This presentation was given by Mini Kim, Research Analyst Euromonitor International, at the Vita Foods Conference in Hong Kong, 2-3 September 2014

1. CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
VITAFOODS ASIA, SEPTEMBER 2014
MINJI KIM RESEARCH ANALYST

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About Euromonitor International
CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
•Strategic research for over 20 industries
•Extensive network of analysts in 80 countries
•Global presence, local coverage
London
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São Paulo

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CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY

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INTRODUCTION
WEIGHT MANAGEMENT OVERVIEW
KEY PRODUCT DEVELOPMENTS
CONCLUSION

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US$163
of weight management retail sales globally in 2013
Japan
takes the largest value sales with US$5.7 billion in 2013
12%
represented by Asia Pacific in 2013; This region achieved 57% value growth between 2008-2013
billion
CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY

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Over 2 billion overweight and obese globally, led by China
CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
-
20
40
60
80
100
120
140
160
180
200
India
USA
Brazil
Pakistan
Indonesia
Russia
Mexico
Germany
Nigeria
Japan
Turkey
Iran
Egypt
United Kingdom
Italy
Philippines
France
Spain
South Korea
Thailand
Colombia
Ukraine
Vietnam
Poland
Argentina
Canada
Algeria
South Africa
Venezuela
Million people aged 15+
Top 30 Overweight and Obese Countries (BMI>25)
2008
2013
2018

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0
10
20
30
40
50
60
Switzerland
Norway
Australia
USA
Hong Kong
Sweden
Austria
Canada
Germany
Denmark
Finland
France
United Arab Emirates
Singapore
Belgium
United Kingdom
Japan
Israel
Ireland
Italy
New Zealand
Netherlands
Spain
Qatar
Greece
Slovenia
Portugal
South Korea
Taiwan
Bahrain
Kuwait
Uruguay
Slovakia
Chile
Czech Republic
Lithuania
Argentina
US$ „000 per capita
Annual Disposable Income
2013
2018
Constant Prices, Fixed 2013 Exchange Rates
Rising annual disposable income
CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY

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Other growth driving factors
CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
Hectic life style
Campaigns
Social influence
Education on health risks of being overweight

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INTRODUCTION
WEIGHT MANAGEMENT OVERVIEW
KEY PRODUCT DEVELOPMENTS
CONCLUSION

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CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
Asian market shows strong outlook
0.0
1.0
2.0
3.0
4.0
5.0
6.0
US$ billion, Year-on-year exchange rate
Weight management retail vale sales in 2008/2013
2008
2013

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Japan
Meal Replacement
Bottled Water
Carbonates
Concentrates
RTD Tea
Confectionery
Dairy
Ice Cream
Meal Replacement
Oils and Fats
Sauces, Dressings and Condiments
Spreads
Developing countries have high potential to grow
CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
India
Carbonates
Dairy
Meal Replacement
Other Food

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Reduce unhelpful ingredients
Add functional ingredients
Consumers remain interested in keeping a healthier diet
CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY

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Demand for balanced nutrition becomes more prominent
CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2008
2013
2018
US$ billion, Constant 2013 Prices
Meal Replacement Slimming retail value sales
- Asia Pacific
Meal Replacement Slimming
South Korea
has the largest market size of US$ 588 million in 2013
Indonesia
records the fastest growth rate of nearly 1,000% between 2008 - 2013
Source: http://products.herbalife.com.sg/weight-management/formula-1

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Functional ingredients in beverages promise faster weight loss
CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
Source:
http://www.philstar.com/health-and- family/2013/01/08/894309/be-fit-not-fat-2013
With L-Carnitine
With Bitter gourd
With Ginger
Source: http://www.agv.com.tw/index.php?apps=product&action=show&cat_id=13&id=88
With Chlorogenic acid
Taiwan
Philippines
Japan
Source: Own photo

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Naturally healthy beverages also register strong demand
CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
2013-14
2014-15
2015-16
2016-17
2017-18
Retail value year-on-year growth %, current prices
Reduced Sugar Beverages
Fortified/Functional Beverages
Bottled Water
RTD Tea
Retail value growth rate % 2013-18

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Governments take the initiative: Hong Kong
CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
Sources: http://restaurant.eatsmart.gov.hk/eng/home.asp

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Governments take the initiative: Thailand
CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
“Balanced nutrition in foods”
Sources: http://www.raipoong.com/media/download/leaflet_food_exchange.pdf

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Governments take the initiative: Singapore
CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
Sources: http://www.hpb.gov.sg/HOPPortal/programmes-article/HPB053006

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Technology developments continue
CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
According to Noom Korea, for one year since the application was introduced
1.3 million of people newly registered in Noom Diet Coach
106,276 of Facebook users liked Noom Korea fanpage
People lost 17,802,327kg using Noom application
https://itunes.apple.com/sg/app/idat/id470823071?mt=8

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INTRODUCTION
WEIGHT MANAGEMENT OVERVIEW
KEY PRODUCT DEVELOPMENTS
CONCLUSION

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CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
Key product developments: Weight loss + Skin Care
Source:http://news.naver.com/main/read.nhn?mode= LSD&mid=sec&sid1=101&oid=001&aid=0006956346
Unique selling point
•140ml functional drink and two pills of ‘Panduratin A’, an extract of Kaempferia pandurata
•High fibre
•Claim to help weight-loss and skin recovery together

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CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
Key product developments: Cola for weight management
Source:http://japandailypress.com/adult- drinks-carbonated-soft-drinks-for-the- health-conscious-078483/
Unique selling point
•Fortified with indigestible dextrin
•Claims to limit absorption of fat with reduced sugar
•Certified as ‘FOSHU (Food for Special Health Uses)’ beverage

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Key product developments: Totally reformulated product
CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
0
20
40
60
80
100
120
140
France
UK
Poland
Netherlands
US$ million, fixed exchange rates
Regular Sprite, now with stevia
2013
2012
2011
2010
2009

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INTRODUCTION
WEIGHT MANAGEMENT OVERVIEW
KEY PRODUCT DEVELOPMENTS
CONCLUSION

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US$202
of weight management retail sales globally in 2018
Emerging countries
13%
of this market accounted for by Asia Pacific in 2018
billion
CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
will show dynamic growth in the forecast period

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Challenges
CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
Limited growth
High price
Safety issues
Competition
Regulation
Lack of awareness

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CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
Key takeaway
Weight management
Functional ingredients
India/Japan
Increasing competition
Innovation

28. THANK YOU FOR LISTENING
Q&A
Minji Kim
Research Analyst
Minji.kim@euromonitor.com.sg

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Health and wellness food and beverages comprises the following Euromonitor International categories:
Weight management: Non-prescription medication as well as packaged foods and beverage positioning as weight management by reducing sugar or far or by adding functional ingredients to help weight lost
Better for you (BFY): Items where the amount of a substance considered to be less healthy has been actively reduced, removed or substituted during production. In turn, this forms part of the product's positioning/marketing, like low-fat or low-sugar versions of "standard" products . Products which are naturally free of, for example, fat, salt or sugar, are excluded.
Fortified/functional (FF): Products to which ingredients with purported health benefits have been added, and which have a specific physiological function and/or are enhanced to the point where the level of added ingredients would not normally be found. To merit inclusion, the product must have been actively fortified/enhanced during production. As such, inherently healthy products, like 100% fruit/vegetable juices, are only included if additional functional ingredients have been added.
Naturally healthy (NH): Products that naturally contain a substance that improves health and wellbeing beyond the product's pure calorific value, eg olive oil, honey, soy- based food and beverages, green tea, 100% fruit/vegetable juice and naturally high-fibre food (eg bread, breakfast cereals, pasta). While many of these products are marketed on a health basis, this need not necessarily be the case.
Glossary of terms
APPENDIX

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APPENDIX
Food Intolerance (FI)
Organic (O)
•O+FF, O+BFY, O+NH
Fortified/Functional (FF)
•FF+BFY, FF+NH
Better For You (BFY)
•BFY+NH
•Fat(4) SugarCarbsSalt (1)
Naturally Healthy (NH)
Health and Wellness Taxonomy
Exceptions: Yoghurt: - FF most important Spreadable Oils & Fats:
-FF most important Breakfast Cereals:
-FF least important because all cereals are fortified as the industry standard

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Digestive Health
Probiotics
Prebiotics
Fibre
Weight Control
Fibre for satiety
Fabuless - satiety
CLA
L’Carnitine - fat burning
High protein
Green tea extract
Konjac mannan
Heart Health
Plant sterols/ stanols
Omega- 3 ALA, DHA, EPA
Peptides
Beta glucans
Soluble fibre
Soy proteins
Folate
Vit K
Pectins
Bone and Teeth
Sugar- free gum
Calcium
Fluoride
Vit D
Beauty from Within
Collagen
CoQ10
Lycopene
Antioxidants
Beta- carotene
Vit C
Selenium
Vit B2, B3, B7
Zinc
Vit A
CoQ10
Vit E
APPENDIX
Focus on ingredients and prime positioning
Aloe Vera
Immune Support
Vit C
Anti- oxidants
Probiotics
Vit D
Selenium
Vit B 12
Brain Health
Omega- 3 ALA, DHA, EPA
Caffeine
CoQ10
Vit B1, B3, B6, B7, B12
Magnesium
Energy / Sport Nutrition
Whey protein
Creatine
Magnesium
Electrolites
Proteins
Vit B6