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Editor: Lynsey Barker
ISBN: 1-84168-122-9
This report covers: health foods, functional foods, organic foods, vitamins, minerals, supplements, VMS, alternative remedies, sports nutrition, probiotic foods, functional drinks, cholesterol lowering products, multivitamins, fish oils, single vitamins, herbal remedies, aromatherapy products, homeopathic remedies
Companies covered include: The Boots Company, Roche Holding, Nutricia, Holland & Barrett Retail, Seven Seas, W Jordan (Cereals), Peter Black Healthcare, Health & Diet Group, A Nelson & Co, Haldane Foods, GR Lane Health Products, Cambr, Cauldron Foods, Aromatherapy Products, Planet organic, Fresh & Wild, Greenways Natural Food Stores
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The specialist health foods sector has always contained a wide and diverse product range. Over the years, the boundaries between health foods and mainstream foods have become increasingly blurred. The 2000 Key Note report on health foods concentrates on four important, and relatively well-defined, market sectors: functional foods, organic foods, vitamins, minerals and supplements (VMS), and alternative remedies. Each of these categories has a presence within the mainstream manufacturing and retail sectors, as well as the specialist sector.
The total value of sales within the four selected sectors was estimated by Key Note at £1.67bn in 2000, an increase on the 1999 figure. Functional foods represent the largest sector, with organic foods being the most dynamic sector in terms of growth. Internationalisation has been a key feature within a number of health food sectors over the past decade. European and US companies have entered the UK market both in their own right and through acquisitions of UK businesses. This started within the VMS and alternative remedies sectors, and has continued more recently with a number of acquisitions within the organic sector. In addition, a growing number of mainstream food manufacturers are entering the organic foods market, notably Heinz Europe Ltd, Mars UK Ltd and RHM Ltd.
The introduction of functional foods has brought large pharmaceutical companies into the health foods market, including Novartis Ltd with Aviva, and Johnson & Johnson Ltd with Benecol. Distribution within the health foods sector has been characterised, in recent years, by the increasing encroachment of multiple retailers onto territory which has previously been mainly the province of the specialist. Most major supermarkets are now offering a wide range of organic products.
In 2000, J Sainsbury PLC opened its first well-being store within a store, carrying a range of products similar to those traditionally found in specialist health food shops. Within the specialist sector, a number of high-profile specialist organic supermarkets have been established, with ambitious expansion plans; these include Planet Organic Ltd, Fresh & Wild Ltd and Greenways Natural Food Stores. Regulatory issues, particularly those emanating from Europe, continue to cause some uncertainty within the VMS and alternative remedies sectors. A draft European directive on supplements has now been agreed. Furthermore, the Medicines Control Agency (MCA) has been asked by the Government to come up with a discussion document on traditional medicinal products, including herbal remedies, which might form the basis of a European directive on these products.
Key Note estimates that the total market for the four selected product sectors will stand at £3.19bn by 2005. Sales of organic foods will overtake those of functional foods by 2001.
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Executive Summary |
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| INTRODUCTION | |
| MARKET SECTORS | |
| Functional Foods | |
| Organic Foods | |
| Vitamins, Minerals and Supplements | |
| Alternative Remedies | |
| MARKET POSITION | |
| Table 1: The UK Market for Health Foods as a percentage of the Total UK Household Food Market by Value (£m at rsp), 1999-2000 | |
| (£m at rsp), 1999-2000 | |
| MARKET TRENDS | |
| Consumers and Health | |
| Changing Eating Habits | |
| Food Intolerance | |
| Food Safety Issues | |
| Regulatory Issues | |
| Supplier Activity | |
| Retailer Activity | |
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| THE TOTAL MARKET | |
| (£m at rsp and percent), 1999-2000 | |
| BY MARKET SECTOR | |
| Functional Foods | |
| and 2000 | |
| Organic Foods | |
| 1999 and 2000 | |
| Vitamins, Minerals and Supplements | |
| Table 6: The UK Market for Vitamins, Minerals and Supplements by Product Type by Value (£m at rsp), 1999 and 2000 | |
| Alternative Remedies | |
| Product Type by Value (£m at rsp), 1999 and 2000 | |
| A GLOBAL PERSPECTIVE | |
| Functional Foods | |
| Organic Foods | |
| (million and £m), 1998-1999 | |
| Vitamins, Minerals, Supplements and Alternative Remedies | |
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| RECENT HISTORY | |
| INDUSTRY CONCENTRATION | |
| DISTRIBUTION | |
| Retail | |
| Wholesale | |
| Brewhurst Health Food Supplies Ltd | |
| The Health Store Ltd | |
| Nature's Store Ltd | |
| Direct Selling | |
| TRADE ASSOCIATIONS | |
| Health Food Manufacturers' Association | |
| National Association of Health Stores | |
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| THE MARKETPLACE | |
| THEIR BRANDS | |
| Table 9: Selected Leading UK Health Food Companies by Turnover and Pre-Tax Profit (£m), 1997/1998/1999/2000 | |
| The Boots Company PLC | |
| Roche Holding (UK) Ltd | |
| Nutricia Ltd | |
| Holland & Barrett Retail Ltd | |
| Seven Seas Ltd | |
| W Jordan (Cereals) Ltd | |
| Peter Black Healthcare Ltd | |
| Health & Diet Group Ltd | |
| A Nelson & Co. Ltd | |
| Haldane Foods Ltd | |
| GR Lane Health Products Ltd | |
| Cambr Ltd | |
| Cauldron Foods Ltd | |
| Aromatherapy Products Ltd | |
| Planet Organic Ltd | |
| Fresh & Wild Ltd | |
| Greenways Natural Food Stores | |
| ADVERTISING AND PROMOTION | |
| Main Media Advertising Expenditure | |
| Ending June 1998-2000 | |
| Vitamin Preparations | |
| Ending June 1999 and 2000 | |
| Slimming Aids and Foods | |
| Table 12: Main Media Advertising Expenditure on Slimming Aids and Foods (£000), Years Ending June 1999 and 2000 | |
| Organic Foods | |
| Ended June 2000 | |
| Recent Advertising Campaigns | |
| Other Recent Marketing Activity | |
| Advertising Standards | |
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| STRENGTHS | |
| WEAKNESSES | |
| OPPORTUNITIES | |
| THREATS | |
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| CONSUMER PENETRATION | |
| and Other Supplements | |
| ( percent of adults), 1996-2000 | |
| By Sex | |
| By Age | |
| By Social Grade | |
| By Region | |
| ( percent of adults), 1999 and 2000 | |
| By Sex and Age Group | |
| 2000 | |
| By Frequency of Use | |
| these products), 1998-2000 | |
| By Type of Product | |
| 1999 and 2000 | |
| Slimming Foods | |
| Table 19: Penetration of Usage of Slimming Foods ( percent of adults), 1997-2000 | |
| By Sex | |
| By Age | |
| By Social Grade | |
| By Region | |
| Region ( percent of adults), 1998-2000 | |
| By Frequency of Use | |
| Table 21: Frequency of Usage of Slimming Foods ( percent of adults who ever use these products), 1999 and 2000 | |
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| ORGANIC FARMING | |
| and April 1999 | |
| Table 23: Number of Registered Organic Producers, 1997-1999 | |
| FOOD SUPPLY | |
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| ISSUES | |
| Food Supplements | |
| Herbal Medicines | |
| St Johns Wort | |
| Nandrolone | |
| FUNCTIONAL FOODS | |
| ORGANIC FOODS | |
| CORPORATE ACTIVITY | |
| Horizon Organic Dairy | |
| The Organic Herb Trading Company | |
| Ultrapharm Ltd | |
| Kallo Group Ltd | |
| AND LAUNCHES | |
| Food Products | |
| Supplements and Remedies | |
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| FORECASTS 2001 TO 2005 | |
| Table 24: The Forecast Total UK Market for Selected Health Foods by Sector by Value, 2001-2005 (£m at rsp) | |
| 2001-2005 | |
| MAINSTREAM SUPPLIERS VERSUS SPECIALIST SUPPLIERS | |
| MAINSTREAM RETAILERS VERSUS SPECIALIST RETAILERS | |
| FUNCTIONAL FOODS | |
| ORGANIC SUPPLY | |
| HERBAL MEDICINES | |
| ONLINE RETAILING | |
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| A Nelson & Co. Ltd | |
| The Boots Company PLC | |
| Cauldron Foods Ltd | |
| GR Lane Health Products Ltd | |
| Haldane Foods Ltd | |
| Health & Diet Group Ltd | |
| Holland & Barrett Retail Ltd | |
| Nutricia Ltd | |
| Peter Black Healthcare Ltd | |
| Seven Seas Ltd | |
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| Associations | |
| Periodicals | |
| Directories | |
| General Sources | |
| Bonnier Information Sources | |
| Government Publications | |
| Other Sources | |
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Understanding TGI Data |
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| Number, Profile, Penetration | |
| Social Grade | |
| Standard Region | |
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Key Note Research |
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Text © 2000 Key Note
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© 2000 www.the-list.co.uk Ariadne
Last updated by Jacob van Eldik 19th November 2000