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Understanding Understanding

Packaged Food TrendsPackaged Food Trends

In Asia PacificIn Asia Pacific

By Farzana Mohsin

May 2005

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Presentation OutlinePresentation Outline

Euromonitor - An introduction

Food Product Coverage

Asia Pacific - Country Coverage

Emerging Food Trends

Food - A Global Overview

Packaged Food Market

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Understanding Understanding

Euromonitor International Euromonitor International &&

ItIt’’s Definitionss Definitions

- An Introduction

- Packaged food sectors

- Asia Pacific countries

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Euromonitor Euromonitor -- An IntroductionAn Introduction

Business info provider & analyst since 1972

Regional Offices in London, Chicago, Singapore, Shanghai

Global network of researchers (70+ countries)

Independent & privately owned

Hardcopy report, directories & online systems

Client-driven consultancy projects

Client base: International FMCG manufacturers, Retailers, Packagers, Ingredient suppliers, & Banks/ Consultancies

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Product Coverage Product Coverage -- Packaged FoodPackaged Food

19 Packaged food categories, 250 sectors:

• Baby Food

• Bakery Products

• Canned Food

• Chilled Food

• Confectionery

• Dairy Products

• Dried Food

• Frozen Food

• Ice-Cream

• Meal Replacement Drinks

• Noodles

• Oils & Fats

• Pasta

• Ready Meals

• Savoury Snacks

• Snack Bars

• Soup

• Spreads

• Sauces, Dressings, Condiments

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Country Coverage Country Coverage -- Asia PacificAsia Pacific

12 major countries + 33 minor countries:

• China

• Hong Kong, China

• India

• Indonesia

• Japan

• Malaysia

• Philippines

• Singapore

• South Korea

• Taiwan

• Thailand

• Vietnam

NB. Euromonitor has covered Australia & New Zealand separately under Australasia. For list of minor countries, please approach us after conference.

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Emerging Trends Emerging Trends

in Packaged Foodin Packaged Food

in Asia Pacificin Asia Pacific

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1) Convenience1) Convenience

Packaging plays a huge rolePackaging plays a huge role⇒ Increasing hectic lifestyles

⇒ Consumers seeking convenience in all forms (e.g. Shopping habits, Clothing, F&B etc)

⇒ Increasing number of individual portions packaged to be consumed on the move or outside the home

⇒ Increasing need for packaging that are easy to open and can be re-sealed

Easy to prepare Easy to prepare ⇒ Rise in easy to prepare food products

⇒ Instant soup, greater variety in cup noodles

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Emphasis on ingredients & Emphasis on ingredients & traceabilitytraceability⇒ Result of food scandals & health crisis

⇒ Organic, all natural, additive free

⇒ Food safety is a priority

2) Health 2) Health

Emphasis on Functional/Emphasis on Functional/FortifiedFoodFortifiedFood⇒ Rising consumer health consciousness

⇒ Gum fortified with vitamin supplements such as multi vitamins (8types), royal jelly, blue berry extract, amino-acid

⇒ Instant noodles/soup fortified with collagen

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3) Taste3) TasteProducts with poor taste will not sellProducts with poor taste will not sell⇒ Manufacturers receive support from ingredient suppliers

⇒ New flavors developed to make end-product > attractive

⇒ Exotic flavors successful as people travel more & want to try new cuisine at home

⇒ Adult-oriented flavors play a greater role

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Packaged Food TrendsPackaged Food Trends

In Asia PacificIn Asia Pacific

- Biggest Sectors

- Strongest Growth

- Key Growth Drivers

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Glo

bal P

acka

ged

Food

s Ret

ail S

ales

200

4

Total sales 2004US$ million

0.00

200,000.00

400,000.00

600,000.00

800,000.00

1,000,000.00

1,200,000.00

1,400,000.00

1,600,000.00

World

Western Europe

Eastern Europe

North America

Latin America

Asia Pacific

Australasia

Africa and Middle East

0

200

400

600

800

1000

1200

Per capita spend 2004 US$

Leading global players:

1: Nestlé SA 2: Unilever Group 3: Kraft Foods Inc

0

10

20

30

40

50

60

70

80

90

100

UnpackagedPackaged

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Asi

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%value sales

-50

0

50

100

150

200

250

300

350

400

0 2 4 6 8 10 12 14 16

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Indonesia

China

South Korea

Taiwan

VietnamIndia

Singapore

ThailandPhilippines

Hong Kong

Malaysia

Asi

a Pa

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ed F

oods

Sal

es 2

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% value CAGR

Japan:

Total sales US$170,000 mil (2004)Per caps expend. US$1,370Market value growth 3.3%

Total sales (US$ mn) - Retail

Per

capi

ta sa

les 2

004

(US$

)

Source :Euromonitor International - Packaged Foods Database 2004

Developing countries (Strong growth)DD factors: ↑ consumer sophistication, ↑ health consciousness, ↑ working mothers

SS factors: Introduction of new food products, growth of modern retail outlets

> Developed countries Slower growth but ↑ willingness to pay for value-added, premium products

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Leading players Leading players -- AsiaAsia

• Nestlé SA• Ting Hsin International Group• Lotte Group • Unilever Group• Uni-President Enterprises Corp• Indofood Sukses Makmur Tbk PT• Kuok Oils & Grains Pte Ltd• Danone, Groupe• Seoul Dairy Cooperative• Nong Shim Co Ltd

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Chilled food16%

Bakery products13%

Dried food13%

Dairy products12%Sauces, dressings and

condiments8%

Confectionery5%

Canned food5%

Ready meals4%

Frozen food3%

Others21%

Pack

aged

Foo

ds in

Asi

a by

Typ

e 20

04

Strong CAGR in 1998-2004 (value) :Vietnam +16% Indonesia +15%China +15%Philippines +12%

Breakfast cereals -Small but dynamic niche, posting high growth rates

Mainly processed meats & fish, concentrated in > developed countries

Biggest sectors - Global1) Bakery2) Dairy Products3) Chilled Food4) Confectioneryaccounting for 60% global sales

Asia Pacific:US$297 billion

Strong CAGR in 1998-2004 (value) :Indonesia +17%Vietnam +12% India +9%Philippines +9%

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Distribution Trends Distribution Trends

in Packaged Foodin Packaged Food

in Asia Pacificin Asia Pacific

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Dis

trib

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rend

s in

Pack

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% Value sales2004 Value growth

2004

-5

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25

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rol/g

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Oth

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-5%

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15%

25%

35%

45%

55%

65%

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Contact DetailsContact Details

FarzanaFarzana MohsinMohsin

Research Manager, Asia PacificResearch Manager, Asia Pacific

3 Lim 3 Lim TeckTeck Kim RoadKim Road#08#08--02 Singapore Technologies Building02 Singapore Technologies Building

Singapore 088934Singapore 088934+65 6429 0590+65 6429 0590

farzana.mohsin@euromonitor.com.sgfarzana.mohsin@euromonitor.com.sg