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Mintel-Fff-The-Dairy-Free-Boom.Pdf The Dairy-Free Boom Free From Food Expo, Barcelona, June 2017 © 2017 Mintel©All GroupLtd.RightsReserved. ConfidentialMintel.to Today’s presentation Growth of Boom in plant-based innovation and expansion of dairy-free vegan positioning What was niche is now mainstream The drivers Flexitarianism, not veganism Engaging Taste, health, ethics and the environment as platforms consumers Where next? Potential future directions 2 Plant-based products now account for 11% of all ‘dairy’ NPD Total European NPD in milk, yogurt and desserts, by dairy- or plant-based 6% 7% 8% 11% 11% 94% 93% 92% 89% 89% 2013 2014 2015 2016 2017 to date Total Dairy-based Total Plant-based 3 Source: Mintel GNPD Germany shows a strong lead in plant-based innovation Plant-based yogurt, milk and desserts NPD in Europe, by country 38% 41% 38% 40% 41% 10% 9% 9% 8% 9% 12% 15% 9% 12% 9% 9% 9% 15% 13% 14% 15% 18% 9% 10% 13% 18% 18% 18% 10% 13% 2013 2014 2015 2016 2017 to date Germany Spain France UK Italy All Others 4 Source: Mintel GNPD Launches up in all segments, but greater focus now on yogurts Plant-based yogurt, milk and desserts NPD in Europe, by segment 8% 8% 10% 10% 10% 19% 14% 22% 22% 23% 77% 72% 68% 68% 68% 2013 2014 2015 2016 2017 to date Plant Based Drinks Plant Based Spoonable Yogurts Plant Based Ice Cream & Frozen Yogurt 5 Source: Mintel GNPD The big picture: “Eat food. Not too much. Mostly plants.” Michael Pollan, In Defence of Food: An Eater's Manifesto 6 NPD booms in vegan foods, grows in low/no lactose European food & drink new product introductions labelled vegan or no/low lactose, as % total NPD 8.0% 7.0% 6.0% 5.0% 4.0% Vegan Low/No/Reduced Lactose 3.0% 2.0% 1.0% 0.0% 2013 2014 2015 2016 2017 to date 7 Source: Mintel GNPD Close to 1 in 5 new products in Germany is ‘vegan’ European food & drink new product introductions labelled vegan, as % total NPD 20% 18% 16% 14% 12% Germany 10% UK 8% Europe 6% Global 4% 2% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 to date 8 Source: Mintel GNPD Multiple factors explain the growth of plant-based diets The variety of available proteins (nuts, seeds, Consumers limit their soy, legumes, whole consumption of meat grains) provides Diversity in and dairy due to health Health & protein accessible alternatives to concerns Wellness sourcing meat and dairy Due to numerous Recent Ethic & Animal welfare and scandals some food safety Environment consumers are scandals environmental concerned about the awareness encourages safety of meat and consumers to look for poultry products plant-based alternatives A shift from niche vegetarians & vegans to mass market flexitarians 9 Veganism is strong among young adults… ‘I am a vegan’, Q1-2017 12 12 11 10 10 9 9 8 8 8 7 6 6 5 5 All % 16-24 25-34 All % 16-24 25-34 All % 16-24 25-34 All % 16-24 25-34 All % 16-24 25-34 % % % % % % % % % % France Germany Italy Spain Poland 10 Source: Mintel Consumer Data 2017 But many more avoid or reduce dairy consumption ‘I am actively reducing my consumption of, or avoiding, dairy’, Q1-2017 35 31 30 30 27 25 24 24 22 22 21 21 19 19 16 All % 16-24 25-34 All % 16-24 25-34 All % 16-24 25-34 All % 16-24 25-34 All % 16-24 25-34 % % % % % % % % % % France Germany Italy Spain Poland 11 Source: Mintel Consumer Data 2017 Non-dairy yogurts are widely seen as healthy & tasty 42 41 38 38 39 36 34 31 31 31 30 29 30 29 29 27 26 24 22 17 All % 16-24 % All % 16-24 % All % 16-24 % All % 16-24 % All % 16-24 % France Germany Italy Spain Poland Non-dairy yogurts are healthier than dairy yogurts Non-dairy yogurts are as tasty as dairy yogurts 12 Source: Mintel Consumer Data 2016 Plant-based milks score well on health, less so on taste 38 34 32 32 28 28 23 24 24 24 20 19 18 18 18 19 16 15 12 13 All % 16-24 % All % 16-24 % All % 16-24 % All % 16-24 % All % 16-24 % France Germany Italy Spain Poland Plant-based milk is healthier for you than dairy milk I prefer the taste of plant-based milk to dairy milk 13 Source: Mintel Consumer Data 2017 Lactose-free dairy is being overtaken by plant-based ‘Have personally used…’, Q1-2017 25 24 20 19 18 19 19 17 16 16 13 12 11 11 10 10 7 7 Lactose-free cow's milk Soy milk Other plant-based milk France - All % Germany - All % Italy - All % Poland - All % Spain - All % UK - All % 14 Source: Mintel Consumer Data 2017 It’s all about flexitarianism… ‘I would be interested in trying dairy milk that is blended with plant-based milk’, Q1-2017 55 45 43 40 38 37 34 29 30 27 All % 16-24 % All % 16-24 % All % 16-24 % All % 16-24 % All % 16-24 % France Germany Italy Spain Poland 15 Source: Mintel Consumer Data 2017 Brands market around three key platforms Health Taste Ethics Ripple Original Plant Based Milk, Lima Organic Mocha Flavoured Kite Hill Artisan Almond Milk USA, made from yellow peas high Rice Drink, Germany, made Yogurt, USA, said to be better in protein, rich in vitamins and with a delicious combination of for the environment minerals roasted cereals & chicory Fresh Market Unsweetened Alpro Go On Plain Soy Yogurt, Vanilla Almond Drink, USA, a Europe, features a lovely fresh Provamel Organic Rice- naturally nutritional alternative taste Coconut Milk, France, CO2 rich in antioxidants and calcium neutral production process 16 Alpro (soy-based) yogurts lead top-selling new products Alpro Natur with Coconut / Alpro Go On Almonds Said to have a silky texture and a refreshing Targets high protein snacking and indulgence, coconut flavour. with a thick and smooth texture, ‘lovely fresh Launched May 2015, two varieties sold taste’, added calcium and vitamins €6.6m in first year; also a hit in other Three SKUs in Germany sold nearly €6m in European markets first year 17 Source: Mintel GNPD IRIS Boom in coconut milk yogurts, mostly from specialist players Whollees (Germany), The Coconut Collaborative Lucy Wagner Foods’ Pudology Harvest Moon Coconut Milk Coconut Milk Dessert. made Yogs Coconut Yogurt, Yogurt, also sold in Austria, with the milk from one “beautifully indulgent and Netherlands, Switzerland, whole coconut, selling well in delicious” (UK) Portugal Germany and France, also now in Netherlands and Austria as well as the UK 18 Indeed, it’s less and less about soy… • Although numbers of new products are up, use of soy is in decline • Almond, oats, coconut are the ingredients showing most growth Plant-based yogurt, milk and desserts 50% NPD in Europe, by ingredient 34% 17% 18% 15% 12% 13% 9% 4% 5% 2% 2% 1% 0% 0% 2% Soy Rice Almond Oats Coconut Hazelnut Cashew Nut Quinoa 2013 2014 2015 2016 2017 to date 19 Source: Mintel GNPD Dairies go vegan… Molkerei Söbbeke, Germany Emmi, Germany Organic, vegan, rice desserts, based on rice, Soja Vit Organic Bircher Muesli, vegan fermented coconut milk, lupine flour and other vegan soybean base with 35% fruit and cereals ingredients 20 Non-dairy ice cream next to boom? Ben & Jerry’s a tipping point? • USA, Ben & Jerry's Non-Dairy Frozen Dessert made with almond milk. • Non-GMO ingredients, made with Fairtrade sugar, cocoa and vanilla, suitable for vegans. • Launched in February 2016, sales of c. $35m in first year, across 4 varieties 21 Source: Mintel GNPD IRIS Conclusions & points for the future Don’t be just a Long-term success means moving on from the substitute image and accentuating the tastiness, texture and intrinsic substitute benefits of plant-based ingredients Appeal to Appeal to consumers who also eat meat or dairy – future growth is among “flexitarians”, rather than consumers who flexitarians opt for 100% vegetarian or vegan diets. In the mainstream, taste and price are always the key factors Taste/quality that determine purchase. Innovation & the Smaller, specialist players provide real differentiation and entrepreneurial ‘romance’ the (Millennial) consumer spirit But look out for the major players… 22 A Mintel 2017 Food & Drink Trend The preference for natural, simple and flexible diets will drive further expansion of vegetarian, vegan and other plant-focused formulations 23 For more information: David Jago Director, Innovation & Insight +44 20 3416 4266 [email protected] mintel.com © 2016 Mintel©All GroupLtd.RightsReserved. ConfidentialMintel.to .
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