Health & Wellness Health & Wellness TrendsTrendsSchieber Research | October, 2013

� The following presentation aims to

demonstrate significant trends in Health &

Wellness, relevant to the world of

Consumer Goods, mainly in F&B, in 2014

and in the years to follow.

� Note that, in wellness trends, we need to

observe “proactive health consumers”

differently from “mainstream consumers”,

but past experience proves that but past experience proves that

seemingly “niche” health trends are soon

becoming mainstream. Such is the

Juicing phenomenon, abstaining from

specific ingredients, etc.. However, these

are sometimes passing, rather than long-

term trends.

Schieber Research has examined consumer research, company reports, sales

data, product launches, market research and analyst reports, in order to highlight

the most important market forces. We hope you enjoy this presentation, and

would love to get your feedback!

Targeted Nutrition

• Inherent Functional Food

• Energy, heart health,

Changing Consumption Habits

• Small meals and portion control

• Snackifying

Ingredient Focus

• “Real” food & Clean label

• Salt, fat and • Energy, heart health, digestion, anti-aging and other specific goals

• Nutrition by age

• Older consumers

• Children

• Personalized nutrition

• Snackifying

• Digital tools to monitor wellness

• Salt, fat and sweeteners changing landscape

• Seeking better carbsand more / other protein

• Allergen free and vegetarian food

� The term “Wellness” is perceived more holistically by today’s consumers, and marketers are trying to target at least some of the following elements through their product launches and marketing:

Physical• Avoiding sickness/

allergies

• Fitness, Looks

Mental

• Enjoy life

• Stress less

• Maintaining energy levels

• Work-life balance

Social

• Environmental Responsibility

• Community

• Success and sense of accomplishment

� Today’s consumers approach wellness holistically:

from “reactive” to “preventive” / proactive,

incorporating fun and indulgence as part of the

wellness equation.

Hartman Group, Reimagining

Health & Wellness, 2012

� According to Datamonitor, “Clean Label” is

connected to various connotations

� Consumers are searching for “more of the

good stuff” - not only “less of the bad stuff”.

But they want it as natural as possible, in

contrast to “lab-made good”.

� Trendy diets, such as “The Caveman / Paleo Diet”,

symbolize the genesis of “Clean Eating”, a lifestyle that

calls for elimination of processed ingredients.

� This trend is in line with the continuing negative sentiment

towards ingredient such as gluten (in the US, “gluten-free”

food grew 110% in 2013 according to Euromonitor) and

lactose (evident in Europe).

There appears to There appears to

be a certain

tension as per

the question,

“what constitutes

natural eating”,

as Vegetarian /

Vegan

approaches

conflict with

“naturalistic”

carnivore diets.

� Natural alternative sweeteners, such as

Agave or Stevia, continue to grow on the

ground of both helping to reduce total calorie

content in food & beverages, and helping to

position the products as more natural /

healthy due to positive consumer perception.

� Salt reduction on the other hand, is not as

communicated, since consumers might

perceive the products as less tasty if they are perceive the products as less tasty if they are

aware of the reduction. However, due to the

growing awareness of sodium related health

hazards, we expect to see this trend grow.

The alternative sweetener

of tomorrow: Monk Fruit

� Consumers are seeking more

ingredients and nutrients such as:

protein, omega3, anti-oxidants etc..

� The motivations concern looks /

satiety, energy, heart health,

healthy development and more.

We believe that the discussion on protein will

change from “how much” to “which source”,

due to the trend for reducing animal-sourced

protein. This is similar to the change in

conversation we’ve experienced with fat, and

later carbs.

� Today’s consumers expect their diet

to help them prevent / treat illness.

� Functional products are used to

improve the quality of life, in regards

to energy levels, mental feeling, mind

clarity and looks – anti-aging,

slimming, skin healthD)

From gut health to anti oxidants to energy* to targeted health benefits

� According to Consumer Analysis

by Canadean, the main motivation

in 14.5% of food purchase volume

is related to changing age

structures, i.e., consumers are

searching for products to answer

specific age needs – healthy

growth among children, heart

health / digestion among older

consumers, etc.consumers, etc.

Danone is an

example for

building a portfolio

according to the

level of relevance

of nutritional needs

– by different age

groups (source:

investor

presentation)

� Consumers are more aware than ever to the role

that nutrition plays in total quality of life.

� As a result, food and beverage manufacturers

emphasize the notion of Healthy Ageing.

� According to Innova, the leading claims in the

field are:

Gut Health / Digestion Energy Immune SystemCognitive Health Bone and Joint Health Skin Health Eye Health

Prominent Trend: Omega3 for Grown ups

�The consumer want Functional AND Natural

“inherently”

functional

Greek yogurt is one example to the power of “positive

nutrition” stemming from the search of “real food”

It is considered as a relatively un-processed clean good

� In Germany, MyMuesli is

offering organic muesli with

functional benefits aimed at

different demographics

1%

21%

2013 2013

Chobani US Market Share (Euromonitor)

It is considered as a relatively un-processed clean good

food.Chobani US Sales in 2013: $ 1.7 Billion (Euromonitor)Why? Less fat, more protein, and mostly: it’s “REAL”

� Following the massive success of Greek Yogurt,

companies are trying to introduce Kefir to new

markets as well. This is part of the growth in Ethnic

ingredients which are perceived as healthier in

outside markets, including Super-fruit, Chia, Aloe-

Vera, Kombucha and other ingredients.

Immunity and digestion now go beyond

pre/pro biotic yogurt. Consumers are turning

to food and beverages containing super fruits

and vegetables (Beetroot & greens in

particular), which are perceived as helping

digestion and immunity.

Energy Drinks strive for differentiation

� Breakfast & Snacking as major growth platforms

� Consumers view snacking as part of a healthy diet,

turning more and more to smaller meals around the clock

instead of 2-3 square meals.

� Breakfast is back in fashion, not so much because

consumers now know the importance of this meal

(because this was undisputed to begin with), rather the

reason is the introductions of convenient-and-indulgent-but-good-for-me products which successfully indulgent-but-good-for-me products which successfully

dealt with consumer barriers in the category.

� Consumers and shoppers are

increasingly interested in fresh

foods, and this stretches to

made-to-order food.

� The nutrition and wellness world includes monitoring tools aimed at detecting

calorie consumption and expenditure, medications and health parameters

such as sugar / blood pressure / cholesterol levels.

� However the adoption of these technologies remains niche.

� We believe that the world of nutrition will undergo “Gadgetization”, similarly to

the sports/fitness world, with equipment that will be considered as cool,

status symbols, which will in turn increase awareness to certain nutritional

parameters.

� We believe that the consideration of holistic health aspects, including mental health and stress relief, poses a tremendous opportunity to retail players and to manufacturers alike.

In France, Coca-Cola launched a pop-up

bar/restaurant which created a “mood

bubble” to separate the consumer from the

street. Other examples include tourism, street. Other examples include tourism,

where hotel chains aim to tailor experiences

according to the specific fitness / nutritional

lifestyle of the guests.

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