Meeting consumer expectations: new product development and future opportunities for dairy, lactose and gluten-free Anne Wong-Erven, Senior Consultant 18 th November 2015 Food Matters Live, London STRATEGY & MANAGEMENT MERGERS & ACQUISITIONS COMMERCIAL & MARKET OPERATIONS & TECHNICAL WATER & ENVIRONMENT PACKAGING & DISTRIBUTION
What we will see today The current situation What is driving demand for these products today? New product development for dairy, lactose, and gluten-free Summary and future outlook 2
The situation Increased energy Weight management Healthier diet 3
Consumer expectations 4
lactose-free 5
The situation Lactose intolerance worldwide 6
The situation International dairy market Milk/yogurt/cheese consumption in 33 countries 202 200 198 000 tonnes 197 +1.7% 200 196 +1.6% 194 193 192 190 188 191 +1.2% 7 186 2008 2009 2010 2011
Lactose-free misconceptions Gastrointestinal problems mistakenly self-diagnosed as lactose-intolerance Lactose intolerance is the same as milk allergy Lactose intolerant should stop dairy consumption Lactose free not real dairy So some lactose intolerant may miss out on dairy nutrients such as calcium, phosphorus, vitamin D and proteins. 8
Misconception remedy Education To dispel myths To ensure consumers understand lactose free dairy benefits Lactose free does not mean avoid dairy 9
Lactose-free trends Widening product portfolio Co-existence with dairy Rising consumer awareness Self diagnosis boosting demand Better tasting products Fortification New categories Lower fat and sugar using all-natural sweeteners Packaging range extension 10
Lactose-free brand leaders 11
NPD: Lactose-free milk 12
NPD: Lactose-free drinks 13
NPD: Lactose-free yogurt 14
NPD: Lactose-free yogurt drinks 15
NPD: Lactose-free cream 16
NPD: Lactose-free butter 17
NPD: Lactose-free cheese 18
NPD: Lactose-free desserts and confectionery 19
Dairy-free alternatives Soy Cereal rice, oats, barley Nuts almonds, cashew, coconut, hazelnut, walnut Plant - sunflower 20
Dairy-free innovation Fortification with vitamins A, B2, B12, D2, E Fortification with minerals Mainly calcium Clean label Lactose free, dairy free, cholesterol free, GMO free, additive free, preservative free Organic ingredients 21
Dairy-free trends Ever broader choice beyond soy Soy losing halo health, genetic modification Almond rising high calcium, high antioxidants, low calorie, no saturated fat, vitamin E, vegan Cereals and nuts appearing Blends beginning Range extensions from milk to yogurt, desserts, ice cream Fortification with vitamins/minerals Clean label emphasis 22
Dairy-free brand leaders 23
NPD: Dairy-free milk alternatives 24
NPD: Dairy-free drinks 25
NPD: Dairy-free desserts 26
NPD: Dairy-free yogurt 27
NPD: Dairy-free cheese 28
Gluten-free 29
The situation Glutenfree Coeliac affects up to 5% of people globally 30
Gluten-free overview Glutenfree Consumer base coeliac, gluten sensitivity, lifestyle choice Present in foods that are difficult to avoid day to day Bakery products, pizza/pasta, cereals/snacks, baby foods, ready meals Less obvious presence confectionary, sausages, canned soups, beer 31
Sector trends Glutenfree Bakery holds approximately 65% of the market share by value Pasta, baby food and ready meals on the rise High demand for breakfast cereals, snacks, soups and sauces Foods free from more than one allergen such as wheat, nut, dairy + gluten-free More globally recognised brands are joining this trend Rise in own label 32
Global players Glutenfree 33
NPD: Bakery Glutenfree 34
NPD: Cereal Glutenfree 35
NPD: Pasta Glutenfree 36
NPD: Sauces Glutenfree 37
NPD: Baby food Glutenfree 38
NPD: Ready meals Glutenfree 39
NPD: Snacks and confectionery Glutenfree 40
NPD: Others Glutenfree 41
Future outlook Glutenfree Market is currently lead by consumption in the US in terms of both volume and value Europe greatest potential for growth in the next 5 years, with France and Italy driving this growth Established markets in the United States and Australia will continue upward trend Opportunities for growth in Asia-Pacific region 42
Future outlook Glutenfree Innovative use of supergrains will continue to drive new product development quinoa (gluten-free and high protein) polenta (gluten and wheat free) Bakery will drive growth in new markets Well established markets will see further expansion into niche food sectors Organics Children s foods Expansion in branded and own label Fortification with vitamins/minerals is an emerging trend 43
For more information on this presentation or on any of Zenith s services, please contact: Anne Wong-Erven awong-erven@.com Or telephone Zenith s head office on +44 (0)1225 327900. www..com www.globaldrinks.com www.functionaldrinksnews.com STRATEGY & MANAGEMENT MERGERS & ACQUISITIONS COMMERCIAL & MARKET OPERATIONS & TECHNICAL WATER & ENVIRONMENT PACKAGING & DISTRIBUTION