consumer trends in weight management in asia pacific: challenges and opportunities for the industry

CONSUMER TRENDS IN WEIGHT

MANAGEMENT ASIA PACIFIC: CHALLENGES

AND OPPORTUNITIES FOR THE INDUSTRY

VITAFOODS ASIA, SEPTEMBER 2014

MINJI KIM RESEARCH ANALYST

© Euromonitor International

2 CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA PACIFIC: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY

About Euromonitor International

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4

INTRODUCTION

WEIGHT MANAGEMENT OVERVIEW

KEY PRODUCT DEVELOPMENTS

CONCLUSION



5

US$163 of weight management retail sales globally in 2013

Japan takes the largest value sales with US$5.7 billion in 2013

12% represented by Asia Pacific in 2013; This region achieved 57% value growth between 2008-2013

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CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA PACIFIC: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY



6

Over 2 billion overweight and obese globally, led by China


-

20

40

60

80

100

120

140

160

180

200

Ind

ia

US

A

Bra

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Pa

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+

Top 30 Overweight and Obese Countries (BMI>25)

2008

2013

2018



7

0

10

20

30

40

50

60

Sw

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Norw

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Austr

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US

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US

$ „00

0 p

er

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ita

Annual Disposable Income

2013 2018Constant Prices, Fixed 2013 Exchange Rates

Rising annual disposable income




8

Other growth driving factors


Hectic life style

Campaigns

Social influence

Education on health risks of being

overweight



9

INTRODUCTION



CONCLUSION




Asian market shows strong outlook

0.0

1.0

2.0

3.0

4.0

5.0

6.0

US

$ b

illi

on

, Y

ea

r-o

n-y

ea

r e

xc

ha

ng

e r

ate

Weight management retail vale sales in 2008/2013

2008

2013



11

Japan

Meal Replacement Bottled Water

Carbonates Concentrates

RTD Tea Confectionery

Dairy Ice Cream

Meal Replacement Oils and Fats

Sauces, Dressings and Condiments Spreads

Developing countries have high potential to grow


India

Carbonates Dairy

Meal Replacement Other Food

Weight Management Retail Value Sales

By Product Type 2013 – % share



12

Reduce unhelpful

ingredients

Add functional

ingredients

Consumers remain interested in keeping a healthier diet




13

Demand for balanced nutrition becomes more prominent


0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2008 2013 2018

US

$ b

illi

on

, C

on

sta

nt

20

13

Pr

ice

s

Meal Replacement Slimming retail value sales - Asia Pacific

Meal Replacement Slimming

South Korea has the largest market

size of US$ 588 million

in 2013

Indonesia records the fastest

growth rate of nearly

1,000% between 2008 -

2013

Source:

http://products.herbalife.com.sg/we

ight-management/formula-1



14

Functional ingredients in beverages promise faster weight loss


Source:

http://www.philstar.com/health-and-

family/2013/01/08/894309/be-fit-not-fat-2013

With L-Carnitine With Bitter gourd With Ginger

Source:

http://www.agv.com.tw/index.php?apps=pro

duct&action=show&cat_id=13&id=88

With Chlorogenic acid

Taiwan Philippines Japan

Source: Own photo



15

Naturally healthy beverages also register strong demand


0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2013-14 2014-15 2015-16 2016-17 2017-18

Re

tail

va

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ye

ar

-on

-ye

ar

gr

ow

th %

, c

ur

re

nt

pr

ice

s

Reduced Sugar Beverages

Fortified/Functional Beverages

Bottled Water

RTD Tea

Retail value growth rate % 2013-18



16

Governments take the initiative: Hong Kong


Sources: http://restaurant.eatsmart.gov.hk/eng/home.asp



17

Governments take the initiative: Thailand


“Balanced nutrition

in foods”

Sources: http://www.raipoong.com/media/download/leaflet_food_exchange.pdf



18

Governments take the initiative: Singapore


Sources: http://www.hpb.gov.sg/HOPPortal/programmes-article/HPB053006



19

Technology developments continue


According to Noom Korea, for one year since the application was introduced

1.3 million of people newly registered in Noom Diet Coach 106,276 of Facebook users liked Noom Korea fanpage People lost 17,802,327kg using Noom application

https://itunes.apple.com/sg/app/idat/id470823071?mt=8


https://itunes.apple.com/sg/app/idat/id470823071?mt=8


20

INTRODUCTION



CONCLUSION




Key product developments: Weight loss + Skin Care

Source:http://news.naver.com/main/read.nhn?mode=

LSD&mid=sec&sid1=101&oid=001&aid=0006956346

Unique selling point

• 140ml functional drink and two pills of ‘Panduratin A’, an extract of Kaempferia pandurata

• High fibre

• Claim to help weight-loss and skin recovery together




Key product developments: Cola for weight management

Source:http://japandailypress.com/adult-

drinks-carbonated-soft-drinks-for-the-

health-conscious-078483/

Unique selling point

• Fortified with indigestible dextrin

• Claims to limit absorption of fat with reduced sugar

• Certified as ‘FOSHU (Food for Special Health Uses)’ beverage



23

Key product developments: Totally reformulated product


0 20 40 60 80 100 120 140

France

UK

Poland

Netherlands

US$ million, fixed exchange rates

Regular Sprite, now with stevia

2013 2012 2011 2010 2009



24

INTRODUCTION



CONCLUSION



25

US$202 of weight management retail sales globally in 2018

Emerging countries

13% of this market accounted for by Asia Pacific in 2018

bil

lio

n


will show dynamic growth in the forecast period



26

Challenges


Limited growth

High price

Safety issues

Competition

Regulation

Lack of awareness




Key takeaway

Weight management

Functional ingredients

India/Japan

Increasing competition

Innovation


THANK YOU FOR LISTENING

Q&A

Minji Kim Research Analyst [email protected]

mailto:[email protected]


29

Health and wellness food and beverages comprises the following Euromonitor International categories:

Weight management: Non-prescription medication as well as packaged foods and beverage positioning as weight management by reducing sugar or far or by adding functional ingredients to help weight lost

Better for you (BFY): Items where the amount of a substance considered to be less healthy has been actively reduced, removed or substituted during production. In turn, this forms part of the product's positioning/marketing, like low-fat or low-sugar versions of "standard" products . Products which are naturally free of, for example, fat, salt or sugar, are excluded.

Fortified/functional (FF): Products to which ingredients with purported health benefits have been added, and which have a specific physiological function and/or are enhanced to the point where the level of added ingredients would not normally be found. To merit inclusion, the product must have been actively fortified/enhanced during production. As such, inherently healthy products, like 100% fruit/vegetable juices, are only included if additional functional ingredients have been added.

Naturally healthy (NH): Products that naturally contain a substance that improves health and wellbeing beyond the product's pure calorific value, eg olive oil, honey, soy-based food and beverages, green tea, 100% fruit/vegetable juice and naturally high-fibre food (eg bread, breakfast cereals, pasta). While many of these products are marketed on a health basis, this need not necessarily be the case.

Glossary of terms

APPENDIX



30 APPENDIX

Food Intolerance (FI)

Organic (O)

• O+FF, O+BFY, O+NH

Fortified/Functional (FF)

• FF+BFY, FF+NH

Better For You (BFY)

• BFY+NH • Fat(4) SugarCarbsSalt (1)

Naturally Healthy (NH)

Health and Wellness Taxonomy

Exceptions:

Yoghurt: - FF most important

Spreadable Oils & Fats: - FF most important

Breakfast Cereals: - FF least important

because all cereals are fortified as the industry standard



31

Digestive Health

Probiotics

Prebiotics

Fibre

Weight Control

Fibre for

satiety

Fabuless - satiety

CLA

L’Carnitine - fat burning

High protein

Green tea

extract

Konjac mannan

Heart Health

Plant sterols/ stanols

Omega-3 ALA, DHA, EPA

Peptides

Beta glucans

Soluble fibre

Soy proteins

Folate

Vit K

Pectins

Bone and Teeth

Sugar-free gum

Calcium

Fluoride

Vit D

Beauty from

Within

Collagen

CoQ10

Lycopene

Antioxidants

Beta-carotene

Vit C

Selenium

Vit B2, B3, B7

Zinc

Vit A CoQ10

Vit E

APPENDIX

Focus on ingredients and prime positioning

Aloe Vera

Immune Support

Vit C

Anti-oxidants

Probiotics

Vit D

Selenium

Vit B 12

Brain Health

Omega-3 ALA, DHA, EPA

Caffeine

CoQ10

Vit B1, B3, B6, B7, B12

Magnesium

Energy / Sport

Nutrition

Whey protein

Creatine

Magnesium

Electrolites

Proteins

Vit B6


consumer trends in weight management in asia pacific: challenges and opportunities for the industry

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