adding value in_food_industry_oct13
DESCRIPTION
A short review of Foodserice market size and trends in Brazil.TRANSCRIPT
Update by CONEXIDADE
October 2013
ADDING VALUE IN FOOD INDUSTRY
THANK YOU ALL!
This is a part of the information I reviewed with clients recently based on seminars, trade show, direct talk with industry and internet.
The information is free to use and if you want to discuss further or get more data on specific matters contact me in addresses below.
Have a successful year end!.
Hamilton Caio Gouvea
CONEXIDADE
+5511972671139
WORLDWIDE AND BRAZILIANFOOD MARKET
7 Billion People Expend USD 7 Trillion in FOOD
< 4 >
EducationEducation
HealthHealth
WorkWork
LeisureLeisure
CommercialCommercial
HotelsHotels
TravelTravel
PurchasePurchase$ 4.200 $ 2.800
RETAIL (60%) FOOD SERVICE (40%)Conv. Store [$70]Gas Station [$50]
Other [$50]
Catering[$40]
Hotéls, Resorts, SPA’s[$200]
Sports e Leisure, Parks[$40]
Hospitals e Clinics[$100]
Offices, Industries[$300]
Schools , Universities[$160]
Restaurants [$700] Fast Food [$500]
Coffee & Bakery [$300]
Street [$250] Vending [$50]
64%[$1.800]
20%[$560]
10%[$280]
6%[$170]
Consumers
Supply Chain Overview
Industry, Distributor, User and Consumerbut either
Technology Supplier, Volume Supplier and Brand Owners
< 5 >
Functional Ingredients & Flavors
Commodities
Retail Brands
Store Brands
Restaurant Brands
< 6 >
FOOD SERVICEleads Brazilian market growth in the last 17 years
0
50
100
150
Brazilian food market size atmanufacturer value (R$ billions)
95
46
12
58
96
51
13
64
97
56
14
70
98
59
18
77
99
61
22
83
00
63
24
87
01
66
22
89
02
75
26
101
03
87
30
116
04
96
34
130
0.8%
CAGR(95-04)
8.4%
12.6%
CAGR(95-04)
4.7%
Retail
FoodService
Nominal Real
FOOD SERVICE grows at 14% per year and RETAIL at 10% in last 17 years
MENOS BRASILEIROS COMENDO FORA DE CASA...
Penetração
Gasto Médio R$
Classe AB R$ 3.049Classe C R$ 1.665Classe DE R$ 1.238
2011
87%
1.657
ALIMENTAÇÃO E BEBIDA FORA DO LARALIMENTAÇÃO E BEBIDA DENTRO DO LAR
Penetração
Gasto Médio R$
Classe AB R$ 7.721Classe C R$ 5.884Classe DE R$ 5.166
2011
100%
5.590
2012
100%
6.075
2012
82%1.891+9% +14%
127 (índice de gasto)
97
85
161 (índice de gasto)
88
65
Fonte: HolisticView 2013 Kantar Worldpanel
Out Of Home / In Home: from 25% (class DE) to 40% (class AB) and OOH growing faster
Brazilian FOOD SERVICE Market
R$ 100 Billion Sizebut Client Users With Different Needs and Expectations
< 8 >
0
20
40
60
80
100%
Restaurants
F&V
Bakery
Staples
Meat,poultry&seafood
Oils& Fats
CulinaryFrozen
27
Bakeries
Bakery
Staples
Oils& Fats
Dairy
Desserts
17
Bars
F&V
Bakery
Staples
Meat,poultry&seafood
Oils& Fats
Dairy
Culinary
Frozen
14
SnackBars
F&V
Staples
Meat,poultry&seafood
Desserts
Culinary
Frozen
13 5
Catering
F&V
Bakery
Staples
Meat,poultry&seafood
Culinary
23
FastFood
F&V
Oils& Fats
Staples
Meat,poultry&seafood
Dairy
Culinary
Frozen
14
Hotels CVS
Others
BRAZILIAN AGRIBUSINESS OPPORTUNITIES
< 10 >
ROBERTO RODRIGUES (AGRÔNOMO, AGRICULTOR, MINISTRO DA AGRICULTURA)
FROM THE BOOK “AFTER THE STORM” - THE CHALLENGE IN THE FIELD
• Technology which generates competitiveness in the field need resources .
• It is necessary to analyze global trends in consumption of agricultural products . Who are the major producers and what will be its cost and productivity? ( Cost of land , mechanization and labor)
• The demand for better quality products , best price , taste , appearance , but also information on product origin , production methods , environmental impact on human and animal health .
• In 2010 the urban population exceeded the rural and 2030 there will be 8 Billion people, growing by 10 % every 10 years , with only 40 % living in the countryside .
• Growing life expectancy . In 2000 were 600 million people over 60 and in 2030 will be 1.4 billion.
• Brazil is the largest exporter of eight commodities ( Sugar , Coffee , Orange Juice , Soybeans , Beef , Poultry , and Tobacco Ethanol ) .
• Agribusiness is the largest sector of the Brazilian economy , representing 30 % of GDP , generates 37 % of jobs accounts for 40 % of exports .
< 11 >
• Top 10 Most Expensive Coffee in the World (Porto Rico, Rwanda, Hawai, El Salvador, Jamaica, Minas Gerais, Guatemala, Panama, Ilha St. Helena, Indonesia)
• Large companies: Kraft, Sara Lee, Procter & Gamble, Nestlé, Starbucks, Green Mountain Coffee Roasters, Reckitt Benckiser
• Café de Colombia, Espresso Italiano, Illy, Lavazza, capsule's, machines
• We will produce 56 Million bags 2012/13, which means 38% of the world ... (2nd 22Msc Vietnam / Indonesia 10Msc 3rd / 4th 8Msc Colombia)
• We export 60% and 21 MSc consume domestically, representing 15% of the world market.
• The average price of traditional coffee in 2011/12 was £ 403/sc for average production cost of U.S. $ 258/sc...margem R $ 2.4 / kg (156%)
• Export of roast and ground coffee is 1% of total
ARE BRAZILIANS LEADERS IN COFFEE?
WE PRODUCE VOLUME BUT NOT VALUED GOODS
Trung Nguyên CoffeeLegendee – VietnamSmall business in 1996 but now a gift for country all visiting tourists
< 12 >
• South America (100% Arabica) narrowed flavor range. Taste tests indicate that 70% of consumers respond better to mixed-species blends and thus Vietnamese blended coffee has a wider appeal than single-source, 100% Arabica.
• Roasting preferences establish decades ago favored a lower-temperature, longer roasting process. Burning coffee results in the breakdown of sugars and oils and fast oxidation and fermenting of coffee once exposed to the air. These drawbacks do not occur in the Southeast Asian dark roast, which is more stable.
< 13 >
FLAVOR DEVELOPMENT OPPORTUNITY
[GOOD] FOOD TRENDS
URBAN,
HEALTHY,
NATURE,
SUSTAINABLE,
TASTEFUL,
PREMIUM AND
MEANINGFUL FOR ME.
Urban population matched Rural before 2010
< 15 >
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
5,0
1950 1960 1970 1980 1990 2000 2010 2020 2030
Bil
hõ
es d
e p
esso
as
Rural
Urbana
For the moment we just need 1,5 our planet surfacePlantation Area vs. Population
< 16 > Fonte: FAO (2007). Elaboração: ICONE.
< 17 >
MANY URBAN TRENDS DETECTED (BY ENIVRANCE AND OTHER OBSERVERS)
ON THE STREETS IN 2005 ARE (STILL) BOOMING TODAY
“AMAZON”THE MOST POWERFUL
GIVEN BRANDby CONEXIDADE
Organic& Nature
< 21 >
Quality& Safety
SocialResponsibility
Premium Especial for ME Health
< 22 >
INDUSTRY TREND-SPOTTING IN AN EVER-CHANGING FOOD MARKET
Barry Callebaut6 Consumer Trends
Inova Market Insight10 Key Trends
Puratos Taste Tomorrow
10 Mega Trends
1. My Daily Luxury - "One minute of
pure delight - That's my daily luxury“
2. Smart & Convenient - "Smart ideas
make my life easier"
3. Virtuous simplicity - "Close to nature
is close to me“
4. My Food - "I take my food very
personal“
5. Human and local - "I love originals“
6. Respect and responsibility - "The
future is my responsibility, too"
1. Pure is the new natural
2. Green is given
3. Location, location, location
4. Premium stands out
5. Seniors get some attention
6. Forty is the new twenty
7. Grounded in science
8. Regulators force rethink
9. Um-measurable niches
10. Boom for protein
1. Food apocalypse versus food
utopia
2. Quality versus price
3. Storyselling
4. Global versus local
5. City brands
6. Tradition versus innovation
7. Meal mobility
8. Small pleasures, big health
9. Authentic bakery feel
10. Bakery superstars and super
bakeries
SOLUTIONS FOR FAT REPLACEMENT
HEALTHY
CARAVAN INGREDIENTS [CORBION PURAC]
INNOVATION IS PARAMOUNT
Tudo está mudando...
... Muito rápido
E a gentenem percebe!
5 REGRAS PARA INOVAÇÃO DE SUCESSO
5. RESPEITE AS DIFERENÇAS REGIONAIS!5. RESPEITE AS DIFERENÇAS REGIONAIS!
A Classe A/B do Nordeste compra mais que a Classe C da Grande SP
E esses lares ainda tem renda 11% maior do que os gastos
O Centro-Oeste tem a maior renda do país!
Brasília tem a maior renda, porém a região tem o segundo maior % de classe D/E
Lares do Leste começam a se endividar com superfluos
Higiene, Lazer e Alimentação fora do lar tem gasto acima da média Brasil
Cariocas estão muito endividados!
Todas as classes gastam, pelo menos, 13% mais do que ganham
Classe D/E da Grande SP tem a segunda menor renda do Brasil!
Essa classe tem renda 7% abaixo da média e gasta 8% acima do que ganha
Interior de SP tem maior peso de Gastos Fixos do Brasil
61% do gasto dos lares já estão comprometidos, principalmente por gastos com transportes
Mais comida e bebida e menos produtos de beleza no Sul
Os lares do Sul gastam menos, tanto com produtos de higiene e beleza quanto com serviços estéticos.
5 REGRAS PARA INOVAÇÃO DE SUCESSO
INNOVATION IS PARAMOUNT