Meeting consumer expectations: new product development and future opportunities for dairy, lactose and gluten-free
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1 Meeting consumer expectations: new product development and future opportunities for dairy, lactose and gluten-free Anne Wong-Erven, Senior Consultant 18 th November 2015 Food Matters Live, London STRATEGY & MANAGEMENT MERGERS & ACQUISITIONS COMMERCIAL & MARKET OPERATIONS & TECHNICAL WATER & ENVIRONMENT PACKAGING & DISTRIBUTION
2 What we will see today The current situation What is driving demand for these products today? New product development for dairy, lactose, and gluten-free Summary and future outlook 2
3 The situation Increased energy Weight management Healthier diet 3
4 Consumer expectations 4
5 lactose-free 5
6 The situation Lactose intolerance worldwide 6
7 The situation International dairy market Milk/yogurt/cheese consumption in 33 countries tonnes % % %
8 Lactose-free misconceptions Gastrointestinal problems mistakenly self-diagnosed as lactose-intolerance Lactose intolerance is the same as milk allergy Lactose intolerant should stop dairy consumption Lactose free not real dairy So some lactose intolerant may miss out on dairy nutrients such as calcium, phosphorus, vitamin D and proteins. 8
9 Misconception remedy Education To dispel myths To ensure consumers understand lactose free dairy benefits Lactose free does not mean avoid dairy 9
10 Lactose-free trends Widening product portfolio Co-existence with dairy Rising consumer awareness Self diagnosis boosting demand Better tasting products Fortification New categories Lower fat and sugar using all-natural sweeteners Packaging range extension 10
11 Lactose-free brand leaders 11
12 NPD: Lactose-free milk 12
13 NPD: Lactose-free drinks 13
14 NPD: Lactose-free yogurt 14
15 NPD: Lactose-free yogurt drinks 15
16 NPD: Lactose-free cream 16
17 NPD: Lactose-free butter 17
18 NPD: Lactose-free cheese 18
19 NPD: Lactose-free desserts and confectionery 19
20 Dairy-free alternatives Soy Cereal rice, oats, barley Nuts almonds, cashew, coconut, hazelnut, walnut Plant - sunflower 20
21 Dairy-free innovation Fortification with vitamins A, B2, B12, D2, E Fortification with minerals Mainly calcium Clean label Lactose free, dairy free, cholesterol free, GMO free, additive free, preservative free Organic ingredients 21
22 Dairy-free trends Ever broader choice beyond soy Soy losing halo health, genetic modification Almond rising high calcium, high antioxidants, low calorie, no saturated fat, vitamin E, vegan Cereals and nuts appearing Blends beginning Range extensions from milk to yogurt, desserts, ice cream Fortification with vitamins/minerals Clean label emphasis 22
23 Dairy-free brand leaders 23
24 NPD: Dairy-free milk alternatives 24
25 NPD: Dairy-free drinks 25
26 NPD: Dairy-free desserts 26
27 NPD: Dairy-free yogurt 27
28 NPD: Dairy-free cheese 28
29 Gluten-free 29
30 The situation Glutenfree Coeliac affects up to 5% of people globally 30
31 Gluten-free overview Glutenfree Consumer base coeliac, gluten sensitivity, lifestyle choice Present in foods that are difficult to avoid day to day Bakery products, pizza/pasta, cereals/snacks, baby foods, ready meals Less obvious presence confectionary, sausages, canned soups, beer 31
32 Sector trends Glutenfree Bakery holds approximately 65% of the market share by value Pasta, baby food and ready meals on the rise High demand for breakfast cereals, snacks, soups and sauces Foods free from more than one allergen such as wheat, nut, dairy + gluten-free More globally recognised brands are joining this trend Rise in own label 32
33 Global players Glutenfree 33
34 NPD: Bakery Glutenfree 34
35 NPD: Cereal Glutenfree 35
36 NPD: Pasta Glutenfree 36
37 NPD: Sauces Glutenfree 37
38 NPD: Baby food Glutenfree 38
39 NPD: Ready meals Glutenfree 39
40 NPD: Snacks and confectionery Glutenfree 40
41 NPD: Others Glutenfree 41
42 Future outlook Glutenfree Market is currently lead by consumption in the US in terms of both volume and value Europe greatest potential for growth in the next 5 years, with France and Italy driving this growth Established markets in the United States and Australia will continue upward trend Opportunities for growth in Asia-Pacific region 42
43 Future outlook Glutenfree Innovative use of supergrains will continue to drive new product development quinoa (gluten-free and high protein) polenta (gluten and wheat free) Bakery will drive growth in new markets Well established markets will see further expansion into niche food sectors Organics Children s foods Expansion in branded and own label Fortification with vitamins/minerals is an emerging trend 43
44 For more information on this presentation or on any of Zenith s services, please contact: Anne Wong-Erven awong-erven@.com Or telephone Zenith s head office on +44 (0) STRATEGY & MANAGEMENT MERGERS & ACQUISITIONS COMMERCIAL & MARKET OPERATIONS & TECHNICAL WATER & ENVIRONMENT PACKAGING & DISTRIBUTION
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