Key Trends in Food, Nutrition & Health 2017 - And how they can work for you NEW NUTRITION BUSINESS - FDIN

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Key Trends in Food, Nutrition & Health 2017 - And how they can work for you NEW NUTRITION BUSINESS - FDIN
Key Trends in
               Food, Nutrition &
               Health 2017
               And how they can work
               for you

                                        Presentation for FDIN
© New Nutrition Business
                                        February 2017
                     NEW NUTRITION BUSINESS
Key Trends in Food, Nutrition & Health 2017 - And how they can work for you NEW NUTRITION BUSINESS - FDIN
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

                              NEW NUTRITION BUSINESS
Key Trends in Food, Nutrition & Health 2017 - And how they can work for you NEW NUTRITION BUSINESS - FDIN
© New Nutrition Business                      3

                     NEW NUTRITION BUSINESS
Key Trends in Food, Nutrition & Health 2017 - And how they can work for you NEW NUTRITION BUSINESS - FDIN
Many things can be trends. For us a Key Trend is one that:
                                                1) Drives growth
1. Will stick around for the long term          2) Will endure

1. Is going to produce growth in demand for foods and beverages that connect
   to it

      © New Nutrition Business

                           NEW NUTRITION BUSINESS
Key Trends in Food, Nutrition & Health 2017 - And how they can work for you NEW NUTRITION BUSINESS - FDIN
When companies search our site for information,
this is the top search query…

….because “belief” beats “science”

….because belief drives “consumer need”

                                                  5
  © New Nutrition Business

                       NEW NUTRITION BUSINESS
Key Trends in Food, Nutrition & Health 2017 - And how they can work for you NEW NUTRITION BUSINESS - FDIN
There is a driver behind all trends…

© New Nutrition Business

                     NEW NUTRITION BUSINESS
Key Trends in Food, Nutrition & Health 2017 - And how they can work for you NEW NUTRITION BUSINESS - FDIN
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:  600kcal/100g
     © New Nutrition Business     Olive oil: 820kcal/100ml    Flaxseeds: 530kcal/100g   7

                          NEW NUTRITION BUSINESS
Key Trends in Food, Nutrition & Health 2017 - And how they can work for you NEW NUTRITION BUSINESS - FDIN
Beetroot re-born
     Historically beetroot was seen as a vegetable with a very divisive taste that was
     difficult and messy to prepare.

     That all changed because of:

Snacking: Innovative                                            Marketing:
beetroot growers re-                                            Beetroot companies
positioned beetroot as a                                        invested in consumer
snack, offering ready-to-                                       PR
eat products, often in
composite snacks with
cheese or nuts

                                                                         Sportification: A creative
                                                                         beetroot grower turned to the
                                                                         sports science and began
                                                                         marketing beetroot juice as
Naturally functional: The media has                                      sports drink, with great success
extensively covered the emerging science
on beetroot. There are 369 studies about
                                                                          Beet It shots, popular in the sports
beetroot (165 are human studies). Of that                                 world due to beneficial effects on
total, 103 studies are focused on exercise,                               sports performance
of which 65 are  human
              © New       studies.
                    Nutrition Business

                               NEW NUTRITION BUSINESS
Key Trends in Food, Nutrition & Health 2017 - And how they can work for you NEW NUTRITION BUSINESS - FDIN
A surge of interest in turmeric

            Dairy: Moo Shake in
            India was the first
            UHT milk drink with
            curcumin, produced
            by Milk Mantra
            Dairy. “Gives your
            immune system a
            boost, is a powerful
            antioxidant and has
            anti-inflammatory      In the UK, upscale retailer
            properties”.           Waitrose has launched
                                   turmeric yogurts
                                   nationally.

                                                                 In Australia turmeric lattes are widely
                                                                 available in cafes in major cities and
                                                                 home mixes can be found in mainstream
                                                                 supermarkets.
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                         NEW NUTRITION BUSINESS
Key Trends in Food, Nutrition & Health 2017 - And how they can work for you NEW NUTRITION BUSINESS - FDIN
© New Nutrition Business

                     NEW NUTRITION BUSINESS
Media coverage on inflammation is broad. The most common topics are
the symptoms, causes and dangers of inflammation and anti-inflammation
                            diet & foods.

       © New Nutrition Business

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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.

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.

                                                            Turmeric has exploded in the supplement market
                                                            and in foodservice in major cities in the US and
                                                            Australia, with some brands using turmeric as
                                                            health halo ingredient to drive sales.

        © New Nutrition Business

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“One of the first directions that anti-inflammatory
     products are likely to take is in relation to digestive
      health – a major area of consumer concern and
             one that has tangible symptoms.”

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Consumers are becoming more interested in digestion
     and digestive health, including probiotics…
     One third of people suffer from some form of
     digestive symptoms – the most common ones being
     bloating and constipation.

     Source: World Gastroenterology Organisation (2016)

     30% of Americans suffer from abdominal bloating.

     Source: Health Magazine

     Google searches with the terms “bloated’
     and “probiotics” 2008-2016 in the UK:

Google searches with the term “消化” (‘digestion’) 2010-2016 in China:

                                                                       Quaker Hong Kong markets itself mainly on two
               © New Nutrition Business                                benefit platforms; heart health and digestive
                                                                                                                   46 health.

                                    NEW NUTRITION BUSINESS
Many roads to digestive wellness
   Digestive wellness is the key benefit, and much of the interest in gluten-free, for example, came from
   people Googling their digestive discomfort symptoms and finding plenty of sources describing gluten
   intolerance as a key cause.

   Armed with this information, people self-diagnose. As one food executive of a maker of gluten-free
       For FODMAP box
   foods told NNB: “There’s a lot of consumer pull, and the more they’re seeking out information, the
   easier our job becomes.”

   The successes of the probiotic dairy category, the rise of gluten-free and the rise of lactose-free plant
   milks all illustrate
    Nestle              how a large
                is beginning     to segment
                                     educateofconsumers
                                                  people are motivated  to buy products that give them
                                                                 about the
   digestive wellness. To get there they are willing to consider more ingredients, more types of
    advantages
   avoidance            of aproduct
                 and more     FODMAPS
                                    categoriesdiet
                                               thanfor
                                                    everdigestive
                                                         before.   health

                                                                                      FODMAP diets, also began
                                                                                      in Australia, are an
                                                                                      “avoidance of what’s bad”
                                                                                      strategy that’s being
                                                                                      embraced by a small but
                                                                                      growing number of people
                                                                                      and companies and given
                                                                                      new legitimacy by Nestle’s
                                                                                      launch of a beverage for
                                                                                      people following FODMAP
Launched in Australia in 2004, A2 Milk is a standard milk                             diets
  which does not contain any A1 protein, which the A2
   Milk company   argues
         © New Nutrition   can cause digestive distress
                         Business                                                                       18

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“Feel the benefit” is key to success

  Battling bloating, an everyday issue,
  with an easy “feel the benefit”
                                                 Lactose and gluten free products launched
In research women                          700
                                                                  in Asia*                660
describe the
                                           600
problem in a variety                                                                           457         482
                                           500
of ways,
                                           400
of which the most                                  275        263
                                                                                    302
                                           300
common include:                                                          165
                                           200
 “Feeling fat”
“Feeling heavy”                            100

“Feeling like there’s                        0
                                                  2010       2011        2012       2013       2014       2015     YTD 2016
a balloon inflating
inside me.”                                *Countries included: China, Hong Kong, Japan, Malaysia, Thailand and
                                           Indonesia.

            © New Nutrition Business       Source: GNPD Mintel (2016). Claims used: Low/No Lactose, Gluten Free.   19

                                 NEW NUTRITION BUSINESS
The field of digestive health, like everything else, is
fragmenting – and that 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

                        NEW NUTRITION BUSINESS
The dynamics, messages and even key categories within this
    benefit are undergoing a major change.

    New science is emerging and so are the gut “experts” and “gut
    makeover diets”
•   Tips include what dietary changes to make to: “improve your gut functioning and help you lose up to
    13 pounds along with changes you can make for life to help keep your gut flora happy forever”.

•   The science is still in its infancy when it comes to fully understanding how the gut and its
    microbiome can influence specific diseases. But the media is paying attention and offering broad
    and simplistic explanations that consumers can find easily online.

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A fundamental shift in how people look at their plates
– it’s not about replacing meat, it’s about broadening
the healthy eating repertoire.

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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                                                                               24

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Ingredient callout: Cauliflower

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                     NEW NUTRITION BUSINESS
Opportunities for plant-based foods
                                        Whether it’s a small meal, a meal for one, a
                                        snack or as part of a meal, there’s a clear
                                        opportunity for vegetables that are convenient
                                        and require little or no preparation and are
                                        therefore easier to substitute for starches at
                                        any type of consumption occasion, as the
                                        surge in sales of riced cauliflower and
                                        spiralised vegetables have shown. Nor do
                                        you need to sell vegetables alone. Combining
                                        them with legumes or nuts or various proteins
                                        provides more variety and makes it easier for
                                        time-pressed consumers to choose your
                                        product.

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Confusion and churn
Another huge indicator of how consumers are attempting to redefine
carb consumption is that they’re increasingly “spiralizing” – making
noodle shapes of – all manner of vegetables, such as zucchini, to
make them resemble pasta, and “ricing” vegetables such as
cauliflower.

At the same time, there are contra-indications which demonstrate that
it’s possible to overstate the western shift in carb consumption.

“With the focus on weight reduction taking center stage, we perceive
that people are eating less bread and carbs overall – but they’re not,”
said Catherine Adams Hutt, chief science and regulatory officer of
Sloan Trends, a consumer goods consulting firm.

UK supermarket Tesco has a range of
convenient vegetable “pastas”, “couscous” and “gnocchi”.

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Sportification is happening beyond food…
                                      …tourism, hobbies and even
                                      fashion are all riding 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

                                NEW NUTRITION BUSINESS
Sportification of Dining
A sportification of dining can be seen in the launch of fitness restaurants and cafés across the world.

Restaurants with a focus on protein, calories and “fuel food” are popping up and offer nutrition dense meals,
meal plans and food for delivery or collection.

Protein smoothies, egg whites pancakes and avocado dishes are common offers.

Prep Fitness Kitchen in Glasgow, Scotland

 The Protein Bar in Sydney, Australia

  Protein House in Las Vegas, USA

         © New Nutrition Business

                              NEW NUTRITION BUSINESS
Rather than sports nutrition going mainstream, the
bigger trend is for “regular” food to be adopted by
sports people.

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Consumers are “taking back control” of what
                      they buy and eat
They want to feel more empowered and confident
to create their own personalised healthy eating
patterns.

By making their own rules, consumers no longer
see dietitians and health professionals as the
experts on food and health.

There is also a growing awareness of how diet is a
personal matter – it’s the slow death of “one size
fits all” dietary recommendations and the on
going rise of a fragmented market.

          © New Nutrition Business

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Giant food companies are already investing
in personalized nutrition…
Campbell’s has just invested $32million in a startup focusing on personalized nutrition: Habit.

Launched by Plum Organics co-founder Neil Grimmer. Grimmer got his genome sequenced, his blood
tested and, with the help of doctors, embarked in a customized nutrition program journey.

Grimmer told NNB that “the genesis for Habit was the
idea of taking a very complicated system – the
process I went through – and making it available
to millions of Americans at a price point that will
be accessible for all”.

          © New Nutrition Business

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Protein has a lot going for it. It is in the lucky position of being an
    ingredient that’s also a benefit – and if your product contains protein you
    don’t have to make a claim. Consumers have a wide range of often not-
    very-specific beliefs about protein, from a broad health halo to believing
    it helps with a firmer body, weight-loss and even healthier hair.

•   It’s a trend that has mostly been led – as trends so often are – by the US market, but it’s already
    strong in Latin America, Australasia and most of Europe and it’s gaining ground in parts of Asia
    and the Middle East, which together look like the two most promising growth areas.

•   One thing is very clear: around the world most people want their protein from sources that they
    see as being natural – whether that’s dairy, yoghurt, meat or legumes.
            © New Nutrition Business                                                           39

                                 NEW NUTRITION BUSINESS
What does it mean for companies?
                                Quest Nutritions’ BEYOND cereal is
                                                                 protein (12g per 38g bar) – billed as
                                                                 kid in all of us who loves cereal, but
Broths: Consumption of broth brewed from          Snack legumes: AGAINST
                                                                   Inspired byTHE
                                                                                bothGRAIN”.    It’s sweeten
                                                                                     the plant-based
the bones of chicken, cows and sheep is well-     movement as well  as the protein
                                                                 allulose,  said totrend,
                                                                                     be a sweetener “fou
established in Asia, where Suntory-owned          entrepreneurs have
                                                                 withreinvented   the calories
                                                                       1/10th of the  humble bean    as a
                                                                                                of sugar.
Brand’s Essence of Chicken is the leading         tasty, vege-protein-packed snack. Brami Beans are a
brand, and is now gaining traction in the US      convenient form of the lupini bean, said to be the
and Australia, thanks in part to the influence    highest-protein bean around, and a food that fuelled
of paleo eating – even on people who are not      the Roman army; chickpeas too have been flavoured
committed to the diet.                            and snack-packed by the likes of Chic-a-pea.

                                                           Georgia also run in
                                                           broth the pic of
                                                           Brand’s Essence of
                                                           Chicken we used
                                                           in broth article,
Ancient Nutrition’s range ticks several trendy boxes:
protein, Paleo,  turmeric…
                                                           NNB October
         © New Nutrition Business                                                               40

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© New Nutrition Business

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Convenience is such a powerful driver that even the world’s largest
kiwifruit grower (Zespri) had to invest in creating an ultra-convenient
  kiwiberry to respond to demand for a more convenient, snacking-
                          friendly type of kiwi.
Beetroot growers are reinventing a traditional “boring” vegetable into
                    convenient snacking options.

     © New Nutrition Business

                          NEW NUTRITION BUSINESS
There is growth potential for cheese to be reinvented as
                 a naturally healthy snack (as it already is in many countries)
                                                                                                                Very strong science shows NO link
                   Per capita cheese consumption (kg)
                                                                                                                between cheese and:
                                                                                                                • Heart disease
       France                                                                                      26.3
    Germany                                                                                 24.2                •   Risk of elevated blood pressure or
       Iceland                                                                          23.4                        stroke
           Italy                                                                     21.8
                                                                                                                •   Weight gain
     Sweden                                                                  17.4
    Denmark                                                           15.3
                                                                                                   Sales of cheese in China
          USA                                                     14.2
                                                                                                   increased by 20% in 2015
     Australia                                                   13.7
            UK                                            11.7                                     Across Asia acceptance of
                                                                                                   cheese is being driven by the
         Chile                                      8.8
                                                                                                   western-style foodservice
     Uruguay                                       8.5                                             chains and in particular pizza
New Zealand                                       8.3                                              outlets.
         Brazil                      3.7
       Mexico                        3.6
        Japan                  2.2
   Colombia              0.9
         China         0.2

                   0                  5             10           15             20          25            30
                          © New Nutrition Business

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Source: International Dairy Federation, Canadian Dairy
Information Center.
S	
  
                                                                                                                              EN	
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No limits on NPD
Epic Bar launched snack bars and bites based on a
combination of grass-fed meat – beef, turkey or lamb – with
fruits or vegetables, targeting the niche of paleo-influenced
eaters and creating a meat snacking proposition quite unlike
anything that had appeared before.

Peeled Snacks is one of a number of vegetable-based snack brands. This
brand sells a snack made from pea flour and rice flour. In 2013 the
company made it to Forbes’ list of fastest-growing companies in America
and in 2016 passed $10 million (€9 million) in sales.

P3 Protein Packs: Like Balanced Breaks, Kraft’s successful P3 Protein
Pack makes the cheese the hero ingredient and combines it with meats,
fruits or nuts and leverages the protein message. P3 protein packs grew
to over $150 million (€137 million) in retail sales (IRI) within two years of
launch.

    © New Nutrition Business                                                                                                      45

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Ingredient callout: Chickpeas

© New Nutrition Business                             46

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© New Nutrition Business

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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                                             48

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Consumers can “forgive” a high sugar product if it delivers a
desired benefit… like energy!
   21% sugar

 1 portion = 30g

 “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                                                     49

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© New Nutrition Business

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The future is a series of premium-priced
                 niches

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Fragmentation is a key driver of
strategy – and will stay that way
1. Technology: Bloggers, apps and social media platforms enable consumers to do
their own research about food and health – mostly on their phones – and with this
steadily increasing knowledge people feel more confident to create personalised healthy
eating patterns and dietary choices and conduct their own personal eating experiments
to find what works for them.

    © New Nutrition Business                                                       52

                         NEW NUTRITION BUSINESS
Fragmentation is a key driver of
strategy – and will stay that way
2. Loss of trust in expert health advice: At the same moment as technology has
removed dietitians and health professionals as the gatekeepers of knowledge about
food and health, the traditional health experts – academic researchers and dietitians –
are beginning to look to most people as if they didn’t know what they were talking
about.

Changes in dietary advice, which seem to have been accelerating in frequency over the
past 15 years, have created justified consumer scepticism about “expert opinions”.

   © New Nutrition Business                                                         53

                        NEW NUTRITION BUSINESS
Thank you!
                 Visit us at: www.new-nutrition.com

                 Read our blog: blog.new-nutrition.com

                 Follow us on Twitter @NewNutritionB

                 For more information please contact Allene Bruce
                 allene.bruce@new-nutrition.com

© New Nutrition Business

                     NEW NUTRITION BUSINESS
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