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Delivering on the Clean Label Expectation 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 MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016 3 Digestion - the 3rd largest health trend within the £476 bn HW industry Global Retail Sales (£ billion) 2016 General Wellbeing £248 bn Bone and Joint Health £10 bn Weight Management £67 bn Cardiovascular Health £5 bn Digestive Health £44 bn Vision Health £4 bn Energy Boosting £24 bn Brain Health and Memory £3 bn Free From £21 bn Immune Support £2.5 bn Oral/Respiratory Health £13 bn Urinary Tract Health £0.5 bn Endurance £13 bn Beauty from Within £0.1 bn © Euromonitor International MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016 4 Digestive health food and drinks equally important across key regions © Euromonitor International MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016 5 Probiotics and fibre key in digestion-positioned packaged food Global digestive health by categories 2011-2021 60 Others FF Bottled Water 50 Milk Juice 40 High Fibre Noodles FF Bread 30 High Fibre Pasta FF Milk Formula 20 High Fibre Sweet Biscuits NH Rice 10 Sour Milk Drinks High Fibre Breakfast Cereals £ billion, fixed 2016 exchange rates exchange 2016 fixed billion,£ Probiotic Yoghurt 0 High Fibre Bread 2011 2016 2021 © Euromonitor International MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016 6 Digestive health fragmented, an opportunity to establish or re-establish brand’s health credentials Digestive health by leading brands, World 2015 0 10 20 30 40 £ billion 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 Co Joie (Yakult Honsha Co) Stonyfield Farm (Danone, Groupe) © Euromonitor International MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016 7 Be aligned with yourself, in sync, find your balance © Euromonitor International MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016 8 Western Europe - the setback of probiotic claims in food to bring market opportunities for supplements Western Europe – Retail Sales of Probiotics by Type 2002-2021 4 3 Consumption gap between probiotic 2 yoghurt and supplements narrowing £ billion£ Probiotic supplements to outpace sour milk drinks 1 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Probiotic Supplements Probiotic Yoghurt Sour Milk Products © Euromonitor International 4 billion US$ retail value of probiotics supplements in the world 2015 11% Retail value up from 2014 9% Retail value growth expected in 2016 38% Expected growth from 2016 to 2021 MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016 10 Probiotic supplements to outpace all others throughout year 2021 © Euromonitor International MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016 11 £10.5 billion worth of digestive remedies sales highlights the need for improved preventative approach Digestive Remedies by Regions 2016 3,500 3,000 IBS Treatments 2,500 Motion Sickness Remedies 2,000 Paediatric Digestive 1,500 Remedies £ million£ Diarrhoeal Remedies 1,000 Laxatives 500 Indigestion and Heartburn 0 Remedies North Asia Western Latin Eastern America Pacific Europe America Europe © Euromonitor International 10 20 30 40 50 60 70 80 90 0 Diseases of digestive system cause 49 deaths per 100 k people UK k people inthe per 100 digestive 49deaths Diseases of cause system THE SHAPING INGREDIENTS HEALTHFOR GUT TRENDS AND INSIGHT MARKET © Euromonitor Egypt Romania Hungary Russia Internation Ukraine Slovakia Bulgaria (per 100,000 inhabitants) System Diseases Death by of the Digestive Germany al Mexico United Kingdom Finland Poland Czech Republic Portugal Spain Chile Belgium Japan Denmark Italy France Austria Argentina 2016 LIVEFOOD MATTERS MARKET, HEALTH DIGESTIVE Brazil 2015 Netherlands Switzerland USA Canada Sweden Greece Thailand Norway South Korea South Africa Ireland Philippines Hong Kong, China Australia Colombia Indonesia Taiwan New Zealand Venezuela Morocco Israel India China Vietnam Malaysia Turkey Singapore Saudi Arabia 12 GLOBAL DIGESTIVE HEALTH FOCUS: UK FUTURE OF DIGESTIVE HEALTH MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016 14 Weetabix the largest digestive health brand in the UK 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) 10g of fibre per 100g Shreddies (Cereal Partners Worldwide SA) Kellogg's All Bran (Kellogg Co) Alpen (Bright Food (Group) Co Ltd) Dorset Cereals (Associated British Foods Plc) © Euromonitor International Others MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016 15 Not just fibre&wholegrain, but also locally produced and in a responsible way with less fertilizer © Euromonitor International MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016 16 Post Brexit digestive health? EU key but China the land of opportunity Digestive health 2016 Digestive health 2021 9000 8000 7000 6000 5000 4000 £ million£ 3000 2000 1000 0 India China US EU UK India China US EU UK © Euromonitor International EU data excludes UK GLOBAL DIGESTIVE HEALTH FOCUS: UK FUTURE OF DIGESTIVE HEALTH MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016 18 Food and mental disorders on the rise, as well as allergies, skin conditions, arthritis, autism, gut – the second brain © Euromonitor International MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016 19 Food and mood, gut and brain axis © Euromonitor International MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016 20 At £21 billion globally, the free from movement grows from strength to strength; improving digestion at its heart Free from 2016 Free from 2021 9000 8000 7000 6000 5000 4000 £ million£ 3000 2000 1000 0 India China US EU UK India China US EU UK © Euromonitor International EU data excludes UK MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016 21 Consumers look beyond traditional digestive approach Local Sourcing Artificial Ingredient Steroids s Pesticides MSG Safety rBST Southampton Artificials Study Artificial Artificial Enzymes GMOs Aspartame HFCS © Euromonitor International MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016 22 Clean label a new entrant in digestive health? Euromonitor Clean Label Types All Natural No Artificial Additives No Artificial Colours No Artificial Preservatives No Artificial Flavours No Artificial Sweeteners GMO Free © Euromonitor International MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016 23 UK the second largest in the global £107 billion clean label movement Top 10 clean label markets 2015 2015-2020 % Growth 45 30 40 25 35 £ billion£ 30 20 25 15 20 15 10 10 5 5 0 0 © Euromonitor International MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016 24 Which claim is most important from the consumer perspective? No artificial colours, flavours No artificial colours Made with real fruit, no artificial colours, No added sugar, Zero added preservatives and preservatives or flavours preservatives or sweeteners no additives Nothing artificial, No artificial preservatives, no added Water, lime cucumber, BC No artificial colours 100% pure & raw no added refined sugar MSG, free from artificial colours …and that’s it or preservatives Cold pressed (never heat) 100% natural ingredients – yes! Say no to… Added sugar Added sweeteners Added preservatives Added water No artificial colours, flavours or preservatives Add taste, nothing else No added MSG 100% natural © Euromonitor International Vegetarian, vegan and coeliac friendly ingredients, skin & collagen Gluten and lactose free MARKET INSIGHT AND TRENDS FOR GUT HEALTH INGREDIENTS SHAPING THE DIGESTIVE HEALTH MARKET, FOOD MATTERS LIVE 2016 25 UK’s £13.3 billion clean label driven by concerns around artificial colours Clean label by leading categories, UK 2015 0 5,000 10,000 15,000 20,000 25,000 30,000 £ million No Artificial Colours No Artificial Flavours No Artificial Preservatives All Natural No Monosodium
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