The U.S. Market For Healthy Prepared Foods

Feb 1, 1999
219 Pages - Pub ID: LA517
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  1. Executive Summary
    Products
      Congressional Initiatives Open Doors
      Food Nutrition Labels
      NLEA Allows Nine Health Claims
      Healthy Prepared Foods Address Dietary Needs of U.S. Consumers
      Government Standards Provide Good Starting Point
      The Case Against Sugar
      Healthy Prepared vs. Nutraceuticals and Functional Foods
    The Market
      Market at $5.4 Billion
      Growth by Product Segment
      Cereals Still Almost Half the Market
      Factors to Market Growth
      Retail Sales to Approach $7 Billion in 2003
      Table 1-1: U.S. Retail Sales of Healthy Prepared Foods by Product Segment, 1993-2003 (dollars): Cereals, Juices, Bread, Yogurt, Cereal/Snack Bars
    The Marketers
      General Mills, Kellogg Vie for Overall Lead
      Sunny Delight the Best-Selling Product
      Shift from "No/Low" to Positive Product Claims?
      Calcium Still Going Strong
      Growing Use of Herbal Ingredients
      Cereal Marketers, Led by Kellogg, Are Biggest Spenders
    Distribution, Retail, and the Consumer
      Distribution Channels
      Supermarkets Lead in Retail Sales
      Figure 1-1: U.S. Sales of Healthy Prepared Foods by Retail Channel, 1998 (percent): Supermarkets, Health and Natural Food Stores, Mass Merchandisers, Grocery Stores, Other
      Supermarkets Expand Selection
      Natural Food Stores Not Necessarily Hospitable to Healthy Prepared Foods
      Kellogg's: Overall vs. Healthier Products
      Tropicana Pure Premium and Season's Best: Overall vs. Fortified
      Bread: Whole Grain, Fiber, and Oat Bran
      Regular vs. Light/Sugar-Free Yogurt
    Scope and Methodology
      Market Parameters
      Report Methodology

  2. The Products
    Market Definition
      Scope of Report
      Main Product Segments
      Retail Focus
    Historical and Regulatory Overview
      Discovery of Vitamins Draws Attention to Nutrition
      Food Fortification Begins in 1930s
      Government Involvement Begins
      Food Fortification Flourishes After World War II
      Procter & Gamble Overcomes Absorption Issue
      Other Major Marketers Step In
      Congressional Initiatives Open Doors
      Food Nutrition Labels
      Nutrients Declared as Both Absolute Values and % of Daily Values
      NLEA Defines Terms Describing Nutrient Content
      NLEA Allows Nine Health Claims
      Foods Claiming Benefits Must Be Healthy by FDA Standards
    Product Criteria
      Healthy Prepared Foods Address Dietary Needs of U.S. Consumers
      Government Standards Provide Good Starting Point
      The Case Against Sugar
      Healthy Prepared vs. Nutraceuticals and Functional Foods
    Dietary Components to Maximize
      Vitamin A
      Carotenoids
      Folic Acid (Folate)
      Vitamin C
      Vitamin E
      Calcium
      Iron
      Dietary Fiber
      Protein
    Dietary Components to Minimize
      Fat
      Cholesterol
      "Good" Cholesterol and "Bad" Cholesterol
      Sodium
      Sugar

  3. The Market
      Figure 3-1: U.S. Retail Sales of Healthy Prepared Foods, 1993-1998 (dollars)
    Market Size and Growth
      Arriving at Sales Estimates
      Packaged Facts Methodology
      Market at $5.4 Billion
      Table 3-1: U.S. Retail Sales of Healthy Prepared Foods, 1993-1998 (dollars)
      Healthy Cereals a Casualty of More Convenient Breakfast Options
      Juice Marketers Capitalize on Interest in Healthy Eating
      Competing Products Slow Bread Sales
      Table 3-2a: U.S. Retail Sales of Healthy Prepared Foods by Product Segment, 1993-1995 (dollars): Cereals, Juices, Bread, Yogurt, Cereal/Snack Bars
      Table 3-2b: U.S. Retail Sales of Healthy Prepared Foods by Product Segment, 1995-1998 (dollars): Cereals, Juices, Bread, Yogurt, Cereal/Snack Bars
      New Products Keep Yogurt Sales Healthy
      Cereal/Snack Bars Segment Has Been Most Dynamic
    Market Composition
      Cereals Still Almost Half the Market
      Figure 3-2: The U.S. Healthy Prepared Foods Market: Share of Dollar Sales by Product Segment, 1993 vs. 1998 (percent): Cereals, Juices, Bread, Yogurt, Cereal/Snack Bars
      Vitamins Lead Nutrients
      Calcium Strongest Mineral in Healthy Prepared Foods
      Herbals and Botanicals Strong in Juices/Beverages Segment
      Supermarkets Lead in Retail Sales
      Figure 3-3: U.S. Sales of Healthy Prepared Foods by Retail Channel, 1998 (percent): Supermarkets, Health and Natural Food Stores, Mass Merchandisers, Grocery Stores, Other Market Skews North
      Table 3-3: The Market for Healthy Prepared Foods: Regional Demographics by Preferred Product Type/Brand/Variety, 1998 (U.S. Adults)
    Factors to Market Growth
      Prevention and Self-Care Trend
      Consumers Prefer Getting Nutrients in Foods
      Widespread Draw of Market
      Table 3-4: The Market for Healthy Prepared Foods: Age Demographics by Preferred Product Type/Brand/Variety, 1998 (U.S. Adults)
      The Graying of America
      Table 3-5: Projections of U.S. Households by Age of Householder, 1998-2003 (number and percent): From Age Under 25 to Age 75 and Older
      Baby Boomers Resist Aging Process
      Government Studies Spotlight Dietary Deficiencies
      Many Sources Counsel Consumers to Eat Wisely
      Marketers Aid Clinical Studies
      The Full-Line Effect
      Influences from Abroad
      Market Entry Is Expensive
      5-A-Day Program, Supplements May Inhibit Market Growth
      The Snake Oil Factor
      Figure 3-4: Projected U.S. Retail Sales of Healthy Prepared Foods, 1998-2003 (dollars)
    Projected Market Growth
      Retail Sales to Approach $7 Billion in 2003
      Table 3-6: Projected U.S. Retail Sales of Healthy Prepared Foods, 1998-2003 (dollars)
      Turnaround in Cereal Sales
      Table 3-7a: Projected U.S. Retail Sales of Healthy Prepared Foods by Product Segment, 1998-2000 (dollars): Cereals, Juices, Bread, Yogurt, Cereal/Snack Bars
      Table 3-7b: Projected U.S. Retail Sales of Healthy Prepared Foods by Product Segment, 2000-2003 (dollars): Cereals, Juices, Bread, Yogurt, Cereal/Snack Bars

  4. The Marketers
    Marketer Overview
      Marketers Relatively Few, But Varied
      Established Prepared Foods Marketers Dominate
      Some Start-Ups Focus on Healthy Prepared Foods
      Retailers as Marketers
      Table 4-1: Selected U.S. Marketers of Healthy Prepared Foods: By Brand and Product Segment (52 Marketers)
    The Competitive Situation
      Cereal and Cereal/Snack Bars Marketers
      Fruit and Vegetable Juice Marketers
      Bread Marketers
      Yogurt Marketers
      General Mills, Kellogg Vie for Overall Lead
      Table 4-2: Top U.S. Marketers of Healthy Prepared Foods by Dollar Share (percent): 11 Marketers
      Sunny Delight the Best-Selling Product
      Table 4-3: Top Healthy Prepared Foods Brands/Products by Dollar Share (percent): 11 Brands/Products
      Competition Keenest in Cereal Segment
      Success May Be Hardest for Healthful Cereals
      Cereal Sales Flattened by Rivals
      Heavy Ad Spending Reflects Level of Competition
      Real Juice as Selling Point
      Orchards and Dairies as Juice Marketers
      Coke vs. Pepsi: A New Front
      Juices as Fountains of Nutrition
      Turf Wars in Bread Market
      Bakers Expand the Old-Fashioned Way
      Ad Spending Reflects Limited Competition over Bread Product
      Yogurt from Pittsburgh to Paris
    Competitive Profile: Bestfoods
      Number-Two Bread Marketer
      Bleak Picture for More Healthful Breads?
      Entenmann's Cereal Bars a Hit
    Competitive Profile: Campbell Soup Co.
      Competes in Bread and Juice Segments
      Develops More Healthful Varieties of V8
      V8 Splash Is Campbell's Launch of the Decade
      Creates Campbell Center for Nutrition & Wellness
      Pepperidge Farm Is Second-Leading Brand of Bread
    Competitive Profile: Coca-Cola Co.
      Largest Marketer of Juices and Juice Drinks Overall
      Minute Maid Is Coca-Cola's Leading Juice Brand
      Launches Fortified Minute Maid Premium Orange Tangerine
      Minute Maid Boosts Ad Spending, Pursues Global Market
    Competitive Profile: Dannon Co., Inc
      Number One in Yogurt
      Light Varieties Account for One-Third of Sales
    Competitive Profile: Earthgrains Co.
      Third-Place Bread Marketer
      Acquisitions Mark Fiscal 1998
    Competitive Profile: Flowers Industries, Inc
      Number-Four Bread Marketer Growing and Diversifying
      Product Lines and Distribution
      Nature's Own as More Nutritious Bread
    Competitive Profile: General Mills, Inc
      Leading Marketer of Healthy Prepared Foods
      A Sequence of Cereals
      Cheerios Has Banner Year
      Clinical Study Feeds Ad Campaign
      Total Has Been Standard Bearer for Healthfulness
      Yogurt and Snack Bar Businesses Booming
      General Mills Expands Worldwide
    Competitive Profile: Interstate Bakeries Corp.
      History of Steady Growth for Wonder Bread Marketer
      Acquisitions Lead to Number One Rank
      The Wonder Bread Acquisition
      Brand Building Through Advertising
      Acquisitions Continue
    Competitive Profile: Kellogg Co
      Leading Cereal Marketer Is Second in Healthy Prepared Foods
      Despite Strong Brands, Cereal Sales Decline
      Kellogg Strongly Committed to Healthy Prepared Foods
      Introductions of Healthy Products Continue Apace
      Price Modulations on Cereal Brands
    Competitive Profile: Kraft Foods, Inc. (Philip Morris Cos., Inc.)
      Largest Packaged Food Marketer
      Cereal Price Wars, Declining Sales Hit Post Business
      New Cereals Drive Strong Volume Gain in 1998
    Competitive Profile: Nabisco Holdings Corp
      Another Food/Tobacco Marriage
      SnackWell's Brand Extended to Yogurt, Cereal Bars
      Boosting Fat Content to Improve Taste, Revive Sales
      Nabisco Still Bullish on Healthy Prepared Foods
      Positions Cream of Wheat as Most Indulgent Hot Cereal
    Competitive Profile: Odwalla, Inc.
      Odwalla Leads in Fresh-Squeezed, Fortified Juices
      Freshness Is Major Selling Point
      Odwalla Products Implicated in E. Coli Outbreak
      Odwalla Nutritionals Combine Vitamins, Minerals, Herbals
      Energy Bar Is First Non-Beverage Product
      First Fresh Juice Brand to Span the Country
    Competitive Profile: PepsiCo, Inc.
      Leading Beverage and Snack Food Marketer
      PepsiCo Acquires Tropicana Dole for $3.3 Billion
      Tropicana Dole Is World's Largest Juice Marketer
      Launches First Fortified Not-from-Concentrate Orange Juices
      Revamps Fortified Lineup
      Bullish on Vitamin E and Folate
      Tropicana Pure Premium Is Top Refrigerated Orange Juice
      PepsiCo Launches FruitWorks Beverage Line
    Competitive Profile: Procter & Gamble Co
      Competes Worldwide in Five Product Sectors
      A Research Pioneer in Healthier Foods
      Develops Calcium Delivery System for Non-Dairy Beverages
      Uses FruitCal in Sunny Delight Fruit Drink Brand
      Sunny Delight Owns Half of Refrigerated Fruit Drink Segment
    Competitive Profile: Quaker Oats Co
      Leads in Hot Cereals, Gaining in Cold Cereals
      Snapple Acquisition a Costly Mistake
      Cold Cereals and Cereal Bars Enjoy Sales Gains
      Quaker Follows General Mills in Raising Cereal Prices
      Oatmeal Sales Benefit from First-Ever Food-Specific Health Claim
      Challenges Consumers to Lower Cholesterol with Oatmeal
      Launches Cereal Bar Line to Compete with Kellogg's Nutri-Grain
    Marketing and New Product Trends
      Cereal Marketers Stress Health Benefits
      Getting FDA Approval for Health Claims
      Juice Marketers Also Tout Product Healthfulness
      Bread Marketers and the Food Guide Pyramid
      Associating Products with Athletics or Fitness
      Shift from "No/Low" to Positive Product Claims?
      Energy Bar Introductions Abound
      Tailoring Energy Bars for a Mainstream Audience
      Calcium Still Going Strong
      Growing Use of Herbal Ingredients
      Cereal Packaging: Convenience vs. Eco-Consciousness
      Table 4-4: The U.S. Healthy Prepared Foods Market: Selected New Product Introductions and Line Extensions, 1998 (36 Marketers)
    Consumer Advertising and Promotion
      Cereal Marketers, Led by Kellogg, Are Biggest Spenders
      Cheerios Paces General Mills' Increased Spending
      Healthier Entries Pace Spending by Post and Quaker
      Spending by Juice Marketers Is Hard to Differentiate
      Bread Marketers' Ad Spending Is Light
      Ad Outlays on Yogurt Reflect Dannon-General Mills Duel
      Health Claims Prominent in Kellogg Ads
      Quaker and General Mills Ads Focus on Benefits to the Heart
      Use of American Heart Association Logo
      Other Ads Tout Cereal as Part of Healthy Lifestyle
      Natural Is Healthier
      Calcium as Advertising Buzzword
      Taste Message Reinforced
      Cereal as Better Tasting Than Other Nutritious Foods
      Procter & Gamble's Sunny Delight Keeps Winning Campaign
      Tropicana Appeals in Two Ways
      Promotions Standard for Healthy Prepared Foods Market
      800 Numbers, Websites Routinely Used
      Use of Sampling
      Examples of Consumer Advertising and Promotion
    Trade Advertising and Promotion
      Venues for Trade Advertising
      Products on Parade
      Promotions Are Standard
      Trade Allowances and Deals

  5. Distribution, Retail and Consumer
    At the Distribution Level
      Distribution Follows Standard Channels
      Regional Distribution
      Distributors vs. Direct Distribution
      Warehousing vs. Direct Store Delivery
      Advantages of Warehouse Delivery
      Disadvantages of Warehouse Delivery
      Advantages of Direct Store Delivery
      Disadvantages of Direct Store Delivery
      Working Through Brokers
      Specialized Distributors for Health and Natural Food Retailers
      Distributor Margins
    At the Retail Level
      Supermarkets Lead in Retail Sales
      Figure 5-1: Supermarket Share of Healthy Prepared Food Sales, 1998 (percent)
      Supermarkets Expand Selection
      Supercenters Grow in Number
      Wal-Mart May Become Largest U.S. Food Retailer
      Limited Selection in Warehouse Clubs
      Natural Food Stores Not Necessarily Hospitable to Healthy Prepared Foods
      Most Healthy Prepared Line Extensions Priced at Parity
      Healthy Prepared Foods Share the Aisles
      Healthy Prepared Varieties Get 15% or More of Display Space
      The Status of Private Label
    At the Consumer Level
      Notes on Simmons Market Research Bureau Data
      Simmons Data on Healthy Prepared Foods
      Table 5-1: The Market for Healthy Prepared Foods: User Overview by Preferred Product Type/Brand/Variety, 1998 (U.S. Adults): 5 Product Types and 8 Brands
    Consumer Focus: Breakfast Cereals
      Kellogg's: Overall vs. Healthier Products
      General Mills: Healthier Products
      Quaker Oats Hot Cereal
      Table 5-2a: Demographic Characteristics Favoring Use of Kellogg's Cereals by Type: Any Kellogg's vs. Frosted Mini-Wheats, 1998 (U.S. Adults)
      Table 5-2b: Demographic Characteristics Favoring Use of Kellogg's Cereals by Type: Special K vs. Bran Flakes, 1998 (U.S. Adults)
      Table 5-3a: Demographic Characteristics Favoring Use of General Mills Cereals by Type: Cheerios vs. Multi-Grain Cheerios, 1998 (U.S.
      Adults)
      Table 5-3b: Demographic Characteristics Favoring Use of General Mills Cereals by Type: Wheaties vs. Total, 1998 (U.S. Adults)
      Table 5-4: Demographic Characteristics Favoring Use of Quaker Oats Hot Cereals, 1998 (U.S. Adults)
    Consumer Focus: Orange Juice
      Tropicana Pure Premium and Season's Best: Overall vs. Fortified
      Minute Maid: Overall vs. Fortified
      Minute Maid Frozen Concentrate: Overall vs. Fortified
      Table 5-5: Demographic Characteristics Favoring Use of Tropicana Pure Premium Orange Juice by Type, 1998 (U.S. Adults): Any, With Calcium, With Vitamins
      Table 5-6: Demographic Characteristics Favoring Use of Tropicana Season's Best Orange Juice by Type, 1998 (U.S. Adults): Any, With Calcium, With Vitamins
      Table 5-7: Demographic Characteristics Favoring Use of Minute Maid Orange Juice by Type: Any Minute Maid vs. Minute Maid With Calcium, 1998 (U.S. Adults)
      Table 5-8: Demographic Characteristics Favoring Use of Minute Maid Frozen Orange Juice Concentrate by Type: Any Minute Maid vs. Minute Maid With Calcium, 1998 (U.S. Adults)
    Consumer Focus: Bread
      White Bread vs. Whole Wheat
      Whole Grain, Fiber, and Oat Bran
      Table 5-9a: Demographic Characteristics Favoring Use of Bread by Type: White vs. Whole Wheat, 1998 (U.S. Adults)
      Table 5-9b: Demographic Characteristics Favoring Use of Bread by Type, 1998 (U.S. Adults): Whole Grain, Fiber/High Fiber, Oat/Oat Bran
    Consumer Focus: Yogurt
      Regular vs. Light/Sugar-Free Yogurt
      Dannon vs. Dannon Light
      Yoplait vs. Yoplait Light
      Table 5-10: Demographic Characteristics Favoring Use of Yogurt by Type: Regular vs. Light/Sugar-Free, 1998 (U.S. Adults)
      Table 5-11: Demographic Characteristics Favoring Use of Dannon Yogurt by Type: Any Dannon vs. Dannon Light, 1998 (U.S. Adults)
      Table 5-12: Demographic Characteristics Favoring Use of Yoplait Yogurt by Type: Any Yoplait vs. Yoplait Light, 1998 (U.S. Adults)

    Appendix I: Advertisements. This appendix appears in bound editions only.
    Appendix II: Addresses of Selected Marketers
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