Women are hungry for health foods

The report from Packaged Facts​, a division of MarketResearch.com, entitled The US Market for Women's Foods and Beverages​ estimates that annual retail sales of foods and beverages marketed 'for women only' or 'formulated for women's health' reached $4.6 billion in retail sales in 2004, up 11.1 percent from $4.2 billion in 2003.

The compound annual growth rate between 2000 and 2004 was 80.3 percent.

Foods and beverages marketed with 'women in mind' were excluded from the retail sales figures because despite aiming to appeal to female concerns and emotional sensibilities, they may also appeal to men, especially male students.

What is more, the marketing of products with a gender in mind is not a new strategy, whereas the 'for women only' and 'formulated for women's health' segments are.

The outstanding growth over the next five years would seem to indicate an explosive entry for these products, and growth is expected to continue over the next five years, albeit at a more measured pace. By 2009 the sector is expected to reach $7.7 billion, with a compound annual growth rate of 10.6 percent over the period.

Women are identified as one of the most important consumer groups for functional foods because they have more specific health and nutrition needs than men, such as during pregnancy, post-partum, menstruation and menopause.

In addition, women are more likely than men to worry about virtually every health problem, says the report. "This can be interpreted as women are more likely to seek out solutions to health concerns."

But despite having different nutritional needs to males from puberty onwards, women typically only start to take an interest in nutrition from the age of 25, and sometimes even later. For this reason, the report takes target female consumers to be those aged 25 years and above.

More women now work outside the home than ever before, which the report authors say means they are increasingly time-pressed.

"This represents an opportunity for on-the-go meal solutions - bars and beverages - that meet women's unique nutritional needs,"​ they wrote.

On top of this, 77 percent of women say they still have sole responsibility for all the grocery shopping for their household, according to the Food Marketing Institute - a statistic which means there is a much greater gain to be had from targeting women's needs than men's.

At the other end of the age scale, 58.8 percent of the adults over the age of 65 are female, according to the 2000 Census. And just preceding this age group comes the baby boom generation (those born between 1946 and 1964), which is showing itself to be a force to be reckoned with.

"In general, baby boomers have higher disposable incomes than other demographics,"​ wrote the report authors. "As a result, this group largely dictates the products that are successful in US markets."​

By 2010, a third of all Americans will be aged 50 years or over, so the potential to deliver products for women who want to stave off the effects of aging on their health is enormous.

For food manufacturers, introducing gender-specific foods could help revitalize mature categories that are in danger of becoming commodities, such as cereals and juices.

Interestingly, the largest share of the women's market in 2004 was cereal, at $2.2 billion, followed by beverages with $0.96 billion.

In the light of this, the report advises marketers to "use medically beneficial formulations to strengthen brand differentiation, expand market share, bring new users into the fold, and increase consumption amongst established users. They can also invigorate lagging brands, create opportunities for line extensions and compete more effectively with store brands."

Finally, the report suggests making a play to women's tastes and predilection for good-tasting comfort foods:

"Women believe that consuming chocolate makes them feel better, and therefore, turn to chocolate for mood enhancement. This makes chocolate an ideal flavor for foods designed specifically for women."​