market oveview: identifying new trends and opportunities in the global infant forumla market
TRANSCRIPT
MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
MARÍA MASCARAQUE
© Euromonitor International
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Up by 7% in 2015, FF drives once again the milk formula marketMARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
2010 2011 2012 2013 2014 20150
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
-5
0
5
10
15
20
25
30
GLOBAL MILK FORMULA MARKET 2010-2015
Organic Milk Formula
Special Baby Milk Formula
FF Milk Formula
FF Milk Formula % Y-O-Y growth
Special Baby Milk Formula % Y-O-Y growth
Organic Milk Formula % Y-O-Y growthR
etai
l val
ue (U
S$
billi
on),
cons
tant
, fix
ed 2
015
exch
ange
rate
% Y
-Y G
row
th
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FF milk formula outperforms other HW packaged food categoriesMARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FF Milk Formula
Reduced Fat Milk
NH High Fibre Bread
FF Breakfast Cereals
NH Nuts
Others
FF Milk
For
mula
NH Other
Non
-Dair
y Milk
Alte
rnati
ves
NH Nuts
Probio
tic P
lain Yogh
urt
FF Flav
oure
d Milk
Drin
ks02468
10121416
Abso
lute
Gro
wth
(US$
bill
ion)
, con
stan
t, fix
ed 2
015
exch
ange
rate
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China alone accounted for 46% of milk formula market in 2015 MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
83 mn children aged 0-4 Exclusive breastfeeding rate (<6 m) 28%
US$20 bn
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Nestlé leads, accounting for 21% of the global milk formula marketMARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
2010 2011 2012 2013 2014 20150
2,000
4,000
6,000
8,000
10,000
12,000
GLOBAL PERFORMANCE OF LEADING MILK FORMULA COMPANIES
Nestlé SAMead Johnson Nutrition CoDanone, GroupeAbbott Laboratories IncRoyal FrieslandCampina NV
Ret
ail V
alue
(US
$ m
illio
n) c
onst
ant,
fixed
201
5 ex
chan
ge ra
te
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Asia Pac
ific
Wes
tern E
urop
e
North
Amer
ica
Easter
n Eur
ope
Austra
lasia
MEA
Latin A
merica
0%10%20%30%40%50%60%70%80%90%
100%
MILK FORMULA MARKET: COMPANY SHARES IN 2015
OthersAbbott Laboratories IncRoyal FrieslandCampina NVDanone, GroupeMead Johnson Nutrition CoNestlé SA
Company competition is fierce and varies regionallyMARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
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2010 2011 2012 2013 2014 20150
500
1,000
1,500
2,000
2,500
3,000
3,500GLOBAL PERFORMANCE OF LEADING MILK FORMULA BRANDS
Enfamil. Mead Johnson Nutrition CoS-26. Nestlé SASimilac. Abbott Laborator-ies IncEnfagrow. Mead Johnson Nutrition CoNan. Nestlé SABeingmate. Hangzhou Be-ingmate Group Co LtdYili. Inner Mongolia Yili Industrial Group Co LtdFriso Gold. Royal FrieslandCampina NVDumex. Danone, GroupeNutrilon. Danone, Groupe
Ret
ail V
alue
(US$
mill
ion)
con
stan
t, fix
ed 2
015
exch
ange
rat
e Local Chinese brands within the leading brands globally MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
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Nutritional science as a driver of innovation MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
FF
Probiotics
Prebiotics
Omega-3DHA, EPA
Omega 6ARA
Oth
er C
laim
s
Calcium/Iron/ Zinc
FOS/GOS
Vitamins C, A,D
Choline,Lutein
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Probiotics
ResearchDigestive Health
Immune Support
Probiotic’s research is still in the spotlight MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
•Nestlé (June 2015) patent
•L. rhamnosus + B. longum•L. paracasei + B. longum
Prevention of Childhood Allergies
• L. reuteri Protectis: reduction in crying time (Szajewska et al., 2012)
• L reuteri DSM 17938: improvement of colic symptoms by reducing crying and fussing
times (Chau et al., 2015)
Colic
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Milk formula composition becoming more like breast milk MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
• Mimics composition, and structure of human milk fat
• Enhance babies’ immunity, improve comfort and support health growth
New tailored lipid (OPO) (sn-2 palmitate)
• Currently: small fat droplets primarily coated by proteins. Thick protein-only interface
• Nuturis®: large fat droplets with a phospholipid coating. Thin interface -
phospholipids, proteins and cholesterol
NUTURIS: lipidic matrix imitating
structure of human milk
Gallier et al., 2015
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Explore nutritional requirements in emerging countries MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
DANONE
Health authorities Local associations
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Good night's sleep and convenience key focus areasMARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
• Breast milk easier to digest
• Higher percentage of carbohydrates
• Enrich with sleep-promoting substances: alpha-lactalbumin, uridine, adenosine and tryptophan
Good night's sleep
• Nespresso for babies: 6 types of age-appropriate BabyNes capsules (1 – 36 months)
• China, Hong Kong, France USA, Switzerland
• Future: fortified flavoured milk drinks for children older than 3 years
Increasing convenience
Source: Humana-Baby
Source: Laboratorios Ordesa
Source: Gerber BabyNes
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Convenience key for working mothersMARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
• Handy pack sizes for "ready to drink"
Puleva Peques 3
Lactalis, Spain
• Individually-packaged liquid milk formula
Haihai Stick Pack
Wakodo, Japan
• Solid milk formula cubes
Meiji Hohoemi cube
Meiji, Japan
Source: Lactalis Puleva, S.L.U.
Source: Asahi breweries, LTD
Source: Meiji Holdings Co.,Ltd.
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Working mothers have increased by 6% and women being the head of household by 16% in 2010-2015
MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
2010 2011 2012 2013 2014 2015440
460
480
500
520
540
560
580
HEAD OF HOUSEHOLD [FEMALE] 2010-2015
Mill
ion
2010 2011 2012 2013 2014 20151.08
1.10
1.12
1.14
1.16
1.18
1.20
1.22
GLOBAL EMPLOYED FEMALE POPULATION 2010-2015
Bill
ion
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2015 2016 2017 2018 2019 20200
10000
20000
30000
40000
50000
60000
70000
80000
MILK FORMULA PERFORMANCE IN DEVELOPED COUNTRIES VS. EMERGING AND DEVELOPING COUNTRIES
Developed countriesEmerging and developing countries
Ret
ail v
alue
(US$
mill
ion)
, con
stan
t,
fixed
201
5 e
xcha
nge
rate
Growth expected to be more than 20 times higher in emerging vs developed countries
MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
US$ 24mn
US$ 1 mn
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China will keep leading the growth within milk formulaMARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
Absolute growth (2015-2020)
US$20 billion
The end of the “One-child policy”
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Move towards premiumisation in emerging marketsMARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202002
468
10
12141618
20
MILK FORMULA UNIT PRICE IN EMERGING MARKETS
Uni
t pr
ice
(US$
/kg)
, con
stan
t, fi
xed
2015
exc
hang
e ra
te
Growth: 5%
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MEA is expected to be the 2nd fastest growing region by 2020MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
Asia Pac
ific
Austra
lasia
Latin A
merica
Easter
n Eur
ope
MEA
North
Amer
ica
Wes
tern E
urop
e0
10
20
30
40
50
60
70
80
19.4
44.9
MILK FORMULA MARKET % GROWTH: REVIEW vs. FORECAST PERIOD
2010-15 %2015-20 %
% c
onst
ant,
fixe
d 20
15 e
xcha
nge
rate
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Where to invest in MEA?MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
South Korea
Spain
Greece
Poland
Egypt
Vietnam
Chile
Turkey
Saudi Arabia
China
-5 0 5 10 15 20
MILK FORMULA GROWTH: TOP AND BOTTOM COUNTRIES IN 2015-2020
CAGR %
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National policies to further fuel breastfeeding MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
WHO
Exclusive breastfeeding up to
6 months of age
Policies strengthened to
promote breastfeeding
Objective by 2025
Increase exclusive breastfeeding in the first 6 months to at
least 50%
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South Korea
- Education campaigns
- Academy of Breastfeeding Medicine in Korea
UK
- “Children´s Health” policy
- NHS support
- WHO Code of Marketing of Breast Milk Substitutes
China
- WHO Code of Marketing of Breast Milk Substitutes
- Chinese law update (2015)
USA
- “Surgeon General's Call to Action to Support Breastfeeding”
- “The Baby-Friendly Hospital Initiative” and “La Leche League”
Initiatives to promote breastfeeding across the worldMARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
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Toddler milk formula outperforms in saturated developed marketsMARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
Toddler milk formula
Follow-on milk formula
Standard Milk Formula
0
5
10
15
20
25
20.7
0.43.9
MILK FORMULA BY TYPE IN DEVELOPED COUNTRIES
%G
row
th 2
015-
2020
, con
stan
t, fi
xed
2015
exc
hang
e ra
te
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Growing appetite for natural, organic ingredients in developed countries
MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
0
50
100
150
200
250
300
350
400
450
500
ORGANIC MILK FORMULA PERFORMANCE
Developed countries Emerging and de-veloping countries
Ret
ail V
alue
(US
$ m
illio
n) c
onst
ant,
fix
ed20
15 e
xcha
nge
rate
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Milk Formula Strategies MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
Focus on toddler milk formula in saturated developed markets
Product diversification, notably through high-margin organic ranges in developed countriesAttempting to establish stronger and premium brand images in emerging markets
Identify local nutritional needs in new regions, mainly in emerging countries
Improve the convenience of packaging brings a key competitive advantage to manufacturers
THANK YOU FOR LISTENING
Q&AMaría MascaraqueAssociate - Health and Wellness [email protected] @MascaraqueMaria https://uk.linkedin.com/in/mariamascaraque