Targeted Health and Wellness Foods and Beverages: The U.S. Market and Global Trends

The market for targeted health and wellness foods and beverages is a dynamic and promising one, driven largely by the growing recognition—among scientists, government, practitioners, and consumers alike—of the instrumental role diet plays in a wide range of health conditions. In fact, diseases that are linked to eating habits, including heart disease, high blood pressure, stroke, some types of cancer, and diabetes, are among the leading causes of death in the United States.

The risk of developing diet-related chronic diseases increases with age, so the graying of the population is a key factor in this market. Escalating healthcare costs that prompt consumers to seek alternative ways of managing their health also serve to draw attention to these products.

Packaged Facts defines targeted health and wellness (THW) products as retail packaged foods and beverages that are specially formulated and distinctively marketed as addressing a specific health concern or disease. This category is distinct from, but related to, a number of other product categories, including functional foods, nutraceuticals, and condition-specific nutritional supplements, as well as the FDA-defined categories of foods for special dietary use and medical foods.

The most compelling insights in Targeted Health and Wellness Foods and Beverages are derived from a series of proprietary Packaged Facts online consumer surveys. More than 40 tables, charts, and graphs illustrating the results of these surveys are featured in the report. Among the key findings:

• Nearly two-thirds of U.S. grocery shoppers have purchased a food or beverage in the past year for the purpose of addressing one or more of the 20-plus health and wellness concerns examined by Packaged Facts. Cholesterol management and digestive health of particular concern.
  
  
• In many categories, THW shoppers are exceptionally willing to pay more for “better-for-you” grocery products. They also express an above-average willingness to pay more for higher-quality grocery products.
  
  
• The health benefit reputation of a food, beverage, or ingredient is the most significant factor when shoppers are making a purchase decision based on a specific personal or household health concern. This underscores the importance of conveying health benefits credibly, clearly, consistently, and frequently.
  
  
• Nearly half of shoppers in Packaged Facts’ survey say doctors are one of their key sources of information about nutrients in food, and about one-quarter cite other medical professionals. Furthermore, one-quarter of shoppers say a recommendation by a health professional is an important factor when buying grocery products targeting a specific health concern. Therefore, marketing to healthcare practitioners can be a rewarding strategy, despite challenges.
  
  
• Shoppers are proactive about conducting research to educate themselves about diet, as just over half of Packaged Facts respondents consider health, nutrition, and wellness websites to be among the most valuable sources of information about nutrients in food.
  
  
• In general, shoppers who purchase THW products tend to visit a broader range of grocery outlets than does the population overall.
  
  

Targeted Health and Wellness Foods and Beverages also analyzes the growing role of clinical evidence in marketing health-promoting properties of THW foods and beverages; the regulatory structures governing health claims in key countries; the increasing complexity of the international THW industry structure; and product and ingredient trends in the U.S. and globally.

This report focuses on products sold in stores, rather than specialty distribution products or foodservice offerings. Because this study focuses on food and beverages products formulated and marketed to address a specific health concern, whole foods (including produce) fall outside the market scope. Dietary supplements, energy drinks, sports/fitness performance products, and weight loss/maintenance products are also excluded from Packaged Facts’ definition of targeted health and wellness (THW) foods and beverages.

Table of contents

Chapter 1: Executive Summary

Definition, Scope, and Methodology

Related Terms

Functional Foods

Nutraceuticals

Foods for Special Dietary Use

Condition-specific Nutritional Supplements

Medical Foods

Medical Nutrition Therapy

Clinical Nutrition

Personalized Nutrition

Diet Is Implicated in Leading Causes of Death and Disability

Table 1-1: 15 Leading Causes of Death in the U.S.

The Regulatory Environment

United States

Canada

Europe and UK

Japan

Australia/New Zealand

People’s Republic of China

Market Factors

The Diet-Disease Link

Diseases Linked to Diet Kill Three Out of Four Americans

More Than 6 in 10 Shoppers Buy Targeted Health and Wellness Foods

Table 1-2: Purchasing of Targeted Food and Beverage Products, by Specific Health or Wellness Concern, 2011 (percent of U.S. grocery shoppers)

Cholesterol, Digestive Health of Particular Concern

Figure 1-1: Purchasing of Targeted Food and Beverage Products, by Specific Health Concern, 2011 (percent of U.S. grocery shoppers)

4 in 10 Shoppers Frequently Purchase Targeted Foods and Beverages

THW Shoppers Are Cutting Back on Grocery Spending …

… But They Are Also More Willing to Pay More for Better-for-You Foods

Market and Marketers

Oatmeal, Yogurt Top Choices for THW Consumers

Table 1-3: Purchasing of Selected Types of Grocery Products With Targeted Health/Wellness Positioning, 2011 (percent of U.S. grocery shoppers)

Credibility the Most Influential Factor in THW Purchases

Figure 1-2: Most Important Factors in Targeted Health/Wellness Food and Beverage Purchase Decisions, 2011 (percent of U.S. grocery shoppers)

Companies Use Relationships With Medical Community to Promote Products

Clinical Trials Generate Confidence Among Consumers, Practitioners

Industry Structure

Acquisitions, Partnerships Characterize the THW Industry

The Retail Marketplace

Price Promotions Prompt Purchases, Special Merchandising Not So Much

Figure 1-3: Comparative Influence of Retailer Marketing on THW Purchases, 2011 (percent of U.S. grocery shoppers)

In-Store Literature More Valuable for Information Than Employees

Figure 1-4: Comparative Importance of Retailers as a Source of Information About Nutrients in Food, 2011 (percent of U.S. grocery shoppers)

Is There a Dietitian in the House?

Product Trends and Opportunities

North America, Asia Top Regions for THW Introductions

Women’s Health, Immunity the Leading Categories

Figure 1-5: Global Targeted Health and Wellness Product Introductions, by Health Concern, 2006-2011 (share of reports)

Beverages Are Marketers’ Vehicle of Choice for Health and Wellness Benefits

United States Represents Nearly One-Third of Global THW Introductions

THW Consumers Buy Oatmeal and Yogurt

Figure 1-6: Purchasing of Selected Types of Grocery Products Due to Specific Health or Wellness Concern, 2011 (percent of U.S. grocery shoppers)

Products’ Benefits Are Increasingly Supported by Scientific Evidence

Consumer Trends

Three in Four Shoppers at Least Occasionally Buy Targeted Health and Wellness Foods

Figure 1-7: Frequency of Purchasing Grocery Products Because of Nutritional Advantages Addressing Specific Health Concerns, 2011 (percent of U.S. grocery shoppers)

Two-Thirds Buy Groceries Explicitly Marketed as THW Products

Figure 1-8: Frequency of Purchasing Grocery Products Marketed or Labeled as Targeting Specific Health Concerns, 2011 (percent of U.S. grocery shoppers)

Condition-Specific Grocery Shoppers Pursue Broader Wellness Goals

Chapter 2: The Products

Key Points

Definition and Scope

Related Terms

Functional Foods

Figure 2-1: Minute Maid “Enhanced” Juices

Nutraceuticals

Foods for Special Dietary Use

Condition-specific Nutritional Supplements

Table 2-1: Selected Condition-Specific Nutritional Supplements Tracked by SymphonyIRI

Medical Foods

Medical Nutrition Therapy

Clinical Nutrition

Personalized Nutrition

You Are What You Eat, After All

Diet Implicated in Leading Causes of Death and Disability

Table 2-2: 15 Leading Causes of Death in the U.S.

The Regulatory Environment

Permissible Label Statements Range From Informative to “Why Bother?”

Health Claims

Table 2-3: Requirements for Use of Fiber/Heart Disease Health Claim

in Food Labeling

Qualified Health Claims (QHCs)

Table 2-4: Standardized Qualifying Language for Qualified Health Claims

Table 2-5: Qualified Health Claims

Structure/Function (S/F) Claims

Dietary Guidance

Nutrient Content Claims (NCCs)

Table 2-6: Comparison of Health Claims, Qualified Health Claims, Structure/Function Claims, and Dietary Guidance Statements

Chapter 3: Market Factors/Macro-Trends

Key Points

The Diet-Disease Link

Diseases Linked to Diet Kill Three Out of Four Americans

Table 3-1: Projected U.S. Population by Age Bracket, 2010-2020 (in thousands)

Purchasing Patterns

More Than 6 in 10 Shoppers Buy Targeted Health and Wellness Foods

Table 3-2: Purchasing of Targeted Food and Beverage Products, by Specific Health or Wellness Concern, 2011 (percent of U.S. grocery shoppers)

Cholesterol, Digestive Health of Particular Concern

Figure 3-1: Purchasing of Targeted Food and Beverage Products, by Specific Health Concern, 2011 (percent of U.S. grocery shoppers)

Seventy Percent of Shoppers Purchase Food/Beverage Products Specifically for Nutritional Content

Figure 3-2: Purchasing of Food and Beverage Products for Specific Nutritional Benefits, 2011 (percent of U.S. grocery shoppers)

Just Under 70% of Shoppers Buy Beverages for Special Nutritional Benefits

Figure 3-2: Purchasing of Specific Beverage Products for Special Nutritional Benefits, 2011 (percent of U.S. grocery shoppers)

4 in 10 Shoppers Frequently Purchase Targeted Foods and Beverages

Half of All Shoppers Are Driven by Wellness Goals and Concerns

Table 3-3: Agreement with the Statement “The groceries I buy are determined in part by specific wellness goals and concerns,” by Health Concern, 2011 (percent of U.S. shoppers)

THW Shoppers Are Cutting Back on Grocery Spending…

Table 3-4: Agreement with the Statement “I am cutting back on grocery spending these days,” by Health Concern, 2011 (percent of U.S. shoppers)

…But They Are Also More Willing to Pay More for Better-for-You Foods

Table 3-5: Agreement with the Statement “I am willing to pay more for better-for-you grocery products,” by Health Concern, 2011 (percent of U.S. shoppers)

THW Shoppers Will Pay More for Quality Groceries

Table 3-6 Agreement with the Statement “I am willing to pay more for higher-quality groceries,” by Health Concern, 2011 (percent of U.S. shoppers)

The Regulatory Landscape

U.S. Food and Drug Administration

Health Canada

European Food Safety Authority

UK Food Standards Agency/Department of Health

Japanese Ministry of Health, Labor, and Welfare

Food Standards Australia New Zealand

State Food and Drug Administration, People’s Republic of China

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Related research categories

By sector: Trends, Health (in Soft drinks), General drinks

By market: United States (in North America), Global