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1 Digestive Health Sponsored by:
2 Highlighting the key trends and future directions for innovation in the digestive health space Speaker: Robin Wyers, Chief Editor, Innova Market Insights (The Netherlands)
3 Thriving on Gut Feeling: Digestive Health NPD Vitafoods Asia 2018 September 2018
4 4 4 World leader in food ideas and answers
5 Digestive Health Vitafoods Asia 2018 TOPICS OF TODAY Good for the gut Fibers & prebiotics for a healthy gut Focus on probiotics The rise of fermented foods Key takeaways ABOUT INNOVA MARKET INSIGHTS Innova Market Insights is a leading market research company, serving our customers with our unique and powerful Innova Database: the world s largest database for the food industry, used by leading companies in food ingredients and manufacturing for future success in the dynamic FMCG/CPG industry. MEET US AT VITAFOODS ASIA STAND #123 Meet the experts of Innova Market Insights at Vitafoods Asia 5 5
6 Good for the gut
7 Growing awareness around digestive health in China in India 1 in 4 US consumers indicate digestive health is an almost daily problem 7 Source: Innova Market Insights consumer survey, 2017
8 Indexed # of product launches Digestive health gains ground in new product development Indexed number of new food & beverage launches tracked with a digestive health claim (Asia-Pacific*, Index 2013=100) *includes Asia and Australasia Tuckers Natural Multifibre Snacks With Chia, Linseed And Freekeh Malaysia, Apr 2018 CLAIMS Tucker's natural multi-fiber snacks are made with goodness of insoluble and soluble natural plant-based fibers which, combined with a healthy diet, can support improved digestion and overall vitality and well being. 11% daily recommended fiber intake.
9 Digestive health promoted in a diverse range of categories Top categories as percentage (%) of new food & beverages launches tracked with digestive health claims (Asia-Pacific*, 2017) CAGR Baby & Toddlers 34% +9% Bakery 10% +3% Dairy 9% +11% Sports Nutrition Sauces and Seasonings 8% 8% 0% 20% 40% % of new product launches +6% +9% Nestle Cerelac Stage 4 Infant Cereal With Milk From 12 Months: Rice And Potato With Chicken Bangladesh, Jun 2018 CLAIMS CHE - digestive support: CHE process breaks carbohydrates into smaller and easier to digest components. Bifidus BL helps strengthen babies' natural defenses. Bifidus BL (BB12) is a probiotic which helps to maintain a healthy intestinal gut flora for your baby. 9 9 *includes Asia and Australasia
10 Ways to address digestive health FIBERS AND PREBIOTICS CAGR growth(asia-pacific*) : Fiber and Prebiotics +9% PROBIOTICS CAGR growth(asia-pacific*) : Probiotics +9% *includes Asia and Australasia
11 Fibers and prebiotics for a healthy gut
12 Indexed # of product launches High consumer demand for fiber, industry responds PLACING IMPORTANCE ON FIBER HIGH IN FIBER TRENDS IN NPD 1 in 4 Chinese consumers consider high in/source of fiber claims an important factor when purchasing breakfast cereals (2017) 250 Indexed number of new food & beverages launches with a high/source of fiber claim (Asia-Pacific*, Index 2013=100) 200 Source: Innova Market Insights consumer survey, Uncle Tobys Cheerios With 4 Whole Grains Australia, Feb *includes Asia and Australasia
13 Indexed # of product launches FDS definition: Fluctuation in ingredients is expected REVITALIZATION OF APPLICATIONS US FDA DEFINES FIBER Indexed number of new food & beverages launches with fiber/prebiotic ingredients (Asia-Pacific*, Index 2013 = 100) CAGR % VS *includes Asia and Australasia
14 Traditional fiber-rich categories lead fiber BABY AND TODDLERS DAIRY BAKERY 14 14
15 Strong growth for fiber and prebiotic applications Fastest growing subcategories for new food & beverages launches tracked with fibers/prebiotics (Asia-Pacific*, CAGR ) Milk and Milk Drinks +66% Drinking Yogurt/Fermented +32% Sports Bars +32% Baby Meals +26% Baby Formula/Milk +18% Green N Go Soya Milk Plus Coffee Drink Philippines, Mar 2018 CLAIMS Made from real soybeans. Each bean is carefully selected before extraction to produce high quality soy milk. Contains oat fiber that aids in the digestive system *includes Asia and Australasia
16 Focus on probiotics
17 Indexed # of product launches Probiotics serve as a functional ingredient for digestion IMPROVING DIGESTIVE HEALTH PROBIOTIC APPLICATIONS STABILIZE Indexed number of new food & beverages launches tracked with probiotics (Asia-Pacific*, Index 2013 = 100) Delivers active cultures 10x more effectively than yogurt! *includes Asia and Australasia
18 Top probiotics to target digestive health B. LACTIS IS THE TOP PROBIOTIC FASTEST GROWING PROBIOTICS Top probiotics as percentage (%) of new food & beverages launches tracked with a digestive health claim (Asia-Pacific*, 2017) Bifidobacterium Lactis Other Bifidobacterium 20% 29% Bifidobacterium Animalis +38%** Only Activia contains exclusive probiotic Bifidus ActiRegularis which survive through your stomach and reach the intestines alive. Lactobacillus Acidophilus Lactobacillus Bulgaricus 18% 18% Lactobacillus Rhamnosus +34%** Lactobacillus Rhamnosus 13% Contains Prebiotics (oligosaccharides) and Probiotics (L. Rhamnosus) *includes Asia and Australasia **CAGR
19 Application of probiotics limited to leading categories TOP CATEGORIES FOR APPLICATION Top categories as a percentage (%) of new food & beverages launches with probiotic ingredients (Asia-Pacific*, 2016) 2% 4% LIMITED NPD IN SNACKS AND BAKERY Small digestive biscuit sandwiches with milk cream and lactobacillus 27% 67% Baby & Toddlers Sports Nutrition Dairy Other Ohso probiotic Belgian chocolate by Solgar is packed full of live bacteria good for your digestive system *includes Asia and Australasia
20 Indexed # of product launches New technological advances enable ambient application PROBIOTIC CONFECTIONERY & SNACKS VEGETABLES ARE NOW ALIVE Indexed number of new confectionery and snack launches with probiotics (Global, Index 2013=100) CAGR %
21 The rise of fermented foods
22 22 22 Opportunity for fermented goods amid the natural trend
23 % of new product launches Baby and toddlers category leads for fermented claims BABY FOOD: 1 IN 7 FERMENTED CLAIMS PREVALENCE OF FERMENTED CLAIMS Top categories as percentage (%) of new food & beverages launches with a fermented claim (Asia-Pacific*, 2017) 16% 14.0% 14% 12% 10% 8% 6% +11% average annual growth of food and beverage launches tracked with a fermented claim (Asia-Pacific*, ) 4% 2% 3.5% 3.1% 1.7% 0.9% Cyclops Greek Yogurt With Native NZ Honey New Zealand, Feb % Baby & Toddlers Dairy Sports Nutrition Sauces & Soft Drinks Seasonings DESCRIPTION:..The artisan method combines extended fermentation and only natural ingredients, including native NZ honey, for a delicate natural yogurt to enjoy every day *includes Asia and Australasia
24 Fermentation makes its entrance into diverse categories FASTEST GROWING CATEGORIES FERMENTATION USED FOR Fastest growing categories tracked with a fermented claim (Asia-Pacific*, CAGR ) process flavor Sauces and Seasonings +83% Cereals +41% Soft Drinks +25% Baby and Toddler +21% Aged and fermented. Contributes to healthy digestion Pretzel sticks with fermented butter flavor *includes Asia and Australasia
25 Indexed # of product launches Fermented beverages are on-trend GROWTH IN FERMENTED DRINKS TRADITIONAL METHODS REINVENTED Indexed number of fermented beverage** launches tracked with probiotics (Asia-Pacific*, Index 2013=100) 300 Skyr Kefir % Growth 2017 vs Lassi *includes Asia and Australasia ** excluding alcoholic beverages
26 Indexed # of product launches Kombucha: a growing niche INCREASING NUMBER OF LAUNCHES Indexed number of new food & beverages launches tracked with kombucha as an ingredient (Asia-Pacific*, Index 2013=100) GUT HEALTH: TOP CLAIM IN KOMBUCHA 2 in 5 food & beverages launches tracked with kombucha as an ingredient, feature a digestive/gut health claim (Asia-Pacific*, 2017) Organic and Raw. Live sparkling probiotic *includes Asia and Australasia
27 Key takeaways
28 Key takeaways Fibers and prebiotics for a healthy gut Fibers and prebiotics efficacy debate. Fiber-rich food innovations thrive. What counts as a dietary fiber is up for debate. Probiotics thrive in Asian baby & toddlers and dairy categories. Non-traditional categories, such as snacks, soft drinks and sports nutrition. Focus on probiotics The rise of fermented foods Consumers seek for more natural goods. Processing technique that also enhances flavor. The baby & toddlers category leads. A revival of traditional fermented drinks
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