DAIRY & BEVERAGE

MARKET TRENDS &

CONCEPTS

Dairy & Beverage Market Trends & Concepts

• Market Data

• Key Trends in SEA Market

– Functional

– Ethical & Environmental

– Positioning

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Content

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MARKET DATA

DAIRY & BEVERAGE MARKET TRENDS &

CONCEPTS

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New Products Launch

Source: Mintel GNPD Period: 2010-2015 Category: Liquid Milk

Thailand, Philippines, Indonesia, Malaysia

0

20

40

60

80

100

120

140

2010 2011 2012 2013 2014 2015

New Products Launch

Malaysia

Philippines

Indonesia

Thailand

Indonesia

Thailand

Most active in new launch among 4 countriesFlavored milk is most popular

New launch blooming last 2 yearsActive in flavoured milk & soy based drinks

119

111

81

105

130125

Claim Distribution in SEA

0

50

100

150

200

250

300

350

400

2010 2011 2012 2013 2014 2015

Date Published vs Claim Category

Free from

Convenience

Demographic

Positioning

Ethical & environmental

Plus

Functional

Minus

Natural

Suitable for

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Key Trends

Mainstream

Suitable forNaturalMinus

FunctionalEthical & Environmental Positioning

Source: Mintel GNPD Period: 2010-2015 Category: Liquid Milk

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Key Trends in SEA Market

DAIRY & BEVERAGE MARKET TRENDS &

CONCEPTS

Key Trends in SEA Market

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Functional PositioningEthical &

Environmental

• For products that actively make a prominent marketing claim that the packaging for its product is friendly to the environment.

• Reduced/reduced weight packaging, recyclable packaging, re-usable packaging, made from recycled material, low carbon footprint. Also includes packs that claim for every package they make, they plant a tree etc.

• A growing desire for healthy lifestyles, caused by rising health issues, have increased the demand in the region for food and drink with functional claims and added health benefits.

• Functional dairy drinks can gain greater presence through fortified innovations that communicate specific benefits to consumers.

• Focus on the ‘high-end’ spectrum. Brands can convey a ‘high-end’ image of the category by highlighting unique attributes such as safety certifications, ingredient provenance, exclusive packaging and unique flavours.

01. Functional

• A growing desire for healthy lifestyles, caused by rising health issues has increased the demand for food and drink with natural claims and added health benefits in the Asia-Pacific region. Dairy drinks with functional claims have therefore been an important area of development, appearing on 27% of the total new product launches in the last 12 months to June 2015.

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24% 25%

28%

27%

21%

22%

23%

24%

25%

26%

27%

28%

29%

May 2011 - 2012 May 2012 - 2013 May 2013 - 2014 May 2014 - 2015

Functional

Functional

New Product Launches – Dairy Drinks – Asia Pacific

Source: Mintel GNPD Period: 2011-2015

01. Functional | Sub Trends

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High ProteinIntroducing high protein claims to food and drink categories has become a major focus of innovation.

Bone HealthResearch are showing that vitamin D plays a vital role in maintaining overall good health. Given that vitamin D fortification is a niche claim in dairy drinks, suggests that this holds significant potential for brands to launch vitamin D fortified milk and dairy drinks

DigestiveVitamin E and indigestible dextrin has been used as a claim to reduce fat. Besides, some products also concentrate on added fibre claim on their package to support digestive.

Functional Benefits With Additives Multi-functional products with lots of ingredients like variety vitamin, omega-3, antioxidant…

Brain & Nervous SystemBenefits associated with optimal memory function, brain and nervous health and maintaining a positive mental state .

01. Functional | Functional Benefits With Additives

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UHT Soy Milk with Black Sesame

2015, Lactasoy [Thailand]

The new non-dairy recipe contains 5,237.5µmol TE antioxidant activity per 250ml. It is high in 13 essential vitamins and minerals including biotin, folate, niacin, pantothenic acid, iron, calcium and vitamins A, B1, B2, B6, B12, D and E.

Ancient Grainis Quinoa Milk With Chia

2015 Freedom Foods [Malaysia]

The product is gluten free, lactose free, nut free and GM ingredient free and is said to be a good source of omega-3 ALA. Quinoa and chia seeds are said to contain important nutrients like protein, essential vitamins and antioxidants. Free from artificial colours, flavours and preservatives.

Pure Coconut Almond Milk Blend

2015, Califia Farms [Philippines]

Califia Farms Pure Coconut Almond Milk Blend is free from soy, gluten, dairy, trans fat, cholesterol and sugar. This product, with a taste of toasted coconut, provides only 50 calories per serving, is said to be an excellent source of calcium, is rich in antioxidant vitamin E and is 100% vegan. Made from non-genetically engineered almonds, the kosher certified product retails in a 1.4L BPA-free, recyclable bottle.

67%products on the market contains or claims in vitamin

11%claims to be a good source of amega-3

8%antioxidant

01. Functional | Digestive

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Rice Drink

2015, Yosoy [Indonesia]

Made with selected ingredients and pure water from the Montsenymountain. This 100% vegetable drink is claimed to be an important part of a diet, and is an all-natural alternative to milk. It is low in saturated fat, low in fat, low in sodium, and free from lactose and gluten. According to the manufacturer, rice helps to regulate the digestion, and is specially aimed at coeliacs.

Cocoa Flavoured Pasteurised Goat Milk

2015, Love Goat Milk [Thailand]

Love Goat Milk Cocoa Flavoured Pasteurised Goat Milk is said to be 100% fresh, natural, creamy and delicious. According to the manufacturer, goat milk is easy to digest and absorb; neutralises acid in the stomach; inhibits cholesterol deposition; is rich in nutrition, protein, calcium and vitamins; and contains good fatty acids such as caproic, caprylic and capric.

Oats & Rice was accepted in to regulating the digestion by the public, while

goat proteinrecommended by the producer that is easy to be digest recently.

01. Functional | High Protein

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Low Fat High Protein Pasteurised Milk

2015, CP-Meiji High Protein [Thailand]

CP-Meiji High Protein Low Fat High Protein Pasteurised Milk is made with an L-Carnitineformula. It contains 500mg L-carnitine, 18g protein per 350ml, and is high in calcium. The halal certified product retails in a 350ml bottle.

Soya Bean Milk

2015, BrookFarm [Indonesia]

BrookFarm Susu Kacang Kedelai (Soya Bean Milk) is said to be made from the best soya beans from America, which contains all the goodness of soya bean milk. It is vegan, high in protein and free from cholesterol, lactose, gluten and trans fat. The full and refreshing flavoured milk provides excellent source of nutrition, natural proteins, vitamins and minerals. The halal certified product is also low in saturated fat, recommended as a heart healthy protein drink for the family and retails in a 1000ml pack.

01. Functional | Bone Health

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Soy Milk with Tea

2015 Marusan [Thailand]

contains no milk powder ingredients or preservatives. It is high in calcium and vitamins B1, B2, B6 & B12. Calcium is said to help build bones and strengthen teeth, vitamin B1 helps the function of the brain and builds muscle, vitamin B2 helps the body produce energy from protein and fat, vitamin B6 helps brain development, and vitamin B12 aids in the function of the brain. This UHT product with a formula from Japan is suitable for vegetarians.

Spring White Tea Flavoured UHT Milk

2015 Anlene Gold BonezActiv [Thailand]

Anlene Gold BonezActiv Spring White Tea Flavoured UHT Milk is new to the range. This product contains a BonezActive formula that features phosphorus for healthy bones and teeth; vitamin D to help absorb calcium and phosphorous; and calcium to aid strong bones. This high calcium beverage is low in cholesterol and fat, and high in vitamin A that helps to aid vision ability, and vitamin B2 that helps to transform carbohydrates, protein and fat into energy. The halalcertified product provides 60% daily value of calcium

01. Functional | Brain & Nervous System

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Riceberry Milk Cereal Drink

2015 V-Fit [Thailand]

is made from organic riceberry and is high in vitamins B1, B2, B12, E, fibre, calcium and iron all of which contribute to healthy brain, nervous and muscle systems, energy extraction from foods, anti-oxidant processes, excretory system, strong bones and teeth and red blood cells productions. The milk also contains vitamin A for healthy vision, is vegetarian friendly and free from preservatives.

Plain UHT Milk

2015 Dutch Mill Gen I Nutri Vi-Plus [Thailand]

Dutch Mill Gen I Nutri Vi-Plus Plain UHT Milk is said to be nutritious for children. The milk contains kiwifruit extract powder as a natural source of lutein and vitamin A as well as calcium, phosphorus, iron, iodine and vitamins B12, C and D. It also contains omega 3, 6, and 9 as essential nutrients for the growth and development of vision, brain function, the nervous system, muscles, bones, teeth and red blood cell production.

Design for two kinds of people:Children White-collar worker

02. Ethical & Environmental

• For products that actively make a prominent marketing claim that the packaging for its product is friendly to the environment.

• Reduced/reduced weight packaging, recyclable packaging, re-usable packaging, made from recycled material, low carbon footprint. Also includes packs that claim for every package they make, they plant a tree etc.

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11%13.50% 13.50%

41%

22.30%25%

0%

10%

20%

30%

40%

50%

2010 2011 2012 2013 2014 2015

Ethical & Environmental

New Product Launches – Dairy Drinks – Phil/Thai/Indo/Malay

Source: Mintel GNPD Period: 2011-2015

03. Positioning |Focus on the ‘high-end’ spectrum

• The dairy drinks market in Asia has seen a growing number of players looking to meet the demand for safer and healthier products, as a result of strong food safety concerns. This can be reflected by the fifty-one percent of Chinese consumers who indicate that they are willing to pay a premium price for milk with international food safety certifications. NPD activity therefore show how some operators have kept exclusive attributes at the forefront of their development strategies to better engage consumers in the category.

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Why Premium?

Source: Source: http://www.corporatenetwork.com/ ; Mintel GNPD Period: 2011-2015

Better Living, Higher Standards

Blue OceanAvoiding struggle for price competition

Consumers are now more willing to spend on indulgence

The low price market is mature

03. Focus on the ‘high-end’ spectrum | How?

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How?

High quality ingredients

Flavourinnovation

Innovative packaging

Textures for fun

Health Conscious

Lifestyle focus

03. Focus on the ‘high-end’ spectrumA. High quality ingredients and provenance add premium cues

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Vanilla Malt Flavour Oat Dairy Drink

2015 Quaker Good Start [Thailand]USD 0.63 280ml

Quaker Good Start Vanilla Malt Flavour Oat Dairy Drink is described as delicious, nutritious and convenient breakfast drink that contains goodness from real oats and milk. The product is said to be a source of calcium that helps build bones and teeth; and rich in fibre that supports the digestive system. This product is made from New Zealand milk

Mocha Flavoured Soya Milk

2015 Hershey's Soyfresh [Indonesia]USD 0.93 236ml

Hershey's Soyfresh Minuman Sari Kedelai Rasa Moka (Mocha Flavoured Soya Milk) is free from preservatives and is described to be made from proprietary recipe with the finest Hershey's cocoa.

Either emphasis on the origin place, like milk from Australia/New Zealand, or brand awaraness.

03. Focus on the ‘high-end’ spectrumB. Flavour innovation can be an influential driver to trade up consumers

• Flavour innovation has been an influential driver of growth in many categories and is also a prevalent trend in the dairy drinks market. Many of the brands have explored flavour innovation in order to premiumize the category. This has mainly been done by launching dairy drinks featuring unique flavour profiles.

• There are still many flavour ingredients, both local and foreign, that have not been used in dairy.

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Sahmyook Banana Soy MilkIndonesia 2015.02

USD 0.81 190ml

Vegemil Black Bean SoymilkIndonesia 2015.05USD0.95 190ml

Skittles Fruits Flavoured Milk Philippines 2014.10

USD 11.28 750ml

Califia Farms Pure Coconut Almond Milk Blend

Philippines 2015.02USD 16.48 1.4l

03. Focus on the ‘high-end’ spectrumC. Brands innovate around packaging

• Another way to premiumize the dairy drinks category has been through packaging innovation. Some brands have chosen to shift away from cartons to cans while others have been extending the traditional bottle concept further.

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Innovative shapreDifferent materialPremium design

• A new variety of textures and formats is developed to appeal to consumers of all

ages. This also helps to create a point of difference to stand out and aid in promoting

sensory experiences.

03. Focus on the ‘high-end’ spectrumD. Multiple textures can offer luxury and enjoyment

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Strawberry & Yogurt Smoothie

Famima Café Mango Latte features mango whipped cream, mango sauce, mango fruit and coarse coconut shaving (Japan)

Mango Latte

Emial Smoothie Strawberry & Yogurt Smoothie is made with selected strawberry with good aroma and texture and a new fruit sauce to offer a more fruity texture. The fat-free product retails in a 180g pack (Japan)

03. Focus on the ‘high-end’ spectrumE. Health Conscious

• Consumers are becoming increasingly concerned about their health and wellbeing. According to a Mintel report, getting enough sleep, doing regular exercise and eating a balanced diet are recognised as the most important factors contributing to a healthy lifestyle.

• Dairy is gaining popularity for being rich in protein, calcium, vitamin and minerals.

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High Protein

Bone Health

DigestiveFunctional Benefits With Additives

Brain & Nervous System

…

03. Focus on the ‘high-end’ spectrumF. Lifestyle Focus

• Consumers are now more willing to spend on indulgence ranging from an expensive handbag to a luxurious tea time, thanks to the rise in income.

• These consumers want to be pampered. For example, going to the cinema is not just about watching a movie. They want to enjoy comfort and exclusivity with spacious seating and the serving of foods before entering the cinema hall.

• Businesses are upgrading their products and services catering to consumers who are willing to open their wallets to enjoy the luxurious experience.

• Disney knows what its customers love and that’s just what it gives them. For dairy companies, knowing consumers better, “what they are keen on with”, “what are they talking about daily”, “what do they care about mostly”…will help tap into the coming trend.

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Where do you want to go? We show you a way.

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High Protein

Bone Health

Digestive

Functional Benefits With Additives

Brain & NervousSystem

Functional Benefits With

Additives

High Protein Brain & Nervous System Fiber

Red Date Milk

“the king of nuts” (百果之王bǎi guǒ zhī wáng)

High Protein Sports Drink

Get your protein

conveniently

Walnut Milk Drink

Tree nuts and your brain

Cereal Milk Beverage

The benefits of fiber

Seventy to 80 times higher

in Vitamin C than grapes

and apples, abound with

Vitamin A, Vitamin B1,

Vitamin B2, protein,

calcium, phosphorus, iron

and magnesium.

Stimulate the production of

white blood cells, which

improves immunity, and

decrease the levels of

cholesterol in your

bloodstream, which helps

protect the liver.

Healthy protein intake

depends on weight, with a

recommended intake figure

of 0.8g per kg of weight per

day often cited. Age is also

a factor.

Over the course of a day,

the average man should be

eating around 55g of

protein, while a woman

needs 45g, says the British

Dietetic Association. In the

US, the national public

health body, the Centers for

Disease Control and

Prevention, recommends

56g for an average man

and 45g for a woman.

potential health benefits for

walnuts in the area of

memory and general

thought processes (often

referred to as "cognitive"

processes).

Potential health benefits

involves melatonin (MLT).

MLT is a widely-active

messaging molecule in our

nervous system, and very

hormone-like in its

regulatory properties. MLT

is critical in the regulaion of

sleep, daily (circadian)

rhythms, light-dark

adjustment, and other

processes..

Soluble fiber found in

beans, oats, flaxseed and

oat bran may help lower

total blood cholesterol

levels by lowering low-

density lipoprotein, or

"bad," cholesterol levels.

Soluble fiber can slow the

absorption of sugar and

help improve blood sugar

levels.

A healthy diet that includes

insoluble fiber may also

reduce the risk of

developing type 2 diabetes.

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DAIRY & BEVERAGE

MARKET TRENDS &

CONCEPTS

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