Key food and health trends and what they mean for free-from

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1 Key food and health trends and what they mean for free-from New Nutrition Business Presentation

2 Who we are Founded in 1995, New Nutrition Business is the world s number 1 provider of strategic and market insights into the business of food, nutrition and health From global giants to start-ups, our clients include the world s most innovative food, beverage and ingredients companies. We interview more than 500 senior executives, worldwide, in foods, beverages and ingredients every year, giving us an informed, first-hand, global view of what works, what doesn t work - and why. New Nutrition Business 2

3 What makes a strong trend? Many things are trends. For us a Key Trend is one that: Drives growth Will endure Successful brands and ingredients are usually connected to multiple trends US remains by far the largest retail market for seaweed snacks with retail sales of over $250 million (and growing). New Nutrition Business

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5 Healthy eating has become mainstream, and has expanded into new categories Healthy food now means different things to different people 2000s special food 2017 real food New Nutrition Business 5

6 The evolution of free from foods Create products that are safe to eat for people with serious health conditions related to food intolerances Medicalised foods I II III Improve the taste and acceptability Foods that people without a diagnosed health concern may also choose to eat Naturally freefrom and clean label? Ordinary foods New Nutrition Business

7 The consumer for health and how companies are responding TECHNOLOGY CONSUMERS LIFESTYLE CONSUMERS MASS MARKET CONSUMERS A Key Success factor is managing senior management expectations about time to break-even and time to evolve into higher volume markets. Examples of print and online adverts High New Nutrition Business Consumer Commitment Low 7

8 There is a driver behind all trends New Nutrition Business

9 Connecting to naturally functional is the strongest foundation for success Naturally Functional is behind the success of almonds, Greek yoghurt, coconut water, olive oil, blueberries High calorie foods which are healthy are now accepted by consumers because naturally healthy beats calories Almonds: New Nutrition 600kcal/100g Business Olive oil: 820kcal/100ml Flaxseeds: 530kcal/100g 9

10 For consumers natural is a strong positive Natural can simply mean fewer and simpler ingredients: such as foods that are free-from artificial colours, preservatives or additives. People are looking for natural and I think you can say now that natural is the new functional. Source: Philipp Siebrecht, group brand manager, Emmi Schweiz Clever marketing of a 5 ingredient natural message helped make Haagen-Dazs five its most-successful marketing campaign ever. With a positioning based on clean label and naturally healthy Daisy Dairy has taken No. 1 position in the U.S. sour-cream market, with 40% share (Nielsen), and 388m in sales, up from just 15% 10 years ago. New Nutrition Business 10

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12 A fundamental shift in how people look at their plates it s not about replacing meat, it s about broadening the healthy eating repertoire. New Nutrition Business 12

13 Plant-based foods are at the heart of strategy Plant-based foods are on the agenda of almost every company: 2016 was the year when plant-based foods dominated strategy, with both Danone and Coca-Cola making acquisitions that took them into the arena. And they will drive strategy for the next five years. Whatever category you are in, plant-based foods presents a wealth of opportunities for large companies and start-ups alike, for foodservice and in branded foods. Vegetable swaps are more than a fad a fundamental shift is underway in how people look at their plates. -Jordan Greenberg, vice president, Green Giant New Nutrition Business 13

14 Ingredient callout: Cauliflower New Nutrition Business 14

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16 Frequency of snacking has increased Over the last decade there has been a 44% increase in people having at least 3 snacks per day in the US In Europe, the UK is where the snack frequency is gets higher closer to the US average. New Nutrition Business 16

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18 How can I make this even more convenient? New Nutrition Business

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20 Bad carbs idea is hitting some categories, and a hierarchy is starting to emerge US breakfast cereal sales fell by -2.8% in 2013, - 4.5% in 2014, and 6.8% in UK breakfast cereal market volume fell -5.3% and value -4.9%. Big brands fell most! Cheerios sales were down - 9.8% in the same period. White bread in particular seems to be seen as the worst option health wise. Artisan white breads rate slightly higher, but not as highly as wholegrain. Development Director, large European bread manufacturer White bread = bad, non white//wholemeal bread = good is a message which has got through to most consumers, although they don t necessarily act on it. Professor, cereals research institute Popular diet advice influences consumers beliefs on carbs New Nutrition Business 20

21 Confusion and churn But consumers are still eating carbs they are just taking a more balanced approach to them Pasta made from beetroot is available Indian online supermarket Big Basket. Adding vegetables like carrots Mainstream and zucchini to breakfast supermarket Tesco in porridges is now suggested UK offers butternut on many lifestyle blogs and squash and zucchini recipes websites New Nutrition Business noodles 21

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23 Sportification is happening beyond food tourism, hobbies and even fashion are all ridding the sportification wave CNBC calls CrossFit the world s biggest fitness trend. There are now more CrossFit gyms than there is Starbucks cafes in the US. Health and Fitness Travel, based in the UK and Australia, is a wellness travel company that specialises in creating exceptional healthy holidays around the world. New Nutrition Business

24 Rather than sports nutrition going mainstream, the bigger trend is regular food to be adopted by sports people. Beetroot Beet It went from a start-up to a $10m business in six years. Cakes Soreen repositioned as a sports product and sales increased 82% in 4 years. New Nutrition Business 24

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26 Feel the benefit is key to success Battling bloating, an everyday issue, with an easy feel the benefit In research women describe the problem in a variety of ways, of which the most common include: Feeling fat Feeling heavy Feeling like there s a balloon inflating inside me Lactose and gluten free products launched in Asia* YTD 2016 *Countries included: China, Hong Kong, Japan, Malaysia, Thailand and Indonesia. New Nutrition Business Source: GNPD Mintel (2016). Claims used: Low/No Lactose, Gluten Free. 26

27 The field of digestive health, like many others, is fragmenting and new digestive health products, in new categories, have everything to play for. The emergence a few successful probiotic juices such as Proviva in Sweden as well as fermented drinks such as Kevita, shows consumers are becoming more open to probiotic benefits from non-dairy sources. New Nutrition Business

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29 Inflammation is at Day 1 Inflammation is a normal response from the human body to keep its normal state under control. It is part of the body s healing response to infections or injuries. But inflammation can affect several pathways in the body and result in illness and this is becoming a focus of consumer concern. 1. A wealth of naturally functional food ingredients (so no need for health claims). 2. Growing body of science. 3. Several biomarkers health halo ingredient to drive sales. New Nutrition Business

30 Turmeric is one of the flagship ingredients for inflammation Google searches for turmeric in the US, from 2010 until 2017: In the UK, upscale retailer Waitrose has launched turmeric yogurts nationally. German lifestyle juice brand Antidote has carrot, orange, lemon and turmeric juice. It's yoga in a bottle. In ayurvedic medicine, turmeric is considered the spice of life. New Nutrition Business In Australia turmeric lattes are widely available in cafes in major cities and home mixes can be found in mainstream supermarkets. 30

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32 Rehabilitation of fat + Great fall of sugar The 30 years orthodoxy of fat is bad means that it could be decades before consumers fully embrace the opposite message. New Nutrition Business 32

33 Consumers can forgive sugar if the product is natural or delivers a benefit like energy! No added sugar Contains four times less sugar than the typical coconut water consumers are forgiving of sugar in honestly indulgent categories Our research found that people have learnt that sugar is bad - but they don t often act on it. They are very confused about what sugars are natural cane sugar is seen as healthy! - Executive, biscuit brand New Nutrition Business 33

34 Thank you! Visit us at: Read our blog: blog.new-nutrition.com Follow us on For more information please contact Allene Bruce New Nutrition Business