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Sustainability: Consumer trends, innovation opportunities and the impact on future diets

Matthew Perry, Associate Analyst

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Agenda

About GlobalData

Consumer perceptions of sustainability

Key innovation opportunities

Looking ahead: where next for sustainability?

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About GlobalData

GlobalData provides a range of ways that clients can access our data and insights to meet their individual business needs:

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• Market Intelligence • Product Strategy

Management • Competitive Intelligence • Strategic Planning • Marketing • Channel and Sales

Management

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• Consumer • Retail • Technology • Healthcare • Financial Services

4,000 of the world’s largest companies make better and more timely decisions thanks to our unique data, expert analysis and innovative solutions delivered through a single platform

Our Solutions

Our Value Proposition

Our Expertise

Our Industry Coverage

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About our Consumer & Retail practice

15+ YEARS creating consumer insight

2 MILLION new product innovations tracked

OVER 600 multi-lingual analysts and researchers

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1,000+ CLIENTS portfolio of the world’s largest CPG and Retail companies

CLIENTS PORTFOLIO

TRACKING 50 sectors

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50,000 brands

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Business Intelligence teams. Their data is key not only to

monitor market reality, but also to build our forecasts,

support strategic decisions, and set future objectives.”

Strategic Planning Director,

The Coca-Cola Company

Our Consumer & Retail practice provides unparalleled data and insights to over 1,000 of the world’s largest companies across the CPG and Retail industries

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About GlobalData’s primary consumer research

So far in 2017, we have surveyed over 26,000 respondents in 36 countries worldwide

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About GlobalData’s TrendSights framework

TrendSights highlights the trends shaping consumer behaviour and innovation

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Sustainability has three principal elements

ECONOMIC SOCIAL

ENVIRONMENTAL

S

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Several challenges must be addressed to achieve sustainability

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Several challenges must be addressed to achieve sustainability

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Several challenges must be addressed to achieve sustainability

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Several challenges must be addressed to achieve sustainability

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36% 31% 34% 35% 35% 33% 32% 26%

42% 43% 40% 41% 42% 43% 44% 45%

Female Male 18-24 25-34 35-44 45-54 55-64 65+

Important

Very important

Consumers across all age groups recognize the importance of sustainability

Global: “How important do you consider living an ethical or sustainable lifestyle to be in creating a feeling of wellbeing or wellness?”

78% 74% 74% 76% 77% 76% 76% 71%

GlobalData’s primary consumer research

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Sustainability is currently a secondary factor in food choices, but its influence will grow in importance

Global: Consumers who are always or often influenced by the following factors when choosing food products, top six responses

15%

21%

24%

26%

29%

33%

26%

32%

34%

35%

35%

29%

How ethical/environmentally-friendly/socially-responsible the product is

How enjoyable or unique the product is

How well the product is tailored to my needs andpersonality

How well the product aligns with my time and moneyconstraints

How familiar/trust-worthy/risk-free the product feels

How the product impacts my health and wellbeing

Always influences my product choice Often influences my product choice

62%

65%

61%

58%

53%

41%

GlobalData’s primary consumer research

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Changing diets are playing a part in the sustainability agenda

Global: “What best describes your daily diet?”

GlobalData’s primary consumer research

54%

23%

14%

5%

3% 2% No dietary requirements

Low meat diet

High meat diet

Vegetarian

Pescetarian (no meat, butfish and seafood)

Vegan

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Meat moderation and avoidance is becoming more popular

Consumer’s daily diets, 2014 vs 2017

Vegan US consumers 2014 = 1% 2017 = 6%

GlobalData’s primary consumer research

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Consumer’s daily diets, 2014 vs 2017

Vegan US consumers 2014 = 1% 2017 = 6%

Vegetarian Chinese consumers: 2014 = 2% 2017 = 4%

GlobalData’s primary consumer research

Meat moderation and avoidance is becoming more popular

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Consumer’s daily diets, 2014 vs 2017

Vegan US consumers 2014 = 1% 2017 = 6%

Vegetarian Chinese consumers: 2014 = 2% 2017 = 4%

German consumers following a low meat diet: 2014 = 26% 2017 = 44%

GlobalData’s primary consumer research

Meat moderation and avoidance is becoming more popular

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The media is raising awareness of the connection between diet and sustainability

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Changing diets will be fundamental to achieving a more sustainable future

GlobalData has identified three key opportunities to explore within this space to tap into demand for more sustainable diets

Authentic

sustainability Plant power

Sustainable

Luxury

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Changing diets will be fundamental to achieving a more sustainable future

GlobalData has identified three key opportunities to explore within this space to tap into demand for more sustainable diets

Authentic

sustainability Plant power

Sustainable

Luxury

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60%

35%

29%

17%

16%

17%

14%

14%

13%

5%

10%

16%

22%

24%

27%

32%

34%

39%

Processed meats e.g. sausage

Red meat

Soy

Eggs

Poultry

Dairy products

Nuts and seed

Pulses and beans

Fish/ seafood

Consumers are seeking healthier and more environmentally friendly protein sources

Global: "Which type of protein are you trying to consume or avoid?"

GlobalData’s primary consumer research

Processed meats

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Innovation insight: Innovate to create plant-based products that replicate consumption experiences

Hackplus – Minced Meat Minced product containing 70% meat and 30% plant protein, with 30% less fat and cholesterol

Impossible Foods – Impossible Burger Faux meat burger, with a patty made from wheat, coconut oil, potatoes and heme

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Innovation insight: Innovate to create plant-based products that replicate consumption experiences

Hackplus – Minced Meat Minced product containing 70% meat and 30% plant protein, with 30% less fat and cholesterol

Impossible Foods – Impossible Burger Faux meat burger, with a patty made from wheat, coconut oil, potatoes and heme

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Changing diets will be fundamental to achieving a more sustainable future

GlobalData has identified three key opportunities to explore within this space to tap into demand for more sustainable diets

Authentic

sustainability Plant power

Sustainable

Luxury

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Supporting different dimensions of sustainability can give brands a competitive edge

Global: Consumers who said they would consider buying products that support the following causes

GlobalData’s primary consumer research

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Innovation implications: Delivering an authentic sustainability message

Hippeas - Organic Chickpea puffs Support Farm Africa, a charity which helps chickpea farmers overcome poverty

Justin’s – Honey Peanut Butter Brand supports pollinator conservation and sources ingredients responsibly

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Innovation implications: Delivering an authentic sustainability message

Hippeas - Organic Chickpea puffs Support Farm Africa, a charity which helps chickpea farmers overcome poverty

Justin’s – Honey Peanut Butter Brand supports projects aiming to alleviate poverty and promote biodiversity

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Changing diets will be fundamental to achieving a more sustainable future

GlobalData has identified three key opportunities to explore within this space to tap into demand for more sustainable diets

Authentic

sustainability Plant power

Sustainable

Luxury

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Sustainability can be a driver of premium purchase

23%

24%

35%

36%

60%

Famous brand

Exclusivity/uniqueness

Environmentally friendly

Authenticity/genuineness

High quality ingredients

Global: “Which of the following factors would encourage you to buy high-end/luxury/premium products?”, top 5 responses

GlobalData’s primary consumer research

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Innovation implications: Leveraging sustainability to enhance a product’s premium appeal

ChariTea Fair trade and organic premium tea brand that supports social projects in the growing regions

Sir Kensington’s – Fabanaise Egg-free, premium quality vegan mayonnaise made with aquafaba

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Innovation implications: Leveraging sustainability to enhance a product’s premium appeal

ChariTea Fair trade and organic premium tea brand that supports social projects in the growing regions

Sir Kensington’s – Fabanaise Egg-free, premium quality vegan mayonnaise made with aquafaba

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Looking ahead: where next for sustainability in this space?

• Technological advancements

• Cruelty-free, cultured “chicken” meat by 2022

• Potential to facilitate meat experimentation

Lab-grown meats

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Looking ahead: where next for sustainability in this space?

• Insects are a healthy,

sustainable alternative to animal protein

• Must overcome Western taboo of eating insects

Edible Insects

• Technological advancements

• Cruelty-free, cultured “chicken” meat by 2022

• Potential to facilitate meat experimentation

Lab-grown meats

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Looking ahead: where next for sustainability in this space?

• Insects are a healthy,

sustainable alternative to animal protein

• Must overcome Western taboo of eating insects

• Smart devices, “Save the food” (Amazon Alexa skill)

• Smart packaging and brand traceability (RIPE juice tracking code)

Smart sustainability Edible Insects

• Technological advancements

• Cruelty-free, cultured “chicken” meat by 2022

• Potential to facilitate meat experimentation

Lab-grown meats

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Thank you

Presenter – Matthew Perry

matthew.perry@globaldata.com

+44 (0) 161 359 5408

@MattPerry_GD

www.globaldata.com