identifying opportunities for health and wellness packaged ... · identifying opportunities for...

Identifying opportunities for health

and wellness packaged food and

beverages in APAC

Speaker: Reema Bhagwan Jagtiani, Analyst, Euromonitor, Singapore

IDENTIFYING OPPORTUNITIES FOR HEALTH AND WELLNESS PACKAGED FOOD AND BEVERAGES IN ASIA-PACIFIC

6 SEPTEMBER 2017

REEMA JAGTIANI ANALYST

2

© Euromonitor International

INTRODUCTION

INDUSTRY OVERVIEW

CURRENT TRENDS IN HEALTH AND WELLNESS

THE NATURALLY FUNCTIONAL MOVEMENT

TARGETED POSITIONING

FUTURE OUTLOOK

http://www.euromonitor.com/

3IDENTIFYING OPPORTUNITIES FOR HEALTH AND WELLNESS PACKAGED FOOD AND BEVERAGES IN ASIA-PACIFIC

About Euromonitor International



4

Alcoholic Drinks

Apparel

Automotive

Beauty and Personal Care

Consumer Appliances

Consumer Electronics

Health and Wellness

Home and Garden

Home Care

Consumer Health

Eyewear

Fresh Food

Nutrition

Packaged Food

Personal Accessories

Pet Care

Soft Drinks

Tobacco

Toys and Games

Tissue and Hygiene


Research ExpertiseConsumer Products

Consumer Foodservice

Institutional Channels

Services

Consumer Finance

Retailing

Travel

Supply

Ingredients

Packaging

Economies

Business Dynamics

Cities

Economy, Finance and Trade

Industrial

Lifestyles

Income and Expenditure

Households

Population

Hot Drinks

Luxury Goods

Ethical Labels

Consumers

Digital Consumer



5


INTRODUCTION

INDUSTRY OVERVIEW




FUTURE OUTLOOK



Scope12 Geographies

• China• Hong Kong

• Indonesia

• India• Japan

• Malaysia• Philippines

• Singapore

• South Korea• Taiwan• Thailand

• Vietnam

5 Health & Wellness

• Better For You (BFY)• Reduced Carbs

• Reduced Fat

• Reduced Salt• Reduced Sugar

• Functional/Fortified (FF)• Free From (packaged food only)

• Naturally Healthy (NH)

• Organic




Fortified/functional products dominate value sales in APAC

46%

35%

39%

35%

7%

20%

0%

APAC

Global

Global vs Asia Pacific Health and Wellness by type: Retail value sales 2016 (Packaged Food & Beverages)

20%

Fortified/Functional

40%

Naturally Healthy

60%

Better For You

80%

Free From

100%

Organic




And registered the strongest absolute value growth

0

15

30

45

60

75

FF Packaged Products

NH Packaged Products

BFY Packaged Products

Free From Products

Organic Products

Asia-Pacific Health and Wellness by type:Retail value sales 2016 (Packaged Food & Beverages)

2016 retail value sales 2011-2016 CAGR%


USD billions %

22

20

18

16

14

12

10

8

6

4

2

0



Largest Fortified/functional (FF) product categories in APAC

Asia-Pacific Fortified/Functional Products by Categories: Retail value sales 2016

Food

Baby Food

Dairy

Confectionery

Sweet Biscuits, Snack Bars and Fruit Snacks

Others (Breakfast Cereals, Oils, Bread)

Beverages

FF Energy Drinks

FF Fruit/Vegetable Juice

FF Sports Drinks

FF Other Hot Drinks

FF BottledWater

Others (Carbonates, Concentrates, Instant Coffee, RTD Tea/Coffee)

Baby Food

Dairy

Energy Drinks

Fruit/ Veg JuiceSports

Drinks

Other HotDrinks




Largest Naturally Healthy (NH) product categories in APAC

Food

NH Fruit Snacks

NH Honey

NH Olive Oil

NH Nuts, Seeds and Trail Mixes

NH High Fibre Food

NH Rice

Others (Dairy and Cereal Bars)

Beverages

NH RTD Tea

NH Tea

NH Other Hot Drinks

NH BottledWater

NH Fruit/Vegetable Juice

NH Asian Speciality Drinks


RTD Tea

Asia-Pacific Naturally Healthy Products by Categories: Retail value sales 2016

Bottled Water

Nuts, seeds, trail mixes

Fruit Snacks


11


INTRODUCTION

INDUSTRY OVERVIEW




FUTURE OUTLOOK



Health and wellness industry driven by two key trends

Naturally Functional

• Unprocessed or minimally processed foods driven by functional health claims

• Use of natural or fortified ingredients with intrinsic benefits (e.g. botanicals)

• Traverse both Fortified/Functional andNaturally Healthy products

Targeted Positioning

• Standard fortifications in emerging & developed markets

• Health claims targeted at specific healthconditions

• Led by Fortified/Functional products© Euromonitor International


13

40

Is all natural

Does not contain artificial sweeteners

Has limited sugar or no added sugar

Does not contain trans fat or hydrogenated oils

Does not contain GMO ingredients

Has limited or no artificial ingredients

Contains added vitamins or fibre

Has limited fat or no added fat

Reduced or low calorie

Only contains ingredients I recogonise

Which of the following factors or ingredients do you look for on foodlabels and food ingredient labels?

0 10 20 30

2016

2015


Less is more, consumers increasingly prefer all natural products

% respondents50



14


INTRODUCTION

INDUSTRY OVERVIEW



APAC PRODUCT FOCUS

SPOTLIGHT: OLIVE OIL


FUTURE OUTLOOK


15

Naturally Healthy


Attributes of the naturally functional movement traverse FF & NH


Approved health

claims by regulator

No known approved

health claims by regulator

Fortified/Functional

Image sources: Aloegloe.com; 7-11 Philippines© Euromonitor International



APAC product focus: plant-based beverages

NaturallyFunctional

Zico Coconut Water

Matcha Love MatchaColada

0

10

50

0.0

0.2

200.4

0.6

1.040

0.8

30

1.2

1.4

Thailand South Korea

Indonesia Japan China UK Brazil US

Coconut and other plant water: Retail value sales %

60

2016 2021 2016-2021 CAGR%© Euromonitor International

USD billions

Image sources: RedMart.com; Itoen.com


17

F&N Magnolia Kids Cocio Energy, Arla Foods

Farm Fresh Kurma

Fresh Delight

Purple Rice Yoghurt


APAC product focus: other botanicals and superfoods

NaturallyFunctional


Image sources: Youtube.com; Cocio Philippines; Farmfresh.com


https://www.facebook.com/CocioPH/photos/a.141619976176666.1073741828.111819249156739/362078484130813/?type=3&theater


18

Regulation

• Legally approved healthy property

Market size

• Global retail value sales = USD13 billion in 2016

Emerging Markets

• “New world growers” such as India set to re-shape future world olive map


Naturally healthy spotlight: olive oil

NaturallyFunctional



19

0

2

4

6

8

10

12

14

16

18

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

India China Brazil US Italy Spain

value sales

Japan France

2011 2016 2021 2016-2021 CAGR%


Olive oil gains traction in key APAC markets

Major & emerging NH olive oil markets: Retail

Raj Olive Oil, India

Leonardo, India

%

20

NaturallyFunctional

USD billions

Image sources: Rajolive.com; Leonardo Olive Oil



https://www.facebook.com/GoOliveWithLeonardo/

20


INTRODUCTION

INDUSTRY OVERVIEW




FUTURE OUTLOOK



21

Japan, FFC, 2015

• New voluntary label, Foodwith Functional Claims

• Display specific health benefit

• Cheaper, faster and less stringent than FOSHU

• Promotes innovation

India, FSSAI, 2015/6

• New fortification standards for milk, rice, oil etc.

• Raises consumer confidence

• Benefits packaged food/beverage players


Regulatory updates in APAC support targeted positioning




FFC labelling stimulates successful use of innovative ingredients

Indigestible dextrin + dietary fibre

Suppress absorption of fat and sugar

Kirin Raw Tea Kirin Mets Plus Lemon Squash

Kirin Mets Plus Sparkling Water

Gaseri-Kin SP Reduce body fat,

especially visceral fat

Future opportunities for traditional Japanese

foods

Natto (Vitamin K2)

Amazake (Manganese, Vitamin B)

Oi Ocha Nihon No Kenko Genmai Cha

Monoglucosyl-Hespederin

Healthy blood flow

Megumi SP Kabu Sarasara Mugicha



Image sources: Amazon.com; Itoen.com; Megumi-yg.com


23


INTRODUCTION

INDUSTRY OVERVIEW




FUTURE OUTLOOK



Food and drink still the preferred way to stay healthy in future

0

1

2

4

5

-

20

40

80

3

60

100

120

140

Herbal/TraditionalProducts

Vitamins and DietarySupplements

Naturally Healthy (NH) Fortified/Functional (FF)

Asia-Pacific: Retail value sales

2011 2016 2021 2016-2021 CAGR%


%

6

USD billions



Top APAC NH forecast growth markets




Top APAC FF forecast growth markets




Innovation and customisation key to product differentiation and growth

ON-THE-GO

Cadbury Bournvita Breakfast

Biscuit

TAILORED

Ceregrow, cereal for 2-5

year olds

TARGETED

Meiji Gold Advance for

Seniors

White Space!

Other Demand Drivers


Image sources: Mondelez International; Amazon.in; UFC Velvet; Elovi.com.vn


https://www.facebook.com/pg/UFCvelvet/about/



Key takeaways


Diversified

Market Strategy



THANK YOU FOR LISTENINGReema Jagtiani

Analyst

[email protected]

+65 6429 0590 Ext 6762

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Comparative consumer analysis

between ASEAN, Japan and India

Speaker: Rieko Shofu, President and CEO, Sensing Asia Ltd., Japan

@2017 Sensing Asia

6 September 2017

Rieko Shofu

President and CEO, Sensing Asia Ltd.

Comparative Consumer Analysis

between ASEAN, Japan and

India

@2017 Sensing Asia33

• Marketing consulting company supporting

business development in Asia region

• Affiliate partners in 13 countries in the region

1. Consulting and M&A advisory services

2. Efficient and cost-effective support (online &

offline services)

3. Hands-on approach

What is Sensing Asia Ltd.?


We provide 4 types of services to supporteach step of your international business development.

Basic Services

• Covers regulatory information, investment environment, consumption, living and business cost information

Trend Sensing

• Provides future insights for business strategy planning and development of goods, services and technologies

• Analyzes signs of new trends and changes in market trends in the target market.

Advanced Services

• For detailed research for international business expansion

• Covers industry structure, regulations, market, customers, competitors and also searches the potential business partners

Service Overview


Table of contents

1. Market overview and consumer trends

1.1 ASEAN

1.2 Japan

1.3 India

2. Marketing strategies case studies

2.1 ASEAN

2.2 Japan

2.3 India


Table of contents


1.1 ASEAN

1.2 Japan

1.3 India


2.1 ASEAN

2.2 Japan

2.3 India


17.0

18.5

33.0

37.5

42.5

47.0

51.7

57.0

58.5

59.1

64.0

76.1

83.0

81.5

67.0

62.5

57.5

53.0

48.3

43.0

41.5

40.9

36.0

23.9

0% 50% 100%

Metro Manila

Jakarta

Kuala Lumpur

Bangkok

Singapore

Hong Kong

Seoul

Delhi

Ho Chi Minh City

Beijing

Taipei

Tokyo

Want to staymentally youngforever

Want to becomewiser with age

Source: Hakuhodo, 2012

Comparative study on people in their 50s in Asian 12 cities

-- aspirations for being/looking young --


28.0

28.0

30.0

37.5

40.0

46.7

48.0

53.3

59.0

61.5

62.6

74.4

72.0

72.0

70.0

62.5

60.0

53.3

52.0

46.7

41.0

38.5

37.4

25.6

0% 50% 100%

Metro Manila

Kuala Lumpur

Jakarta

Bangkok

Hong Kong

Singapore

Delhi

Seoul

Ho Chi Minh City

Taipei

Beijing

Tokyo

Want to stayphysicallyyoung forever

Want a matureapperance thatsuits my age






Youth-orientation rising with age:

Tokyo and Taipei

Maturity-orientation rising with age:

Jakarta, Kuala Lumpur, Bangkok and

Singapore







All youth-oriented:

Beijing and Ho Chi Minh City

Different worlds:

Delhi and Hong Kong


0.0 50.0 100.0

Mumbai

Delhi

Ho Chi Minh City

Jakarta

Metro Manila

Bangkok

Kuala Lumpur

Singapore

Guangzhou

Beijing

Shanghai

Seoul

Taipei

Hong Kong

Use of skin care and makeup products

Makeup product

Skin care product (excludingfacial wash)

Comparative study on Asian women in 14 cities

-- sense of beauty and beauty care --

Source: Hakuhodo, 2012 Question: What kind of beauty products do you usually use?(women from age 15 to 59)

East Asia :

skin care 94.6%

makeup 71.4%

South East Asia:

skin care 73.6%

makeup 87.4%

India:

skin care 60.4%

Makeup 97.4%


Market overview: ASEAN

• Demands for functional foods and supplement are increasing across

the ASEAN region

• However, as consumers become more interested in functional foods

and supplement, they are becoming more wary about the

health/functional claims labeled on the products.

• There is an increasing need to establish consistent regulations,

approval procedure and guidelines for scientifically evidenced

health/functional claims across the region


Consumer trends: ASEAN (Sugar tax debate)

Background

• In ASEAN, high sugar intake and increasing rate of obesity and diabetes

have been an issue.

• Asians are at higher risk of developing type 2 diabetes when compared with

people of other ancestry.

• Some ASEAN countries have been deliberating on the plan of imposing

sugar taxes on sugary beverages and food.

Source: Asian Diabetes Prevention Initiative, International Tax and Investment Center, WHO “Global Report of Diabetes 2016”

Region Prevalence (%) Number (millions)

1980 2014 1980 2014

South East Asia 4.1% 8.6% 17 96

Europe 5.3% 7.3% 33 64

Estimated Prevalence and Number of People with Diabetes (Adults 18+)



Legislations and debate

Under Discussion

Malaysia: Worst obesity rate in SE Asia

Philippines: Still under debate but

recently Ministry of Finance indicated it

may drop the sugar tax proposal.

Indonesia: Plan to implement a soda tax

in 2017 but yet to determine the tax rate.

Luxury tax on some drinks was once

imposed but scrapped in 2004 after it

badly affected beverage manufacturers.

Sugar Tax Introduced

Brunei: Sugar tax took effect on 1 April

2017. (A can of soft drink costs 13 cents

more.)

Thailand: From 16 Sept 2017, taxes on

sugary drinks will be increased over the

next 6 years. (Taxes on drinks containing

no sugar or using artificial sweeteners will

be decreased on the other hand.)

Dropped

Vietnam: Proposed to levy 10% tax on carbonated drinks in 2014, but was cancelled in

2015 due to commercial pressure

Source: International Tax and Investment Center, Borneo Bulletin Online, www.beveragedaily.com, Bangkok Post, the Philippines Star,

www.apfoodonline.com

http://www.beveragedaily.com/

http://www.apfoodonline.com/



Possible Effects

• Sugar tax debate needs to be followed, as it certainly affects the target

industry (certain kinds of beverages and food).

• Meanwhile, the effect of sugar tax is still argued:

– Some argue that:

• it would help reduce the average sugar intake in the same way the tax

on cigarette worked.

– Others argue that:

• Consumers will only take sugar from other untaxed products.

• Public awareness raising is more important to produce an overall effect.


Consumer trends: ASEAN (Singapore’s “Healthier Choice”)

Background

1. Growing demand for local produce

• Seen as healthier, fresher, tastier and safer option

2. Dining out with healthier options

• Hot soup dishes - considered to be healthier, popular at hawkers

• More demand for vegetarian food

• e.g. salad bars, high-protein, low-carbohydrate and low-calorie bento,

high probiotic food, superfoods such as kale, quinoa, etc.

Yong Tau Foo Ban Mee Kale Quinoa

Source: Euromonitor, Photo credit: By Takeaway (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia

Commons, By Goh Wei Zhong (Goh wz); produced with the assistance of Terence Ong and Calvin Teo. - Own work., CC BY 2.5,

https://commons.wikimedia.org/w/index.php?curid=1500495, By blairingmedia - Own work, CC BY-SA 3.0,

https://commons.wikimedia.org/w/index.php?curid=9486992,

http://creativecommons.org/licenses/by-sa/3.0

https://commons.wikimedia.org/w/index.php?curid=1500495

https://commons.wikimedia.org/w/index.php?curid=9486992


Healthier Choice Symbol (HCS) Programme

• Government initiative to put logos on healthy food/groceries (Generally

lower in total fat, saturated fat, sodium and sugar)

• 7 out of 10 ppl acknowledge the HCS logo

• 69% check HCS logo when purchasing groceries.

• Groceries at supermarkets, food at school cafeteria, hawkers

Source: Euromonitor, Health Promotion Board Singapore, http://www.tnc-trend.jp/singapore03/

Consumer trends: ASEAN (Singapore’s “Healthier Choice”)

http://www.tnc-trend.jp/singapore03/


Consumer trends: ASEAN (Indonesia – drinks for cooling

down)

• Among the wide variety of Asian specialty drinks, in Indonesia, the

most popular product is “cooling water” (locally known as “larutan

penyegar”).

• “Cooling down” is seen as an added function to the beverage.

• In Indonesia, local companies are major players in this area; although

not much growth is anticipated in a foreseeable future.

Source: Euromonitor


Consumer trends: ASEAN (Indonesia – drinks for cooling

down)

• PT. Sinde Budi Sentosa, a Indonesian pharmaceutical company, produces

“Larutan Penyegar Cap Badak” since 1981.

Source: www.sindebudi.com

• Larutan Penyegar is a health beverage to cure

body heat (the symptom of so-called “panas

dalam” or “hot inside” in Indonesian).

• The drink is a sort of “Jamu”, traditional

Indonesian herbal medicine, and contains

traditional herbal ingredients (Gypsum Fibrosum

etc.).

• Its tasteless, colorless and odorless formula was

widely accepted by all age group of Indonesia.

• Currently, aside from the original formula, 7 flavors

are available (orange, strawberry, melon, lychee,

guava, grape and apple).

http://www.sindebudi.com/


Consumer trends: ASEAN (Thailand – vegetable based

protein products)

Source: NNA, Bangkok Post, TIPCO Beat facebook

• High-protein health beverages have become increasingly popular in Thailand, big

players in this field being Meiji and Dutch Mill.

• Tipco Foods Plc, has entered into this market

by introducing “Tipco beat”, yellow pea

extract-based high-protein drink.

• Not only that it matches the growing

consumer needs for high-protein products, it

contains only 4.5% sugar, which is less than

the threshold that the government is going to

introduce in the new sugar tax regime.

• By introducing “beat”, Tipco aims at reducing

the risk that other Tipco products may face

as the government puts the new sugar tax

regime in place.


Table of contents


1.1 ASEAN

1.2 Japan

1.3 India


2.1 ASEAN

2.2 Japan

2.3 India


Market Overview: Japan (Regulatory System)

Pharmaceutical

Products

Food for Specified

Health Uses

Food with Function

Claims

Food with Nutrient

Function Claims

Food in General

Food

with

Health

Claims

• Government approval required.

• Permitted to bear claims such as

“Slows cholesterol absorption.”

• Under the business operator's own responsibility, can

bear function claims based on scientific evidence.

• No need of pre-approval by the government, but the

supporting evidence needs to be submitted.

• To supplement the nutrients (vitamins, minerals, etc.)

• No need to submit a notification to the government, as

long as the food contains certain amounts of nutrient

Source: I.Bヘルスケア, Consumer Affairs Agency


Market overview: Japan (Market Size and Growth)

Source: Fuji Keizai

30.1104.2 131.7

111.4

111.7114.6

382

391.7396.3

0

100

200

300

400

500

600

700

2015 2016 2017 (Projection)

Market size (Food with Health Claims)

Food for Specified HealthUses

Food with Nutrient FunctionClaims

Food with Function Claims

Billion JPY


Market overview: Japan (Market Size and Growth)

Source: Fuji Keizai, http://www.suntory.co.jp/softdrink/iyemon/tokucha/product/ http://www.asahiinryo.co.jp/products/tea/16cha_syokuji_w/

http://web.bifix.jp/ http://www.megumi-yg.com/kinou/

https://www.glico.com/jp/product/chocolate/gaba/14069/ https://www.glico.com/jp/product/chocolate/libera/10625/

• In 2016, probiotics yoghurt, certain chocolate and tomato juice product contributed to

the growth of Food with Function Claims. The food product such as sweets/snacks and

fruit/vegetable juices started to bear function claims, creating new demands in the

market.

• Food for Specified Health Uses has the largest market; however, it costs quite much

for the company to obtain the approval from the government.

• More than 60% of Food for Specified Health Uses are beverages, and among them,

non-sugar tea drinks have been sold particularly well.

Food with Functional ClaimsFood for Specified Health Uses

http://www.suntory.co.jp/softdrink/iyemon/tokucha/product/

http://www.asahiinryo.co.jp/products/tea/16cha_syokuji_w/

http://web.bifix.jp/

http://www.megumi-yg.com/kinou/

https://www.glico.com/jp/product/chocolate/libera/10625/


Market overview: Japan

Source: Intage

• Market share of health food and supplement by health benefit (FY2016):

1st – Maintaining health and improving physical strength

2nd – Beautiful skin and skin care

3rd – Eye health

4th – Recovery from physical exhaustion


Consumer trends: Japan “Chou-Katsu (腸活)”

• “Chou-Katsu”, or “intestine activity” if literally translated, has

become popular these days.

• “Chou-Katsu” is to have a lifestyle, exercises and diet that could

create a better intestine environment.

–e.g.) Starting a day with a glass of water or drinking a spoonful of

olive oil to activate the workings of intestines

• Keeping a good intestine environment treats constipation, makes

skin beautiful and makes people healthier.


Consumer trends: Japan “Chou-Katsu (腸活)”

• To control the balance between good and bad bacteria in the intestine,

the following health foods are gaining much attention:

–Probiotics yoghurt (Japan is the largest probiotics market in Asia (45%

in 2016))

–Traditional fermented food (miso, natto, shio-koji or a mixture of malted

rice and salt, etc.)

–Fiber-rich food (mushrooms, fermented germinated brown rice, etc.)

• Various food products and supplements are promoted and sold around

this concept of “Chou-Katsu”.

Source: Mordor Intelligence

“Toraya Miso Soup” by snowpea&bokchoi is licensed under CC BY 2.0, “Natto” by snowpea&bokchoi is licensed under CC BY 2.0

http://web.bifix.jp/ http://www.megumi-yg.com/kinou/

Miso soup Natto Probiotics yoghurt

http://web.bifix.jp/

http://www.megumi-yg.com/kinou/


Table of contents


1.1 ASEAN

1.2 Japan

1.3 India


2.1 ASEAN

2.2 Japan

2.3 India


Market overview: India

• Huge vegetarian population base

• Younger generation are getting more and more concerned about their

weight and shape and inclined to choose healthier food.

• The Food Safety and Standards Authority of India (FSSAI) has issued

the long-awaited rules for functional foods and supplements, which

will be enforced from 1 Jan, 2018.

• The rules cover health supplements, nutraceuticals, food for special

dietary use, food for special medical purposes, functional foods and

novel foods.

• The Indian Direct Selling Association (IDSA) has welcomed new rules

saying that the rules will offer much needed clarity and fill a

regulatory vacuum.


Consumer trends: India

• Health and wellness foods market is growing at a rate of about 10%.

–Male: tends to go for fortification and nutrients

–Female: seeks organic and natural foods, stresses more on making

dietary choicesSource: Nielsen

• Consumers are moving away from traditional breakfast like ‘parathas’ to

healthier options such as cereals, oats and fortified milk food drinks.

Source: BW Disrupt, Nielsen, the Economic Times, “#paratha #bananaleaf #milpitas” by Mighty Travels is licensed under CC BY 2.0,

“Jalebi” by Rishabh Mathur is licensed under CC BY 2.0 https://www.kelloggs.in/en_IN/brands/corn-flakes/products.html#num=500

http://www.bagrrys.com/product/crunchy-muesli/crunchy-muesli http://marico.com/india/brands/saffola/saffola-oats

Parathas, Indian traditional breakfast Corn Flakes, Muesli and Oats

https://www.flickr.com/photos/96223380@N02/14966000385

https://www.flickr.com/people/96223380@N02/

https://creativecommons.org/licenses/by/2.0

https://www.flickr.com/photos/rishabh_m/8853006488

https://www.flickr.com/people/rishabh_m/

https://creativecommons.org/licenses/by/2.0

https://www.kelloggs.in/en_IN/brands/corn-flakes/products.html#num=500

http://www.bagrrys.com/product/crunchy-muesli/crunchy-muesli

http://marico.com/india/brands/saffola/saffola-oats



• Growth rates are high

especially in the

following categories:

–Green tea

–Wheat and Oat Noodles

–Milk food drinks

–Breakfast cereals

Category Sales (Rs crore) Growth

(%)2015 2014

Healthy biscuits 1,155 1,103 5

Wheat/Oat noodles 187 164 14

Breakfast cereals 951 865 10

Multigrain atta 1,205 1,126 7

Milk food drinks 5,180 4,677 11

Green tea 165 109 52

Healthy oils 1,250 1,148 9

Sugar substitutes 258 248 4

Source: Nielsen, the Economic Times http://www.tetley.in/our-teas/products?id=34 https://www.organicindiashop.com/organic-tulsi-teas/tulsi-

green-tea-classic-25-tea-bags-14.html

Green Tea

http://www.tetley.in/our-teas/products?id=34

https://www.organicindiashop.com/organic-tulsi-teas/tulsi-green-tea-classic-25-tea-bags-14.html



• Oil

–Consumers are increasingly aware that there are good and bad fats

and starting to consciously choose good over bad fats.

–Consumers are increasingly choosing baked over fried food,

including sweets and snacks.

• Fiber

–Products with high and added fiber are increasing

(e.g. bread, cereals and snack products)

• Protein

–Due to the vegetarian population base, demands for plant-based

proteins remains strong.

Source: Nielsen, Mintel, the Economic Times


Table of contents


1.1 ASEAN

1.2 Japan

1.3 India


2.1 ASEAN

2.2 Japan

2.3 India


Marketing strategies case study (ASEAN): Carabao group

(Carabao Dang energy drink)

Background

• Launched the energy drink “Carabao Dang” in 2002 when M-150 (40%

share) and Red Bull (26% share) were dominant in the market.

• After 10-plus yrs Carabao grabbed 21.7% market share from M-150 and

Red Bull. Now No.2 in the energy drink market.

• Targeted consumer: working population in need of energy and refreshment

during work, low to moderate income bracket

Source: http://www.carabaogroup.com/en/investor/download/ENG_Annual%20Report_2558_ForWeb.pdf

https://globalalliancepartners.s3.amazonaws.com/propositions/59cf8f6bccd43fa6a6b5793eba25ded5.pdf

https://www.krungsri.com/bank/getmedia/84a126b3-2e87-438d-a930-dcd78fea5ae9/Company-Update-141058-01-EN.aspx

http://www.osk188.co.th/th/images/articles/research_center/download/fundamentals/pdf_en/2016/05/th_carabao%20group_initiating%20coverage_20160531_rhb.pdf

http://www.carabaogroup.com/en/investor/download/ENG_Annual Report_2558_ForWeb.pdf



http://www.osk188.co.th/th/images/articles/research_center/download/fundamentals/pdf_en/2016/05/th_carabao group_initiating coverage_20160531_rhb.pdf


Strategies

• One of the firm’s founders is Aed Carabao, a leader of a famous music-for-

life band called “Carabao”

• Marketing through various media channels to reach wider consumer

coverage

• Marketing to reach target customers in specific areas (“Bao Dang Girls

Team” and “Cash Van model”)

Source: http://www.carabaogroup.com/en/investor/download/ENG_Annual%20Report_2558_ForWeb.pdf



http://www.osk188.co.th/th/images/articles/research_center/download/fundamentals/pdf_en/2016/05/th_carabao%20group_initiating%20coverage_20160531_rhb.pdf

Marketing strategies case study (ASEAN): Carabao group

(Carabao Dang energy drink)

http://www.carabaogroup.com/en/investor/download/ENG_Annual Report_2558_ForWeb.pdf



http://www.osk188.co.th/th/images/articles/research_center/download/fundamentals/pdf_en/2016/05/th_carabao group_initiating coverage_20160531_rhb.pdf


Table of contents


1.1 ASEAN

1.2 Japan

1.3 India


2.1 ASEAN

2.2 Japan

2.3 India


Marketing strategies case studies (Japan):

• Food for Specified Health Uses:

- Started in 1991

- Market size shrinking from its peak of 680 bn yen in

2007

- Very limited varieties of products: among those

currently in the market, 30% is tea, 12% is milk

beverage/yoghurt

- 1,271 products of 201 companies have been

approved so far, but only 366 products are

currently in the market

- Huge cost for product development

- Takes 3-4 years to obtain approval

Source: Tsuhan Shinbun http://www.suntory.co.jp/softdrink/iyemon/tokucha/product/


Food with Nutrient Function Claims

http://www.suntory.co.jp/softdrink/iyemon/tokucha/product/



Marketing strategies case studies (Japan):

• Food with Functional Claims:

- Started in 2015

- Number of applications for over 900 products

- Changing marketing approach

Source: Tsuhan Shinbun http://www.fancl.co.jp/Items/Detail?category=02&item_code=5391a

e.g. Supplements

containing bilberry

extract and lutein

“To enjoy seeing

and reading”

Unclear/ambiguous

sales copies

Food with

Functional Claims

e.g. Fancl’s Enkin, eye

supplement

“To help the eye focus

on close objects”

Clearer message

targeting certain parts

of body

http://www.fancl.co.jp/Items/Detail?category=02&item_code=5391a


Table of contents


1.1 ASEAN

1.2 Japan

1.3 India


2.1 ASEAN

2.2 Japan

2.3 India


Marketing strategies case studies (India): Saffola oil

Source: http://marico.com/india/brands/saffola/saffola-oils

Background

• Launched by Marico Limited, much before Indian people became

health conscious (Marico produces healthcare/grooming brand

“Parachute” as well as health food brand “Saffola”.)

• Saffola’s portfolio includes edible oils, functional foods, and salt

• As Indians became more concerned about their health, variety of

healthy oils were launched and market competition increased

http://marico.com/india/brands/saffola/saffola-oils



Source: the Economic Times Brand Equity

BEFORE

• Typical customer: mid aged urban male who switched to Saffola from regular oil

due to recommendation from doctors

• Brand Idea: therapeutic, medical item

• Marketing strategy:

Called itself “life insurance”, bulwark against heart disease

Ambulance lights and sirens, panic-stricken faces in the ad

NOW

• Customer base: In addition to the old customer base, obtained new customers

who want to have an active and healthy life

• Brand Idea: Optimistic and positive, such as care and happiness

• Marketing strategy:

Leaving from scare-mongering ads, runs “Saffola FIT foodie”TM website,

introducing healthy recipes of traditional favorites supervised by nutritionists

and dieticians

Position on proactive and preventive heart health



Source: https://www.instagram.com/maricocareers/ https://www.fitfoodie.in/

https://www.instagram.com/maricocareers/

https://www.fitfoodie.in/



Source: The Economic Times Brand Equity, Livemint.com

• Further challenge:

– Still seen as mama papa brand

– Whether the brand can obtain supports from younger consumers or not is the

question

• Saugata Gupta, managing director and CEO of Marico, in an interview:

– Going to focus on “in-between healthy foods” (healthy planned meals around

11am and 6pm) as part of its three-year growth strategy

– Super premium edible oils (Saffola Aura), male grooming (Set Wet, Beardo),

and food (Saffola) should drive the company’s growth in the next three years

– Seeing small local shops as the biggest sales channels for snacking and

impulse items (Marico has not reached at the moment)


Sensing Asia Ltd.

Phone : +81-3-6205-3131

Fax : +81-3-6205-3100

[email protected]

Thank you!

The Asian food consumer: A

global citizen

Speaker: Natasha Telles D'Costa, Director, Visionary Science Practice: Chemicals, Materials,

and Foods- APAC, Frost & Sullivan, New Zealand

Agriculture

Nutrition

Presented by

Natasha Telles D’costa | Director, APAC

The Asian food consumer: A Glocal citizenMarrying Premiumisation & Value for Money to Ascertain

How Consumers Food Focus are Changing

2017

The Frost & Sullivan StoryOur Global Footprint 40+ Offices – Scanning the Globe for Opportunities and Innovation

78

1961 1990 Today

Pioneered Emerging Market

& Technology Research

• Global Footprint Begins

• Country Economic Research

• Market & Technical Research

• Best Practice Career Training

• MindXChange Events

Partnership Relationship

with Clients

• Growth Partnership Services

• GIL Global Events

• GIL University

• Growth Team Membership

• Growth Consulting

Visionary Innovation

• Mega Trends Research

• CEO 360 Visionary Perspective

• GIL Think Tanks

• GIL Global Community

• Communities of Practice

Emerging Research

1961-1990

Growth Partnership

1990-Today

Visionary Innovation

Today-Future

Key Focus Areas under Agriculture and Nutrition The Agriculture and Nutrition Practice Approaches the Industry from Five Major Segments

79

Aerospace & Defense

Automotive & Transportation

Visionary Sciences

Energy & Power Systems

Environmental & Building

Technologies

Healthcare

Industrial Automation & Process

Control

Information & Communication

Technologies

Our Industry Practices

Electronics and Security

Measurement and Instrumentation

Agriculture and Nutrition – Key Focus Areas

• Omega Fatty Acids

• Direct fed

microbials /

Prebiotics

• Protein Ingredients

• Soy based

ingredients

• Whey Protein &

Casienates

• Vitamin Premixes

• Botanicals

• Other Functional

Ingredients

Nutraceuticals Animal Feed Food

Ingredients

End Product

Research

• Vitamin Premix

• Growth Promoters

• Enzymes

• Amino Acids

• Probiotics

• Dietary Fibers

• Coccidiostats

• Preservatives

• Other Feed

additives

• Emulsifiers

• Colors

• Preservatives

• Flavors &

Fragrance

• Antimicrobials

• Enzymes

• Anticoagulants

• Sweeteners

• Starch

• Stabilizers

• Anti caking agents

• Acid Regulators

• Moisture retention

agents

• Processed Foods &

Snacks

• Fresh & Frozen

Foods

• Dietary

Supplements

• Functional Foods &

Beverages

• Animal Feed &

Nutrition

• Morning Goods /

RTE / RTF / RTC

• Cooking aids /

Prepared

Convenience &

staple foods/Instant

mix

• Oils & Fats

Agriculture

• Crop production

• Crop management

• Cash crops

• Food crops

• Plantation

management

• Sustainable

agricultural

practices

• Farm to Fork

efficiency support

http://images.google.co.in/imgres?imgurl=http://www.dietsinreview.com/diet_column/wp-content/uploads/2009/03/breakfast-cereal-desk-lg-300x234.jpg&imgrefurl=http://www.dietsinreview.com/diet_column/03/the-best-and-worst-breakfast-cereals/&usg=__YoC2TRk2WoVQ3YSoEfdGtNPXMS8=&h=234&w=300&sz=26&hl=en&start=23&um=1&itbs=1&tbnid=ApjP2y8FGHv7PM:&tbnh=90&tbnw=116&prev=/images?q=breakfast+cereals,+images&ndsp=20&hl=en&rlz=1T4GZEZ_enIN323IN323&sa=N&start=20&um=1&newwindow=1

http://advocacy.britannica.com/blog/advocacy/wp-content/uploads/animalfeed.jpg

http://images.google.co.in/imgres?imgurl=http://www.glanbiaingredients.com/europe/cmsImages/2310200816-504934.jpg&imgrefurl=http://www.glanbiaingredients.com/asia/index.cfm?id=26&action=displayNews&usg=__mKyqM-iP1yP8Lhqdw1_2YWHcGVk=&h=200&w=133&sz=14&hl=en&start=23&um=1&itbs=1&tbnid=40yLAB-_GeZvFM:&tbnh=104&tbnw=69&prev=/images?q=functional+dairy,+images&ndsp=20&hl=en&rlz=1T4GZEZ_enIN323IN323&sa=N&start=20&um=1&newwindow=1

The Evolving Food Consumer

WHAT KEEPS US UP AT NIGHT? The Developed World worries about Rising Healthcare Costs,

Driving Demand for Food as Nutrition If current trends hold - by 2050, healthcare spending will double, claiming 20-30% of GDP for some economies

81

Disease/Care

Management

Prevention/Wellness

Go

al: K

ee

p p

eo

ple

he

alt

hy l

on

ge

r

End of LifeChronically Ill Unmanaged

Chronically Ill Managed

Undiagnosed“At Risk”Healthy /”Worried

Well”

Go

al: M

an

ag

e o

r m

itig

ate

ris

k

Go

al: D

iag

no

se

an

d r

ed

uc

e

trea

tme

nt

de

lay

Go

al: M

ove

to

mo

re

inte

rac

tio

n a

nd

se

lf-

ma

na

ge

me

nt

Go

al: M

an

ag

e

Go

al: In

form

ed

de

cis

ion

s

Track, Predict,

Intervene, Manage

SIZ

E O

F IM

PA

CT

ED

PO

PU

LA

TIO

N

Non Communicable

Diseases have witnessed a

46%

Lifestyle Diseases have

emerged as the key global

cause of death

Heart Diseases cause

27%of global disease

mortality

growth in mortality

rates since 2000

Food Security and Food Safety as a Major Focus in The Developing World

82

of the worlds hungry

population lives in APAC

of fruit & vegetables

produced in APAC

are wasted

>5% of GDP is

spent on

healthcare in most

APAC economies

driving interest in

preventative

nutrition

HEALTHCARE COSTS

FOOD FRAUD

FOOD

WASTAG

E

FOOD

SECURITY66%

or 522 million

42%

is lost to food scams

every year in APAC

driving calls for traceability

>8 billion USD

However Changing Demographics will Result in Growing Sedentary Lifestyles and

Demand for Premium Health Products

83

*Middle Class is defined as the section

of society earning between 2500-4999

USD per month corrected to

purchasing price parity per country

of the world’s

billionaires and

over 30% of the

world’s High net

income

individuals live in

APAC!Source: World Wealth Report,2015

of the world’s

Millennials live in

APAC!Source: Frost & Sullivan

of global GDP

comes from

APAC!Source: IMF, 2015

Middle Class*

Individuals

with growing disposable

incomes!Source: Frost & Sullivan

Market Consumption TrendsThe Food Consumer is Changing in leaps and bounds led by a Focus On Nutrition and the Need To Make

Their Money Go Farther

84

Consumer

preferences towards

added nutritional

value and ‘free-from’

foods. Individuals

and organisations

aim to reduce

nutritional

deficiencies.

KEY TRENDS

HEALTH AWARENESS

Rising populations and affluence in the

large urban centres particularly in

APAC has increased uptake of

convenience and food service products

URBANISATION

Decreasing rates of sustainable

food production provides an

opportunity for premium

manufacturers

SUSTAINABILITY

Blurring borders and

changing demographics

drives demand for

convenient and

accessible food choices

as global palates change

GLOBALISATION

Traceability

Responsible Nutrition

Natural Trend

Lifestyle Nutrition

Preventative Healthcare

Urbanisation

Gen-Y

Globalisation

Megatrends to Microeffects – Consumers will Buy Concepts Not Products

85

Indulgence and Visual Eating

Social Media & Affluence

Glocalisation Changing Competition

Ethnic Food goes Global

Convenience

Bricks & Clicks

Fitness for Everybody

Condition Nutrition

Affordable Nutrition

Free from

Back to Basics: Ancient Foods

Eco is Consumer Friendly

Transparent Value Chains

Eating Local, supporting local

Ethical Trade

WHERE WE BEGAN WHERE WE ARE WHERE WE ARE GOING

Sustainability

& Food Safety

Health &

Wellness

Globalisatio

n &

Changing

Economies

Consumer Food Choices and Affordability will be Defined based on Emotional

Connections with Food Products- The Story has never been More Important

86

ASPIRATIONAL LIVING

A key consumer trigger

helping assess nutraceutical

messages:

• India

• China

• ASEAN-5

ETHNIC ASSOCIATIONS

Large traditional medicine

sectors moving into the

commercial space

• South Korea

• India

• China

• New Zealand

CONVENIENCE

Markets where urbanisation

is a key influencer

• South Korea

• India

• ASEAN-5

• Australia

• Japan

AGEING FOCUSSED

Markets where the rate of

ageing is accelerated

• Japan

• Australia

• New Zealand

TRACEABILITY

Growing concerns over

ethical and safe value chains

• Japan

• Australia

• New Zealand

• South Korea

• China

While demographics tend to

skew consumer ingredient

choices each country tends to

have similar overarching

drivers

Affordable Nutrition: Investments into Nutrition

Value for Money becoming a Priority The APAC Example – Dairy Today is an Investment into Healthy Living

88

The bulk of ANZ consumers today reside in markets where it takes over 30 minutes of work at minimum wage to afford a liter of UHT milk

The growing willingness of lower income consumers to invest in the nutrition that dairy provides is a factor driving dairy companies to invest

in growing their value added portfolio

The growing focus on austerity in APAC has not focused on dairy but has caused a growing crop of consumers willing to invest in premium

products- if a value added benefit is evident

0

0.5

1

1.5

2

2.5

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

Fre

sh

milk P

rice (

$U

SD

)

Ho

urs

at

min

imu

m w

ag

e t

o

bu

y 1

L m

ilk

Hours at Minimum Wage to buy 1L of Fresh/UHT milk, APAC, 2017

Hours at minimum wage to buy 1L milk Fresh Milk Price (1L) USD

Income

Health Value

Accessibility

Price

Affordable nutrition : The natural example

89

“nothing artificial

or synthetic

(including all color

additives

regardless of

source) has been

included in, or has

been added to, a

food”

Limited in market

natural

definitions-

natural is often

confused with

organic, free from

and clean label

Only defined in context of flavourings- “Source material must be vegetable, animal, or microbiological. Must be produced by a traditional food preparation process.”US-

FDA

EU

APAC

Consumer

Buzzwords

100%

Natural

Fresh/Clean

Free- From

Organic

Farm Fresh

Pure/Real

The demand for natural/clean labels is a key focus area for food manufacturers

90

With increasing concerns about chemical side effects and introduction of synthetic additives into foods consumer demand for natural alternatives has

increased dramatically.

The industry responded to such demand by focusing on customization of products to focus on natural alternatives for established variants.

Increasing Shifts to NaturalAPAC:

Increasing

focus on local raw

materials such as

Noni, green tea ,

Ayurveda etc.

USA:

Stevia a natural

sweetener takes on

aspartame the

established synthetic

variantEU:

Beta-carotene a primarily

synthetic variant facing

substitution with natural in

spite of being more

expensive

The natural label has emerged as a market

defining trend with synthetic products being

constantly replaced by natural ingredients due to

worries over synthetic variants safety.0

500

1000

1500

2000

2500

2009 2010 2011 2012 2013 2014 2015 2016

US Stevia Market, 2009-16

0%

2%

4%

6%

8%

10%

0

100

200

300

400

500

2009 2010 2011 2012 2013 2014 2015 2016Natural Synthetic Natural growth rate

Implications of natural labels The Food Consumer is Changing in leaps and bounds led by a Focus On Nutrition and the Need To Make

Their Money Go Farther

91

60% EU consumers would

choose a product

with natural on the

label over one

without KEY TRENDS

TRUST

30-40% consumers in

developed countries would focus on

ingredient compositions on labels

INGREDIENT AWARENESS

APAC consumers are 3Xmore likely to pay premium for an

organic tag on a product

SUSTAINABILITY

A back to basics focus

has resulted in

consumers spending

up to 15% more on products that

have cultural tags

such as Ayurveda/

Traditional Chinese

medicine claims

ETHNIC FOCUS

Consumer triggers: Investments into Nutrition

Conveying Value : Consumers look for different stories that they identify with to invest in

food

93

Fitting in- A focus on providing a

nutritional story that blends into daily life

Secure Supply Chains: Playing on

the willingness to invest in “fresh”

Peddling Dreams: Investing in

connected eating and traceable

nutrition

Tall Poppies: Food as the ultimate

status symbol

ACTIVE NUTRITION: “A form of nutrition that involves a lifestyle that

provides the body with optimal physical and mental stimuli via food”

CASE STUDY 1 : Fitting In - Conveying Value via a Lifestyle StoryFrom condition to demographic to active nutrition – a story of changing health and affordability propositions

94

Functional Foods

Functional

Beverages

Dietary …

Nutraceutical Market: Split by Product Type, (World),

2015

Active as a Lifestyle Choice

Maternal Health Geriatric Health Kids Health Sports nutrition

Growing

importance of

products focused

as an essential

nutritional aid for

new mothers

Focus on ageing nutrition products

to provide supplementation

againstosteoporosis and

improving metabolicfunctions

Addressingdevelopmental

concerns in bone &joint health

and focusing onthe Asian

micronutrientdeficiencychallenge

Addressing demands for supplemental

nutrition across an active lifestyle

focusing on providing healthy

energy sources for consumers

Condition Nutrition

De

mo

gra

ph

ic N

utr

itio

n

31% 33%

36%

Heart Health

Eye Health

Digestive health

Cognitive health etc.

Japanese are investing in

Children’s Health• Growing functional beverage market

aimed at children such as Calpis’ range

of fermented dairy products

The Japanese Story: A Heavy Burden on Young Shoulders

95

KEY FACTS

• 25% of the Japanese populations over 65

• Young Japanese will have to work longer

to support their dependent elders

• Children are thus a family’s main

investment in its future

Trend towards cute food• Japanese food manufacturers are

aiming to introduce aesthetically

pleasing local RTE foods to encourage

kids consumption

Food Education Programs• Ajinomoto Co, Mos Food Services Inc

and Q.P. Corp have launched

education programs to encourage

children to understand healthy food

choices

Trigger 1 : Products must convey a story of better nutrition

96

Naturally functional : A focus on

providing a naturally functional nutritional

story that blends into daily life

Ingredient Stars

Social media driven

• Ancient wisdom :Focus on superfoods such as ancient grains, superoxidants, teas etc

• Social media will drive natural ingredient awareness• Turmeric awareness as an anti-inflammatory has

skyrocketed since 2014• Social media is a key tool driving naturally functional

product launches especially within emerging ingredient segments

CASE STUDY 2: Secure Supply Chains - Playing on the willingness to invest in “fresh”Fresh symbolises quality in a processed food economy and is a concept most developing nations are

beginning to associate with premium- however perspective differs greatly

97

Manufacturer Messaging of Fresh

tends to be quite Consistent

Typical Words used by Consumers:

Freshness Innovation

Better, Goodness Assurance

Natural / Organic

Authenticity

New Process and Shorter Treatment

Higher Value Perception Indulgence

Chilled

However Consumer Perception varies significantly

on a Regional and Economic Basis

CHINA: A natural, fresher, longer shelf life

product

Buzzwords: “Premium imported product”

AUSTRALIA: Minimally processed

Buzzwords: “Closest thing to raw”

SAUDI ARABIA: Natural, no

preservatives, added nutrients

Buzzwords: “Fresh, fortified and

locally sourced/organic”

Trigger 2 : Deliver more than you promise

98

Secure Supply Chains: Playing on

the willingness to invest in “fresh”

• Fonterra has launched a food quality "seal" to all

its branded products - a stamp with the words

"Trusted Goodness"

• US products will bear a "non-GMO" claim, in China

it will be "grass-fed" and for other markets "cared-

for cows" will appeal to people with animal welfare

concerns.

• Arla’s campaign is focussed on the goodness of

milk with its full cream narrative

• The company aims to take consumers back to a

simpler time when milk was natural and a highly

nutritious food

CONVENIENCE

Consumers look to choose products that

are both natural and easy to integrate into

their diets and daily life

CONDITION NUTRITION

New product development will focus on

natural products that cater to specific

demographic and health conditions as part

of its overall concept

FOOD AS A STATUS SYMBOL

There will be a growing focus particualrly

in Asia of food choices becoming a means

of driving home a story of affluence

Dairy is a key focus of “fresh” based natural product messaging

CASE STUDY 3: Peddling Dreams: Investing in Connected Eating and Traceable NutritionConsumers require traceable connected eating food to prove quality and provide references of food safety

99

INTERNET OF THINGS (IOT)

Food providers will have to provide a strong accessible traceable story

AUGMENTED AND VIRTUAL REALITY

Brand interaction will define price tags of products and define its luxury status

BIG DATA

Predictive packaging based on consumer trends and ideal formats of delivery

Product Spotlight : Traceable, local and naturally processed are growing trends in the

natural product industry

Traceable stories will continue to drive natural product demand

Meat with vegetables is a growing natural food trend and seafood a key innovationarea in natural food products. Many US companies are now capitalising on thistrend for healthy, traceable, natural seafood options.

LoveTheWild, Boulder, offers traceable, sustainable frozen seafood mealkits in such varieties as barramundi with mango sriracha chutney, catfishwith Cajun creme and Pacific cod with roasted red pepper almond sauce.Locally grown and short farm to fork timelines will drive

consumer interest

Nudie Juices took the Australian market by storm when they launched locally grown 100% Australian based juices to a country that was facing growing worries over imports of juice concentrate.

Though priced significantly higher Nudies products have remained extremely successful due to their natural and local storyNaturally processed is a key consumer adoption factor

paritucalrly in the west

While organic, ethical trade and free from processing methods continue to dominate choices of natural foods there is a growing interest in newer processing techniques that distinguish food as safe and natural.

Sri Lanka has become to first country in the world to produce its tea without ozone depleting chemicals a fact that is resonating with developed world tea consumers.

Connected Eating will be driven by e-tailing of Food- What CEO’s think

The cognitive era is upon us, and it will have a significant transformational impact on the global food and beverage industry. Are you

ready?

Internet of Things

(IOT)

Augmented and Virtual

Reality

Big Data

Trigger 3 : Connected Eating in the Cognitive Era

Ingredients providers will have to

provide a strong accessible traceable story

Strong partnerships between B2B and

B2C to assess customer experience as

ingredients become a sought after

customer product

Predictive ingredient demand based

on consumer trends and formats of delivery

CASE STUDY 4: Tall poppies: Food as the ultimate status symbolSocial media will be a major driver for the growth of the indulgent category

103

Indulgence has taken on a major role in mental well-being globally. A growing crop of RTD drinks focussed on

indulgence such as Iced Mocha’s will begin to claw away market share within this category

Food

Home

Life…

Busi…

News

Other

40% of Singaporeans and

42% of South Koreans have too17% of Chinese and 8% of

South Koreans post once a day

of pins on Pinterest are related to

“FOOD AND DRINKS”

of people between 25 and 34 take their

phones or tablets with them to the kitchen

SensoryAppeal

HumanStory

Accessibility

Timeliness

IdentityShaping

Approximately 52%of topics covered in highly shared

(‘viral’) headlines are about FOOD

consumers in China (62%) have

shared their food experience on

social media in the past month

6 in 10

Case Study of Aspirational Food Gifts

104

Japanese consumers provide aspirational stories by providing contacts with premium local products and health

& wellness based international products

FUROSHIKI Gift OKAKI Set includes Sencha Superior, Genmaicha,

and OKAKI rice cracker which is one of the most popular and classic

snacks in Japan.

Green Tea box sets with premium loose leaf green tea are

growing in popularity in Japan especially those from Kyota and

Shizuoka famed for making the best green tea.

Japanese consumers often find international products overwhelming

and so food pairing is recommended in gift bags.

International food gifts in Japan tend to either have a strong

health & wellness of a luxury message with a clear local story

Trigger 4: : Protein is currently one of the most popular natural ingredients that is catering

to convenience, condition nutrition and aspiration via its product launches

Aspiration driven personalised protein shakes in Singapore

Catering to the need for personalisation USANA Health Sciences launched in2016 its First Personalised Shake, MySmartTMShake.

With backing from professional sportspersons the shakes offer two main consumerpulls- the ability to personalise the shake with the ability to choose separately thebase ( soy/whey), the flavour optimiser (various fruits) and the booster (fibreoptions)

Convenience driven demand for RTD options in Malaysia

While Singapore demands personalisation markets such as Malaysia are focussing on RTD options for protein drinks

Companies such as Fraser & Neaves are taking the concept of Protein into the barista space and providing protein enriched instant coffee options for the food service sector

Condition nutrtion focussed specific in protein in Thailand

The Thai consumer is probably the most developed protein consumer in SEA.

This is evidenced by protein in Bangkok being differentiated based on Whey (muscle building) and Carnitine (fat burning)

CP Meiji has thus launched in 2015 “double protein” milk- with whey protein concentrate in a chocolate flavour and carnitine in a natural flavour aimed at urban, exercise driven residents

Competitive Trends

Key Competitive Trends – Snackification

Alliances between alcoholic andnon-alcoholic FMCG players

As alcoholic beverage consumptiondips more and more players areentering health & wellnessfocussed beverages.

PepsiCo has partnered withSuntory to take on Coca Cola inAsian markets via a H&W beverageportfolio

Snack providers focus oninteractive marketing

Unilever Ventures has invested in anaugmented reality treasure hunt gameSnatch, a game dubbed “Pokémon Gofor brands

Snatch is an augmented reality mobilegaming experience where players findparcels and brands to win real prizes.Immersing people in an interactiveenvironment where they’re activelyseeking out products is being seen asa huge step in creating brand mindshare

Traditional food companies focus on the high value medical nutrition space

Nestle is doubling its interest in guthealth by investing in businessessuch as Seres Health (microbiometherapeutics) with an aim toultimately develop nutraceuticalsfor Gut and IBS products.

With an ageing consumerpopulation at risk of severaldigestive diseases Nestle isbeginning an aggressivetransformation into a H&Wcompany.

Pharmaceuticals & Consumer Health Future

Strategic Focus – Recent Examples

Douglas pharmaceuticals enters nutraceuticals with health supplements

• Douglas pharmaceuticals entered the preventative nutrition space in 2014 with

current products aimed at infant, maternal and geriatric care.

• The Puria range is growing in double digits and emerging as a key export venue for

the company.

Taisho pharmaceuticals a growing innovation source for functional beverages

in Japan

• Taisho pharmaceuticals forayed into the medicinal beverage market as eary as 2002

and has partnered with several leading pharmaceutical companeis such as Takeda

to develop products ranging from energy drinks ( Lipovitan D) to gastrointestinal

products such as Ichoyaku

DuPont investing in China via local pharmaceutical companies

• DuPont has tied up with Traditional Chinese herbal tea producer Guangzhou

Wanglaoji Pharmaceutical Co Ltd to introduce probiotic herbal drinks aimed at

children under 12 in China.

Ageing Nutrition : Biozoon moving into ageing nutrition via 3D

printing technology

Smoothfood is a growing requirement for elderly

consumers

Biozoon uses plant based texturizers and

fresh food, transforming it into smoothfood

using 3D printing to create visually appealing

meals which can be nutritionally tailored to any

individual., Smoothfood workshops are offered,

with chefs to inform users on how to prepare the

food.

Benefit to Consumer

Cater to very specific nutritional needs

Relevant to health & wellness trends such as Nutrigenomics

Increases quality of foodTurkey medallions with carrot by Biozoon©

Population over 60 by

2025

1.2 Bn

Are expected to be

undernourished

45%

Growth in elderly

homes in developed

markets

4X

Market for ageing

based foods

(nutrition and texture)

> 8 BN

Personalised nutrition : Nuritas using AI to create

functional foods

Scans every gene and protein in a food

sample, for peptides that offer human health

benefits

10 times faster than conventional research

methods, with 380 times more predictability, at

a thousandth the cost

Benefits: Targeted approach, high speed

prediction, 100% natural ingredients, cost

effective innovation, sustainable

Applications:

– Molecules found have antimicrobial

capabilities, can be used as a natural

food preservative to enhance food

safety and extend shelf life.

– Product differentiation, the peptides

discovered are novel, enabling the

creation of unique functional foods

Benefits across value chain

Customer: Increased value and quality of offering, potential cost

savings passed on through value chain

Manufacturer: Cost effective, reduce labour costs, reduce wastage,

product differentiation

$5bAI market by 2020

$101bGlobal natural

healthy food

market 2016

$69bGlobal functional

food market 2016

39%

increaseIn revenue

for early

adopters of

AI by 2020

Gamification as Education

Target market was primary school children

Indomilk wanted to invite parents to actively

support their children’s education and health

The game is centred around a very popular

cartoon character, Jagoan BoBoiBoy and a

collaborative board game was created

Game characters were obtained through

purchasing the milk drinks and cutting the

characters available on the packaging

Benefit to across value chain

Consumer: Children receive the health benefits of milk, whilst

developing key cognitive skills through playing the game

Customer: Parents feel like their children are benefiting with

respect to education, development and health

70%Of business

transformations fail due to

lack of engagement

$11bGamification market

by 2020

40%Of top organisations are using

it to transform business

operations

“75% psychology,

25% technology”

- Gabe Zichermann

Concluding Remarks

Conclusions – Lessons & Learning Competitive landscapes are changing rapidly for the food sector and providing emerging opportunities

113

Focus On What Makes Consumers Tick

• Identify consumer triggers and messaging in each market that will define the difference

between mind and market share

• Respect the local story and assess what makes consumers tick : where does the brand fit

in their daily life?

Understand That Competition Is Changing – STAY RELEVANT!!

• More and more pharmaceutical manufacturers will enter the food and beverage market

changing competition and rules of the road

• The key nutrition areas will drive scope for collaboration with non-traditional supplement

manufacturers

• Embrace the tall poppy! – Most developing consumers want a story of affluence attached to

a premium product – tailor the story to match this need

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary

innovation that addresses the global challenges and related growth opportunities that will make or break

today’s market participants. For more than 50 years, we have been developing growth strategies for the

Global 1000, emerging businesses, the public sector and the investment community. Is your organization

prepared for the next profound wave of industry convergence, disruptive technologies, increasing

competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and

emerging economies? Contact Us: Start the Discussion

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