Table of Contents
Health and Wellness in Austria - Industry Overview
EXECUTIVE SUMMARY
Economic recovery boost sales
Organic products show dynamic performance
Modest growth for naturally healthy products
Supermarkets/hypermarkets leading distribution channel
Strong growth expected
KEY TRENDS AND DEVELOPMENTS
Economic recovery pushes health and wellness sales in 2010
Distribution of health and wellness food and beverages expanding
Private label still strong within health and wellness
Ageing population to boost health and wellness trend
Multiple health and wellness characteristics emerging in maturing categories
MARKET DATA
Table 1 Sales of Health and Wellness by Type: Value 2005-2010
Table 2 Sales of Health and Wellness by Type: % Value Growth 2005-2010
Table 3 Sales of Health and Wellness by Category: Value 2005-2010
Table 4 Sales of Health and Wellness by Category: % Value Growth 2005-2010
Table 5 Health and Wellness GBO Company Shares 2006-2010
Table 6 Health and Wellness NBO Company Shares 2006-2010
Table 7 Health and Wellness Brand Shares 2007-2010
Table 8 Forecast Sales of Health and Wellness by Type: Value 2010-2015
Table 9 Forecast Sales of Health and Wellness by Type: % Value Growth 2010-2015
Table 10 Forecast Sales of Health and Wellness by Category: Value 2010-2015
Table 11 Forecast Sales of Health and Wellness by Category: % Value Growth 2010-2015
APPENDIX
EU Legislation
SOURCES
Summary 1 Research Sources
Health and Wellness in Austria - Company Profiles
Dr Schär GmbH in Health and Wellness (Austria)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 4 Dr. Schär GmbH: Competitive Position 2010
Niederösterreichische Milch Holding AG in Health and Wellness (Austria)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 7 Niederösterreichische Milch Holding AG: Competitive Position 2010
Rauch Fruchtsäfte GmbH in Health and Wellness (Austria)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 10 Rauch Fruchtsäfte GmbH: Competitive Position 2010
Better For You Beverages in Austria - Category Analysis
HEADLINES
TRENDS
The overall economic upturn in Austria has created a sense of optimism among consumers. This has had a positive effect on sales of BFY beverages in 2010. Sales of BFY beverages are picking up again, compared to the moderate performance in 2009. Many consumers are again opting for BFY beverages. BFY beverages saw a 6% current value growth in 2010 reaching €148 million.
COMPETITIVE LANDSCAPE
Coca-Cola Austria GmbH remained the leading company with a value share of 28% in overall BFY beverages in 2010. Coca-Cola’s success is mainly due to the eponymous Coca-Cola brand’s dominant 59% value share in reduced sugar cola carbonates and Römerquelle emotion’s leading 34% value share in reduced sugar flavoured bottled water. The company benefits from offering strong brands that enjoy a high degree of brand equity thanks to on-going high profile marketing support. The company also benefits from clearly targeting men and women as distinctive groups for its reduced sugar cola carbonates with the Coca-Cola Zero and the Coca-Cola Light brands respectively.
PROSPECTS
Obesity is expected to remain one of Austrian society’s major problems over the forecast period. An ageing population and busy and sedentary lifestyles are expected to result in consumers increasingly suffering from weight problems. While some consumers will respond to weight problems by exercising and adopting healthy diets, many will, however, seek shortcuts. While BFY beverages is not regarded as actively aiding weight loss it is regarded as protecting consumers from their own urges for indulgence, by offering a less fattening means of indulging in soft drinks. Consumer demand for guilt-free indulgence and a desire to lose weight while doing little to change their lifestyle or habits are thus expected to support strong growth for reduced sugar soft drinks during the forecast period at a CAGR of 4% in constant value terms.
CATEGORY DATA
Table 12 Sales of BFY Beverages by Category: Value 2005-2010
Table 13 Sales of BFY Beverages by Category: % Value Growth 2005-2010
Table 14 BFY Beverages Company Shares 2006-2010
Table 15 BFY Beverages Brand Shares 2007-2010
Table 16 Forecast Sales of BFY Beverages by Category: Value 2010-2015
Table 17 Forecast Sales of BFY Beverages by Category: % Value Growth 2010-2015
Better For You Packaged Food in Austria - Category Analysis
HEADLINES
TRENDS
Austrian consumers have been suffering from weight problems during the review period with a growing number of overweight or obese people in the country. In combination with the overall wellness trend this has had a positive effect on the BFY industry. Austrian consumers are becoming more conscious of the fat and sugar contents in food and are therefore opting for low-fat or low calorie products. Overall, BFY packaged food experienced good growth in 2010 with a current value increase of 4%, with demand for fat reduced dairy products remaining strong.
COMPETITIVE LANDSCAPE
Tirol Milch leads sales of BFY packaged food with a 10% value share in 2010. Tirol Milch is one of Tyrol’s biggest companies, headquartered in Wörgl and Lienz and responsible for processing over 80% of the milk produced in the region. Tirol Milch also leads sales in BFY dairy products with a 13% value share in 2010. The company owes its strong position to its dominance in reduced fat flavoured milk drinks, which its TirolMilch ProFrucht 0% leads. The company is also the leading player in reduced fat milk and ranks second in reduced fat yoghurt, accounting for a 9% value share in each.
PROSPECTS
As the obesity rates in Austria are not expected to decrease in the short-term, the public discussion about obesity and healthy nutrition is most likely to continue and even intensify. This will lead to an increasing number of prospective consumers for BFY products which will ensure sustainable growth for the category over the forecast period. Overall BFY packaged food is expected to show a stable performance with a constant value CAGR of 2% over the forecast period.
CATEGORY DATA
Table 18 Sales of BFY Packaged Food by Category: Value 2005-2010
Table 19 Sales of BFY Packaged Food by Category: % Value Growth 2005-2010
Table 20 BFY Packaged Food Company Shares 2006-2010
Table 21 BFY Packaged Food Brand Shares 2007-2010
Table 22 Forecast Sales of BFY Packaged Food by Category: Value 2010-2015
Table 23 Forecast Sales of BFY Packaged Food by Category: % Value Growth 2010-2015
Food Intolerance in Austria - Category Analysis
HEADLINES
TRENDS
The awareness for food intolerance is rising in Austria. The overall food intolerance category saw a strong increase in 2010 with value sales increasing by a solid 4%. Liquid special baby milk formula saw the strongest growth. However, growth is slowing down compared to that recorded over the review period. Growth is attributed to a growing number of consumers becoming aware of their food intolerance as well as a wide range of food intolerance products with good distribution.
COMPETITIVE LANDSCAPE
Private label players hold the highest share of overall food intolerance products. Spar Österreichische Warenhandels AG holds first position with its Spar Free From range. The Free From range offers a wide range of food intolerance products, with the company thus accounting for a value share of 11% of overall food intolerance sales in 2010. Spar relaunched its private label Spar Free From range in October 2009, with the introduction of a wider range of gluten-free, and lactose-free products. This range includes 40 products, with 11 being gluten-free, seven being lactose-free and 24 being both gluten- and lactose-free. The retailer thus acknowledged the growing number of people suffering from multiple food intolerances and also the numerous health-conscious consumers who are seeking to reduce or eliminate gluten and lactose from their diets for health purposes.
PROSPECTS
Food intolerance is forecast to grow over the mid-term at a constant value CAGR of 2% reaching €63 million. Growth of lactose-free food will slow down due to maturity. Lactose-free food is forecast to see a constant value CAGR of 3% over the forecast period.
CATEGORY DATA
Table 24 Sales of Food Intolerance by Category: Value 2005-2010
Table 25 Sales of Food Intolerance by Category: % Value Growth 2005-2010
Table 26 Lactose-free Dairy Products by Type: % Value Breakdown 2006-2010
Table 27 Food Intolerance Company Shares 2006-2010
Table 28 Food Intolerance Brand Shares 2007-2010
Table 29 Forecast Sales of Food Intolerance by Category: Value 2010-2015
Table 30 Forecast Sales of Food Intolerance by Category: % Value Growth 2010-2015
Fortified/Functional Beverages in Austria - Category Analysis
HEADLINES
TRENDS
FF beverages sees substantial growth in 2010. The economic recovery in Austria was a good starting point for consumers to opt for often more expensive FF beverages. The main category responsible for overall growth is the strong performance of FF energy drinks. FF energy drinks takes the lion’s share, with 67% of FF beverages. Other FF hot drinks also saw good growth, all other categories remained fairly stable with 1-2% value increases. The moderate performance of the other categories is attributed to the fact that consumers are rather opting for naturally healthy and organic variants.
COMPETITIVE LANDSCAPE
Red Bull GmbH dominates FF beverages in Austria with 57% value share. This is entirely due to the company’s dominance in FF energy drinks with the Red Bull and Red Bull Sugar Free brands, which held a striking 80% value share in 2010. FF energy drinks in turn dominates overall value sales in FF beverages. The company has the leading position in FF energy drinks thanks to its strong brand, with the company having been a pioneer in this area. The company also benefits from its Austrian production, heritage and part ownership, along with its sports operations, including EC Red Bull Salzburg and FC Red Bull Salzburg.
Table 31 Fortified/functional Nectars (25-99% Juice) by Key Functional Ingredient Retail Value Sales (€ million)
Table 32 Fortified/functional Nectars (25-99% Juice) by Claim Types Retail Value Sales (€ million)
PROSPECTS
Despite a good forecast for Austria’s economic development, FF beverages is predicted to see moderate growth rates over the forecast period with a constant value CAGR of 3%, representing slower growth compared to the 5% constant value CAGR seen during the review period. The weaker growth rate is attributed to expected maturity in some categories including the largest category of FF energy drinks and the increase of private label products. In addition, consumers are likely to prefer product variants from other health and wellness categories.
CATEGORY DATA
Table 33 Sales of Fortified/Functional Beverages by Category: Value 2005-2010
Table 34 Sales of Fortified/Functional Beverages by Category: % Value Growth 2005-2010
Table 35 Other Fortified/Functional Hot Drinks by Type: % Value Breakdown 2005-2010
Table 36 Key Functional Ingredients in Fortified/Functional Bottled Water: % Breakdown 2006-2010
Table 37 Key Functional Ingredients in Fortified/Functional 100% Juice: % Breakdown 2006-2010
Table 38 Key Functional Ingredients in Fortified/Functional Juice Drinks (up to 24% juice): % Breakdown 2006-2010
Table 39 Key Functional Ingredients in Fortified/Functional Nectars (25-99% juice): % Breakdown 2006-2010
Table 40 Fortified/Functional Beverages Company Shares 2006-2010
Table 41 Fortified/Functional Beverages Brand Shares 2007-2010
Table 42 Forecast Sales of Fortified/Functional Beverages by Category: Value 2010-2015
Table 43 Forecast Sales of Fortified/Functional Beverages by Category: % Value Growth 2010-2015
Fortified/Functional Packaged Food in Austria - Category Analysis
HEADLINES
TRENDS
More and more consumers are opting for food that promises health, a higher performance or beauty. Manufacturers are focussing on functional products. The functional/fortified market is growing strongly with many manufacturers gaining from the profit. Danone Activia products increased sales from €35 million in 2006 to €42 million in 2010. But not just functional yoghurts also margarine with Omega 3 fatty acids or ready meals with added vitamins are driving sales. The overall sales of functional/fortified packaged food in Austria amounted to €313 million in 2010.
COMPETITIVE LANDSCAPE
Again in 2010, Danone GesmbH Austria held the leading value share of 13% in FF packaged food - although Danone’s shares have been slightly declining over the review period. Danone’s success is primarily thanks to the company’s Actimel and Activia brands in pro/pre biotic yoghurt, where the company had a strong lead with a 39% value share in 2010. Danone’s Activia was notably launched in 2007 and supported sales in FF spoonable yoghurt towards the end of the review period, reaching an 18% share in this product area by 2010. The strong performance of Activia thus supported Danone’s overall good performance in 2010. The Actimel brand is supported by television ads; and both this brand and Activia were supported by strong marketing throughout the review period.
Table 44 Pro/Pre Biotic Yoghurt by Key Functional Ingredient Retail Value Sales (€ million)
Table 45 Pro/Pre Biotic Yoghurt by Claim Types Retail Value Sales (€ million)
Table 46 Functional Spreadable Oils and Fats by Key Functional Ingredient Retail Value Sales (€ million)
Table 47 Functional Spreadable Oils and Fats by Claim Types Retail Value Sales (€ million)
Table 48 Functional Gum by Key Functional Ingredient Retail Value Sales (€ million)
Table 49 Functional Gum by Claim Types Retail Value Sales (€ million)
PROSPECTS
Over the forecast period growth is expected to slow down with a constant value CAGR of only 1% expected from 2010 to 2015 reaching €331 million in 2015. On the one hand, the shift away from FF breakfast cereals is predicted to continue and on the other hand, the largest sales base product category (FF dairy products) is not forecast to see such a good performance as in the review period with a constant value CAGR of 2%. This is mainly due to FF yoghurt slowly reaching saturation. FF yoghurt is likely to see a constant value CAGR of 1% over the forecast period.
CATEGORY DATA
Table 50 Sales of Fortified/Functional Packaged Food by Category: Value 2005-2010
Table 51 Sales of Fortified/Functional Packaged Food by Category: % Value Growth 2005-2010
Table 52 Sugarised Vs Sugar-free Fortified/Functional Gum: % Breakdown 2009
Table 53 Sugarised Vs Sugar-free Fortified/Functional Sugar Confectionery: % Breakdown 2009
Table 54 Standard Fat Vs Reduced Fat Fortified/Functional Yoghurt: % Breakdown 2009
Table 55 Key Functional Ingredients in Fortified/Functional Breakfast Cereals: % Breakdown 2006-2010
Table 56 Key Functional Ingredients in Fortified/Functional Bread: % Breakdown 2006-2010
Table 57 Key Functional Ingredients in Fortified/Functional Chocolate Confectionery: % Breakdown 2006-2010
Table 58 Key Functional Ingredients in Fortified/Functional Gum: % Breakdown 2006-2010
Table 59 Key Functional Ingredients in Fortified/Functional Sugar Confectionery: % Breakdown 2006-2010
Table 60 Key Functional Ingredients in Flavoured Milk Drinks: % Breakdown 2006-2010
Table 61 Key Functional Ingredients in Fortified/Functional Milk: % Breakdown 2006-2010
Table 62 Key Functional Ingredients in Fortified/Functional Yoghurt: % Breakdown 2006-2010
Table 63 Key Functional Ingredients in Fortified/Functional Snack Bars: % Breakdown 2006-2010
Table 64 Key Functional Ingredients in Fortified/Functional Spreadable Oils and Fats: % Breakdown 2006-2010
Table 65 Fortified/Functional Packaged Food Company Shares 2006-2010
Table 66 Fortified/Functional Packaged Food Brand Shares 2007-2010
Table 67 Fortified/Functional Bread Brand Shares 2007-2010
Table 68 Forecast Sales of Fortified/Functional Packaged Food by Category: Value 2010-2015
Table 69 Forecast Sales of Fortified/Functional Packaged Food by Category: % Value Growth 2010-2015
Naturally Healthy Beverages in Austria - Category Analysis
HEADLINES
TRENDS
NH beverages saw a moderate 2010 with a current value increase of 1% in line with the performance of the review period. NH bottled water is the most significant area with NH beverages. The category accounts for 51% of overall NH beverage sales. Sales of NH bottled water increased by 2% in current value terms in 2010. Austrians drank 511 million litres of bottled water in 2010, an increase of 2%. However, many consumers drink tap water rather than bottled water. In most Austrian regions, the tap water is of Alpine origin and is perceived as being of excellent quality.
COMPETITIVE LANDSCAPE
Vöslauer Heilquellen-Verwertung AG is the clear leader in NH beverages, accounting for a 15% value share in 2010. The company owes this share to its strong position in NH mineral water, accounting for a 27% value share in NH carbonated natural mineral water and a dominant 86% value share in NH still natural mineral water. The company benefits from its pioneering alpine mineral water which it launched in the 1990s and from being the only domestic producer with nationwide distribution. The patriotic nature of Austrian consumers and the high quality reputation of alpine mineral water thus supports the company’s strong sales.
PROSPECTS
Despite a positive economic forecast over the first two years of the forecast period, NH beverages is forecast to stagnate in constant value terms from 2010 to 2015; representing a decline from the 1% constant value CAGR seen during the review period. This performance is attributed to the moderate performance of NH bottled water, the largest area within NH beverages. Growth for NH bottled water is expected to remain muted overall during the forecast period, with a stagnant CAGR in constant value terms and a CAGR of 2% in volume. This is due to the high quality of tap water in Austria, which will deter many consumers from purchasing these products. NH tea, which accounts for 20% of NH beverages sales is also expected to stagnate. Furthermore, NH beverages suffers from competition from other health and wellness beverages.
CATEGORY DATA
Table 70 Sales of NH Beverages by Category: Value 2005-2010
Table 71 Sales of NH Beverages by Category: % Value Growth 2005-2010
Table 72 Other NH Hot Drinks by Type: % Value Breakdown 2005-2010
Table 73 NH Beverages Company Shares 2006-2010
Table 74 NH Beverages Brand Shares 2007-2010
Table 75 NH Green RTD Tea Brand Shares 2007-2010
Table 76 Forecast Sales of NH Beverages by Category: Value 2010-2015
Table 77 Forecast Sales of NH Beverages by Category: % Value Growth 2010-2015
Naturally Healthy Packaged Food in Austria - Category Analysis
HEADLINES
TRENDS
In 2010 the overall market for NH food showed a steady performance with a value increase of 3%. This represents a stronger growth than in the previous year. NH packaged food is increasingly in demand. With the health & wellness trend still playing an important role in the Austrian packaged food market NH products are popular with consumers. However, some NH categories are competing with other health and wellness categories. In addition, in order to economise consumers are opting for cheaper private label products.
COMPETITIVE LANDSCAPE
NH packaged food is highly fragmented with a number of specialist and regional producers. The leading player is Hofer GmbH & Co KG, followed by Spar Österreichische Warenhandels AG and Adolf Darbo, with value shares of 3%, 3% and 2%, respectively. The first two positions are held by leading retailers, reflecting their range of products across the sector.
PROSPECTS
The overall naturally healthy packaged food category is expected to show a moderate performance over the forecast period with a constant value CAGR of less than 1%, reaching €388 million in 2015. This is a weaker performance than seen during the review period which results from the growing maturity in many product areas. The reason for the overall moderate performance of NH foods is the stagnating performance of NH high fibre products which takes the lion’s share of NH food and is forecast to see a slight negative constant value CAGR over the forecast period.
CATEGORY DATA
Table 78 Sales of NH Packaged Food by Category: Value 2005-2010
Table 79 Sales of NH Packaged Food by Category: % Value Growth 2005-2010
Table 80 NH Packaged Food Company Shares 2006-2010
Table 81 NH Packaged Food Brand Shares 2007-2010
Table 82 Forecast Sales of NH Packaged Food by Category: Value 2010-2015
Table 83 Forecast Sales of NH Packaged Food by Category: % Value Growth 2010-2015
Organic Beverages in Austria - Category Analysis
HEADLINES
TRENDS
The popularity of organic products has long reached the organic beverages market. The range of organic beverages has widened immensely over the last three years of the review period. Nearly all beverage categories are also available in organic format next to the standard variant. However, organic beverages still has a very low sales base of €27 million compared to the other health and wellness beverages categories. It accounted for only 4% of overall sales of health and wellness beverages in 2010. Organic coffee and organic soft drinks account for the large part of organic beverages sales, with 44% and 43% shares of value.
COMPETITIVE LANDSCAPE
The leader in organic beverages is Rewe Austria AG, a leading player in supermarkets/hypermarkets in Austria. The company’s 6% value share is generated by its private label range Ja! Natürlich in hot drinks, with this range being particularly strong in organic fresh coffee. The range benefits from its affordable pricing and wide distribution via Rewe’s retail network. Rewe also offers a range of organic fruit and vegetable juices.
PROSPECTS
Although organic is likely to stay a major trend within health and wellness over the long-term in Austria, overall sales of organic beverages are predicted to see a moderate performance. Organic beverages is expected to grow at a constant value CAGR of 1%, a marked decline from the 4% recorded over the review period. The boom from the beginning when organic beverages were introduced has died down. In addition, organic beverages is a niche market with a low sales base.
CATEGORY DATA
Table 84 Sales of Organic Beverages by Category: Value 2005-2010
Table 85 Sales of Organic Beverages by Category: % Value Growth 2005-2010
Table 86 Organic Beverages Company Shares 2006-2010
Table 87 Organic Beverages Brand Shares 2007-2010
Table 88 Forecast Sales of Organic Beverages by Category: Value 2010-2015
Table 89 Forecast Sales of Organic Beverages by Category: % Value Growth 2010-2015
Organic Packaged Food in Austria - Category Analysis
HEADLINES
TRENDS
After stagnating for the first time in 2008 and then again in 2009 due to the poor economic situation and increased prices, organic packaged food experienced a boom in 2010. The economic upturn in 2010 in Austria was a good pre-condition for the positive development of organic food. The performance was accelerated due to discounters’ broad range of organic products. Organic food is in high demand more than ever before. In the meantime, the consumption of organic food has become a standard of living. In Austria, organic farming has changed from a niche market to a fixed component of the agriculture and food industries – with around 21,000 organic farmers.
COMPETITIVE LANDSCAPE
Organic packaged food is dominated by supermarkets/hypermarkets offering organic private label ranges. Private label takes a share of nearly 50%. The other 50% of shares are highly fragmented.
PROSPECTS
Organic food will be an on-going major trend among Austrian consumers within health and wellness over the forecast period. The range of products and the number of products available is expected to further increase until 2015. It is likely that more and more consumers will be switching from conventional food to organic products.
CATEGORY DATA
Table 90 Sales of Organic Packaged Food by Category: Value 2005-2010
Table 91 Sales of Organic Packaged Food by Category: % Value Growth 2005-2010
Table 92 Other Organic Food by Type: % Value Breakdown 2005-2010
Table 93 Organic Packaged Food Company Shares 2006-2010
Table 94 Organic Packaged Food Brand Shares 2007-2010
Table 95 Organic Dried Baby Food Brand Shares 2007-2010
Table 96 Forecast Sales of Organic Packaged Food by Category: Value 2010-2015
Table 97 Forecast Sales of Organic Packaged Food by Category: % Value Growth 2010-2015