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2 May 2005
Chicago, IL
As various diets quickly move into and out of vogue, and consumers search for a weight loss “magic bullet,” two “good-for-you” consumer packaged goods (CPG) segments – organic and no-/low-sugar – stand out from the rest for their ability to generate especially strong and sustained growth, according to new research from ACNielsen, a leading global provider of consumer and marketplace information.
ACNielsen announced the findings during the annual Food Marketing Institute Show, where ACNielsen executives are making a number of keynote presentations.
The “Carb Conscious” segment (products with label claims such as “For your low-carb lifestyle”) actually topped the list of 11 good-for-you segments tracked by ACNielsen for generating the highest growth in the first 12 weeks of 2005 – up 20.2% vs. the same period last year. However, that increase was off sharply from the segment’s peak one-week growth rate of over 200% in mid-June of 2004. In fact, sales within the Carb Conscious segment have been slowing steadily ever since. For the one-week period ending March 19, 2005, sales of such products actually declined (-2.5%) compared with the same period last year. It was the first one-week sales loss for the segment since ACNielsen began tracking Carb Conscious products in 2000.
On the other hand, the organic and no-/low-sugar segments have proven much better able to sustain strong sales growth, as indicated in the table below.
| |
Dollar Volume % Change vs. Same Period Year Ago |
| Product Segment* |
Four Weeks Ending 10/30/04 |
Four Weeks Ending 11/27/04 |
Four Weeks Ending 12/25/04 |
Four Weeks Ending 01/22/05 |
Four Weeks Ending 02/19/05 |
Four Weeks Ending 03/19/05 |
| Organic |
10.5% |
12.7% |
12.1% |
16.8% |
14.9% |
14.4% |
| Sugar free, less sugar, no sugar added |
11.7% |
12.3% |
10.5% |
14.7% |
13.1% |
11.3% |
| Flax/hemp seed |
12.4% |
13.1% |
15.6% |
6.7% |
5.1% |
13.6% |
| Whole Grain |
4.9% |
4.0% |
5.0% |
5.9% |
5.8% |
7.0% |
| No/reduced lactose |
7.1% |
7.2% |
7.1% |
6.9% |
3.4% |
5.6% |
| Carb Conscious |
116.1% |
85.2% |
73.2% |
41.4% |
20.0% |
3.8% |
| No/reduced calories |
7.3% |
7.0% |
5.2% |
7.0% |
4.5% |
2.5% |
| No/reduced fat |
2.2% |
1.8% |
1.1% |
3.3% |
2.1% |
2.3% |
| Calcium (Excellent/good source of) |
3.1% |
2.2% |
1.8% |
3.0% |
2.2% |
1.7% |
| Salt/sodium (low/no/none added) |
-0.9% |
-0.1% |
-2.1% |
1.4% |
-0.4% |
-0.9% |
| Soy |
3.1% |
2.5% |
3.4% |
0.2% |
-0.3% |
-1.0% |
Source: ACNielsen LabelTrends™, Food/Drug/Mass Merchandise (excluding Wal-Mart) channels combined. *UPC-coded products only.
“Clearly, many consumers want to lose weight and eat more healthily overall,” said Alice Fawver, senior vice president, Marketing, ACNielsen U.S. “The sales numbers show that people will flock toward diets that promise results. However, keeping people on such diets has proven more challenging. The good-for-you product segments that are enjoying the most sustained success are those that offer health benefits without requiring a whole new way of eating.”
Besides the organic and no-/low-sugar segments, those generating consistent year-over-year sales gains include the flax/hemp seed, whole grain, no-/reduced-lactose, and no-/reduced-calorie segments.
While the growth rate for the no-/low-fat product segment has been in the low single digits, it is the largest good-for-you segment with sales topping $32.6 billion in 2004. Therefore, even modest percentage gains translate into significant dollar volume gains.
Good-for-you segments meeting with less success include the no-/reduced-sodium and soy segments.
The grocery channel dominates sales in all 11 good-for-you segments, with dollar volume shares ranging from 88.7% (no-/low-sugar) to 96.9% (organic) for the 12 weeks ending 3/19/05.
About ACNielsen
ACNielsen, a VNU business, is the world’s leading marketing information provider. Offering services in more than 100 countries, the unit provides measurement and analysis of marketplace dynamics and consumer attitudes and behavior. Clients rely on ACNielsen’s market research, proprietary products, analytical tools and professional service to understand competitive performance, to uncover new opportunities and to raise the profitability of their marketing and sales campaigns.
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