E UROMONITOR
Volume III Issue No. 7 • July 2017
The EMB of the Department of Trade and
Industry (DTI) is mandated to oversee the
development, promotion, and monitoring
of Philippine exports. The EMB provides
the exporters the enabling environment
to make them globally competitive.
Euromonitor Digest is a monthly online
publication of the EMB, which aims to
provide insightful analysis on the reports
culled from Euromonitor International’s
Business Intelligence Research.
EDITORIAL BOARD
Dir. Senen M. Perlada
Editor-in-Chief
AD Agnes Perpetua R. Legaspi
Managing Editor
Victorino S. Soriano
Associate Editor
Louise Kaye G. Mendoza
Layout / Design Artist
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Health and Wellness: Australia
Growing health awareness influences the food
and beverage choices of Australian consumers
Health and wellness concerns remain a key
focus guiding the food and beverage purchasing
decisions of Australian consumers. Within food,
this was reflected in a focus on natural ingredients
and a switch to low-sugar varieties. Meanwhile,
concerns around the consumption of fat have been
allayed by reports which highlight the place of
healthy fats, such as avocados, within a varied diet.
In beverages, Australian consumers continued
to turn away from sugar-laden drinks such as
carbonates and juices and opted for healthier
alternatives, such as carbonated and flavoured
water and cold-pressed juices.
Functional products appeal to consumer’s health
concerns
Manufacturers continued to promote the functional
use of their products to enhance the energy and
overall well-being of consumers. For example,
in November 2015 Sunbeam launched “energy
bites” which use “real” ingredients, such as apricot,
coconut and cacao, to provide a convenient
pick-me-up snack. The use of natural ingredients
to promote sustainable energy was also a trend
observed in beverages, for example in the use
of natural guarana extract, known for its energy
boosting properties, in PODiSTA’s double-shot
fresh ground coffee pods which were launched
in November 2015.
Organic becomes a key focus for manufacturers
Concerns around ethical and sustainable food
production remained key drivers in the growth
of organic food and beverages in Australia.
Organically grown produce also appeals to the
health and wellness concerns of consumers as
these products are free from pesticides and the use
of other strong chemicals which are considered
harmful to one’s health. Organically grown food
is also promoted as being more nutritionally dense
and better tasting than non-organically grown food.
New product developments which used organic
produce boomed in 2016, with organic coffee being
a particularly strong area of growth.
Health and wellness products become mainstream
The growth of health and wellness products
continued to be supported by the growing
presence of these products in supermarkets.
Supermarkets have encouraged growth by
developing their own range of health and wellness
products, as well as by offering consistent price
promotions on these products.
Source: © and database rights Euromonitor International PLC 2011 All rights reserved.
DIGEST
Health and wellness to remain a key concern over
the forecast period
Health and wellness packaged food and beverages
are both set to continue to grow over the forecast
period. This will be due to the continued increase
in health consciousness, as well as manufacturers
continuing to innovate to cater for growing
consumer demand for healthy products. In addition,
growing knowledge about healthy food and
beverage consumption will continue to be supported
by government health campaigns and information
promoted by public health officials in the media.
KEY TRENDS AND DEVELOPMENTS
Healthy lifestyles drive consumer demand
for healthier food and beverage products
The proportion of Australians who are classified
as either overweight or obese continues to grow,
with Euromonitor International forecasting that
33.4% of the Australian population will be classified
as obese by 2020. As a result, there have been
many government-directed health campaigns
developed to encourage physical exercise and
promote a healthy, balanced diet. This has fostered
growth in health consciousness among Australian
consumers who have become more educated about
the importance of nutrition. Young Australians in
particular are leading the charge in adopting healthy
lifestyles and this has been a key driver for health
and wellness food and beverages across a number
of categories, including organic, functional/fortified,
naturally healthy, better for you and food intolerance
types. As a result, the majority of categories
achieved positive retail value growth in 2016.
In the pursuit of a healthy lifestyle, Australian
consumers have turned away from heavily
processed foods towards healthier alternatives.
One example of this is other milk alternatives which
include almond milk, rice milk, and coconut milk
and appeals to consumers who are looking to limit
dairy consumption, often for health-related reasons.
Due to this rising health consciousness, health
and wellness experienced 3% overall retail value
growth in 2016.
Outlook
It is anticipated that more Australians will adopt
healthy lifestyles over the forecast period as public
health officials continue their campaign to promote
health and wellness to alleviate the burden of
lifestyle-related diseases. One example of this,
the Health Star Rating, which was voluntarily
introduced for mostly packaged food in 2014,
continues to increase its presence across
 Volume III Issue No. 7 • July 2017

supermarkets. It is anticipated that the influence of the Health Star

Rating will increase as consumers adapt to using the information
provided to inform their purchases. In addition, brand owners are
also now more conscious of products’ formulations and how they will
appear on the rating system.
Australian parents will also likely direct this move towards a healthier
lifestyle by making health-conscious decisions for their children.
With one in four Australian children classified as overweight or obese,
according to the Australian Institute of Health and Welfare, schools
will also play a key role in encouraging children to eat more healthily.
This will include initiatives such as education about how to eat well
and the importance of exercise and limiting the amount of unhealthy
food available at school canteens. The health concerns held by
parents will also be reflected in the strong growth of healthier food
options for infants, with powder special baby milk formula anticipated sweetener alternatives, such as monk fruit, although this ingredient
to record a 3% retail value CAGR at constant 2016 prices over the is yet to enter the mainstream market in Australia.
forecast period.
Outlook
Concern about the negative effects of sugar on health remains a key
issue for consumers Over the forecast period, manufacturers are expected to continue to
propose innovative ways to reduce the sugar levels of their products
The demonization of sugar continues as public health officials endorse while still maintaining an appealing taste for consumers. Reductions
a cautious approach to the consumption of sugar. Knowledge of the in serving sizes will remain a viable option to do this. Coca-Cola
array of negative health issues associated with sugar consumption Amatil launched a new 250ml PET bottle for Coca-Cola in October
continues to increase due to media coverage of studies linking the 2016 due to the success of its other smaller-sized packages. Other
two, as well as public health campaigns such as “Rethink Sugary manufacturers are set to follow this lead in line with consumer
Drink”. This campaign targets the high per capita consumption of demand.
sugary drinks in Australia and the potential this consumption has for
weight gain and obesity. Attempts to curtail sugar consumption have also been supported
by the release of Australia’s first line of sugar-free soft drinks in
Meanwhile, manufacturers also continue their search for new sugar major supermarkets. In August 2016, Nexba Beverages Pty launched
alternatives in the hope of appealing to health-conscious consumers. Sugar Free, a range of naturally sugar-free soft drinks which uses
While stevia has gained traction as a sugar alternative, particularly a combination of erythritol and stevia extract as sweeteners and
with the release of stevia-sweetened Coca-Cola Life in April 2015, is available in cola, lemon, and orange flavours. Sugar-free soft
some consumers have raised concerns about the taste of stevia. drink alternatives are likely to be purchased by adults for both their
Local trade associations have indicated that manufacturers continue
consumption as well as a healthier alternative for their children. ■
to experiment with the use of combinations of stevia as well as other

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