Post on 01-Apr-2015
© 2011 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel
Free From FoodsFDIN seminar, 22nd September 2011
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Every day at Mintel…
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Contact details
• The presentation will be uploaded to the FDIN site, but if you really need something sooner:
Email: djago@mintel.com
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Today’s presentation
• Brief market perspective
• Some topline points on the consumer
• Look at two main segments:
•Wheat-/gluten-free
•Lactose-free/-reduced
• Focus on new product development
•Leading categories, growth areas
•The UK versus other markets
•Positioning of Free From foods
• Some thoughts for the future
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Why is “free from” important?
• Up to 45% of the UK population now have a food allergy or intolerance (Allergy UK report, October 2009)•Women, children and the ethnic population are most affected
• According to the British Nutrition Foundation (BNF) and Allergy UK, 1-2% of adults suffer from an allergy, compared to 5-8% of children•Estimated 1% of the population have coeliac disease•But a further 10% follow a gluten-free diet as a lifestyle choice,
according to Coeliac UK
• BNF estimates that 5% of the British white population are lactose-intolerant, with higher incidence among the ethnic population
• One in ten consumers will avoid certain foods just ‘to be on the safe side’, according to Mintel’s consumer research…
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It’s a growing market
Gluten-free, dairy-free and other free-from foods, estimated UK retail sales value
6 Source: Mintel, based on Symphony IRI Group InfoScan
32% growth 2009-2011
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A market dominated by two main segments
Gluten-free, dairy-free and other free-from foods, estimated UK retail sales value
7 Source: Mintel
£m
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Alpro (Dean Foods)23%
Dietary Specials/Trufree (Dr Schär)
11%
So Good (Kallo)7%
Lactofree (Arla Foods)4%
Genius4%
Livwell (Finsbury Food Group)
4%
Bakers Delight1%
Other inc. own-brand46%
A handful of leading brands
• Estimated value of UK brands in the gluten-free, dairy-free and other free-from foods sector, 2010
8 Source: Mintel
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Consumer: High levels of avoidance for dairy/lactose and wheat/gluten
• Types of food/ingredients avoided, July 2011
9
4
7
9
12
12
13
14
15
15
15
24
25
27
0 5 10 15 20 25 30
Celery
Soya
Eggs
Lactose
Wheat
Gluten
Dairy
Poultry
Cow's milk/cow's milk dairy products
Nuts
Fish or shellfish
Other
Red meat
%
Source: Toluna/Mintel
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Consumer motivation: more than a “need to” basis
• Food sensitivity and dietary limitations in households, July 2011
10
54
3
7
11
11
15
17
75
0
2
6
6
11
14
0 10 20 30 40 50 60 70 80
None of the above
Am/Is vegan (do not eat any products coming fromanimals,eg no meat, milk, eggs)
Am/Is vegetarian (do not eat any meat, poultry, game,fish, shellfish)
Allergic to certain foods (eg nuts, fish, egg)
Intolerant/sensitive to certain foods (eg gluten, dairy,wheat)
Avoid certain foods to be 'on the safe side'
Avoid certain foods because I/they think it's healthier/aspart of a healthy lifestyle (eg red meat, gluten)
%
My self Myself / Someone else in the household
Source: Toluna/Mintel
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Consumer attitudes to “free from” foods
• Attitudes towards specialist dietary food, July 2011
11
28
32
33
35
35
28
40
34
29
41
44
28
33
37
24
0 10 20 30 40 50 60 70 80 90 100
I follow a special diet as part of a healthy lifestyle (eg avoid gluten)
I trust specialist brands more than mainstream brands (eg Hovis, Warburtons in bread) for such foods.
I have cut back on my use of such foods during the recession.
Many family members sometimes eat such foods because one member follows a special diet
I trust specialist brands more than supermarket own-label for such foods
%
Any agree Neither agree nor disagree Any disagree
Source: Toluna/Mintel
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Gluten-/wheat-free foods
• Traditionally the largest market segment• Estimated retail value of £135 million in 2011, with 10% growth year
on year
• Factors for growth:•Increased distribution•Entry of new brands and high levels of new product activity•Private label range expansion•And the “Djokovic factor”…!
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In NPD, UK leads in gluten-free…
• European new product introductions of gluten-free bakery, pasta and breakfast cereals, January 2009 to June 2011
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NPD in gluten-free foods is generally strong in Europe
• European new product introductions of gluten-free bakery, pasta and breakfast cereals
• Growth in all segments except pasta
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NPD in gluten-free foods is more sporadic in the UK
• UK new product introductions of gluten-free bakery, pasta and breakfast cereals
• Significant growth in cereals, cakes and baking mixes
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Private label takes an important share of gluten-free NPD
• UK new product introductions of gluten-free bakery, pasta and breakfast cereals
• Note c. 30% share of gluten-free NPD taken by private label, versus 50% in total categories
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Gluten-free bread: focus on quality, freshness
Warburtons Gluten- and Wheat-Free range
Genius Gluten-Free Fresh Bread
10% of consumers ate/bought specialist free-from bread in 2010; on a par with functional/enriched bread (11%)
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Gluten-free cereals: polarisation of positioning
Focus on natural/organic Focus on the familiar
Kallo Foods’ Free To Enjoy Honey Nut Flakes
Doves Farm Organic Gluten-Free Cocoa Rice
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Gluten-free home-baking: covering all the angles
Everyday favourites Speciality bread mixes
Isabel's Naturally Free From Cheese Bread Mix
Mrs Crimble's Home Bake range including this Pancake Mix
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Wider potential in gluten-free meal solutions?
Frozen convenience foods Sauces
Seitz gluten-free pasta sauces, Germany
Bofrost Free pizza and pasta range, Germany
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Dairy-/lactose-free foods
• Estimated £143 million retail sales in 2011, overtaking the gluten-/wheat-free segment
• 8% growth in the last year, but nearly 40% growth since 2009
• Soy-based products a key driver:•Initially sought by lactose-intolerant consumers, now appeal to a
broader market as part of a healthy balanced diet•Command increasing shelf space in multiple retailers•Soy milk is now consumed by as many adults as organic milk (3%),
and a higher number than enriched or functional milk (1%)• Soy dominates in dairy-free, but the choice of alternatives is ever
expanding: rice, oats, coconut, almonds, hazelnuts, hemp and more…
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UK only a small player in lactose-free NPD
• European new product introductions of lactose-free and lactose-reduced foods, January 2009 to June 2011
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NPD in lactose-free recovers in Europe
• European new product introductions of lactose-free and lactose-reduced foods• Dairy category accounts for 40% of total
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NPD in lactose-free in the UK appears to grow, but limited activity
• UK new product introductions of lactose-free and lactose-reduced foods• Dairy accounts for more than half of all NPD
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Private label NPD in lactose-free is low…
• UK new product introductions of lactose-free and lactose-reduced foods• Private label activity is low, and shrinking
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Lactose-free dairy – not just soy
Purity, health Firmly health positioned
Braham & Murray’s Good Hemp dairy-free alternative, a natural
source of omega-3
Oatly Healthy Oat Dairy-Free Alternative to Cream, UK
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Positioning of lactose-free dairy products
Soy, organic, BFY Easily digestible
Arla’s Lactofree yogurtsProvamel Bio organic soy yogurts
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Recent activity noted in cheese segment
Dairy-based Soy-based Dairy-based
Lactofree semi-hard cheese, UK
Life Free From Parmazano, UK
Milram Burlander cheese slices, Germany
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Strong development in German desserts market
Specialist supplier RetailerMainstream
supplier
Lupinesse “ice cream”, dairy-free and entirely
plant-based
Bofrost Free lactose-free frozen tart
Coppenrath & Wiese Cafeteria frozen
desserts
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• Strengths • Weaknesses
Conclusions and points for the future
• Free from foods can capitalise on healthy eating trends
• Free from fits with rise in “natural” healthy eating, and greater transparency over ingredients and formulation
• Growing interest from mainstream brands that invest in the market
• Limited consumer resistance to new brands and private label – good news for evolution of the category
• Recessionary impact affects a third of consumers
• Negative taste perceptions persist in some segments
• High pricing is an obstacle to trial for consumers buying in to the “healthy lifestyle”
• “Field support” works for the dedicated core market, but lack of promotional activity restricts wider potential
• Separate fixtures similarly a potential weakness
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Where next?
• Future potential depends largely on the ability to tap into the “healthy lifestyle” mindset•Which is controversial, for some
• Free from foods, like all other foods in the mainstream, need to adopt additional values:•Health attributes•Environmental benefits•Convenience •As well as taste and texture
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© 2011 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel
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0207-606-4533djago@mintel.com
David JagoDirector of Innovation & Insight