Sugar and sweeteners: the
consumer and industry’s response
FDIN May 2014
© 2014 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel
Everyday at Mintel…
2
mintel.com
Today’s presentation
3
Sugar &
sweetener
s
What do consumers think about sugar and
sweeteners?
Sugar
reduction
What are the latest trends in sugar reduction?
Winners,
losers, the
opportunit
y
How are products formulated and positioned, and
what’s working?
mintel.com
Consumers recognise low sugar and sugar-free as a healthy option…
UK consumers, types of products considered to be healthy, Sep
2013
Part of my five-a-day
Low fat/fat-free
Low sugar/sugar-free
Low calorie
High fibre
Unprocessed
Labelled 'light' or 'diet'
Labelled 'natural'
Organic
Low in carbohydrates
45
42
41
35
28
26
%
21
19
17
15
0
5
10
15
20
25
30
35
40
45
50
Roughly 40% of consumers say low/no sugar is healthy, higher than
the response for low calorie or generic “light/diet” labelling
4
Source: GMI/Mintel
Base: 2,000 internet users aged 16+
mintel.com
…Especially women and older consumers
Low sugar, sugar-free, considered to be healthy, Sep 2013
60
%
50
48
50
43
41
40
52
37
34
34
36
30
20
10
0
All
Male
Female
16-24
25-34
35-44
45-54
55-64
65+
Women and consumers aged 45+ are far more likely to see low sugar
and sugar-free as a healthy option
5
Source: GMI/Mintel
Base: 2,000 internet users aged 16+
mintel.com
Consumers are sceptical of sweeteners…
UK consumer, attitudes towards diet foods, Sep 2013
I'm wary of the ingredients/sweeteners in
diet food products
58
I'd like to see more products using natural
sweeteners to replace sugar
50
0%
Any agree
10%
20%
Neither agree nor disagree
30%
11
31
14
36
40%
50%
60%
70%
80%
90%
100%
Any disagree
Nearly 60% of consumers say they are wary of ingredients including
sweeteners used in diet foods; half would like to see more natural
sweeteners
6
Source: GMI/Mintel
Base: 2,000 internet users aged 16+
mintel.com
Consumers cite sugar reduction as key weight management strategy
UK consumers, actions taken to manage weight, Sep 2013
Exercise more
Cut back on fatty foods
Cut back on sugary foods/drinks
Eat smaller portions
Cut back on desserts
Cut back on alcohol
Cut back on carbohydrates
Eat more low sugar/fat/cal products
Eat more high protein food
Skip meals
60
49
48
48
41
30
%
28
25
18
15
0
10
20
30
40
50
60
70
After exercise, cutting back on fatty and sugary foods/drinks are the
2nd and 3rd most important actions taken to manage weight
7
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
mintel.com
Where do we see sugar-free and reduced sugar products?
UK new product introductions with low/no sugar
claim, as % total introductions
30%
25%
20%
Apr09-Mar10
Apr10-Mar11
15%
Apri11-Mar12
10%
Apr12-Mar13
Apr13-Mar14
5%
0%
Soft Drinks
Snack Bars/ Candy & Gum
Fruit Snacks
Breakfast
Cereals
Yogurt & Flav
Milk
The percentage of new products labelled sugar-free or low sugar has
declined over time in key categories
8
Source: Mintel GNPD
mintel.com
What’s sweetening sugar-free and low sugar soft drinks?
• Stevia has made
its mark in 201213…
• 41% of UK
consumers said
they were
interested in
buying low calorie
CSDs made with
natural
sweeteners e.g.
stevia
40%
35%
30%
25%
20%
15%
10%
Apr11-Mar12
5%
Apr12-Mar13
0%
• But acesulfame-k
and sucralose lead
and both have
shown growth in
9 use
Source:
GNPD
overMintel
time
• Use of aspartame,
Use of sweeteners in new soft
drinks, as % total
Apr13-Mar14
mintel.com
Diet carbonated soft drinks are strong…
UK retail value growth 2010-12
20%
18%
18%
16%
Diet / low calorie
CSDs now account
for 45% of the
market by value
14%
12%
10%
8%
6%
4%
4%
2%
0%
Diet / low calorie CSDs
Regular CSDs
After price and brand,
low calorie content is
the third most important
factor influencing choice
of CSD (31% of
respondents)
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
10
Source: Mintel
mintel.com
…While low sugar juice drinks have struggled lately
UK retail value growth 2010-12
10%
6%
5%
0%
Low sugar
-5%
-10%
-15%
-20%
-25%
-21%
Standard
Low sugar juice
drinks account for
just 16% of the
segment by value,
down from 20% in
2010
32% of consumers
limit their
consumption of juice
drinks due to the
high sugar content
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
11
Source: Mintel
mintel.com
Key factors influencing purchase of juice and juice drinks
12
47%
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
mintel.com
Low sugar juice drinks – winners and losers
Tropicana Trop50
Del Monte
Naturally Light
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)
Trop50 remains the
big story in sugar
reduction (and
stevia), with £15m
in retail sales in
2013.
Both are sweetened
with stevia.
13
Source: Mintel GNPD
mintel.com
Diverse messages for low sugar positioning
Brands reformulate and launch new products, with diverse
messages around sugar (or lack of…)
Coca-Cola Sprite with
stevia, 30% less sugar
14
Source: Mintel GNPD
Vimto Panda Still Juice Drinks,
“no added sugar, no
aspartame”
Innocent Fruity Water for
Kids, 50% pure fruit juice,
50% spring water
mintel.com
Key factors influencing purchase of kid’s snacks
15
44%
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)
mintel.com
So these meet the criteria?
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
16
Source: Mintel GNPD
“Contains naturally
occurring sugars”
mintel.com
Key factors influencing purchase of breakfast cereals
17
41%
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
mintel.com
Sugar reduction strategy
Front-of-pack:
less than 9g sugar
per portion
Added calcium
Wholegrain
Nestlé Chocapic Duo, France,
reformulated 2013
18
Source: Mintel GNPD
Nutrition panel:
28.7g sugars per
100g (previously
35.9g/100g)
mintel.com
Sugar replacement strategy
Front-of-pack:
“no added
nonsense”
Sweetened with coconut
blossom nectar, which
has a lower GI
compared to other
sugars
Nutrition panel:
18g sugars per 100g
Bear Alphabites, UK
19
Source: Mintel GNPD
mintel.com
Key factors influencing purchase of yogurt and flavoured milk
20
33%
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 / sugarfree 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
mintel.com
Sugar + stevia creates opportunity for sugar reduction
Both products are
sweetened with
sugar and stevia.
Tesco Healthy Living
Whipped Yogurt, UK
Yogho! Yogho!
drinking yogurt, NL
Reduced sugar; “50% less
sugar than a typical Tesco
mousse” ; 9.2g sugars per
100g
40% less sugar than
average yogurt drinks
Both flag “reduced
sugar” front-ofpack.
Stevia is not
featured as a
“destination
ingredient”
21
Source: Mintel GNPD
mintel.com
Sugar-free messages and sources of sugars
Glenisk Organic
Go-Yos, Ireland
Moma! Bircher Muesli
Yogurt, UK
Sweetened with organic
agave syrup; 4.1-4.3g
sugars per 100g
Sweetened with fruit
juice and puree; 11.9g
sugars per 100g
Go-Yos state frontof-pack “Developed
by mums, sugarfree recipe”.
Moma! yogurt states
on-pack “No added
refined sugar”.
22
Source: Mintel GNPD
mintel.com
Where else do we see sugar-free and reduced sugar products?
UK new product introductions with low/no sugar
claim, as % total introductions
16%
14%
12%
10%
Apr09-Mar10
8%
Apr10-Mar11
Apri11-Mar12
6%
Apr12-Mar13
4%
Apr13-Mar14
2%
0%
Sweet Spreads
Sweet Biscs,
Cakes
Desserts/ Ice
Cream
Sauces/
Dressings
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
23
Source: Mintel GNPD
mintel.com
Sweet biscuits – “light” or “better for you”?
Belvita
McVitie’s
Digestives
15g sugars per 100g;
slow release
carbohydrates, rich in
cereals, source of fibre
16.8g sugars per 100g
(higher for Light,
reduced fat variant)
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”.
24
Source: Mintel
mintel.com
Sauces – light, low sugar, low calorie, low fat
Dolmio Light Sauce
for Lasagne
Tesco Light Choices
30% less sugar, made
from 100% natural
ingredients
30% less sugar, low in
calories, free from
artificial flavours, colours
and hydrogenated fat
In sauces and
dressings most
examples of reduced
sugar products are
overtly healthoriented brands, e.g.
Weight Watchers.
But leading brands
and private label offer
“light” (low sugar)
alternatives
25
Source: Mintel GNPD
mintel.com
Conclusions
Sugar as
priority
26
Sugar reduction will continue to be a research
priority
The reality
But the reality is that market penetration of
reduced sugar foods remains relatively low
The
consumer
Consumer interest is high, but consumers
may be deterred by a negative taste
perception, confused by on-pack messages
mintel.com
Future steps
27
Stealth
health
Stealth health, or covert reduction, may work
in some categories
Stevia
& more
Alternative ingredients may provide part of
the answer
Comms
But in either case on-pack communication is
critical
Balance
And bear in mind – consumers increasingly
take the holistic, balanced approach…
mintel.com
David Jago
Director of Innovation & Insight
+44 207 606 4533
Tel
Email
djago@mintel.com
Twitter @mintelnews
© 2014 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel
mintel.com
The
Food & Drink
Innovation
Network
Sharing innovation best practice in the food & drink industry