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ASIAN HEALTH AND WELLNESS TRENDS IN FOOD &


BEVERAGES

CHINA FOOD & BEVERAGE EXECUTIVE SUMMIT 2013

STACIE WAN
RESEARCH ANALYST
Oct 2013
Euromonitor International

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COVERAGE FOR PRESENTATION

HEALTH AND WELLNESS COVERAGE IN ASIA


Health & Wellness
Packaged Food &
Beverage

Geography

Euromonitor International

China
Hong Kong
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam

Food Intolerance
Organic
Fortified/Functional (FF)
Better For You (BFY):
Reduced Caffeine
Reduced Carbs
Reduced Sugar
Reduced Fat
Naturally Healthy (NH)

KEY HEALTH AND WELLNESS DRIVERS


ASIAS HEALTH AND WELLNESS OVERVIEW
ASIAS KEY HEALTH AND WELLNESS TRENDS

FUTURE OUTLOOK

Euromonitor International

KEY HEALTH AND WELLNESS DRIVERS

25%

36%

IS THE GROWTH OF ASIANS


AGED OVER 65 OVER 2012-17

OF ASIANS WILL BE
OVERWEIGHT/OBESE (BMI > 25
KG/SQ M) BY 2017, FROM 29% IN
2012

Urbanization
CHANGING CONSUMERS
LIFESTYLES & UNBALANCED
DIETS

27%

343
MILLION ASIANS WILL BE
AGED 65 & ABOVE BY 2017

Consumer
Education
INCREASING AWARENESS
SUPPORTED BY GOVERNMENT
CAMPAIGNS AND
MANUFACTURERS' CAMPAIGNS

Euromonitor International

IS THE GROWTH OF ASIANS


ANNUAL DISPOSABLE
INCOME OVER 2012-2017
(CONSTANT TERMS)

Health Care
Costs
CONSUMERS ARE BEGINNING TO
MAKE LIFESTYLE CHOICES

KEY HEALTH AND WELLNESS DRIVERS

CONSUMER EDUCATION INCREASING AWARENESS

Euromonitor International

Source: Various government websites

KEY HEALTH AND WELLNESS DRIVERS

CONSUMER EDUCATION INCREASING AWARENESS

Euromonitor International

Source: Company website

KEY HEALTH AND WELLNESS DRIVERS

RISING HEALTH CARE COSTS IN ASIA


Consumers are beginning to make lifestyle choices

Prevention
Treatment

Euromonitor International

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KEY HEALTH AND WELLNESS DRIVERS


ASIAS HEALTH AND WELLNESS OVERVIEW
ASIAS KEY HEALTH TRENDS

FUTURE OUTLOOK

Euromonitor International

ASIAS HEALTH AND WELLNESS OVERVIEW

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PHARMACEUTICALS VERSUS NUTRIENTS


OTC Pharma Versus Nutrition

TREATMENT

OTC Pharmaceuticals

PREVENTION

VDS

2016
2011

HW Packaged Food

2006

HW Beverages

50,000

100,000

150,000

200,000

250,000

Euromonitor International

Retail Value RSP, US$ mn, Current Prices


Source: Euromonitor International
Notes: Interim findings from latest Health and Wellness research

ASIAS HEALTH AND WELLNESS OVERVIEW

ASIAS HEALTH AND WELLNESS SALES MIX IN 2012

12

Organic
Food
Intolerance
Better For You
(BFY)
11%
Naturally
Healthy (NH)
50%

Better For You (BFY)

Food Intolerance

Fortified/
Functional (FF)
38%

Fortified/Functional (FF)

Naturally Healthy (NH)

Organic

Euromonitor International

Source: Euromonitor International


Notes: Interim findings from latest Health and Wellness research

ASIAS HEALTH AND WELLNESS OVERVIEW

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HEALTH & WELLNESS FOOD & BEVERAGE BY PRIME POSITIONING
Asia sales 2012, retail value sales, US$ billion
General Wellbeing

141

Beauty From Within

0.6

Weight Management

20

Food Intolerance

0.4

Digestive Health

14

Brain Health and Memory

0.3

Endurance

7.2

Cardiovascular Health

0.2

Oral Health

6.9

Vision Health

0.1

Energy Boosting

5.0

Urinary Tract Health

0.1

Bone and Joint Health

1.9

Immune Support

0.1

Respiratory Health

1.5

Euromonitor International

Source: Euromonitor International


Notes: Interim findings from latest Health and Wellness research

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KEY HEALTH AND WELLNESS DRIVERS


ASIAS HEALTH AND WELLNESS OVERVIEW
ASIAS KEY HEALTH TRENDS

FUTURE OUTLOOK

Euromonitor International

KEY HEALTH TRENDS - ASIA

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KEY HEALTH TRENDS - ASIA

Euromonitor International

KEY HEALTH TRENDS - ASIA

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PRO/PRE BIOTIC YOGHURT

Increasing awareness of pro/pre biotic yoghurt in Asia


More consumers now know of the claimed benefits of pro/pre biotic ingredients

Increases ability
to digest food

Increases ability
to absorb calcium

Increases ability
to synthesize
vitamin B

Enhanced
immune system
response

Reduces lactose
intolerance

Promotes antitumor & anticancer activity in


the body

Euromonitor International

Source: Euromonitor International

KEY HEALTH TRENDS - ASIA

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PRO/PRE BIOTIC YOGHURT


10% growth in pro/pre biotic yoghurt in 2012 to reach US$12 billion in Asia
Asia Retail Value Sales 2012 by Sub-category
16
2007-2012 Growth (US$ at fixed ex rates

Pro/Pre Biotic Spoonable, US$3 bn


14

Growth: 13%
(+ US$1.3 bn)

12
10
8

Pro/Pre Biotic Drinking, US$9 bn

6
Growth: 8%
(+ US$1.6 bn)

4
2
0
0

1,000

Euromonitor International

2,000

3,000

4,000

5,000

6,000

US$ million at fixed ex rates, current prices

Source: Euromonitor International


Notes:
1. Size of the bubble denotes the % share of pro/pre biotic sub categories in Asia in 2012
2. Interim findings from latest Health and Wellness research

7,000

8,000

9,000

KEY HEALTH TRENDS - ASIA

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PRO/PRE BIOTIC YOGHURT


10% growth in pro/pre biotic yoghurt in 2012 to reach US$11 billion in Asia

Value growth rate Y-on-Y

US$ million at fixed ex rates, current prices

2012 Sales Value by Geography (US$ million)

Euromonitor International

Geography
Source: Euromonitor International
Notes: Interim findings from latest Health and Wellness research

Value sales
Growth

KEY HEALTH TRENDS - ASIA

PRO/PRE BIOTIC YOGHURT

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India led Asia in 2012 pro/pre biotic yoghurt 70% growth


o 48% growth in retail value sales
o Mainly present in pro/pre biotic drinking yoghurt
In 2007, in India, Yakult, in partnership
with Danone, launched its world
famous brand of probiotic yoghurt,
positioned for digestive health.

Domestic player (Mother Dairy Fruit &


Vegetable Ltd), also launched its first
probiotic yoghurt Nutrifit in India in
2008.

Pro/pre biotic yoghurt


to become a key
product in the Indian
health and wellness
market

In the recent years, we also saw other


brands entering the market like Amul
Lassee
Prolife
Euromonitor
International
Note: Images sourced from various websites

KEY HEALTH TRENDS - ASIA

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PRO/PRE BIOTIC YOGHURT


Pro/pre biotic spoonable yoghurts is only starting to gain a foothold in India

Factors:
- Price
- Modernization of Indias retail structure
- Growing middle-class consumers
Euromonitor International

Note: Images sourced from various websites

KEY HEALTH TRENDS - ASIA

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PRO/PRE BIOTIC YOGHURT

In 2012, China saw the largest increase in terms of absolute sales & took up 28%
of the total sales for pro/pre biotic yoghurt in Asia
Led by pro/pre biotic plain spoonable yoghurt with 42% growth
70% of its pro/pre biotic yoghurt is contributed by pro/pre biotic drinking yoghurt
Asias 2012 Sales Value (US$12 billion)
% breakdown of pro/pre biotic yoghurt
Drinking
Yoghurt
19%

Flavoured
Spoonable
Yoghurt

6%
5%

70%

Plain
Spoonable
Yoghurt

Euromonitor International

China

Fruited
Spoonable
Yoghurt

Outside China
Source: Euromonitor International
Notes: Interim findings from latest Health and Wellness research

FUTURE OUTLOOK

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PRO/PRE BIOTIC: BEYOND YOGHURT

Growth in digestive health in the various food and drinks categories

Feelgood Juice Drink


(Philippines)

Nan Pro (Singapore)

Kagome Labre (Japan)

Yog Active (Singapore)

Gold Soybean Milk Powder (China)

Euromonitor International

Note: Images sourced from various websites

KEY HEALTH TRENDS - ASIA

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ANTIOXIDANTS ON A RISE
Increasing awareness of antioxidants in Asia
More consumers now know of the claimed benefits of antioxidants

Enhanced
immune system

Prevent or slow
the oxidative
damage

Urinary tract
health

Anti-aging
properties

May prevent
formation of age
spots

Support weight
management

Potential anticancer action

Potential stroke
prevention

Heart health
benefits

Euromonitor International

KEY HEALTH TRENDS - ASIA

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ANTIOXIDANTS ON A RISE

Asias value sales of naturally high in antioxidant products like superfruit Juice,
green tea & RTD green tea accounted for US$23 billion in 2012
Performance of drinks which are naturally high in antioxidants
18

US$ bn at fixed ex rates, current prices

16

14

12

CAGR 07-12: 10%

10

2006

CAGR 07-12: 8%

2011

CAGR 07-12: 19%


2 International
Euromonitor

Source: Euromonitor International

Superfruit Juice

Green Tea

RTD Green Tea

KEY HEALTH TRENDS - ASIA

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GREEN TEA REGIONAL PERFORMANCE


40

* Green tea here includes both hot


green tea and RTD green tea

Latin America,37%

2007-2012 Growth (US$ at fixed ex rates)

35

30

25

20
Eastern Europe, 15%
15
Australasia, 11%
Middle East & Africa, 11%
10

Western Europe, 9%
North America, 8%

Asia Pacific, 5%

2,000

4,000

Euromonitor International

6,000

8,000

10,000 12,000 14,000 16,000


2012 Value Sales US$ million

18,000

20,000

22,000

24,000

Source: Euromonitor International


Notes:
1. Size of the bubble denotes the % share of each region in 2011
2. Interim findings from latest Health and Wellness research

KEY HEALTH TRENDS - ASIA

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GREEN TEA IN ASIA

Lemon Green Tea


Brown Rice Green Tea

Plum Green Tea

Passion Fruit Green Tea

Sugar free

Reduced Sugar

Fortified/functional

Organic

Euromonitor
International
Mint
Green Tea

Camellia Green Tea


Lavender Green Tea
(Sugar free)

Rose Green Tea


Note: Images sourced from various websites

KEY HEALTH TRENDS - ASIA

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SUPERFRUIT JUICE REGIONAL PERFORMANCE


40

* Superfruit juice here includes:


NH superfruit 100% juice
NH superfruit juice (up to 24% juice)
NH superfruit nectars (25-99% juice)

2007-2012 Growth (US$ at fixed ex rates)

35

30

25
Latin America,21%

Asia Pacific, 17%

20

Middle East & Africa, 19%


15
Eastern Europe, 12%
10
North America, 11%

5
Western Europe, 4%
0
Euromonitor International

500

1,000

1,500
2012 Value Sales US$ million

2,000

2,500

3,000

Source: Euromonitor International


Notes:
1. Size of the bubble denotes the % share of each region in 2011
2. Interim findings from latest Health and Wellness research

KEY HEALTH TRENDS - ASIA

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SUPERFRUIT JUICE PERFORMANCE IN ASIA

Superfruit juice (up to 24% juice) is the most popular among Asians & had the fastest
growth rate of 16% in 2012

3%
7%

89%
NH Superfruit 100% Juice

NH Superfruit Juice (up to 24% Juice)


Euromonitor International

NH Superfruit Nectars (25-99% Juice)


Source: Euromonitor International
Notes: Interim findings from latest Health and Wellness research

Note: Images sourced from company websites

KEY HEALTH TRENDS - ASIA

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SUPERFRUIT JUICE IN ASIA


Increasing local players are introducing their variant of superfruit juice

Peel Fresh
(Malaysia)

Gu Dao
(Taiwan)

Country Choice
(Indonesia)

Euromonitor International

Pokka (Singapore)

Note: Images sourced from various websites

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KEY HEALTH AND WELLNESS DRIVERS


ASIAS HEALTH AND WELLNESS OVERVIEW
ASIAS KEY HEALTH TRENDS

FUTURE OUTLOOK

Euromonitor International

FUTURE OUTLOOK

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PRO/PRE BIOTIC YOGHURT: OPPORTUNITIES 2012-2017


7% CAGR constant value growth in pro/pre biotic yoghurt over the forecast
period, to reach US$17 billion in Asia in 2017
% CAGR 2011-2016 (fixed ex rates, constant prices)

Asia Retail Value Sales: 2017 and Growth Potential (2012-2017)


15

10
Pro/Pre Biotic Spoonable
(US$5.5 bn)

Pro/Pre Biotic Drinking


Growth 8%
(+ US$1.2 bn)

Growth 7%
(+ US$3.1 bn)

(US$11.5 bn)

0
1,000
Euromonitor International

10,000
2017 Retail Sales (US$ million)

Source: Euromonitor International


Notes:
1. Size of the bubble denotes the % share of pro/pre biotic sub categories in Asia in 2017
2. Interim findings from latest Health and Wellness research

100,000

FUTURE OUTLOOK

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PRO/PRE BIOTIC YOGHURT: OPPORTUNITIES 2012-2017

10000

7557

2017 Sales Value by Geography (US$ million)

5404

50%

Sales Value US$ million

2256
40%
1000
332

326
211

31%

211

189

181

30%

129

95

100

20%

25
17%

13

10
5%
5%

6%

2%

5%

6%
3%

Euromonitor International

Geography
Source: Euromonitor International
Notes: Interim findings from latest Health and Wellness research

10%

5%
2%

2%

4%

0%

% CAGR 2012-2017(fixed ex rates, constant prices

8% CAGR constant value growth in pro/pre biotic yoghurt over the forecast
period, to reach US$17 billion in Asia in 2017

FUTURE OUTLOOK

SALES OF PRO/PRE BIOTIC YOGHURT FAR FROM SATURATION33


Pro/pre biotic Yoghurt: Per Capita Expenditure 2012/2017
India
Vietnam
Indonesia
Philippines

Geogrpahy

China
Malaysia
2016

Thailand

2011
Taiwan
Singapore
Hong Kong, China
South Korea
Japan
Euromonitor International

5.00

10.00 15.00 20.00 25.00 30.00 35.00 40.00


Per capital expenditure US$ (fixed ex rates), constant terms

Source: Euromonitor International


Notes: Interim findings from latest Health and Wellness research

45.00

50.00

FUTURE OUTLOOK

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PRO/PRE BIOTIC BEYOND YOGHURT

What do the other non-Asian countries have?

BioGaia (Sweden)
Kefir (US)

Good Belly (US)

BioGaia (US)
Euromonitor International

Note: Images sourced from various websites

Union Bio (Argentina)

Cricketer Farm (UK)

FUTURE OUTLOOK

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ANTIOXIDANTS: OPPORTUNITIES 2012-2017

Asias value sales of naturally high in antioxidant products like superfruit juice,
green tea & RTD green tea accounted for a constant value of almost
US$27billion in 2017
Performance of drinks which are naturally high in antioxidants: 2012/2017
20,000

CAGR 12-17: 15%

US$ bn at fixed ex rates, constant prices

18,000
16,000
14,000
12,000
CAGR 12-17: 3%

2011

10,000

2016
8,000
6,000
CAGR 12-17: 12%
4,000

2,000 International
Euromonitor
0
Superfruit Juice

Green Tea

RTD Green Tea

FUTURE OUTLOOK

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ANTIOXIDANTS: OPPORTUNITIES 2012-2017

Green tea is still


expected to be the key
with RTD green tea

More green tea variants


boosting different
antioxidant levels
Convergence with
other health and
wellness trends
Euromonitor International

Sugar free

Reduced Sugar

Organic

Fortified/functional (calcium,
vitamins, etc)

Note: Images sourced from various websites

FUTURE OUTLOOK

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SUPERFRUIT BEYOND JUICE

Clorets Cool Berry Mint Stick Gum


(Thailand)

B-ing Babe (Thailand)

Kelloggs Special K
(Singapore)

Choc Goji
(Singapore)

Mentos 3D gum (Thailand)

Euromonitor International

Wrigleys Extra Professional


(Hong Kong)

7up Raspberry
(Singapore)

Liptop (Hong Kong)

Pokka Ice Blueberry Tea


(Singapore)
Note: Images sourced from various websites

FUTURE OUTLOOK

SUPERFRUIT BEYOND JUICE

What do the other non-Asian countries have?

Euromonitor International

Note: Images sourced from various websites

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THANK YOU FOR LISTENING

Q&A
Stacie Wan
Research Analyst
Hui.wan@euromonitor.com.cn

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