Dr. Athanasios Krystallis Associate Professor, MAPP Plant sterols: Consumer attitudes and preferences
Dr. Athanasios KrystallisAssociate Professor, MAPP
Plant sterols:Consumer attitudes and preferences
Plant sterol (PS) food products
OverviewProducts which lower cholesterol by inhibiting cholesterol
absorption. They are relatively newCommercially available in Finland since 1995
Not rolled-out internationally until 1999, when Benecol and Pro-Activ spreads launched
Initially shown good growth, aided by effective marketing and consumer concern over heart health
PS products remain a niche, due to the relatively narrow focus on a medical complain and on a restricted consumer base
Plant sterols: consumer attitudes and preferences
Plant sterols: consumer attitudes and preferences
Sales value by functionality type, %(source: adapted from Euromonitor data, 2004)
6,1
2,1
0
5
10
15
20
25
30
35
40
45
50
For sports orenergy
Lowerscholesterol
Promotesintestinal healthand/or digestion
Added calcium Added vitamins,mineral or
supplements
Other
199820032008
NOTE: forecast value for 2008
World PS market
Main market characteristics:Functional food and beverages (FFB) is a dynamic market: +40% in value sales between 2003-08 (Euromonitor, 04, 2008 value sales forecasted)
PS belong to the cholesterol-lowering functional area, which constitutes a key growth area in the wider category
PS-based FFB are mainly dairy (and fat) spreads
Main market for plant sterol spreads is W. Europe
Plant sterols: consumer attitudes and preferences
Plant sterols: consumer attitudes and preferences
Plant sterol products per country, 2008(source: adapted from Mintel, 2008)
0
5
10
15
20
25
30
35
40
USA
Italy
Finla
nd UKNeth
erlan
ds
Germ
any
Fran
ce
Russia
Japa
n
Irelan
d
DairySnacksBakerySugar & Gum ConfectioneryChocolate ConfectioneryDesserts & Ice CreamSide DishesSauces & SeasoningsBreakfast CerealsProcessed Fish, Meat & Egg Products
355 PS products in 10 main markets
Plant sterols: consumer attitudes and preferences
Plant sterol product launches per country, total 2002-October 08(source: adapted from Mintel, 2008)
912
5
20
11
64
2 1
39
3335
9
2 2 2
22
39
22
57
35
9
31
7
16
27
2
16 15
47
1
38
77
10
10
20
30
40
50
60
70
80
90Ar
gent
ina
Aust
ralia
Aus
tria
Belg
ium
Cana
daCh
ileC
hina
Czec
h Re
publ
icDe
nmar
kFi
nlan
dFr
ance
Ger
man
yG
reec
eHo
ng K
ong
Hung
ary
Indi
aIr
elan
dIta
lyJa
pan
Mal
aysi
aM
exic
oNe
ther
land
sNe
w Z
eala
ndNo
rway
Phili
ppin
esP
olan
dPo
rtug
alRu
ssia
Sout
h A
frica
Spa
inS
wed
enSw
itzer
land
Taiw
anTu
rkey UK USA
Viet
nam
546 PS products in 37 countries
Plant sterols: consumer attitudes and preferences
Trend of plant sterol product launches per category and year, 2002-October 08(source: adapted from Mintel, 2008)
26
56
78
100
109
93
84
0
20
40
60
80
100
120
2002 2003 2004 2005 2006 2007 2008
Baby FoodBakeryBreakfast CerealsChocolate ConfectioneryDairyDesserts & Ice CreamFruit & VegetablesMeals & Meal CentersProcessed Fish, Meat & Egg ProductsSauces & SeasoningsSavoury SpreadsSide DishesSnacksSoupSugar & Gum ConfectionerySweeteners & SugarTotal Sample
546 PS products in 16 categories
Key-players:PS food producing companies:
Unilever Group (spreads), but just over 1.5% of all FFB market value share (Euromonitor)
Kao Corp. (PS oils), and Raisio Group (specialists in PSs)Danone Group (PS dairy)
PS ingredient companies:Raisio (Benecol)ADM (Archer Daniels Midland) – supplier of many functional ingredients including PSs (believed to be supplier of Unilever)Forbes Medi-Tech – leader player in PSs (Reducol, approved GRAS status in 2000)Teriaka (Diminicol)
Plant sterols: consumer attitudes and preferences
Key strategies:Successful PS products tend to have a fairly mainstream positioning.− Marketed through mass-market channels
(e.g. 5% of 2002-08 launches under private labels, Mintel, 2008)
− Produced by well-known food companies− Or being extensions of well-known brands
However, PS success came with some penalties:− PS spreads were initially priced at a premium of
around 5-times the standard price (!)− Initial too narrow focus on only people who
suffer from high cholesterol levels
Plant sterols: consumer attitudes and preferences
0,00%
100,00%
200,00%
300,00%
400,00%
500,00%
600,00%
700,00%
800,00%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Quad‐weeks (1=launch quad‐week)
Inde
x sa
les va
lue (100
= sales
value
1 qua
d‐wee
k from
laun
ch)
Becel Pro-Activ family sales value, top-5 EU and US markets 2-year period after launch (index numbers, 100=month 1)
(source: adapted from Mintel, 2008)
Plant sterols: consumer attitudes and preferences
Market prospects:PS spreads still have great potential in the US market, where consumers are particularly worried about their cholesterol levels
New applications of PS emerge in all markets, slowly substituting the dominance of PS dairy and oils; e.g:− Raisio created a range of new foods containing its
core ingredient, Benecol, from single-dose bottles (“little bottles”) to chocolates, sausages and pasta dishes
− US’s Minute Maid launched PS orange juice(Euromonitor, 2004)
− Other PSs: babyfood, lollipops, mayonnaise, biscuits
Plant sterols: consumer attitudes and preferences
Plant sterols: consumer attitudes and preferences
Number of plant sterol product launches in selected categories, 2004 - October 08
(source: adapted from Mintel, 2008)
1
5
9
8
7
0
1
2
3
4
5
6
7
8
9
10
2004 2005 2006 2007 2008
Baby FoodBakerySauces & SeasoningsSugar & Gum Confectionery
Non-spread PS brand names’ sales value evolution, 2-year period after launch
(source: adapted from Mintel, 2008)
Plant sterols: consumer attitudes and preferences
‐500,00%
0,00%
500,00%
1000,00%
1500,00%
2000,00%
2500,00%
3000,00%
3500,00%
4000,00%
4500,00%
5000,00%
5500,00%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Quad‐weeks (1 = launch quad week)
Inde
x sales va
lue (100
= 1 qua
d wee
k from
laun
ch)
CocoaVia Smart Balance Sultana
Legislation:Far from harmonious, making international roll-out
extremely complex and product launch too costly:Raisio’s Benecol spread’s plant sterol ester had to be approved as GRAS (“generally regarded as safe”) by FDA before the product could be sold (Euromonitor, 2004)
Unilever’s Pro-Activ was the first undergone approval under the EU’s Novel Food Regulation, after objections by many member states. The EU’s Novel Foods Committee requested further clarifications, despite US approval. Pro-Activ finally approved in July 2000 (Euromonitor, 2004)
Benecol is finally approved by EFSA (granted article 14-status about disease-reduction claims) only few days ago (3/11) (www.nutraingredients.com)
Plant sterols: consumer attitudes and preferences
Operating environment
Activity Cost (Euros M)
Research (1996-2000): 15 FTEs 30 Clinical/Safety trials 14 Publications
15-18
Product Development (1996-1999): 3 FTEs Ingredient development and sourcing; product trials
3-4
Post Launch Monitoring (2000-2002): 3 FTEs Design, assessment, careline training, market research, reporting
1-2
Total 19-24
Business costs for bringing Pro-Activ spread into the market:
Plant sterols: consumer attitudes and preferences
Milk/Yoghurt
4
7
6
3
20 Months
Initial Assessment
60 day Assessment
Scientific Opinion
Standing Committee
Launch
Yellow fat spreads
Key :
13
6
10
2
2
Total 33 Months
No
vel
Fo
od
s P
roce
ss
Calendar time for bringing Pro-Activ products into the market:
Danish consumers’ attitudes and preferences
Under the EU FP6’s NOFORISK project (FOOD-CT2001-506387), 3 studies undertaken by MAPP in Denmark, focusing among other products to plant sterols:
Prior to the launch of the 1st PS food in Denmark:Study 1: Qualitative consumer survey: in-depth interviews with 25 consumers [June-September 2004]Study 2: Quantitative consumer survey: 943 consumers [August-September 2005]
After the launch of the 1st PS food in Denmark:Study 3: Experiment: 726 consumers [September 2006]
Plant sterols: consumer attitudes and preferences
Plant sterols: consumer attitudes and preferences
Consumer mental model for phytosterols (source: NOFORISK Deliverable 31, 2004, MAPP)
STUDY 1
Consumers voiced little concern about PS-based novel foods− On average they raised just 1-2 risks or benefits− Issues raised were biased towards benefits
Risks and benefits of PS foods are not something Danish consumers are very concerned about in their daily lives − This holds for other novel foods, even for GM
ones, although perceived as more problematic
Plant sterols: consumer attitudes and preferences
Lessons drawn from the consumer study 1
Neutral strength
Consumer belief strengths, 1=strongly disagree,
7=strongly agree(source: NOFORISK Deliverable
33, 2006, MAPP)
STUDY 2
Plant sterols: consumer attitudes and preferences
Consumer preferences for information delivery channel (source: NOFORISK Deliverable 33, 2006, MAPP)
Plant sterols: consumer attitudes and preferences
On the previous screens, we have shown you three milk brands. Which of them are you most likely to buy? To make your choice, click on the “I choose this product” button below the product.
Then, click “continue”.
Choice screen layout(source: NOFORISK Deliverable 34, 2007, MAPP)
STUDY 3
Plant sterols: consumer attitudes and preferences
Imagine you are in your usual supermarket. The product you see below is the third of three milk brands on the shelf.
If you want to see more details about the product, just move the mouse over the package, and the section you are pointing at will appear in higher resolution.
If you don't want to know more about the product, click "continue".
Product presentation, plant sterols milk(source: NOFORISK Deliverable 34, 2007, MAPP)
Plant sterols: consumer attitudes and preferences
Percentage distribution of information details inspected on the front and the back package
(source: NOFORISK Deliverable 34, 2007, MAPP)
Plant sterols: consumer attitudes and preferences
Percentage of consumers who attended to health-related information (source: NOFORISK Deliverable 34, 2007, MAPP)
Study 2:Specific beliefs about particular aspects of PS foods do not exist in most consumers, at least apart from consumers’ general evaluation schemes (e.g. heuristics) − Not surprising, given the absence of specific
experiences with or knowledge about those productsStudy 3:
But even after launch of the 1st PS product, most consumers are not in any way personally interested in information about the risks and benefits of these foods− Same results with or without clearly indicated price
For the minority that inquired information, the likelihood to choose the PS milk over conventional or organic is higher,− However, this likelihood is not related to the type of
information inquired− Meaning that any inquisition is done out of curiosity
Plant sterols: consumer attitudes and preferences
Lessons drawn from the consumer studies 2 & 3
Overall conclusion
At the world FFB market level, the PS category has substantial growth potential, − when PS products target wider audiences (“life-
related” rather than “death-related” products)− when PS benefit embodied in larger variety of carriers
In Denmark, the PS category is surrounded with lack of personal relevance and indifference, despite the rather positive associations developed in consumers’ perceptions Unwise communication (e.g. trying blatantly to convince about benefits) is likely to yield boomerang effects − i.e. if communication messages contradict pre-
existing consumer attitudes towards technology− Behavioural avoidance reaction and lost of trust in the
communication source“Awakening up” dormant risk associations must be avoided!
Plant sterols: consumer attitudes and preferences
For more information:
Dr. Athanasios Krystallis
ASB/MAPP
email: [email protected]
homepage: http://www.asb.dk/staff/
Tel: 89 48 63 74
Plant sterols: consumer attitudes and preferences