delivering consumer clarity health & wellness foods: … fileactive lifestyle. finally, these...

1FEATURED INSIGHTS | HEALTH & WELLNESS FOODS Copyright © 2015 The Nielsen Company

1

F E AT U R E D I N S I G H T S

H E A LT H & W E L L N E S S F O O D S: T H E M A R K E T E R ’S R E C I P E B O O K• Indianconsumerspurchasehealthandwellnessfoods

tofeelconfidentandattractive,inadditiontothebasicbenefitsofstayingdisease-free.

• WhilehealthandwellnessmeansphysicalfitnessformostIndians,peaceofmindisalsoanimportantattribute.

• ThehealthandwellnesssegmentisworthasizeableINR33,000crore,growing6%overthelastyear.

Work schedules are getting tougher for the average Indian, and Indian

consumers have been quick to realise that taking care of the family’s

health is the best way to combat stress and keep up with the pace of

modern urban life. While India has been the strongest advocate of home-

made and natural health fixes, the modern Indian, armed with product

knowledge, is warming up to packaged health and wellness foods.

The popular product offerings from a marketer’s stable in the health and

wellness foods category are breakfast cereals including oats, refined and

non-refined oils, health and energy drinks, biscuits, beverages like juices

and green tea and soups. Faced with an array of choices from different

brands across each of these products, benefits are top of consumers’

minds when making purchases.

DELIVERING CONSUMER CLARITY

2 FEATURED INSIGHTS | HEALTH & WELLNESS FOODS

BEINGHEALTHY...

FOR INDIAN CONSUMERS, HEALTH AND WELLNESS GOES BEYOND JUST FITNESS—THEY HAVE REQUIREMENTS THAT TAP INTO THEIR EMOTIONS AND VANITIES.

WHOLESOMEWELLNESS

Indian consumers who eat health and wellness foods are no longer

satisfied with being just disease-free; to them, good health and wellness

mean much more. They have requirements that are emotional, physical

and even vain. Emotionally, consumers expect healthy products to boost

confidence and decrease worries in their lives. On the physical side, they

expect to be fit enough to work effectively, not get tired and maintain an

active lifestyle. Finally, these products appeal to consumers’ vanities as

they are associated with a healthier, more attractive appearance.

GOOD IMMUNITY

DISEASEFREE

CONFIDENCE ABLE TO WORK EFFECTIVELY

NO RESTRICTIONS

IN LIFE

ACTIVE LIFESTYLE

LOOKINGGOOD

HAPPINESS: NO WORRIES

NOT GETTING

TIRED

EMOTIONAL SELF PHYSICAL SELF

ATTRACTIVE SELF

DISEASE


THECONSUMERBELIEFSYSTEM

WHATCONTRIBUTESTOGOODHEALTH?

Urban Indians today agree that good health is a holistic combination

of good food habits and healthy lifestyle habits. While consumers see

food as the key contributor towards good health, they are well aware

that food and lifestyle are two sides of the same coin and need to be

balanced to achieve results. Indian consumers agree that regulating

when and what they eat, along with maintaining good dental hygiene,

are the aspects of food that need to be monitored. Many also believe

that exercise, maintaining an active lifestyle and mental wellbeing are

lifestyle aspects that need to complement good food habits.

• Proper eating habits and good dental hygiene

• Disciplined : Timely meals, proper and clean bowel habits

• Calorific requirements of children are more than adults

• Dietary needs vary in women (they need more calcium and iron in their diet)

• Sufferers of lifestyle disease have different dietary requirements

• Avoid junk, fast food

• Regular exercise with regular intake of a balanced diet

• Yoga, gym, meditation, household activity

• Positive outlook towards life• Avoid smoking and drinking• Avoid sedentary lifestyle

• NATURE OF FOOD

• FOOD TIMINGS

• QUALITY AND QUANTITY OF FOOD

• FOOD ACCORDING TO ONE’S NEEDS

• GOOD DIET HABITS

• EXERCISE

• MENTAL WELL BEING

• ACTIVITY LEVELS

FOOD RELATED LIFESTYLE CHANGES


AHEALTHYMINDISAHEALTHYBODY

For most Indians, health and wellness means physical fitness without

disease or illness. Our studies also showed that for many, peace of

mind is also an important attribute.

WHATISHEALTHANDWELLNESSTOCONSUMERS?

Base: 920 (Married females in the age group of 18-55 years; SEC ABC)

Source: Nielsen

21

24

24

25

26

PHYSICAL STRENGTH

NO ILLNESS

FIT BODY

PEACE OF MIND

GOOD FOOD HABITS


MILKFOODDRINKSTAKETHELEAD

In a country that loves milk, it comes as no surprise that milk food

drinks (MFD) like Horlicks, Bournvita and Complan constitute the top

product category for consumption by a healthy margin.

HEALTHFOODSCONSUMEDINYOURHOUSEHOLD

Source: Nielsen

Base: 1840 (Married females in the age group of 18-55 years; SEC ABC)

MILK FOOD DRINKS

GLUCOSE PRODUCTS

CHYAWANPRASH

BAKED POTATO WAFERS

HOT CEREALS

MULTI GRAIN BISCUITS

ENERGY BEVERAGES

OLIVE OIL FOR COOKING FOOD

GREEN TEA

DIET BEVERAGES

MULTI GRAIN ATTA

GINSENG PRODUCTS

READY TO EAT CEREALS

SUGAR SUBSTITUTES

MUESLI

61

47

20

22

14

13

11

13

7

12

13

4

8

4

3

Percentage of Respondents


CONSUMERSCATEGORISEHEALTHFOODSBYBENEFIT

Emerging Categories like green tea, olive oil and multigrain atta clearly

shine in the weight reduction space. Baked potato wafers which hitherto

stood to lose out to regular potato wafers/chips on the taste factor,

seem to have an edge on taste vis-à-vis other health foods.

CATEGORYDIFFERENTIATIONINTHEMINDOFTHECONSUMER

Source: Nielsen

= CORRELATION < 0.50

AXIS-2 26.5%

AXI

S-1 4

5.5%

MUST FOR KIDS

Muesli SUGAR SUBSTITUTES

TASTY

VALUE FOR MONEY

WIDELY AVAILABLE

MEANT FOR PEOPLE LIKE US

Glucose BvgsLOW ON FAT

Atta Noodles

Diet BvgsChyawanprash

HEALTHY

POPULAR

Multi grain attaGreen TeaHELP REDUCING WEIGHT

Olive Oil

Hot Cereals (Oats)RTE Cereals

Milk food drinks

Baked Potato Wafers

Multi Grain Biscuits


ROOMFORMORE

The health and wellness foods market in India is worth INR 33,000

crore, with a growth rate of 6% over last year. The other key opportunity

in the sector is that consumers and brands have moved beyond just

breakfast substitutes; today the health and wellness trend plays across

segments of the food basket like snacks, packaged grocery, beverages,

sugar substitutes and refined/non-refined oils.

This encouraging value growth rate seen in health and wellness foods

is spread across different strata of society. Rural India is no stranger to

this trend. In fact, it is a front runner in the health and wellness food

growth story.

If we look at the value contribution of the different geographical zones

in the country to health and wellness food categories, we see a fairly

equal contribution, with the South zone leading the charge.

Source: Nielsen Retail Store AuditPeriod: MAT Dec 2013 Figure outside bar are growth over year ago

All figures in %

VALUECONTRIBUTION:POPULATIONSTRATA

28

32

55

31

36

40

44

37

47

38

32 -2 8 16

-8 6 27

2 7 3

-3 3 9

-28 -20 32

22

8

22

25

HEALTH & WELLNESS FOODS

REFINED OILS

BREAKFAST CEREALS

BEVERAGES

NOODLES

METROS NON METROS (URBAN) RURAL


All figures in %

Source: Nielsen Retail Store AuditPeriod: MAT June 2013 Figure outside bar are growth over year ago

Source: Nielsen Retail Store AuditPeriod: MAT Dec 2013

VALUECONTRIBUTION:ZONES

WHERECONSUMERSSHOP

The traditional trade channel continues to be favoured by Indian

consumers. However, for categories such as breakfast cereals, noodles,

packaged atta and tea, we see a skew towards modern trade. This

may be because consumers are largely unfamiliar with these new and

emerging categories of convenience foods, indicating they may need to

see the product before making the purchase decision.

3% 7% 9% 6%

94%

7%

62% 91% 77% 85% 76% 93% 97% 93%

REFINED O

ILS

BREAKFAST CEREALS

BEVERAGES (

MFD)NOODLE

S PACKAGED ATTA

PACKAGED TE

A SU

GAR SUBST

ITUTE

BISCUITS

NON REFIN

ED OIL

MODERN TRADE GENERAL TRADE

38% 23% 15% 24%

For categories such as breakfast cereals, noodles, packaged atta & tea, focus on the modern trade

channel becomes critical.

2 9 16 2

15 4 37 -14

12 -10 58 -6

12 -31 -27 -14

10 41 0 -7

22

25

21

16

34

24

18

15

29

23

22

24

25

17

18

32

33

39

39

25

HEALTH & WELLNESS FOODS

REFINED OILS

BREAKFAST CEREALS

BEVERAGES

NOODLES

NORTH EAST WEST SOUTH


In the current market scenario, products that are riding on the health

and wellness wave are charging consumers a premium. Though this

‘premiumisation’ is visible across product categories, some like

noodles charge a premium as high as 40%.

Source: Nielsen Retail Store AuditPeriod: MAT Dec 2013Premium calculated on Avg. price of the base category

‘PREMIUMISATION’OFHEALTHANDWELLNESSFOODS

CATEGORIES BASE H&W

NON REFINED OILS 13.5 14.4

PACKAGED ATTA 3.1 3.3

PACKAGED TEA 27.7 45.5

NOODLES 11.6 16.2

AVG PRICE PER GM/ML PREMIUM CHARGED(%)

40

64

8

10


WHATCANBRANDSDOTOWHETCONSUMERAPPETITE?

In a scenario where new products enter the market every day, but only

a few survive, the million dollar question for a brand is ‘What does

it take for a proposition to be successful in the health and wellness

food space?’ Close to a 100 different initiatives tested by the Nielsen

Innovation Practice, were evaluated to determine how the successful

propositions were able to set themselves apart with their marketing

mix.

INGREDIENTSFORASUCCESSFULCAMPAIGN

Brands need to focus on key drivers of perception to win in the health

and wellness marketplace.

Relevance and advantage: Highlighting a relevant consumer need and

playing up the specific advantage that a brand offers emerge as the

top two critical elements in the health and wellness food category.

Other factors that play a role are value, uniqueness and believability.

Health is critical, but taste is king: While promising health is

crucial, brands must also assure taste. But taste promises can vary

by product. For instance, in familiar and known products such as

biscuits, a subtle taste assurance will suffice. However, emerging

categories such as oats or green tea would require a bold taste

assurance.

Manage expectations: Set expectations cautiously, develop products

stringently. Research suggests that products in this domain have often

failed to deliver on the concept promise. Many products that don’t

meet expectations failed in the market.

Ingredients lead to health: Ingredients must be used as a peg in

communication to lead consumers to the end health benefit. While

both generic ingredients (like fruits, vegetables and milk and whole

grains) and specific ingredients (like protein, calcium and iodine),

have proved to work, specific ingredients seem to work relatively

better. Three in five people in India consider specific ingredients

like protein and fibre as very important health attributes. Typically,

manufacturers play up familiar ingredients, but a brand that uses

unfamiliar ingredients should not hesitate spending time on

explaining its uses.


Snacks gain acceptance: Brands should explore meals and snacks

beyond breakfast. The time in-between meals and snack-time treats

hold high potential. Despite the opportunity, only one in four concepts

talked about them. Therefore, this holds latent promise.

Mother’s instinct: Mothers stretch themselves as far as they can to do

what is best for their children. So, communication addressed towards

mothers about foods that have children as the end consumers works

well.

THENIELSENQUALITATIVEVIEWSARBANI SEN AND SIMERAN SETH, NIELSEN INDIA

• Mothers continue to be the gatekeepers of nutrition for the family. Juggling between

time consuming homemade foods and the quick-and-easy packaged food, it is an

ongoing tussle between health and convenience.

• With more and more mothers taking up jobs, there is a natural increase in their

desire to purchase food options that are convenient. Marketers need to take

cognizance of this change and ‘package’ convenience foods in such a way that it

helps lower any ‘guilt’ that mothers might face when picking up these options.

• Mothers today are carefully choosing health and wellness foods for their family and

depending on their choices, we have attempted to classify them:

• The Nurturing Perfectionist: She stays connected to the needs of her growing

child. Prepares a variety of tiffin options and ensures that MFDs are exciting and

tasty so as to keep packaged foods and ready-to-eat (RTE) foods away.

• The Traditional Nurturer: Additional nutrition is provided through animal

protein/or high protein veg options like soya. While they mostly look for

homemade food options, they also purchase packaged foods due to their kids’

demand for ‘taste and excitement.’

• The Balancing Nurturer: She caters to satiety via homemade and packaged

foods. Adds nutritive toppings to the existing convenience options (vegetables

to packaged noodles/butter on cream crackers) ensuring a balanced diet for her

children.

• The Indulgent Nurturer: She is the most convenience-driven mother. Her choices

are skewed towards giving packaged and ready-to-eat food options. She also

provides natural food products like olives, kiwi fruit, cashew nuts which are seen

as nutritious. She also procures probiotic drinks in a bid to eliminate the ‘guilt’

of substituting home food with RTE options.


DOLLY JHA

EXECUTIVE DIRECTOR

NIELSEN INDIA

RISHI SHARMA

ASSOCIATE DIRECTOR

NIELSEN INDIA

ABOUT THE AUTHORS

ABOUT NIELSEN Nielsen Holdings N.V. (NYSE: NLSN) is a global information and

measurement company with leading market positions in marketing

and consumer information, television and other media measurement,

online intelligence and mobile measurement. Nielsen has a presence

in approximately 100 countries, with headquarters in New York, USA

and Diemen, the Netherlands.

For more information, visit www.nielsen.com.

Copyright © 2015 The Nielsen Company. All rights reserved. Nielsen

and the Nielsen logo are trademarks or registered trademarks of

CZT/ACN Trademarks, L.L.C. Other product and service names are

trademarks or registered trademarks of their respective companies.

Sharang Pant, Richa Khetawat and Sonia Arora from the Nielsen

Innovation Practice team and Swapnali Patil from the Performance

Management practice contributed to this issue of Featured Insights.

delivering consumer clarity health & wellness foods: … fileactive lifestyle. finally, these...

Documents