Digestive Health Sponsored by:
Highlighting the key trends and future directions for innovation in the digestive health space Speaker: Robin Wyers, Chief Editor, Innova Market Insights (The Netherlands)
Thriving on Gut Feeling: Digestive Health NPD Vitafoods Asia 2018 September 2018
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Digestive Health Vitafoods Asia 2018 TOPICS OF TODAY Good for the gut Fibers & prebiotics for a healthy gut Focus on probiotics The rise of fermented foods Key takeaways ABOUT INNOVA MARKET INSIGHTS Innova Market Insights is a leading market research company, serving our customers with our unique and powerful Innova Database: the world s largest database for the food industry, used by leading companies in food ingredients and manufacturing for future success in the dynamic FMCG/CPG industry. MEET US AT VITAFOODS ASIA STAND #123 Meet the experts of Innova Market Insights at Vitafoods Asia 5 5
Good for the gut
Growing awareness around digestive health in China in India 1 in 4 US consumers indicate digestive health is an almost daily problem 7 Source: Innova Market Insights consumer survey, 2017
Indexed # of product launches Digestive health gains ground in new product development 160 140 120 100 80 60 Indexed number of new food & beverage launches tracked with a digestive health claim (Asia-Pacific*, Index 2013=100) 8 8 40 20 0 2013 2017 *includes Asia and Australasia Tuckers Natural Multifibre Snacks With Chia, Linseed And Freekeh Malaysia, Apr 2018 CLAIMS Tucker's natural multi-fiber snacks are made with goodness of insoluble and soluble natural plant-based fibers which, combined with a healthy diet, can support improved digestion and overall vitality and well being. 11% daily recommended fiber intake.
Digestive health promoted in a diverse range of categories Top categories as percentage (%) of new food & beverages launches tracked with digestive health claims (Asia-Pacific*, 2017) CAGR 2013-2017 Baby & Toddlers 34% +9% Bakery 10% +3% Dairy 9% +11% Sports Nutrition Sauces and Seasonings 8% 8% 0% 20% 40% % of new product launches +6% +9% Nestle Cerelac Stage 4 Infant Cereal With Milk From 12 Months: Rice And Potato With Chicken Bangladesh, Jun 2018 CLAIMS CHE - digestive support: CHE process breaks carbohydrates into smaller and easier to digest components. Bifidus BL helps strengthen babies' natural defenses. Bifidus BL (BB12) is a probiotic which helps to maintain a healthy intestinal gut flora for your baby. 9 9 *includes Asia and Australasia
Ways to address digestive health FIBERS AND PREBIOTICS CAGR growth(asia-pacific*) 2013-2017: Fiber and Prebiotics +9% PROBIOTICS CAGR growth(asia-pacific*) 2013-2017: Probiotics +9% 10 10 *includes Asia and Australasia
Fibers and prebiotics for a healthy gut
Indexed # of product launches High consumer demand for fiber, industry responds PLACING IMPORTANCE ON FIBER HIGH IN FIBER TRENDS IN NPD 1 in 4 Chinese consumers consider high in/source of fiber claims an important factor when purchasing breakfast cereals (2017) 250 Indexed number of new food & beverages launches with a high/source of fiber claim (Asia-Pacific*, Index 2013=100) 200 Source: Innova Market Insights consumer survey, 2017 150 Uncle Tobys Cheerios With 4 Whole Grains Australia, Feb 2018 100 50 0 2013 2014 2015 2016 2017 12 12 *includes Asia and Australasia
Indexed # of product launches FDS definition: Fluctuation in ingredients is expected REVITALIZATION OF APPLICATIONS US FDA DEFINES FIBER Indexed number of new food & beverages launches with fiber/prebiotic ingredients (Asia-Pacific*, Index 2013 = 100) 180 160 140 120 100 80 60 40 20 0 CAGR 2013-2017 +9% 2013 2014 2015 2016 2017 VS. 13 13 *includes Asia and Australasia
Traditional fiber-rich categories lead fiber BABY AND TODDLERS DAIRY BAKERY 14 14
Strong growth for fiber and prebiotic applications Fastest growing subcategories for new food & beverages launches tracked with fibers/prebiotics (Asia-Pacific*, CAGR 2013-2017) Milk and Milk Drinks +66% Drinking Yogurt/Fermented +32% Sports Bars +32% Baby Meals +26% Baby Formula/Milk +18% Green N Go Soya Milk Plus Coffee Drink Philippines, Mar 2018 CLAIMS Made from real soybeans. Each bean is carefully selected before extraction to produce high quality soy milk. Contains oat fiber that aids in the digestive system. 15 15 *includes Asia and Australasia
Focus on probiotics
Indexed # of product launches Probiotics serve as a functional ingredient for digestion IMPROVING DIGESTIVE HEALTH PROBIOTIC APPLICATIONS STABILIZE Indexed number of new food & beverages launches tracked with probiotics (Asia-Pacific*, Index 2013 = 100) 150 120 90 60 30 Delivers active cultures 10x more effectively than yogurt! 0 2013 2014 2015 2016 2017 17 17 *includes Asia and Australasia
Top probiotics to target digestive health B. LACTIS IS THE TOP PROBIOTIC FASTEST GROWING PROBIOTICS Top probiotics as percentage (%) of new food & beverages launches tracked with a digestive health claim (Asia-Pacific*, 2017) Bifidobacterium Lactis Other Bifidobacterium 20% 29% Bifidobacterium Animalis +38%** Only Activia contains exclusive probiotic Bifidus ActiRegularis which survive through your stomach and reach the intestines alive. Lactobacillus Acidophilus Lactobacillus Bulgaricus 18% 18% Lactobacillus Rhamnosus +34%** Lactobacillus Rhamnosus 13% Contains Prebiotics (oligosaccharides) and Probiotics (L. Rhamnosus). 18 18 *includes Asia and Australasia **CAGR 2013-2017
Application of probiotics limited to leading categories TOP CATEGORIES FOR APPLICATION Top categories as a percentage (%) of new food & beverages launches with probiotic ingredients (Asia-Pacific*, 2016) 2% 4% LIMITED NPD IN SNACKS AND BAKERY Small digestive biscuit sandwiches with milk cream and lactobacillus 27% 67% Baby & Toddlers Sports Nutrition Dairy Other Ohso probiotic Belgian chocolate by Solgar is packed full of live bacteria good for your digestive system. 19 19 *includes Asia and Australasia
Indexed # of product launches New technological advances enable ambient application PROBIOTIC CONFECTIONERY & SNACKS VEGETABLES ARE NOW ALIVE Indexed number of new confectionery and snack launches with probiotics (Global, Index 2013=100) 200 180 160 140 120 100 80 60 40 20 0 CAGR 2013-2017 +14% 2013 2014 2015 2016 2017 20 20
The rise of fermented foods
22 22 Opportunity for fermented goods amid the natural trend
% of new product launches Baby and toddlers category leads for fermented claims BABY FOOD: 1 IN 7 FERMENTED CLAIMS PREVALENCE OF FERMENTED CLAIMS Top categories as percentage (%) of new food & beverages launches with a fermented claim (Asia-Pacific*, 2017) 16% 14.0% 14% 12% 10% 8% 6% +11% average annual growth of food and beverage launches tracked with a fermented claim (Asia-Pacific*, 2013-2017) 4% 2% 3.5% 3.1% 1.7% 0.9% Cyclops Greek Yogurt With Native NZ Honey New Zealand, Feb 2018 0% Baby & Toddlers Dairy Sports Nutrition Sauces & Soft Drinks Seasonings DESCRIPTION:..The artisan method combines extended fermentation and only natural ingredients, including native NZ honey, for a delicate natural yogurt to enjoy every day 23 23 *includes Asia and Australasia
Fermentation makes its entrance into diverse categories FASTEST GROWING CATEGORIES FERMENTATION USED FOR Fastest growing categories tracked with a fermented claim (Asia-Pacific*, CAGR 2015-2017) process flavor Sauces and Seasonings +83% Cereals +41% Soft Drinks +25% Baby and Toddler +21% Aged and fermented. Contributes to healthy digestion Pretzel sticks with fermented butter flavor 24 24 *includes Asia and Australasia
Indexed # of product launches Fermented beverages are on-trend GROWTH IN FERMENTED DRINKS TRADITIONAL METHODS REINVENTED Indexed number of fermented beverage** launches tracked with probiotics (Asia-Pacific*, Index 2013=100) 300 Skyr Kefir 250 200 150 100 50 +47% Growth 2017 vs. 2016 Lassi 0 2013 2014 2015 2016 2017 25 25 *includes Asia and Australasia ** excluding alcoholic beverages
Indexed # of product launches Kombucha: a growing niche INCREASING NUMBER OF LAUNCHES 400 350 Indexed number of new food & beverages launches tracked with kombucha as an ingredient (Asia-Pacific*, Index 2013=100) GUT HEALTH: TOP CLAIM IN KOMBUCHA 2 in 5 food & beverages launches tracked with kombucha as an ingredient, feature a digestive/gut health claim (Asia-Pacific*, 2017) 300 250 200 150 100 Organic and Raw. Live sparkling probiotic. 50 0 2013 2015 2017 26 26 *includes Asia and Australasia
Key takeaways
Key takeaways Fibers and prebiotics for a healthy gut Fibers and prebiotics efficacy debate. Fiber-rich food innovations thrive. What counts as a dietary fiber is up for debate. Probiotics thrive in Asian baby & toddlers and dairy categories. Non-traditional categories, such as snacks, soft drinks and sports nutrition. Focus on probiotics The rise of fermented foods Consumers seek for more natural goods. Processing technique that also enhances flavor. The baby & toddlers category leads. A revival of traditional fermented drinks. 28 28
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