The indulgent food market now embodies much more than the products traditionally regarded as 'treat' items such as confectionery, cakes and biscuits. The indulgence trend has widened, in line with changing consumer demands, to encompass premium, gourmet, fine and speciality foods.

The rate of new product development (NPD) in these sectors has risen rapidly in recent years, as time-pressured, stressed, and tired consumers seek pleasure, relaxation and self-reward through certain food and drink products. Consumer awareness of nutrition has also resulted in a raft of new healthy indulgence products.

People are becoming more self-indulgent in their eating and drinking habits, which has created marketing and NPD opportunities for food manufacturers, suppliers and retailers. The self-reward culture is prevalent, and will continue to grow worldwide over the next five years, as consumers balance healthy eating habits with the occasional treat.

This second edition report investigates the indulgent, speciality and premium food markets; three growing sectors that tap into the major trends influencing consumer purchase decisions in the 21st century. The report focuses on trends, drivers, innovation and marketing within these sectors, with forecasts to 2013 and considerations for brand owners also provided.

Chapter 1 provides an introduction to indulgent, premium and speciality food, including definitions, product attributes and combining the three sectors to create an exclusive brand.

Chapter 2 looks at building successful indulgent, premium and speciality food brands, including retailer-led promotions, celebrity endorsements, targeting children and changing target audience and/or product positioning.

Chapter 3 focuses on the healthy indulgent food market, including product attributes, trends driving the market, portion control, virtuous ingredients, indulgent flavours and new product development highlights. This chapter also offers a best-practice case study of the Greencore's Pudz brand.

Chapter 4 considers trends such as sustainability and ethical consumerism, provenance and authenticity, and drivers such as cash-rich time-poor consumers, increasing obesity levels and the rise of the premium retailer. This chapter also includes a best practice case study of the UK-based premium chocolate retailer Montezuma's.

Chapter 5 analyses the market values of speciality foods and healthy indulgent foods to 2013, and predicts premium food and drink consumption to 2013. It also investigates two categories that are commonly associated with indulgence, premiumisation and speciality food producers: confectionery, and bakery and cereals.

Chapter 6 identifies five top strategies for consideration by manufacturers and retailers in the premium and indulgent food market.

Executive summary

Chapter 1 Introduction to indulgent, premium and speciality food
Defining indulgent food
Attributes of an indulgent food product
Defining premium food
Attributes of a premium food product
Defining speciality food
Attributes of a speciality food product
Creating an exclusive brand

Chapter 2 Building successful indulgent, premium and speciality food brands
Introduction
Premium indulgence versus premium healthy indulgence
Combining indulgent and premium brand attributes
The ‘Because I’m worth it’ phenomenon
Learning from the personal care industry
Strategies of leading personal care brands
Retailer-led promotions
Celebrity endorsements
Targeting children
Schools – any call for premium or indulgent brands?
Changing target audience and/or product positioning
Considerations for brand owner

Chapter 3 The healthy indulgent food market
Introduction
Attributes of a healthy indulgent food product
The healthy indulgent food scale
Trends driving the healthy indulgent food market
Portion control and the single-serve concept
Virtuous ingredients and indulgent flavours
Low and light
Impact of healthy indulgence on innovation
Sandwiches – crossing the barriers
Crisps – how much healthier can they get?
The reinvention of Walkers Crisps
Frozen desserts – innovation to ease the conscience
Best-practice case study: Greencore’s Pudz brand
Focus on raw and living foods
Indulgent and healthy NPD highlights
Considerations for brand owners

Chapter 4 Market trends and drivers in indulgent, premium and speciality foods
Introduction
Tackling the trends influencing indulgent, premium and speciality foods
Sustainability and ethical consumerism
Provenance and authenticity
Best practice case study: Montezuma’s
Drivers shaping the indulgent, premium and speciality food market
Rising number of premium and speciality retailers
The growing number of foodies
Importance of single person households and ‘empty nesters’
Increased affluence around the world
Rising obesity levels
Profitable private label
Lack of retail understanding limits sales of speciality foods
Are premium and speciality brands getting too big for their boots?
Indulgent, premium and speciality packaging packs a punch
Getting the whole package right
The minimal look will be big
Sustainable packaging can be profitable
Considerations for brand owners

Chapter 5 Emerging profit opportunities by region and category
Introduction
The speciality food market to 2013
Europe
The US
The premium food market to 2013
Healthy indulgent food market growth to 2013
German sector set for stagnation
Spanish love of functional foods drives healthy indulgent growth
Italy – the most successful healthy indulgent market in Europe
US consumers enjoy best of both worlds
UK consumers learning to love healthy indulgent food
Category analysis
Bakery and cereals
Confectionery

Chapter 6 Five top strategies for indulgent, premium and speciality food brands

Introduction
Strategy 1: Minimise NPD timelines and cut red tape
Strategy 2: Remember your roots
Strategy 3: Keep it as authentic as possible
Strategy 4: Be seen to be thinking about the environment
Strategy 5: Don’t lose sight of your target audience

List of figures

Figure 1: Chocolate Trading’s 22-carat gold chocolates
Figure 2: Combining indulgent, premium and speciality to create an exclusive brand
Figure 3: The Royal Warrant – a mark of luxury for British brands
Figure 4: Wafer Thin Turkey Breast from Bernard Matthews, with packaging revamped for a healthier image
Figure 5: Burnt Sugar positioned as pure indulgence for adults
Figure 6: Deeply Dark – Cadbury Schweppes focuses strongly on confectionery for adults
Figure 7 The healthy indulgent food scale
Figure 8: Carte D’Or Greek yoghurt and honey ice cream
Figure 9: The reinvention of a traditional UK brand – Walkers crisps
Figure 10: Pudz chocolate pudding sparks interest in the freezer aisle
Figure 11: Greencore introduced the ‘ice-cream van’ to encourage sampling of the Pudz range
Figure 12: Australian Fruit Pyramids promote natural ingredients and authentic production
Figure 13: Montezuma’s – premium retail and trade brand
Figure 14: Premium and speciality products target at-home entertaining

List of tables

Table 1: Leading UK frozen desserts brands, value and growth, 2006-2007 (GBP ‘000s and %)
Table 2: Total UK frozen desserts, sector value and growth, 2006-2007 (GBP ‘000s and %)
Table 3: Trends influencing the indulgent, premium and speciality food markets
Table 4: Drivers influencing the indulgent, premium and speciality food markets
Table 5: Total speciality food and drinks market value, Europe and US, 2005-2013 (US$bn and %)
Table 6: Total premium food and drink consumption occasions per year, Europe and US, 2005-2013 (no. of occasions and %)
Table 7: Total healthy indulgent food market value, Europe and US, 2005-2013 (US$bn and %)
Table 8: Total bakery and cereals market value, Europe and the US, 2005-2013 (US$m and %)
Table 9: Total confectionery market value, Europe and the US, 2005-2013 (US$m and %)