CONSUMER

Identifying the Health-Conscious Consumer

Targeting strategies for image-conscious, ethical workaholics By Ben Longman

Table of Contents

Copyright 2003 Business Insights Ltd This Management Report is published by Business Insights Ltd. All rights reserved. Reproduction or redistribution of this Management Report in any form for any purpose is expressly prohibited without the prior consent of Business Insights Ltd. The views expressed in this Management Report are those of the publisher, not of Business Insights. Business Insights Ltd accepts no liability for the accuracy or completeness of the information, advice or comment contained in this Management Report nor for any actions taken in reliance thereon. While information, advice or comment is believed to be correct at the time of publication, no responsibility can be accepted by Business Insights Ltd for its completeness or accuracy. Printed and bound in Great Britain by MBA Group Limited, MBA House, Garman Road, London N17 0HW. www.mba-group.com

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Table of Contents
Identifying the Health-Conscious Consumer

Executive Summary
Introduction The stressed consumer The conscientious consumer The proactive consumer The image-conscious consumer Conclusions

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9 9 10 11 12 13

Chapter 1

Introduction

15

Chapter 2
Summary Introduction

The Stressed Consumer

17
17 17 18 18 19 20 21 21 25 26

The stressed consumer How to define stress Exactly how stressed are consumers today? Strategies consumers implement to deal with stress Monitoring the effect of stress on consumer purchasing patterns Loss of time and temper Profit opportunities in food and drinks Effective management of stress responses

Chapter 3
Summary Introduction

The Conscientious Consumer

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29 29

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The conscientious consumer Who are conscientious consumers and where have they come from? The critical consumer Desire for simplicity and health concerns Do stressed consumers have time to care about ethics? Feel good and does good Identifying organic consumers Food crises prompting organic food and drink consumption Vegetarians and meat-reducers Putting a value on the vegetarian convenience food market Ethical consumers Varying attitudes towards paying price premiums Europe-wide Going green

30 30 30 32 33 33 34 37 40 42 44 45 47

Chapter 4
Summary Introduction

The Proactive Consumer

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51 51 51 52 52 54 54 54 55 55 56 57 58 58 61 63

Who is a typical proactive consumer? Consumer self-medication Key drivers of self-diagnosis and prescription Social change Supply-side drivers Healthcare cost containment Paving the way for competitive pricing in the OTC market Pharmacists drive to extend their role Sales of herbal supplements and OTC medicines The responsibility of the media in promoting herbal supplements Frequency of common ailments The consumers opinions How proactive consumers change their diet Discover nutraceutical and other opportunities in food and drinks

Chapter 5
Summary Introduction

The Image-Conscious Consumer

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67 67 68 68 70

Health and beauty regimes across Europe Physical health, beauty and mental wellbeing Marketing-specific consumer segments

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Consumers managing their weight Escalating social pressures The role of exercise in the working week A clear trend in the selection of diet products Fear of ageing Attitudes and concerns by age group The effect of fear of ageing on spending patterns The effect of ageing fears on purchasing and consumption patterns So many opportunitiesdiet, weight and image

71 71 72 73 75 75 77 78 81

Chapter 6
Introduction

Conclusions

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84 84 86 87 89

First and foremost - Indulgence Active not passive Scepticism and credibility Index

List of Figures
Figure 1.1: Figure 1.2: Figure 1.3: Figure 2.4: Figure 3.5: Figure 3.6: Figure 3.7: Figure 3.8: Figure 3.9: Figure 3.10: Figure 3.11: Figure 3.12: Figure 4.13: Figure 4.14: Figure 4.15: Figure 5.16: Figure 5.17: Figure 5.18: Figure 5.19: Figure 5.20: Figure 5.21: Percentage of organic consumers in Europe, 2001 10 The importance of feeling attractive for different age-groups 12 The three megatrends 15 Managing the stress response 26 UK consumer interest in food production, comparison between 2000 and 2001 31 Percentage of organic consumers in Europe, 2001 35 Organic food and drink value as a percentage of overall food and drink sector, 200139 Percentage of vegetarian and meat-reducing consumers in Europe, 2001 40 Vegetarian ready meals value as a percentage of overall ready meals market, 2001 43 Ethical behaviour in six European countries, September 2000 44 Willingness to pay more for ethical products, Europe, September 2000 45 Difference between have considered switching to ethical goods and willingness to pay for ethical goods in Europe 47 Summary of self-medication actions for minor ailments , 2002 53 Herbal supplements and OTC medicine value sales ( million), by country, 1996 2000 57 Changing role of food within the food as medicine concept 63 Different products are used to focus on different aspects of total wellbeing 69 Percentage of respondents in each of the three main consumer segments 70 Attitudes to ageing between different age groups 75 The importance of feeling attractive for different age-groups 76 Consumer attitudes to the physical and mental effects of ageing 77 Consumer attitudes to the physical signs of ageing 79

Figure 5.22: Figure 5.23: Figure 6.24: Figure 6.25:

Consumers response to fears of physical deterioration, by age group The effects of fear of ageing on the likelihood of changing spending patterns for different age groups Product launches by megatrend, 19992001 Active and passive benefits

80 81 85 86

List of Tables
Table 2.1: Table 2.2: Table 2.3: Table 2.4: Table 2.5: Table 2.6: Table 2.7: Table 2.8: Table 2.9: Table 3.10: Table 3.11: Table 3.12: Table 3.13: Table 3.14: Table 3.15: Table 4.16: Table 4.17: Table 4.18: Table 4.19: Table 4.20: Table 5.21: Table 5.22: Table 5.23: Table 5.24: Absenteeism due to stress and stress-related complaints, 2000 19 Effects of stress on normally stressed consumers, 2002 21 Effects of stress on grocery shopping for normally stressed consumers, 2002 22 Effects of stress on eating habits for normally stressed consumers, 2002 22 Effects of stress on eating habits for normally stressed consumers, 2002 23 Effects of stress on normally stressed consumers alcohol consumption, 2002 24 Effect of stress on normally stressed consumers drink choice, 2002 24 Effects of stress on hot drinks consumption for normally stressed consumers, 200225 Effects of stress on the willingness of normally stressed consumers to try new products 25 Organic consumers and proportion of spend - Europe, 2001 36 Value of organic food and drink markets, 2001 38 Value of overall organic food and drink sector and per head expenditure, 2001 39 Vegetarians and meat-reducers in Europe, 2001 41 Value of vegetarian convenience foods markets and per head expenditure, 2001 42 Ethical purchasing behaviour in Europe, 2001 46 Number of pharmacists, by country, 2000 56 Answers to the question How often have you suffered from the following complaints in the last month? 59 Answers to the question When ill what courses of action would you most commonly take (tick all that apply)? 60 Answers to the question In general, when you are suffering from minor ailments how do you change your diet? 61 Answers to the question For each specific ailment please state if you eat MORE of the following food categories (tick all that apply) 62 Hours of exercise per week 72 Reason for exercise, all respondents 73 Tendency to choose diet products by category 73 The potential market for diet products (m), 19962001 & CAGR 74

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