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Sugar and Sweeteners - US - September 2014

Published By :

Mintel

Published Date : Oct 2014

Category :

Sugar & Supplements

No. of Pages : 127 Pages


The success of the honey segment is likely tied to the high perception of health it holds among US consumers. Some 60% of respondents to Mintel’s custom consumer survey say honey is good for health, compared to 10% who say granulated sugar is good for health.
Table of Content

Scope and Themes
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations

Executive Summary
The market
Dollar sales losses in category could slow in coming years
Figure 1: Total US retail sales and forecast of sugar and sweeteners, at current prices, 2009-19
Leading companies
Category highly fragmented, Domino leads with 13% of MULO sales
Figure 2: MULO sales of sugar and sweeteners at retail (and percentage change), by leading companies, rolling 52 weeks 2013 and 2014
Segment performance
Honey gains with sugar’s losses
Figure 3: Total US retail sales of sugar and sweeteners (and percentage change) ($ millions), by segment, at current prices, 2009-14
The consumer
Honey leads perception of health
Figure 4: Healthfulness of sugars/sweeteners, correspondence analysis, September 2014
Consumers keep an eye on sweetener use in juice, carbonated soft drinks
Figure 5: Paying attention to sugar/sweetener as an ingredient (top five), June 2014
What we think

Issues and Insights
How can the category combat negative perceptions of health?
Issue
Insight: The category needs to promote its strengths
How closely do consumers pay attention to sweeteners in packaged food?
Issue
Insight: Arming shoppers with information about what’s inside should find appeal
How can brands compete with the strength of private label?
Issue
Insight: Bring products out of the generic shadow

Trend Applications
Trend: FSTR HYPR
Trend: Life Hacking
Trend: Help Me Help Myself

Market Size and Forecast
Key points
Sales and forecast of sugar and sweeteners
Figure 6: Total US retail sales and forecast of sugar and sweeteners, at current prices, 2009-19
Figure 7: Total US retail sales and forecast of sugar and sweeteners, at inflation-adjusted prices, 2009-19
Dollar sales losses in category could slow in coming years
Figure 8: Total US retail sales and forecast of sugar and sweeteners, at current prices, 2009-19
Forecast methodology

Market Factors
Health woes hurt and help category
Sugar consumption on the decline, but still exceeds recommendations
Figure 9: U.S. per capita sweetener availability, 1966-2012
Figure 10: Per capita sugar consumption in the United States: Actual versus Recommended, 1970-2010
General interest in healthy eating grows
Sugar substitutes should benefit, but find challenges of their own
Figure 11: Sugar substitutes/artificial sweeteners, February 2008-March 2014
Industry must promote its strengths and play a role in healthy eating
Reduction of added sugars appears as cause célèbre
Category players would do well to stay ahead of regulation
Proposed Nutrition Facts label change looms large

Segment Performance
Key points
Honey is the only segment to see positive two-year movement
Figure 12: Total US retail sales of sugar and sweeteners, by segment, at current prices, 2012 and 2014
Sugar sales take a dive
US retail sales of sugar
Figure 13: Total US retail sales and forecast of sugar at current prices, 2009-19
Figure 14: Total US retail sales and forecast of sugar at inflation-adjusted prices, 2009-19
Syrup and molasses sales are stuck at $1 billion
US retail sales of syrup and molasses
Figure 15: Total US retail sales and forecast of syrup and molasses at current prices, 2009-19
Figure 16: Total US retail sales and forecast of syrup and molasses at inflation-adjusted prices, 2009-19
Sugar substitutes experienced the largest percentage declines
US retail sales of sugar substitutes
Figure 17: Total US retail sales and forecast of sugar substitutes at current prices, 2009-19
Figure 18: Total US retail sales and forecast of sugar substitutes at inflation-adjusted prices, 2009-19
Honey is the only segment to post gains
US retail sales of honey
Figure 19: Total US retail sales and forecast of honey at current prices, 2009-19
Figure 20: Total US retail sales and forecast of honey at inflation-adjusted prices, 2009-19

Spotlight: Sweeteners as Ingredient in Packaged Food and Drink
Sorbitol leads in sales of products with added sweeteners
Figure 21: Sales* of products with added sweeteners, by type of sweetener, at current prices, rolling 52 weeks 2012 and 2014
Stevia/stevia blends most prevalent in enhanced/flavored water despite declines
Figure 22: Sales* of products sweetened with stevia/stevia blend, by product category, at current prices, rolling 52 weeks 2012 and 2014
Frozen desserts and juices and functional beverages lead agave use
Figure 23: Sales* of products sweetened with agave, by product category, at current prices, rolling 52 weeks 2012 and 2014
Coconut/palm sweetener finds success in candy, cereal
Figure 24: Sales* of products sweetened with coconut/palm sweetener, by product category, at current prices, rolling 52 weeks 2012 and 2014
Monk fruit growth seen in energy bars/gels
Figure 25: Sales* of products sweetened with Lo Han, by product category, at current prices, rolling 52 weeks 2012 and 2014
Sugar alcohols used in widest range of products measured in this report
Figure 26: Sales* of products sweetened with sugar alcohols**, by product category, at current prices, rolling 52 weeks 2012 and 2014
Cookies and snack bars hold largest share of products sweetened with other natural alternative single sweeteners
Figure 27: Sales* of products sweetened with other natural alternative single sweeteners**, by product category, at current prices, rolling 52 weeks 2012 and 2014
Sales of products sweetened with other artificial alternative sweeteners down slightly
Figure 28: Sales* of products sweetened with other artificial alternative sweeteners, by product category, at current prices, rolling 52 weeks 2012 and 2014
Natural/artificial blends find most success in candy products
Figure 29: Sales* of products sweetened with natural and artificial sweetener blends, by product category, at current prices, rolling 52 weeks 2012 and 2014

Retail Channels
Key points
Supermarkets hold only slight dominance over other retail channels
Retailers can lead shoppers to purchase through product positioning, health help
Figure 30: Total US retail sales of sugar and sweeteners, by channel, at current prices, 2012-14
Private label represents nearly half of MULO sales in category
Private label sugar expands to natural, added flavor
Store brand honey offers thrifty shoppers different formats, provenance, organic
Private label sugar substitutes innovate, threaten brand dominance
Store brand syrup and molasses seeps across retail channels

Leading Companies and Brand Analysis
Key points
Category highly fragmented, Domino leads with 13% of MULO sales
MULO sales of sugar and sweeteners
Figure 31: MULO sales of sugar and sweeteners at retail, by leading companies, rolling 52 weeks 2013 and 2014
Domino controls 21% of MULO sugar sales, but is dwarfed by private label
MULO sales of sugar
Figure 32: MULO sales of sugar at retail, by leading companies, rolling 52 weeks 2013 and 2014
Private label sugar loyalty points to need for differentiation
Figure 33: Key purchase measures for the top sugar brands, by household penetration, 52 weeks ending Dec. 30, 2012 (year ago) and Dec. 29, 2013 (current)
Maple syrup brands lead MULO segment sales
MULO sales of syrup and molasses
Figure 34: MULO sales of syrup and molasses at retail, by leading companies, rolling 52 weeks 2013 and 2014
Expanding usage occasions can help syrup segment to grow
Figure 35: Key purchase measures for the top syrup brands, by household penetration, 52 weeks ending Dec. 30, 2012 (year ago) and Dec. 29, 2013 (current)
Splenda dominates sugar substitute sales at MULO
Figure 36: Splenda, “For Anywhere You Use Sugar,” TV Ad, 2014
Figure 37: In the Raw, “Cupcake,” TV Ad, 2014
Figure 38: In the Raw, “Handshake,” TV Ad, 2014
Figure 39: Truvia, “Kitchen Story,” TV Ad, 2014
MULO sales of sugar substitutes
Figure 40: MULO sales of sugar substitutes at retail, by leading companies, rolling 52 weeks 2013 and 2014
Equal has trouble competing with the others
Figure 41: Key purchase measures for the top sugar substitute brands, by household penetration, 52 weeks ending Dec. 30, 2012 (year ago) and Dec. 29, 2013 (current)
Private label represents 50% of MULO honey market, growing
MULO sales of honey
Figure 42: MULO sales of honey at retail, by leading companies, rolling 52 weeks 2013 and 2014
Expansion of honey brand lines could boost purchase occasions
Figure 43: Key purchase measures for the top honey brands, by household penetration, 52 weeks ending Dec. 30, 2012 (year ago) and Dec. 29, 2013 (current)

Innovations and Innovators
New varieties surpass new product launches in 2014
Figure 44: Sugar and sweetener launches, by launch type, 2010-14*
Added flavors could spice up the category
Figure 45: Sugar and sweetener launches (honey), by top 10 flavors, 2010-14*
Low calorie/low sugar claims on the rise
Figure 46: Sugar and sweetener launches, by top 10 claims, 2010-14*
Convenient sugar packaging prioritized in 2014
Figure 47: Sugar and sweetener launches (sugar), by top 10 claims, 2010-14*
Pourable sugar on the rise
Figure 48: Sugar and sweetener launches (sugar), by package type, 2010-14*
Low calorie/sugar claims in syrup/molasses on the rise
Figure 49: Sugar and sweetener launches (syrup and molasses), by top 10 claims, 2010-14*
Allergen claims growing in popularity among sugar substitutes
Figure 50: Sugar and sweetener launches (sugar substitutes), by top 10 claims, 2010-14*
Organic honey sees strong growth
Figure 51: Sugar and sweetener launches (honey), by top 10 claims, 2010-14*
Blends allow for familiarity, control
Liquids lend to convenience, expand usage occasions
Bring products out of the generic shadow
Go premium
Highlight heritage
Emphasize provenance

Use of Sweeteners
Key points
More than half of US households use white granulated sugar
Figure 52: Use of sugar, by gender, June 2014
Younger consumers open to alternative sweeteners
Figure 53: Use of sugar, by age, June 2014
Figure 54: Use of sugar substitutes, by age, June 2014
Use of alternative sweeteners tied to income
Figure 55: Use of sugar, by household income, June 2014
Figure 56: Use of sugar substitutes, by household income, June 2014
Natural aspect of sugar may appeal to Asian households
Figure 57: Sugar and sugar substitutes, by race/Hispanic origin, January 2013-March 2014

Sweetened Products
Key points
HFCS most recognized non-sugar sweetener
Figure 58: Purchase of products that contain sugar substitutes, by age, June 2014
Sweeteners most evident in juice/carbonated soft drinks
Figure 59: Pepsi NEXT, “Baby Tricks,” TV Ad, 2013
Figure 60: Paying attention to sugar/sweetener as an ingredient, by age, June 2014

Healthfulness of Sweeteners
Key points
Honey leads perception of health
Figure 61: Healthfulness of sugars/sweeteners, September 2014
Figure 62: Healthfulness of sugars/sweeteners, correspondence analysis, September 2014
25-44 year olds have strongest opinions on sweetener health
Figure 63: Healthfulness of sugars/sweeteners – Good, by age, June 2014
Figure 64: Healthfulness of sugars/sweeteners – Bad, by age, June 2014
Respondents age 55+ look to control sugar intake
Figure 65: Attitudes toward sugar/sweeteners (health), by age, June 2014
High earners more likely than lower earners to see sweeteners as bad
Figure 66: Healthfulness of sugars/sweeteners – Bad, by household income, June 2014
Consumers continue to use the sweeteners they consider bad for health
Figure 67: Healthfulness of sugars/sweeteners – Bad, by use of sugar, June 2014
Figure 68: Healthfulness of sugars/sweeteners – Bad, by use of sugar, June 2014 (continued)
Figure 69: Healthfulness of sugars/sweeteners – Bad, by use of sugar substitutes, June 2014
Figure 70: Healthfulness of sugars/sweeteners – Bad, by use of sugar substitutes, June 2014 (continued)

Purchase Decision
Key points
While taste and natural lead purchase drivers, convenience provides an opportunity
Figure 71: Purchase decision, by gender and age, June 2014
Young shoppers interested in added value
Figure 72: Attitudes toward sugar/sweeteners (flavor/format), by age, June 2014
High earners particularly interested in natural
Figure 73: Purchase decision, by household income, June 2014
Figure 74: Attitudes toward sugar/sweeteners (price), by household income, June 2014
Sugar alternatives may benefit from baking positioning
Figure 75: Use of sugar, by purchase decision (1 of 2), June 2014
Figure 76: Use of sugar, by purchase decision (2 of 2), June 2014
Familiar packets make their mark, pointing to the importance of packaging
Figure 77: Use of sugar substitutes, by purchase decision (1 of 2), June 2014
Figure 78: Use of sugar substitutes, by purchase decision (2 of 2), June 2014

Custom Consumer Groups – Households with Children
Key points
Households with children use more sweetener types than those without
Figure 79: Use of sugar, by presence of children in household, June 2014
Figure 80: Use of sugar substitutes, by presence of children in household, June 2014
Dads are a good target for sugar substitutes
Figure 81: Use of sugar, by gender and presence of children in household, June 2014
Figure 82: Use of sugar substitutes, by gender and presence of children in household, June 2014
HHs with children more likely to pay attention to sugar/sweeteners in products
Figure 83: Paying attention to sugar/sweetener as an ingredient, by presence of children in household, June 2014

Appendix – Other Useful Tables
Use of sweeteners
Figure 84: Use of sugar, by gender and age, June 2014
Figure 85: Use of sugar, by Hispanic origin and income, June 2014
Figure 86: Use of sugar substitutes, by gender and age, June 2014
Figure 87: Use of sugar substitutes, by Hispanic origin and income, June 2014
Sweetened products
Figure 88: Purchase of products that contain sugar substitutes, by gender and age, June 2014
Figure 89: Purchase of products that contain sugar substitutes, by Hispanic origin and income, June 2014
Figure 90: Paying attention to sugar/sweetener as an ingredient, by gender and age, June 2014
Healthfulness of sugar/sweeteners
Figure 91: Healthfulness of sugars/sweeteners – Good, by gender and age, June 2014
Figure 92: Healthfulness of sugars/sweeteners – Good, by Hispanic origin and income, June 2014
Figure 93: Healthfulness of sugars/sweeteners – Bad, by gender and age, June 2014
Figure 94: Healthfulness of sugars/sweeteners – Bad, by Hispanic origin and income, June 2014
Purchase decision
Figure 95: Purchase decision, by Hispanic origin and income, June 2014
Attitudes toward sugar and sweeteners
Figure 96: Attitudes toward sugar/sweeteners (health), by gender and age, June 2014
Figure 97: Attitudes toward sugar/sweeteners (convenience), by gender and age, June 2014
Figure 98: Attitudes toward sugar/sweeteners (price), by gender and age, June 2014
Figure 99: Attitudes toward sugar/sweeteners (flavor/format), by gender and age, June 2014
Figure 100: Attitudes toward sugar/sweeteners, by Hispanic origin and income, June 2014

Appendix – Information Resources Inc. Builders Panel Data Definitions
Information Resources Inc. Consumer Network Metrics

Appendix – SPINS categories covered in Spotlight: Sweeteners as Ingredient in Packaged Food and Drink

Appendix – Trade Associations

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