The future of packaged food: How ethical living will impact the … · 2019-04-12 · THE FUTURE OF...

The future of packaged food: How ethical living will impact the market

VIV Asia, Bangkok, 14th March 2019

Tim Foulds, Head of Research (ANZ)March 2019

© Euromonitor International

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Euromonitor International network and coverage

THE FUTURE OF PACKAGED FOOD: HOW ETHICAL LIVING WILL IMPACT THE MARKET


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Passport research industries


Apparel and Footwear

Alcoholic Drinks

Consumer Electronics

Beauty and Personal Care

Tissue and HygieneFresh Food

Health and Wellness

Home and Garden

Hot Drinks

Home Care

Luxury Goods

Personal Accessories

Eyewear

Consumer Health

Consumer Appliances Packaged Food

Pet Care

Soft Drinks

Tobacco

Toys and Games

Consumer Products

Consumer Finance

Consumer Foodservice

Ingredients

Packaging

Retailing

Travel

Services Suppliers

Automotive

Competitor AnalyticsNutrition

Institutional Channels Industry Forecast Model

Special Market Tools

Lifestyles

Industrial

Digital Consumer

Cities

Economy, Finance & Trade

Households

Economies

Population

Business Dynamics

Consumers

Income & Expenditure

Ethical Labels


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01.

Global overview of meal solutions

02.

Megatrend: Ethical Living

03.

Cooking and eating trends

04.

Bringing it all together

05.

What’s next?

FUTURE OF MEAL SOLUTIONS: ETHICAL LIVING INNOVATIONS FOR THE MODERN CONSUMER

Overview



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Global overview of meal solutions


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What are meal solutions?


Sources: www.mbsf.org/gluten-free-meal-delivery-services, Annie’s, CJ Chieljedang, Blue Apron

Eat Heat Cook

Prepare Create

Ready to…


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53% of packaged food for meals


37%

24%

23%

16%

Dairy Products and Alternatives

Staple Food Snacks Cooking Ingredients and Meals

Packaged Food


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Asian markets lead growth


0

5

10

15

20

25

30

China India US SouthKorea

SaudiArabia

Indonesia Egypt Vietnam SouthAfrica

Thailand

USD

bill

ion

s

Top 10 Absolute Growth Markets in Cooking Ingredients and Meals and Staple Food 2013-2018


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Megatrend:Ethical Living


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There are five key drivers for Ethical Living


48bn 60% 84%Transactions paid online in China in 2017 (2x of US, 6x of South Korea)

Surveyed respondents who are worried about

climate change

Being active in the community is important:

neutral or agree


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Ethical Living commonly addressed by Ethical Labels


Alternative Ethics

Religious Labels

Plant-based

Plastic-free

Clean Label

Megatrend shaping consumer markets up to 2030

Ethical Living

Environment

Wellbeing

Society

Top industry trends 2018-2023

GlobalImportance


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Clean label: high demand for real ingredients


AustraliaHighest proportion of clean label claims on

its packaged food

$260 bnGlobal market size of clean label food and

drinks 20180 50,000 100,000 150,000 200,000

No Antibiotics

BPA Free

No Hormones

No Added Sugar

No MSG

GMO Free

All Natural

No Artificial

USD mn

Global Clean Labels by Type 2018


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Plant-based: from health to lifestyle


44%People with meat-eating restrictions

globally

90%Consumers trust the

vegan label or are neutral towards it

58% rate “extremely important”

Eating fruit and vegetables

Regular exercise

Taking dietary/nutritionalsupplements

“When thinking about your health, how important are each of the following attributes to you?”

Importance


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Religious labels: related to food safety


Soft Drinks15%

Hot Drinks12%

Packaged Food73%

Asia Pacific90%

Breakdown of Halal Packaged Food and Drinks Sales in the World, 2017

47%Global Muslim population reside in Indonesia, India

and Pakistan in 2017

DairyLargest value size of

Kosher-certified packaged food in 2018


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Plastic-free: slow adoption from awareness


0%

20%

40%

60%

80%

100%

MiddleEast and

Africa

EasternEurope

LatinAmerica

WesternEurope

Asia Pacific NorthAmerica

Australasia

Recyclable: Percentage of Packaged Food and Drinks by Region 2018

Recyclable Non-recyclable

63%People who try to have

a positive impact on the environment

11%People willing to pay more for recyclable

packaging


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In summary…



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Cooking and eating trends

Snackification

Portable

Satiating

Healthy

Ancient Grains

Flexitarian Lifestyle

Gourmet

Quality Food

Experience


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Meals: growth beyond lunch and dinner


0%

10%

20%

30%

40%

50%

60%

70%

80%

Breakfast Brunch Lunch Tea-time Dinner Supper

% o

f R

esp

on

den

ts

“On a typical day, at what time do you eat a meal?”

2011 2017Source: Euromonitor International Global Consumer Survey,

2011 n=15,933; 2017 n=28,466


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Snacks: growth at typical meal times


0%

10%

20%

30%

40%

50%

60%

70%

80%

Breakfast Brunch Lunch Tea-time Dinner Supper

% o

f R

esp

on

den

ts

“On a typical day, at what time do you eat a snack?”

2011 2017Source: Euromonitor International Global Consumer Survey,

2011 n=15,933; 2017 n=28,466


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Restaurants now define the broader food industry

Menus Curation Immediacy Experience


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In summary…



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Bringing it all together


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Innovations that integrate both


Ethical Living

Clean label

Plastic-free

Plant-based

Religious labels

Food trends

Snackification

Healthy

Gourmet

Future Food

Innovation


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VegMe, Sweden: adventurous yet holistically clean


Climate-smart

Locally sourced

Gourmet flavours

Source:Vegme Ltd


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Pedon More Than, Italy: alternative pasta


“Lentil pasta is more filling, and compared with normal pasta, has double protein, one third less carbs and double fibre, and this is also important.”

- Pedon, Marketing

Legumes100%

Natural & Kosher

Six minutes

cook time

Source: Pedon SpA


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Bugsolutely Cricket Pasta, Thailand: insect protein


SuperfoodInsect

farmingLocal

culture

Source: Bugsolutely Thailand, Bugsolutely China


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Hellmann’s Real Ketchup, US: limited ingredients


True Source

certified

Source: Unilever Group, Kraft Heinz Co

“We saw this as an opportunity to elevate an American staple by stripping it down to only the most essential ingredients.”

- Hellmann’s Marketing Director

Six ingredients

Sweetened with honey


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¡YAPPAH! Protein Crisps, US: upcycling food waste


Rescued food

waste

Chef-crafted recipe

Source: Tyson Foods Inc

Recyclable on-the-go packaging


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What’s next?


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What’s next: Alternative and sustainable protein


2020 2030

Vegan labelling

2010s

2018

US, UK, and Germany are major markets for

vegan products

Relative interest in “Flexitarian” via Google

Search 2015-2018

2015 20182016 2017

Total human population set to increase by almost 1

billion people worldwide

Vision 2020 by ReFood in UK is expected to reduce greenhouse gases

by 27 million tonnes if successful

Flexitarianism

Insect protein beyond tradition

Upcycling


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What’s next: Legitimising ethical


Holistically ethical

Blockchain for transparency

Natural, no artificial

Limited ingredients

Focus on source

Certified ethical

USD1.4 trillion

Cooking ingredients and meals and staple foods global value sales 2023

Rice, Pasta & Noodles

Largest category in Asia Pacific within cooking

ingredients and meals and staple food

Baked Goods

Largest increase in absolute value sales globally 2018-

2023


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Key takeaways


• Brings menu curation and gourmet flavours to the home through meal solutions

Foodservice

• Increasingly mainstream in packaged food as an indicator of quality and brand identity

Ethical living

• Potential to improve transparency in the supply chain for businesses and consumers

Certification

Thank you

Tim Foulds, Head of Research

[email protected]

Linkedin.com/in/tim-foulds

@euromonitor

www.facebook.com/euromonitorinternational

www.youtube.com/Euromonitor

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