Market Trends and Opportunities for Functional Dairy Beverages. Ranjan Sharma.
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1 Market Trends and Opportunities for Functional Dairy Beverages Ranjan Sharma 1
2 Outlines Introduction and background Current market trends in functional dairy beverages Opportunities & strategies Challenges Conclusions 2
3 Introduction and background 3 Resources for market intelligence and trends Food specific New Nutrition Business Novis e-newsletters Nutritional Business Journal Food Technology magazine Functional Foods and Nutraceuticals magazine Just-Food/Just Drinks.com Health Focus Strategy Others. Food inclusive Nutraceuticals World magazine Mintel (e.g. GNPD database) Market research companies (Datamonitor, Euromonitor, BCC, Market Research, etc.)
4 Introduction Resources for market intelligence and trends Food company Websites Media releases Annual reports Other resources Other media Web sites (newspapers, TV, Research Journals, etc. Trade journals Company profiles (e.g. IBISWorld, Hoovers, etc.) News feeds (e.g. RSS feeds) 4
5 Introduction There is a massive amount of information and often confusing for manufacturers and consumers Nutritional and clinical studies are abundant and highly relevant, but can be biased and inconclusive There are a number of food fads that affect the whole food value chain E.g. low-carb is OUT and low-gi is IN 5
6 Consumer and market trends New Nutrition Business* 1. Health 2. Intrinsic health 3. Good foods, bad foods 4. Good carbs, bad carbs 5. Personalised nutrition 6. Bars and beverages 7. Daily dose and packaging innovation 8. Out of supplement aisle 9. Asia for inspiration 10. Kids nutrition crisis Food Technology** 1. Quick fix 2. Drive & Go 3. Inherently healthy 4. Premium foods 5. Farm-friendly, organic, natural 6. Ethnic flavours 7. Grazing 8. Low or no claims 9. Self medication with food 10. Global brands USDA*** 1. Pleasure 2. Convenience 3. Health 4. Well being 5. Ethics 6 *New Nutrition Business, Dec-Jan 2005 ** Food Technology, April 2005 ***USDA GAIN Report E35067 Apr 05
7 Summary Three most identified trends/drivers for functional foods innovations Pleasure Convenience Health Each of these drivers require in-depth analysis and compliance to succeed in the market 7
8 Summary - Three key drivers/trends Taste Flavour Colour Texture Pleasure Convenience Packaging Pack size Availability (Time/place) 8 Health Nutrition Low claims (fat, calorie, sod., carb etc) High claim (e.g, Ca, fibre, omega 3, etc) Physiological functional claim
9 Global functional foods market Global functional foods & beverage sales, 2003 Beverages Dairy Bakery & snacks Sales 2003, US$ billion Growth % (CAGR ) Euromonitor,
10 Functional food major markets, 2003 Global functional foods & beverage sales US$, billion Japan USA UK Germany Italy France Brazil Euromonitor,
11 Global functional foods by functionality Global functional foods by functionality % 9% Sport & enery 10% 18% 42% Added vitamins, minerals or supplements Promotes intestinal health or digestion Added calcium Lowers cholesterol 19% Other Euromonitor,
12 US functional foods Category Sports & energy drinks Breads & grains Snacks & bars Juices Dairy & dairy alternatives Tea & coffee drinks All other Total Size (US $ billions) Growth rate (% vs 2002) Nutrition Business Journal
13 Global functional dairy products Functional dairy products - Market share % 1% Liquid & powder milk 48% Yogurt & chilled desserts Oils & fats 37% Cheese Euromonitor,
14 Dairy companies of today! 14
15 Trends & innovations in the dairy beverage market Pleasure & indulgence Lifestyle, consumer marketing beverages Functional, health and wellness beverages Adult medical/complete nutrition Sports & performance 15
16 Pleasure & indulgence Flavoured milk Milk-coffee drink Milk-tea (Chai Latte) 16
17 Flavoured milk trends recognised confectionery brands 17
18 Flavoured milk targeting kids Cadbury Swerve (Coca-cola) Bubble gum Flavour carbonated (Mac Farms) 18 Concentrated milk (Regilait, Fr)
19 Dairy-coffee beverages Nestle, Japan Caffe Latte (Emmi, Swiss) Namyang (Korea) Meiji, Japan 19 Cappucino (Starbucks/Pepsico)
20 Dairy-tea beverages Starbucks Oregon Chai Lipton Chai 20
21 Lifestyles & consumer marketing beverages Low-fat Fat-free Low-carb Organic GM-free 21
22 Low-fat milk Low-fat, lactose free 22
23 Fat-free milk 23
24 Low-carb dairy beverage 24
25 Organic dairy beverages Paul s, Australia Organic Valley, US Rachel s UK Candia, Fr 25
26 GM free milk UK Consumers Willing to Pay More for rbgh- Free Milk (genetically engineered growth hormone rbst (recombinant bovine somatotropin). Tiroler, Austria 26
27 Functional, health and wellness beverages Fortified with Minerals (Calcium, Magnesium, Iron) Omega-3 fatty acids Conjugated linoleic acids (CLAs) Phytosterol Lactoferrin Peptides Milk rich in melatonin Probiotic yoghurt drinks 27
28 Fortified milk - calcium 28
29 Fortified milk Mg & Iron Mg (Candia, Fr) Mg (Lactalis, Fr) Fe 29 Fe (Meiji Love)
30 Fortified milk - Omega 3 fatty acids Candia, France Anchor, NZ Natrel, Canada PB Foods, Australia Nestle, Malaysia 30
31 Fortified milk - Omega 3 fatty acids Neilson, Canada Dawn, Ireland St Ivel advance (Dairy Crest UK) 31
32 Beverages with dairy bioactives CPP and IgG rich milk 32
33 Fortified milk Conjugated Linoleic Acid (CLA) NaturLinea, Spain 33
34 Fermented milk peptides Peptides (Valio) 34
35 Milk with phytosterol Phytosterol (Unilever) 35
36 Melatonin rich milk UK Finland UK 36
37 Trends in functional yoghurt drinks Probiotic Yoghurt smoothie Lactoferrin Plant extracts Antioxidants Fibre Peptides 37
38 Probiotic drinking yoghurt revolution
39 39 As reported by Group Danone Health Commitment and Fact Book, March 2005
40 40 As reported by Group Danone Health Commitment and Fact Book, March 2005
41 41
42 Probiotic drinking yoghurt National Foods, Australia Danone Nestle, Japan Emmi, Italy 42
43 Probiotic innovation LifeTop Cap (Biogaia, Sweden) LifeTop Straw (Biogaia, Sweden) 43
44 Drinking yoghurt with phytosterols Blue Bunny (US) Benecol (UK) Emmi Benecol (Valio) 44 Flora Proactiv (Unilever)
45 Innovations in drinking yogurt Lecithin Yoghurt drink (Alpenmilch Saltzberg) Bonne Nuit with plant Extracts (Novandie, Fr) Aloe Vera (Emmi) 45
46 Innovations in drinking yoghurt With Mg (Danone, Belgium) With green tea (Morinaga, Japan) Black fruit pulp (Poland) 46
47 Yogurt drinks with lactoferrin With lactoferrin (Morinaga) With L.casei and Lactoferrin (Kyodo Milk) 47
48 Innovations in drinking yogurt 48 With protein, Vit. & minerals (Glanbia, Ireland) With protein, Fibre, vit & minerals (General Mills, US) Probiotics with cranberry juice Ocean Spray, US
49 Adult medical/complete nutritional beverages Meal replacement nutritional supplement Disease-specific beverages 49
50 Complete nutritional beverages pharmaceuticals to consumers 50
51 Complete nutritional beverages Novartis Ross Abbott Novartis Power Bar Pria 51 Nestle
52 Complete nutrition - liquid breakfast Aussie Bodies, AU Sanitarium, AU Meadow Fresh, NZ 52 Carnation Junior, Nestle
53 Sports and performance Sports beverages Whey-based drinks 53
54 Sports/performance beverages 54
55 Opportunities and strategies Analyse market and meet consumer needs and demands Growing affluence in developing world Increased affordability Lifestyle diseases in developed world Target Obesity opens up markets for CVD, diabetes, cancers etc. Aging population Dairy from birth Globalisation Consumer awareness and self medication Individualised nutrition Nutragenomics 55
56 Opportunities and strategies Dairy bioactives not yet fully exploited in beverages Peptides, immune and growth factors, lipids, etc.) Looking beyond dairy for bioactives Forging partnerships with non-dairy bioactive ingredient companies Developing novel milk beverages Clear milk beverages from skim milk or proteins for wider acceptability 56
57 Opportunities and strategies Promoting dairy as a preferred carrier for bioactive ingredients General acceptability Flavour Inherent nutrition Convenience 57
58 Challenges Lack of knowledge/understanding Food technologist/scientist has limited understanding of human physiology Nutritionist/health professional does not take into consideration of intricacies of food formulations Conflicting and biased nutritional studies Challenges of market fads Communication gap Among food technologist, health professional, nutritionist, marketer Regulatory hurdles Working along regulators or working around regulations? 58
59 Challenges Formulation challenges Non-dairy ingredients incompatible in dairy environment stability issues Ingredient interactions Efficacy issues Safety issues Innovation challenge Low R&D investment (Australia 0.3% of TO vs % worldwide) Risk averse nature of food companies not leading from front? Where is the IP? Companies wanting to have immediate ROI 59
60 Thank you! OzScientific offers independent, costeffective and innovative solutions for functional & bioactive ingredients Business intelligence: Market intelligence, Strategic analysis and Innovation management Ingredient innovations: Concept to commercialisation Ingredient knowledge: Desktop scientific and technical reviews Industry intelligence on functional foods (free newsletter!) OzScientific TM Weekly Digest Australasian functional food resources (under development) 60
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