Table of contents • Introduction, Executive Summary and Methods 2) The World of Health + Wellness • Dimensions of Consumption • Segment Profiles: Periphery, Mid-level, Core • Adoption Pathway • Triggers • Information Sources • Health and Wellness Spending • 3) Living in a Wellness Culture • Higher Quality of Life for Longer • Wellness Practices • Eating Good Food • Being Active • Resting • Feeling Well • Balanced Energy • Good Digestion • Social Wellness
Table of contents (continued) • 4) Wellness Food Trends • Fresh/Less Processed • Nutritionally Well-Rounded • Weight Management Trends • 5) Wellness at Retail • 6) Wellness at Food Service • 7) Health Management • 8) Special Topic: Low-Income Consumers • 9) Implications
Introduction, Executive Summary, Methods SECTION 01
EXECUTIVE SUMMARY Background For almost 25 years, The Hartman Group has applied innovative techniques from the social sciences to explore health and wellness (H+W) in the United States and to illuminate emerging opportunities for marketing H+W solutions to consumers. Our pioneering studies in 2000 and 2005 described the desire among U.S. consumers to regain control of personal and household health. By that point, our careful observations and analyses made it clear that what we were seeing was nothing short of a transformationin the scope of H+W itself and its role within culture. In 2007 and 2010, we bore witness to the emergence among consumers of a broadening desire for quality of life experiences across H+Wcategories as well as in areas that were less explicitly about H+W, such as in premium/freshfood and beverage products and the occasions on which consumers privileged them. • Our methods and frameworks have therefore extended beyond a conventional “consumer-centric” lens to embrace a cultural perspective. Revisiting the consumer state of H+W in 2013, this year once again we have integrated qualitative consumer ethnography, quantitative large-sample survey methods, and ongoing trends tracking. We have leveraged our previous work as well to deliver an evidence-driven, provocative, big-picture assessment of where H+W is today, where it’s going, and what it all means.
EXECUTIVE SUMMARY The World of Health + Wellness Consumers think, live and shop differently depending on where they are within the “World” of Health and Wellness. More than a consumer segmentation, The Hartman Group’s World model accounts for consumer engagement with the institutions comprising wellness culture and serves not only as a helpful way of recognizing how consumers may differ from each other but also as model of cultural change and the emergence and adoption of new H+W trends. All consumers participate in the World of H+W, behaviorally and aspirationally. “Core” consumers comprise the smallest segment (13% of adults). They are the early adopters, trendsetters, evangelists. In 2013, they described H+W as proactive and mindful in body, mind and soul. They privilege authenticity, sustainability, quality and knowledge and often serve as the source of this knowledge as they navigate retail and other sites of H+W decision making. • “Inner” and “Outer” Mid-level consumers together account for a majority (62%) of adults. They are not as intensely committed as Core consumers but are essential to the success of any “trend” – selecting, translating and adopting new ideas launched from the Core. As of 2013, they have solidly embraced ideas of H+W that integrate mind and body, self and community. The most involved of them have an eye on authenticity and ground their purchase decisions in a bank of knowledge, while those less involved are glad to rely on experts; in common, they value fun, enjoyment and quality, which typically includes the “experience” of shopping for and consuming wellness. • Periphery consumers (25%) typically understand that they should eat right and exercise, and even if they don’t act on these consistently, in 2013 they aspire to manage their health proactively, with a goal of happiness rather than simply freedom from illness. They turn to brands for perceived quality and consistency, and they may bow to price and convenience more than Core or Mid-level consumers. • But critically, today all segments for the first time share in a broadened, personal, proactive wellness perspective.
EXECUTIVE SUMMARY Living in a wellness culture Over the past decade, we have observed a shift away from a perfunctory, ascetic, reactive and compliant notion of wellness to one that is more experiential, positive, holistic, proactive and self-assessed. There has been a cultural shift – now complete for all intents and purposes – from “health” to “quality of life;” from reactive health to proactive wellness. • While consumer segments may continue to vary in their level of knowledge, their degree of influence and their intensity of engagement in wellness institutions, they now largely share the idea that H+W is about a higher quality of life for longer. This broadened notion of wellness has become a tacit part of culture rather than a lifestyle choice or an alternative movement. • “Feeling well” is driven by personal consumer practices of self-assessment and ongoing self-management. While enjoying fresh and delicious food – supported by, and supporting, good digestion – is today the dominant consumer route to health and wellness, being active (as opposed to more narrowly focused “exercise”), staying connected (with places as well as people) and resting well enable consumers to live the type of lives that they desire. • In 2013, feeling well is understood in terms of “balanced energy.” Three decades ago this phrase may have narrowly connoted new-age spirituality, and it continues to hold something of its legacy meanings connecting mind/spirit and body. Today, however, it has fully migrated, delineating the specific (but still evolving) way in which consumers understand and approach their day-to-day wellness goals.
EXECUTIVE SUMMARYBeyond the big picture • WELLNESS FOOD TRENDSConsumers continue to seek “fresh” foods with signs of less “processing.” These are fluid, consumer-defined concepts, and the relevant cues for what consumers will reject, accept or seek out vary by level of engagement with H+W (i.e., World segment) and evolve over time. How food is made and by whom is likely to gain greater consideration than simply what’s in it, with on-package and at-shelf labeling evolving to meet these requirements. • WELLNESS AT RETAILIncreased reliance in 2010 on discount, dollar and grocery at the expense of more specialized H+W channels has subsided as consumers return some of their business to specialty in 2013. At the same time, products offering wellness distinctions (such as natural or organic) have become so ubiquitous that alternative/specialty channels will need to offer more to maintain their appeal. • WELLNESS AT FOOD SERVICEWith consumers outsourcing more of their food preparation, they bring some of their H+W needs to restaurants and other away-from-home locations. Among other things, this means that consumers enter food service seeking offerings that will meet their self-assessed, personalized needs via customization. Fun and enjoyment are increasingly intertwined with wellness goals, leaving room for indulgent experiences to be perceived as healthy. • HEALTH MANAGEMENT Weight is still top-of-mind but no longer as central to consumer practice and urgency. Conditions whose presence is often assessed via self-diagnosis (especially relating to digestion and energy) have gained salience. What consumers look for in themselves is often conditioned by what they see in others. Because diabetes has gained exposure across social networks, engagement in diabetes prevention has extended to younger consumers. Consumers continue to seek food-based approaches to getting the appropriate vitamins and nutrients in their diets.
The World of Health + Wellness SECTION 02
The Hartman Group’s Health and Wellness World Model The World of H+W is divided into segments with varying intensity of involvement The gap between aspirations and behavior narrows as consumers become more engaged with H+W Coreis the most intensely involved in H+W Inner Mid-level adopt Core attitudes and behaviors but with less consistency and reach Outer Mid-level experiment with H+W but tends to prioritize other concerns Peripheryis the least involved in H+W 13% 21% 41% 25% The Hartman Group’s World of Wellness Segmentation
Demographics do not predict consumer engagement in Health and Wellness 62% Mid-level Base: 2551-Total; n=1139-Male; n=1412-Female; n=741-Millennials; n=627-GenX; n=1000-Boomers; n=183-Silent.
Dimensions of Consumption influence how segments evaluate and purchase H+W products Convenience: Fulfill needs quickly, easily, mindlessly Price: Minimal cost • Brand: Habit, tradition, familiarity • Experience: Emotional, intellectual and symbolic benefits • Expert Opinion: Reliance on experts to justify choices • Fun/Enjoyment: Indulgent, playful and participatory • Knowledge: Banking information to make purchase decisions • Quality: Sophistication in evaluating H+W signs and symbols • Authenticity: Sincerity regarding origins, benefits, commitments • Sustainability: Environmental, social and economic impacts of product lifecycle Dimensions of Consumption for Health + Wellness products and services
Core create and lead H+W trends;Mid-level adopt these trends pragmatically Outer Mid-level Inner Mid-level Periphery Core Price Convenience Brand Authenticity Knowledge Fun/Enjoyment Quality Authenticity Sustainability Knowledge Quality Experience, Expert Opinion Fun/Enjoyment Quality Opportunity Trends The Periphery borrow quality cues from the Mid-level) The Mid-level is influenced by the Core)
Health + Wellness encompasses the physical and the emotional, the tangible and the intangible A1. To me, health and wellness means ... Base: n=2551-Total; n=247-Core; n=551-Inner Mid-level; n=1094-Outer Mid-level; n=659 Periphery
Core and Inner Mid-level are proactively thinking about more health issues • Number of Conditions Managing… • Health Conditions Managing… A7. Are you or anyone in the household concerned with or treating any of the following health conditions? Base: n=2551-Total; n=247-Core; n=551-Inner Mid-level; n=1094-Outer Mid-level; n=659 Periphery. Highlighted segments indicate significantly higher results than all un-highlighted segments, @95% C.L.
While losing weight is top-of-mind, H+W self-perceptions are driven by mood, energy and pain If there’s one thing I’d like to change about my health and well-being, it would be to… Impact of Presence of Conditions on Self-assessed Health and Quality of Life Highest impact Depression Anxiety or stress Fatigue (chronically tired, low energy) Sleep disorder Aches and pain (head or body) High impact Overweight Joint pain/stiffness High blood pressure Arthritis Moderate impact Digestive disorders High cholesterol Diabetes Memory/mind health Asthma Heart or cardiovascular concerns Lower impact Autoimmune Disorder Dermatological/skin problems Sensitivity to irritants Food allergy/sensitivity Sexual disorder Eating disorders Menopause difficulties Statistically no impact Hyperactivity Osteoporosis ADHD Cancer A7. Are you or anyone in the household concerned with or treating any of the following health conditions? Base: n=2551-2013. A9. (Who in household)=“Myself” C1. In general, how would you rate your health? C2. In general, how would you rate your quality of life overall? Pearson bi-variate correlation. Highest: Treating condition x (C1 or C2) > 0.2; High: > 0.15; Moderate: >0.1; Lower: Both <0.1 but still significant @95% C.L. C4. If there’s one thing I’d like to change about my health and well-being, it would be to… - Open-ended answers depicted via Wordle. Base: n=248-Core
All consumer segments confront weight concerns, but from different H+W perspectives D7. How much do you weigh? Please select your current weight (without clothes) in lbs.. D8. How tall are you? Please select your current height (without shoes) in feet and inches. Obesity index: BMI <18.5, 18.5-24.9, 25-29.9, 30+. Base: n=2551-Total; n=247-Core; n=551-Inner Mid-level; n=1094-Outer Mid-level; n=659 Periphery
SEGMENT PROFILESConsumers: Periphery to Core Michelle PERIPHERY Madison INNER ML Renee CORE Mia OUTER ML
SEGMENT PROFILESAdoption pathway Not all consumers necessarily evolve to greater, more intense participation in wellness. But for those who do, this progression often follows a similar adoption pathway of products and practices. Increasing engagement with H+W Avoiding negatives: Sugar, fats, salts HFCS, trans fats, hormones Adding positives (natural/organic): Meat Dairy Dirty dozen produce Other produce Canned Frozen Baby products Lotions and creams Lipstick Other cosmetics Body soap Shampoo Laundry detergent Dish soap Kitchen surface cleaner Bathroom cleaner Window cleaner Garden products
SEGMENT PROFILESPeriphery kitchen Food and beverage… are for fueling the body without eating too much Eating well… is avoiding negatives (high calories, sugar, salt) Eating well… is eating more good things, keeping healthier alternatives available (water, salsa, turkey, home-cooked meals) Food purchases… prioritize lowest price, brand names, convenience
SEGMENT PROFILESOuter Mid-level kitchen Food and beverages… are fuel, but also nourishment Eating well… is avoiding negatives (high calories, sugar, salt, unnatural chemicals) Eating well… is eating more good things (water, foods with recognizable ingredients, organic, sometimes home-cooked meals) Eating well… is making time to enjoy the food and people’s company Food purchases… prioritize price and habit, mainstream brands with “healthy” callouts, some experimentation with fresh/less processed foods
SEGMENT PROFILESInner Mid-level kitchen Food and beverages… are nourishment for now and the future Eating well… is avoiding processed foods and foods that don’t feel good to eat (“empty” foods, HFCS, MSG, GMOs, too much caffeine) Eating well… is seeking more richly nutrient dense, natural ingredients (organic, omega-3s, probiotics) Eating well… is being more mindful; slow, appreciative eating and drinkingmore often Food purchases… prioritize fresh and convenience, cooking from fresh ingredients, aspiration towards homegrown
SEGMENT PROFILESCore kitchen Food and beverages… are the center of a proactive approach to wellness for body, soul and planet Eating well…is avoiding foods whose safety or nutritional content will compromise how the body functions (anything processed, industrial or genetically engineered/modified) Eating well… is seeking foods that are perfectly attuned to body’s needs at any given time (particularly live, raw, nutrient-dense foods) Eating well… is a spiritual relationship with eating and cooking Food purchases… prioritize highest standards for fresh/less processed, local and seasonal, bulk and less packaging
SEGMENT PROFILESPersonal care 47% of Mid-level consumers purchase a natural or organic personal care product monthly B24. Report monthly spending of >0% on “organic, all-natural, or cruelty-free” “Personal care and spa services or products .” Base: n=1645-Mid-level
SEGMENT PROFILESCleaning products 62% of Mid-level consumers purchase a natural or organic household cleaning product monthly B24. Report monthly spending of >0% on “organic, all-natural, or cruelty-free” “Personal care and spa services or products .” Base: n=1645-Mid-level
Changes in one’s own body are the most common motivator for evolution in wellness views and practice 69% 43% AGINGcan present a range of physical and emotional changes that prompt increased participation. PERSONAL HEALTH ISSUESoften serve as a wake-up call. My health condition has changed Having too much stress Having too little energy 8% PREGNANCYand having kids often forces people to take a closer look at their health now and in the future. 47% AMONGPARENTS OF CHILDRENYOUNGER THAN 3 YEARS 29% VICARIOUS HEALTH ISSUESare also a wake-up call. The health condition of a family member worsened. The health condition of a friend worsened. Someone I know died from poor health. 22% THE MEDIAcan provide cultural momentum around Health & Wellness issues. Something I read. A TV or radio program. A4. What caused you to change your views on health and wellness? (Select all that apply) Net of relevant items for each trigger type. Base: consumers that changed their views on what health & wellness means n=1104-Total; N=131-Parents of 0-2 year olds whose views had changed.
Younger consumers are most likely to have changed their health and wellness views in the past year 43% of consumers say they have changed their views on what health + wellness means While Boomers and Silent consumers are more likely to report an aging-related trigger for their changing wellness views, Millennials more often report experiencing personal and vicarious health issues, media and pregnancy-related triggers A2. In the past few years, have you changed your views on what health & wellness means to you? A3. When would you say the most recent change in your views on health & wellness took place? (Asked only of consumers that changed their views on what health & wellness means, per A2) Base: n=2551-Total ;n=741-Millennials 18-34; n=627; GenX; n=Boomers-1000; n=183-Silent.
Consumers are generally optimistic about their own health as compared to others • MIDPOINT C3. How would you compare your overall health to that of other adults in the US? Imagine that every adult in the U.S. were lined up from MOST healthy (on the left) to LEAST health (on the right). Approximately where do you think you would be in this line of all U.S. adults? Base: n=2551-Total
Older cohorts focus on heart and pain; younger cohorts focus on anxiety, depression and sleep A7. Are you or anyone in the household concerned with or treating any of the following health conditions? ‘Treating ‘or ‘Preventing’. Base: n=2551-Total; n=741-Millennials 18-34; n=627-Gen X 35-48; n=1000-Baby Boomers 49-67; n=183-Silent 68+. Highlighted segments indicate significantly higher results than un-highlighted segments, @95% C.L.
Being physically fit and not overweight are top priorities for consumers C5/C6. Which of these areas of your life would you say URGENTLY NEEDS TO GET BETTER and which is CURRENTLY AS GOOD AS YOU WANT? Base: n=2551-Total
The Internet is the dominant information source for Health and Wellness • The overall decline in information sources accessed in 2013 from 2010 suggests that consumers tend to have already incorporated many H+W views and have less need to seek out new information. • 2000 • 2013 What information sources do you use to learn more about your health and wellness products? (2000); What information sources do you use to learn more about health and wellness? (2005); In the PAST 3 MONTHS, which of the following information sources have you used to learn more about health and wellness? (2007/2010/2013). Base: n=2617-2000; n=2492-2005; n=2978-2007; n=2744-2010; n=2551-2013. Note: To achieve a consistent sampling frame, Internet results from 2007-2013 have been adjusted by the number of online users in the U.S. population; 2000 survey was a mail survey; Friend/relative in 2013 includes Online social network.
More engaged consumers seek information from a wider variety of sources Average number of information sources 2.7 Total 3.2 Core 3.2 Inner Mid-level 2.7 Outer Mid-level 2.0 Periphery A10. In the PAST 3 MONTHS, which of the following information sources have you used to learn more about health and wellness? (Select all that apply). Base: n=2551-Total; n=247-Core; n=551-Inner Mid-level; n=1094-Outer Mid-level; n=659 Periphery
Doctors are seen as the most reliable and accurate information source for all consumers 92% of Periphery consumers rely on their doctors for helpful and accurate information compared to 79%ofCoreconsumers Coreconsumers second most relied upon sources are nutritionist/dietitian at 66% A11. In your opinion, do you think you could generally rely on each of these sources for HELPFUL AND ACCURATE information about health and wellness? (Select one response for each row/source). Base: n=2538-Total
Consumer estimates of their wellness spending capture pull of fresh distinctions and offer leading indicators of sales trends B24. For each category of household goods below, please indicate what portion of the LAST 30-DAYS' spending in each category was for targeted “wellness” items. Base: n=2551
Evidence suggests that strong previous growth in spending towards wellness distinctions in several categories is subsiding For each category of household goods below, please indicate what portion of the LAST 30-DAYS' spending in each category was for targeted “wellness” items. Base: n=2920-2007; n=2681-2010; n=2442-2013.Derived by using proportion spent on wellness category on the BLS spending estimates for each year. *Wellness version of each category. For example, for meats, poultry and seafood this would be defined as organic, natural or hormone-free. Inflation rate derived from the BLS ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt
With spending on nondurables down broadly, wellness growth outpaces overall growth only in dairy and personal care Overall category decline Category decline steeper than all nondurables Wellness outperforms category overall B24. For each category of household goods below, please indicate what portion of the LAST 30-DAYS' spending in each category was for targeted “wellness” items. Base: n=2551-Total; n=247-Core; n=551-Inner Mid-level; n=1094-Outer Mid-level; n=659 Periphery. Derived by using proportion spent on wellness category on the BLS spending estimates for each year. 2010 estimates based on Hartman H+W 2010, recalculated with updated BLS data.
While Core consumers account for more than their share of wellness spending, the Mid-level represents two-thirds B24. For each category of household goods below, please indicate what portion of the LAST 30-DAYS' spending in each category was for targeted “wellness” items. Base: n=2551-Total; n=247-Core; n=551-Inner Mid-level; n=1094-Outer Mid-level; n=659 Periphery. Derived by using proportion spent on wellness category on the BLS spending estimates for each year.
Wellness products retain premium image with cost a barrier for consumers B25. Which of the following concerns do you have regarding health and wellness products? (Select all that apply). Base: n=2551-Total; n=247-Core; n=551-Inner Mid-level; n=1094-Outer Mid-level; n=659 Periphery. n=544<$25K; n=279-$25-$34.9K; n=354-$35-$49.9K; n=501-$50-$74.9K; n=260-$75K-$99.9K; n=590-$100K+
Living in a Wellness Culture SECTION 03
HIGHER QUALITY OF LIFE FOR LONGERCultural Transformation, 2000 - 2013 • In the time that we have been tracking H+W, there has been a broadening and deepening of the meaning of H+W from physical to mental and spiritual wellness. • Consumers began to take a more pragmatic, less disciplined and less ascetic approach to H+W by including fun and enjoyment. • Wellness has become a personal practice, with increasing self-assessment, personalization and internalization. • What used to be leading-edge, niche ideas have drifted into the mainstream (e.g., organic, elimination diets). • Today in 2013, there’s a cultural narrative shared by Periphery to Core consumers around an integrated and proactive understanding of wellness. • While some consumers are more knowledgeable, engaged, and influential than others, everyone is talking about feeling well through foods they eat, staying active, being connected, and getting enough rest. • The most engaged consumers are distinguished less by their personal outlook and more by their extension of wellness from personal practice to social project. • Welcome to Living in a Wellness Culture …
HIGHER QUALITY OF LIFE FOR LONGEREvolution of a collective interest in Health + Wellness 2013 We are living in a WELLNESS CULTURE…Wellness is a tacit, embodied experience of higher quality of life for longer Health + Wellness emerged as an alternative movement of the counterculture H+W became an aspirational lifestyle…and converges with Food Culture through FRESH 1980 2000 2020
HIGHER QUALITY OF LIFE FOR LONGERCulture has shifted from a reactive HEALTH paradigm to a proactive WELLNESS culture • Then… • REACTIVE HEALTH • “Do as I say!” • Condition management Externally measured Authoritative Compliance Crisis Quick fixesControl Asceticism • Now… • PROACTIVE WELLNESS • “Know thyself” • Preventative Internally validated Self-assessed Common sense Holistic Integrated Balanced energy Fun and enjoyment
HIGHER QUALITY OF LIFE FOR LONGERWellness is proactive, holistic and integrated Thinking about your own health and wellness, please indicate how much you agree or disagree with each statement – Top-2 box agree. Base: n=2617-2000; n=2744-2010; n=2551-2013
HIGHER QUALITY OF LIFE FOR LONGERWellness is everyday life • Living in a wellness culture • Wellness today is tacit, embodied and experienced in the mundane and sacred realm of everyday life • Wellness is part of culture rather than a lifestyle choice or an alternative movement “Being healthy is cool now.” - Periphery Consumer Outer Mid-level consumer, What Wellness Means to Me
HIGHER QUALITY OF LIFE FOR LONGERWellness is a search for “what makes sense to me” • Being aware and in tune • Consumers researcha variety of specific topics – food, fitness, sleep, fun – to see what “everyone” is saying • But ultimately, they rely on their own common sense to make sense of all the noise about H+W “I like using Pinterest to see what everyone else is doing…” - Outer Mid-level consumer Outer Mid-level consumer, My Paleo Board of Ideas
HIGHER QUALITY OF LIFE FOR LONGERWellness is a personal practice • A wellness toolkit • Wellness is a mindful and intentional approach to eating being active resting staying connected … • …in order to achieve balanced energyfun and enjoyment “Everything we do, whether it is eating, working, creating, exercising, relaxing, sleeping, making love, reading a book, listening to music, or just zoning out with the television, has some unavoidable impact on our physical, emotional, spiritual, or mental health.” - Inner Mid-level Consumer Inner Mid-level consumer, What Wellness Means to Me
HIGHER QUALITY OF LIFE FOR LONGERWellness is staying connected with people, places and pets My best friend, Jenn. We shop together, cook and work out together, play together. Laughter and friends are what feeds my spirit! • Social wellness experience • Consumers are aware of the role their social networks (friends, family AND pets) and their neighborhood and homes play in their wellness • Wellness place-making includes the people, places and pets with which consumers have a connection DeKalb Farmers Market: Shopping here encourages healthy eating. I appreciate the transparency – everything has the country of origin. My boyfriend and our dog, Loopy: They both play a huge role in my life and give so much happiness and warmth. I don’t know what I’d do without these guys! “As much as anything else, my habitat contributes to my overall health and wellness. I have lived in this part of the world all my life.” - Core consumer Rawesome Juicery: The food is incredibly fresh, fairly priced, and is some of the tastiest around. I feel satisfied and healthy when I eat here, and I feel good about supporting a local business.
HIGHER QUALITY OF LIFE FOR LONGERWellness is future directed • Aging younger, younger aging • As we live longer and better, younger consumers are thinking sooner about how to keep on living well • And everyone is rethinking the inevitability of age-related decline “People don’t take care and start to feel bad and think it’s because they’re getting old. But it’s because they’re not paying attention and not taking care of themselves.” - Core consumer Core consumers, Wellness is higher quality of life for longer
HIGHER QUALITY OF LIFE FOR LONGERWellness is a feeling that is self-assessed • There’s no arguing with “how I feel.” • In a world of mutable information, “how I feel” is the most reliable source of H+W information and a guide for taking action • Consumers are mindful of what their bodies want/need and intentionalin their choices • They are experimenting with new ways of eating, exercising, resting, and socializing in order to collect new experiences and find what works for them “Know thyself” “Your body tells you what it needs, if you just pay attention.” - Outer Mid-level consumer