January effect does not last, suggests research
Year's sales boost but in most cases, higher sales do not last,
suggests research released by ACNielsen.
The findings, presented last week at a consumer packaged goods conference, were based on ten label-claim segments analyzed by the market research firm through its LabelTrends service.
All but one enjoyed sales gains in the first four-week period of the New Year compared with the previous four-week period. Only the reduced sodium segment declined.
And, in all cases except one, sales slipped back in the second four-week period of 2005. The reduced sugar segment was the only one to experience continued gains.
"Our research shows the roller coaster people ride as they attempt to eat more healthily," said Alice Fawver, senior vice president of marketing at ACNielsen US.
"Year-end food-centric holidays like Thanksgiving and Christmas seem to bring about something of a healthy-eating hiatus, followed by a short-term spike in buying healthier products that likely coincides with New Year's Resolutions. Clearly, there's a lot of room to grow in encouraging people to make healthy eating a way of life."
Of the ten label-claim segments analyzed by ACNielsen, the low/no fat segment is the largest in terms of dollar volume. In 2004, sales of such products topped $32 billion, far exceeding sales of the second-largest segment - products offering low and no sodium.
The Carb Conscious segment registered the strongest year-over-year sales gains in 2004. However, most of those gains took place in the first half of 2004, with sales moderating in the second half. Sales continued declining until the first four-week period of the New Year.
Many of the health-benefit segments experienced strong levels of new product introductions last year. For example, manufacturers introduced over 3,000 new no/reduced fat items in 2004.
