melanie felgate, senior analystsugar carbs red meat gluten dairy 18% 15% 27% 34% 49% 5% 4% 11% 5%...

1 Food Matters Live, November 2017

Capitalizing on the latest Consumer & Innovation Trends driving Free From

Melanie Felgate, Senior Analyst

Food Matters Live| 21st November 2017


About our Consumer & Retail practice

15+ YEARS creating consumer insight

2 MILLION new product innovations tracked

OVER 600 multi-lingual analysts and researchers

80 CONSUMER MARKETS

1,000+ CLIENTS portfolio of the world’s largest CPG and Retail companies

CLIENTS PORTFOLIO

TRACKING 50 sectors

20,000 companies

50,000 brands

“GlobalData is a key input for our Strategic Planning and

Business Intelligence teams. Their data is key not only to

monitor market reality, but also to build our forecasts,

support strategic decisions, and set future objectives.”

Strategic Planning Director,

The Coca-Cola Company

Our Consumer & Retail practice provides unparalleled data and insights to over 1,000 of the world’s largest companies across the CPG and Retail industries


Our Consumer Research

Free From Drivers

Key trends

The Future

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Free From Drivers

Key trends

The Future

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So far in 2017, we have surveyed over 26,000 consumers in 36 countries worldwide

Our focus is on consumers…


We track FMCG innovation in over 50 markets to discover trends and inspire innovation

…and Innovation



Free From Drivers

Key trends

The Future

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A network of 8 MegaTrends and 63 trends

GlobalData’s TrendSights Framework


The Free From concept is aligned with the Moderation & Avoidance trend

GlobalData’s TrendSights Framework

Moderation & Avoidance: Consumers exhibit restraint as a means of improving their wellbeing. In doing so, they are giving up and/or moderating many vices for the good of their long-term health


Motivations for Moderation & Avoidance

Avoidance

Total abstinence from certain products or

ingredients

Allergy/Intolerance

Health & wellbeing

Medical advice

Religious/cultural beliefs

“Green” values Safety concerns

Moderation

The “middle ground” – reducing or limiting intake; but indulging occasionally

Health & wellbeing

Guilt-reduction

Balanced consumption

Satisfy short term cravings/temptations

Unrestricted consumption

The antithesis of avoidance and moderation!

Pleasure seeking

Reward or treat

Lack of concern/awareness of health issues

Boredom with restriction


Traditional “Free From” Consumers

I’m intolerant

15%

Gluten-free

buy products with gluten-free claims

I think they are healthier

57%

I prefer the taste

29%

Global: Why do you generally purchase food & drinks with the following claims:

Lactose-free I’m

intolerant

21%

I think they are healthier

51%

I prefer the taste

29%

Lactose-free

49% buy products with lactose-free claims 50%

Source: GlobalData’s primary research


Millennials are driving the “Free From” trend

Global: consumers who claim to buy food and drink with the following claims, by generation



“Free From” has extended beyond gluten- or dairy- free

Carbs Sugar Meat

Gluten Dairy/Lactose


Sugar is now the most vilified ingredient

Sugar Carbs Red Meat Gluten Dairy

15%18%27%

34%

49%

4%5%11%

5%

14%

I am trying to limit my intake I avoid this entirely

Global: consumers trying to limit or avoid the following ingredients

63% 39% 38% 23% 19%



Weight is the main health concern for sugar avoiders

Those avoiding sugar are more concerned about

obesity/overweight (57%) than diabetes (52%)




Weight is the main health concern for sugar avoiders

Sweetened only with honey 30% less sugar 77% of consumers perceive

honey as positive for health

Hellmann’s Ketchup

Those avoiding sugar are more concerned about

obesity/overweight (57%) than diabetes (52%)


Carb avoiders are turning to vegetable alternatives

Top 3 alternatives consumers do, or would, choose instead of traditional (refined) carbs…

Wholegrain varieties

Vegetables Pulses



Carb avoiders are turning to vegetable alternatives

Top 3 alternatives consumers do, or would, choose instead of traditional (refined) carbs…

Wholegrain varieties

Vegetables Pulses Frozen veggie “carb swaps” Includes cauliflower mash,

butternut spirals, & corn tots

Green Giant Veggie Swap-Ins




Free From Drivers

Key trends

The Future

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GlobalData has identified 3 Key Trends in Free From

Mainstreaming Experimentation Indulgence


1. Mainstreaming: consumers find comfort in familiar brands

64% of consumers

globally are often/always influenced by how

familiar/trust-worthy/risk-free a product feels when

buying food



1. Mainstreaming

• Newburn Bakehouse sub-brand launched in 2011

• “Mainstream” re-brand Jan ‘18

• Simplicity: “To ensure customers can easily identify our products”

Warburtons Gluten Free re-brand


2. Experimentation: consumers are willing to experiment

45% of consumers

globally like to experiment with new and unusual

flavors when buying food



2. Experimentation

Asda becomes first UK supermarket to stock Camel Milk

• Camelicious Camel Milk launched in Asda this month

• Novel and exotic ingredient

from UAE • Suitable for lactose-

intolerant consumers


3. Indulgence: free-from consumers don’t want to sacrifice enjoyment

of consumers are often/always influenced by how enjoyable or unique a product is when buying food…


53%

However, just 29% of consumers of gluten-

free or lactose-free products choose them

because they “prefer the taste”


3. Indulgence

• Non-Dairy “certified vegan” range launched in 2017 - made with almond milk

• Delivers “the taste and creamy texture you've been craving”

Ben & Jerry’s goes dairy-free



Free From Drivers

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“Clean label” trend poses a key challenge for Free From

of consumers claim “natural ingredients” would encourage them to choose one brand over another

46%

of consumers are highly attentive to ingredients in the food/drink they consume

54%

of consumers find products formulated with the lowest number of ingredients possible appealing

68%


Many Free From innovations do not fit with “clean” concept

The Impossible “Meat-Free” Burger

Ingredients: Textured Wheat Protein, Coconut Oil, Potato Protein, Leghemoglobin, Yeast

Extract, Salt, Soy Protein Isolate, Konjac Gum, Xanthan Gum

Vs

Regular Hamburger

Ingredients: Beef, Seasoning*

Source: *Ingredients for McDonald’s Beef Burger Patty


…the emerging “clean” backlash highlights consumers may be willing to accept innovative “free from” formulations, provided

they look and taste appealing…

However…


The “Clean Label” Backlash

In 2016 General Mills removed artificial colors and flavors from its colorful Trix cereal …



In 2017 “Classic” Trix with artificial ingredients

was re-launched to sit alongside new all-natural

version


www.globaldata.com/consumer/

Thank you! Please keep in touch:

@MelFelgate_GD

[email protected]

+44 (0)207 832 4305

melanie felgate, senior analystsugar carbs red meat gluten dairy 18% 15% 27% 34% 49% 5% 4% 11% 5%...

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