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3A Business Consulting

Global Market for Sports Nutrition and Dairy Ingredients

2017-2021

Published September 2017

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Report Outline

Introduction and Methodology

Sports Nutrition Market and Dairy Ingredients used

Global Sports Nutrition Market Data and Trends

Key Players and Distribution Channels

Ingredient Volume Usage and Major Users

Ingredient Applications and Product Launches

Key Dairy Ingredient Companies

Dairy Ingredient Trade Analysis

Report Summary

Appendix (Sport Nutrition Data for Key Markets)

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Market Research Approach - Sports Nutrition Markets and Dairy Ingredients used

Protein powderReady-To-Drink RTDSports barsOther products –gels, tablets, etc.

GlobalWestern EuropeEastern EuropeNorth AmericaLatin AmericaAustralasiaAsia PacificMiddle East

Value per marketVolume per marketCAGR 2016-2021Per capita spending

Import and export per market

WPCWPIMPCMPI

Top 20 global sports nutrition companies Top 20 global brands per marketDistribution channels

Consumer segmentsProduct trendsConsumer trends

Application/ volume usage of dairy ingredients

WPCWPIWPHNative WheyMPCMPIMPHCaseinateMicellar Casein

Competitive structure

Key dairy ingredient companies focusing on sports nutrition

ProductScope

MarketScope

Key Players

Global Market Trends

DairyIngredients

in SN

DairyIngredients

Trade Analysis

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Methodology- Definition of Sports Nutrition

Sports Nutrition products are positioned in the marketplace as improving physical endurance, increasing muscle growth/development/mass, or speeding recovery after exercise The products are sold in powder, bar, ready-to-drink, gel or tablet formatsBoth protein and non-protein based products are included

However, sugar based drinks often positioned as sports nutrition (e.g. Gatorade), energy drinks (e.g. Red Bull), and energy bars (e.g. PowerBar) are not includedNon-protein products do not have protein as their core ingredient. Common positioning’s include boosting energy, delaying the onset of fatigue, increasing strength and promoting muscle recovery. Common ingredients include amino acids, carbohydrates, creatine, beta alanine and caffeine

The Sports Nutrition category definition includes bars, powder and RTD’s with more than 20 grams of protein in absolute volume, irrespective of packaging size

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Methodology for Ingredient Analysis in Sports Nutrition

Methodology implications:

The used database (INNOVA) does not record all launches in SN, particularly given internet sales. However, the examples shown are thought to be representative of all product launches

WPI

WPC

WPH

MPHMPI

MPCGeography:Global and Key Regions

Time Frame:January 2012 –December 2016

Category:Sports Nutrition

Ingredients:

Native wheyMicellar casein

Caseinates

Product example:

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Global Sports Nutrition Market Data and Trends- Global Summary

7,6798,470

9,40610,360 10,819

11,852

17,400

0

5,000

10,000

15,000

20,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Reta

il v

alu

e R

SP in U

SD

mio

.

Global Sports Nutrition Market Value and Growth, 2011-2021

The global Sports Nutrition market amounted to approx. USD 11.9 bio. in 2016, exhibiting a CAGR of approx. 9% between 2011-2016

The Sports Nutrition market is forecast to continue growing around 8% annually to reach more than USD 17 bio. in 2021

CAGR: 9.1%

CAGR: 7.9%

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Global Sports Nutrition Market Data and Trends- North America the largest and fastest growing region

North AmericaValue: USD xxx mio.

CAGR 2011-16: xx%

Latin AmericaValue: USD xxx mio.

CAGR 2011-16: xx%

Middle East & AfricaValue: USD xxx mio.CAGR 2011-16: xx%

Eastern EuropeValue: USD xxx mio.

CAGR 2011-16: xx%

Western EuropeValue: USD xxx mio.

CAGR 2011-16: xx%

Asia-PacificValue: USD xxx mio.CAGR 2011-16: xx%

OceaniaValue: USD xxx mio.

CAGR 2011-16: xx%

Retail values RSP 2016 and growth per region 2011-2016

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Global Sports Nutrition Market Data and Trends - worldwide SN market will keep growing

Market size (USD mn)

Volume estimates (‘000 MT)2011 2016

CAGR 11-16

CAGR 16-21

2021F

TOTAL VALUE 7,679 11,852 9.1% 7.9% 17,400

TOTAL VOLUME xxx xxx xxx

Protein powder xxx xxx xxx

Protein bars xxx xxx xxx

Protein RTD xxx xxx xxx

Other SN xxx xxx xxx

The global sports nutrition market is estimated to grow 8% annually towards 2021

Protein powder and protein RTD are the two biggest and fastest growing product categories

Sports Nutrition volumes per category, 2011-2021

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Global Sports Nutrition Market Data and Trends- Global Sports Nutrition Trends (1)

Sports Nutrition has seen continued expansion of its consumer base from just the core users, i.e. bodybuilders and serious athletes, to a wide array of consumers looking to live a healthier and more active lifestyle, so-called Active Nutrition

Sports protein products, particularly protein powder, remain the major Sports Nutrition sales category accounting for more than 80% of global sales value and is expected to continue growing with protein derived from whey ingredients being most significant

With a greater focus on overall health and more consumers looking for clean label products, an increasing demand for natural ingredients has been seen in Sports Nutrition. Ingredients such as organic and grass-fed whey proteins and also plant-based proteins have gained prominence due to both health as well as ethical concerns

Categoryexpansion

Clean labeland naturalingredients

Proteinremainsessential

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Ingredient Volume Usage and Major Users- calculating global ingredients volume usage in 2016

Applying the calculation method explained in the methodology, the estimated volumes of SN consumer products are used to calculate the volume of high-concentration protein ingredients used in SN

This results in 2016 volume estimates below:

2016 Volume estimates (‘000 MT)

Consumer products

Protein ingredients

WP MP OtherTOTAL

ingredients

TOTAL xxx xxx xxx xxx xxx

Protein powder xxx xxx xxx xxx xxx

Protein bars xxx xxx xxx xxx xxx

Protein RTD xxx xxx xxx xxx xxx

Other SN xxx xxx xxx xxx xxx

Note: Methodology described in the introduction section applied

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0 500 1,000 1,500 2,000

United States

Germany

Brazil

United Kingdom

Australia

Canada

Netherlands

New Zealand

Russia

France

Spain

Sweden

South Africa

Finland

Ireland

1,511

392

199

178

132

103

54

54

50

47

44

36

33

30

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Ingredient Applications- Whey Protein Concentrate in SN 2012-2016 (1)

Product Launches by Top 15 Countries

0

200

400

600

800

2012 2013 2014 2015 2016

# o

f pro

ducts

launched

0

50

100

150

200

250

300

# o

f pro

duct

launches

Product Launches by Year

Product Launches by Top 10 Companies

3,089 products launched globally

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Ingredient Applications- Whey Protein Concentrate in SN 2012-2016 (2)

Sports Bars; 414

Sports Drinks Rtd; 3

Sports Others; 81

Sports Powders;

2,375

Sports Protein Based Rtd; 182

Sports Supplements; 34

Product Launches by Category

Company: Cytosport

Country: Brazil

Date: June 2016

Company: Musclepharm

Country: Germany

Date: Aug 2015

Company: Myprotein

Country: UK

Date: Mar 2016

Company: Dymatize

Country: USA

Date: July 2013

Company: Myprotein

Country: France

Date: Nov 2013

Company: BSN

Country: USA

Date: Oct 2014

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Sports Nutrition in UK- Market Size and Growth Rates

Note: Bubble sizes and illustrated figures indicate 2016 category volumes in ‘000 MT

16.73

6.57

11.01

6.07

0

100

200

300

400

500

0% 5% 10% 15% 20%

Reta

il V

alu

e R

SP

in

US

D m

io.

CAGR 2016-2021

Protein powder Protein bar Protein RTD Other

Sports nutrition in the UK exhibited double-digit annual growth over the review period to reach USD 831 mio.

The media and advertising have played a strong role in sports nutrition achieving a mainstream platform

Recently, women have become a target in Sports Nutrition advertising with celebrities promoting high-protein diets to achieve the ‘perfect’ body, though not without controversy

In 2016, 30% of sales were made online, illustrating the continued shift towards online retailing

Protein bars posted the highest annual growth over the review period at 27.7% in current value terms

Sports nutrition is predicted to post a value CAGR of 12% at constant 2016 prices in the forecast period, with Protein RTD expected to show strongest growth

Top 5 companies % market shares: The Hut Group Ltd 20.2%, Holland & Barrett Retail Ltd 9.9%, Maxinutrition Ltd 8.2%, Reflex Nutrition Ltd 4.1%, PhD Nutrition Ltd 4.0%

Trends and outlook

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Global Sports Nutrition Report – Project Management and Costs

3A Business Consulting team:

– Managing partner - Tage Affertsholt

– Junior consultant – Daniel Pedersen

Report available in PDF format – in total more than 90 slides – from end August 2017

EUR 3,600

Time

Team

Cost