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Low-Carb Lift-Off
The low-carb brands segment has grown from non-existent to $1.1 billion in under two years and a 1% share of total food / beverage sales, according to IRI's latest Times & Trends report - 'Carb-Cutting Shoppers'. An estimated 26m Americans are on a low-carb diet today and some 70m limit their carb intake informally.
'Carb-Cutting Shoppers' is the latest in a series of ongoing studies surrounding health and wellness trends and uses a variety of IRI information sources, including InfoScan(r) Reviews and its new CarbTracker(tm) Service. The report reviews sales trends for three product types: naturally low-carb product categories (grouped with 'no/low/reduced sugar' categories like bottled water and diet soft drinks); reduced-carb brands from specialty manufacturers like Atkins; and reduced-carb brands from leading food/beverage manufacturers.
For the 52 weeks ending 6/13/04, sales of naturally low-carb product categories were up +5.8% versus a year ago, outpacing total food/beverage sales growth of +1.7%. The early players in low-carb, including Atkins, Keto, and CarboRite, are still growing fast (+181% versus a year ago), but major manufacturers have entered the battle in earnest in the past six months. The brand extensions' share of the segment rose from 44% to 57% in the past year.
Naturally low-carb product growth of nearly 6% is strongest in beverage, dinner and breakfast products, while over three quarters of the carb-branded activity growth, nearly 80%, was in snack meals and sweetened snacks and desserts. Portable, between-meal snacks and beverages remain the largest battleground for carb-cutting CPG manufacturers.
Other findings include:- carb brands have received unusually strong display support and are often displayed in multiple locations with multiple carb brands
- many carb-company products are premium priced compared to brand carb-extensions
- concerned overweight shoppers are trying multiple diets (eg low-carb, low-fat/cholesterol, and low-calorie/sugar dieting).
According to IRI's David Shanker, Division President, Client Solutions 'To be successful, it's critical that CPG food and beverage companies and retailers continue working to fully understand the changing consumer dynamics. They must also continue collaborating on advertising, packaging, merchandising, and shelf presentation to provide shoppers with the information they need to make healthier choices and support new lifestyles'.
A complete Executive Summary is available online at www.infores.com/public/us/newsEvents/thoughtleadership/default.htm
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