Buying betterment How health and wellness is driving growth in the food and beauty markets - Sun Strategy

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Buying betterment How health and wellness is driving growth in the food and beauty markets - Sun Strategy
Buying betterment
How health and wellness is driving
growth in the food and beauty markets

                  A whitepaper from
                  Sun Branding
                  Solutions
Buying betterment How health and wellness is driving growth in the food and beauty markets - Sun Strategy
Sun Branding Solutions | Buying Betterment Whitepaper

  1 in 5 reception age children in the UK are
  reported as overweight or obese

How healthy are you? Are you the ‘eat well every day, exercise three times a
week’ type or do you limit yourself Monday to Friday so you can splurge at
the weekend? Are you first in line for the latest ‘superfood’ or do you believe
‘everything in moderation’ is the best approach?

These days, health is a hot topic. According to the NHSi, in 1993, 15 per cent
of the adult population in the UK was overweight. In 2015, this had risen to
27 per cent, and it’s a figure that’s growing almost as fast as our waistbands.
We’re still not up to US levels (39 per cent of the population) but it’s an issue
health services across the world are keen to address. Plus, with more than 1
in 5 reception age children reported as overweight or obese, it’s an issue that
will only grow in prominence.

And it’s not just weight that’s a concern; as we all live longer and place more
pressure on services, it’s vital to eat well and cater to our changing nutritional
needs as we age. In fact, researchii suggests older consumers and those with
more “immediate” health concerns are more likely to pay attention to health
communications on foods, labels and marketing, so clarity is paramount.

At a time when consumers are setting the boundaries of their own wellbeing,
defining what healthy means to them, there’s a huge opportunity for brands
and retailers to not only cash in on a growing trend, but to help consumers be
the best version of themselves.

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Buying betterment How health and wellness is driving growth in the food and beauty markets - Sun Strategy
Sun Branding Solutions | Buying Betterment Whitepaper

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Buying betterment How health and wellness is driving growth in the food and beauty markets - Sun Strategy
Sun Branding Solutions | Buying Betterment Whitepaper

1. So, what is healthy anyway?
At the end of the 20th century, eating healthily was all about low fat, reduced
calories and getting your five a day. But over time, our understanding of
‘health’ has evolved to something far more complex, making every consumer
their own personal health advisor.

When health and nutrition is constantly making headlines, and with more and
more influencers selling their latest recipe for long-life and lean muscles on
social media, we’re increasingly picking and choosing the rules that work best
for us, whether that be clean eating, ‘flexitarianism’ or high protein snacking
to support our fitness goals. And it’s not just about physical health. In a time-
poor economy, health is about more than just food; it’s about convenience,
indulgence, mental health and me time. And when all those factors are
thrown into the mix, we’re willing to compromise on being ‘healthy’ for being
‘healthier’, as we take a more holistic view of our lifestyles. ‘Self-care’ is
becoming a major focus, as we try to escape stress and negativity in the wider
world around us.

And, according to WGSN’s New Wellness Foods 2018 reportiii,

  ‘Healthy-ish’ – a more relaxed attitude to wellness
  that allows indulgences and more flexible
  diets, and considers enjoyment of food to be as
  important as the health benefits.

Of course, traditional communications around the nutritional content of food
still matter; according to a European study by IRIiv, 70 per cent of shoppers
across Europe still look for foods with less salt, sugar, fat or calories. Last year
in Ireland, the Department of Health published ‘A Healthy Weight for Ireland:
Obesity Policy and Action Plan’v, with health initiatives planned up until 2025.
This is already beginning to have an impact on the Irish consumer, with 60 per
cent now taking steps to eat foods high in vitamins and minerals and increase
their fibre intake, which is already inspiring major changes to the average
shopping basket. Data from The Consumer Goods Forumvi (CGF) revealed that
more than 180,000 products were reformulated globally in 2016, with 75

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Buying betterment How health and wellness is driving growth in the food and beauty markets - Sun Strategy
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per cent of brands and retailers claiming they had reformulated products,
with salt and sugar the main targets for reduction and wholegrains and
vitamins the most added. The Government is taking decisive action too; in
the November 2017 budget, Chancellor Philip Hammond confirmed that soft
drinks with more than five grams of sugar per 100ml will see a tax hike this
year, with penalties in place as early as April.

Industry-wide reformulation with Government targets in mind is designed to
affect population-level intakes, specifically “of concern” nutrients such as salt,
sugar and saturated fatvii.

“In a competitive marketplace this strategy helps to ensure products are not
disadvantaged if, for example, every brand tastes as salty as the next,” says
Sally Moore, senior lecturer in food and nutrition at Leeds Trinity University.

“However, a lack of differentiation between nutrient values when comparing
labels doesn’t help products ‘stand out from the crowd’ as an obvious
healthy choice. Interestingly, some companies use media and marketing
messages to help communicate their commitment to reach these targets as
a differentiator, as we’ve seen recently in 2017 with a large sugar reduction
pledge in Kellogg’s children’s cerealsviii.”

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Buying betterment How health and wellness is driving growth in the food and beauty markets - Sun Strategy
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Other categories that were once resistant to focusing on health are getting
in on the action too; the launch of Skinny Lager this year (89 calories a bottle,
reduced sugar, low carb, vegan and gluten-free) signals a growing awareness
of the impact alcohol has on your diet. The rise of popcorn and meat-based
options like biltong and jerky in the snack aisle show we’re even compromising
on products that were once considered an indulgence.

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Buying betterment How health and wellness is driving growth in the food and beauty markets - Sun Strategy
Sun Branding Solutions | Buying Betterment Whitepaper

Plant-based snacks derived from nuts, seeds and seaweed are already hitting
the mainstream, and chickpea-based snacks saw 150 per cent growth last
yearix. The US and Asia are seeing launches including vegan jerky – trends
that soon spread to the European market, particularly as our willingness to
experiment with new flavours and ingredients increases.

According to the Waitrose Food and Drink Report 2017x, squeezing a fourth
meal into our day is becoming more and more acceptable, and is a trend
that’s set to continue. Mintel researchxi shows that Gen Z in particular are a
generation of erratic eaters and snackers, with nearly four in five (79 per cent)
of consumers aged 16-24 snacking once a day or more, compared to 62 per
cent of snackers over the age of 55.

However, there is also widespread dissatisfaction at the range of snacking
options available, despite the growing NPD in this category, making it an
area brands and retailers focused on delivering on snackers’ needs can tap
in to. Some brands, like Chicago-based protein bar company RXBAR are
using packaging to tap into this demand for clean eating snack options, by
listing its minimal ingredient decs on front of pack in bold text as its primary
front of pack design. New brands are stepping in with reformulated versions
of favourite products, making wellness swaps easy. Hunter & Gather’s
mayonnaise uses avocado oil to provide dairy-free healthier fats and Pow-
Cow’s frozen yogurt is high protein and low fat.

Even brands that were once firmly focused on the diet market are changing.

  Weight Watchers saw £26.9m knocked off its sales
  last year due to increased competition in the health
  and wellbeing market , as shoppers increasingly
                         xii

  want more from their food, not less.

One third of shoppers also want to buy additive free food, and one in three
read the ingredient lists and nutritional fact labels on food items before they
buy, so we’re not willing to take conventional front of pack health claims on
face value these days. Couple this with a growing distrust of food producers

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Buying betterment How health and wellness is driving growth in the food and beauty markets - Sun Strategy
Sun Branding Solutions | Buying Betterment Whitepaper

following major food scares like the horsemeat scandal, and consumers are
more likely than ever to take a close interest in what’s in their food, with a
focus on natural products, sustainability and rigorous traceability.

“For a while we have seen a move away from ‘less of’ claims such as ‘low fat’,”
says Sally Moore.

“Research with consumers suggests such messages are distrusted and in
older consumers at least, may be actively avoided – for example, they may
think ‘it’s probably full of sugar, I’d just buy the full fat version’. It seems the
market space now values messages of added health and vitality rather than
restriction, appealing to our hearts as well as our heads.”

According to Mintel Global New Products Database (GNPD)xiii, natural
product claims (which include no additives/preservatives, organic and GMO-
free) appeared on 29% of global food and drink launches from September
2016 to August 2017, which is an increase from 17% from September 2006
to August 2007.

Developed economies are increasingly focused on holistic health and
wellness, as, according to McKinseyxiv, the wealthier we become, the more
likely we are to invest in our health.

  With the developed world (Japan, Europe and the
  US) getting older, and emerging markets getting
  both bigger and richer, the market for things that
  make consumers healthier is set to expand into a
  trillion dollar business.

“Growing wealth means that as scourges like polio and malaria begin to fade,
“lifestyle” diseases increase in relative importance,” the report states.

So, the global need for ‘healthier’ alternatives that support us at every
stage of our lives is likely to be huge. And with blurred lines between food,
supplements and health and beauty, brands that can harness this need for
holistic wellness are at a major advantage.

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Buying betterment How health and wellness is driving growth in the food and beauty markets - Sun Strategy
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2. Consumers are becoming
amateur health experts
There will always be a battle between what marketers want to say and what
the law allows, and nowhere is this more of a challenge than in the health and
wellness market. According to Sun Branding Solutions’ head of regulatory
Phil Dalton, now more than ever, there’s a major disconnect between
what the law allows on product labels, and what the average person hears
about healthy eating; and this may be creating an issue for public policy.

  “The trouble with how labelling regulations deal
  with health is that they’re created by scientists and
  aren’t tied in to public health initiatives,” he says.

“So, while public health is focused on messages that our health depends upon
such as, reducing our intake of calories, fat, sugar and salt, on-pack positive
health messaging is all around vitamins and minerals and what’s been added.

Products are presented as ‘healthy’ because of the micro nutrients they contain
with no link at all to fat, sugar or salt. In fact, you can’t legally say a product is
the healthy choice simply because of low fat, low sugar, low salt. This means that
consumers looking for healthy options to reduce their calories, fat, sugar or salt
may be being misled by on pack ‘healthy’ labelling into choosing products that
claim to be healthy, and are within the law allowing a product to carry a health
claim, but which actually contain a horrendous amount of fat, sugar or salt.

We need to be able to be clearer on what is the healthy choice in
terms of public health and communicate it on pack in a way that the
consumer understands.

Nutrition labelling is now compulsory on most foods, but the evidence is that
consumers struggle to use the legally required nutritional information to make
healthier choices, mainly because it’s presented in such a scientific way that
it isn’t compatible with the way they eat and shop. Clear health messaging on
pack, visible at the point of purchase, where consumers make their choices,

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Buying betterment How health and wellness is driving growth in the food and beauty markets - Sun Strategy
Sun Branding Solutions | Buying Betterment Whitepaper

needs to be more aligned to what consumers understand and the way public
health is communicated. Currently though there isn’t the willingness to
change the law – certainly not while we’re still working with EU regulations.

In the short term therefore, more effort is required to relate better food
choices to the nutrition information that is provided. Something similar to
the 5-a-day campaign, to help consumers understand and use what they
see on pack, such as traffic light labelling, should be considered a priority.
Longer term, we should be thinking about making health messaging on
product labels to include reference to calories, fat, sugar and salt to ensure
the public health messages about cutting our intakes are passed on to the
consumer at the point of purchase and that they are not misled by products
presented as healthy, but which contain high levels of these nutrients.”

Increasingly, consumers are choosing where to make sacrifices and where to
indulge, as they focus on what matters to them. Take butter for example.

                        xv
  Kantar figures reveal that butter sales are up 19
  per cent year on year, and continue to grow with
  almost every market sector, apart from young
  families who still buy in to spreads to save money.

In fact, there was talk of a butter shortage back in July 2017, such is the growing
popularity of a once maligned high fat indulgence. It’s a prime example of

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consumers weighing up all their options and choosing products that fit with
many others to create a holistic picture of health. With many stories in the news
about the synthetic ingredients in low fat spreads, many are choosing butter as
a more natural alternative and eating it in reduced quantities.

In food to go, sales of salads are on the increase, as people continue to
spend on convenience, but with a healthier agenda. Kantar researchxvi
shows sales of salads are up 11.5 per cent to £749.5m a year, with all ages
buying into the sector. Plus, 17 per cent of shoppers said they would eat
more food on the go if healthier options were available. So, both the big
shop and out of home customer is making choices based on health.

This underlying ‘understanding’ of the benefits different foods and ingredients
give, and an acceptance that ‘healthier’ is OK does mean challenges for
regulatory teams and marketers, but offers huge opportunities too.

Fresh soups are a prime example of this principle in action. As research
shows, consumers are increasingly looking to sandwich and carb
alternatives for lunch, and chilled soup brands have flooded the market
in recent years. Most brands don’t make health claims on their packs,
but goodness, freshness and simplicity is implied by their pack format,
design and focus on ingredients. For example, illustrated fresh ingredients
coupled with high product visibility and a simple product title is all
the health-conscious shopper needs, as they believe they know what
benefits those ingredients will give them. Brands like Soupologie, Tideford
Organics and Rod & Bens do it well, without a health claim in sightxvii.

Packaging design has perhaps even more of a powerful effect for the online
shopper, when consumers looking to save time sometimes make quicker, and
therefore less informed, purchase decisions than if they were shopping in-store.

Research carried out at Leeds Trinity University explored how consumers
find perceived “healthy” products when using their normal online
supermarket website.

“Despite the enormous amount of product information available online, I
was surprised to see how quickly decisions are made and focus only on the
product photograph,” says Sally Moore.

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“Few used nutrition information. In fact, ‘fresh’ or ‘organic’ products and
brands were more often used as proxies indicating ‘health’, particularly for
older consumers”.

As revealed in a recent Sun Branding Solutions whitepaper, Age repackaged:
Design for an ageing population, the rapid growth of the over 50s is set to
offer great challenges and opportunities for brands and retailers in terms of
products and services that can promote healthier ageing.

Vitamin and supplement brand Prime Fifty focuses on addressing the needs
of the over 50s rather than highlighting individual vitamins or minerals –
for example ‘Strong bones’, ‘Healthy joints’ and ‘Fighting fatigue’. Prior to

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launching its range in 2015, the company surveyed more than 1,000 over 50s
about key aspects of their lifestyle, diet, family dynamics and leisure time to
establish what mattered to them.

Diet was considered a major determinant in helping keep fit and healthy. Most
respondents felt they were more conscious about what they ate and drank
today than they were 10 years ago – firstly, because there was a lot more
nutritional advice available and secondly, because they wanted to improve
or at least maintain their health. Many had tried to cut down on processed
foods, fat and sugar and increase intake of fresh fruit, vegetables, fibre and
lean meats. Overall, there was a general confusion as to what was good or bad
for you, however all agreed if they avoided processed food stuffs they would
be on the right track.

“There was a time when people accepted ageing and just carried on doing
what they’d always done, in terms of diet, smoking and drinking,” said Dr Max
Gowland, founder of Prime Fifty.

“But over 50s are now more aware of their health than ever before,
thinking about diet, exercise and supplements that will help them feel
younger and stay active for longer. Our survey revealed that while very few
older people look for added health ingredients when shopping, they are very
aware of the claims that are relevant to their specific needs – for example, low
fat and probiotic. Plus, a Mintel report showed that older people were more
likely to take vitamins or supplements on a daily basis (55 per cent of over-65s
compared with 38 per cent of 16-24s).

Prime Fifty’s quantitative research further endorsed this, establishing that
over 75 per cent of respondents in the survey took nutritional supplements
daily with the remainder either weekly or when they remembered.”

So, the consumer as a self-certified health expert does have its challenges –
but it offers opportunities too, especially when it comes to NPD and brand
design. The consumer is more demanding but more knowledgeable than ever
– whatever their life stage or age - which can help you cut to the chase when it
comes to marketing your product.

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Food trends of 2017
Out of the 10 trends Waitrose identified last yearxviii six* are undoubtedly
influenced by a health and wellness agenda. These are:

Carbs                                        Dark green veg
After being the enemy of dieters for         Waitrose sells a pack of kale,
years, carbs are back in favour, with        cavolo nero or chard every single
sales of bread, pasta, bulgur wheat          second, with more traditional
and quinoa leading the charge.               greens like broccoli and cabbage
                                             falling off the shopping list.
Turmeric
Thought to help with a myriad                Protein
of health concerns and used as               It’s not just meat and eggs –
a beauty treatment, turmeric                 shoppers have been loading up on
has been flying off the shelves              beans, seeds and meat-based snacks
this year, including as a drink              like jerky to up their protein intake.
mix to replace tea and coffee.
                                             *the remaining four trends
Blueberries                                  are brunch, peanut butter,
Heralded as a ‘superfood’,                   juniper berries and herbs.
blueberries have been a
popular shopping basket item
for the last few years, and their
popularity continues to grow.

Buddha bowls
Made popular by food bloggers,
Buddha bowls are a complete
meal in a bowl featuring grains,
raw or cooked veg, healthy
fat, protein and greens.

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3. Health foods are moving
from niche to mainstream

  There was a time when being healthy meant
  denying yourself; fat, sugar, carbs, chocolate.
  But these days, consumers are looking
  for more, not less. Over the last few years,
  there has been a seismic shift from promoting
  what’s been taken out to focusing on what
  you’re getting, especially in sectors where the
  consumer is already making sacrifices.

Plus, the rise of the ‘flexitarian’ – people who wouldn’t classify themselves
as vegetarian or vegan, but who avoid meat for health and environmental
reasons – means brands like Quorn, Linda McCartney and US brand Beyond
Foods don’t want to market themselves as vegetarian or vegan. Now meat-
free, high protein, ethical production and ingredient / flavour focus is more
the order of the day, as brands widen their targeting to incorporate everything
the consumer might categorise their health needs as. Being vegetarian,
vegan or flexitarian shouldn’t have to be a compromise, and brands are
drawing on more foodie cues to make eating meat-free more appealing.

Free From is also moving out of health shop territory and growing in sales
and value, as more consumers swap out dairy and wheat. According to the
IRI survey, 33 per cent of European consumers shop Free From, despite
only one per cent of the population being coeliac, seven per cent having
a sensitivity to glutenxix, and one percent having a diagnosed lactose
intolerance. Mintel forecasts that the Free From market will continue to
grow and will hit £673m by 2020.

“Gluten free now appeals to more than just those clinically diagnosed with
coeliac disease - an auto-immune reaction to gluten,” says Sally Moore.

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“These people require lifelong avoidance of all gluten and can feel a huge
reduction in symptoms when following a strictly gluten free diet and
symptoms can include abdominal pain, bloating, tiredness and anaemia.

  “However, gluten-free claims now appear
  to attract those younger, social media savvy
  ‘clean eaters’. Although the absence of gluten
  does not reflect overall nutrient content, it
  may be the halo effect operating here. That
  is, the presence of the claim is supporting
  a consumer perception that this product as
                                              xx
  holistically – and nutritionally – ‘healthy’ .

Consumers will describe their self-prescribed temporary gluten-free diets
as providing relief from bloating, constipation and even weight loss.

“As a dietitian watching the growth of this category in supermarkets, I
also think it can be no bad thing for people with coeliac disease, especially
given the financial pressure on the NHS has meant further limiting of free
prescriptions for gluten-free foods.

Non-dairy choices like almond milk
and soya have become relatively
mainstream, and marketed based
on more than just their lack of
lactose – it’s all about their ‘high
quality protein’, added vitamins and
minerals and ‘natural’ credentials.
Parker Williams, the brand,
innovation and packaging design arm
of Sun Branding Solutions, recently
created the packaging design for
Rachel’s Organic’s first lactose free
                                                          Designed by Parker Williams part
                                                                of Sun Branding Solutions

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yogurt. Parker Williams creative director Jo Saker says: “This is a product first
for Rachel’s and it was important to communicate to consumers that this is
still the Rachel’s organic yogurt they know and love; rich, creamy, full of great
fruit ingredients and lactose free”.

Plus, Free From options, though still having a large dedicated fixture in most
stores, are moving into category, with almond and soya milk now sitting
alongside cow’s milk in the dairy aisle, making it even easier for consumers to
switch out one element of their weekly shop for an alternative. NPD is frequent,
with the likes of oat milk and tiger nut milk appearing alongside the more
established alternatives with relatively little fanfare, but with growing success.

Wheat and gluten free products are doing the same, with brands like
Booja Booja, Good Carma, Genius, Perkier and Free’d celebrating their
benefits through an upbeat brand name and playful brand design. Doves
Farm explains the foodie taste profile and health benefits of flour made
from wheat alternatives such as rice, hemp, chestnut, quinoa, rather than
focusing on what you’re not getting. As these ingredients become more well
known in the mainstream, the more they’re likely to become a choice for
adventurous foodies who aren’t shopping to cater for an intolerance.

Challenger brands are undoubtedly leading the charge in Free From, but
demand is so great, it’s something traditional brands are embracing too. Big
name brands are ditching sub-brands in Free From, bringing them back under
the parent brand umbrella. For example, Warburtons, which used to sell Free
From bread under the Newburn Bakehouse sub brand, will sell 19 gluten-free
lines as Warburtons Gluten Free From this month, taking Free From back
into category. Bird’s Eye are launching new frozen Free From lines, including
chicken nuggets, to bring once specialist products in to the mainstream. And
although wheat and gluten free, as with lactose free, is hugely important for
those with diagnosed intolerances, it’s yet another on pack claim that further
supports all-round healthier eating for those looking to make incremental
changes to their supermarket shop.

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Shunning categories cues to
carve their own niche
Soft drinks is another area where            and no sugar, but with a
healthier options have become big            confrontational brand personality
business, with flavoured waters              using vibrant colours and chunky
and infusions the big winners in             text to target younger shoppers
2017 as consumers continue to                who want to be healthier but who
ditch refined sugar. Brands have             also want to make a statement
shifted their focus from younger             about the products they buy.
consumers to a more adult
market, swapping sweetness for               It’s a brave move, as most shoppers
more foodie flavours and artisan             are used to flavoured sparking
production methods. High-end                 water in clear bottles adorned
non-alcoholic spirits company                with images of fresh fruit, and it’s
Seedlip carved a new niche in                an approach that’s likely to divide
2017, offering an alternative to             opinion. But moving away from
gin with its copper pot distilled            traditional category cues into a
botanical inspired tipples to serve          more ‘lifestyle’ brand approach
with tonic, but with no alcohol,             could be something we see
no sugar and no sweeteners.                  more and more of as healthier
                                             options become the standard.
In fact, the naturally-inspired
soft drinks market is so strong
that some challenger brands
are starting to shun category
design cues, focusing instead
on the overall lifestyle effect.
Ugly Drinks launched last year,
promoting natural ingredients

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4. Living your best life – being a
healthier and more ethical version of you
These days wellbeing isn’t just about what you eat, it’s about feeling better
about yourself in every way, whether that’s about the products you buy,
the face cream you use or the causes you support. That’s why every brand
should be asking two key questions: How are expectations around health
and wellness evolving? And how can brands and retailers meet those
expectations – and help people fulfil their dreams of being their ‘best
self’? Brands beware though - consumers are freer than ever to construct
lifestyles and attitudes of their own choosing, thanks to unlimited access to
information, the erosion of old social conventions, endless choice and more.

  The reality is that men are the fastest adopters of
  yoga, women are embracing powerlifting and older
  people set the latest fitness craze, so stereotype
  at your peril. And never underestimate what they
  expect as ‘basics’ with their ‘betterment’ buys.

“These days, consumers expect more from products that fall under the
‘healthy’ or ‘betterment’ header,” says Sun Branding Solutions’ pack science
director Gillian Garside-Wight.

“They expect ethical and sustainable and assume recyclability, almost as
much as hygiene factors, so brands and retailers need to consider this in their
packaging as well as in the product it contains.

“For example, there are still many organic products that are packaged in
plastic made with petrochemicals, which clashes with what the consumer
believes they are buying in to.

“It’s vital that brands selling this betterment message bring it to life in
everything they do; for example, Abel + Cole using returnable crates for their
organic packaging, or eco-friendly cleaning products offering refillable bottles.”

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Consumers want to make a difference to their lives and the world around
them, but ‘betterment’ isn’t always about big gestures. It’s about making
incremental changes to how you live and what you consume to make a
cumulative positive impact.

Linking food trends with ethical actions can appeal greatly to the consumer
looking for betterment; for example, This Bar Saves Livesxxi donates meal
packets to children in need for every bar sold. On Pack communication is
minimal, focusing on the brand message, and it seems to be working. The
company has donated over three million meal packets to children suffering
from severe malnutrition.

For example, the growth in product boasting ‘good bacteria’ shows we’re
thinking of the small additions to our diets that could make a difference, but
that require very little effort or investment. Similarly, fermented food and
drinks like kefir and kombucha are beginning to hit the mainstream. Probiotic
milk drink brand Bio-tiful Dairy says sales of its bacteria-filled fermented milk
drink kefir are booming as a result of growing awareness of probiotics, proving
that it doesn’t take long for a product to move out of health food shops and
into the mainstream.

“It sounds obvious, but it has taken a lot of research to establish that what you
eat can, over time, change the type and amount of your bacteria living in your
gut,” says Sally Moore.

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“Fermented milk and foods, drinks or supplements with added beneficial
bacteria such as Lactobacillus or Bifidobacterius can boost your microbiota.
Clinically, there is exciting ongoing interest in these microorganisms to treat
and prevent a huge array of health conditions including everything from
infections or diarrhoea to optimising weight loss, or even your moodxxii.”

Protein continues to be a booming trend – not just for gym bunnies – with
traditional brands’ NPD thriving as a result. Weetabix created Protein Crunch
in 2016 and Weetabix Protein in 2017. The brand says it now accounts
for more than half of the protein cereal category with sales of £7.3m, as
consumers attempt to up their protein intake at breakfast. They’ve also added
protein products to their On The Go bottled range.

The protein has spread to the bread aisle too, with Warburtons launching a
range of protein-added baked goods last September. Baked with a blend of
pulses and grains, the range includes high protein bread, wraps and sandwich
thins. According to Nielsen, the range had racked up just over £2m in sales
by the end of the year. Bakers are also trying to win back the reduced carbs
crowd, by focusing on more holistic health. Hovis, has added more wheat
protein and fibre in its Lower Carb range, to replace 30 per cent of the
carbohydrates normally found in bread. Innovation is vital in this category as

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according to The Grocer, bread as a category suffered the third highest loss of
sales in 2016.

Protein has also been highlighted as a key component in weight loss
programmes, now being incorporated into evidenced-based programmes like
Weight Watchers. Protein-based meals centres such as eggs and lean chicken
are being encouraged heavily, with an emphasis on these foods as promoting
a feeling of fullness.

Tea is another category in decline, and the big brands are responding to the
‘betterment’ trend here too. As well as challenger brands offering products
to support immunity, combat stress and aid sleep, big names like Tetley are
responding too, launching a range of 18 ‘superfood’ inspired teas enhanced
with vitamins and minerals and including super trendy ingredients like matcha.
It may not be a big change, but it’s a simple swap for the average consumer
to make. These ranges not only focus on physical health, but play to the
consumers’ understanding of the benefits relaxation and sleep bring.

Helping consumers doesn’t have to be about reformulating your product or
using the newest ingredients though. According to Gillian Garside-Wight,
innovation in pack format could be key to helping people live healthier lives.

“Healthy foods tend to have a shorter shelf life and, often, a higher price
point,” she says.

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  “Even simple pack changes, like packing salad
  in ‘eat me, keep me’ packs can encourage
  shoppers to make healthier choices. It
  acknowledges how people really eat and by
  making a small change, can reduce food waste
  and increase shoppers’ willingness to buy.”

A word of warning though; when you’re planning a product launch or
marketing campaign aimed at consumers’ sense of doing the right thing,
it has to be founded on truth. Whether it’s a health benefit, the impact
on the environment or a statement on your ethical treatment of animals,
consumers are becoming increasingly savvy and distrusting – especially of
large corporates.

Take the supermarket ‘fake farms’ debacle. Tesco, Aldi and Lidl were all
highlighted in a National Farmers’ Union complaint to Trading Standards, with
the NFU claiming ‘fake farm’ brands were misleading to consumers, especially
when it comes to provenance. This was based on an NFU and YouGov survey
of 1,800 consumersxxiii – three out of five thought these farm brands were
‘definitely’ or ‘probably’ British, despite the brands’ ranges actually including
imported goods.

Yorkshire-based Morrisons, which has always claimed strong links with
British farmers, responded by committing to only sell fresh meat from
British farms, and recruiting more than 200 local suppliers, to support
British makers and improve traceability – a growing concern for shoppers,
especially in the meat aisle.

So, although consumers interpret health claims and benefits to suit their
own idea of health, they are far more cynical when it comes to ethics, as
the general population becomes more aware of fake news, greenwashing
and marketing tactics. Whereas 30 years ago, we were more likely to trust
information from perceived figures of authority, we’re now more likely to take
everything we’re told with a generous pinch of salt, mainly because we have
so much information at our fingertips.

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Your brand story must be built on truth, and have the proof to back it
up available across multiple channels if you are to appeal to the ethical,
socially-conscious consumer.

Building these stories is involved, with many strands needed to build
advocacy. For example, the Co-op recently announced that it would be
sponsoring Park Run as part of its commitment to supporting its customers to
be healthier. Coupled with a marketing focus on food quality, ethical sourcing
and a retro-inspired rebrand, and the Co-op is building a story that appeals to
its customers’ desire to make small changes that add up.

Sainsbury’s supported its ‘live well for less’ tagline by creating a living well
indexxxiv based on what consumers told them the term meant to them,
whether that was health, wealth or quality of sleep – 60 factors in total.

You can take the survey on their website and see where you rank against the
national average overall, but you can also get links to resources that might
help; services like Relate relationship counselling, Mind and local community
connections to help you deal with issues with your holistic wellbeing. It links
well with Sainsbury’s brand persona and taps in to a push from consumers for
supermarkets to help them be healthier.

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According to a study by Oliver Wyman Consultingxxv, three quarters of
consumers believe supermarkets have a responsibility to help them be
healthier, as they control 70 per cent of the grocery market in the UK.
Currently 81 per cent of people thought sugary items were on offer too
frequently and 61 per cent thought there were too many unhealthy options
on sale altogether.

Oliver Wyman suggests a number of initiatives that could help improve
consumer health and forge strong brand loyalty in its Fighting Fat reportxxvi,
from calculating overall health scores for a customer’s shopping basket
(rather than relying on the current traffic light system) to using excess space
in supermarkets for health clinics and fitness classes, or implementing bonus
schemes linked to activity levels.

“Scoring the ‘health’ of an entire shopping basket, as Oliver Wyman proposes,
may help consumers appreciate the impact of their purchases in a daily diet
context, in contrast to existing nutrition labels which focus only on the nutrition
content of a single serving of an individual product,” says Sally Moore.

“But even the best labels are just one tool in helping consumers eat a
healthy diet. Even our current traffic light labels have limitations, with recent
consumer research by the IGDxxvii finding consumers remain confused about
the new terminology ‘reference intakes’ and dislike different inconsistent label

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formats across brands. This research found that although consumers value
the display of traffic light signposting on front of pack nutritional signposting,
and notice when this is absent, they tend still to simplify traffic light colours
to just “avoiding reds” or specific nutrients they themselves are concerned
about, like salt.”

Younger generations are more demanding than ever, spanning more than just
ingredients. According to the WGSN Future Foods: How Gen Z Eatsxxviii report,

  Gen Z consumers want to know where their
  food comes from and how it is made, and being
  the first generation to grow up entirely online,
  they expect to get all the information they want
  about the products they buy. They will scrutinise
  nutrition labels, look up ingredients online, and
  choose organic, minimally-processed products.
  And while they are increasingly conscious of
  what they put into their bodies and how it makes
  them feel, young consumers also care deeply
  about how their habits affect the environment.

In fact, Nielsen reports that Gen-Z are willing to pay more for products
and services from companies who are committed to positive social and
environmental impact.

Gen Z are also open to trying different ways of eating, based on what they’ve
seen and heard online. Growth in veganism and paleo diets are driven in part
by bloggers and Instagram influencers who, according to the WGSN report,
make these diets look like ‘a very desirable lifestyle’.

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5. A desire to be beautiful inside and out
What happens in food inevitably spreads to the health and beauty market.
From green tea and pomegranate to turmeric and matcha, we’re increasingly
seeing ‘superfood’ ingredients moving out of our kitchen cupboards and in to
our bathroom cabinets.

And with predictions that the health and beauty sector is set to be the
fastest growing in the next five years, it’s a trend worth tapping in to.
Research by GlobalDataxxix forecasts that annual consumer spend per
head on health and beauty products will rise by £73 to £487 by 2022 and
of that total, skincare is forecast to be the fastest growing sub-sector,
rising 27.9 per cent.

It’s a trend that Parker Williams is already working on. They worked with luxury
wellbeing brand Green Gate to create standout brand and packaging design
for its powdered health shakes packed with vitamins and minerals. Although
Green Gate is a supplement, the dark glass cannisters, jewel-like colours and
foiling wouldn’t look out of place in a high-end beauty store. Green Gate is a
good example of a food brand that has stopped looking like food; it takes its
nutritional and ingredient message and dresses it in the visual language of
beauty. And it’s now one of the four top-selling brands in Harrods’ pharmacy.

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Created by Parker Williams part of Sun Branding Solutions
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Now, the team at Parker Williams are building on the brand to create
cosmetics that draw on the essence of the supplements and continue the
visual language of health that the food product established.

In fact, the visual language of health and wellness is now so well established
that the lines between nutrition and beauty are becoming seriously blurred.
And, with other products in the health and wellness arena, consumers are
increasingly drawing their own conclusions around the benefits beauty
products will bring them, based on their growing understanding of their
ingredients gathered from multiple sources.

“Vitamin drinks with rare minerals look more like high end skincare products;
the antioxidants that we find in our face creams are already being highlighted
as a health benefit in teas,” says Parker Williams’ founder Tamara Williams.

  “Now shared beneficial ingredients such as
  matcha and ginseng can be found in chocolate
  as well as traditional Chinese medicines, and
  they’re becoming far more mainstream and
  understood. Consumers are becoming increasingly
  knowledgeable and discerning when it comes
  to their beauty products, and this offers a real
  opportunity to deliver beautiful, stand out design”.

Health and beauty is an emotive issue, as it’s so centred on how we look and
feel. Biocol Labs ‘Something’ supplements range shuns traditional claims like
‘helps support health immune function’, choosing to focus on the change
they’ll make to the way you feel. So ‘Something to Help You Kick Ass’ helps
beat fatigue, while ‘Something for Happiness’ supports you through times
of stress. So many beauty and supplement brands are now more focused on
building an emotional brand rather than simply stating active ingredients and
their benefits on front of pack.

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                                                           Oliver Bonas beauty range

“With health and beauty, brands these days are selling the sizzle as much
as the sausage,” said Sun Branding Solutions senior regulatory manager
Tess Lawrence.

“The consumer is investing in self-care, so it’s often as much about the
perception of quality and delivering your own personal beauty goals as it is
about the ingredients.

“As health and beauty innovation often follows food trends, consumers
are often already aware of the perceived benefits a particular ingredient
provides. To make specific claims linked to an ingredient means a lot of testing
and expense, which only the biggest brands can stretch to. However, more
informed consumers are happy to buy in to a product containing an ingredient
they already understand, without any particular benefits attributed, only the
perception of that.”

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6. So, what’s the next big thing?
Once a new ingredient hits the mainstream, it’s everywhere. Green tea,
coconut oil, chia seeds – all once niche, but now a regular fixture on
supermarket shelves. And for 2018, there are a whole host of ingredients
lined up to make headlines. But it’s not just about ingredients; certain health
concerns come in and out of the headlines on a regular basis, changing the
consumer’s focus to a different need in both the short and long term.

“2018’s big trends are set to be Poke (raw fish salad), cassava flour, seaweed,
chaga mushrooms, and the continuing trend of using insects as a base
ingredient as we look for more sources of protein in our diets,” says Parker
Williams’ founder Tamara Williams.

“Hydration, heart health, digestion, energy levels and blood sugar levels are
big on the news agenda, so could be next to inspire NPD.”

  Texture, colour and visual stimulation is also set to
  be big business, as consumers look for something
  more sensory in their healthier options. According
  to Mintel, in 2018, the sound, feel, and satisfaction
  that texture provides will become more important.

And as is often the case, Asia is already consuming the products that the West
will by buying into in 2018.

 “From chewy beverages to complex formulations such as creamy ice
cream with crispy chunks, texture can make products more captivating for
consumers who continue to seek food and drink that is perceived as fresh,
functional, filling, or simply fun,” the report states.

“Asia is a model for the potential of unexpected applications of texture in food
and drink because the region hosts a range of beverages with pulp, tapioca
pearls, and extra carbonation along with food that also boasts innovative
textures that might be unheard of in other parts of the world.”

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A case in point is fermenting – a technique that’s been around for years in the
East and Scandinavia, but that’s now becoming increasingly popular in the
UK. Ready-made kimchi, kombucha and milk kefir, plus DIY kits to make your
own, are set to be big business in 2018, particularly as our demand for holistic
health grows.

“The types of bacteria found in ferments are thought to be related to the
more widely known (and more clinically tested) probiotic bacterial species
with the same assumed plethora of health benefits, some of which are still
being researched,” says Sally Moore.

“Whilst the current consumer interest in fermented products may be
driven by media stories, or the desire to reduce food waste, communicating
commercially about their health benefits is likely to be a challenge following
the probiotic legal decisions and the important need for clinical substantiation
of any health claims.”

Health is going mainstream across all channels and will continue to grow this
year – in store and online - with former disruptors now tapping in to the general
family market. Recipe box suppliers Hello Fresh launched by not positioning
themselves as healthier, but their focus on wholesome home cooked meals
has resonated with couples and families looking to eat more healthily all week.

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And now the firm is looking to launch breakfast solutions tooxxx, to cater for
customers wanting on-the-go alternatives and weekend brunch options that
aren’t a full English or a bacon sandwich. The service still has marginal market
penetration, but has clearly got supermarkets worried; both Sainsbury’s
and Waitrose have been trialling recipe box options to target from-scratch
customers who want a convenient way to experiment in the kitchen.

Once niche services like MuscleFood are also seeing mainstream growth;
the service, set up to deliver high quality protein for body builders online,
has attracted interest from families looking to eat better on a budget. Selling
bulk packs of mince, chicken and sausages at prices on a par with Tesco,
MuscleFood raked in £50m in sales in its last financial yearxxxi and now supplies
products like its high-protein pizza to Sainsbury’s, the Co-op and Spar. So,
not only is healthier eating having an impact on a product level, it’s having an
impact on how and where we shop too.

Snacking will remain big business and, according to Sun Branding’s Gillian
Garside-Wight, a continuing shift towards online shopping coupled with a
consumer desire to tailor products and services to their own specific health
framework could be key to innovation.

“Graze tapped in to both
convenience and health by
offering snacks that can be
delivered to you through the
post,” she said.

“They considered both product
and packaging and have built a
model that’s now moving into
other categories too.

Health in ‘out of home’ eating
is also likely to grow, with
brands like Holland & Barrett
recently linking up with juice
bar Crussh to create a strong link to healthier eating in its flagship London
store. Food to go sandwich alternatives look set to continue to thrive, and
snacking looks firmly focused on healthier, high protein options that help

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          35   Createda by Parker Williams part of Sun Branding Solutions
Sun Branding Solutions | Buying Betterment Whitepaper

consumers reduce their salt, fat and sugar intake. From slight tweaks to
established products, like lentil flour crisps, gourmet popcorn and flavoured
jerky to completely new concepts, like hemp water and Soboro’s Korean
inspired food to go, there’s something to appeal to traditional and more
experimental foodies across the board.

Convenience and healthier eating are set to remain intrinsically linked; in 2017,
established brands innovated with both format and product variants to tap in
to this trend. Weetabix’s bottled breakfasts and Soreen’s snack packs and bars
took existing products and made them more accessible to a time poor, health-
conscious market, and this will only continue as the market grows.

However, according to Gillian Garside-Wight, brands could be missing a trick
when it comes to innovation in convenient snacking.

  “Convenient snacks really need to be something
  you can eat one handed, as you’re generally doing
  something else at the same time,” she says.

“We’ve seen some innovation in crisps – for example, the Walkers sharing
pack – but not in the healthier snacking arena. Popcorn is continuing to
grow in popularity, particularly varieties aimed at adults, yet no brand has
really ventured out of a conventional crisp packet-style pack. Pack format is
definitely something that could help healthier snacking products to stand out
in what is becoming a very competitive market.”

Innovation is key to the success of supplements too, as consumers demand
more than just a simple multivitamin tablet to supplement their health.
According to Kantar xxxii, vitamins, minerals and supplement sales were up 2
per cent in 2017, but 2016 saw growth of 5.9 per cent, so sales are slowing.
Multivitamins for kids and adults have been key growth drivers, mainly due
to innovation in formats, and own label products have stolen market share
from brands.

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In 2018, we’re likely to see this innovation continuing, with products like
green juice gummy bears, vitamin sprays, gums and elixirs tapping into the
trend for convenience delivery.

“Personalisation continues to be big, and brands like Vitl, who provide
vitamins through the post, are taking it one step further. They offer a personal
online consultation to provide vitamins based on your specific needs – not just
nutritionally but it terms of sleep, stress and ageing – which then creates a
‘bespoke’ pack for you. This – plus the convenience – adds to the consumer’s
sense of doing something positive to improve their own wellbeing, with
minimal effort.”

Regulation from a Government level also looks likely to continue; in 2017,
Food Standards Scotland surveyed the public to assess their views on health.
65% of people in Scotland are concerned about having an unhealthy diet – a
rise of 15 percentage points since December 2015xxxiii.

  It also revealed that over three-quarters of the
  population in Scotland are in favour of government
  intervention to limit how much sugar, fat or salt
  goes into food. The survey also showed a shift
  from respondents wanting FSS to ensure their
  food is safe, to a growing need for them to focus on
  helping people in Scotland eat healthily.

The Scottish government also looks set to regulate multi-buy offers on
unhealthy foods in an attempt to slow down the growing obesity crisis.

Sally Moore says: “I so often hear that people are astonished with the sugar
content of even savoury ready prepared products and I always find myself
explaining the difference between naturally occurring sugars and those
added sugars from table sugar, fruit juice, syrups or honey, which we need
to cut down on.

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“It’s really confusing for consumers, not least because the total sugar content
(i.e. including both sugar types) appears on our back of pack mandatory
nutrition labels in the UK. For this reason, even adding tomatoes to your
recipe can add to sugar contentxxxiv. The Governmental pressure on food
companies now is to support reversing the obesity epidemic by working
to reduce sugar in specific existing products including cereals, yogurts and
biscuits, by 2020, by 20 per centxxxv.”

The NHS will also be implementing a decision made in 2017, to clamp down
on the high calorie, high sugar foods available in hospital shops. More than
half of NHS staff are said to be overweight or obesexxxvi, and weight and poor
nutrition is putting significant strain on health services generally. So, in 2018,
80 per cent of sweets sold in its shops, canteens and vending machines must
be 250 calories or less. Plus, 75 per cent of pre-packed sandwiches must be
less than 400 calories, with under 5g of saturated fat per 100g.

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Our five key take outs
1. One size doesn’t fit all                   2. Look for the next
                                              big (or small) thing
As society begins to embrace varied
body shapes and sizes, and the focus          As in any competitive market,
on mindfulness grows, there’s an              innovation is key, whether that’s
increasing trend amongst dietitians           from scratch NPD, a ‘healthy’
and nutritionists to promote                  twist on an existing product, pack
‘healthy at any size’ and ‘mindful            format or channel. With healthier
eating’, encouraging people to ditch          living – nutritionally, physically
diets and short-term food fads                and mentally – being high on the
for a more sustainable approach               agenda for a large proportion of
to all-round health. There’s no               every demographic, betterment is
‘one size fits all’ approach; in fact,        certainly not a niche trend and can
being able to tailor a healthier              be captured in a number of ways,
approach for your life is key to              big and small. It's about making life
making any change sustainable.                healthier and making life easier,
                                              for a whole range of consumers.
“A focus on why and how we eat,
awareness of your individual cues             3. Convenience is key
and accepting yourself are key
characteristics of these approaches,          Personalisation looks to continue
which also take the pressure of               to be popular throughout 2018,
failure out of short term fad diets,”         especially if that personalisation
says Leeds Trinity’s Sally Moore.             comes with added convenience.
                                              For the online shopper in particular,
“Enjoying eating and taking                   clever use of AI and limited choices
pride and pleasure in this part               under the guise of a product tailored
of daily life is a growing theme              just for you, offer a combination
in food retail and marketing and              of brand interaction and user
can still be remembered, even                 interface that appeal to the health
into January and beyond.”                     conscious, self-aware shopper.

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