The FMCG and grocery sector in the Asia Pacific region, and around the world, continues to make efforts to address the most pressing health and wellness issues for consumers and communities.
According to the fifth edition of the annual Health & Wellness Progress report produced by Deloitte Global in collaboration with The Consumer Goods Forum (CGF), significant improvements across key commitments were made in 2018 compared to the previous year, and in areas that include product reformulations and responsible marketing to children.
Key report findings, based on a 2018 survey of 75 leading industry players, include:
- Over 98% of responding companies said they had reformulated at least some part of their product portfolio – and since 2015, over 320,000 products have been reformulated
- Over 70% offered low-salt or low-sugar versions of their products
- 79% said 81%-100% of their food and beverage product packaging displayed key nutrient information
- Respondents partnered with education authorities on health and wellness initiatives covering over 550,000 schools around the world
- Almost two million employees participated in health and wellness initiatives, up from 1.6 million in 2017 and 1.3 million in 2016
- 39% of respondent companies are based in the Asia Pacific region.
According to Vanessa Matthijssen, Deloitte Australia National Consumer Products Leader: “FMCG and grocery retailers have an increasingly important role to play in supporting healthier lives of people, and addressing evolving consumer needs in a meaningful way.
“This research provides valuable insights into how well the consumer goods industry is contributing to the health and wellness of their consumers, employees, and the communities in which they operate.”
In 2011, the CGF developed three resolutions agreed to by members. The latest survey finds that progress against these has been steady since the positive change agenda was initiated in 2010:
1. Access and availability of products and services
99% of respondent companies said they were implementing programs that offer consumers a range of healthier products, and 93% said they have a policy or corporate statement aligned with the resolution.
2. Product information and responsible marketing
100% of companies surveyed said they had activated programs to provide transparent, fact-based information, and 76% reported they had altered marketing practices to implement responsible marketing.
3. Communication and education about healthier diets and lifestyles
Every company surveyed said they had activated communication and educational programs. A further 80% said that they have a policy or corporate statement that aligns with the resolution and 93% are disclosing their policies to the public, an improvement over last year (85%).
And in 2014, four commitments were set, with progress also promising:
A. Make company policies public on nutrition and product formulation
78% of companies committed to making their policies on nutrition and product formulation public, up from 61% in 2017
B. Implement employee health and wellbeing programmes
85% reported they had implemented relevant programmes, up from 78% last year, and represents a 55% improvement from 2015. A further 11% said they would launch programmes in 2019.
C. Industry-wide implementation of consistent product labelling and consumer information to help consumers make informed choices and usages
58% of companies reported better labelling practices, up from 37% in 2017, and a further 34% have a plan in place and would meet the objectives in the near future.
D. Stop marketing communications to children under 12 for food and beverage products that do not fulfil specific nutrition criteria based on scientific evidence and/or applicable national and international dietary guidelines
76% reported they had altered marketing practices accordingly, up from only 58% of respondents in 2017. Television advertising has been the main target area, although companies are also closely monitoring their internet and social media messaging.
“Our increasingly informed consumers are making healthier lifestyle choices and are expecting manufacturers and retailers to respond accordingly,” Matthijssen said. “This also extends to transparency and trust around product offerings, as well as sustainability of operations and supply chains.
“Australian FMCG and grocery businesses are certainly aware that health and wellness can be an important source of added value, and that transparency around it can drive further trust and loyalty.
“The Health & Wellness Progress Report shows strong progress has been made globally, and it’s fair to say that local operators in Australia, as well as across the Asia Pacific region, are also increasingly committed.
“There’s plenty more to do, of course, but health and wellness initiatives are no longer an option, they are social as well as competitive necessities, and responding in the right ways to market demands and trends will increasingly drive and define success.”
