Report Summary

Introduction
Consumers have a heightened level of health awareness and say they are taking active steps to control their health, yet obesity and its implications seem unstoppable.  Important shifts in lifestyle, nutrition and cultures are creating challenging market dynamics with manufacturers' core product offers being squeezed and having to find new strategies for growth.

Scope of this Report
-  Comprehensive data on adult and child obesity and overweight prevalence by country.  Data on exercise patterns and diet market sizes by category.
-  Quantitative data of proprietary consumer surveys highlighting the attitudes and behaviors of consumers.
-  Insights into changing attitudes and behaviors of consumers with important implications for industry.
-  Detailed action points offering practical strategies and examples of recently-launched innovative products.

Research & Analysis Highlights
Increased consumption of beverages is contributing to increased calorie intake. In the US in 1965 beverages accounted for just 12 percent of daily energy intake but by 2002, this number had jumped to 21 percent.  This increase in consumption is not being offset by a reduction in calories from food.

Across the whole Asia Pacific region, over two thirds of consumers were trying to lose weight even though only half considered themselves overweight.  In South Korea, which has the lowest levels of obesity, 90 percent were trying to lose weight.  In Asia, consumers are more likely to control weight through diet than exercise.

"Obesogenic" environments are contributing to the growth of obesity.  Among the key causes are the imbalance between calories consumed and energy used.  This imbalance is pronounced by social and cultural factors including the heightened need for convenience and pressure on time.

Key Reasons to Read this Report
-  Understand regional and national differences through qualitative and quantitative market data and compare growth forecasts to plan for the future
-  Gain insight into the consumer preferences and changing behaviors that will affect the strategic direction of manufacturers and retailers
-  Explore in-depth analysis of new products and action points that highlight existing best practice in NPD, communications and positioning strategies

Table of Contents

Overview
    Catalyst
    Summary
Executive Summary
    Hot topic
    The Future Decoded
    Obesity remains the key health issue to address
    The increasing prevalence of obesity is no longer confined to high income countries or households
    "Obesogenic" environments are contributing to the growth of obesity
            More sedentary lifestyles are creating imbalances between energy intake and expenditure
            Genes are contributing to the growth of obesity and overweight prevalence
            Changes in culture and societies are reflected in changing patterns of food consumption
    Consumers are increasingly taking responsibility for their own health
    Consumers are not willing to give up taste for health
    Regulation and government efforts to control the rise of obesity have had limited success to date
    Action Points
Table of Contents
Table of Figures
Table of Tables

THE FUTURE DECODED
    A contradiction - the rise of obesity and consumer demand for healthy products
    TREND: Obesity remains the key health issue to address
        How do we define obesity?
        The longevity and widespread implications of obesity are very concerning
            Healthcare costs are also set to spiral
    TREND: The increasing prevalence of obesity is not confined to high income countries or households
        There is a lack of consistent, trended and directly comparable data, despite the high profile of the issue
        Over half the population across Western Europe, the US and Asia Pacific are overweight or obese
            Obesity is not only associated with just high income countries or households
        Overweight and obesity prevalence in children is increasing worldwide
    TREND: "Obesogenic" environments are contributing to the growth of obesity
        More sedentary lifestyles are creating imbalances between energy intake and expenditure
            Calorie intake has increased globally
            There has been an increase in daily calorie intake and increased consumption of calorie dense foods
            Increased consumption of beverages is contributing to increased calorie intake
            Seventy percent of Australians are sedentary or have low exercise levels
            Southern Europe has the lowest frequency and intensity of exercise of the countries compared
        Genes are contributing to the growth of obesity and prevalence of overweight consumers
        Changes in culture and societies are reflected in changing patterns of food consumption
            Changing food consumption habits are encouraging the obesity trend
    INSIGHT: Consumers are increasingly taking responsibility for their own health
        Consumers are trying to control their weight through dieting regimes
            The notion of an ideal body shape is encouraging people to go on weight-loss diets
            In Asia Pacific, consumers are more likely to cut out fats from their diet
            European consumers equate a healthy diet to one incorporating more fruit and vegetables
        The five a day message is getting through
    INSIGHT: Consumers are not willing to give up taste for health
        Growth rates of diet alternatives are projected to grow faster than regular variants in Europe
        Health claims are behind the fastest growing brands in the UK
        The growth of indulgent products highlights the importance of taste
        Health comes second to taste when selecting products for snacks
        Consumer concern for health is creating shifts within product categories
        Consumers are moving to adjacent categories that they perceive to be healthier
        Obesity and overweight prevalence continue to rise despite consumer awareness and manufacturer response
    INSIGHT: Regulation & government efforts to control the rise of obesity have had limited success to date
        The current bans on advertising to children are ineffective
        Banning vending machines in schools may not be the whole solution
        Nutritional labeling is inconsistent across the globe and consumers check labels for different elements
        Fat taxes have obtained limited support but could change market dynamics if introduced

ACTION POINTS
    ACTION: Add healthy products to your range to minimize the risk exposure to obesity
        Reducing fat, salt and sugar content on existing products can help rejuvenate growth in core businesses
        Position food and drink offers as nutritionally beneficial
        Develop products that can address multiple health concerns to really achieve differentiation
    ACTION: Improve your existing portfolio by using portion control and labeling to help consumers make healthy choices
            Consumers are dissatisfied with the lack of healthy options and with the level of nutritional information provided by restaurants
        100 calorie initiatives are proving highly successful in some parts of the world
        Use labeling as a means to signpost healthy or better nutritional choices for consumers
    ACTION: Consider the opportunities that the regulations and revised guidelines provide
    ACTION: Take advantage of growth in indulgent categories, but consider the social responsibility implications
        Encouraging people to exercise or earn their indulgent moment could improve social responsibility scores
    ACTION: Taste and price must be important elements of the product mix alongside health benefits
        Consumer concern for their own health does not come at the cost of price, quality or convenience

APPENDIX
    Definitions
    Methodology
    References
    Ask the analyst
    Consulting
    Disclaimer

List of Tables

Table 1: Number of overweight and obese adults (15+ years old) by country (millions), 2002-2012
Table 2: Percentage of overweight and obese adults (15+ years old) by country (% adult population), 2002-2012
Table 3: Number of overweight and obese children (0 to 14 years old) by country (millions), 2002-2012
Table 4: Percentage of overweight and obese children (0 to 14 years old) by country (% child population), 2002-2012
Table 5: On-the-move food and drink market value in Europe and the US (US$m), 2000-2010
Table 6: Changes made to food and drink consumption by EU consumers in 2005 (% respondents)
Table 7: European consumer attitudes to dietary changes (% respondents) overall results, 20007
Table 8: European diet market as a percentage of segment, (% value) 2002-2012
Table 9: Selected categories, total market size Europe (US$m), 2002-2012
Table 10: Top 10 brands in 2005 and 2007, UK
Table 11: Turnover of the six largest companies most at risk from the obesity crisis
Table 12: Definitions

List of Figures

Figure 1: Comparison of the prevalence of overweight (BMI 25 to <30) and obese (BMI 30+) males & females across selected countries
Figure 2: Per capita daily calorie consumption in selected regions of the world, 1975-1995
Figure 3: Levels of physical activity in the US, 2005
Figure 4: Frequency of physical activity by country, 2005
Figure 5: Duration of physical activity by country, 2005
Figure 6: Active steps taken to eat healthily, by country, 2007
Figure 7: Attitudes to importance of reducing saturated fat intake across Europe and the US, 2007
Figure 8: Attitudes to importance of controlling calorie intake across Europe and the US, 2007
Figure 9: Attitudes to importance of reducing sugar intake across Europe and the US, 2007
Figure 10: Diet alternatives are growing across key food and beverage segments in Europe
Figure 11: NPD in the bread category have led to fast growth for UK bakers Hovis, Warburton and Kingsmill
Figure 12: Survey of Americans and Europeans shows that health influences the consideration of snack choice in around 50% of respondents
Figure 13: Percentage of consumers indulging in higher quality, more indulgent snacks in the evening
Figure 14: EU citizens believe parents and guardians have the most influence over what children eat
Figure 15: Using sunseed oil has helped Walkers rejuvenate sales in its core product lines
Figure 16: Mars Inc. has reformulated its core products by removing trans fats
Figure 17: Including nutritionally beneficial ingredients is becoming increasingly popular
Figure 18: Nutritionally beneficial products targeted at women's health could be replicated across many product categories
Figure 19: 100 calorie packs are increasing in popularity in the US and Canada
Figure 20: 100 calorie packs are evident across a range of categories from rice and desserts to snacks
Figure 21: The FSA Traffic Light Labeling System is intended to provide "at a glance" information on nutritional content of a product
Figure 22: The GDA system allows consumers to make personal choices based on their own needs
Figure 23: Signposting nutritionally beneficial products allows consumers to make like for like comparisons
Figure 24: Products positioned as indulgent are enjoying growth across categories and geographies
Figure 25: Innocent enjoyed their meteoric rise through offering products that are tasty, healthy and convenient