Meeting consumer expectations: new product development and...

zenithinternationalspecialist consultants to the food and drink industries worldwide

STRATEGY & MANAGEMENT MERGERS & ACQUISITIONS COMMERCIAL & MARKET OPERATIONS & TECHNICAL WATER & ENVIRONMENT PACKAGING & DISTRIBUTION

Meeting consumer expectations: new product

development and future opportunities for dairy,

lactose and gluten-free

Anne Wong-Erven, Senior Consultant

18th November 2015

Food Matters Live, London

zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 20122

What we will see today

• The current situation

• What is driving demand for these products today?

• New product development for dairy, lactose, and

gluten-free

• Summary and future outlook


The situation

3

Increased energy Healthier dietWeight management


Consumer expectations


Dairy and

lactose-free


The situation

6

Lactose intolerance worldwide

Dairy and

lactose-

free


The situation

7

International dairy market

191

193

197

200

186

188

190

192

194

196

198

200

202

2008 2009 2010 2011

Milk/yogurt/cheese consumption in 33 countries

000 tonnes

+1.2%

+1.6%

+1.7%

Dairy and

lactose-

free


Lactose-free misconceptions

8

• Gastrointestinal problems mistakenly self-diagnosed as lactose-intolerance

• Lactose intolerance is the same as milk allergy

• Lactose intolerant should stop dairy consumption

• Lactose free not real dairy

So some lactose intolerant may miss out on dairy nutrients such as calcium, phosphorus,

vitamin D and proteins.

Dairy and

lactose-

free


Misconception remedy

9

Education

• To dispel myths

• To ensure consumers understand lactose free dairy benefits

Lactose free does not mean avoid dairy

Dairy and

lactose-

free


Lactose-free trends

10

• Widening product portfolio

• Co-existence with dairy

• Rising consumer awareness

• Self diagnosis boosting demand

• Better tasting products

• Fortification

• New categories

• Lower fat and sugar using all-natural sweeteners

• Packaging range extension

Dairy and

lactose-

free


Lactose-free brand leaders

11

Dairy and

lactose-

free


NPD: Lactose-free milk

12

Dairy and

lactose-

free


NPD: Lactose-free drinks

13

Dairy and

lactose-

free


NPD: Lactose-free yogurt

14

Dairy and

lactose-

free


NPD: Lactose-free yogurt drinks

15

Dairy and

lactose-

free


NPD: Lactose-free cream

16

Dairy and

lactose-

free


NPD: Lactose-free butter

17

Dairy and

lactose-

free


NPD: Lactose-free cheese

18

Dairy and

lactose-

free


NPD: Lactose-free desserts and confectionery

19

Dairy and

lactose-

free


Dairy-free alternatives

20

• Soy

• Cereal – rice, oats, barley

• Nuts – almonds, cashew, coconut, hazelnut, walnut

• Plant - sunflower

Dairy and

lactose-

free


Dairy-free innovation

21

• Fortification with vitamins

A, B2, B12, D2, E

• Fortification with minerals

Mainly calcium

• Clean label

Lactose free, dairy free, cholesterol free, GMO free, additive free, preservative free

• Organic ingredients

Dairy and

lactose-

free


Dairy-free trends

22

• Ever broader choice beyond soy

• Soy losing halo –health, genetic modification

• Almond rising –high calcium, high antioxidants, low calorie, no saturated fat, vitamin E, vegan

• Cereals and nuts appearing

• Blends beginning

• Range extensions from milk to yogurt, desserts, ice cream

• Fortification with vitamins/minerals

• Clean label emphasis

Dairy and

lactose-

free


Dairy-free brand leaders

23

Dairy and

lactose-

free


NPD: Dairy-free milk alternatives

24

Dairy and

lactose-

free


NPD: Dairy-free drinks

25

Dairy and

lactose-

free


NPD: Dairy-free desserts

26

Dairy and

lactose-

free


NPD: Dairy-free yogurt

27

Dairy and

lactose-

free


NPD: Dairy-free cheese

28

Dairy and

lactose-

free


Gluten-free


The situation

30

Coeliac affects up to 5%

of people globally

Gluten-

free


Gluten-free overview

31

• Consumer base – coeliac, gluten sensitivity, lifestyle choice

• Present in foods that are difficult to avoid day to day

• Bakery products, pizza/pasta, cereals/snacks, baby foods, ready meals

• Less obvious presence – confectionary, sausages, canned soups, beer

Gluten-

free


Sector trends

32

• Bakery holds approximately 65% of the market share by value

• Pasta, baby food and ready meals – on the rise

• High demand for breakfast cereals, snacks, soups and sauces

• Foods free from more than one allergen – such as wheat, nut, dairy + gluten-free

• More globally recognised brands are joining this trend

• Rise in own label

Gluten-

free


Global players

33

Gluten-

free


NPD: Bakery

34

Gluten-

free


NPD: Cereal

35

Gluten-

free


NPD: Pasta

36

Gluten-

free


NPD: Sauces

37

Gluten-

free


NPD: Baby food

38

Gluten-

free


NPD: Ready meals

39

Gluten-

free

http://www.kuisine.com.au/cottage-pie-2/

http://www.kuisine.com.au/cottage-pie-2/


NPD: Snacks and confectionery

40

Gluten-

free


NPD: Others

41

Gluten-

free


Future outlook

42

Gluten-

free

• Market is currently lead by consumption in the US in terms of both volume and value

• Europe – greatest potential for growth in the next 5 years, with France and Italy driving

this growth

• Established markets in the United States and Australia will continue upward trend

• Opportunities for growth in Asia-Pacific region


Future outlook

43

Gluten-

free

• Innovative use of “supergrains” will continue to drive new product development

• quinoa (gluten-free and high protein)

• polenta (gluten and wheat free)

• Bakery will drive growth in new markets

• Well established markets will see further expansion into niche food sectors

• Organics

• Children’s foods

• Expansion in branded and own label

• Fortification with vitamins/minerals is an emerging trend

For more information on this presentation or on any of Zenith’s services, please contact:

Or telephone Zenith’s head office on +44 (0)1225 327900.

STRATEGY & MANAGEMENT MERGERS & ACQUISITIONS COMMERCIAL & MARKET OPERATIONS & TECHNICAL WATER & ENVIRONMENT PACKAGING & DISTRIBUTION

zenithinternationalspecialist consultants to the food and drink industries worldwide

www.zenithinternational.com

www.globaldrinks.com

www.functionaldrinksnews.com

Anne Wong-Erven

[email protected]

http://www.zenithinternational.com/

http://www.globaldrinks.com/

http://www.functionaldrinksnews.com/

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