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Sugar consumption down as health concerns grow

sugarWhen it comes to staying healthy, consumers are all too aware of how the foods we eat can affect our overall health.

In fact, Nielsen’s Global Health and Ingredient Sentiment Survey shows that 59 per cent of Australian consumers say they actively make dietary choices to help prevent health conditions such as obesity, diabetes, high cholesterol and hypertension. One of these dietary choices includes avoiding sugar.

Almost a quarter (24%) of Australian consumers follow a diet that limits the consumption of sugar, while 44 per cent say they avoid sugar as an ingredient – 10 percentage points higher than the global average of 34 per cent. Of the Australian consumers who avoid sugar in their diet, 30 per cent do so because someone in their household has a medical condition that prohibits its consumption; while 56 per cent choose not to buy sugar as they believe it is harmful to their health and that of their family.

These growing health concerns have translated into declining sugar sales in Australia. In the 12 months ending April 2016, volume sales for total sugar dropped by -3.5 per cent versus the year prior. The key segments that make up the sugar category – white, raw, caster and brown – all recorded declines. Most of the decline was due to category contraction – that is, Australian households, on average, buying less sugar every year and buying it less often. In fact, Nielsen Homescan data shows that as many as 16 per cent of households only purchase sugar once a year.

Despite these trends, there are still growth opportunities for manufacturers that operate in the sweet space. For example, the premium sugar segment (includes coconut sugar, cane sugar, palm sugar, etc) which currently represents just 4 per cent value of the total sugar excluding sweetener category, recorded 35.1 per cent growth versus the previous 12 months. Introducing and heavily promoting varieties like these could help attract the category’s lightest buyers – independent singles and young transitionals – who are also typically the most health-conscious.

Beyond the sugar category, manufacturers who produce sweet treats should also look to accommodate consumers who are taking steps to opt for better-for-you food choices, while still wanting to treat themselves – albeit a little less sinfully. More than a third (36%) of Australian consumers say they wish there were more low sugar/sugar free products on the shelves.

Cost, taste and convenience are still very iimportant influencers to purchase these products. Manufacturers that innovate by incorporating ingredients and preparation methods that improve the nutritional profile of their product portfolio will be strongly positioned to succeed.

For more detail and insight, download Nielsen’s Global Ingredient and Dining-Out Trends Report. If you would like more detailed country-level data from this survey, it is available for sale in the Nielsen Store.

Juliane Westaway, Director – Retail, Nielsen; Yassna Gutierrez, Account Manager – Retail, Nielsen

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