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Trends in Collagen Jorge Sarasqueta - Director of Latam

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Trends in Collagen Jorge Sarasqueta - Director of Latam Trends in Collagen Jorge Sarasqueta - Director of Latam May 2017 About Innova Market Insights • Leading global market research company focused on trends and innovation in F&B and ingredients. • We serve our clients with our Innova Database, which the is largest F&B new product launch database: • Based on a network of F&B professionals • Tracking new products in more than 75 countries • Adding more than 200,000 new products per year 2 2 Trends in Collagen TOPICS FOR TODAY 1. Overview of collagen NPD 2. Application of collagen 3. What’s next? 4. Overview of gelatin NPD 5. Application of gelatin 3 3 Overview of collagen NPD Collagen is on trend; steady growth over past 10 years • Launches containing collagen have been rising for past ten years: • Most of growth is attributed to supplements and sport nutrition. Index number of new product launches of food & beverages* tracked with collagen (Global, 2007=100) CAGR 33% 1400 2007 -2016 1200 1000 800 600 400 Index number of new product launches product new of number Index 200 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 5 5 *: food & beverages exclude meat, fish & eggs, pet food, oral care and clinical nutrition. Latin America and Asia are catching up the developed market for collagen use • Latin American and Asian markets show the fastest growth in terms of collagen applications, featuring CAGR of 31% and 28% respectively over the past five years. +10%* Europe +18%* +28%* Asia North America +31%* Latin America 6 6 *: CAGR of the food & beverage (exclude meat, fish & eggs, pet food, oral care and clinical nutrition) new product launches tracked with collagen from 2012 to 2016 Functional benefits drive application in supplements • Supplements and sports nutrition lead collagen applications over past 5 years. • Health benefits of collagen drive innovation of the ingredient. Percentage of food & beverages* new product launches tracked with collagen in top 10 market categories (Global, 2012-2016) 0% 7% 14% 21% 28% 35% Supplements Sports Nutrition Confectionery Ready Meals Snacks Soft Drinks Cereals Dairy Bakery Soup 7 7 *: food & beverages exclude meat, fish & eggs, pet food, oral care and clinical nutrition. Key categories with collagen regionally North America Europe Asia Sports Nutrition 39,0% ↓2.9% Supplements 41,9% ↑1.0% Supplements 64,4% ↑7.9% Snacks 17,0% ↑5.1% Confectionery 12,0% ↓3.3% Snacks 17,3% ↑12.7% Ready Meals 13,7% ↑2.3% Dairy 8,7% ↑3.3% Supplements 12,4% ↓3.2% Ready Meals 8,1% ↑1.5% Sports 1Nutrition 15,4% ↓15.2% Cereals 5,4% ↓0.1% Soft Drinks 7,8% ↓2.1% Latin America Supplements 40,2% ↑3.5% Sports Nutrition 25,2% ↓0.5% Soft Drinks 10,2% ↑7.3% Cereals 9,4% ↓1.4% Dairy 5,5% ↓1.4% 8 8 • Percentages of the charts represent the categories as percentage of new product launches tracked in the respective region in 2016 • Increase ( ↑) and decrease ( ↓) in percentage points (%) compared to 2015 Application of collagen Mobility platform growing fast | healthy aging is a growing market • Demand for healthy aging driving interest in supplements for skin, joint and bone health. Index number of new product launches tracked containing collagen per supplement positioning (Global, 2012=100) 2012 2016 CAGR 61% 49% -2% 11% 84% 1200 2012 -2016 1000 800 600 400 Index number of product launches product of number Index 200 0 Skin Health Joint Health Weight Management Women's Health Bone Health 10 10 Joint and bone health are growing opportunities INCREASING MOBILITY STRUCTURAL PROTEIN OF TISSUES JOINT HEALTH Solgar No.7 Joint Support And Comfort Vitabiotics Jointace Collagen Macronutrient Gelicart collagen supplement Dietary Supplement Supplement With Glucosamine, Collagen, (LATAM, Mex 2014) (United States, Aug 2016) Chondroitin And Vitamin D Description: Solgar No.7 joint support is the (United Kingdom, Dec 2016) Description: Dietary supplement based on next generation alternative after glucosamine Description: Jointace collagen provides a high- bioactive collagen peptide (FORTIGEL), to that increases mobility, flexibility and range grade collagen which is hydrolysed to improve support long-term joint health of motion in sensitive joints … absorption Collagen is a structural protein found in several connective tissues in the body 11 including bones, cartilage, gums, skin, tendons 11 and blood vessels. Latin American consumers are very concerned about their health • Mobility related health issues like osteoporosis, bone health and joint health problems are among the most important concerns, especially for Argentinean consumers. % of consumers reporting to be very/extremely concerned about: Mexico Brazil Argentina Reduced physical 49% activity levels due to 57% health 62% 50% Osteoporosis 58% 62% 50% Joint health problems 63% 65% 25% Bone health/strength 68% 72% Appearance/skin 35% 62% health 68% 0% 25% 50% 75% 12 12 Skin health has been traditional use for collagen in Latin America SKIN ELASTICITY SKIN DIETARY SKIN MAINTAINING Brn Foods Foods Collagen Powder Dietary Essential Nutrition Mistura Para Preparado De Geneo Skin Collagen, Lycopene And Carotene Supplement with Strawberry Flavor Babida A Base De Colageno Sabor Cranberry: Dietary Supplement Powder (Argentina, Aug (Brazil, Nov 2016) Collagen Skin Dietary Supplement With 2016 ） Cranberry Flavor (Brazil, Mar 2016) Description: …In addition, it is also important Claims: Studies has proven that hydrolysed because it is a protein that participates in the Description: Collagen Skin dietary supplement collagen contributes to maintain skin firmness composition of bones, tendons, cartilage and acts directly on skin cells, minimizing the and elasticity, carotene associated with skin, helping to maintain these structures, formation of wrinkles, sagging and fine lines, lycopene helps to a better tanning protecting such as the elasticity and firmness of the skin . favoring the elasticity and skin hydration … skin from damages produced by solar radiation. 13 13 Collagen in sports nutrition growing in popularity BARS AND POWDERS COLLAGEN COMBINED WITH OTHER PROTEIN • Bars and powders are most commonly seen format for collagen application in sports nutrition products. Percentage of sports nutrition new product launches tracked with collagen (Global, 2012-2016) Sports Bars Sports Powders Sports Protein Based RTD 80% 70% 60% 50% 40% 30% Max Titanium Mass Titanium 17500 Sabor Chocolate: Mass Titanium 20% 17500 Dietary Supplement With Chocolate Flavor (Brazil, Jun 2016) 10% Description: … It contains exclusive formula of three types of proteins Percentage of new product launches product new of Percentage with high biological value: whey protein concentrate, hydrolyzed 0% collagen and egg albumen . 2012 2013 2014 2015 2016 14 14 Application in the Latin American market PROTEIN BARS SPORTS GEL PROTEIN BASED RTD Integralmedica Vo2 Protein Bar: Cookie Musclepharm Sport Series Combat Pro-Gel New Whey Liquid Protein Dietary Supplement With Flavor (Brazil, Jun 2016) With Chocolate Flavor Blue Raspberry Flavour (Panama, Jan 2017) Ingredients: Fructose syrup, protein concentrated (United States, Aug 2016) whey, soy protein isolate, chocolate sauce with Ingredients: Purified water, hydrolyzed collagen Ingredients: Water, complete protein matrix (NWN milk, fructooligosaccharide, safflower oil, protein protein , whey protein isolate, maltodextrin, glucose proprietary blend of collagen protein isolate, whey hydrolysates (collagen) , vitamins mix… polymers, alkalized cocoa powder, ascorbic acid, protein isolate, casein protein isolate) … niacinamide, calcium pantothenate, pyridoxine hydrochloride, riboflavin, sucralose, potassium acesulfame, lactic acid, sodium chloride, potassium 15 sorbate, and sodium benzoate. 15 Functional confectionery: good opportunity for collagen WHY DO CONSUMERS PURCHASE? GUMMIES/JELLIES IS THE KEY CATEGORY Why have you increased your consumption of Percentage of sub-category in confectionery new sugar confectionery? product launches tracked with collagen (Brazil vs Mexico, 2016) (Global, 2016) Brazil Mexico Gummies/Jellies Chocolate Bars Hard Candy Sugar Confectionery There Is More Variety and Novelty 45% Chocolate Pieces – Wrapped Available 49% 4% 18% 8% My Taste Preference Has Changed 8% 19% 8% 15% Because It Is Healthy 12% 73% 12% Due To Change In My Budget 19% 16 16 Functional confectionery with collagen: established in Japan JELLY CANDY GUMMIES Yukiguni Aguri Mango Konnyaku Jelly Lr Wonder Company Hollywood Beauty Fini Balas De Gelatina Com Colageno: (Japan, Dec 2016) Candy: Strawberry Jelly Candies With Collagen Claims: These sweets also contain plenty (Italy, Aug 2016) (Brazil, May 2016) of water-soluble fiber , making them as Description: Its secret is the unique Description: Strawberry, green apple and good for your digestion as they are combination of collagen, hyaluronic acid orange flavored jelly candies with delicious. Contains 600mg collagen. and vitamin e . Collagen is an important collagen , in an 18g plastic packet. protein that protects the skin from inside . 17 17 Novel product launches with collagen ALCOHOLIC BEVERAGES COLLAGEN WATER READY MEALS Gekkeikan Kirei Plum Sake VitaminAcqua: Agua Con Colageno, Collagen Yunotani Soft Sashimi Konjac With (Philippines, Sep 2016) Water Citrus And Collagen Description: This umeshu is made from a (Brasil, Jan 2017) (Japan, May 2016) combination of 100% japan-grown ume Description:Vitamin water beverage with Description: Soft sashimi konjac with plums, pure fushimizu water, and added pomegranate and cranberry flavor, in a 400ml seaweed and collagen . Comes with collagen to
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