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© 2014 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel
Sugar and sweeteners: the consumer and industry’s response FDIN May 2014
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mintel.com 2
Everyday at Mintel…
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Today’s presentation
What do consumers think about sugar and sweeteners?
What are the latest trends in sugar reduction?
How are products formulated and positioned, and what’s working?
Sugar & sweetener
s
Sugar reduction
Winners, losers, the opportunit
y
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UK consumers, types of products considered to be healthy, Sep 2013
Roughly 40% of consumers say low/no sugar is healthy, higher than the response for low calorie or generic “light/diet” labelling
Consumers recognise low sugar and sugar-free as a healthy option…
Source: GMI/Mintel
Base: 2,000 internet users aged 16+
15
17
19
21
26
28
35
41
42
45
0 5 10 15 20 25 30 35 40 45 50
Low in carbohydrates
Organic
Labelled 'natural'
Labelled 'light' or 'diet'
Unprocessed
High fibre
Low calorie
Low sugar/sugar-free
Low fat/fat-free
Part of my five-a-day
%
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Low sugar, sugar-free, considered to be healthy, Sep 2013
Women and consumers aged 45+ are far more likely to see low sugar and sugar-free as a healthy option
…Especially women and older consumers
Source: GMI/Mintel
Base: 2,000 internet users aged 16+
41
34
48
37 34
36
43
50 52
0
10
20
30
40
50
60
All Male Female 16-24 25-34 35-44 45-54 55-64 65+
%
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UK consumer, attitudes towards diet foods, Sep 2013
Nearly 60% of consumers say they are wary of ingredients including sweeteners used in diet foods; half would like to see more natural
sweeteners
Consumers are sceptical of sweeteners…
Source: GMI/Mintel
Base: 2,000 internet users aged 16+
50
58
36
31
14
11
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
I'd like to see more products using naturalsweeteners to replace sugar
I'm wary of the ingredients/sweeteners indiet food products
Any agree Neither agree nor disagree Any disagree
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UK consumers, actions taken to manage weight, Sep 2013
After exercise, cutting back on fatty and sugary foods/drinks are the 2nd and 3rd most important actions taken to manage weight
Consumers cite sugar reduction as key weight management strategy
Source: GMI/Mintel
Base: 1,394 internet users aged 16+ who have tried to lose weight/maintain a healthy weight in the last 12 months
15
18
25
28
30
41
48
48
49
60
0 10 20 30 40 50 60 70
Skip meals
Eat more high protein food
Eat more low sugar/fat/cal products
Cut back on carbohydrates
Cut back on alcohol
Cut back on desserts
Eat smaller portions
Cut back on sugary foods/drinks
Cut back on fatty foods
Exercise more
%
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UK new product introductions with low/no sugar claim, as % total introductions
The percentage of new products labelled sugar-free or low sugar has declined over time in key categories
Where do we see sugar-free and reduced sugar products?
Source: Mintel GNPD
0%
5%
10%
15%
20%
25%
30%
Soft Drinks Snack Bars/
Fruit Snacks
Candy & Gum Breakfast
Cereals
Yogurt & Flav
Milk
Apr09-Mar10
Apr10-Mar11
Apri11-Mar12
Apr12-Mar13
Apr13-Mar14
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• Stevia has madeits mark in 2012-13…
• 41% of UKconsumers saidthey wereinterested inbuying low calorieCSDs made withnaturalsweeteners e.g.stevia
• But acesulfame-kand sucralose leadand both haveshown growth inuse over time
• Use of aspartame,meanwhile,remains flat
What’s sweetening sugar-free and low sugar soft drinks?
Source: Mintel GNPD
Use of sweeteners in new soft drinks, as % total
0%
5%
10%
15%
20%
25%
30%
35%
40%
Apr11-Mar12
Apr12-Mar13
Apr13-Mar14
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UK retail value growth 2010-12
In the US market diet / low cal CSDs take 34% share and are forecast to grow by 2-3% per year over the next few years, following a period
of decline
Diet carbonated soft drinks are strong…
After price and brand, low calorie content is
the third most important factor influencing choice
of CSD (31% of respondents)
Source: Mintel
18%
4%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Diet / low calorie CSDs Regular CSDs
Diet / low calorie CSDs now account
for 45% of the market by value
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UK retail value growth 2010-12
Juice drinks as a whole have benefited from a good value image and active NPD, but low sugar variants have failed to capitalise on the
opportunity
…While low sugar juice drinks have struggled lately
32% of consumers limit their
consumption of juice drinks due to the
high sugar content
Source: Mintel
Low sugar juice drinks account for just 16% of the
segment by value, down from 20% in
2010
-21%
6%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
Low sugar Standard
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47%
Key factors influencing purchase of juice and juice drinks
High fruit content is the key factor, after flavour and price/promotion are eliminated
39% Of consumers say “Counts towards the recommended ‘5-a-day’ of fruit/vegetables”
29% Low sugar content is at best a 3rd factor
Source: GMI/Mintel
Base: 1,292 internet users aged 16+ who have bought fruit juice in the last three months
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Tropicana Trop50 Del Monte
Naturally Light
Trop50 remains the big story in sugar
reduction (and stevia), with £15m
in retail sales in 2013.
Both are sweetened with stevia.
50% less sugar and calories (3.9g-4.4g sugars per 100ml, according to
variant)
50% less sugar, 50 calories per glass (4.5g
sugars per 100ml)
Low sugar juice drinks – winners and losers
Source: Mintel GNPD
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Coca-Cola Sprite with stevia, 30% less sugar
Vimto Panda Still Juice Drinks, “no added sugar, no
aspartame”
Innocent Fruity Water for Kids, 50% pure fruit juice,
50% spring water
Brands reformulate and launch new products, with diverse messages around sugar (or lack of…)
Diverse messages for low sugar positioning
Source: Mintel GNPD
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44%
Key factors influencing purchase of kid’s snacks
Of consumers look for products that deliver one of five-a-day
34% Of consumers cite low sugar/salt as a key factor
32% Of consumers look for “natural” attributes
Source: GMI/Mintel
Base: 937 internet users aged 23+ who have bought snacks for their child (aged 7-15)
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Stream Foods’ Fruit Bowl Sea Fruit
Shapes
Both products are labelled free from
artificial ingredients, “1 of your 5 a day”,
and “no added sugar”.
Sugars 50g per 100g “Contains naturally occurring sugars”
So these meet the criteria?
Source: Mintel GNPD
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41%
Key factors influencing purchase of breakfast cereals
Of consumers cite satiety, “Keeps you feeling full until lunchtime”
38% Of consumers focus on high in fibre content
29% Of consumers mention low in sugar as a key factor for themselves; rises to 32% for family purchase
Source: GMI/Mintel
Base: 1,846 internet users aged 16+ who use breakfast cereals
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Nestlé Chocapic Duo, France, reformulated 2013
Sugar reduction strategy
Front-of-pack:
less than 9g sugar per portion
Nutrition panel:
28.7g sugars per 100g (previously
35.9g/100g)
Added calcium
Wholegrain
Source: Mintel GNPD
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Bear Alphabites, UK
Sugar replacement strategy
Front-of-pack:
“no added nonsense”
Nutrition panel:
18g sugars per 100g
Sweetened with coconut blossom nectar, which
has a lower GI compared to other
sugars
Source: Mintel GNPD
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33%
Key factors influencing purchase of yogurt and flavoured milk
Of consumers cite “all natural ingredients” as the key factor for yogurt, after flavour and price/promotion are eliminated
29% Of UK yogurt purchasers cite low sugar / sugar-free as an important attribute
49%
Of consumers agree with the statement, “more flavoured milk should contain natural sweeteners (e.g. stevia) as opposed to sugar”; rising to 54% among 16-24 year olds
Source: GMI/Mintel
Base: 1,602 internet users aged 16+ who have bought yogurt in the last 3 months
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Tesco Healthy Living Whipped Yogurt, UK
Yogho! Yogho! drinking yogurt, NL
Both products are sweetened with
sugar and stevia.
Both flag “reduced sugar” front-of-
pack.
Stevia is not featured as a “destination ingredient” Reduced sugar; “50% less
sugar than a typical Tesco mousse” ; 9.2g sugars per
100g
40% less sugar than average yogurt drinks
Sugar + stevia creates opportunity for sugar reduction
Source: Mintel GNPD
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Glenisk Organic Go-Yos, Ireland
Moma! Bircher Muesli Yogurt, UK
Go-Yos state front-of-pack “Developed by mums, sugar-
free recipe”.
Moma! yogurt states on-pack “No added
refined sugar”.
Sweetened with organic agave syrup; 4.1-4.3g
sugars per 100g
Sweetened with fruit juice and puree; 11.9g
sugars per 100g
Sugar-free messages and sources of sugars
Source: Mintel GNPD
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UK new product introductions with low/no sugar claim, as % total introductions
Some growth in % of products labelled as sugar-free or low sugar, but from a low base; few new developments in sweet spreads or desserts
Where else do we see sugar-free and reduced sugar products?
Source: Mintel GNPD
0%
2%
4%
6%
8%
10%
12%
14%
16%
Sweet Spreads Sweet Biscs,
Cakes
Desserts/ Ice
Cream
Sauces/
Dressings
Apr09-Mar10
Apr10-Mar11
Apri11-Mar12
Apr12-Mar13
Apr13-Mar14
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Belvita McVitie’s
Digestives
The “healthier” biscuits segment declined in value
terms by 5.4% from 2012-2013.
Competition has come from breakfast
biscuits: healthy positioning without
referencing the terms “light” or “diet”.
15g sugars per 100g; slow release
carbohydrates, rich in cereals, source of fibre
16.8g sugars per 100g (higher for Light,
reduced fat variant)
Sweet biscuits – “light” or “better for you”?
Source: Mintel
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Dolmio Light Sauce for Lasagne
Tesco Light Choices
In sauces and dressings most
examples of reduced sugar products are
overtly health-oriented brands, e.g.
Weight Watchers.
But leading brands and private label offer
“light” (low sugar) alternatives
30% less sugar, made from 100% natural
ingredients
30% less sugar, low in calories, free from
artificial flavours, colours and hydrogenated fat
Sauces – light, low sugar, low calorie, low fat
Source: Mintel GNPD
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Conclusions
Sugar reduction will continue to be a research priority
But the reality is that market penetration of reduced sugar foods remains relatively low
Consumer interest is high, but consumers may be deterred by a negative taste perception, confused by on-pack messages
Sugar as priority
The reality
The consumer
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Future steps
Stealth health, or covert reduction, may work in some categories
Alternative ingredients may provide part of the answer
But in either case on-pack communication is critical
And bear in mind – consumers increasingly take the holistic, balanced approach…
Stealth health
Stevia & more
Comms
Balance
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© 2014 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel
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Twitter @mintelnews
mintel.com
+44 207 606 4533
David Jago Director of Innovation & Insight
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