It’s no secret that the state of health and wellness in much of the developed world is dismal – and getting worse. And while Australia is a relatively good place to be born in terms of health, it is not immune from the alarming obesity epidemic and related health concerns. A number of food and beverage manufacturers have recognised this, and are taking tangible, visible steps to address the issue. However, there is still a long way to go. Whilst consumers generally recognise health risks and issues, there are barriers that prevent them making smarter consumption choices. One key barrier is the lack of availability of product options that address their health concerns whilst still delivering against other core needs. Through a greater understanding of relevant consumer lifestyle tensions and unmet consumption needs, marketers can more successfully navigate health and wellness territory.

1. Health & wellbeing:
What it means to food and beverage marketers in
Australia
©TNS 2013

2. It’s no secret that the state of health and wellness in much of the
developed world is dismal – and getting worse
“
Until 1980, fewer than one in ten people
were obese. Since then, rates doubled or
tripled and in 19 of 34 OECD countries the
majority of the population is now
overweight or obese.
“
“
Obesity has reached epidemic proportions
globally, with more than 1 billion adults
overweight – at least 300 million of them
clinically obese.
“
©TNS 2013
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3. Whilst Australia is relatively good place to be born, it is not
immune from the alarming obesity epidemic and related health
concerns
“
Obesity rates in ‘Australasia’ (Australia and
New Zealand) are not far behind those in
the U.S. and Canada—about 25 percent for
men and women.
“
©TNS 2013
3

4. As in much of the developed world, obesity is even more prevalent
among low income consumers in Australia
Rates of adult obesity in Australia
By household income
21
17
15
Low income
Middle income
High income
Source: Australian Bureau of Statistics, Year Book Australia, 2008/ cnn.com
©TNS 2013
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5. And the cost that the continued obesity epidemic has
on society is devastating
“The cost of obesity to Australia's
collective wellbeing has reached
$120 billion a year –
the equivalent of about 8 per cent of
the economy's annual output.”
©TNS 2013
5

6. And there are clear signs of regulators starting to take
action that will impact manufacturers
New food labelling rules
relating to health claims
implemented from
January 2013
US ban announced on
11 November 2013
©TNS 2013
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7. In parallel, the developing world is also facing an increasingly dire
obesity issue – but there, higher income consumers are more
susceptible
“
One half of Brazilians are now overweight and 15 percent are obese,
according to Brazil’s Ministry of Health. Doctors and health officials say
the trend is linked to fattening food, rising incomes and falling physical
fitness — and the same pattern is playing out across the globe.
“
“
Mexico has surpassed the U.S. in terms of obese and overweight
residents. With more sedentary, urban jobs and a higher concentration of
commercially available snack food, it's hard for many to maintain a
healthy weight.
“
©TNS 2013
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8. China is prime example of a nation where rising
incomes are tied to expanding waistlines
% more than a bit over ideal weight
By household income (RMB per month)
Top Level
12,000 and above
“China's obese
population is
growing 30 to 50
percent each year”
14
Level 4
7,000-11,999
Level 3
4,000-6,999
Level 2
2,000-3,999
Level 1
Below 2,000
9
8
8
9
Source: TNS China’s Food & Beverage China 2012 (weight by income)/ PBS Newshour (obesity growth rate)
©TNS 2013
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9. The link between rising income and expanding waistlines in
developing countries comes as income liberates self-actualization
through food and beverage choices
Income growth enables consumers to look beyond their physical and safety needs
and focus more on enjoyment of life and indulging one’s self.
Self/ Me
I
n
c
o
m
e
Selfless/ We
Maslow’s needs hierarchy
©TNS 2013
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10. In developed markets the relatively greater affluence means many
consumers can actualize though a range of other products. It’s
only lower income consumers in developed markets that are
limited to self actualize through food.
$
$$
©TNS 2013
$$$
$$$$
10

11. But it’s not as if consumers don’t want to be healthier
Less than half of consumers are satisfied with their physical well being
Satisfied
Not Satisfied
Source: The Futures Company, Global Monitor 2013
©TNS 2013
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12. And it’s not as if they don’t know what to do to be healthier…
In the US, for example, a majority of consumers
know:
The way to lose weight is to burn
more calories than I take in
The best diet is one balanced with
foods from all of the food pyramid
Moderation is the key to healthy
living
Source: TNS Landis article 2007
©TNS 2013
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13. …it’s just that many fail to follow through – either because they
can’t do what they set their mind to or they don’t even try
American health & wellness mindframe summary:
Actively living a
healthy lifestyle
(43%)
Working hard
(29%)
Managing
status quo
(14%)
Not actively living
a healthy lifestyle
(57%)
Trying some –
not succeeding
(23%)
Not trying
very hard
(34%)
Source: TNS Landis article 2007
©TNS 2013
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14. This lack of follow through is not limited to the developed world
The overall picture is similar in China
Chinese health & wellness mindframe summary:
Actively living a
healthy lifestyle
(52%)
Working hard
(35%)
Managing
status quo
(17%)
Not actively living
a healthy lifestyle
(48%)
Trying some –
not succeeding
(16%)
Not trying
very hard
(32%)
Source: TNS China’s Food & Beverage China 2012
©TNS 2013
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15. Why is it so hard for consumers to choose a healthy path when
they know what needs to be done?
Barriers to a healthy lifestyle:
Stress
Access to unhealthy
food
Unattainable ideals
Source: TNS Landis article 2007
©TNS 2013
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16. Stress is a key barrier to making healthy choices, as consumers
are biologically disposed to choose unhealthy food when facing
stress
More stress = more ‘junk food’
Source: TNS Landis article 2007
©TNS 2013
16

17. Clinical studies support a link between stress and the
desire for comfort food
Stressed rats engaged in pleasure-seeking
behaviours including consumption of high-energy
foods (lard and sucrose).
Researchers concluded that comfort food
restrained a key element of chronic stress.
This offers a partial explanation as to why release
is sought in such foods by people with stress,
anxiety, or depression.
Source: TNS Landis article 2007
©TNS 2013
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18. Interestingly, obesity rates are lower in recent immigrants to
Australia
Rates of adult obesity in Australia
18
11
Total population
Recent arrivals
(1996-2005)
Non-recent arrivals
(before 1996)
Source: Australian Bureau of Statistics, Year Book Australia, 2008/ Australian Government Dept. of Immigration & Citizenship
©TNS 2013
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19. …however, as they become accustomed to the high stress western
lifestyle, obesity rates again rise
Rates of adult obesity in Australia
18
15
11
Total population
Recent arrivals
(1996-2005)
Non-recent arrivals
(before 1996)
Source: Australian Bureau of Statistics, Year Book Australia, 2008/ Australian Government Dept. of Immigration & Citizenship
©TNS 2013
19

20. There is no shortage of unhealthy food options in Australia
“
Australia is expected to spend more than $37
billion on takeaway food this year, making us
the 11th biggest-spending fast food nation
on earth.
The figure - the equivalent of 343 Whopper
burgers for every man, woman and child in
the country - is an increase of $4 billion in
just three years.
Australia now has more than 1250 Subways,
845 Domino's, 780 McDonald's and 300
Hungry Jacks and 600 KFCs here and in New
Zealand
“
©TNS 2013
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21. In fact for the lowest income consumers, unhealthy food is more
accessible than healthier alternatives
In fact, the ‘food desert’ or ‘food insecurity’ phenomenon suggests that unhealthy
food is often easier to come by than healthy options
©TNS 2013
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22. And why is that? High calorie food is generally more affordable
170 calories
fresh fruit
In the
US
$1
250 calories
vegetables
1200 calories
potato chips
buys
Source: The American Journal of Clinical Nutrition (as reported in cnn.com)
©TNS 2013
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23. Furthermore, seemingly unattainable ideals make many
consumers more likely just to give up in their pursuit of health
“
Advertising messages focus on an ideal self that is highly discrepant from the
actual self, making consumers feel that they don’t measure up… Repeated
exposure to promotional messages touting ideal images shapes one’s image of
the ideal self, which in turn causes people to feel bad about themselves because
of the perceived discrepancy between their actual and ideal… Stress caused by
this perceived discrepancy causes people to engage in stress-relieving
activities (e.g., eating, drinking, taking drugs, etc.) that may alleviate stress in
the short-run but create additional health and societal problems in the
long run.
“
Dr. Joseph Sirgy
Social/consumer/organizational psychologist
Virginia Polytechnic Institute & State University
Source: TNS Landis article 2007
©TNS 2013
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24. So what?
There are multiple forces pushing consumers towards unhealthy food
• Striving for self actualisation
• Stress of our modern western lives
• The relative affordability and ubiquity of unhealthy food
Yet what do we do? We put low fat, low calorie options on the shelf.
What about the majority who can’t will themselves to make such healthy choices?
How can we provide more sensible food and beverage options to them?
©TNS 2013
24

25. Facing such barriers, consumers often feel stuck between two
extremes
High
Health
©TNS 2013
Total
Indulgence
25

26. There needs to be a point in the middle. Some realistic options
that within their grasp
Not truly healthy, but ‘better than
the alternative’ – more sensible
without sacrifice
High
Health
©TNS 2013
Health
Alibis
Total
Indulgence
26

27. So what might a successful ‘health alibi’ product look like?
Portion control
Coca-Cola mini-cans give
consumers a portioncontrolled way to enjoy
their favorite beverage
©TNS 2013
A bit of indulgence
Starbucks Petites take full
indulgence treats and put
them in a bite-size format
to remove guilt without
compromising enjoyment
Balanced enjoyment
Wrigley’s Extra Dessert
Delights gum raises the
indulgence of gum, but
without all the indulgence
of a full dessert
27

28. Other products that have successfully navigated ‘health alibi’
territory, giving consumers more sensible enjoyment without
sacrifice
Great taste –
with vitamins
A sweet, refreshing
beverage with added
vitamins for greater
sensibility
©TNS 2013
Chocolate indulgence –
with benefits
Products combining the
indulgence of chocolate
and the health benefits of
lower cholesterol and
better circulation
Delicious –
with fortification
A ‘liquid breakfast’ in
enticing flavors that provides
the protein and fiber needed
to start the day right
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29. High health products do represent the ideal choice for consumers
in some instances – but momentum is shifting away.
Ideal Food/ Beverage Needs
2
8 4
High
Health
2
8
4
6
6
Health
Alibis
Fortify to Avoid
Soothing Nutrition
Wholesome Balance
Natural Energizer
Total
Indulgence
These are the best served needs in
market – if you want something
healthy, you are happy with
alternatives available
Source: TNS China’s Food & Beverage China 2012. This study surfaced 13 distinct ideal food/beverage needs of Chinese consumers.
Segments with lesser prevalence among higher income Chinese consumers
©TNS 2013
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30. The other end of the spectrum is where there is more traction, as
consumers increasingly go for more indulgent options
Ideal Food/ Beverage Needs
2
High
Health
6
1 12
Health
Alibis
Fortify to Avoid
Soothing Nutrition
Wholesome Balance
6
Natural Energizer
1
8 4
2
8
4
Fun Anytime Treats
Total
Indulgence
12 Sweet Indulgence
Source: TNS China’s Food & Beverage China 2012. This study surfaced 13 distinct ideal food/beverage needs of Chinese consumers.
Segments with greater prevalence among higher income Chinese consumers
Segments with lesser prevalence among higher income Chinese consumers
©TNS 2013
30

31. The majority of the needs are not high health. And as consumers
struggle to navigate between two extremes, many needs in the
middle have gained momentum
Health alibi needs in particular are
relatively underserved and
represent greatest opportunity for
innovation
Ideal Food/ Beverage Needs
2
8 4
High
Health
6
11
9
10
7 5 3 13
Health
Alibis
1 12
Total
Indulgence
2
8
4
Fortify to Avoid
Soothing Nutrition
Wholesome Balance
6 Natural Energizer
11 Light & Sensible
Refreshment
9 Mental Release
10
7
5
3
Filling Fuel
Convenient Stimulators
Multi-Sensory Enjoyment
Anytime, Anywhere
Munchies
13 Bold Statement
1 Fun Anytime Treats
12 Sweet Indulgence
Source: TNS China’s Food & Beverage China 2012. This study surfaced 13 distinct ideal food/beverage needs of Chinese consumers.
Segments with greater prevalence among higher income Chinese consumers
Segments with lesser prevalence among higher income Chinese consumers
©TNS 2013
31

32. In China there are a number of benefits consumers
long for from a health alibi
Some underserved ‘health alibi’ needs in China
Not too filling
Portion just right
Can fully enjoy without overindulging
Different sizes to choose from
Good when there's not enough time for a meal
Good to eat/drink when in a hurry
Satisfies a craving
Curbs hunger so you won't eat too much else
©TNS 2013
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33. Ultimately, marketers can more successfully navigate health and
wellness territory by meeting consumers halfway
Those that understand the challenges consumers face and design products that fit
the realities of their lives become true partners with consumers in delivering
sustainable solutions for improved wellbeing.
©TNS 2013
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34. ©TNS 2013
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