Low-Carb Craze Still in Full Swing

The low-carb dieting frenzy is not going away anytime soon.

A new report finds that sales trends are on the rise for three types of products appealing to consumers trying to lower their carb intake, according to Information Resources, Inc.’s latest Times & Trends report, Carb-Cutting Shoppers.

The three categories are: naturally low carb product categories like eggs and meat as well as no/low/reduced sugar categories like bottle water and soft drinks; reduced-carb brands from specialty manufacturers like Atkins; and reduced-carb brands from leading food and beverage manufacturers.

For the 52 weeks ending June 13, sales of naturally low-carb product categories were up 5.8% compared to one year ago, outpacing total food and beverage sales growth of 1.7%, the study found.

The low-carb brands segment has grown from non-existent to $1.1 billion in less than two years and a 1% share of total food and beverage sales. This growth has been fueled by hundreds of new product introductions many by major consumer packaged-food makers who were caught off guard by the low-carb craze and have moved full-force into the arena in the past six months. Specifically, the brand extensions’ share of the segment rose from 44% to 57% in the past year, IRI said. IRI now tracks sales of more than 80 low-carb brands.

There are an estimated 26 million Americans now on low-carb diets and an additional 70 million keeping an informal eye on their carb intake.

Other highlights of the report include:

• Retailers are evaluating low-carb stocking, merchandising and communications strategies. Carb brands are receiving strong display support often in multiple locations. Special sections within retail are being tested to separate “healthier eating” products from others.

• Dieters could get swayed in new directions as awareness and interest in multiple diets—low-fat/cholesterol and low-calorie/sugar—gets weighted against low-carb diets.

The report said that it was too early to predict whether the low-carb craze will continue to rise or fizzle as other fad diets have.

“Manufacturers and retailers continue to have a major opportunity to serve the carb-conscious consumer,” said David Shanker, division president, Client Solutions, IRI. “To be successful, it’s critical that CPG food and beverage companies and retailers continue working to fully understand the changing consumer dynamics. They must also continue collaborating on advertising, packaging, merchandising and shelf presentation to provide shoppers with the information they need to make healthier choices and support new lifestyles.”