Development of Low-Fat Sugar-Free Products - Assignment Example

Marketing Research Executive Summary Low fat and reduced sugar foods have been gaining market in the recent years. This trend has been observed to begrowing in an immense manner. A market research is conducted to determine the major consciousness of health options in relation to taste and preferences of the UK consumers based on secondary sources. It is observed that the demand for the low fat food products have augmented significantly. Moreover, the consumption trend of the consumers has shifted from the taste factors towards the health value of the foods. The downwards trend of intake of saturated fats irrespective of low prices has been largely observed as the changing consumer behaviour towards low fat foods. Table of Contents Executive Summary 1 Introduction 3 Discussion 3 Major Trends of Market 3 Government Norms 4 Consumption Pattern 5 Present Market for the Low-Fat Foods 7 Market Trend of the UK Food Production Industry 8 Conclusion and Reccomendation 9 10 References 11 Introduction The recent trend to consume low fat or sugar-free products has been largely observed among the consumers. The interest of the consumers to eat healthy foods is a passing craze among the majority of the population globally. Product appraisal is an effective measure of identifying the specific sensory attributes that are associated with new products introduced in the market segments in order to satisfy consumers and meet their products’ expectation (Walker, 2002). Based on the extensive role of the carbohydrates in human nutrition, the health professionals have been recommending a reduction of the total intake of fat foods. Moreover, the present fad of calorie control in order to reduce the chances of obesity has been acting as a catalyst to increase the sale of products with low fat contents (Lauritzen, n.d.). The assignment elaborates on market research and market trends following a detailed analysis of the secondary sources in relation to the recent trend of consumers in opting for low-fat products in the UK market segments. Depending on the analysis of the UK market, figures and trends related to the subject topic are detailed on the basis of development of market and product mix. The report collected would help the market researcher in making efficient decisions based on which appropriate recommendations are made for effective business performances on a long-term and short-term basis. Discussion Major Trends of Market The market researcher of the marketing department of a UK supermarket chain has conducted a secondary research with the aim of obtaining adequate information about product mix that are demanded in the UK market segments. The recent trend of the UK market suggests a huge shift in the tastes and the preferences of the consumer in relation to health diets and low fat products. The shift in the general trend of consumption depicts an impending need of re-designing the products in order to improve customer satisfaction. As the consumers have shifted towards food products that provide an overall balance of ingredients, the management of the marketing department of a UK supermarket chain has also planned to develop necessary changes in order to satisfy the elated need of the consumers in the UK market segments (Key Note Limited, 2008). The major food manufacturers are identified to adopt the new trends of consumer behaviours to produce low fat and reduced sugar products in their chain of production. According to the report of the Institute of Food Technologists (2014), more than 50% of the consumers are interested in products with reduced level of sugar content food products. Moreover, parallel to the above trend, the major preferences of the consumers’ are recognised in the taste of the food followed by the characteristic of appetite satisfaction. This phenomenon suggests the food producers are required to keep in mind the taste preferences of the consumers along with the health requirements while, deciding to develop new products (Institute of Food Technologists, 2014). The recent market strategies suggest that the recent market growth of the sale of healthy food is observed to be increasing in the recent years. The increase in the number of adults inclining towards calorie control and healthy products has raised the impending need of health quality of food products (Figure 1). Figure 1: Calorie Control Among Adults Source: (Slideshare, 2013) Government Norms The fat taxes imposed by the government have increased the price of the foods having fat contents accountable for increased obesity. This in turn increased consciousness amid consumers towards food products having low fat contents. The increase in the prices of high fat products has led to the increase in demand for products with lower content of fat. Moreover, the survey suggests that strict norms of the UK government to reduce obesity by charging higher tax rates has imposed a positive effect on the growth of food products having low fat contents. The implementation of fat taxes has also led to a major trend of development low fat contents and healthy products (Maniadakis & et.al., 2013; Leicester & Windmeijer, n.d.). Increase of the consciousness among the population about the health issues that can be caused by obesity or overweight has been a major reason for increased consumption of healthy products (Maniadakis & et. al., 2013). Consumption Pattern The new trend of consuming low fat products and beverages has acted as a reagent to increase the need of the development of new products that could meet the elated taste and preferences of the consumers. According to the report published by the Innova Market Insights, the low calorie or the reduced-sugar products constituted of around a quarter of the new products launched in the UK market (Langley, 2013). The major trend of the UK market has been observed to be reflecting the increased trend of the consumer to consume healthy foods. The figure below suggests that the growth of the consumers intake healthy foods has been increasing at a stable high rate (Figure 2). Moreover, the recent market trend implied that the demand for the low fat food products has augmented as compared to products with fatty acid content (Food Standards Agency, 2013). The declining trend in the consumption soft drinks depicted that the trend of low fat beverages has increased amid UK consumers. Moreover, the trend even details out the preferences of the consumers relating to intake of beverages that has less saturated fats (Figure 3). Figure 2: Share of British adults who "try to eat foods that are low in fat" in Great Britain from 2005 to 2013 Source: (The Statistics Portal, 2013) Figure 3: Reducing Trend Of Consumption Of Fatty Acid Sources: (Food Standards Agency, 2013) Present Market for the Low-Fat Foods The overall consumption pattern of the UK market and consumer behaviour suggests a trend of increasing demand for low fat foods. This has elaborately been observed from an increase in consumption of foods that has healthy or low fat contents (Figure 3). The recent spread of consciousness among the consumers about the health benefits associated with low fat products has raised the demand for healthy foods. In this respect, a positive trend has been observed towards the consumption of low fat foods in the UK market segments (British Soft Drinks Association, 2012). The raising health issues with regard to obesity have motivated the UK government to implement fat policies with the intention of declining the consumption of foods containing fatty acid and saturated fat. The phenomenon and the government intervention have been observed to have a positive effect on the growth of the market for low fat foods. Figure 4: Recent trend of Soft Drink Consumption Sources: (British Soft Drinks Association, 2012). Figure 5: UK Trends In Intakes Of Fat, Saturated Fatty Acids Sources: (Department for Environment, Food and Rural Affairs, 2012) Market Trend of the UK Food Production Industry The UK food production industry is the largest manufacturing sector having a turnover of £92bn, which also accounts around 18% of the total turnover of the manufacturing department. An increase in the trend and consumer behaviour for low fat foods, the manufacturers have also been planning to make maximum benefits by increasing the production of the low fat food sectors. The value added segment has been broadly observed to be in growth of healthier dairy products, deserts and even ice creams (Weston, 2014). Moreover, the tastes and the preferences of consumer has been a major determining factor of designing new products based on the present requirement of consumers in the UK market segments. The taste and the preferences of the consumer tend to be more for healthy and low calorie products for better health sustainability. The data displayed in the figure below represent the trends of the health option to be ranked second in the rating based on consumers’ preferences of products (Figure 6). Figure 6: Factors Influencing Consumer Product Choice Source: (Department for Environment, Food and Rural Affairs, 2012) Conclusion and Reccomendation It can be comprehended from the information or data based on secondary sources that consumer behaviour and market trends of the UK market segments have changed significantly. Based on the observations, it has been identified that with the increase in health consciousness of the population, the market for low food and reduced sugar products has increased in the short term period. In addition, a sustainable growth in the market for low fat foods signified that the consumers are more concerned about health diets and food intake. A detailed study of the changes in the taste and the preference of the consumers are observed with the intention of ensuring that business operations are conducted with better success and growth prospects. In this respect, the market research conducted on the basis of secondary data reflects a positive trend in the UK market for the development of product having low fat and reduced sugar contents. The market researcher based on the observation of findings of the secondary sources has an effective understanding of the present market trends in relation to low fat products and preferences of customers. In this context, the management of marketing department of a UK supermarket chain should provide a better product mix of low fat products for sustainable business operations. In the long term, the management should adopt products with low fat ingredients and effective promotional activities to create a better awareness amid the advantages of the product mix provided (Food and Rural Affairs, 2012). References British Soft Drinks Association. (2012). Long-term commitment for long-term success. UK Soft Drinks Report, pp. 1-24. Department for Environment, Food and Rural Affairs. (2012). Fat foods. Food Statistics Pocketbook 2012, pp. 1-50. Food Standards Agency. (2013). Safer food for the nation. Annual Report of the Chief Scientist 2012/13, pp. 1-75. Key Note Limited. (2008). Low-fat & reduced-sugar foods [online]. United Kingdom: Press Release [Accessed 14July 2014]. Available at: Institute of Food Technologists. (2008). Consumers looking for reduced sugar and salt in food products more than low- and no-fat [online]. Chicago: News Releases [Accessed 14July 2014]. Available at: Langley, S. (2013). Lower-sugar soft drinks are a new trend [online]. Australia: Australian Food News [Accessed 14July 2014]. Available at: Lauritzen, G. C. (No Date). Reduced sugar and sugar-free food preservation. U.S. Department of Agriculture, pp. 1-12. LaRosa, J. (2014). The U. S. self-improvement market - overview & forecasts. [online]. United Kingdom: LinkedIn Corporation [Accessed 14July 2014]. Available at: Leicester, A., and Windmeijer, F. (No Date). The fat tax: economic incentives to reduce obesity. The Institute for Fiscal Studies, 49, pp. 1-20. The Statistics Portal. (2013). Trend in adults choosing low fat foods in Great Britain 2005-2013 [online]. United Kingdom: Food & Nutrition [Accessed 14July 2014]. Available at: Walker, J. A. (2002). Development of Low-Fat Sugar-Free Orange Sherbet Containing Soy Protein. The Department of Food Science, pp. 1-30. Weston, S. (2014). Ingredient Trends in the Low-Calorie Dairy Market [online]. United Kingdom: FoodBev Media [Accessed 14July 2014]. Available at: Read More