Better health, lower premiums?

A majority of U.S. adults say they would support employer-provided financial incentives as part of their health insurance benefits in exchange for proactively living a healthy lifestyle, according to a Wall Street Journal Online/Harris Interactive Health-Care Poll. The survey also shows that many adults would support differences in insurance costs for those who compromise their health and safety, such as if they are overweight, do not exercise regularly, do not wear seat belts, or if they smoke or drink heavily.

Below are the results of the online survey of 2,007 U.S. adults conducted by Rochester, N.Y.-based Harris Interactive between December 12 and 14, 2005 for the Wall Street Journal Online’s health industry edition.

To alleviate soaring health insurance costs, some companies are starting to cover expenses to help their employees kick smoking and addiction problems, control their weight and health and practice safe driving habits. According to the poll, while majorities say they would favor employer-provided financial incentives as part of their health insurance benefits to employees who participate in various health and wellness programs, women, seniors and those with higher education and incomes appear to be the biggest proponents of these programs.

Women are more likely than men to say they would favor financial incentives to employees who join a stop-smoking program (74 percent vs. 68 percent) and join a gym (62 percent vs. 58 percent). Seniors are more likely than the overall adult population to say they would favor incentives for employees who join a stop-smoking program (77 percent vs. 71 percent), get counseling for alcohol, gambling or drug addiction (78 percent vs. 70 percent), take a course on safe driving (76 percent vs. 67 percent) and participate in an educational program to help manage a chronic medical condition like asthma, diabetes or migraines (73 percent vs. 66 percent).

Those with a postgraduate education are more likely than the overall adult population to support financial incentives for employees who join a stop-smoking program (80 percent vs. 71 percent), participate in an educational program to help manage chronic medical conditions (75 percent vs. 66 percent), join a weight reduction or weight management program (76 percent vs. 64 percent) and join a gym (73 percent vs. 60 percent).

Those with incomes of $75,000 or over are more likely than those with incomes less than $15,000 to favor financial incentives for employees who join a stop-smoking program (79 percent vs. 60 percent), participate in an educational program to help manage a chronic condition like asthma, diabetes or migraines (75 percent vs. 60 percent), join a weight reduction or weight management program (74 percent vs. 59 percent) and join a gym (68 percent vs. 48 percent).

In addition, majorities of U.S. adults favor different levels of insurance premiums, co-payments or deductibles for those who smoke (63 percent), drink heavily (57 percent) or do not wear their seat belt (62 percent). Despite research that shows obesity and lack of exercise lead to health complications and high medical costs, pluralities say they would oppose a difference in insurance costs for those who are overweight (45 percent) and those who do not exercise regularly (47 percent).

Support for insurance rates that take these health factors into account is more likely to come from men and those with a high level of education. Men are more likely than women to favor differences in insurance rates that are based on one’s weight (37 percent vs. 23 percent) and the inclusion of regular exercise in their daily routine (31 percent vs. 21 percent).

Those with a postgraduate education are more likely than the overall adult population to say they would favor different rates based on whether or not someone smokes (81 percent vs. 63 percent), wears a seat belt (75 percent vs. 62 percent), is overweight (42 percent vs. 30 percent), drinks heavily (68 percent vs. 57 percent), or exercises regularly (34 percent vs. 26 percent). For more information visit www.harrisinteractive.com.

Hispanic youths are avid Web users

Youth must be served, particularly in Spanish. That is the message of a report, “Hispanic Youth Online: Language and Culture Define Usage,” from New York research firm Emarketer. The Hispanic youth market is one of the toughest of all consumer demographic groups to understand. Hispanic people in the U.S. share a common language but come from many countries. Some are first-generation immigrants, others are the children of immigrants and still others have grandparents or great-grandparents who were born in the U.S. “Some speak only Spanish; others barely know the language. Still others use Spanish in some environments, English in others, or a mix of the two called Spanglish,” says Debra Aho Williamson, eMarketer senior analyst and author of the report. “Many Hispanic youth live in two worlds: one dominated by the culture and traditions of their family history, and the other awash in the iPods, MySpaces, mobile phones and hip-hop music of the general youth culture.”

There were 15.7 million Hispanic Internet users in the U.S. in 2005, according to eMarketer. This total will rise to 16.7 million in 2006 and by 25 percent, to reach nearly 21 million, by 2010. “This means that by 2010 the number of Hispanic Internet users will approach the number of African-American users,” says Williamson.

In addition, the U.S. Hispanic population is young, particularly online. EMarketer estimates that, in 2005, there were 9.1 million Hispanic Internet users under the age of 35 and projects that this will rise to 12.1 million in 2010. “The Hispanic youth explosion doesn’t show signs of slowing, at least in the near term,” says Williamson. “By 2010, when the median age of the U.S. population is expected to be 36, the Hispanic median age will be just over 27, and in 2010, one-third of all Hispanic people in the U.S. will be under 18.”

In many respects, the Hispanic youth market looks and feels like the greater youth market. Blogging, mobile phones, social networking, music and entertainment are all popular activities. “Hispanic youth use the Internet more than older Hispanic-Americans,” says Williamson. “They are also more likely to say that the Internet has had an impact on their lives.”

For Hispanic youth, there’s an added dimension that sets them apart from the general market: Their cultural heritage and their language choices make for multiple identities, both online and off. Today, the media message to young Hispanic-Americans is, “You don’t have to speak Spanish to feel Hispanic.” They hold their heritage in high regard and make an effort to preserve it regardless of how much Spanish they speak. For more information visit www.emarketer.com.

A new product was born every three minutes in 2005

Hot on the heels of a record-breaking product launch year, companies are exploring a vast range of innovation for 2006. According to the Global New Products Database from Chicago researcher Mintel, more than 156,000 new products took their spot on store shelves around the world last year. This number equated to approximately one new product introduction globally every three minutes in 2005.

“Globally we have seen a significant rise in variety of products,” says Lynn Dornblaser, director of Mintel Custom Solutions. “Consumers are looking for more products that address their individual needs, and this is resulting in more product offerings. There is a particular focus on catering to the aging consumer, specifically in the non-foods product categories.”

The most active category in food and drink was beverages, carrying close to a fifth of the launches, followed by bakery (12 percent) and confectionery (11 percent). On the non-food product front, more than 68,000 new products were launched internationally with cosmetics, skin care and hair care leading the way. Food experienced close to a 10 percent increase in launches from 2004, where non-food product introductions remained relatively level to the previous year. In the U.S. alone, more than 16,000 new food products were introduced. In addition, there were more than 13,000 non-food products launched in the U.S., with cosmetics and skin care innovations driving the numbers.

There are several new and evolving trends that are predicted to impact product innovation for 2006. Age-defying treatments, increases in portion control, brain-power foods, and “just for you” customized products are all among the trends expected to make strong impressions on the consumer packaged goods industry.

With the aging population experiencing global growth, companies have a key opportunity to focus their efforts on this newly rediscovered consumer group. Displaced for several years by youth marketing initiatives, marketers are now banking on the senior market for non-food products. However, age-focused food is a generally untapped area. Mintel has recently tracked a couple of product examples that show the possibilities in the category. In Japan, home of the largest senior population in the world, new, easier-to-chew foods such as Kameda Seika’s rice porridge are being launched. Recently, Gerble chocolate biscuits were launched in Europe, with the claim that they are formulated for the dietary needs of seniors.

Companies worldwide are battling with new anti-aging skin care technologies, expanding on the massively successful category. Neutrogena and Oil of Olay in the U.S. have both recently launched home microdermabrasion systems, positioned as skin-renewing products. But anti-aging cosmetics are moving into anti-tiredness as well. “Some new products are focusing on battling tiredness, a key trait that can actually accelerate the skin aging process,” says Dornblaser. “Products such as L’Oreal Europe’s Infallible foundation are claiming to resist the signs of tiredness, which can be felt at any age. It presents more preventive versus reactive options for consumers.”

Portion control is expected to grow among the new product ranks. The Kraft 100 Calorie Pack made a strong impression over the year, and Frito-Lay introduced the Doritos 75 Calorie Snack Pack in the U.S. This trend is expected to move away from snacks this year into other food categories. In addition to eating less, consumers are also being treated to new ways to get their needed nutrients. Several products that emphasize healthy balance have hit shelves, including Balance Pizza in Germany (touting reduced calories and added fiber).

“Health is now a top priority for product developers,” Dornblaser says. “As consumers embrace more organic and specialty products, mainstream consumer packaged goods manufacturers need to compete with products that promote wellness and overall care for body and soul.”

As consumers get healthier globally, they also are getting wiser. Omega 3, a fatty acid said to enhance brain function, is making as strong showing in new food introductions. Several products are targeting youth, including iQ3 Brainstorm! Cereal and Fruit Bars in the U.K., promoting concentration, mental function and eye health; and Nestlé’s P’tit Yoco Omega 3 snacks from France, with ingredients claimed to be essential for children’s brain power. Mintel predicts that added focus will be placed on more brain-boosting products.

In the non-food category, customized products are making a big industry splash. These products reflect the changing wants and needs of consumers, such as the new variety of Mademoiselle Bigoudi skin care products in France. Targeting consumers who want personalized treatments, each system is designed for the individual consumer’s needs. The face creams can be customized by skin type or even specific protection, such as the Cigarette Smoke Protection formula. Even toilet paper is catering to individual preferences, with the Renova debut of black toilet paper in Europe. Outside of the home, men and women can get sex-specific scents from Ambipur car fresheners in Portugal. For more information visit www.mintel.com.

Health and wellness trends offer opportunities for marketers

The Natural Marketing Institute (NMI), a Harleysville, Pa., consulting and research firm, has released its Top 10 list of health and wellness trends for 2006, based on findings from its various research sources including the Health & Wellness Trends Database, the Supplement/OTC/Rx Database and the Healthy Aging/Boomer Database.

1. Changing demographics create health and wellness opportunities. Shifting demographics such as household size, age, gender, lifestage and ethnicity present new opportunities across many health and wellness products. Generational shifts among matures, Boomers, Gen X, Gen Y and millennials will dictate changes in marketing and product offerings.

2. Organic versus natural: the balance of price and benefits. While the marketplace is experiencing many new organic introductions from mainstream brands, including private-label products, finding the optimal balance of price, benefits and consumer understanding levels will be the determining factor in consumer choice between natural and organic products.

3. Energy and vitality: future platforms for growth. Look for an expansion of energy and vitality platforms across a variety of categories and brands. Opportunities abound as concepts related to sustained energy, low-glycemic and others help redefine the market.

4. Ingredient/nutrient drivers. 2006 will see the continued propagation of specific ingredient/nutrient platform drivers across food/beverage and supplements, including, for example, omega-3, protein, gluten-free, low sodium, probiotics and others.

5. The proliferation of heart-healthy products. Consumer interest in the concept of eating for heart health and new dietary supplement science will encourage the continued introduction of new heart-healthy products to the marketplace. This trend has real staying power with the right products and a good base of products upon which to build.

6. On-the-go healthy eating opportunities. Whether it’s grab-and-go healthy snacking or healthy food service and menu options, opportunities abound for the integration of health and wellness into away-from-home foods and beverages.

7. The next growth opportunities in nutritional supplements. Savvy manufacturers will seek to market new supplement formats (beyond pills) and we will continue to see the proliferation of condition-specific supplements and the clinical science to back them.

8. Premium personal care. The growing market for natural and organic personal-care products join forces with an increasing number of consumers seeking premium personal-care products and benefits beyond their traditional use. Watch for more upscale natural and organic product introductions from all market sectors.

9. Individualism crosses categories. Consumers are compartmentalizing information and taking the pieces that apply to their beliefs and lifestyles to formulate their individual, personalized health plan. Evidenced in the new My Food Pyramid and the proliferation of products with specific health claims, marketers must take note of this very strong trend. Watch for new personalized supplements.

10. Corporate social responsibility: values connect to brands. Social values, community involvement and ethical consumption (both pre- and post-manufacturing) will continue to drive consumer connection to brands. Look for this trend to gain momentum in 2006 across many industries. For more information visit www.nmisolutions.com.