‘Action on Sugar’ Unlikely to Give Reduced-Sugar Food a Boost
Opinion | 16 Jan 2014
For many consumers the start of a new year often equates to a new diet, or an attempt to lead a healthier lifestyle. Not often does it affect the global packaged food and beverage industry. In January 2014, the global campaign Action on Sugar was launched in a bid to reduce the average consumer’s sugar intake through calling on food manufacturers to reduce the sugar content of food and drink products by 30%, primarily through stealth.
This is a similar approach to that taken for salt a few years ago. Stealth reduction, for foods in particular, is the best way for manufacturers to retain their consumer base as consumers are, for the most part, unaware the recipe has changed. However, products which have undergone stealth reformulation will not be classified as reduced-sugar and hence will not give reduced-sugar foods a much-needed boost. Our latest health and wellness research forecasts reduced-sugar packaged food to post a modest CAGR of 2% in constant terms over 2013-2018.
Sugar linked to obesity, Type 2 diabetes, cardiovascular disease and poor oral health
Sugar has come under attack due to its link with obesity, cardiovascular disease, Type 2 diabetes and a deterioration in oral health across all ages. Euromonitor International’s Countries & Consumers data show that globally diabetes affected 660 million people in 2012, with the problem not restricted to developed markets. Heavily criticised “Western diets” are increasingly being adopted in emerging markets, hence driving the prevalence of diabetes in those markets too.
Sugar - more than flavour of the month
The pressure on food manufacturers to reduce the sugar content in food and drink is nothing new, and nor will it be a fad. It has been steadily increasing over the past two years, as noted in our ongoing health and wellness analysis. We have looked at sugar replacing fat as the new evil, the inescapable sugar-fat seesaw, the need for reduced-sugar products and the UK’s saturated fat responsibility deal, at a time when sugar should be the main concern.
Action on Sugar to follow CASH framework
Action on Sugar, led by industry experts, aims to reduce the sugar content of food and drink with added sugar by 30% over the next 3-5 years. The campaign will follow a similar framework to theConsensus Action on Salt and Health (CASH), which has led to the UK industry slashing salt levels by 15% in 10 years.
Focus on hidden sugars
However, the pressure up until now has not been driven by a global campaign. This campaign aims to reduce the ‘unnecessarily high’ levels of sugar in food and drink. It is not just restricted to those foods which are obviously high in sugar, such as confectionery, fruit juice and carbonates, but also includes those which contain ‘hidden sugar’, for example pasta sauces, bread and yoghurt. For example, the sugar content of an average slice of bread can be as high as 3g, while a 150g jar of pasta sauce can contain as much as 13g. This 30% reduction is not a simple task as sugar is used as a flavouring and a bulking agent in foods. Mars, for example, has already stated that after reducing the calorie content of its Mars bars to 250kcal, it does not see how it can further lower the sugar content.
Reduced-sugar food unlikely to witness a large spike in growth
The stealth approach is favoured by manufacturers as many consumers will be unaware that their favourite food and drink products have been altered and will hence continue to buy them. However, this method of reformulation will not result in these products being classified as reduced-sugar.
If reduced-salt food in the UK – the main focus area for CASH – is used as a predictor of the effect on reduced-sugar food, the prospect is not one of strong growth. As better-for-you products are less appealing due to the fact they are considered less flavoursome, reduced-salt packaged food in the UK recorded a constant value CAGR decline of 1% over 2008-2013, equivalent to a loss of £7 million.
Reduced-sugar beverages will fare better
Whilst stealth is an option for reduced-sugar beverages - Fanta for example has been successfully reformulated by stealth - they will fare better than packaged food as it is less important. Consumers are already turning to low-calorie alternatives, particularly as ‘natural’ sugar replacers such as stevia are increasingly being used by leading manufacturers and smaller players alike. The category is set to record absolute growth of US$4.8 billion over 2013-2018. Nevertheless, no matter whether reformulation is done through stealth or not, in order for Action on Sugar to be fully adopted by manufacturers, consumers will have to lose a little bit of their sweet tooth.
For further insight, please contact Diana Cowland, Senior Health and Wellness Analyst at
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