Active nutrition: Protein and its consumer context
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1 Active nutrition: Protein and its consumer context Balancing consumer needs for dairy that is both natural and fortified Dr. Satish Lele Presented to Protein Now Forum April 2017 Agriculture Nutrition
2 Key Focus areas under Agriculture and Nutrition The agriculture and nutrition practice approaches the industry from five major segments Our Industry Practices Visionary Sciences Agriculture and Nutrition Key Focus Areas Nutraceuticals Animal Feed Food Ingredients Agriculture End Product Research Automotive & Transportation Aerospace & Defense Environmental & Building Technologies Energy & Power Systems Healthcare Industrial Automation & Process Control Information & Communication Technologies Electronics and Security Measurement and Instrumentation Omega Fatty Acids Direct fed microbials / Prebiotics Protein Ingredients Soy based ingredients Whey Protein & Casienates Vitamin Premixes Botanicals Other Functional Ingredients Vitamin Premix Growth Promoters Enzymes Amino Acids Probiotics Dietary Fibers Coccidiostats Preservatives Other Feed additives Emulsifiers Colors Preservatives Flavors & Fragrance Antimicrobials Enzymes Anticoagulants Sweeteners Starch Stabilizers Anti caking agents Acid Regulators Moisture retention agents Crop production Crop management Cash crops Food crops Plantation management Sustainable agricultural practices Farm to Fork efficiency support Processed Foods & Snacks Fresh & Frozen Foods Dietary Supplements Functional Foods & Beverages Animal Feed & Nutrition Morning Goods / RTE / RTF / RTC Cooking aids / Prepared Convenience & staple foods/instant mix Oils & Fats 2 2
3 Size of Impacted Population Goal: Keep people healthy longer Goal: Manage or mitigate risk Goal: Diagnose and reduce treatment delay Goal: Move to more interaction and self-management Goal: Manage Goal: Informed decisions The nutraceutical story: Healthcare costs driving demand for food as nutrition If current trends hold by 2050, healthcare spending will double, claiming 20-30% of GDP for some economies Prevention/Wellness $$ Track, Predict, Intervene, Manage Disease/Care Management Non communicable diseases have witnessed a 46% growth in mortality rates since 2000 Lifestyle diseases have emerged as the key global cause of death Healthy / Worried Well At Risk Undiagnosed Chronically Ill Managed Chronically Ill Unmanaged End of Life Heart diseases cause 27% of global disease mortality 3 3
4 Asia Pacific continues to dominate the global nutraceutical market in 2016 Nutraceuticals are segmented as dietary supplements and functional food and beverages Nutraceutical Market: Split by Region, (World), 2016 Western Europe 23% Asia Pacific 37% Rest of the North America 24% World 16% Market Stage Growth Market Revenues $175 B (2016) Market Size at End of Forecast Period $220 B (2020) 5-year Forecast Market Growth Rate 6.5% (CAGR) Global Market, 2016 US, Europe and Japan are the largest markets, while India, China and Brazil are the key growth geographies. Decreasing Stable Increasing Note: All figures are rounded. The base year is Source: Frost & Sullivan analysis. 4 4
5 Demographic Nutrition From condition to demographic to active nutrition Nutraceuticals initially focused on condition nutrition but have increasingly moved towards demographic nutrition over the last 5 years Nutraceutical Market: Split by Product Type, (World), 2015 Dietary Supplement, 31% Function al Beverag es, 36% Functional Foods, 33% Condition Nutrition Heart Health Eye Health Digestive health Cognitive health etc. Active as a lifestyle choice Maternal Health Geriatric Health Kids Health Sports nutrition Growing importance of products focused as an essential nutritional aid for new mothers Focus on ageing nutrition products to provide supplementation against osteoporosis and improving metabolic functions Addressing developmental concerns in bone &joint health and focusing on the Asian micronutrient deficiency challenge Addressing demands for supplemental nutrition across an active lifestyle focusing on providing healthy energy sources for consumers Active Nutrition: A form of nutrition that involves a lifestyle that provides the body with optimal physical and mental stimuli via food 5 5
6 Active Nutrition Key concerns Focus on Freedom foods- The convergence of Green, Safe, Healthy and Ethical Attributes Kosher Halal Grass Fed/Free Range Livestock products Fair Trade Healthy Minimization of unhealthy food additives Inclusion of value-added functional ingredients Dietary food supplements Portion controlled serving sizes Ethical Freedom Food Safe Degradable after product use Renewable feed stock Minimal by-products Energy efficient Maximum pollutant monitoring during the production process Green Safe design Disease/Hazard Free Avoidance of chemical derivatives Use of safer or no solvents Source: Frost & Sullivan analysis. 6 6
7 Evolution of the protein consumer Asian consumers are emotional shoppers and this is particularly true in the case of protein fortification Protein and the SEA Consumer: Reflect local concerns and consumer health requirements: specifications should mirror market need. Consumers buy concepts not products! 7 7
8 Conclusions Lessons & Learning Competitive landscapes are changing rapidly for the dairy sector and providing emerging opportunities Focus on what makes consumers tick Identify consumer triggers and messaging in each market that will define the difference between mind and market share Respect the local story and assess what makes consumers tick : where does the brand fit in their daily life? Understand that competition is changing stay relevant!! More and more food and pharmaceutical manufacturers will enter the beverage market changing competition and rules of the road The key nutrition areas will drive scope for collaboration with non-traditional supplement manufacturers Embrace the tall poppy! Most developing consumers want a story of affluence attached to a premium product tailor the story to match this need 8 8
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