.6: Survey of top five reasons for low and light use among U.S. adults 34Table 2.7: Prevalence of obesity (millions), 1990—2010 34Table 2.8: Proportion of population over 50, 1994—2006e 37Table 4.9: Top 100 sector profit opportunities for the consumer megatrends –1 of 3 57Table 4.10: Top 100 sector profit opportunities for the consumer megatrends –2 of 3 58Table 4.11: Top 100 sector profit opportunities for the consumer megatrends –3 of 3 59Table 4.12: Top 40 regional profit opportunities for the consumer megatrends 97







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