Superfoods leading to super sales, but for how long?

London, Friday 10 August 2007 - The 65% of consumers who are trying to eat more healthily are no longer focused solely on reducing food intake or on moderating their consumption of perceived dietary evils such as fats, sugars and salts. Instead, new report* from independent market analyst Datamonitor shows a trend towards positive nutrition is emerging whereby shoppers are actively seeking nutrient rich fresh, organic and functional food and drinks. As a result, superfoods and drinks, like acai and goji berries are seeing a surge in demand. Superfoods and drinks are rich in specific nutrients and phyto-chemicals (i.e. anti-oxidants) and are promoted as being able to improve health condition and/or disease prevention.

The trend towards positive nutrition is well reflected by the recent popularization of superfoods, especially in the UK and US, comments Michael Hughes, Consumer Markets Analyst at Datamonitor and report author.

Consumers looking for healthy choices but with a positive focus
More than half of the 5413 European and US consumers surveyed told Datamonitor that they had taken more active steps to eat and drink more healthily in 2006. Its the food and beverages offering specific health benefits beyond basic nutrition that are increasingly valued. By 2011, Datamonitor expects the US and Europes functional food and drink market will be almost double that of 2001. Many food and drinks associated with superfood status have also enjoyed healthy growth in the last five years and this in part can be attributed to this status. The popularization of superfoods means that many food and drinks now have a healthy-halo which significantly influences consumer preferences comments Hughes.

Super products that lead to super sales
There are a number of product and market trends reflecting the desire to consume more nutrient rich superfoods:

* Exotic, highly fashionable fruits such as acai berries, goji berries and pomegranates have all risen in popularity. Pomegranate is currently one of the most fashionable superfood ingredients. In the period January 2005 to May 2007, there had already been a 500% increase in the number of products using pomegranate as an ingredient compared to the period 1999-2004. Right now, pomegranate is the hot ingredient, but this is likely to be superseded given that new ingredients are being continuously touted. Monitoring these developments will be vital if industry players are going to fully capitalize on the superfoods movement. Rich pickings can be had from those players who correctly identify the next hot ingredient and/or flavor, comments Hughes.

* Soy product sales more than tripled in Western Europe in the period 2001-2006. Sales in the US nearly doubled in the same time period. The broader nutritional benefits associated with soy (which has lead to its superfood classification) is a key driver.

* Green tea sales have grown substantially in the US. The market grew from US$119 million in 2001 to US$160 million in 2006. Such growth in Europe was not as apparent where the notion of superfoods is less apparent.

* Nuts and seeds sales are also growing in both the US and UK as consumers increasingly perceive such products as a healthy snacking alternative.

Increased consumption of Superfoods is an extension of other trends Datamonitor identifies a number of factors influencing the growth in popularity of superfoods and drinks. It identified that European and US shoppers believe that consuming fresh food and drinks is considered to be the most important route to a healthy diet.

Furthermore, more and more consumers want new taste and flavor experiences. These are big factors in why superfoods have gained popularity. The superfood trend merely goes hand in hand with the trend towards functionality, but also reflects consumers desire to consume natural, fresh and more exotic variants comments Hughes

Healthy snacks

Time pressures and the desire for a quick-fix is one answer to the fact that in 2005 alone, men in Europe missed on average 105 meals per year, compared to 94 for women. By comparison men in the US skipped 154 meals per year compared to 129 for women**. Datamonitor identifies an opportunity for manufacturer to respond to these time constraints by offering nutritionally enhanced snacks as a substitution for missed meals.

A word of caution going forward
Questions arise about the ethnical implications of superfoods and drink
Many Superfood products originate from countries away from the US or European market, meaning that the high cost and higher carbon footprints do not echo the increasing ethical/environmental concerns of todays society. The counter attack to this argument is that such Superfood is economically helping the rainforest to stay alive.

Careful Branding
Datamonitor believes that the superfood label has been effective in adding much needed vibrancy to healthy eating messages. After all, a "superfood" diet is unusual and refreshing in that the focus is on general health promotion rather than losing weight. Nevertheless, the analysts are cautious about the future, especially explicit superfood branding initiatives. While predicting that consumers will continue to demand more "good-for-you" products that provide both health and taste benefits, Datamonitor recommends manufacturers and retailers simply focus on incorporating good content into their products but not overly promote the products on the basis of superfood branding. The notion of superfoods has already been subject to fierce criticism and consumers are savvier and seeking to consume if not always managing a nutritionally balanced diet from a diverse range of food types. It is therefore important not to promote nutrient rich (superfoods) as a magic bullet/ quick-fix solution.

See www.datamonitor.com for further details.