Market Oveview: Identifying New Trends and Opportunities in the Global Infant Forumla Market

1,096 views

Published on

Euromonitor presented this deck in May 2016 at VitaFoods Europe. This presentation explores trends and opportunities in the global infant formula market.

Published in: Business
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,096
On SlideShare
0
From Embeds
0
Number of Embeds
9
Actions
Shares
0
Downloads
97
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Market Oveview: Identifying New Trends and Opportunities in the Global Infant Forumla Market

  1. 1. MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET MARÍA MASCARAQUE
  2. 2. GLOBAL MARKET INSIGHT FUTURE OUTLOOK
  3. 3. © Euromonitor International 3 Up by 7% in 2015, FF drives once again the milk formula market MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET -5 0 5 10 15 20 25 30 0 5 10 15 20 25 30 35 40 45 50 2010 2011 2012 2013 2014 2015 %Y-YGrowth Retailvalue(US$billion),constant,fixed2015 exchangerate GLOBAL MILK FORMULA MARKET 2010-2015 Organic Milk Formula Special Baby Milk Formula FF Milk Formula FF Milk Formula % Y-O-Y growth Special Baby Milk Formula % Y-O-Y growth Organic Milk Formula % Y-O-Y growth
  4. 4. © Euromonitor International 4 FF milk formula outperforms other HW packaged food categories MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Others NH Nuts FF Breakfast Cereals NH High Fibre Bread Reduced Fat Milk FF Milk Formula 0 2 4 6 8 10 12 14 16 FF Milk Formula NH Other Non-Dairy Milk Alternatives NH Nuts Probiotic Plain Yoghurt FF Flavoured Milk Drinks AbsoluteGrowth(US$billion),constant,fixed2015 exchangerate
  5. 5. © Euromonitor International 5 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$20 bn
  6. 6. © Euromonitor International 6 Nestlé leads, accounting for 21% of the global milk formula market MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET 0 2,000 4,000 6,000 8,000 10,000 12,000 2010 2011 2012 2013 2014 2015 RetailValue(US$million)constant,fixed2015 exchangerate GLOBAL PERFORMANCE OF LEADING MILK FORMULA COMPANIES Nestlé SA Mead Johnson Nutrition Co Danone, Groupe Abbott Laboratories Inc Royal FrieslandCampina NV
  7. 7. © Euromonitor International 7 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% MILK FORMULA MARKET: COMPANY SHARES IN 2015 Others Abbott Laboratories Inc Royal FrieslandCampina NV Danone, Groupe Mead Johnson Nutrition Co Nestlé SA Company competition is fierce and varies regionally MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
  8. 8. © Euromonitor International 8 0 500 1,000 1,500 2,000 2,500 3,000 3,500 2010 2011 2012 2013 2014 2015 RetailValue(US$million)constant,fixed2015 exchangerate GLOBAL PERFORMANCE OF LEADING MILK FORMULA BRANDS Enfamil. Mead Johnson Nutrition Co S-26. Nestlé SA Similac. Abbott Laboratories Inc Enfagrow. Mead Johnson Nutrition Co Nan. Nestlé SA Beingmate. Hangzhou Beingmate Group Co Ltd Yili. Inner Mongolia Yili Industrial Group Co Ltd Friso Gold. Royal FrieslandCampina NV Dumex. Danone, Groupe Local Chinese brands within the leading brands globally MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
  9. 9. © Euromonitor International 9 Nutritional science as a driver of innovation MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET FF Probiotics Prebiotics Omega-3 DHA, EPA Omega 6 ARA OtherClaims Calcium/ Iron/ Zinc FOS/GOS Vitamins C, A,D Choline, Lutein
  10. 10. © Euromonitor International 10 Probiotics Research Digestive 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
  11. 11. © Euromonitor International 11 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
  12. 12. © Euromonitor International 12 Explore nutritional requirements in emerging countries MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET DANONE Health authorities Local associations
  13. 13. © Euromonitor International 13 Good night's sleep and convenience key focus areas MARKET 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
  14. 14. © Euromonitor International 14 Convenience key for working mothers MARKET 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.
  15. 15. © Euromonitor International 15 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 440 460 480 500 520 540 560 580 2010 2011 2012 2013 2014 2015 Million HEAD OF HOUSEHOLD [FEMALE] 2010-2015 1.08 1.10 1.12 1.14 1.16 1.18 1.20 1.22 2010 2011 2012 2013 2014 2015 Billion GLOBAL EMPLOYED FEMALE POPULATION 2010-2015
  16. 16. GLOBAL MARKET INSIGHT FUTURE OUTLOOK
  17. 17. © Euromonitor International 17 0 10000 20000 30000 40000 50000 60000 70000 80000 2015 2016 2017 2018 2019 2020 Retailvalue(US$million),constant,fixed 2015exchangerate MILK FORMULA PERFORMANCE IN DEVELOPED COUNTRIES VS. EMERGING AND DEVELOPING COUNTRIES Developed countries Emerging and developing countries 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
  18. 18. © Euromonitor International 18 China will keep leading the growth within milk formula MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET Absolute growth (2015-2020) US$20 billion The end of the “One-child policy”
  19. 19. © Euromonitor International 19 Move towards premiumisation in emerging markets MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET 0 2 4 6 8 10 12 14 16 18 20 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Unitprice(US$/kg),constant,fixed2015 exchangerate MILK FORMULA UNIT PRICE IN EMERGING MARKETS Growth: 5%
  20. 20. © Euromonitor International 20 MEA is expected to be the 2nd fastest growing region by 2020 MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET 19.4 44.9 0 10 20 30 40 50 60 70 80 Asia PacificAustralasia Latin America Eastern Europe MEA North America Western Europe %constant,fixed2015exchangerate MILK FORMULA MARKET % GROWTH: REVIEW vs. FORECAST PERIOD 2010-15 % 2015-20 %
  21. 21. © Euromonitor International 21 Where to invest in MEA? MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET -5 0 5 10 15 20 South Korea Spain Greece Poland Egypt Vietnam Chile Turkey Saudi Arabia China CAGR % MILK FORMULA GROWTH: TOP AND BOTTOM COUNTRIES IN 2015-2020
  22. 22. © Euromonitor International 22 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%
  23. 23. © Euromonitor International 23 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 world MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET
  24. 24. © Euromonitor International 24 Toddler milk formula outperforms in saturated developed markets MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET 20.7 0.4 3.9 0 5 10 15 20 25 Toddler milk formula Follow-on milk formula Standard Milk Formula %Growth2015-2020,constant,fixed2015 exchangerate MILK FORMULA BY TYPE IN DEVELOPED COUNTRIES
  25. 25. © Euromonitor International 25 Growing appetite for natural, organic ingredients in developed countries MARKET OVERVIEW: IDENTIFYING NEW TRENDS AND OPPORTUNITIES IN THE GLOBAL INFANT FORMULA MARKET 0 50 100 150 200 250 300 350 400 450 500 2010 2011 2012 2013 2014 2015 2016 2017 2018 20192020 RetailValue(US$million)constant, fixed2015exchangerate ORGANIC MILK FORMULA PERFORMANCE Developed countries Emerging and developing countries
  26. 26. © Euromonitor International 26 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 countries Attempting 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
  27. 27. THANK YOU FOR LISTENING Q&A María Mascaraque Associate - Health and Wellness Research maria.mascaraque@euromonitor.com @MascaraqueMaria https://uk.linkedin.com/in/mariamascaraque

×