market insight and trends for gut health...

MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET

EWA HUDSON GLOBAL HEAD OF HEATH AND WELLNESS RESEARCH

FOOD MATTERS LIVE

NOVEMBER 2016

GLOBAL DIGESTIVE HEALTH

FOCUS: UK

FUTURE OF DIGESTIVE HEALTH

© Euromonitor International

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General Wellbeing £248 bn

Weight Management £67 bn

Digestive Health £44 bn

Energy Boosting £24 bn

Free From £21 bn

Oral/Respiratory Health £13 bn

Endurance £13 bn

Bone and Joint Health £10 bn

Cardiovascular Health £5 bn

Vision Health £4 bn

Brain Health and Memory £3 bn

Immune Support £2.5 bn

Urinary Tract Health £0.5 bn

Beauty from Within £0.1 bn

Digestion - the 3rd largest health trend within the £476 bn HW industry MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016

Global Retail Sales (£ billion) 2016

http://www.euromonitor.com/


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Digestive health food and drinks equally important across key regions MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016



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Probiotics and fibre key in digestion-positioned packaged food MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016

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Global digestive health by categories 2011-2021

Others

FF Bottled Water

Milk

Juice

High Fibre Noodles

FF Bread

High Fibre Pasta

FF Milk Formula

High Fibre Sweet Biscuits

NH Rice

Sour Milk Drinks

High Fibre Breakfast Cereals

Probiotic Yoghurt

High Fibre Bread



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Digestive health fragmented, an opportunity to establish or re-establish brand’s health credentials

MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016

0 10 20 30 40

2015

Digestive health by leading brands, World

Yakult (Yakult Honsha Co) Activia (Danone, Groupe)Chobani (Chobani LLC) Cheerios (General Mills Inc)Quaker Oatmeal (PepsiCo Inc) Mengniu (China Mengniu Dairy Co)Yili (Inner Mongolia Yili Industrial Group Co) Nature's Own (Flowers Foods Inc)Lieken Urkorn (Agrofert as) Bimbo (Grupo Bimbo )Quaker (PepsiCo Inc) Oroweat (Grupo Bimbo )Nido (Nestlé SA) New Yakult (Yakult Honsha Co)Bio Danone (Danone, Groupe) Almarai (Almarai Co)Barilla (Barilla Holding SpA) Kellogg's Mini Wheats (Kellogg CoJoie (Yakult Honsha Co) Stonyfield Farm (Danone, Groupe)

£ billion



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Be aligned with yourself, in sync, find your balance MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016



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Western Europe – Retail Sales of Probiotics by Type 2002-2021

Probiotic Supplements Probiotic Yoghurt Sour Milk Products

Western Europe - the setback of probiotic claims in food to bring market opportunities for supplements


Consumption gap between probiotic

yoghurt and supplements narrowing

Probiotic supplements to outpace sour milk drinks


4 billion US$ retail value of probiotics supplements in the world 2015

11% Retail value up from 2014

38% Expected growth from 2016 to 2021

9% Retail value growth expected in 2016


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Probiotic supplements to outpace all others throughout year 2021 MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016



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£10.5 billion worth of digestive remedies sales highlights the need for improved preventative approach


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Digestive Remedies by Regions 2016

IBS Treatments

Motion Sickness Remedies

Paediatric DigestiveRemediesDiarrhoeal Remedies

Laxatives

Indigestion and HeartburnRemedies



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Death by Diseases of the Digestive System (per 100,000 inhabitants)

2015

Diseases of digestive system cause 49 deaths per 100 k people in the UK MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016



FOCUS: UK



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Weetabix the largest digestive health brand in the UK MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016

Leading digestive health brands in the UK (% share), 2015

Weetabix (Bright Food (Group) Co)

Oatso Simple (PepsiCo Inc)

Warburtons (Warburtons Ltd)

Kingsmill (Associated British Foods Plc)

Hovis (Premier Foods Plc)

Shreddies (Cereal Partners Worldwide SA)

Kellogg's All Bran (Kellogg Co)

Alpen (Bright Food (Group) Co Ltd)

Dorset Cereals (Associated British FoodsPlc)Others

10g of fibre per 100g



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Not just fibre&wholegrain, but also locally produced and in a responsible way with less fertilizer




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Digestive health 2016

Post Brexit digestive health? EU key but China the land of opportunity MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016


Digestive health 2021

EU data excludes UK



FOCUS: UK



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Food and mental disorders on the rise, as well as allergies, skin conditions, arthritis, autism, gut – the second brain




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Food and mood, gut and brain axis MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016



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Free from 2016

At £21 billion globally, the free from movement grows from strength to strength; improving digestion at its heart



Free from 2021

EU data excludes UK



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Consumers look beyond traditional digestive approach MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016

Ster

oid

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Pesticides

Local Sourcing Artificial Ingredient

s

Safety

Artificials

HFCS

MSG

GMOs

rBST

Asp

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Southampton Study

Art

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En

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Clean label a new entrant in digestive health? MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016

Euromonitor Clean Label Types

All Natural

No Artificial Additives

No Artificial Colours

No Artificial Preservatives

No Artificial Flavours

No Artificial Sweeteners

GMO Free



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UK the second largest in the global £107 billion clean label movement MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016

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Top 10 clean label markets

2015 2015-2020 % Growth



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Which claim is most important from the consumer perspective? MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016

No artificial colours, flavours

and preservatives

No artificial colours

or flavours Zero added preservatives

Add taste, nothing else

Nothing artificial,

no added refined sugar

No artificial preservatives, no added

MSG, free from artificial colours

Made with real fruit, no artificial colours,

preservatives or sweeteners

100% pure & raw Water, lime cucumber, BC

…and that’s it

No added sugar,

no additives

No artificial colours

or preservatives

100% natural

ingredients, skin & collagen

No artificial colours, flavours or preservatives

No added MSG

Vegetarian, vegan and coeliac friendly

Gluten and lactose free

Cold pressed (never heat)

100% natural ingredients – yes!

Say no to…

Added sugar

Added sweeteners

Added preservatives

Added water



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UK’s £13.3 billion clean label driven by concerns around artificial colours MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016

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Clean label by leading categories, UK

No Artificial Colours No Artificial Flavours No Artificial Preservatives

All Natural No Monosodium Glutamate No Artificial Sweeteners

GMO Free No Artificial Additives BPA Free

£ million



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Turkey, China and Indonesia to drive the global growth MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016


THANK YOU FOR LISTENING

Q&A

Ewa Hudson Global Head of Health and Wellness, Nutrition and Ethical Labels Research [email protected] @ewa_hudson

mailto:[email protected]

https://twitter.com/ewa_hudson


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Ethical labels research MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016

PEOPLE

Clean Label:

•All Natural •No Artificial Additives •No Artificial Colours •No Artificial Flavours •No Artificial Preservatives •No Artificial Sweeteners •No Monosodium Glutamate •GMO Free •BPA Free

Origin:

•Locally Sourced Prominent

Religious Labels:

•Halal •Kosher

Charity/Sponsorship

ENVIRONMENT/

SUSTAINABILITY

Sustainable Trade and Farming:

•Fairtrade •UTZ Certified •Other

Responsible Forestry:

•Rainforest Alliance •FSC •Other

Sustainable Palm Oil System

•RSPO/ISPO/MSPO •Other

Recycling Label:

•Widely recycled •Can be recycled •Terracycle •From Sustainable/Renewable

Sources •Other

Carbon Footprint/No Air Miles Food

ANIMAL

WELFARE

Free Range

Marine Sustainability

Bird/Insects Friendly

Grass fed/pasture raised

Vegetarian/Vegan



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Ethical labels methodology MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016

BRAND SALES (RETAIL VALUE) OF PACKAGED FOOD, SOFT DRINKS AND HOT DRINKS

CHECK PACKAGING FOR 38 ETHICAL LABELS

Allocation of brands to categories based on recorded label

2015: SUM OF BRANDS WITH AT LEAST ONE ETHICAL LABEL

EXCLUDED: PRIVATE LABEL, OTHERS

Scan of CSR reports of leading players for commitments that directly affect our forecasts

Application of commitments from CSR reports to overwrite the base line growth

Use of packaged food, soft drinks and hot drinks 2015-2020 growth as a base line for forecast growth

FORECAST MODEL: 2015 VALUE OF ETHICAL LABELS + PK, SD, HD BASE LINE + CSR COMMITMENTS



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Clean label defined by packaging claims MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016

GMO free/Non-GMO: GMO (genetically modified) foods involve introducing foreign genetic material into an organism artificially, usually to – increase yield, increase resistance to disease, extend shelf life or improve food properties (texture, flavour, nutrient value). This category quantifies sales of products under our coverage with a GMO-Free/Non-GMO claim.

All Natural/100% Natural: These terms refer to the natural properties of the product. Both All Natural and 100% Natural are to be recognised as the same ethical label. This includes references to 'all natural anything'.

Artificial Additives: This category aggregates sales of products with a claim "no artificial additives” and “free from artificial additives“ on product packaging.

Artificial Flavourings: This category aggregates sales of products with a claim "no artificial flavours/flavourings” and “free from artificial flavours/flavourings” on product packaging.

Artificial Colours: This includes all products with a claim "no/free from artificial colours". Several artificial colours have been banned by food standards authorities after being linked to an increased number of cases of attention deficit hyperactivity disorder (ADHD) and are thus avoided by certain consumers.

Artificial Sweeteners: This category captures aggregated sales of all products with the claim "no/free from artificial sweeteners“ on product packaging.

Artificial Preservatives: This includes all products with a claim "no/free from artificial preservatives and products with a claim "no/free from parabens". Parabens are a form of artificial preservative and when present in food usually come in the form of E numbers.

BPA Free: All products with a claim referring to "BPA free". BPA (bisphenol A) is an industrial chemical that is used to make certain plastics and resins. BPA is often used in containers that store food and beverages, such as water bottles.

Lacking a formal definition, Passport: Ethical Label bases its definition in the various claims found on product packaging that stress a shift away from complex artificial ingredients, toward familiar, natural

alternatives.


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