Consumer Trends in Enhanced Sports Performance

Market Segmentation is Key to Success

Profiling the Sports Nutrition Market

Active Nutrition

Market Opportunities

• Women

• Weekend warriors

• “Everyman” consumers pursuing individual sports (walking, yoga)

Segmenting the Sports Nutrition Market

By Motivation

• Medical need or strong desire

I need it to live/perform my best!

– Medical (sarcopenia, diabetes, obesity)

– Fitness enthusiast (marathon runner, body-builder)

– Need-driven, highly motivated to try new products

– Puts functional benefit before taste/cost

– This group looks for good science

By Motivation

• Healthy lifestyles (Aspirational) I want to extend my “healthy living span,” not my life span!

– Early adopters of new benefits/products

– Gravitate to premium brands; value choice

– Loyal to effective products & good outcomes

– High repeat purchases

By Motivation

• Healthy lifestyles (Aspirational) I want to extend my “healthy living span,” not my life span!

– Also interested in science

– Demand leaner, high-quality sources of protein

– Willing to try novel sources (hemp, peas, crickets)

– Most new sports nutrition concepts launch here

By Motivation

• Mass appeal

I want cheap, convenient food that tastes good!

– Not as interested in health benefits

– Price-sensitive

– Not loyal

– Think of protein as a meal

– Non-meal proteins now appealing to mass market

– Sports nutrition brands (Muscle Milk) capitalizing on general fitness craze

By Lifestage

Sports nutrition products vital for all ages, but needs vary

2013 IFIC Food and Health Survey 0% 20% 40% 60% 80%

Children under 12

Teens 13-19

Women aged 20-54

Men aged 20-54

People aged 55+

Pregnant women

2012 Survey Are you interested in Sports Nutrition products?

By Lifestage

Millennials

I want products that fit easily into my desired lifestyle!

– Drinks, RTDs and bars

– Shop more in convenience settings

– Energy (62%)

– Hydration

– Pre and post-performance

– Weight loss

By Lifestage

Boomers

I think of myself as 10-13 years younger than my age!

– Energy (64%)

– Exercising both in the gym and outside

– Motivated to maintain endurance longer

– Want to continue doing their daily activities

– Weight loss motivated by:

• Age-related weight gain

• Onset of type 2 diabetes

Is 60 the new 40? Boomers think of themselves as 10-13 years younger than their chronological age (Image created by BrandHive for DuPont)

By Lifestage

65+

I have specific challenges

– Muscle wasting (Sarcopenia) happens naturally

– Injuries occur without warning

– Don’t want drinks (frequent urination is a problem)

– Don’t want hard chewy bars (success with soft cookies)

– Not worried about weight (don’t respond to satiety message)

– More interested in protein for bone and joint health than other sectors

Active Nutrition Segments

Actively Tuned In

• Dream customers

• Engaged, active, aware

• Health & fitness minded

• Science and clean labels

Active Nutrition Segments

Performance Driven

• Young and motivated

• Competitive

• Work hard – play hard

• Early adopters

• Looking for functionality

Active Nutrition Segments

Gracefully Maturing

• Concerned about healthy aging

• Face specific health issues

• Bone, joint, cognition

• Protein as entry point

Active Nutrition Segments

Driven to Lose

• Managing weight

• Peak of life activity

• Good diet plus exercise not always possible

By Gender

Males

I want to continue doing everything I used to do!

• Lean muscle mass and strength

• 40+ men need more help losing weight

• Workout images are fine, just not extreme body builders

• Prefer weekend warrior, active lifestyle

By Gender

Females

I’m interested in Appearance Management

• Take protein out of the locker room and bring it into the yoga studio

• Women want their own product imagery

• Make it taste so good, it’s an indulgence, even if it’s healthy

• Energy beats out weight loss

• Weight loss still a motivator

• 40+ women want to maintain lean muscle mass (no flabby arms)

Trends

All Day Long

• At breakfast

– Kellogg-owned Kashi & Nutrigrain cereals touting protein

– Protein-fortified yogurt

• Meals

– Protein meal replacement bars

– Campbells capitalizing on soups accepted as protein source

• Snacks

– Better 4 you

• Before sleep

Online Shopping Increases

• Part of mainstreaming, shoppers look for sports nutrition online

• Channel growth from 9% to 16%

• Sports Nutrition share of total internet sales higher than any other Consumer Health category, including VDS, OTC and WM

Cleaning House–GMPS

• Dangerous substances scaring consumers

• MHRA sweep found 84 energy & muscle gain products w/ “dangerous” ingredients (steroids, stimulants, hormones)

• Countering by promoting GMP-compliance and NSF certification on packaging

• Clean label launches

– Vitamin Shoppe’s True Athlete

– Douglas Labs’ Klean Athlete

Summary Observations

• Category in evolution

• Need-driven category

• Rise of “everyman”

• Protein as entry point

Summary Observations

• Millennials vs. Boomers

• Beverages dominate

• New messaging emerging

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