GLOBAL PERSPECTIVES: AN OVERVIEW OF THE GLOBAL PROTEIN LANDSCAPE CHRIS SCHMIDT SENIOR CONSUMER HEALTH ANALYST MAY 3-4, 2016
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1 GLOBAL PERSPECTIVES: AN OVERVIEW OF THE GLOBAL PROTEIN LANDSCAPE CHRIS SCHMIDT SENIOR CONSUMER HEALTH ANALYST MAY 3-4, 2016
2 INTRODUCTION PROTEIN IN THE PASSPORT UNIVERSE TRENDS IN FORMULATION CONCLUSION
3 INTRODUCTION Who is Euromonitor International 3 Our Services Syndicated Market Research Custom Research and Consulting Expansive Network On the ground researchers in 80 countries Complete view of the global marketplace Cross-comparable data across every market Our Expertise Consumer Trends & Lifestyles Companies & Brands Product categories & Distribution channels Production & Supply Chains Economics & Forecasting Comparable data across markets Euromonitor International
4 INTRODUCTION Euromonitor International network and coverage 4 Euromonitor International
5 INTRODUCTION Data parameters and report definitions 5 Data parameters Unless otherwise noted, all values expressed in this report are in US dollar terms, using a constant, fixed exchange rate (2015) figures are based on part-year estimates. Report definitions Definitions for industry-specific and other terminology/abbreviations used in this report: RSP: Retail sales price CAGR: Compound annual growth rate CH: Consumer health The review period subsumes the years 2010 through 2015, inclusive. The forecast period subsumes the years 2015 over , inclusive. VDS: Vitamins and dietary supplements Euromonitor International
6 INTRODUCTION Protein in Passport Consumer Health 6 Consumer Health Vitamins and Dietary Supplements Weight Management Sports Nutrition Supplement Nutrition Drinks Dietary Supplements Meal Replacement Slimming Sports Nutrition Protein Products Protein Supplements Weight Loss Supplements Sports Protein Powder Sports Protein RTD Sports Protein Bars Euromonitor International
7 INTRODUCTION Global sales of protein-centric consumer health categories 7 10,000 Global Sales of Relevant Consumer Health Categories, ,000 8,000 7,000 US$ million, rsp 6,000 5,000 4,000 3,000 2,000 1,000 0 Sports Protein Products Meal Replacement Slimming Protein Supplements Supplement Nutrition Drinks Euromonitor International
8 INTRODUCTION PROTEIN IN THE PASSPORT UNIVERSE TRENDS IN FORMULATION CONCLUSION
9 PROTEIN IN THE PASSPORT UNIVERSE Research methodology for Passport Nutrition 9 Tracks macronutrient intake through packaged foods and beverages Does not include fresh foods
10 PROTEIN IN THE PASSPORT UNIVERSE Stark consumption discrepancies by market 10 Protein consumption through packaged foods and beverages varies starkly by country Global Protein Purchases by Country Finland Turkey Northern Europeans are among the highest protein consumers, Southeast Asians among the lowest Germany Sweden Netherlands The traditional income-consumption relationship does not necessarily hold true, as local dining habits and fresh food consumption play a major role Indonesia Thailand Vietnam Philippines India Grams per capita per day 60 Note: * Combined grams of protein per capita per day consumed through packaged foods and beverages
11 PROTEIN IN THE PASSPORT UNIVERSE Bakery and dairy drive protein consumption 11 Bakery products contribute the largest portion of daily protein consumption through packaged foods/beverages 6 Global Protein Purchases by Category, Dried processed foods and sweet and savoury snacks were the fastest-growing contributors Packaged baby food is a major contributor to protein intake for the under-3 population Grams per capita per day Bakery Dairy Dried Chilled Frozen Processed Processed Processed 2010 Food Food Food 2015
12 PROTEIN IN THE PASSPORT UNIVERSE Sports nutrition protein products 12 Protein is the bedrock of sports nutrition. Sports protein products generated 82% of global category sales in 2015 The category s strong growth has been driven both by increasing concern over fitness and evolving health claims Sports protein RTD was the fastest-growing format since 2010, aided by novelty and its convenience factor
13 PROTEIN IN THE PASSPORT UNIVERSE Sports nutrition protein products major markets 13 The United States generates almost 70% of sports protein product sales globally Commonwealth countries are major consumers of the products, while Scandinavians have high per household consumption Market sizes and per household consumption show interest divergences on market-by-market basis US$ million, rsp Leading Sports Nutrition Protein Products Markets* by Value Sales 2015/ Note: * Outside the US
14 PROTEIN IN THE PASSPORT UNIVERSE Vitamins and dietary supplements protein supplements 14 Protein supplements and supplement nutrition drinks have both witnessed strong growth in the review period Both categories appeal to a wider consumer base than traditional sports nutrition protein products Filling nutrient gaps (imagined or otherwise) is still a key position, but guilt-free snacking and general health are strong benefits
15 PROTEIN IN THE PASSPORT UNIVERSE VDS protein products major markets 15 Protein supplements were one of the fastest-growing VDS categories in the world from 2010 to 2015 China is the world s largest protein supplements market, and at US$1.1 billion, nearly double the size of the US Supplement nutrition drinks are most popular in the US, but Asia Pacific is expected to drive growth moving forward US$ million, rsp US$ million, rsp 1,400 1,200 1, ,500 1, Top Protein Supplements Markets by Sales, 2015/ China USA India Mexico South Korea Top Supplement Nutrition Drinks Markets by Sales, 2015/2020 USA India Canada Japan Vietnam
16 PROTEIN IN THE PASSPORT UNIVERSE Weight management: Meal replacement slimming built on protein 16 Protein has benefitted from the low-carb, high-protein movement of the mid-2000 s to become a key ingredient in weight management products Most commercial meal replacement slimming products are essentially vitamin and mineral-enriched protein powders Protein products with added weight loss ingredients could help the weight loss supplements market that has struggled globally
17 PROTEIN IN THE PASSPORT UNIVERSE Meal replacement slimming s major markets 17 The US dominates the global weight management market, accounting for 32% of global value sales China is the world s second largest market, and is expected to dominate global growth over Strong growth expected in a handful of both developed and developing markets US$ million, rsp 3,000 2,500 2,000 1,500 1, Top Meal Replacement Slimming Markets by Value Sales,
18 THANK YOU FOR LISTENING Chris Schmidt Consumer Health Industry Analyst
19 APPENDIX Product definitions 19 Protein Supplements (Vitamins and Dietary Supplements) This product is a nutritional supplement, different from sports nutrition. It is intended to compensate for low protein consumption. These protein supplements are specifically labelled as nutritional supplements and may be available in the formats of powder, readyto-drink, mini-drink, chews, jellies or oral dissolving strips. Supplement Nutrition Drinks (Vitamins and Dietary Supplements) Drinks marketed as food substitutes that can even replace a meal, but they are not marketed as a meal replacement slimming product. In recent years, these products have no longer been sold exclusively as food for people experiencing health problems; rather they are being marketed as a nutritional supplement to fill nutritional gaps. These also include nutritional drinks for diabetics. It excludes medical nutrition enteral and parenteral. Meal Replacement Slimming (Weight Management) Defined as commercial dietetic foods and beverages especially formulated and marketed as being suitable for individuals who want to lose or control their weight. These products are nutritionally fortified, often calorie-restricted products, and high in protein content, designed to help dieters achieve a calorie-restricted diet without sacrificing nutritional requirements. They are consumed as a replacement for a meal or as a nutritional complement. Product types include RTD shakes, powders, soup and bars. Calorie-reduced ready meals which are not nutritionally fortified, eg Weight Watchers ready meals, are not included.
20 APPENDIX Product definitions continued 20 Sports Protein Powder (SN) These products are marketed as sports nutrition or bodybuilding supplements, and are typically made from whey, soy, egg proteins or other plant-based proteins, such as from rice or peas. Can be made into a drink or mixed with food, giving a minimum of 20g of protein per serving. Excludes protein supplements for daily nutrition complement and not targeted at serious bodybuilders and athletes, which are tracked as protein supplements under dietary supplements. Sports Protein RTD (SN) Ready-to-drink beverage or shake made with high protein content (20g or more per serving). Used to aid in sports activities, especially bodybuilding. Includes variants under the Muscle Milk concept. Excludes protein shakes for weight loss, usually tracked under meal replacement slimming (weight management category). Excludes protein supplements in powder and RTD forms marketed as a nutritional supplement for wellbeing and not for fitness or sports. Sports Protein Bars (Sports Nutrition) Bars with or more than 20g of protein per serving which are specifically positioned for sports are included here. Bars with less than 20g of protein per serving are tracked in packaged food s energy and nutrition bars category. Bars high in protein 20g+ and not positioned for sports are excluded.
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