Sorcha Connaughton, Library Assistant & Information Specialist, Bord Bia – Irish Food Board
Health & Wellbeing continue as ever to play an important role in consumers lives. They have a desire “to feel better than well today and tomorrow.” ("Consumer Lifestyle Trends", 2019) As reported in a previous FoodAlert the trend for indulging sits comfortably alongside this desire for health and continues to feature as a prominent trend this year. New Nutrition Business’ 10 Key Trends report 2019 has highlighted that while there have been some changes in attitudes towards sugar, permission to indulge “wins every time”.
Consumers are more conscious of ingredients than ever before and are more sceptical of artificial sweeteners, as NNB highlights “Not everyone sees sweeteners as the answer … Some would rather stick to “natural” sugar grown in the fields than consume artificial ingredients synthesised in a lab.” This is seen clearly in the case of Fever-Tree who have grown sales more than any other FMCG brand (excluding alcohol) over the last year adding £42m (121.5%) to its value. (Mellentin, 2019) Fever Tree, a premium mixer brand sweetened with fructose has sugar content of 4-5g per 100ml which is below the threshold for the UK tax levy.
A recent report, “The evolution of food and drink in Ireland 2005-2017” was launched by FDII that “analyses how reformulation and new product development by the food and drink industry interacts with consumer choices to impact on the nutrient intakes of adults, teenagers, children and pre-schoolers.” The research was conducted before sugar tax was implemented by the Irish government and looking at the results its clear that reformulation had a dramatic impact on diets. Overall sugar consumption has dropped by 8% as a result. snacking 43% of consumers stated that if a sugar tax was introduced for sweet snacks, they wouldn’t switch to alternative non-sugary snacks (eg crisps). (Strutton, 2019)
Even with the focus on health per capita consumption of chocolate confectionery is noticeably higher in Ireland compared to its consumption in other markets, coming in at almost double the average for Western Europe. (Euromonitor, 2018) With speculation that the sugar tax will be implemented across further categories, there is concern that the sweet treats categories could see a 7% decline. (Smith, Cornelsen, Quirmbach, Jebb & Marteau, 2018). However given rising disposable incomes, positive consumer sentiment and the fact that Irish consumers currently spend a fifth of their grocery shop on junk food - the impact may not be as great as predicted.
The major players are looking at Ireland in a positive light however and are planning strategies accordingly. Most are placing focus on reformulations with goal of reducing calorie content or sugar content. Nestlé Ireland are launching its products with far less sugar content for example Kit Kat by 40%. Mars, for example, is currently investing lots into finding ways of manufacturing its chocolate products with fewer calories, the company looks at calories per portion size much more than the actual sugar content. (Euromonitor, 2018) They are choosing to carry out this research not just to guard against implications of introduction of taxes but also to cater to interest in health & wellness. Brands that are considering new product development or reformulation of existing product line should look to learnings of others experience. Taste is an important consideration for brands that are considering reformulation, consumers are very unforgiving if the taste of a product they love is changed. Suntory-owned Lucozade Energy reduced its sugar content by 65% and sales fell by £67 million (-18.6%) as consumers rejected the taste of the new lower-sugar formula.
While health focus is unavoidable Lindt and Ferrero Rocher are two premium brands that are continuing to perform increasingly well in Ireland. With rising incomes and passion for indulgences premium chocolate brands have seen positive growth in the category with forecasts looking promising.
References
Consumer Lifestyle Trends. (2019). Retrieved from https://www.bordbiaconsumerlifestyletrends.ie/
Euromonitor International. (2018). Chocolate Confectionery in Ireland Country Report. Euromonitor International.
Mellentin, J. (2019). 10 Key Trends in Food, Nutrition & Health 2019. New Nutrition Business.
Smith, R., Cornelsen, L., Quirmbach, D., Jebb, S., & Marteau, T. (2018). Are sweet snacks more sensitive to price increases than sugar-sweetened beverages: analysis of British food purchase data. BMJ Open, 8(4), e019788. doi: 10.1136/bmjopen-2017-019788
Strutton, M. (2019). Sugar taxes and the soft drinks industry. Mintel.