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UnderstandingUnderstanding

Packaged Food TrendsPackaged Food Trends

In Asia PacificIn Asia Pacific

By Farzana Mohsin

May 2005

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Presentation OutlinePresentation Outline

Euromonitor - An introduction

Food Product Coverage

Asia Pacific - Country CoverageEmerging Food Trends

Food - A Global Overview

Packaged Food Market

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UnderstandingUnderstandingEuromonitor InternationalEuromonitor International

&&ItIts Definitionss Definitions

- An Introduction

- Packaged food sectors

- Asia Pacific countries

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EuromonitorEuromonitor -- An IntroductionAn IntroductionBusiness info provider & analyst since 1972

Regional Offices in London, Chicago, Singapore, Shanghai

Global network of researchers (70+ countries)

Independent & privately owned

Hardcopy report, directories & online systems

Client-driven consultancy projects

Client base:International FMCG manufacturers, Retailers,Packagers, Ingredient suppliers, & Banks/ Consultancies

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Country CoverageCountry Coverage -- Asia PacificAsia Pacific12 major countries + 33 minor countries:

China Hong Kong, China

India

Indonesia Japan

Malaysia

Philippines Singapore

South Korea

Taiwan Thailand

Vietnam

NB. Euromonitor has covered Australia & New Zealand separately under Australasia. For list of minor countries, please approach us after conference.

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Emerging TrendsEmerging Trendsin Packaged Foodin Packaged Food

in Asia Pacificin Asia Pacific

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1) Convenience1) Convenience

Packaging plays a huge rolePackaging plays a huge role Increasing hectic lifestyles

Consumers seeking convenience in all forms(e.g. Shopping habits, Clothing, F&B etc)

Increasing number of individual portionspackaged to be consumed on the move oroutside the home

Increasing need for packaging that are easyto open and can be re-sealed

Easy to prepareEasy to prepare Rise in easy to prepare food products

Instant soup, greater variety in cup noodles

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Emphasis on ingredients &Emphasis on ingredients & traceabilitytraceability Result of food scandals & health crisis

Organic, all natural, additive free

Food safety is a priority

2) Health2) HealthEmphasis on Functional/Emphasis on Functional/ FortifiedFoodFortifiedFood Rising consumer health consciousness

Gum fortified with vitamin supplements such as multi vitamins (8types), royal jelly, blue berry extract, amino-acid

Instant noodles/soup fortified with collagen

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3) Taste3) TasteProducts with poor taste will not sellProducts with poor taste will not sell Manufacturers receive support from ingredient suppliers

New flavors developed to make end-product > attractive

Exotic flavors successful as people travel more & want to trynew cuisine at home

Adult-oriented flavors play a greater role

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Packaged Food TrendsPackaged Food TrendsIn Asia PacificIn Asia Pacific

- Biggest Sectors

- Strongest Growth- Key Growth Drivers

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G l o b a l P a c k a g e

d F o o

d s R e t a

i l S a l e s

2 0 0 4

Total sales 2004US$ million

0.00

200,000.00

400,000.00

600,000.00

800,000.00

1,000,000.00

1,200,000.00

1,400,000.00

1,600,000.00

W o r l d

W e s t e r n

E u r o p e

E a s t e r n E

u r o p e

N o r t h A m

e r i c a

L a t i n A m

e r i c a

A s i a P a c

i f i c A u s

t r a l a s i a

A f r i c a a n

d M i d d l e

E a s t

0

200

400

600

800

1000

1200

Per capita spend2004 US$

Leading global players:

1: Nestl SA 2: Unilever Group 3: Kraft Foods Inc

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010

20

30

40

50

60

70

80

90

100

Unpackaged

Packaged

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A s i a P a c k a g e d v s

U n p a c

k a g e d

F o o

d s

S a

l e s%value sales

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-50

0

50

100

150

200

250

300

350

400

0 2 4 6 8 10 12 14 16

E U R O M O N I T O R I N T E R N A T I O N A Lleaders in global consumer market intelligence

Indonesia

China

South Korea

Taiwan

VietnamIndia

Singapore

ThailandPhilippines

Hong Kong

Malaysia

A s i a P a c k a g e d

F o o

d s

S a l e s

2 0 0 4

% value CAGR

Japan:

Total sales US$170,000 mil (2004)Per caps expend. US$1,370

Market value growth 3.3%

Total sales(US$ mn) - Retail

P e r c a p

i t a s a

l e s

2 0 0 4 ( U S

$ )

Source :Euromonitor International - Packaged Foods Database 2004

Developing countries (Strong growth)

DD factors: consumer sophistication, healthconsciousness, working mothers

SS factors:Introduction of new food products, growthof modern retail outlets

> Developed countriesSlower growth but willingness to pay forvalue-added, premiumproducts

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Chilled food16%

Bakery products13%

Dried food13%

Dairy products12%Sauces, dressings and

condiments

8%

Confectionery5%

Canned food

5%

Ready meals4%

Frozen food3%

Others21%

P a c k a g e d

F o o d s

i n A s i a

b y

T y p e

2 0 0 4

Strong CAGR in1998-2004 (value) :

Vietnam +16%Indonesia +15%China +15%Philippines +12%

Breakfast cereals -

Small but dynamic niche,posting high growth rates

Mainly processed meats & fish,concentrated in > developed countries

Biggest sectors - Global1) Bakery2) Dairy Products3) Chilled Food4) Confectioneryaccounting for 60% global sales

Asia Pacific:US$297 billion

Strong CAGR in1998-2004 (value) :Indonesia +17%Vietnam +12%

India +9%Philippines +9%

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Distribution TrendsDistribution Trendsin Packaged Foodin Packaged Food

in Asia Pacificin Asia Pacific

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Contact DetailsContact Details

FarzanaFarzana MohsinMohsin

Research Manager, Asia PacificResearch Manager, Asia Pacific

3 Lim3 Lim TeckTeck Kim RoadKim Road#08#08 --02 Singapore Technologies Building02 Singapore Technologies Building

Singapore 088934Singapore 088934+65 6429 0590+65 6429 0590

farzana.mohsin@euromonitor.com.sgfarzana.mohsin@euromonitor.com.sg