Foods with 'Healthy Supplements' and Organics Have Room for Growth

Major Perception Gaps Across the Globe Towards 'Fortified' and Organic Foods

Popularity Held Back by 'Pricy' Image, Niche Distribution and Credibility

28 November 2005
Hong Kong

‘Functional Foods’, fortified with added vitamins or supplements and promoting specific health benefits, as well as organic alternatives, are yet to convince consumers of their value, according to a study released today by ACNielsen, the world’s leading marketing research and information company.

In a global survey conducted on the Internet across 38 countries, ACNielsen asked consumers which of a list of foods promoting specific health benefits they purchased:

• Cholesterol reducing oils and margarines
• Fermented drinks containing ‘good’ bacteria
• Yoghurts with Acidophilus cultures / probiotics
• Soy Milk
• Milk with added supplements / vitamins
• Bread with added supplements / vitamins
• Whole grain, high fibre products
• Cereal with added folate
• Fruit juices with added supplements / vitamins
• Iodine enhanced cooking salt

Among these ten major food types, only four were bought regularly by at least a third of shoppers. Another four would not be considered by over one third of shoppers, and two have never been heard of by one-tenth of consumers.

The twice-yearly global ACNielsen Online Consumer Opinion Survey, the largest of its kind, polled over 21,100 respondents – regular Internet users – in 38 markets across Europe, Asia Pacific, North America, Latin America, and in South Africa in May 2005.

The 38 Markets Covered

Across the globe, it seems that consumers in South Africa, Brazil, Chile and Mexico are the most convinced of the value of foods promoting health benefits. In South Africa in particular, the share of regular buyers of healthy foods ranks the highest across six out of ten of the surveyed food types. Latin America boasts the highest number of regular buyers of ‘iodine enhanced cooking salt’ and ‘milk with supplements/vitamins’. Latin America, along with Asia Pacific, also ranked the highest in purchasing ‘fermented drinks containing good bacteria’ and ‘soy milk'.

Despite generally high awareness of various healthy foods among consumers globally, there are certain die-hards, especially in Europe, who have never bought foods of this kind or never heard of them. Of all markets surveyed, Denmark had the highest number of people who claimed never to have bought nor heard of ‘soy milk’ (94%), ‘milk with supplements/ vitamins‘ (94%), ‘bread with supplements/vitamins’ (83%), ‘fruit juices with supplements/vitamins’ (60%), and ‘iodine enhanced cooking salt’ (90%).  South Korean ranked highest with 69 percent of its people having never bought nor heard of ‘cholesterol-reducing oils and fats’.

On average, about a third of consumers in the four regions surveyed didn’t believe they really offered additional health benefits as they claimed. The distrust was the greatest in Asia Pacific, Europe and in South Africa towards fruit juices, while North and Latin Americans questioned oils/margarines that claim to lower cholesterol levels.

Organic Foods - They’re Healthier for Us and Our Children

When it comes to another type of healthy food – organic foods – the situation is a bit different.  Around the globe, Organic alternatives are purchased mainly for health reasons. Over two thirds of survey respondents think that organic foods are healthier for them and their children. This healthy perception is consistently strong across Asia Pacific.

Europeans seem to be more conscious of the wider benefits of organic foods, such as protecting the environment. Nearly a fifth think organic foods conserve the environment, and 12 percent cited kindness to animals as the key reason for purchasing organic alternatives. However, in other regions, less than a fifth of consumers are aware of the environmental benefits of organic foods, and even less cited animal protection .

When it comes to barriers to purchasing organic alternatives, high prices are the biggest problem for one third of Internet-users in Asia Pacific and over 40 percent of Europeans and North Americans. Across Latin America and in South Africa, availability is said to be an issue. Interestingly, lack of availability prevails over lack of credibility as a reason for not purchasing organic foods globally.

The general sense among consumers who wouldn’t buy organic products is that they were usually more costly. “There is an opportunity for marketers to find a positioning for foods claiming health benefits to be credible and not prohibitively expensive”, Mr Niles continued.

“Manufacturers and retailers must also understand the geographical differences in terms of acceptance and perception of organic food. For example, in Asia Pacific, perceptions of price of organic foods is more a challenge in eight out of 13 markets studied, while in Thailand and China in particular, credibility turned out to be the major consideration”, Mr Niles added.

Among the variety of organic foods, ‘Eggs’ (32%), ‘Vegetables’ (29%), and ‘Fruits’ (28%) were the most popular food types attract most regular buyers. At the other end of the scale, organic types of beverages, delicatessen and tea products were the least purchased by most consumers around the world.

The global ACNielsen Online Consumer Opinion Survey is a regular syndicated online consumer study, gathering information from regular users of the Internet around the world on their attitudes and preferences, consumption of media, products and services across different markets.   ACNielsen spearheaded the establishment of access pools in the Asia Pacific region six years ago following the acquisition of www.consult.com