SALT PURCHASING PATTERNS GLOBALLY ALAN ROWNAN ETHICAL LABELS ANALYST, EUROMONITOR INTERNATIONAL FOOD MATTERS LIVE, LONDON 2015

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Passport Nutrition INTRODUCTION

Packaged Food Soft drinks

Retail volume

SALT: MARKET OVERVIEW

INDUSTRY APPROACH TO SALT REDUCTION

FOCUS ON THE BIG PICTURE:

OPPORTUNITIES

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Half of WHO’s 5 Grams of Salt is from Packaged Food SALT: MARKET OVERVIEW

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Salt Purchased per Capita per day from Packaged Food (2009-2019)

North America

Western Europe

Latin America

Australasia

Middle East andAfrica

Asia Pacific

Eastern Europe

Western Consumers Still Top Rank In Salt Purchased SALT: MARKET OVERVIEW

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Salt Purchased and Fresh Food Sales 2009-2019 Developed vs Emerging markets

Salt Purchased Developed Markets Salt Purchased Developing Markets

Fresh Food Volume Sales Developed Markets Fresh Food Volume Sales Developing Markets

Developed Markets: consumers not expected to revert to fresh food

SALT: MARKET OVERVIEW

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Prioritise countries exceeding the WHO’s daily salt intake goal SALT: MARKET OVERVIEW

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Mex

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USA

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Salt per Person per Day: Top and Bottom 10 Countries

WHO daily

recommended intake

Top 10 countries

Bottom 10 countries

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Where Does Consumers Salt Come From SALT: MARKET OVERVIEW

33%

25%

9%

9%

8%

16%

Salt purchased by product category globally

Sauces, Dressings andCondiments

Bakery

Chilled Processed Food

Dried Processed Food

Dairy

Others

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0%

10%

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Salt purchased from packaged food by product type (% 2014)

Others

Dairy

Dried Processed Food

Chilled Processed Food

Sauces, Dressings &Condiments

Bakery

Target Bakery and Sauces SALT: MARKET OVERVIEW

MARKET OVERVIEW

INDUSTRY APPROACH TO SALT REDUCTION

FOCUS ON THE BIG PICTURE:

OPPORTUNITIES

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Public and private initiatives strongly raise consumer awareness INDUSTRY APPROACH TO SALT REDUCTION

Importance of Limited Salt Consumption as a Healthy Behaviour, 2011

Souce: Euromonitor International survey

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14 INDUSTRY APPROACH TO SALT REDUCTION

Public and private initiatives strongly raise consumer awareness

UK

USA

Nordic Countries

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Heinz

General Mills -Progresso

The Health/Taste Dilemma

INDUSTRY APPROACH TO SALT REDUCTION

The Health/Taste Dilemma

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Top BFY Reduced Salt Food – US Excluded - Retail Value RSP

2014 Retail Value 2014-19 Value CAGR

BFY reduced salt not sufficient to meeting the WHO’s guidelines INDUSTRY APPROACH TO SALT REDUCTION

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Approaches to salt reduction by stealth – one size does not fit all INDUSTRY APPROACH TO SALT REDUCTION

Salt Reduction

Goal

Salt Substitutes

Salt Enhancers

Changing Salt Crystal Structure

Changing Product

Structure

MARKET OVERVIEW

INDUSTRY APPROACH TO SALT REDUCTION

FOCUS ON THE BIG PICTURE:

OPPORTUNITIES

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19 FOCUS ON THE BIG PICTURE: OPPORTUNITIES

Japan

3.6g per capita per

day in sauces,

dressings, condiments

Germany 1.8g per

capita per day in chilled

processed food

Mexico

5.0g per capita per

day in bakery

Saudi Arabia

1.2g per capita per

day in dairy

Opportunities by Top Global Category Leaders

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Top 10 for Salt Purchased from Crisps vs. Purchased from Bakery

Crisps Bakery

Reducing Salt in Salty Snacks is Not Enough FOCUS ON THE BIG PICTURE: OPPORTUNITIES

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Category Grams per person per day Annual total tonnes

Sauces, Dressings and Condiments 0.92 1,836,118.50

Bakery 0.65 1,290,344.40

Chilled Processed Food 0.25 489,023.40

Dried Processed Food 0.24 485,048.50

Dairy 0.24 469,378.00

Noodles 0.22 439,919.10

Sweet and Savoury Snacks 0.11 216,282.50

Frozen Processed Food 0.09 179,923.20

Canned/Preserved Food 0.09 177,882.60

2019: 3 million tonnes of salt can be replaced in bakery and sauces FOCUS ON THE BIG PICTURE: OPPORTUNITIES

Salt purchased from packaged food: largest

categories in 2019

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Opportunities for reformulations

• Fresh food not on the table. • Develop and launch low salt reformulated products. • Sauces and bakery shows the best potential for reformulations.

Geographical considerations

• Don’t ignore regional context. • For instance, bakery is the main source of salt from packaged food in

almost all regions but Asia Pacific, where the category that accounts for the largest share is sauces, dressing and condiments.

No one size fits all solution

• Application of existing reduction by stealth solutions to categories expected to grow faster in the forecasted period.

• No single solution suitable for all packaged food categories have been developed so far, which leaves scope for further manufacturers’ R&D developments.

Key takeaways… FOCUS ON THE BIG PICTURE: OPPORTUNITIES

THANK YOU FOR LISTENING

Alan Rownan– Ethical Labels Analyst

@Emi_ARownan

www.blog.Euromonitor.com

www.Euromonitor.com