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Global Beverage Trends & the Supply Chain Challenges

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Global Beverage Trends & the Supply Chain Challenges Shashank Vengsarkar 28.09.2016 1 Agenda Global Beverage Trends & Innovation Raw Materials – Demand & Supply Challenges Döhler’ sIntegratedSd So lutions 2 Agenda Global Beverage Trends & Innovation Raw Materials – Demand & Supply Challenges Döhler’ sIntegratedSd So lutions 3 Consumer Trends and Drivers in the Food & Beverage Industry : Successful Innovations are based on Needs NATURALNESS & SUSTAINABILITY HEALTH & CONVENIENCE NUTRITION DIGITALISATION INDIVIDUALISATION MULTI-SENSORY & EXPERIENCE 4PERSONALISATION Naturalness & Sustainability Market Development and Sub-Trends New Product Introductions with Naturalness / Sustainability Claims +18%* 152,259 65,885 2010 2011 2012 2013 2014 2015 *CAGR 2010-2015 5 Source: Döhler Market Intelligence Naturalness & Sustainability Artificial – Public Enemy Number One 6 Source: Döhler Market Intelligence Naturalness & Sustainability Clean & Clear Label Products - It is all about transparency Consumer Industry Product Solutions Consumers have Manufacturers, PidProvide transparency growing preferences retailers and food- to underline your for products with service chains are positioning and familiar and natural choosing to be moving from claim to ingredients as well transparent about information as simple ingredient their sourcing and lists production processes 7 Source: Döhler Market Intelligence Naturalness & Sustainability Natural Ingredients are on the Rise Natural Natural Herbal Flavours Colours Extracts +33%* +20%* +20%* Fruit Ingredients +21%* Vegetable Natural HI Vegetable Malt Ingredients Sweeteners Protein Ingredients +19%* +41%* +23%* Cereal+18%* Ingredients *Average Annual Growth Rate 2010-2015 (CAGR) for selected 8 Ingredients within Global Food & Beverage New Introductions Source: Döhler Market Intelligence Naturalness & Sustainability Organic is further growing around the globe Organic Products are perceived as healthier Image of being "cleaner“ than their non-organic counterparts Consumers are more motivated by their own personal health, rather than any environmental concerns Global Organic Food & Beverage New Introductions Top 5 Categories in 2015 19,800 16,302 • Tea 14,479 • Vegetables Natural 10,533 9,043 9,135 • Juice Unprocessed • Seasonings • Sweet Not artificial Biscuits/Cookies 2010 2011 2012 2013 2014 2015 Not genetically mod if ied *CAGR 2010-2015 9 Source: Döhler Market Intelligence Naturalness & Sustainability Sustainable Certified Products become established in the markets Consumers demand to know where their products come from and how they are sourced is increasing 72% of consumers expect businesses to take care of the planet and society as a whole Willingness to pay for ethically produced goods compared to regular ones is on average 30 percent more Global Food & Beverage New Introductions Top 5 Categories in 2015 8,891 7,331 • Coffee 5,638 • Tea • Chocolate 3,355 Tablets 1,947 1,153 • Fish Products • Juice 2010 2011 2012 2013 2014 2015 *CAGR 2010-2015 10 Source: Döhler Market Intelligence Naturalness & Sustainability Gentle Product Processing to create more natural & healthy products Raising Processing Technologies: High Pressure Pasteurisation (HPP) Cold Brew Cold Pressed Cold Pressed Juices Cold Brew Coffee Cold Soup Preceptions: . No Heat Treatment . Less Processed . Better Nutritional Value . Fresh & Authentic 11 Taste Source: Döhler Market Intelligence Naturalness & Sustainability Summary & Key Findings „ Where can we support you to make your portfolio more natural? “ No consistent Consumer Understanding of Natural Natural Ingredients are on the Rise and Artificial one have the image to be the Public Enemy Number One Clean & Clear Label Products - It is all about transppyarency Organic & Sustainable Certified Products become established in the markets across various categories Gentle Product Processing to create more natural & sustainable &12 healthy products Source: Döhler Market Intelligence Health & Nutrition Market Development and Sub-Trends New Product Introductions with Health & Nutrition Claims +16%* 197,773 96,145 2010 2011 2012 2013 2014 2015 *CAGR 2010-2015 13 Source: Döhler Market Intelligence Health & Nutrition Top 5 Toppppics for an additional Consumption in the respective countries WHICH OF THE FOLLOWING PRODUCTS WOULD YOU LIKE TO CONSUME MORE OFTEN IN THE COMING YEAR? 1. No/Low/Reduced Sugar 1. OiOrganic 2. No/Low/Reduced Fat 1. Organic 2. Fairtrade 1. High in Protein 3. Fairtrade 2. Vitamin/Mineral 3. No/Low/Reduced 2. Vitamin/Mineral 4. High in Protein Fortified Sugar Fortified 5. Clean Label 3. Clean Label 4. Clean Lab el 3. No/Low/Reduced 4. GMO-Free Sugar 5. GMO-Free 5. No/Low/Reduced 4. Clean Label 1. Organic Sugar 5. Organic 2. Clean Label 1. OiOrganic 1. Vitamin/Mineral 3. No/Low/Reduced Fat Fortified 2. Vitamin/Mineral 4. No/Low/Reduced Fortified 2. No/Low/Reduced Fat Sugar 3. Clean Label 3. Organic 5. Vitamin/Mineral 4. High in Protein 4. Clean Label Fortified 5. No/Low/Reduced Fat 5. No/Low/Reduced Sugar 14 Source:Source: Döhler Döhler Sensory Sensory & & Consumer Consumer Scie Science;nce; n= n= 3500 3500 (Brasil, (Brasil, USA, USA, Germany, Germany, UK, UK, Spain, Spain, China China & & Russia); Russia); January January 2016 2016 Health & Nutrition New consumer health attitude drives Free From innovations Better Nutritional Value but same Taste NPIs with FREE FROM and NO/LOW Claims: 102.267 in 2015 Change Rate 2014/2015: +15% . No Animal Ingredients . No Allergen . No Lactose „ Consumers want . Low/No/Reduced Carb Healthy Foods - and will“ . Low/No/Reduced Salt . Low/No/Reduced Sugar pay more for them . GMO Free The Nielsen Company . Alcohol Free . Caffeine Free 15 Source: Döhler Market Intelligence Health & Nutrition Manufacturers depend on healthier variety with less sugar, salt or fat No/Low/ Reduced Sugar Potential Replacements . Sugar Reduction Flavours . Stevia . Honey 11.951 NPIs (CAGR 2010-’15: +10%) No/Low/ Reduced Salt Potential Replacements . Salt Enhancer / Flavours . Potassium Chloride . Seaweed 4.371 NPIs (CAGR 2010-’15: +10%) No/Low/ Reduced Fat Potential Replacements . Fibers . Cellulose . Whey protein concentrate 10.931 NPIs (CAGR 2010-’15: +6%) 16 Source: Döhler Market Intelligence Health & Nutrition Functionalityyjpg is a major purchasing reason for y ygounger customers 3.980 NPIs 2015 3.328 NPIs 2015 (CAGR 2010-‘15: +7%) (CAGR 2010-‘15: +8%) . Prevent diseases . Effectively boost health . Imppyrove body balance . Aid in body metabolism . Support special diets . Required by human body VITAMINS MINERALS PROTEINS FIBERS . New Protein Sources for . Lower health risks Vegetarians . Ability to prevent . High-protein diet constipation . Fat-reducing effect . Maintain healthy weight 2.344 NPIs 2015 5.372 NPIs in 2015 (CAGR 2010-‘15: +15%) (CAGR 2010-‘15: +28%) Global functional food market will exceed 305 Bn. $ by 2020 17 Source: Döhler Market Intelligence Health & Nutrition Vegetables are gggaining ground worldwide with new categories Health –a growing Trend Veggie – Less Calories –Taste– Taste ItiInnovations – NtNatural ness – Vegan – Better for you –Sustainable –…– … 18 Source: Döhler Market Intelligence Health & Nutrition Consumers’ search for a Real Healthy Snack still continues 60% OF ALL CONSUMERS WANT TO TREAT THEIR BODY WITH BENEFICIAL NUTRITIENTS WHILE SNACKING Millennials shake up snacking . Young people interested in new flavour combinations . Pepper is not enough, look for special flavours (chipotle) . All natural and raw is a big trend FIBER PROBIOTICS BETTER-FOR-YOU SUGARY GMO FREE ORGANIC CALORIES IRON PAST VEGAN NUTRIENT-DENSE FUTURE HEALTHY FATTY CALCIUM SUPERMEAL OMEGA GLUTEN FREE 19 Source: Döhler Sensory & Consumer Science (Multi Online Survey 2015) / Döhler Market Intelligence Health & Nutrition Consumer are lookinggp for “better nutritional value” product solutions personalisation better-for-you fact based nutrition longevity unique health benefits products standardised on active ingredients great taste profile 20 Source: Döhler Market Intelligence Health & Nutrition Summaryyy & Key Findings „ „ Which health aspect is most important for your market? “ New Generation requires more from food than just satisfy needs Better Nutritional Value but same Taste (e.g. less sugar) Free From Claims varity grew due to changgging consumer habits Diets drive growth in non-dairy & vegan ingredients Functional Ingredients like Fibers and Proteins are on the rise 21 Source: Döhler Market Intelligence Individualisation & Personalisation Market Development and Sub-Trends New Product Introductions with Individualisation / Personalisation Claim +11%* 80,613 47,727 2010 2011 2012 2013 2014 2015 *CAGR 2010-2015 22 Source: Döhler Market Intelligence Individualisation & Personalisation Different Consumer Groups with Individual Needs GENERATION X GENERATION Z BEST AGERS MILLENNIALS Best Agers Generation Z | >50 years old | Teens & young adults born between Millennials 1995 and 2010 | Digital Natives In the middle of their lives & young | Born between 1980 and 2000 | Multitasking generation at heart | First digital generation Active and open for new things | Largest & most influential generation Online Shopping Service and quality oriented “Cool/Hip” Brands & Products Open to new taste experiences Trust liker Take constant Innovation as a given Bargain Hunters Strong Purchasing ´ Power Homecooking & Homemade Trendy Diets Snacking & On-The-Go “Source of Origin” Awareness Source: Döhler Market Intelligence 23 Individualisation & Personalisation Maaadle
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