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Trends in Free-From: Consumer Motivations & Innovation Snapshot Tanvi Savara Consumer Insight Analyst Food Matters Live, 22 nd November 2016

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Trends in Free-From: Consumer Motivations & Innovation

Snapshot

Tanvi Savara

Consumer Insight Analyst

Food Matters Live, 22nd November 2016

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Canadean’s primary consumer research

2

In 2016, we surveyed over 50,000 respondents

in 51 countries worldwide

Countries surveyed via online mode / countries surveyed via mobile mode

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…and Innovation Tracking

Discover trends and inspire new innovation

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There are 8 mega-trends, broken down into 63 sub-trends

Free-From aligns with multiple TrendSights

trends

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Free-From overview

Consumer motivations for Free-From

Global Innovation Snapshot

ForeSights

Agenda

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No longer a niche

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Milk alternatives will take the lead

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Soymilk + Grain, Rice, Nut, Seed Drinks White milk

CAGR Volume Growth 2016-21

Africa Asia MENA

North

America

East

Europe

Latin

America

West

Europe Australasia

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Profiling the “Free-From” consumer

31% 36% 41% 26% 23% 28%

Consumers most likely to limit or avoid their intake of the following, 2016

Images: Shutterstock.com Source: Canadean’s Q3 global survey, 2016

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Free-From overview

Consumer motivations for Free-From

Global Innovation Snapshot

ForeSights

Agenda

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“Free-From” motivations vary

Chosen avoidance Forced avoidance

Images: Shutterstock.com

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Forced avoidance: opting for medical

reasons

21% are limiting or avoiding gluten

for allergy or intolerance

reasons1

23% are limiting or avoiding dairy

for allergy or intolerance

reasons1

Source: [1] Canadean’s global survey, 2013

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Chosen avoidance: lifestyle choices

Healthy living Weight management

46% limiting or avoiding dairy

proactively seek products

which improve their health1

50% limiting or avoiding gluten

proactively seek products

which improve their health1

45% limiting or avoiding dairy are

actively trying to lose weight2

45% limiting or gluten are actively

trying to lose weight2

Source: [1] Canadean’s global survey, 2014 [2] Canadean’s Q3 global survey, 2016

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Free-From overview

Consumer motivations for Free-From

Global Innovation Snapshot

ForeSights

Agenda

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Global Innovation Snapshot

Positioning

Coconuts Nuts Vegetables &

Pulses

Ingredients

Simplicity Healthy

Indulgence

Images: Shutterstock.com

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Ingredients Focus: Coconut Branches Out

Consumers’ health

perception of coconut1

66%

4%

Go Veggie Lactose & Soy Free

Snack Bars

• 50% lesser fat than ordinary

cheese

• Stretches and melts just like

ordinary cheese

• Siracha flavor first in the

market

Siete Cassava & Coconut

Tortillas

• Made using coconut flour

• “Crafted with high-quality

pastured pork lard, used in

traditional, handmade flour

tortillas”

• Paleo-friendly

Source: [1] Canadean’s Q2 global survey, 2015

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Ingredients Focus: Nuts for Nuts!

Consumers who think the

following have a positive

impact on health1

79% Almonds

72% Hazelnuts

Milkadamia

• Made from Australian-sourced

macadamia nuts that grow

from “ground zero”

• Targeted specifically at

baristas

• “Better taste and texture than

other milk alternatives”

Simple Mills Pizza Dough Mix

• Made with almond flour,

coconut flour, and ground flax

• Paleo-friendly

• “Less than half the sugar and

carbs of leading baking mix

brands”

Source: [1] Canadean’s Q2 global survey, 2015

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Ingredients Focus: Green Delight

56% are trying to eat

vegetables as much as

possible1

32% are trying to eat pulses

as much as possible1

Veggemo

• Claims to be first and only

non-dairy cow’s alternative to

“originate from vegetables”

• Pea protein, tapioca from

cassava roots, and starch

from white potatoes

Really Healthy Pasta Mung

Bean Fusilli

• “Single ingredient” pasta

range

• Grain-free, organic, vegan

• 1 cup = 1 cup of vegetables

Source: [1] Canadean’s Q3 global survey, 2016

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Positioning Focus: Simplicity

58% focus on one or two

key things when

reading the labels on

food and drink products1

70% find products formulated

with the lowest number

of ingredients

appealing2

Images: shutterstock.com Source: [1] Canadean’s Q2 global survey, 2015 [2] Canadean’s global survey, 2014

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Simplicity: examples we like

One brand, one message Short ingredient lists

Oatly

• Oat-based milk drinks

• Packaging cues reinforces

product applications

RxBar Protein Bar • Calls out short ingredient list

“upfront”

• “No B.S.” + dairy-free

• Brand name has a healthy

connotation

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Positioning Focus: Healthy Indulgence

Top 5 priorities when shopping for

food and drink

22%

25%

27%

35%

41%

Trust/familiarity with themanufacturer or brand

The ingredient listgenerally

Price versus comparableoptions

Nutrition information

The flavour

Image: shutterstock.com Source: Canadean’s global survey, 2013

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Healthy Indulgence: examples we like

Booja Booja • “Takes cues from premium dairy

ice creams”

• Made with cashew

• Sweetened with agave or coconut

syrup

• “Carefully sourced organic

ingredients”

Pure Genius Brownies • “Good for you treat that actually

tastes good!”

• <200 calories

• Made with chickpeas

• Gluten-, soy-, and nut-free

• “Excellent source of protein and

fiber”

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Free-From overview

Consumer motivations for Free-From

Global Innovation Snapshot

ForeSights

Agenda

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Concepts that could shape free-from in

the future

Kebari Banana flour

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Kebari

Source: [1] CSIRO, April 14, 2016;

What is it? • World’s first gluten-free barley

approved by WHO

• Gluten content less than 5 ppm (below

WHO cut-off for 20ppm for “gluten-

free” products)

So what? • German brewer Radeberger first beer

brand to use Kebari barley in its

Pionier gluten-free beer

• Scientists are working on a hull-less

version of Kebari for application

outside of beer, suitable for breakfast

cereals, soup, pasta, and bread

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Banana Flour

What is it? • Flour made from green bananas

• Resistant starch – controls blood sugar levels

and helps keep fuller for longer

• Rich in potassium and minerals

• Slightly nutty, nearly “clean” flavor

So what?

Crek Crek Biscoito

de Polviho

Source: Canadean’s Product Launch Analytics

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Please keep in touch…

Tanvi Savara [email protected]

Follow me on twitter: @tanvi_canadean

To find out more about Canadean and other related content

we offer please contact [email protected]