market overview: changing the face of weight management as consumers demand natural, nutritious and...

MARKET OVERVIEW: CHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT

VITAFOODS EUROPEMAY 2016

EWA HUDSONGLOBAL HEAD OF HEALTH AND WELLNESS RESEARCH

http://www.euromonitor.com/

© Euromonitor International

2

CONSUMER ATTITUDES TOWARDS WEIGHT MANAGEMENT

WEIGHT MANAGEMENT – LATEST TRENDS

PERFORMANCE OF WEIGHT MANAGEMENT

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3CHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

2012

-13

2013

-14

2014

-15

2015

-16

2016

-17

2017

-18

2018

-19

2019

-20-1012345678

Growth of HW products compared to their non-HW counterparts 2005-2020, world level

HW Packaged Food HW Soft DrinksNon-HW Packaged Food Non-HW Soft Drinks

Y-o-

y gr

owth

(%) r

etai

l val

ue s

ales

, U

S$ fi

xed

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ange

rat

es, c

onst

ant

HW Food and Soft Drinks Continues to Outperform NON-HW Counterparts



4

NATURAL Gets Top Billing Among ConsumersCHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE

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Which of the following factors or ingredients do you look for on food labels and food ingredient labels?

Source: Euromonitor International Global Consumer Trends Survey 2015



5

Standard HW Products Struggle at a Time of Strong HW InnovationCHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE

Diet Coke (Coca-Cola Co, The)Diet Pepsi (PepsiCo Inc)

Minute Maid (Coca-Cola Co, The)Glacéau VitaminWater (Coca-Cola Co, The)

SoBe (PepsiCo Inc)Sokenbicha (Coca-Cola Co, The)

Aquarius (Coca-Cola Co, The)Ito En Tennen Mineral Mugi Cha (Ito En Ltd)

Qoo (Coca-Cola Co, The)Capri-Sonne (Deutsche SiSi-Werke GmbH & Co KG)

Suntory Oolong Cha (Suntory Holdings Ltd)Diet Dr Pepper (Dr Pepper Snapple Group Inc)

Java Monster (Hansen Natural Corp)Dakara (Suntory Holdings Ltd)

Pocari Sweat (Otsuka Holdings Co Ltd)Pepsi NEX (PepsiCo Inc)

Nokyo Kaju (Megmilk Snow Brand Co Ltd)Hajime (Coca-Cola Co, The)

Suntory Vitamin Water (Suntory Holdings Ltd)

-1,000 -500 0

Worst Performing HW Brands in Developed Markets, Absolute Decline 2010-2015

US$

mill

ion,

fixe

d 20

15 e

xcha

nge

rate

s



6

Millennials See Beverages as a Way to Obtain Extra Nutritional Content or Energy

CHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE

Monster (Monster Beverage Corp)

Private label (Private Label)

Kenko Mineral Mugicha (Ito En Ltd)

Sparkling Ice (Talking Rain Beverage Co)

Coca-Cola Zero (Coca-Cola Co, The)

Vita Coco (All Market Inc)

Rockstar (Rockstar Inc)

Naked (PepsiCo Inc)

Oishii Mizu (Asahi Group Holdings Ltd)

Iyemon (Suntory Holdings Ltd)

0 1,000 2,000 3,000

Best Performing HW Brands in Developed Markets, Absolute Growth 2010-2015

US$

mill

ion,

fixe

d 20

15 e

xcha

nge

rate

s



7

1. More natural, more nutritional content in food; Enhanced natural -free from - ancient grains

2. Weight management key/ backlash against sugar

3. Protein still rules but focus on plant-based sourcing

4. Free From is the word

5. Harnessing Millennial power key to future growth

Ethical Labels the new Health and Wellness?

Top Health and Wellness TrendsCHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE



8

Ethical Labels of Growing Importance for MillennialsCHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE

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• Other

Charity/Sponsorship



9

Consumers Say No to Empty CaloriesCHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE

Global per capita bread consumption is down by 1.2kg per over 2010-2020. Global per capita fish and seafood consumption is up by 4kg over 2009 and 2019

and eggs are up by 0.5 kg.



10

Carbonates Seen as Culprits in the Rise Of ObesityCHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE



11

Traditional Low and Mid-calorie Beverages Struggle in Saturated Markets



How much sugar is the average global consumer buying?CHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE

36gAMOUNT OF SUGAR PURCHASED A DAY BY THE AVERAGE GLOBAL CONSUMER IN 2014

2%ANNUAL GROWTH RATE OF SUGAR PURCHASED OVER 2009-2014

37%PROPORTION OF DAILY SUGAR PURCHASED FROM SOFT DRINKS



13

Amount of sugar purchased from packaged food and soft drinks varies significantly around the world


Legend Title5-29g30-54g55-81g82-94g95-127g



14

IndiaChin

aEgy

pt

Malays

ia

Turk

ey

Polan

d

Franc

eSp

ainJap

an

Swed

en

Mexico

United

King

dom

Austra

lia

German

y

Netherl

ands

USA0

20

40

60

80

100

120

140

Daily sugar purchases compared to recom-mended intake, 2014

Sugar (g)5% WHO recommended intake10% WHO recommended intake

Gra

ms

per

capi

ta p

er d

ayConsumers in many countries buy more sugar than is recommended




15

2010

2015

2020

0.00 10,000.00 20,000.00 30,000.00 40,000.00 50,000.00

Global High Intensity Sweeteners by Type, 2010-2020

Aspartame Saccharin Acesulfame K Sucralose Cyclamate Stevia

Tonnes

PepsiCo To Substitute Aspartame in Diet Pepsi with Sucralose& Ace KCHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE

Source: Euromonitor Ingredients



16

Cola carbonates: AR, CL, UK, SE, US, MX

Cola carbonates, US, 2014

Cola carbonates: FI, NL, FR, CA, AU

Non-cola carbonates FR, UK, CH, IE, BE, NL, LX,

PL, AT

Non-cola carbonates: Netherlands, 2013

Nectars, US & UK, 2010

RTD tea, FR, CS, AT, HU

RTD tea: ES (2014), PL (2013)

Powder Milk Drinks, Mexico, 2013

Powder Milk Drinks, Columbia,

2014Speciality Cola, UK Rtd Tea, IT Juice, IT, 2015

Is Stevia THE Answer to Obesity? CHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE



17

Ketchup, Sweden, 2012

Confectionery, Switzerland, 2013

Jam, Denmark 2013

Soup, Finland 2013

Jellies, Chile, 2013

Table sauce, Australia, 2014

Cereals, Chile 2013

Yoghurt, US, 2013

Yoghurt, US, 2013 and NL 2014

Fromage frais, Norway, 2014

Protein Bar, Austria, 2012

Activia, Hungary, 2013

Reduced Sugar Ice Cream, GR

20%-30% Reduction in Sugar Content Could Put a Halt to Obesity (AoS)CHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE

THE WORLD OF WEIGHT MANAGEMENT IS CHANGING



18

Sweden

United Kingdom

Argentina

0 5 10 15 20 25

Retail Sales of Coca-Cola Life

201520142013

US$ mn, current

Coca-Cola Life Off to a Good Start in EuropeCHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE


32%CONSUMERS TRY TO LIMIT INTAKE OF BREAD, PASTA AND OTHER CARB-RICH FOOD

37%CONSUMERS ACTIVELY MONITOR WHAT THEY EAT TO MANAGE WEIGHT

20%ON A DIET OR TRYING TO LOSE WEIGHT


Euromonitor International Survey 2015

CONSUMERATTITUDESAND OBESITY



20

ArgentinaPhilippines

TurkeyEgypt

IndonesiaMexicoRussiaBrazilIndia

China

0 100 200 300 400 500 600 700

10 Largest Overweight and Obese Populations in Emerging Markets

(BMI>25)

2009 2014 2019

Million of overweight and obese (15+ years)

Overweight and Obese Populations Set to Grow Twice as Fast in Emerging Markets


Australia

South Korea

Spain

Japan

Germany

0 100 200 300 400 500 600 700

10 Largest Overweight and Obese Populations in De-

veloped Markets (BMI>25)

2009 2014 2019

Million of overweight and obese (15+ years)

In the UK alone the cost of obesity and type II diabetes is estimated at approximately £29 billion a year.



21







22

• 1950’

Eat fat!

• 1980’

Zero calorie!

• Fat burning• Satiety?

Functional Ingredients

Weight Management – Remains Fashion DrivenCHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE



23

Technology ensures that making a healthy choice has never been easierCHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE



24

Age 15-34

Age 35-49

Age 50-64

Age 65+

0%

2%

4%

6%

8%

10%

% o

f R

espo

nden

ts

Popcorn

Sports Protein Bars

Nuts

Other (Meat Snacks)

Corn Chips

Yoghurt

Meal Replacement

Extruded Snacks

Snack Bars

Potato Chips

Pretzels

Fruit Snacks

0% 2% 4% 6%

US Savoury Snacks Growth

Retail Value CAGR, 2015-2020

Millennial Winner: US Popcorn and High-Protein SnacksCHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE

Q: Do you look for high-protein foods when shopping?

Global Consumer Trends Survey; N = 16,327 ; USA; Result by Age



25

Yoghurt, US, 2012

Confectionery, Switzerland, 2013

Yoghurt, US, 2013

Fromage frais, Norway, 2014

Flavoured Milk Drinks, South Korea,

2013

Reduced Sugar Ice Cream, GB

Popcorn (Protein&Fibre) PL

FF Biscuits (Protein&Fibre)

From Passive Weight Management to Active Nutrition; Protein-rich, Non-fat Alternatives for Breakfast and in Between Meals




26

Fibre and Protein Pack a Powerful Satiety Punch to Revive Meal Replacement Slimming


General Mills Inc Fibre One Protein bars: “Your 3pm craving has met its match!”

Kellogg’s Breakfast to go promotes its high protein and fibre content

SATIETY REMAINS KEY TO LONG-TERM WEIGHT MANAGEMENT



27

Carbs Must Deliver Nutrients to Justify Calories: Fibre & Protein Score HighCHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE

AmaranthQuinoa

Kamut

Barley

Spelt

OatsBulgur

Polenta

Buckwheat

Millet

Teff

High Protein

Other

Gluten free

High fibre,Beta glucans



28







29

2010 2015 20200

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Global Retail Sales of Traditional Weight Management, 2010-2020

Meal Replacement Slimming

Weight Loss Supplements

Slimming Teas

Other Slimming Products

OTC ObesityUS$

mn,

fixe

d ex

chan

ge ra

tes

Meal Replacement Slimming Strongly Outpaced Pill Format CategoriesCHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE



30

Developed Markets Dominate Weight Management Food and BeveragesCHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE



31

2010 2015 20200

10

20

30

40

50

60

70

80

90

100

Retail Sales of Global WeightManagement Food and Drinks in Developed

Markets 2010/2015/2020

Other Drinks

Carbonates

Other Food

Sauces

Confectionery

Ready Meals

DairyUS

$ bi

llion

(con

stan

t pric

es, f

ixed

201

5 ex

chan

ge ra

tes)

2010 2015 20200

10

20

30

40

50

60

70

80

90

100

Retail Sales of Global Weight Manage-ment Food and Drinks in Emerging

Markets 2010/2015/2020

US

$ bi

llion

(con

stan

t pric

es, f

ixed

201

4 ex

chan

ge ra

tes)

The Gulf Between Developed and Emerging Markets In Weight Management Positioned Food and Beverage Offering




32

Development of Weight Management 2015: USA vs. IndiaCHANGING THE FACE OF WEIGHT MANAGEMENT AS CONSUMERS DEMAND NATURAL, NUTRITIOUS AND CONVENIENT, VITAFOODS EUROPE

Weight Management Positioned Food and Beverages by Category 2015

Dairy

Carbonates

Ready Meals

Ice Cream

Meal Replacement

Frozen Meat, Seafood, Fruit and Vegetables

Sweet and Savoury Snacks

Confectionery

Biscuits and Snack Bars

SDC

Shelf Stable Meat, Seafood, Fruit and Vegetables

Concentrates

RTD Tea

Bottled Water

Others

Inner Circle:US

Outer Circle: India



33

Weight Management is 2nd Largest Food & Beverage Health Trend Globally


Health and Wellness by Health Platform, Global Retail Sales 2015

General Wellbeing US$410.4 bn

Weight Management US$136.1 bn

Digestive Health US$70.3 bn

Energy Boosting US$35.4 bn

Oral/Respiratory Health US$20.7 bn

Endurance US$20.0 bn

Bone and Joint Health US$16.0 bn

Food IntoleranceUS$12.2 bn

Cardiovascular Health US$6.5 bn

Immune SupportUS$2.4 bn

Urinary Tract Health US$0.7 bn

Beauty from Within US$0.3 bn

Brain Health and MemoryUS$0.3 bn

Vision HealthUS$0.1 bn

Note: If a product has a another functional benefit besides being low in calories, it is assigned to the appropriate health platform instead, rather than to weight management.


StretchSUGAR, FAT AND CARBS REDUCTIONTO EMERGING COUNTRIES

ReviewSATIETY INDUCING SNACKS AND NATURAL WM INGREDIENTS IN DEVELOPED MARKETS

Focus on“HEALTHY” AND “NUTRITIOUS” WHENLIMITING CALORIES


WEIGHT MANAGEMENT (WM)STRATEGIES


THANK YOU FOR LISTENING

Q&AEwa HudsonGlobal Head of Health and Wellness [email protected] @ewa_hudson

mailto:[email protected]

https://twitter.com/ewa_hudson

https://twitter.com/ewa_hudson


market overview: changing the face of weight management as consumers demand natural, nutritious and...

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