Mairéad McKeown, Library Manager & Information Specialist, Bord Bia – Irish Food Board
This FoodAlert (the first in a series of 3) will look at the importance of trends, highlight Nielsen’s top trends that will dominate the Irish grocery market in 2019 (Part 1 - Health & Wellness) and conclude with key questions and implications for Irish suppliers. Whether you’re riding the crest of Health and Wellness or seeking to be an early adopter, this article is a super quick read which has been written with you in mind…
Why are trends so important?
Trends can help Irish suppliers look forward, ensuring that their strategies remain proactive in the changing landscape. Trends can also act as a catalyst for new thoughts and ideas, providing inspiration for profitable growth. The importance of trends cannot be over-stated.
Top trends to dominate the Irish grocery market in 2019 (Nielsen, 2019)
As mentioned, this is the first FoodAlert of a three part series and will focus on the Health and Wellness trend.
Health and Wellness:
The 59 sectors which make up the Health and Wellness category in Ireland have value sales of €2.8bn and overall there has been a 5% growth in the overall category. Source: Nielsen Scantrack + Dunnes + Discounters| Moving Annual Total (MAT) to April 21st 2019.
Limiting sugar has been ranked as the number 1 health concern, followed by 2) Eating 5 a day, 3) Limiting salt, 4) Low/no fat and 5) Limiting processed foods. Source: Nielsen Shopper Survey Jan 2019 N = 229. What’s interesting is the fact that salt has moved from fourth place in 2018 to third place in 2019. Also worth noting, is the fact that value sales of soft drinks are up by 14%, being driven by healthier options. No added sugar soft drinks are +27% and the only sector in consumption growth.
Source: Nielsen Shopper Trends, Nov 2018 N=1115 And Nielsen Strategic Planner, ROI Total Defined Market Read Multiples only | MAT to Mar 2019. This would indicate that the sugar tax appears to be working, with less people continuing to drink full sugar soft drinks and more people are reducing their consumption of such drinks.
In terms of communicating how your brand aligns to the Health and Wellness trend, it’s critical you bear in mind that health needs differ among consumer groups. Here are some insights from over 55s: ‘I regularly read the ingredients list on product packaging’ and ‘Manufacturers need to make ingredient lists clearer and easier to understand’. Naturally needs differ with 18-34 yr olds, whereby they are looking for messaging around newer eating trends. Source: Nielsen Shopper Survey Jan 2019 N = 229
Key Health & Wellness Questions for Irish Suppliers:
Do you have a clear understanding of the different needs of different consumer groups?
Are you dialling up on pack messaging that’s simple and easy to understand?
- Clear, educational, simple messages for over 55s?
- Vegan, organic, free from, low/no/reduced alcohol for 18-34 yr olds?
- How does your product help consumers address their top health concerns?
Do you have an innovation pipeline that’s agile and can respond to evolving consumer needs?
- Can you help Irish consumers limit their intake of salt as it becomes a rising health concern?
- Do your brands/products operate in an adjacent category where a sugar tax might be introduced and do you have an NPD strategy to help consumers limit their sugar intake?
The Implications for Irish suppliers:
Knowing your consumer is the first critical step in helping them manage their Health and Wellness. Keep your consumers’ needs at the heart of your NPD/innovation strategies and on-pack messaging. Think about how your brands/products can be both ‘Healthy for me’ and ‘Healthy for the world’ because according to Nielsen products in this sweet spot will thrive!
Reference
Mc Keown, M. (2019). Nielsen on trends that will dominate in 2019 – Part 2 Sustainability & Plastics. Retrieved from https://www.bordbia.ie/industry/insights/food-alert/nielsen-on-trends-that-will-dominate-in-2019---part-2-sustainability--plastics/