OWN THE CHANGE

TREND BOOK SIAL INSIGHTS THE WORLD FOOD INDUSTRY IN 2020

2020 Press kit

SIAL, a subsidiary of Comexposium Group

Editorial #ownthechange Sial insights Global situation 3 research studies 1 CONTENTS

p. 3 EDITORIAL by Nicolas Trentesaux and Adeline Vancauwelaert p. 4 #OWNTHECHANGE 1 2 3 p. 6 p. 8 p. 14 SIAL INSIGHTS THE GLOBAL SITUATION FOCUS ON THE RESULTS Unique and exclusive IN 2020 OF 3 RESEARCH STUDIES research studies An overview of major food industry Our experts decipher the findings trends

p. 9 p. 15 More activist consumers Kantar unpacks the expectations of consumers p. 10 3 paradoxical major trends p. 21 Global food industry innovation analyzed by ProtéinesXTC

p. 27 The global out-of-home food market explained by Gira EDITORIAL NICOLAS TRENTESAUX, CEO, SIAL GLOBAL NETWORK ADELINE VANCAUWELAERT DIRECTOR, SIAL AND SIAL INDIA

“For several months now, we have been living an The SIAL Insight research studies and the SIAL unprecedented situation that is having an equally Innovation Award unveiled this autumn are unprecedented impact on our daily lives and important benchmarks for all industry stakeholders. businesses. Having introduced many initiatives designed to allow us to host an international event This trend book distills the findings of major unique during this period of pandemic, and in order and exclusive studies of the global food industry to guarantee the food industry professionals conducted by SIAL expert partners Kantar, an experience that meets their expectations, ProteinesXTC and Gira. we have taken the decision to postpone SIAL Paris 2020, initially slated for this autumn. Seen through the lens of our #Ownthechange The next edition of SIAL Paris is to be held initiative, an in-depth analysis of major trends from 15 to 19 October 2022. and how they evolve, which was conducted before the exceptional situation we have all Nevertheless, we still want to deliver on our experienced in recent months, resonates even mission, and are fully committed to remaining more strongly today. in contact with all of you and in making our contribution to the recovery and the process The results strengthen our already strong conviction. of transformational change of the global food All of us want to contribute to the recovery, but we industry. are also facilitators of the transformational SIAL Paris is an important source of information change that this unprecedented crisis has now for understanding the global challenges, trends made unavoidable.” and innovations that are shaping tomorrow’s food industry.

SIAL Paris is an important source of information for understanding the global challenges, trends and innovations that are shaping tomorrow’s food industry. The SIAL Insight research studies and the SIAL Innovation Award unveiled this autumn are important benchmarks for all industry stakeholders.

Editorial #ownthechange Sial insights Global situation 3 research studies 3 #OWNTHECHANGE

Design the food of tomorrow

#Ownthechange began with an observation. On one hand, a food industry still largely mired in outdated consumption models that are increasingly being challenged by rapidly changing consumer expectations and approaches all over the world. On the other hand are demanding, well-informed consumers who are progressively becoming more active participants in their food choices. In the past, they expressed their expectations through the shopping basket or menu; today, consumers go as far as to boycott products, brands or restaurants that do not correspond with their convictions. Now more than ever, saying no means thinking for yourself.

Rally professionals around the consumer expectations and approaches emerging throughout the world

#Ownthechange highlights a number of developments – from societal to ecological to technological – that can guide each stakeholder in a positive direction.

We aim to take stock of today’s social and consumer expectations, the evolution of various geographical markets, and the increasingly wider range of possibilities that technology offers, to explore how to break free of obselete models and embrace the change to become active participants in the transformation. The objective? To provide all the keys necessary to create the food of tomorrow, addressing expectations and initiatives emerging all over the planet.

Editorial #ownthechange Sial insights Global situation 3 research studies 4 Promote Federate good initiatives the entire food community The unprecedented COVID situation has brought to light emerging practices and initiatives. And so for the SIAL, a source of inspiration First of all, since we all were obligated to remain for the entire worldwide food community, at home, we began to reconsider how we eat. it is essential to showcase these expectations In the same way as changes made in other aspects and initiatives in order to federate the food industry. of our personal and working lives, which have also All its participants, from farmers to distributors been disrupted by the crisis, the process began to restaurant professionals, may actively take part by questioning our eating habits in terms of the time in the food transition. spent on meal preparation, shortages of some basic essentials, new ways of shopping, etc.

Then we began to understand the importance of socializing in restaurants, the first among many industries to be affected by the crisis; and in turn they began to come up with new solutions, enabling us to continue to eat well.

Certain restaurant professionals even began to join forces to support a common cause: to feed healthcare workers and the needy, offering support to every level of society without discrimination.

It’s not like the transition of the food industry just began; in fact sometimes it appears to be struggling. But today we can observe an acceleration of consumer expectations in the right direction. Brands and restaurants are coming up with new, more virtuous products in reply to increasing demands from consumers whose choices, all over the world, are also maturing.

Today we can observe an acceleration of consumer expectations in the right direction

Editorial #ownthechange Sial insights Global situation 3 research studies 5 SIAL INSIGHTS UNIQUE AND EXCLUSIVE 1RESEARCH STUDIES

SIAL has been exploring and revealing consumer profiles and food trends worldwide since 2012.

Editorial #ownthechange Sial insights Global situation 3 research studies 6 INSIGHTS

This SIAL Insights trend book presents the findings that emerge from the synergies of the biennial studies conducted by three research consultancies on behalf of SIAL.

Kantar examines consumer expectations, ProtéinesXTC produces a global overview of food industry innovation, and Gira researches the key trends in the out-of-home food market. Our expert partners decipher their 2020 findings with regards to ourOwnthechange thematic in order to provide us with a clear understanding of the world food challenges of today and tomorrow.

Pascale Grelot-Girard, Head of Market Intelligence at Kantar, has worked with SIAL since 2012 on conducting the Food 360TM survey of consumer food trends worldwide. The 2020 study provides an overview of consumer expectations, with particular emphasis on food innovation.

, has worked with SIAL not only Xavier Terlet, CEO of ProtéinesXTC Pascale Grelot-Girard, to create SIAL Innovation in Paris, but also in the other SIAL hubs Head of Market Intelligence at Kantar of , Montreal/Toronto, and Jakarta. For each SIAL event, he coordinates expert input and the process of selecting the innovations showcased by exhibitors, and produces a trend book spanning everything on offer at the show.

Gira Chairman Bernard Boutboul presents quantitative and qualitative research of the out-of-home food industry trends. His consultancy works with out-of-home food industry stakeholders, shaping their strategic thinking and action plans.

Xavier Terlet, CEO of ProtéinesXTC

Bernard Boutboul, Gira Chairman

Editorial #ownthechange Sial insights Global situation 3 research studies 7 THE GLOBAL 2 SITUATION IN 2020 AN OVERVIEW OF MAJOR FOOD INDUSTRY TRENDS

This section highlights the most important findings of 3 studies conducted by the partner experts of SIAL. It is followed by a more detailed presentation of the results generated by each study.

Editorial #ownthechange Sial insights Global situation 3 research studies 8 The more activist Consumers with more activist consumer tendencies are emerging (not at a breathless pace, but emerging) 73% of consumers have changed their eating You are what you eat behaviors in the last two years, very largely to opt for a healthier diet (70%), as well as to eat more Enjoyment, sharing, social status, lifestyle, culture, locally and seasonally (53%), to choose safer everyday limitations, financial limits... Meals, and or more wholesome ingredients (44%), and to food in general, are much more than the fulfillment respect the environment (37%). In a word, people of a primary need. want things to be better: better products, better for their health. The three studies conducted throughout the world clearly show that food is becoming a question of This trend is leading the way: stores taking principles: a social issue in which people feel a healthy approach have gained nearly involved and to which they are committed. The 10 points in 5 years to reach 32.4% in 2019 COVID-19 crisis has been a catalyst for this trend. (35.9% in North America). Restaurants are What is it that we are actually eating? following along more discreetly, addressing hygiene and safety issues which must now What are the consequences of that food on our be demonstrated (origin, traceability), and offering health, our planet, and our future as individuals, local, seasonal fare. communities, and human beings?

This edition of the SIAL is dubbed OWN THE Enjoyment: top priority CHANGE. Here, we’ll term it LET’S OWN THE While 70% of consumers worldwide state CHANGE, since the change is well underway: that they have turned to healthier food, they it is being undertaken by ever better-informed don’t want it to be less flavorful. Whether socially consumers and food providers. committed, vegan, dietetic, or lightly seared for quicker preparation, food remains, above all, a pleasure, and this is reflected in nearly half of all 2019 product innovations (48.7% worldwide, a trend even more prevalent in Asia with 51.7%) compared with 4.8% for ethics and the environment, even though this figure is rising (+3.3 points since 2015).

63% of people surveyed throughout the world consider that making good food choices is a social commitment: it means “choosing the world that we want to live in,” and

1/3 have truly taken control of their eating habits, making at least one radical behavioral change or boycotting certain brands.

Source : Kantar 2020 - Food 360 for the SIAL

Editorial #ownthechange Sial insights Global situation 3 research studies 9 Three major trend-paradoxes AN ETHICAL FORK WITH A SWISS KNIFE ARRAY OF TRENDS.

We are not all equal when it comes to food and to 2. Proximity VS Distance the struggles that we must face. Actual consumer We are choosing to eat more locally (closer commitment (broken down into four themes: health, to the seasons and closer to the field that produced production methods, environment and ethics) is the food with local, seasonal foods) and yet a real thing, but it is nuanced and indeed disparate we are increasingly using distance purchasing both in terms of themes and according to countries. methods such as delivery, digitalization, rating applications and ordering terminals... Three major trend-paradoxes emerge.

1. Me (and my health) VS the Planet (and its health) Yes, we know now that behind every food are major environmental and social issues; we know that we have the power to take action by choosing what we eat and by influencing food suppliers through our shopping cart.

3. Simplicity VS Sophistication We want simple, transparent (both in terms of food and packaging) choices, and yet we seek out the unprecedented, the exotic.

Editorial #ownthechange Sial insights Global situation 3 research studies 10 1. Me VS the World THE ENVIRONMENT (the Planet) is a subject that is more worrying but nonetheless divisive: 88% of consumers have adopted a change 23% of consumers have already made in their diet. a radical change for this reason, and 8% for ethical reasons. But while the majority 70% of consumers have not changed their decision- 44% by paying closer state that they have attention to product ingredients changed their diets making behavior to choose more sustainable food for health reasons products, worldwide awareness suggests that the environment is THE subject that deserves the most attention on the part of food suppliers (nearly half of all consumers consider that food suppliers have begun to make efforts in this arena, and that they must continue, while 3 out of 10 consider that they have not changed but should do so, with Germans and Russians in the lead). It is worth noting that ethics and the environment have shown the greatest positive developments in terms of product innovations, particularly in Europe, where in 2019, 1 innovation in 20 took an ethical 37% approach (community, ecology, etc.). state that they have done so for 53% in favor of environmental reasons. local seasonal products

Source : Kantar 2020 - Food 360 for SIAL

WORLD: HEALTH (ME) comes first and the environment I limit my environmental footprint is much farther down on the list (THE PLANET). 37% consider environmental issues 69% of the people surveyed throughout the when buying food world think that their diet could potentially pose a health risk, a concern on the rise in all 23% have made radical changes countries (except ). , at 79%, is to their food buying habits one of the three most worried countries. ME: I have strong beliefs and act accordingly

The result: restaurant menus are becoming shorter 12 % I now refuse to buy any food wrapped in plastic and simpler (less risk averse through tighter controls 11 % I’ve stopped buying certain food products on sources of supply), displaying product origins for ethical and environmental reasons. to reassure customers, and - a very Anglo- 9% I’ve stopped buying/eating certain of food brands as a result of environmental controversies American trend - even showing the calorie count for each option. Stores are offering products with Source : Kantar 2020 - Food 360 for SIAL more «essential» virtues: simpler, less processed, and more reassuring (14% of consumers state that they have already stopped purchasing a food brand because of controversial ingredients). What’s more, they are showing When questioned about pesticides a high level of interest in plant-based foods (in respect of environmental and health issues): (the number of new plant-based food products has tripled since 2019) across all departments, including fresh. 49% of consumers think that farmers are going This plant-based food trend brings the therapeutic in the right direction by reducing their use of pesticides (France scored higher, with 58%) food tendency down a notch (to represent 8.7% of worldwide innovation), with sterols, fermented products and protein-enriched products taking the lead this year. Source : Kantar 2020 - Food 360 for SIAL

Editorial #ownthechange Sial insights Global situation 3 research studies 11 2. Proximity VS. Distance CONTROVERSIAL A resounding YES to PROXIMITY in all its forms. or ESSENSIAL ? Local (spacial proximity) and seasonal products (temporal proximity) are increasingly widespread, Delivery = plastic and are becoming a habit for 53% of the people The explosion of take-out service does beg surveyed (64% in France). the question of the plastic rubbish that Fair trade (community proximity) is rising all it generates. over the world, and this is a subject that people expect more from (33% compared to 30% for the Researchers analyzing the recycling of plastic environment, 24% for food safety and production packaging in China estimate that takeaway methods). food alone generated 1.6 million metric In restaurants, the portion of local and seasonal tons of waste in 2017. products should increase; organic products, By 2019, consumer habits had evolved however, are showing a decrease. The number of to the point where this industry was digital applications for ordering local products have generating 9 times that amount. skyrocketed. In terms of product innovations, This waste includes 175,000 tonnes of more attention is being brought to ethically- disposable chopsticks and 164,000 tonnes minded products (+3.3 points in 5 years, 4.8% in of plastic bags.

2020) with products that ensure fair payment to Source : https://siecledigital.fr/2019/05/29/la-livraison-de-plats-plonge-la-chine- farmers and/or that foster the local economy and dans-un-ocean-de-plastique/ associative partnerships. New: major corporations are launching fair trade ranges.

The DISTANCE side of the equation is expressed through the extensive digitalization of services and an increase in deliveries (in the UK and Russia in particular). This trend has been just exacerbated by the COVID crisis, which has led to an explosion of Click & Collect and Drive services, including at very premium restaurants for which 28% this is a new concept. Another new concepts: Dark Kitchens (restaurant kitchens that also manage take-out and delivery orders) are meeting with of Anglo-American consumers (from the UK & US) increasing success. Cost-effectiveness is the are attentive to eating locally or seasonally, compared byword. with 69% in India, 59% in Southeast Asia and nearly 2/3 Anti-waste applications are flourishing, menus are of all consumers in France and . displayed on smartphones, robots cook up burgers Source : Kantar 2020 - Food 360 for SIAL and mix cocktails (like in the USA), but clients are still welcomed by humans. While digitalization is clearly a trend, the human factor remains a solid value and a convivial part of a meal. The scant success of organic food at restaurants results from a lack of trust in the authenticity of this type of product, but also because it is perceived as not always 53% corresponding with the sought-after taste. In other words, enjoyment is more of consumers worldwide have changed their eating habits in favor important than wholesomeness of more local and/or seasonal products when dining out. (64% in France) Bernard Boutboul Source : Kantar 2020 - Food 360 for SIAL

Editorial #ownthechange Sial insights Global situation 3 research studies 12 3. Simplicity VS. Sophistication CONTROVERSIAL Ingredients are considered very important, or ESSENSIAL ? and are being increasingly scrutinized by consumers (through ratings applications such Plant-based, meat... Or both? as YUKA and product labels with increasingly Meat is one of the subjects that is central to precise composition information). Slightly fewer both health and environmental concerns (let than half of all consumers (in the world and us not forget that animal farming generates in France) have become more attentive to 14.5% of all greenhouse gases... Or as ingredients, and up to 20% (in , Southeast much as all forms of transport combined). Asia, Russia and France) can go so far as to 50% of consumers worldwide think that boycott. The products are MORE SIMPLE and less food companies are now addressing animal processed, with shorter ingredient lists that are welfare more effectively in their offerings, well-explained on the labels, generally featuring but they still have further to go, while 29% a star ingredient (with a clear benefit: health, taste, think that they have yet to take animal welfare etc.) that is clearly highlighted. Packaging is also seriously, despite the fact that they should. We becoming more minimal and direct, with a focus are seeing a boom in products that offer an on recycled / recyclable materials. alternative to meat (meat substitute or meat But while product recipes are becoming simpler analog products like those of pioneer brand and more legible, tending towards natural Beyond Meat) on supermarket shelves, but ingredients, taste remains just as high a priority, not so much in restaurants. The decline in meat and this year translates into SOPHISTICATION consumption will be slow on average, and & sensory appeal through flavors and textures, with almost zero in Europe, where these substitutes unprecedented ingredients and a strong tendency do not (yet?) attract the same level of interest towards the exotic (Korea and Sub-Saharan Africa that we see in the USA and Asia. in particular) or luxurious (such as the truffle).

of consumers worldwide have changed their eating habits in terms of paying 44% more attention to ingredients. Source : Kantar 2020 - Food 360 for SIAL

IN SUMMARY More committed, selective consumers are asserting their convictions through their food choices. But food suppliers must, in the consumer opinion, must still ramp up their efforts and actions, particularly on ethical or environmental subjects. Do you think that food industry stakeholders have taken action to improve product quality in the following areas?

3 5 4 5 Locomotives: India and Southeast Asia 24 are leaders on every subject 24 30 31 Caboose: The Anglo-American model (UK & US) take little attention to environmental or ethical subjects, taking a very utilitarian 54 53 approach to food. 50 48 What about France? France keeps up pretty well with the worldwide averages, particularly showing a high rise in awareness 18 19 17 17 of the relationship between health and food FOOD METHODS & ENVIRONMENT ÉTHICS (79% compared with 69% worldwide). French SAFETY PROCESS consumers expect more in terms of food safety, Yes succesfully No, and it should be done environmental considerations (from packaging Yes, but more should be done No, but it’s not necessary to food waste to pesticides to biodiversity to production methods), and ethics (especially Fair Trade). Source : Kantar 2020 - Food 360 for SIAL

Editorial #ownthechange Sial insights Global situation 3 research studies 13 FOCUS ON THE 3 RESULTS OF 3 RESEARCH STUDIES OUR EXPERTS DECIPHER THE 2020 FINDINGS

Moving beyond their points of convergence in order to conduct a detailed analysis of each study.

Editorial #ownthechange Sial insights Global situation 3 research studies 14 CONSUMER EXPECTATIONS

Editorial #ownthechange Sial insights Global situation 3 research studies 15 OWN THE CHANGE: Are we ready? The results of this study reveal that the consumer is increasingly aware of the impact of food on health and the environment, and of the 63% of people power that each person has to change things surveyed throughout and influence food suppliers (informed choices, boycotts, etc.). The 2018 trend was towards taste, the world consider that authenticity, and the senses... And this year, the senses and authenticity are on the rise. making good 73% of consumers throughout the world food choices is consider that they have changed their dietary habits over the last two years. These changes a social are particularly pronounced in Southeast Asia and India, while the average in Anglo-American commitment: countries is lower. it means These consumer-led changes include: “choosing the - Opting for a healthier diet (70%) - Eating more local and/or seasonal products world that we (53%) - Opting for food products with no controversial want to live in. ingredients (44%) - Opting increasingly for more eco-friendly and/ or ethical products (37%)

Percentage of consumers who believe that choosing their food carefully is a societal commitment

63 80 74 59 69 69 73 63 66 68 34 37

TOTAL FRANCE UK SPAIN ITALY USA RUSSIA CHINA ME SEA INDIA

Methodology These results were taken from the Kantar Food 360 study, an international survey conducted online in a partnership with Sial PARIS every two years since 2012. 11 countries are surveyed: France, Great Britain, Spain, Germany, USA, Russia, China, the Middle Eastern countries, Southeast Asia (Indonesia and Malaysia), and two new countries: India and Italy. This study was performed prior to the lockdown, with exception of Italy, China and India.

Editorial #ownthechange Sial insights Global situation 3 research studies 16 Diet as a risk to health Health is the principal factor of change in the dietary habits of consumers worldwide: on average, 70% consider that they have changed their dietary habits in favor of healthier ones, with figures as high as 83% in Spain and 81% in China. This increase of health/food awareness continues 70% to progress in almost all countries (except China). of consumers In France, 79% of consumers consider that food have changed their diets to improve their health can pose a health risk. This figure is higher than in all the other countries except in the Middle East and in Southeast Asia. But only 63% of French consumers claim to have made a change for a healthier diet.

They key drivers 39% 36% 33% of healthier diets seeking reducing ingredients pursuing a more (worldwide) health benefits such as sugar, salt and fat balanced diet

2012-14 2016 2018 2020

92 99 91 81 85 85 86 79 77 79 79 76 77 75 67 69 72 69 71 66 62 67 62 66 59 57 56 57 59 55 60 55 55 53 50 49 55 44 39 33 33

TOTAL FRANCE UK GERMANY SPAIN ITALY USA RUSSIA CHINA ME SEA INDIA EXCLUDING IT/IN/SEA Share of consumers who believe that food can pose a risk to their health

Editorial #ownthechange Sial insights Global situation 3 research studies 17 Hunting down bad ingredients More local = healthier and more reassuring More than half of all the world’s consumers consider that they have changed their dietary habits to turn to more local, seasonal products, a figure that rises to 64% in France but that is much lower in the United States and Great Britain (at just under 30%).

are44% paying more attention to ingredients. Protecting yourself before the environment It is in the field of more sustainable food that fewer consumers have changed their behaviors: just 37% of consumers worldwide have changed their diets for this reason. The figure drops to 20% for the United States and Russia. The reason for this might be that the availability of sustainable food might still be insufficiently developed or that it is not yet affordable enough. The figure rises to 50% in Russia, 56% in Spain and 61% in Southeast Asia. Depending However, 1/5 of the world’s consumers state that on the country, up to 20% of consumers go they have already made radical dietary changes so far as to stop consuming certain controversial in favor of the environment. ingredients altogether. This figure is particularly low for the United States (7%), the (8%), and China (8%).

91% would like more transparency and clarity in product composition, and 79% demand that the reduction of controversial ingredients be ramped up (29% consider that no efforts have been made yet in this direction).

TOTAL FR UK GE SP IT US RU CN ME SEA IN

TOTAL ENVIRONMENT 37 39 30 44 38 40 20 22 34 30 53 54

I’ve reduced foods with high carbon foodprint 13 15 7 10 13 15 5 4 12 11 29 19

NET RADICAL CHANGE FOR ENVIRONMENT 23 25 19 24 25 20 14 13 19 18 31 43

Today I refuse buying plastic packaged food 12 8 10 15 9 10 7 10 7 10 18 26

I’ve stopped eating/buying some food items for ethical and environmental reasons 11 14 10 10 16 11 7 3 9 7 17 17 I’ve stopped eating/buying some food brands because of environmental controversies 9 13 5 6 11 8 6 4 7 6 17 17

Share of consumers who have changed their eating behavior for environmental and/or ethical reasons Source : Kantar 2020 - Food 360 for SIAL

Editorial #ownthechange Sial insights Global situation 3 research studies 18 Militancy through the shopping cart Certain consumers are laying claim to this change more 1/3 of consumers have seriously, becoming activists: approximately 6 consumers actually exercised their out of 10 worldwide consider that food choices are power by making at least tantamount to a social commitment. The figure is much lower in the United Kingdom and United States. one radical change in their More than 20% of consumers worldwide even declare behavior or by boycotting that they act as references for their friends and family, certain brands for encouraging others to “eat better.” However, few (10%) are activists in a formal way, such as members of an environmental or association. ethical reasons or because of controversial ingredients.

50 41 40 32 34 34 30 27 29 25 19 25

TOTAL FRANCE UK GERMANY SPAIN ITALY USA RUSSIA CHINA ME SEA INDIA

Percentage of consumers who have made radical dietary changes for reasons linked to ethics, the environment, and/or ingredients. CONTROVERSIAL How are food suppliers perceived? or ESSENSIAL ? Nearly 80% of people surveyed consider that food suppliers have begun to take action to improve their products (with figures as high Farmers reap the as 94% in Southeast Asia). But consumers expect even more action, commitments they have which opens up more opportunities for innovation. sown. Of course, what we eat arises from agriculture, and we also consider that this sector is stepping up 3 4 5 Have food industry stakeholders already 5 to OWN THE CHANGE. taken action to improve food quality? 83% of people surveyed 24 24 30 31 No, but it’s not necessary (with results rather No, and it should be done homogeneous throughout Yes, but more should be done the various countries, Yes, succesfully with a peak at 94% in 54 53 50 48 Southeast Asia) globally consider that farmers and animal farmers have

19 18 17 17 made efforts to improve the quality of their products. Particularly on the subject of a lower use of pesticides (49%) and a better consideration of FOOD SAFETY ETHICS animal well-being (39%). PROCESS MÉTHODS &

ENVIRONMENT New: More efforts are being demanded in the use of new, alternative Two major trends are emerging: the optimists (in China, the Middle sources of procurement East, Southeast Asia, India) and those who demand more efforts (24%). (Russia and Europe, with Germany showing a high demand for action on almost every subject).

Editorial #ownthechange Sial insights Global situation 3 research studies 19 COVID 19: ACCELERATING CONSUMER EXPECTATIONS 5 MAJOR INSIGHTS EMERGE FROM THE INTERNATIONAL SURVEYS CONDUCTED BY KANTAR ON HOW CONSUMER ATTITUDES AND BEHAVIORS HAVE EVOLVED DURING AND SINCE THE LOCKDOWN:

AN EVEN GREATER EMPHASIS ON LOCAL A CLEARER SPLIT IN TRADE-OFFS BETWEEN AS A GUARANTEE OF REASSURANCE ECONOMY AND PREMIUM AND PROXIMITY As a result not only of tighter household budgets, The Covid 19 crisis has highlighted some but also of more assertive choices in favor aberrations in the supply chain and a dependence of brands offering the best guarantees. on the basics of life, with particular emphasis on those produced by agriculture. There is also A NEW IN-HOME / a greater drive to protect household budgets. OUT-OF-HOME BALANCE New patterns of remote working, continued global NEW TRADE-OFFS BETWEEN SLOW LIFE anxiety about the pandemic, and a return AND FAST LIFE to normality that seems remote are having The lockdown had an immediate impact on food a negative medium-term impact on out-of-home and diets, and is expected to become the new consumption, balanced by a positive effect on normal for some. It provided the opportunity in-home consumption. to cook more, and to begin or develop vegetable growing as consumers take back control of what they put on their plates.

INCREASED AWARENESS OF SUSTAINABILITY ISSUES The global population has seen the positive environmental effect that the economic slowdown has had, and the importance of individual stakeholders in the food chain. The result is a heightened awareness in favor of a more sustainable diet that shows greater respect for the environment, animal welfare and people.

Editorial #ownthechange Sial insights Global situation 3 research studies 20 GLOBAL FOOD INDUSTRY INNOVATION

Editorial #ownthechange Sial insights Global situation 3 research studies 21 Drivers of industrial food CONVENIENCE Product handling innovation Travel-friendly Five major axes, representing Time-saving overall consumer expectations, A drop from 15.1% to 7.4% over five years: it is now an expected criteria rather than an added value have an influence on industrial for the consumer. No major innovations have been food innovation trends. undertaken on this subject for several years.

ENJOYMENT FITNESS Exoticism Weight loss Sophistication Well-being Sensory variety Cosmetic Fun The innovations affecting personal appearance “Enjoyment” is the most important category in food (weight loss / cosmetic) have been fluctuating innovation worldwide at 48.7%. It remains the between 5 and 7% over the last five years. It is major area of innovation in all regions of the world, in North America that this area is showing the most with North America below the curve (41.7%) active dynamic, with a number of food innovations and Asia above it (51.7%, contrary to the popular that have increased by 4.7 points over one year. belief that Asia is a land of healthy food). ETHICS Solidarity HEALTH Ecology Natural Community and ecology are values that are Medical emerging from the shadows. The worldwide share Plant-based of ethical innovation is nearing 5% (compared A significant increase: from 23.3% to 32.4% with 1.5% in 2005) and is rising everywhere, in 5 years, with a slight decrease in 2019 compared particularly in Latin America (+2% in one year). with 2018. Health innovations mean promises And it is most important in the Occidental countries, of safety and harmlessness that are often justified particularly in Europe (5.2%). by the natural, simple character of the ingredients used, and in particular plant-based ingredients. This area is less buoyant in Asia than in the rest of the world at 28.5% (despite an increase by 3.3 points over one year)

Methodology These results are taken from the Baromètre Mondial de l’innovation, conducted each year by ProteinesXTC. This 2020 edition lists and analyses all the major food consumption innovations launched throughout the world from January 2019 to December 2019 that are registered in the Inspire database.

These innovative products, created by manufacturers and distributors throughout the world, address identifiable issues. ProteinesXTC segments these issues using its Trend tree, a matrix segmentation developed by ProteinesXTC to match up innovative industrial answers with the fundamental consumer expectations that inspired them (Insights). For more information: www.proteinesxtc.com/.

Editorial #ownthechange Sial insights Global situation 3 research studies 22 The major trends by global region

Worldwide: pleasure and health are the drivers of innovation

What are the global trends and innovations? TOTAL GLOBAL FOOD MARKET 2018 TOTAL GLOBAL FOOD MARKET 2019

28,1% SENSORY APPEAL 29% 15,4% SOPHISTICATION 15,7% 16,3% NATURALNESS 15% 10,6% MEDICAL 8,7% 6,7% PLANT-BASED 8,7% 6,2% PRODUCT 4,9% CONVENIENCE 48,7% 2,8% What are the global trends and innovations? 47,4% ECO-FRIENDLY 3,9% 2018 2,7% SLIMMING 2,9% 2019 2,5% 33,5% ENERGY/WELL-BEING 3,6% 32,4% 1,8% EXOTICISM 1,8% 2,1% FUN 2,1% 2,1% TIME SAVING 1,6% 1,5% 9,9% MOBILITY 0,9% 6,8% 7,4% 4,8% 5,5% 0,9% 3,6% SOLIDARITY 0,9% 0,3% COSMETIC 0,3% ETHICAL FITNESS PRATICALITY HEALTH PLEASURE

The trio of the most innovative products in the world in 2019

Food innovation trends by region: Non-alcoholic beverages •Plant-based innovations challenging health innovations 8,1% in NORTH AMERICA +6 points (compared with 7.7% in 2018) •A massive enjoyment trend in LATIN AMERICA +11 points compared to 2018 to reach 49.2% in 2019 Savory frozen foods •Enjoyment stable in ASIA 51.7% of innovations, well above the world average, with an increase in the health trend as medical 6,5% innovation reaches 16.8% (compared with 6.9% in 2018) •Enjoyment and health in EUROPE, with plant-based innovations rising as a health driver 8.6% in 2019 compared to Fresh prepared foods 7.2% in 2018 to surpass the purely medical innovation area 8% in 2019 compared with 9.2% in 2018 6,3% • In the MIDDLE EAST / MAGHREB, in order of importance (compared with 6.3% in 2018) are enjoyment, health and also convenience the highest score in the world with 21.8% compared with 7.4% of the world average

Editorial #ownthechange Sial insights Global situation 3 research studies 23 This year’s analysis of innovations Trend 2 : by ProteinesXTC reveals 3 major trends in global food innovation: Straight to local Production/consumer proximity in terms Trend 1 : of space (near home) and in terms of time (seasonal products) with a strong development in showcasing Straight to essential local products and even hyperlocalization. A simple thus reassuring product: avoidance Proximity with the community and direct of controversial additives such as pesticides, connections with consumers, providing a suitable distrust of ‘ultra-processed’ food... A tendency answer to consumer demands and values, going towards simpler recipes and shorter ingredient lists so far as to involve the consumer in product for products that are more similar to the “home- development such as in the case of C’est qui le made” version. People want proof (such Patron co-created products. as the Nutriscore). For example, “Carrots, Proximity with considerations, sharing ethical a dash of curry… and that’s all.” and social values with consumers, with an increase This simplicity is reflected in the development of products that highlight respect for farmers, of plant-based foods that are simple and reassuring for the environment (carbon footprint), and for the consumer, in the ultra-fresh or plant-based for animal well-being (particularly in the chicken fresh prepared food aisles, even replacing meat industry in Europe). with the rise of a new generation of substitutes called “meat analogues” (Beyond Meat is meeting with enormous success in the USA and Asia). And the essential includes lighter packaging: using CONTROVERSIAL less or recycled material, avoiding the superfluous, or ESSENSIAL ? or bypassing packaging altogether (bulk). Very expensive local, or overly expensive local? Price remains key in this health and economic crisis context. People are ready to pay a little The bottom line is that more, but only for real benefits. Local food product simplicity is more is a true trend but it remains more expensive, cutting off a portion of the population from clearly understood: consumers this type of product. Like organic, local is are reassured because they a very real trend (especially during the crisis), understand. but remains more expensive, and therefore Xavier Terlet excludes some people from this type of product on the basis of affordability.

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1. Knorr creamy soups with a clear ‘on pack’ list of ingredients and the reassuring ‘Et c’est tout’ (And nothing else) label 2. The natural antioxidant properties of Maynards Bassetts Super Fruits Jelly candies 3. Intermarché milk with its emphasis on the producer and fair trade 4. C’est qui le Patron canned sardines: a product created from specifications set by its community of consumers (fair pay for fishermen, eco-friendly nets, etc.)

Editorial #ownthechange Sial insights Global situation 3 research studies 24 Trend 3 : Straight to understated enjoyment Eating still is, and will always be, about enjoyment. But enjoyment is becoming more understated, far from the overkill that tends to gadgetize a product. •The product asserts itself as simply good •Promises of gratifying small pleasures, not sophisticated ones: just simple and economical. Maximal pleasure for the price, resulting in understatement that may be imposed or chosen. •Plant-based foods become indulgent while maintaining their “good health” virtues: healthy fare that promises simple, delicious flavor. •More powerful tastes – but not divisive ones – are appearing in supermarket aisles and everyday products, such as IPA beer, for example. •Exoticism, with specialties from lesser-known origins (Korea, Mediterranean Rim, etc.), regions of the world that evoke the natural world and offer surprising tastes. •And it is also about the simple, comforting pleasure and togetherness facilitated by simple products we all enjoy sharing.

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7. SPC fruit puree pouches: 100% natural / 0% additives labeling 8.Andros rice with coconut milk and vanilla from Madagascar; combining vegan appeal with luxury taste 9.Pelforth India Pale Ale for its distinctively strong taste

Editorial #ownthechange Sial insights Global situation 3 research studies 25 WHICH TRENDS HAS COVID ACCELERATED OR DECELERATED IN FRANCE? (ACCORDING TO SIAL INNOVATION EXPERT PROTÉINESXTC)

1– LOW PRICE 6– SOLIDARITY FIRST, PLANET Whether as a result of having to or deciding SECOND to, French consumers are spending less in response to an uncertain future. We are seeing the beginning The crisis has focused attention and solidarity of a major economic crisis. Consumers are very on issues that directly affect our immediate sensitive to value for money. environment. Caregivers, frontline workers, etc. They are wary of false added value... In the same way, companies have prioritized their own ecosystems: employees, suppliers 2– GREATER SIMPLICITY and customers.

Products whose simple, understandable 7– HEALTH, NATURALLY... composition provides reassurance. Less processed and less industrial. Natural plant-based foods are seen as safe and have provided a high level of health value 3– LOCAL, YES BUT... during this crisis.

Consumers are interested in local products... but not 8– THE GROWTH IN ONLINE at any price. French products have sometimes been unaffordable for many French consumers during The online world has seen the arrival of new the crisis. customers who have been forced to try keyboard shopping. Many of them are seniors. And having 4– THE EMERGENCE OF USEFUL seen how simple and practical this form of shopping PACKAGING can be, many of them will remain loyal to the online world. The end of the ‘zero packaging’ dream. Often disparaged, packaging has regained respectability 9– DO-IT-YOURSELF AT HOME on the basis of protection against contamination. The bare minimum of packaging that provides Making two family meals a day has created new sufficient protection, product life and practicality vocations but, more importantly, new habits. of handling. Less material, recyclable and recycled But will those habits persist after the lockdown alternatives, etc. when consumers have less time available? It will, if the products on offer deliver the required 5– A PREFERENCE FOR levels of convenience and time saving. OWN-BRANDS... AND LEADING BRANDS 10– PLEASURE, COMFORT AND TOGETHERNESS The increased appetite for simple, economical products has boosted own-brands and leading Food is sometimes, and increasingly, the only brands. This is particularly true of categories such source of small treats available during the day. as organic, where the breadth of ranges is catching Especially in a time of crisis. These pleasures up with those of smaller producers (local, animal are far from ultra-sophisticated. welfare, etc.) and are less expensive. They are simple, accessible and comforting pleasures.

Editorial #ownthechange Sial insights État des lieux mondial 3 research studies 26 RESTAURANTS MORE CAUTIOUS THAN THE REST OF THE FOOD INDUSTRY

Editorial #ownthechange Sial insights Global situation 3 research studies 27 The restaurant industry is timidly making Number of meals consumed an approach to OWN THE CHANGE: it appears that it is catching up with consumer outside the home expectations, but at its own pace. Spain tops the world out-of-home eating league Spaniards lead the world, with more The study reveals a mixed movement in terms of than 4 meals a week taken outside the home and - ethical & environmental issues which is certainly surprisingly for us in France - eat 8 times a day due to the double life of consumers (a more on average (snacks and tapas). committed behavior at home and a more indulgent one when dining out). But the sector is indeed In global terms, eating out is governed by three changing to follow the major consumer trends. factors: purchasing power, the density of supply (very dense in the USA, for example) and the sharp decline in culinary expertise worldwide.

SPAIN 4,3 3,8 USA 3,6 18 ITALY 3,4 CHINA 2,6 In the US, consumers average 18 intakes of food per day FRANCE 2,0 (the famous “grazing” phenomenon) compared with 6.2 in France, UAE 2,0 8.2 in Spain and 4.5 in Sweden. UK 1,6 GERMANY 1,1 INDIA 1,1 INDONESIA 0,5 RUSSIA 0,5

0,0 2,0 4,0 6,0 Number of out-of-home meals consumed per week

Methodology

The first part of the survey is devoted INDONESIA to the numbers and economic data specific 2% to national restaurant markets. These data USA are sourced from companies specializing 31 % in this sector. The second part takes a more CHINA qualitative approach to identifying national 38% food trends. Gira has drawn on multiple sources (interviews with public services, discussions with industry professionals, documentary CANADA 2% research, benchmarking, etc.) to derive FRANCE 5% relevant and complementary information INDIA 3% UK from this data. UAE RUSSIA ITALY 4% 1% 1% SPAIN 5% GERMANY 5% 3%

Market share by sales of out-of-home meals worldwide

Editorial #ownthechange Sial insights Global situation 3 research studies 28 Exporting countries (UAE) spend the most The figure for Spain is surprising, with an on average: $15.5, compared with a world annual spend of $1,931 average of $8.71 The USA and Spain lead the way with respective The Emirates are far ahead, with an average check expenditures per inhabitant of $1,820 and $1,931. that amounts to double the average worldwide Despite the fact that inhabitants spend little for check: culturally, a meal out there is an event where each meal, the high amounts are explained by the “Wow!” effect is essential. the considerable number of average food intakes They are followed by a group of countries where throughout the day: 18.2 in the USA and 8.4 the average check ranges from $7 to $12: France, in Spain (compared with France at 6.2). Indonesia Spain, Italy, Germany, the USA and Canada. and Russia stand out for few meals out, with Then come Indonesia, Russia, China and India the exception of the Moscow and Saint Petersburg at below $7. areas. In China and India, people dine out a little more but spend little.

$ 18,00 $43 $15,5 $15,1 INDIA $ 16,00 RUSSIA $ 133 $ 14,00 $12,4 INDONESIA $152 CHINA $ 518 $ 12,00 $10,9 $9,8 $ 10,00 GERMANY $623 $8,6 $8,4 $ 8,00 UK $ 1273 $6,9 $6,4 $5,4 FRANCE $ 1319 $ 6,00 $4,5 CANADA $1358 $ 4,00 $0,8 ITALY $1478 $ 2,00 UAE $1584 $ 0,00 USA $1820 UK UAE USA ITALY INDIA SPAIN SPAIN $ 1931 CHINA RUSSIA FRANCE CANADA

GERMANY $0 $500 $1000 $1500 $2000 $2500 INDONESIA SPENDING/PEOPLE

Average check for out-of-home meals Annual per capita expenditure on out-of-home meals

Editorial #ownthechange Sial insights Global situation 3 research studies 29 The great battle: CONTROVERSIAL local or organic? or ESSENSIAL ? If, as the Kantar study reveals, demand for orga- The double life in decline nic products remains stable, or is even declining The double life of consumers (which consists slightly, demand for local products is growing of eating healthfully at home and indulging everywhere, with the exception of the UAE, where at restaurants) is declining; meaning that imports are a necessity. the home/restaurant behaviors are tending, The restaurant industry is returning to more ever-so-slightly, to balance out. The food/ seasonal menus on the basis of taste (a winter health connection is one way to explain this tomato is less tasty than a summer tomato). harmonization between the two behaviors.

Meat consumption is declining, especially in Canada, the UK and Germany. In response to this trend, protein-rich alternatives Digitalization to make restaurant such as ‘plant-based meat’ are taking off in Anglo- Saxon countries, but remain weak in Europe. life easier, safer and faster The Latin countries remain great meat eaters, as Technology is appearing on restaurant tables evidenced by the appearance of Premium Steak in several forms. Payment cards are increasingly Houses concepts all over these countries. scant, giving way to digital payment, which limits Another striking fact is that moves to reduce food contact with payment terminals (reassuring in these waste vary greatly from one country to another. COVID times). Indonesia, Russia, USA, China and India are lagging behind, whereas awareness of this issue in In many ways, human intervention is taking the UK, Germany and Canada is very high. a backseat with the arrival of these technologies. Against this background, the anti-waste movement Facial recognition is strongly developing, is driving the development of new concepts, such particularly in China (a culture less wary as charging for what is left on the plate, and table of personal data exploitation). service for buffets. “Restaurant” applications are on the rise all over the world, both for consumers (consulting Our two pet peeves: the menu, rating the restaurant, booking, etc.) and for restaurants (stock management, deliveries, etc.). plastic and processed Whether at home or in restaurants, there is now a Robotics remain marginal: while robots might worldwide awareness of the relationship between prepare cocktails or burgers before customers’ diet and health. eyes (as in the USA), it’s more about putting Consumers are increasingly demanding on the on a show than actual service. Human beings issue of food safety: they are demanding proof remain important in our relationships with (showing a strong preference for nationally-sourced restaurants: a Japanese restaurant that tested robot food), they like to hear restaurant owners talking servers quickly went out of business. about this issue, and nowhere more so than in China as a result of its repeated health crises and in Another subject is the ordering terminal: the United Arab Emirates, where so many products extremely widespread throughout the world (except are imported. in Indonesia and India), they are now on the Special diets (gluten-free, lactose-free, vegan, etc.) decline, particularly because of COVID. Fast food show no noticeable change, and are not seen as restaurants are considering other alternatives as important in China (where gluten-free/lactose- smartphones. free has been around for a long time), and are rejected in Southern Europe, where people tend to cook at home. GMOs are not a major issue for consumers either, although it should be noted that China, which is a pioneer in this field, is increasingly reluctant to discuss them.

Editorial #ownthechange Sial insights Global situation 3 research studies 30 One, two, three, order! The COVID crisis has ramped up the rise of delivery services, particularly in China, where they COVID-19, A TREND CATALYST are booming, as well as in the Emirates and in Russia (but very little in the UK). Overall, delivery While the transformation of the restaurant is preferred over Click & Collect. One highlight: sector had already begun for the 2018 during the health crisis, Premium restaurants edition of the SIAL, the consumer hopes (gourmet, casual fine dining) successfully that in 2020, changes will take place more tested this consumption mode, and it should quickly and be more significant. However, become a regular feature. the COVID-19 crisis will certainly ramp The increase of delivery methods has led to various trends up or down. the development of in-house Dark Kitchens, in particular in the USA, Canada, the UK and the Emirates: the concept consists of increasing the And the big winners are... Digitalization and more committed sourcing, cost-effectiveness of a kitchen by using it for on-site shorter supply chains, and more local dining, take-out and home delivery. Kitchens are products. The payment terminal has become also tending to be increasingly open (with a notion problematic with the COVID crisis: clients no of putting on a show that is important for restaurants longer wish to hold a payment terminal in that are struggling for renewal on the subject), their hands, and payment dematerialization especially in luxury establishments throughout the will increase. The post-COVID age will world (less in China and Italy). COVID-related also be one of menu dematerialization and health issues will surely slow this progression. ordering ahead.

Weak signals: a restaurant The losers? The reduction of plastic has been postponed industry that is more direct, more for hygienic reasons, and the development quality focused, more personal of organic food - already relatively low in the restaurant sector - is likely to stagnate. and more convivial. 1. A la Carte and fixed-price menus are: •Increasingly short, with a rise of specialty restaurants (more reassuring than generic restaurants with long menus). •Increasingly rapid rotation •Increasingly more seasonal fare in the name of taste •Increasingly committed to social and environmental issues

2. The rejection of fast food and junk food for reasons of health and safety, but also because the products are not considered trustworthy. The trend is boosting intermediate and luxury fast food, which is developing all over the world.

3. David or Goliath: intimate vs gigantic. Two sizes of restaurant concepts are emerging: very small establishments that offer a real, sincere proximity with the client, and gigantic (food court) concepts that put on a show and provide a “living space”.

Editorial #ownthechange Sial insights Global situation 3 research studies 31 INTERNATIONAL MEDIA CONTACT

Agence 14 Septembre [email protected]

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