GLOBAL INDUSTRY OUTLOOK REPORT - Gulfood
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GLOBAL
INDUSTRY
OUTLOOK
REPORT
2018
Contents 01
INTRODUCTION 4
List of Abbreviations 4
Indicators 5
Geographical Coverage 7
EXECUTIVE SUMMARY 11
Industry Growth 12
Foodservice 15
Market Drivers and Trends 16
Market Challenges and Opportunities 18
GLOBAL SOCIAL AND ECONOMIC OUTLOOK 22
Global Demographics Overview 22
Urbanisation vs Population Growth 23
Global Economic Outlook Overview 25
Income and Consumer Expenditure 26
GLOBAL FOOD AND BEVERAGES SECTOR 30
Global Total F&B Industry Overview 30
Global F&B Distribution Landscape 31
Global F&B Industry Overview by Category 34
Global F&B Trends and Drivers 35
Global Consumer Foodservice Footprint 40
3
02 03
COMPOSITION OF F&B INDUSTRIES 44 MEAT & POULTRY 79
Meat & Poultry Industry – At a Glance 79
BEVERAGES 58
From Farmers to Consumers 79
Market Size and Potential 81
Beverages Industry – At a Glance 44 Market Trends and Drivers 82
From Farmers to Consumers 45 Distribution Landscape 84
Market Size and Potential 49 Challenges and Opportunities 85
Market Trends and Drivers 51 Case Study: Beyond Meat 87
Distribution Landscape 53
Challenges and Opportunities 55
Case Study: Uni-President 57 EDIBLE OILS 58
Edible Oils Industry - At a Glance 58
DAIRY 58
From Farmers to Consumers 59
Market Size and Potential 60
Dairy Industry – At a Glance 58 Market Trends and Drivers 62
From Farmers to Consumers 59 Distribution Landscape 63
Market Size and Potential 60 Challenges and Opportunities 64
Market Trends and Drivers 62 Case Study: Wilmar International and The Ethics of Palm Oil 65
Distribution Landscape 63
Challenges and Opportunities 64
Case Study: Chobani Yoghurt 65 POWER BRANDS 80
PULSES, GRAINS & CEREALS 66
APPENDICES 100
Pulses, Grains & Cereals Industry - At a Glance 66
From Farmers to Consumers 66
Category Definitions 100
Market Size and Potential 70
Sources 115
Market Trends and Drivers 72
Distribution Landscape 75
Challenges and Opportunities 76
SOURCES 100
Case Study: Barilla Alimentare 78
5
Introduction
Dubai World Trade Centre (DWTC) “The Company” have commissioned Euromonitor International, an independent
provider of strategic market research, to prepare a market study on the global food and beverage industries.
Euromonitor International
INTRODUCTION
Euromonitor International is an independent provider of strategic market research. We create data and analysis on
thousands of products and services around the world. As independent market researchers, we provide unbiased
historic trends and forecasts for every region, country, category, channel and consumer. Euromonitor’s research
includes qualitative and quantitative-based trade surveying and analysis to support market, competitor and customer
intelligence. Euromonitor was established in 1972 in London and has clients ranging from leading manufacturers and
investment banks to governments and universities.
Research Methodology
The research methodology of Passport, the key source
used for this Report, is based on a core set of research
techniques that include desk research (national
statistics, national and international trade press,
national and international trade associations, industry
study groups and other semi-official sources, company
financials and annual reports, broker reports an online
databases), store audits and trade survey with key
stakeholders across the value chain. Forecast data
provided represents many of the essential conclusions
reached about the current state of the market, how it
works and how it behaves under different macro and
micro conditions.
In addition to Passport, information and prospects set
out in this report have also been sourced from desk
research (such as company websites, trade press) and
trade opinion surveys conducted by Euromonitor with
a sample (19 interviews) of importers/distributors, local
manufacturers, retailers and trade associations within
key industries (soft drinks, hot drinks, dairy, meat and
poultry, edible oils and cereals, pulses and grains).
Trade interviews with the key stakeholders were
conducted between December 2017 and January 2018.
7
List of Abbreviations Indicators
Abbreviation Definition Indicators 2017 Edition Definition
Market Sizing
AMS North and South America
Retail Value RSP: Measured in US Dollars with Historic Fixed
AOA Asia, Oceania and Sub-Saharan Africa
2016 Exchange Rates, Forecast Fixed 2016 Exchange Rates
INTRODUCTION
APAC Asia Pacific
B2B Business to Business
B2C Business to Consumer GDP Gross domestic product is the sum of gross value added by all resident
Bn Billion producers in the economy plus any product taxes and minus any subsidies
BPA Bisphenol A not included in the value of the products. It is calculated without making
BSR Business for Social Responsibility deductions for depreciation of fabricated assets or for depletion and
BULOG Indonesia Logistics Bureau degradation of natural resources. Measures in US Dollars with Historic
Fixed 2016 Exchange Rates, Forecast Fixed 2016 Exchange Rates
CAGR Compound Annual Growth Rate
CS Consumer Spending
CSR Corporate Social Responsibility
Middle Class households The number of households with between 75.0% and 125% of median income.
DNA Deoxyribonucleic acid
EC European Commission
EMENA Europe, Middle East and North Africa Consumer Expenditure Measured in US Dollars with Historic Fixed 2016 Exchange
EMI Euromonitor International Rates, Forecast Fixed 2016 Exchange Rates
EU European Union Consumer expenditure comprises personal expenditure on goods -
F&B Food and Beverage durable, semi-durable and non-durable - and on services in the domestic
FAO Food and Agriculture Organization of the United Nations market, including the imputed rent of owner-occupied dwellings, the
FDA US Food and Drugs Administration administrative costs of general insurance and of life assurance and
GCC Gulf Cooperation Council superannuation schemes. Consumption expenditure in the domestic
market is equal to consumer expenditure by resident households plus
GDP Gross Domestic Product
direct purchases in the domestic market by non-resident households
GMO Genetically Modified organism
and minus direct purchases abroad by resident households.
Horeca Hotel, restaurant and café
IPSO Indonesia Palm Oil Certification
IRRI International Rice Research Institute Consumer Expenditure on Food Measured in US Dollars with Historic Fixed 2016 Exchange
ISCC International Sustainability and Carbon Certification and Non-Alcoholic Beverages Rates, Forecast Fixed 2016 Exchange Rates
Kg Kilogram
MENA Middle East and North Africa region
Mn Million Food products and non-alcoholic beverages
purchased for consumption at home.
MnT Million Tonnes
MSG Monosodium Glutamate
NFC Not From Concentrate Excludes: food products and non-alcoholic beverages sold for immediate
PDO Protected Designation of Origin consumption away from the home by hotels, restaurants, cafés, bars, kiosks,
PET Polyethylene terephthalate street vendors, automatic vending machines, etc. (consumer expenditure on
PGI Protected Geographical Indication catering services); cooked dishes prepared by restaurants for consumption
R&D Research and Development off their premises (consumer expenditure on catering services); cooked
Radio Frequency Identification dishes prepared by catering contractors whether collected by the
RFID
customer or delivered to the customer’s home (consumer expenditure on
RSPO Roundtable on Sustainable Palm Oil
catering services); and products sold specifically as pet foods (consumer
RTD Ready To Drink
expenditure on other recreational items and equipment, gardens and pets).
SRP Sustainable Rice Platform
TFA Tropical Forest Alliance
Tn Trillion
UAE United Arab Emirates
UK United Kingdom
US United States
USD United States Dollar
9
Geographical Coverage
INTRODUCTION
Europe
North
America
Asia Pacific
Middle East
and Africa
Sub-Saharan
Africa
Latin
America
Australasia
Asia Pacific
Australasia
Europe
Latin America
Middle East and North Africa
North America
Sub-Saharan Africa
11
Sub-Saharan
Asia Pacific Europe Australasia Latin America
Africa
Afghanistan Albania Australia Anguilla Angola
American Samoa Andorra New Zealand Antigua Benin
Armenia Austria Argentina Botswana
Azerbaijan Belarus Aruba Burkina Faso
INTRODUCTION
Bangladesh Belgium Bahamas Burundi
Bhutan Bosnia-Herzegovina Barbados Cameroon
Brunei Bulgaria
North America Belize Cape Verde
Cambodia Croatia Bermuda Central African Republic
China Cyprus Bolivia Chad
Fiji Czech Republic Canada Brazil Comoros
French Polynesia Denmark USA British Virgin Islands Congo, Democratic Republic
Guam Estonia Cayman Islands Congo-Brazzaville
Hong Kong, China Finland Chile Côte d’Ivoire
India France Colombia Equatorial Guinea
Indonesia Georgia
Middle East Costa Rica Eritrea
Japan Germany and North Africa Cuba Ethiopia
Kazakhstan Gibraltar Curacao Gabon
Kiribati Greece Algeria Dominica Gambia
Kyrgyzstan Hungary Bahrain Dominican Republic Ghana
Laos Iceland Djibouti Ecuador Guinea
Macau Ireland Egypt El Salvador Guinea-Bissau
Malaysia Italy Iraq French Guiana Kenya
Maldives Kosovo Jordan Grenada Lesotho
Mongolia Latvia Kuwait Guadeloupe Liberia
Myanmar Liechtenstein Lebanon Guatemala Madagascar
Nauru Lithuania Libya Guyana Malawi
Nepal Luxembourg Mauritania Haiti Mali
New Caledonia Macedonia Morocco Honduras Mauritius
North Korea Malta Oman Jamaica Mozambique
Pakistan Moldova Saudi Arabia Martinique Namibia
Papua New Guinea Monaco Sudan Mexico Niger
Philippines Montenegro Syria Nicaragua Nigeria
Samoa Netherlands Tunisia Panama Réunion
Singapore Norway Turkey Paraguay Rwanda
Solomon Islands Poland United Arab Emirates Peru Sao Tomé e Príncipe
South Korea Portugal Yemen Puerto Rico Senegal
Sri Lanka Romania Sint Maarten Seychelles
Taiwan Russia St Kitts Sierra Leone
Tajikistan Serbia St Lucia Somalia
Thailand Slovakia St Vincent and the South Africa
Tonga Slovenia Grenadines South Sudan
Turkmenistan Spain Suriname Swaziland
Tuvalu Sweden Trinidad and Tobago Tanzania
Uzbekistan Switzerland Uruguay Togo
Vanuatu Ukraine US Virgin Islands Uganda
Vietnam United Kingdom Venezuela Zambia
Zimbabwe
13
A billion extra consumers with growing disposable incomes across all regions
With a rapidly growing and highly urbanised population, demand across the globe for processed and packaged
food and beverages (F&B) is set to increase. Growth in GDP at 3.5% outstrips population growth of 1% (CAGR
2017-30) but overall consumer spending on F&B is set to drop from 8.5% of GDP to 8.0% by 2030 as products
become relatively more affordable and make up a smaller proportion of overall consumer spending.
EXECUTIVE SUMMARY
Population growth underlies much of Food & Beverage global growth
Young, under 30 years olds, located in urban areas are in the lower income brackets and are trading
of either Sub-Saharan Africa, Asia Pacific or Latin up to packaged food for the first time unlike their
America is an apt description of the key consumer counterparts in the more mature markets of Europe,
of the future. This group is the fastest growing and North America and Australasia. Populations in these
largest contributor to value sales growth with their mature markets are slow growing and are getting older,
increasing purchasing power and love of westernised, with the key consumer of the future most likely to be
convenient and easy-to-prepare food and beverages. over 50 years, in a small one-, two- or three-person,
Instant noodles, pasta, dairy products, snacks and city-based household. Some are affluent, others will
RTD drinks in single-serve packaging are winners be living on meagre state pensions but all are looking
with this group but they are equally conscious of for health benefits for their bones, mobility, digestive
their health, nutrition and the long-term dietary health and energy levels. Their working lives continue
effects of the products they are consuming. longer and they like to treat themselves well, whether it
is with organic, locally produced, high-quality fresh or
Young parents with children want to provide their
processed products or in the form of indulgent treats.
offspring with beneficial nourishment and are careful
what they feed their children. Many, in these regions,
World Population World GDP
Executive
CAGR 1.0% CAGR 3.5%
2030
8.5bn 2030
122tn
2017
7.5bn 2017
78tn
Summary
Executive Summary 15
Industry Growth
Asia Pacific provides scale, but the strongest growth Middle East & North Africa
comes fromMiddle East and Africa Asia Pacific with its large, growing population
and expanding middle class, is a region with
EXECUTIVE SUMMARY
With high birth rates, rapidly expanding cities and growing employment, the combined Middle East and Africa regions
offer the highest level of potential growth. With greater distribution of wealth, growing economic and political stability
4.2% strong potential in all F&B categories. Packaged
food sales are growing as modern retail
expands supported by a developing cold chain
and rapidly developing infrastructure, consumers have greater access to a wider range of foods and beverages. Despite
lower growth rates, the sheer size of the population and disposable income growth across Asia Pacific also offers an 4.6% infrastructure for fresh, chilled and processed
foods. Internet retailing and strong national
enticing growth market in all categories.
5.4% logistics allow consumers to purchase products
not easily accessible in local retailers at little
or no extra charge. Health concerns around
Exhibit 1 Industry growth per region by category, CAGR 2016-2021
4.2% obesity, children’s health and life-long health are
shaping the popularity of F&B products with
strong and growing interest in naturally health
6. 1 % and traditionally recognised ingredients.
Cold chain services are also changing consumer
choices in the Middle East and Africa regions as
frozen processed halal meat and poultry, cold
Asia Pacific Australasia North America drinks and flavoured milks increase in popularity.
Foodservice is also growing with the entry of
many international chains also influencing in-home
2.8% 1 . 3% 1 . 5% consumption of more westernised foods and
beverages. Demand for bottled water, in particular,
is expanding in major cities across these regions
4.2% 1 . 1% 1 . 7% as sanitary and potable water systems fail to deal
with the stress and demands of rapid urbanisation.
1 . 3% 0.5% 1 . 5% Young consumers, particularly in Sub-Saharan
Africa, have adopted mobile- and internet-based
services as the key channel of communication with
3.0% 0.8% 0.7% and about brands as well as delivery services.
In Latin America, the traditional grocery retailer
4.8% 2.4% 0.7% still plays a significant role outside Brazil and
Chile despite the rapid adoption of mobile apps
for purchasing. Warehouses, discounters and
private labels respond quickly to the needs of
price-sensitive consumers but, despite persistent
Europe Latin America Sub-Saharan Africa economic uncertainty, young, employed
consumers are eager to try new products and
are willing to pay for this indulgence. Sugar
1 . 4% 3.2% 6.8% taxes in Mexico and other markets have changed
the ingredient profile of many products as
manufacturers tweak formulations to offer new
0.6% 2.5% 3. 1 % flavours, hybrid and soy-based drinks in smaller
pack sizes in response to growing consumer
0.8% 2.7% 2.9% awareness of national health concerns.
In the more mature markets of Europe, Australasia
1 .0% 2.3% 4.6% and North America, media and national campaigns,
regulation and unsubstantiated packaging claims
are challenging consumers’ purchasing decisions.
0.5% 1 . 9% 2.6% Increasing label scrutiny underlies most consumer
choice as they search for natural, health-supportive
ingredients with local sourcing and low processing.
Online services are well established, but consumers
still like to look, feel and test new products in local
retailers. Consideration of the long-term impact
KEY on their health and on the environment of their
Beverages Dairy Poultry Pulses, Grains & Cereals Fats & Oils
shopping behaviour is now strongly engrained.
The colour of the industries indicates growth rate Above global average Global average Below global average
Source: Euromonitor International analysis from Passport
17
Asia Pacific Australasia Europe Latin America
Middle
East & North
Africa
North
America
Sub-Saharan
Africa
Market Trends and Drivers
Total F&B
2011-2016 4.6% 2.0% 1.1% 4.2% 2.4% 0.8% 4.5%
growth
Total F&B
2016-2021 4.6% 2.2% 1.8% 2.6% 2.2% 1.8% 2.0%
Shifting consumer needs affect both affluent & low-income consumers globally
Source: Euromonitor International analysis from Passport
growth
In a highly competitive market, manufacturers ingredients, sugar and salt; shifting their preference
strive to deliver an appealing, high quality, reliable to organic, natural and holistic ingredients while still
EXECUTIVE SUMMARY
Fastest Internet Internet Internet Internet Internet Internet Internet
growing retailing retailing retailing retailing retailing retailing retailing product with consistent standards across the globe. looking for novel recipes, bold and exotic tastes and
retail channel (38%) (20%) (8%) (5%) 39%) (14%) (33%) Tension is created by changing consumer trends with convenient packaging and product delivery. Internet
smaller companies clearly more agile and proficient purchasing is also changing the delivery of products
at developing niche, market-defining products. not just for storage and home-delivery formats but
Highest Environment/ Environment/ Environment/ Environment/
Kosher
Environment/ Consumers are actively transitioning to healthier also in terms of access to local brands and short order
value share Sustainability Sustainability Sustainability Sustainability Sustainability NA foods and beverages; rejecting products with artificial supply. Key consumer and industry trends include:
(71%)
ethical label (84%) (74%) (80%) (87%) (76%)
Highest Fortified/ Naturally Naturally Fortified/ Naturally Fortified/ Naturally
value share Functional Healthy Healthy Functional Healthy Functional Healthy
H&W label (46%) (32%) (48%) (41%) (53%) (34%) (52%)
Greater demand for Improved F&B food Cold chain Single serve, smaller packaging
naturally healthier, safety and hygienic expansion reflecting smaller households,
Foodservice
functional and free- preparation on-the-go consumption and
from ingredients health concerns
App-based delivery services are disrupting traditional foodservice demand
Foodservice consumption continues to rise as the In all markets, delivery services, driven by the
Increased label Increased demand for Increasing importance of
presence of F&B products and services in all retail use of mobile apps, is taking an increasing share
scrutiny and credible labelling and ethical positioning, such
channels increases. Convenience stores and forecourt of foodservice sales with many consumers now
ingredient list regulation of ingredients as Halal, recycled,
retailers now compete directly with traditional opting for rapid delivery of high quality F&B to
simplicity and sourcing eco-friendly or organic
foodservice outlets, providing a wide range of hot and the comfort of their own home. This is not just
Source: Euromonitor International analysis from Passport
cold F&B, take-home, delivered and on-the-go stock. confined to young consumers but reaches, in
In less affluent markets, street stalls and kiosks offer mature markets, into all categories, as delivery
the operator a cheaper alternative to investing in a services offer ingredient and recipe supply, fast
store, cafe or bar, with modern equipment improving food and fine dining as well as casual delivery
the quality and range of products they can now offer. of simple cups of coffee from local retailers.
Middle
North Sub-Saharan
Asia Pacific Australasia Europe Latin America East & North
America Africa Clear policies on Increasing Growing interest in plant- Scaling up of leading F&B
Africa
sustainability, westernisation and based F&B substitutes companies through M&A
Fastest Street Stalls Cafes/Bars Fast Food 100% Home 100% Home 100% Home 100% Home farming techniques, diversification in ingredients, activity to offset challenge
growing / Kiosks Delivery/ Delivery/ Delivery/ Delivery/ local and careful, of diet flavourings, sweeteners of online giants and current
food service Takeaway Takeaway Takeaway Takeaway
channel (3.5%) (4.2%) (2.1%) (3.9%) (5.1%) (3.9%) (8.4%) transparent sourcing and protein sources consumer trends
Note: Based on CAGR 2016-2021
Beverages Dairy Meat & Poultry Pulses, Grains & Cereals Fats & Oils
KEY Moons indicate the level of direct impact on each industry. The fuller the moon, the higher the direct impact Low High
Source: Euromonitor International analysis from Passport, trade interviews and desk research
Note: Level of impact mentioned is extrapolated by Euromonitor International based on its market understanding.
19Challenges and Opportunities
Consumers strive to define acceptable standards Brand values are increasingly the key differentiators
for the development of the supply chain for the modern consumer
EXECUTIVE SUMMARY
Changing consumer perspectives on the production Pressure to lower prices is inescapable due to stiff With an additional one billion consumers by 2030 presence in all markets and highly affluent consumers
of food and beverages demands improved sustainable competition between manufacturers and retailers many opportunities present themselves both in where added value is defined in terms of health and
agricultural practices including protecting natural and is felt throughout the supply chain, from pressure developed and developing markets. Consumers enhanced life expectancy. Scaling up to meet this
resources while dealing with the volatility of climate to lower input costs to the creation of efficient and throughout the world are demonstrating their interest demand by leveraging technology, both blockchain
and commodity pricing. Consumers consider farmer resilient supply chains taking advantage of the in natural, healthier, high quality and safely produced and consumer-facing technology, is crucial. Investing
livelihoods and animal welfare important first steps latest technologies. Vertical integration is intense in food and beverages through their current purchasing in the supply chain and delivery logistics is essential
in the supply chain with governments demanding some categories with the objective of controlling decisions. This demand is set to expand as many to meeting not just the critical demands of the young,
traceability from farm to table to ensure clean and all aspects of production and ensuring delivery of a families teach their children a new set of expectations. thoughtful consumer, but as a pathway to meeting
sanitary production and processing methods. product that meets emerging consumer demand for The market is characterised by a burgeoning low- future demand for personalised, tailored products of
ethical, naturally healthy and affordable products. Key income mass market, a slowly expanding middle-class the consumer of 2030. Some of these opportunities are:
consumer and industry challenges include:
Source: Euromonitor International analysis from Passport, trade interviews and desk research
Increased demand Growing demand for Demand for High cost of investing in Differentiate with Develop affordable Rising demand for Take advantage of smart
for ethically farmed limited resources such traceability farmer training, modern clear and credible product lines healthier recipes, packaging to ensure
ingredients and pressure as water and key crops and sourcing farming techniques labelling to attract to suit low-income natural ingredients and freshness, portability and
on farmers to produce by other industries transparency and technology the health-conscious consumers in additive-free product design possibilities to
sustainable crops demographic developing markets formulations attract consumers
Rapidly growing Rising input costs, Increasing competition Re-invention of Appeal to convenience Widening consumer RTD, RTE, quick cook, Competitive
demand for high price volatility and from private label retailing with direct impulse purchasers palate allows for new ready prepared and other advantage through
value resources which changing subsidies with deterioration of producer/supplier with wider offering in recipes, ingredients convenience foods to suit sustainable and ethical
are, by their nature, high quality, specialist, to door delivery and smaller packs, snacks and and styles busy consumers farming methods
in short supply differential positioning online purchasing convenient portable sizes
Beverages Dairy Meat & Poultry Pulses, Grains & Cereals Fats & Oils KEY Moons indicate the level of direct impact on each industry. The fuller the moon, the higher the direct impact Low High
Source: Euromonitor International analysis from Passport, trade interviews and desk research Source: Euromonitor International analysis from Passport, trade interviews and desk research
Note: Challenges listed above are a consolidation of challenges within the different industries covered in this report. Level of impact is extrapolated by Note: Challenges listed above are a consolidation of challenges within the different industries covered in this report. Level of impact is extrapolated by
Euromonitor International based on its market understanding. Euromonitor International based on its market understanding.
21Global Demographics Overview
GLOBAL DEMOGRAPHICS OVERVIEW
By 2030, there will be 1 billion additional consumers ready to be served
across the globe
The world population in 2017 stands at 7.47 billion, up from 6.96 billion in 2011. With expected slower growth between
2017-2030, the world population is expected to reach 8.5 billion by 2030.
Exhibit 2 Regional population in 2017, 2030 & CAGR 2017-2030
394.8mn
746.3mn Europe
0.7%
0.0%
362.1mn
746.2mn 4.5bn
North
America
677mn Asia Pacific
0.7%
1.5% 4.1bn
1.4bn 558mn
Sub Saharan 2.5% Middle East
Africa & North Africa
708.6mn 1bn
35.3mn
Latin America 0.8%
Australasia
640.0mn 1.4%
29.3mn
KEY : Inner circles indicate the population in 2017, outer circles indicate the population in 2030.
The distance between the inner and outer circles indicates the size of the absolute growth
Colour of the circles indicate the growth rate Fast Moderate Slow Static
Source: Euromonitor International analysis from Passport
More than 13% of the global population resides in With its rapidly growing population and an additional
Sub-Saharan Africa in 2017. By 2030, Sub Saharan 380 million people, Asia Pacific is expected to
Africa will be outpacing all other regions in population contribute the most to global food and beverage
growth, partly driven by foreign investments in industry value sales growth, mainly driven by higher
Global Social &
infrastructure, healthcare and nutrition. In Sub- demand for oils, dairy products and beverages such as
Saharan Africa, the expanding population aged under sports and energy drinks and bottled water. The large,
30 years is expected to drive demand for key food young consumer groups in these countries will also
and beverage categories such as beverages and drive the growth of convenient and portable forms of
confectionery. beverages along with single-serve food products such
Economic Outlook
as RTD tea and coffee, cheese and dairy products,
cereals and pasta.
23Urbanisation vs Population Growth
GLOBAL DEMOGRAPHICS OVERVIEW
By 2030, 60% of the total world population will be living in urban areas
Urbanisation offers a dense, concentrated market and opportunities for retail infrastructure and products tailored
to newly affluent consumers as well as large sections of the community on low incomes. Growth in urbanisation is
expected to surpass overall population growth in all regions.
Exhibit 3 Regional urban population growth vs. total population 2017-2030
URBAN POPULATION GROWTH, 2017 - 2030
4.5%
4.0% 46% Sub Saharan
Africa
3.5%
3.0%
2.5% Middle East
68% & North Africa
Asia
2.0% 55% Pacific
91% Australasia
1.5%
Latin
1.0% 83% America
0.5% 77% Europe 83% North
America
- 0.0%
- 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% leader as a result of good incentives for distributors, Highly urbanised societies in Europe create a different
strong below-the-line advertising, frequent consumer profile of product demand. Meat substitutes and hot
promotions, as well as the availability of a variety of cereals are examples of key growth categories on the
Source: Euromonitor International analysis from Passport
pack sizes and flavours. back of strong health and wellness concerns.
Note: Bubble size represents the urban population over total population in 2030
In Manila, one of the most densely populated cities For example, in the mature and saturated processed
in the world, the importance of product convenience meat market in Germany, meat substitutes are now
has been prominent to address the demand of the a small but strongly performing category. Meat
High urbanisation growth, as demonstrated in Sub- oils is greater in the Middle East and North Africa due
urban population. Companies such as AB Nutribev consumption is changing with a growing number of
Saharan Africa, offers potential as new cities coalesce to higher disposable income levels while more mass
have found success with their Vitamilk product, vegetarians and those following a vegan lifestyle. In
around natural growth in the population, migration market products, such as beverages (bottled water,
available in 300ml glass bottles and positioned as a addition, many consumers aim to lower their meat
from rural areas and reclassification/upgrading of packaged tea) and dairy products are in greater
healthy energy drink that can help address hunger and consumption as part of a healthy heart lifestyle.
former slums into urban areas. Urbanisation growth in demand in Sub-Saharan Africa.
tiredness. It targets the increasing demand for on-the- This emerging consumer group presents significant
the Middle East & North Africa region is also expected
In Nigeria, urban population has been price sensitive go consumption. In 2017, Purefoods-Hormel Co started opportunities for growth with many meat processors
to be strongly influenced by large-scale infrastructure
due to economic uncertainty which has forced unit construction of new production facilities for hotdogs, now venturing into this category to ensure full portfolio
development, agricultural and land reform and the
prices for food and beverages to rise strongly in recent chicken nuggets, corned beef and luncheon meat in coverage within this market. Pure discounter Aldi
development of older and new cities.
years. Staple foods, such as a rice, pasta and noodles, the Philippines to meet demand in the mid-to-high offers a wide range of vegan options including burgers,
Growing urbanisation in these regions influences have seen strong growth. Instant noodles, for example, end of the market. Modern retailing in the Philippines schnitzel, meatless hotdogs, meatless meatballs,
demand for food and beverage categories differently. are increasingly popular and are seen as convenient is expanding more rapidly than traditional grocery chickenless nuggets and meat-free mince and in
Demand for higher-priced convenience categories to prepare, fairly cheap, and widely available. Dufil retailing, offering greater opportunities for hot and December 2017, it launched its range in an additional 17
such as RTD tea and coffee and higher-grade olive Prima Foods’ Indomie noodles brand is now a market chilled foods. countries.
25Global Economic Outlook Overview Income and Consumer Expenditure
GLOBAL DEMOGRAPHICS OVERVIEW
Asia Pacific and Middle East & Africa top GDP growth to 2030 More than half of world GDP now comprises consumer expenditure
The food and beverage industry is one of the largest manufacturing sectors in terms of jobs and value added in most In 2017, total global disposable income accounts for the 65% of total world GDP (US$51 trillion in 2017) while
economies contributing US$77.5 trillion globally in 2017. A forecast overall CAGR of 2.9% over 2017-30 is driven in consumer expenditure represents 56% of world GDP. Consumer expenditure on food and beverages is now US$6.6
part by population growth in emerging markets within Asia Pacific and Middle East and North Africa but also by the trillion or 8.5% of world GDP.
shift to packaged and convenience foods in these regions.
Exhibit 5 Total global GDP, disposable income and total consumer spending, 2017
Exhibit 4 Regional GDP in 2017, 2030 & CAGR 2017-2030
26.3tn
23.7tn Europe
1.9% 195*
1.5%
20.6tn
19.5tn US$77.5tn US$50.8tn US$43.8tn US$6.6tn
North 44.8tn
America 7.5bn
6.2tn consumers
4.4% Asia Pacific
25.5tn
3.8%
2.3tn 4.0tn World consumer
spending on food
Sub Saharan Middle East World Disposable World Consumer and non-alcoholic
3.8% 2017 World GDP Income Spending beverages
Africa & North Africa
7.1tn 1.4tn
2.0tn
Latin America 2.7%
Australasia
5.1tn 2.5%
1.5tn
Note: * Countries with available data
Source: Euromonitor International analysis from Passport
KEY : Inner circles indicate total GDP in 2017, outer circles indicates total GDP in 2030.
The distance between the circles indicates the size of absolute GDP growth After the latest recession, and political and economic proteins, fermentation and probiotics will increasingly
uncertainty, consumers in many countries have form part of a healthy diet with blockchain technology
Colour of the circles indicate the growth rate Fast Moderate Slow adopted a more cautious approach to spending. supporting safer supply chains and controls.
US$ fixed 2016 exchange rates, constant 2016 prices Consumers in developing markets tend to be more
Source: Euromonitor International analysis from Passport Forecast growth in middle-class households is
optimistic than those in developed counties when it
strongest in countries such as Nigeria and Egypt
comes to spending but many still focus on affordability
as employment and income opportunities rise in
as the primary purchase decision criteria.
urban areas in these countries. Expenditure on food
Asia Pacific is forecast to achieve the fastest growth added products are favoured by higher income and As disposable income rises, consumer expenditure on and beverages also increases at a high rate as these
in GDP, driven by the strong manufacturing and older consumers looking for natural ingredients/ food and beverages in the Asia Pacific and Middle East middle-income households emerge.
export-led economies of China and India as well as product formulations that exclude added sugar, salt, and Africa regions will increase from 53% of global
Demand for fast food restaurants and processed food
overall growth in private consumption. Growing private preservatives and artificial ingredients. With up to expenditure in 2017 to 60% by 2030. Urbanisation and
in Nigeria is robust, fuelled by a fast-growing young
consumption in these markets is encouraged by the 24% of the population of Europe expected to be over population growth are expected to aid this consumer
population, rapid urbanisation, increasing affordability
expansion of global foodservice chains introducing 65 years by 2030, food and beverages in smaller spend. As a result, packaged foods and beverages are
and demand for convenience. In addition, Nigerians are
westernised food and beverages as well as the quantities, with natural flavours and clear labelling are expected to become more accessible, with increased
switching from unpackaged, unbranded products to
expansion of modern retailing formats and the raised expected to be in higher demand. Rising incidences access to international brands and western food types.
packaged products as the urban population reaches
presence of convenience products. of diabetes, cardiovascular diseases and osteoporosis
In developed markets consumers are more inclined 51% and consumers look for packaged food products
will drive the growth of functional foods fortified with
GDP growth in Europe is more muted, with mature, towards purchasing added-value products, preferably that are quick to prepare or ready to consume, such as
vitamins and minerals.
saturated markets for food and beverages. Value- with natural ingredients, Plant-based and alternative noodles, dairy products, snacks and bread.
27In Saudi Arabia, as women enter the workforce there is less time for shopping or preparing meals and this is leading to
increased consumption of packaged and processed foods. Rising disposable incomes and middle-class households also
support increased consumption out of home and in foodservice outlets. A growing cafe culture is driving demand for
speciality teas and coffees as international chains such as Starbucks and Dunkin Donuts or local chains such as Coffee
Planet and Bonnon Coffee expand. Young women in particular, are becoming increasingly aware of healthy lifestyles with
manufacturers launching new products that are health-oriented as well as affordable. Products such as unprocessed
GLOBAL DEMOGRAPHICS OVERVIEW
cheese, butter, healthier edible oils and some sauces, dressings and condiments are witnessing growing demand with many
new product launches, such as Activia Yoghurt Go by Al Safi Danone or Nestlé Fitness Granola by Nestlé.
Exhibit 6 Consumer expenditure on F&B growth and middle-class household growth for top 20 F&B spending countries
Consumer Exp
Country Typology
on F&B in 2017
China Emerging and
1,033,585 Developing Countries
USA Developed
796,647 Countries
India Emerging and
423,488 Developing Countries
Countries with large populations and high growth in middle-class
household formation, such as China and India in Asia Pacific, offer
Japan Developed
420,771 Countries
varied opportunities in food and beverages. China, for example, will see
the creation of an additional 21 million new middle-class households by
Nigeria Emerging and
194,547 Developing Countries
2030 but India, with a similar sized population, will only add 12.7 million
and overall value growth will be substantially lower.
Russia Emerging and
194,126 Developing Countries Packaged food sales are growing in India as disposable incomes
Germany Developed increase. Families are actively adopting westernised food concepts with
188,696 Countries sales of pasta sauces and cheese growing as pizza, burgers and Italian
France Developed foodservice outlets become popular. National concern around obesity
178,270 Countries is also forcing parents to focus on their children’s health and their
Brazil Emerging and consumption of processed foods. Parents now look for lower sugar, fat
175,412 Developing Countries and salt content in the processed food they give their children and try
Mexico Emerging and to ensure a proper diet of nutrients and vitamins.
174,665 Developing Countries
“Made in China” is no longer considered inherently inferior following
Indonesia Emerging and
172,584 Developing Countries
strong endorsement by first lady, Peng Liyuan. However, past
food scandals have left Chinese consumers concerned about food
Italy
164,570
Developed
Countries
processing methods with many middle-class consumers shifting to
fresh, nutritional and organic foods where possible. The improving
“When Gen X were
United Kingdom
129,293
Developed
Countries
cold chain infrastructure has also supported the expansion of fresher kids, we all ate
Turkey Emerging and
and chilled packaged food and beverages. Fresh milk, for example, has
benefited both from wider availability and its image as a nutritional,
American cheese.
Now kids are eating
122,253 Developing Countries
convenient drink.
Argentina Emerging and
Spain
104,771 Developing Countries In key countries in Latin America, the middle-class continues to expand. Havarti, Gouda, etc.
In Mexico 25% of all households are now classified as middle-class.
102,291
Developed
Countries Many now place greater value on convenience, modern retail formats, there is a culinary
Philippines
99,587
Emerging and
Developing Countries
brands and product quality, rather than simply on price. Modern
convenience stores are very popular and are expanding in many
aspect to it all. A
Pakistan Emerging and countries. In Mexico, many are open 24 hours a day, serving fresh coffee lot of blurring of
South Korea
99,270 Developing Countries
Developed
and baked goods along with other services, such as bill payments,
banking and phone service support facilities, to encourage increased
the lines between
89,717 Countries footfall. Products available cater to the national focus on weight meals and snacks.
Canada Developed management, such as less processed foods, fortified and functional
81,586 Countries alternatives and products that offer reduced sugar or reduced fat, Leading global
-0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% which continue to drive growth as health promotion steps up nationally. dairy manufacturer
Note: Bubble size indicates the size of total consumer spending on food and beverages in each country
Source: Euromonitor International analysis from Passport
29In North America, the population aged 60 years In Turkey, 75% of all households are now in urban
and older constitutes the fastest-growing consumer areas. Many adults are in professional employment
segment in both the USA and Canada. This is expected and there has been a rise in the number of single
to drive increased demand for a wide range of age- person households. This has created demand for
specific products and services, particularly health- smaller-sized packs, processed meat and ready meals,
related products. Many people are working longer than with convenience and ease of preparation high on
previous generations, have higher disposable incomes the agenda for busy working adults. Young, urban
and have an active, healthy lifestyle. Manufacturers, consumers are interested in new and sophisticated
aware of consumer demand for natural, nutritional products for in-home consumption, as general political
and sustainable foods, are reformulating their popular and economic instability has depressed the frequency
products to increase appeal, achieving market share by of eating out. Western-style coffees and health and
acquisition of smaller, successful, niche providers and wellness products, such as fruit/herbal and green tea,
developing fresher products with natural ingredients are increasingly popular.
and lower levels of processing that suit not just
Economic recession and trade embargos on Russia are
the older generation but also strong health trends
heightening price sensitivity. Consumers are trading
throughout the general population.
down with a shift from premium to mid-priced or
In Western Europe, the free-from trend is now well mid to economy price segments, for example in tea,
established and growing. Gluten-, meat- and dairy-free coffee and hot drinks. Manufacturers are responding
product ranges are increasing in variety, availability by diversifying their product portfolios offering value
and affordability as the price gap between standard for money lines at all price points as well as using
and free-from products narrows. Flexitarian, vegetarian promotional activity to maintain visibility and brand
and vegan populations are growing, but even among loyalty. Domestically produced drinks such as Russian
general consumers there are many who believe that kompot juice drinks, kvass non-cola carbonates or
gluten- or lactose-free products are good for digestion sugar-free and vegetable-based soft drinks are widely
and that alternative high-protein sources are kinder to available and popular.
the environment as well as better for your health. In
the UK, for example, sales of free-from packaged foods
grew by 5% in 2016 as sales through supermarkets,
Global Food &
hypermarkets and discounters expanded.
Beverage Sector
31Global Total F&B Industry Overview countries limits the expansion
of dairy and fresh food sales
chilled facilities for stocking
fresh dairy, meat and seafood.
increasing label scrutiny and
transparent production methods
but demand for milk, butter, Consumers are increasingly are influencing consumer choices
yoghurt and cheese is growing aware of the health impact of across Europe. Growth in this
strongly as the number of the food they eat, especially in region will be much slower as
GLOBAL FOOD AND BEVERAGES SECTOR
expatriates and working women countries such as Mexico, Brazil, consumers look for long-term
Highest growth will come from Asia Pacific, Middle East & Africa and Latin America increases in many countries. Chile and Argentina, where health gains through diet,
Middle East and North Africa awareness of food content is replacing the more short-term
Overall retail value of food and beverage sales across the world in 2016 reached US$1,585 billion with Asia Pacific, Latin is one of the priority regions heightened due to taxes and focus on lower salt, sugar and
America and Middle East & Africa accounting for 57% of this value. In 2017, it is forecasted to reach US$1,617 in 2017 and for major food and beverage government backed campaigns fat content. The proportion
by 2021 total value sales of food and beverages (F&B) is forecast to reach US$1,788 billion. companies due to its growth to lower levels of diabetes. of consumers over 50 years
potential. Local government Gluten-, sugar- and fat-free foods in the total population is
support for foreign investment and sugar-free carbonates are also forecast to rise reaching
Exhibit 7 Total F&B Value Sales in 2016, 2021 & CAGR 2016-2021 US$ billion has also seen the establishment popular with many consumers 42% by 2030 up from 37% in
of new manufacturing plants. looking for more naturally healthy 2017. This demographic shift
alternatives in packaged foods. is expected to raise interest
Consolidation in modern retailing
in vegetarianism, weight
is occurring in many smaller In 2017, Europe accounted for
management with fortified
countries, such as Colombia and 25% of global food and beverage
foods and healthy snacking and
Chile within Latin American, sales. The demand for naturally
beverages set to increase.
290bn but high penetration in Brazil healthy foods and beverages,
412bn
Europe provides many stores with
1.5%
0.9%
Global F&B Distribution Landscape
270bn
394bn
659bn
North
America
130bn Asia Pacific
3.2%
4.6% 562bn
51bn 104bn
Sub Saharan
Africa
5.4% Middle East
& North Africa Super/hypermarkets Exhibit 8 Global food value sales split by key
221bn channels, 2011-2016 US$ million
39bn
25bn
suffer as internet
Latin America 2.8%
Australasia
retailing and
1.1%
193bn
convenience stores - 200K 400K 600K 800K 1M
24bn
and forecourts expand
2011
Super/hypermarkets now control
55% of total food value sales from
2012
KEY : Inner circle indicates total F&B value sales in 2016, outer circle indicates total F&B value sales in 2021 56% in 2011. Convenience stores
The distance between the circles indicates the size of absolute growth and forecourts have increased
their presence and range of 2013
Colour of the circles indicate the growth rate Fast Moderate Slow Static
products offered, with market
Source: Euromonitor International analysis from Passport
share now reaching 6%, up from
Source: Euromonitor International analysis from Passport
2014
5% in 2011. Although still small,
mobile and online purchasing is
revolutionising food and beverage 2015
Asia Pacific is the most rapidly and has also supported a shift the Middle East and North
purchasing through its integration
expanding food and beverage from unpackaged to packaged Africa region. Premiumisation
with rapid and localised delivery
market due to burgeoning foods, the growth of fast food is a growing trend as the
systems and is the channel 2016
populations, higher and more and specialist coffee outlets, number of middle-class and
of choice for many younger
widely distributed disposable a growing interest in naturally wealthy consumers increases,
consumers with global sales share
income, a growing culture of healthy foods as well as the with many young consumers
increasing by 1.2% since 2011.
out-of-home consumption. India expansion of convenience stores. favouring international brands Convenient Stores and
Discounters
Forecourt Retailers
is the star performer, surpassing and consumption through For both hot drinks and soft drinks
High disposable incomes,
Pakistan, Indonesia and China foodservice increasing. A volume, super/hyper markets are Supermarkets/Hypermarkets Internet Retailing
rapid urbanisation and a large
in terms of forecast growth. growing cafe culture is boosting the leading channels in 2016 with
and growing group of young Traditional Grocery Retailers Other Dairy
Economic expansion, rising sales of RTD tea and coffee as 47% and 37% shares respectively.
consumers comprised of young
incomes and a rapidly expanding well as demand for hot drinks
professionals and families with
middle class has led to increased in convenience and forecourt
young children strongly influence Note: Channel split excludes dry pulses and semi-processed pulses
spending in the last five years stores. An underdeveloped cold
food and beverage sales across
chain infrastructure in many
33Exhibit 9 Global soft drinks volume sales split
by key channels, 2011-2016 Million litres
Modern grocery formats such as
Global F&B Industry
2011
- 100K 200K 300K 400K 500k 600k
super/hypermarkets, forecourts
and convenience stores dominate
despite discounters actively
developing their network of
Overview by Category
GLOBAL FOOD AND BEVERAGES SECTOR
stores over the last five years.
2012 Discounters have relied on value
sales driven by high quality,
low prices and convenience
Beverages dominate global sales of food and beverages in value terms,
2013
targeting low- and middle-income while edible oils is the fastest growing category
consumers, but this approach is
Source: Euromonitor International analysis from Passport
2014 now well established and adapted Beverages is the largest category, with soft drink dominating overall sales. Forecast growth to 2021 is strong at a 2.5%
by all channels, particularly CAGR with stronger growth in hot drinks as many consumers switch to the health benefits of tea, different varieties of
through private label ranges. coffee and other hot drinks. Sugar-laden carbonates are suffering in many markets as consumers search for healthier,
2015 reduced/no sugar alternatives such as hybrid juice drinks, low-fat flavoured milks and bottled water.
For middle to premium consumers
a shift to local and specialist
2016 Exhibit 11 Global F&B value share by industry, 2011–2021
stores is driving sales of premium,
natural and organic foods allowing
traditional and independent - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000
Convenience Stores and grocers to maintain their market
Discounters 2011
Forecourt Retailers share at 26% globally. All leading
Source: Euromonitor International analysis from Passport, FAO
Supermarkets/Hypermarkets Internet Retailing
global retailers have also adopted 2012
omnichannel approaches to the
2013
Traditional Grocery Retailers Other Dairy market, with large investment in
2014
establishing a strong presence
in mobile retailing essential. 2015
Note: Channel split excludes dry pulses and semi-processed pulses
Packaged foods dominate retail 2016
sales through super/hypermarkets 2017
with traditional retailers relying
2018
Exhibit 10 Global soft drinks volume sales split on hot and soft drinks sales
by key channels, 2011-2016 Million litres more than on packaged foods. 2019
Convenience stores and forecourts 2020
have strong sales in soft drinks 2021
with discounters selling both food
- 2M 4M 6M 8M 10M 12M 14M
and beverages equally well.
Beverages Dairy Cereals, Pulses and Grains Meat & Poultry Fats & Oils
2011 Young consumers now use mobile
apps to order, purchase and arrange
delivery of food and beverages
2012 Dairy is forecast to grow at a 2.3% CAGR to 2021. Meat and poultry is the slowest growing category
at an ever-increasing rate.
Improved cold chain infrastructure in major markets at CAGR 1.3%, directly influenced in mature markets
Foodservice, in particular, is taking
such as Latin America, Asia Pacific and Middle by increasing numbers of flexitarians, vegetarians
2013 advantage of this opportunity with
East & North Africa is supporting growth in fresh, and vegans. Lower annual consumption of meat
rapid ordering and delivery available
chilled milk, yoghurts and cheese products with and poultry is also occurring in these markets as
from all leading and local providers.
Source: Euromonitor International analysis from Passport
2014 nutritious dairy products fitting well within the part of the development of healthier lifestyles.
Drive-in stores using online
global interest in healthier foods. Lactose-free Major manufacturers are working to broaden their
purchasing are now common across
milks are also growing as consumers look for more product portfolios as the trend towards plant-
2015 Europe as are instant shopping apps
easily digestible alternatives, in many markets. based protein and meat substitutes gathers pace.
with local delivery with the hour.
In emerging markets, beef and poultry sales are
Parallel in-store and online shopping Pulses, grains and cereals are becoming more
2016 growing as chilled and frozen products gain wider
experiences are epitomised by the popular elements in a healthy diet with CAGR of
accessibility as cold chain infrastructure expands.
new Hema supermarket shopping 2.3% forecast to 2021. Wider availability and niche
concept developed by Alibaba. products, such as buckwheat or quinoa, specialist Edible oils, although a small category, is the fastest
Convenience Stores and With 22 stores open by the end aromatic rices, ancient grains such as spelt, farro growing product category as demand, volume
Discounters
Forecourt Retailers of 2017, plans are now in place to or kamut and seeds like chia, pumpkin and sesame, sales and price increases. CAGR growth to 2021
Supermarkets/Hypermarkets Internet Retailing
rollout 2,000 branches in China are increasingly used as ingredients in foodservice. sits at 3.7% globally. Olive oil is the most dynamic
over the next five years. JD.Com Home cooks are now embracing these ingredients as category responding to growing health concerns
Traditional Grocery Retailers Other Dairy have also just launched 7Fresh, healthy sources of nutrition, vitamins and essential worldwide as the demand for natural, low processed,
a similar supermarket concept, oils. Growth is strongest in Sub-Saharan Africa where pure oils increases in all markets. Blended oils,
with 75% of all products stocked many of these products are staple elements of a palm and soya oils are also seeing growth driven
Note: Channel split excludes dry pulses and semi-processed pulses
comprised of fresh produce from traditional diet, but there is also strong demand in by population expansion but, in many markets,
local and international sources. Latin America and Middle East & North Africa. are suffering from poor perceptions in terms of
healthiness and heavy processing methods.
35Global F&B Trends & Drivers 01
The top three countries with the biggest ethical
markets based on the total value of ethical
Ethical living is an evolving
labels are the US, Japan and China shaped by
consumer stance availability, pricing and consumption habits.
GLOBAL FOOD AND BEVERAGES SECTOR
This ranking excludes products that are locally
Consumers increasingly evaluate
produced and organic, pesticide-free products
Manufacturers focus on expanding brands’ ethical credentials, sourcing and
that are not explicitly ethically labelled.
healthier food and beverage ranges sustainability policies with increasingly
01 effective, vocal, pressure group influence in
mature and evolving markets. Consumers
Strong natural, health and sustainability credentials
in these markets often have the luxury of
form the basis of innovation and new product NutriAsia is the Philippines’ leading 02
wide product choice or tangible experience
development in global food and beverages. Products producer, marketer and distributor of
of the impact of these choices. Key
made from healthier ingredients, labelled to high quality sauces and condiments Consumer interest is sufficiently that even in
components of an ethical standpoint are
demonstrate assurances of minimal processing or but the company is now expanding price-sensitive markets high value sales of
environmental consciousness throughout
demonstrative health benefits from natural ingredients into beverages. The company is the ethical mainstream categories can be achieved.
the production process in regard to human
appeal to consumers, specifically to higher income and owner of the very successful, Locally
and animal welfare, resource usage and
ageing consumers in developed markets. Innovation brand of quirky juices targeting younger
sustainability and transportation impact
is coming from a range of start-ups and established consumers and has now expanded
through to processing, production inputs
companies around the globe in response to this trend. into food trucks selling a wide range of 03
and outputs and recyclability.
Some examples include: Locally fruit-based drinks. NutriAsia also
has a 67% stake in DelMonte Pacific.
The recycling label in the most established,
recognised and trusted ethical label, with
product sales carrying this label reaching
02 US$700 billion worldwide. Manufacturers
are responding. Proctor & Gamble is the
Grupo Bimbo sales in leading markets first company worldwide to address ocean
such as Canada have been boosted by the waste, launching the first commercially
inclusion of ancient grains in new products produced shampoo bottle for Head &
such as Dempster’s whole grain with chia Shoulders made from recycled beach plastic.
as well as through acquisition of Stonemill
Bakehouse. Bimbo has also entered the UK
market for the first time with a range of
indulgent baked snacks with the objective 04
on injecting innovation and variety
into a stable, less dynamic category.
Consumers are embracing clean labels in
food and beverages and are looking for non-
GMO, no artificial ingredients or sweeteners,
03 hormone-free or natural/organic ingredients
which contribute strongly to the healthier
ellogg acquired RXBar protein bars
K lifestyles of consumers around the world.
from maker Chicago Bar Company
to expand their portfolio of healthier
snacks. The product lists its ingredients
prominently on the front of packaging 05
and is made without added sugar, gluten,
soy or dairy. It is particularly successful
hierarchy of ethical labels is present
A
among young millennials and health and
with consumer spend primarily devoted
fitness-conscious consumers in the US.
to environmental causes such as carbon
Kellogg has also reformulated some of its
footprint, sustainable sources, recycling
leading products by launching healthier
labels. Secondarily, consumers will spend
versions with higher fibre content,
in areas of wellbeing and animal welfare on
including All-Bran, FiberPlus and Nutri-
products labelled as bird- or insect-friendly,
Grain cereal bars sold in North America.
free range, BPA free, protected origin as well
as no added sugar/hormone/MSG or GMO
free. Charitable causes and religious labels
attain the lowest level of ethical priority.
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