This document summarizes market trends in Asia Pacific related to clean labelling and sugar replacement. It notes that consumers are increasingly looking for products with clean, simple ingredients lists free of artificial or unwanted ingredients. There is a lack of regulation around clean labelling claims, leaving room for interpretation. The document defines clean labelling and notes its increasing penetration in Asia Pacific product launches. It also discusses the market driver of sugar taxes and consumer demand for reduced sugar products in ASEAN countries. The document proposes how Ingredion can help companies create clean label products and reduced sugar products using their SWEETIS sweeteners.

1. Asia Pacific MarketTrends
on Clean Labelling and
Sugar Replacement
Confidential Copyright © 2019 by Ingredion Incorporated

2. Food MarketTrends 2019
2Source: Euromonitor, Mintel GNPD, foodindustryexecutive.com, Innova
• Evergreen consumption
– Sustainability
• Through the ages
– Health & Wellness
• Elevated convenience
• Consumers adopt regional and
adventurous flavors
• Plant-based foods continue
growing
• Sustainability efforts increase
• Snacking is an occasion
• Hemp/cannabis/CBD products
emerge
• Probiotic products gain steam
Top 8 megatrends that will shape
both consumer and B2B industries
from now till 2030
✓ Go Natural – Go Clean
✓ Health & Wellness

3. Consumers wants food that are free-from unwanted
ingredients
• Consumers are aware of the close relationship between
their diet and health.
• “You are what you eat”
• Key words such as “Natural”,“No additive”,“No
preservatives”,“Non-GMO” are what consumers are looking
out for in products as well as menu.
• Driven by
– Health conscious consumers
– Rising middle class income
– Government intervention to eat healthier
Confidential Copyright © 2019 by Ingredion Incorporated

4. In Asia, food safety is a major concern
Source: BBC News

5. 5
The clean label opportunity is here …
and with it, confusion
Lack of regulation
leaves room for
interpretation
“Best” approach is not
“one size fits all”: Acceptability
of ingredients varies by
region and application
Claims vary
in appeal by
region and
application
5
Confidential
Copyright © 2019 by Ingredion Incorporated

6. Defining “Clean Label”
Clean label industry definition by Ingredion published in
International Food Ingredients, No. 3, 2010:
✓ Simple ingredients that consumers understand
✓ Free from chemical additives
✓ Minimally processed or processed using
traditional techniques
Adapted definition to reflect changes in consumer views and
the additional items they now associate with clean label:
✓ Only made with ingredients that are recognized and
accepted by consumers
✓ Free of ingredients that are artificial-sounding or
misleading
✓ Contain no genetically modified ingredients (non-GM)
✓ Having an ingredient listing that is consistent with the
consumer’s understanding of on-pack claims
28%
of consumers
always check
the labels
Source: Ingredion Proprietary Research, Global Clean Label
Consumer Study,April 2017.Total Base Global n=7878
71%
of consumers
usually or
always
check the labels

7. Confidential
Clean Label Penetration in Asia Pacific
Clean Label
New Product
Launches
CAGR 2014-2018
4.2%
New Product
Launches
CAGR 2014-2018
3.8%
Source: Innova Database. Clean Label Positioning:Natural, Organic, No Additives, No Preservatives, GMO Free
53,147
47,575
51,716 50,128
61,417
13,641
13,569
13,530 15,177
16,086
20.4%
22.2%
20.7%
23.2%
20.8%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2014 2015 2016 2017 2018
Asia Pacific New Product Launches
Non Clean Label Launches Clean Label Launches % of Clean Label Launches
Product Count

8. Market driver for reduced sugar products in
ASEAN
• Rise of obesity and diabetes population
• Childhood obesity
• Government sugar tax implementation
• Consumers seeking healthier food
• Rise of sugar alternatives for consumers
Source: Asia Nikkei 2019
Confidential Copyright © 2019 by Ingredion Incorporated

9. Consumers are willing to pay a premium for clean label
60% of consumers in growing Asian markets such as Indonesia,
the Philippines andThailand are willing to pay a premium
for products with clean label claims
Rather than just the price, consumers are looking at the value a product brings
9Source: Ingredion ASEAN Clean Label Consumer Study, March 2017
Confidential
Copyright © 2019 by Ingredion Incorporated

10. 10
From Starch to Flour
Source: MMR Global QBIC Study 2017, proprietary research commissioned by Ingredion; Dragon Rouge: Rice and Pulse Ingredients 2017, proprietary research
commissioned by Ingredion

11. 11
We can help you to
clean up the ingredient list or
create clean label products
desired by consumers

12. 12
We can help you to
create great tasting
reduced sugar products

13. SUGAR
REDUCTION60%
SWEETIS® sweeteners enable
sugar reduction without compromising
taste of full-sugar product
LOWER IN SUGAR
ORANGE JUICE DRINK
Total sugar content (1 spoon = 1g sugar/100ml)
Total relative sweetness as sucrose equivalence+

14. SUGAR
REDUCTION30%
LOWER IN SUGAR
TOMATO KETCHUP
Total sugar content (1 spoon = 2.4g sugar/100ml)
Total relative sweetness as sucrose equivalence+
SWEETIS® sweeteners are
ready-to-use solutions that provide
sugar-like taste