Euromonitor Presentation from VitaFoods Asia given by Research Analyst Minji Kim

1. UNIQUE CHARACTERISTICS OF AGEING
CONSUMERS AND OPPORTUNITIES FOR THE
FOOD AND BEVERAGE MARKET
VITA FOODS ASIA, SEPTEMBER 2014
MINJI KIM
RESEARCH ANALYST

2. © Euromonitor International
2UNIQUE CHARACTERISTICS OF AGEING CONSUMERS AND OPPORTUNITIES FOR FOOD AND BEVERAGE MARKET
About Euromonitor International
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3UNIQUE CHARACTERISTICS OF AGEING CONSUMERS AND OPPORTUNITIES FOR FOOD AND BEVERAGE MARKET

4. MARKET OVERVIEW
ACTIVE AGEING
WHERE ARE OPPORTUNITIES
WHO ARE CONSUMERS
JAPAN
OUTLOOK

5. 600MILLION PEOPLE
AGED OVER 65 IN
2013 GLOBALLY
Japan
THE WORLD’S
OLDEST COUNTRY
WITH MEAN AGE OF
45 IN 2013
56%
OF GLOBAL
POPULATION AGED
OVER 65 IS FROM
ASIA PACIFIC IN 2013

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Asia is ageing
UNIQUE CHARACTERISTICS OF AGEING CONSUMERS AND OPPORTUNITIES FOR FOOD AND BEVERAGE MARKET
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
20082009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
%shareoftotalpopulation
Population Aged 60+
Population Aged 50-59
Population Aged 40-49
Population Aged 30-39
Population Aged 20-29
Population Aged 0-19

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Older population displays unique characteristics
UNIQUE CHARACTERISTICS OF AGEING CONSUMERS AND OPPORTUNITIES FOR FOOD AND BEVERAGE MARKET
Bargain
hunter
Focus on
the
necessary
Health is
key
Time to
spare

8. INTRODUCTION
ACTIVE AGEING
WHERE ARE OPPORTUNITIES
WHO ARE CONSUMERS
JAPAN
OUTLOOK

9. © Euromonitor International
9
Life Expectancy and Healthy Life Expectancy: A Seven Year Gap
UNIQUE CHARACTERISTICS OF AGEING CONSUMERS AND OPPORTUNITIES FOR FOOD AND BEVERAGE MARKET
Life Expectancy vs Healthy Life Expectancy 2013
Active Ageing

10. INTRODUCTION
ACTIVE AGEING
WHERE ARE OPPORTUNITIES
WHO ARE CONSUMERS
JAPAN
OUTLOOK

11. © Euromonitor International
11
Enriched nutrition
Extra health benefits
Easy to consume
Dairy products have benefits for ageing population
UNIQUE CHARACTERISTICS OF AGEING CONSUMERS AND OPPORTUNITIES FOR FOOD AND BEVERAGE MARKET

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12
Almond milk - Japan Drinking Yoghurt - PhilippinesPowdered milk - Malaysia
New product developments
UNIQUE CHARACTERISTICS OF AGEING CONSUMERS AND OPPORTUNITIES FOR FOOD AND BEVERAGE MARKET
US$1.2 per 200 ml
Fortified with Vitamin E and
Fibre
Cholesterol free
Launched in April 2014
US$4.4 per box of seven sachets US$3.8 per 6 bottles of 100 ml
Launched in October 2013
Fortified with Plant stanol ester
(PSE)
clinically proven to lower bad
cholesterol (LDL) levels
Launched in September 2012
Fortified with Omega
Effective in reducing one’s
cholesterol level by 7% in 30 days,
by drinking one glass of the product
dailySource: Euromonitor International
Source: New Straits Times Malaysia
Source: Euromonitor International

13. © Euromonitor International
13
• More consumers now know of the claimed benefits of antioxidants
Increasing awareness of antioxidants in Asia
UNIQUE CHARACTERISTICS OF AGEING CONSUMERS AND OPPORTUNITIES FOR FOOD AND BEVERAGE MARKET
Anti-aging
properties
Prevent or
slow the
oxidartive
damage
Urinary
tract health
May
prevent
formation
of age spots
Heart
health
benefits
Potential
anti-cancer
action
Enhanced
immune
system

14. © Euromonitor International
14
Products with high antioxidants continue to grow
UNIQUE CHARACTERISTICS OF AGEING CONSUMERS AND OPPORTUNITIES FOR FOOD AND BEVERAGE MARKET
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
Superfruit Juice Ready-to-drink Green Tea Green Tea (Hot drink) Nuts
US$billion,constant2013prices,Fixed
exchangerates
Retail value sales in 2008/2013/2018
2008
2013
2018

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15
Superfruit Juice - India Ready to Drink Green Tea
- Malaysia
Juice Drink- Thailand
New product developments
UNIQUE CHARACTERISTICS OF AGEING CONSUMERS AND OPPORTUNITIES FOR FOOD AND BEVERAGE MARKET
US$1.7 per litre
Strawberry and plum juice to
offer nutrient richness and
antioxidant qualities
Launched in June 2013
US$ 0.9 per 500ml
Launched in September 2013
It is available in acerola cherry,
oranges and black current
Positioning in beauty from within
Launched in June 2013
Positioning in general wellbeing
High in antioxidants
Source:
http://www.matichon.co.th/news_detail.php?news
id=1379409680&grpid=no&catid=&subcatid=Source: Euromonitor International
Source: Euromonitor International
US$0.80 per 330ml

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Collagen is the star ingredient for anti-ageing in Asia Pacific
UNIQUE CHARACTERISTICS OF AGEING CONSUMERS AND OPPORTUNITIES FOR FOOD AND BEVERAGE MARKET
111.1
147.4
2008 2013
Beauty From Within – Asia Pacific
Retail Value RSP, US$ million
Source:
http://www.meiji.com.sg/subcategory.p
hp?subcat_id=63
Source::
http://news.naver.com/main/read.nhn?
mode=LSD&mid=sec&sid1=103&oid=14
3&aid=0002086635

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Collagen also positioned to help bone and joint health
UNIQUE CHARACTERISTICS OF AGEING CONSUMERS AND OPPORTUNITIES FOR FOOD AND BEVERAGE MARKET
Skin
Joints
Muscles
Body composition

18. INTRODUCTION
ACTIVE AGEING
WHERE ARE OPPORTUNITIES
WHO ARE CONSUMERS
JAPAN
OUTLOOK

19. © Euromonitor International
19UNIQUE CHARACTERISTICS OF AGEING CONSUMERS AND OPPORTUNITIES FOR FOOD AND BEVERAGE MARKET
Key opportunity markets: The wealthy, healthy and ready to spend
(5)
-
5
10
15
20
25
30
35
40
0 10 20 30 40 50 60 70 80 90
Healthy Life Expectancy and Population 2013
Hong Kong
Thailand
South Korea
Singapore
China
Japan
Taiwan
Malaysia
India
Healthy life expectancy
Disposableincomepercapita;US$‘000
Note: Bubble size represents relative total number of population over 65+ in 2013
Indonesia
Philippines
Vietnam

20. INTRODUCTION
ACTIVE AGEING
WHERE ARE OPPORTUNITIES
WHO ARE CONSUMERS
JAPAN
OUTLOOK

21. © Euromonitor International
21
The oldest country in the world with mean age of 45 in 2013
High life expectancy of 82.9 and healthy life expectancy of 76.7
Japan – a case study
UNIQUE CHARACTERISTICS OF AGEING CONSUMERS AND OPPORTUNITIES FOR FOOD AND BEVERAGE MARKET
source: http://www.meiji.co.jp/english/business_guide/

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Metabolic
syndrome
Locomotive
syndrome
Japan: A new key term is emerging
UNIQUE CHARACTERISTICS OF AGEING CONSUMERS AND OPPORTUNITIES FOR FOOD AND BEVERAGE MARKET

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Japan: FOSHU supports local labelling trends
UNIQUE CHARACTERISTICS OF AGEING CONSUMERS AND OPPORTUNITIES FOR FOOD AND BEVERAGE MARKET
FOSHU: Food for Special Health Uses
Launched by the Ministry of Health, Labour and Welfare in 1991
Individually approved ingredients to carry various health claims
Blood cholesterol
level
• Chitosan
• Soybean protein
• Degraded sodium
alginate
Osteogenesis
• Soybean
isoflavone
• Milk basic protein
Blood sugar level
• Indigestible
dextrin
• Wheat albumin
• Guava tea
polyphenol
• L-arabiose
Gastrointestinal
conditions
• Oligosaccharides
• Lactose
• Bifidobacteria
• Lactic acid
bacteria
• Dietary fiber 8
ingestible dextrin
• Polydextrol
• Guar gum
• Psyllium seed coat

24. INTRODUCTION
ACTIVE AGEING
WHERE ARE OPPORTUNITIES
WHO ARE CONSUMERS
JAPAN
OUTLOOK

25. © Euromonitor International
25
Fortified/Functional products have exciting opportunities
UNIQUE CHARACTERISTICS OF AGEING CONSUMERS AND OPPORTUNITIES FOR FOOD AND BEVERAGE MARKET
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
0
20
40
60
80
100
120
Vitamins and
Dietary
Supplements
Herbal/Traditional
Products
Better For You Fortified/Functional
2013-18CAGR%
Retail value sales in 2013 and 2013-18 CAGR growth
RetailvalueRSP,US$billion,Currentprices

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Challenges
UNIQUE CHARACTERISTICS OF AGEING CONSUMERS AND OPPORTUNITIES FOR FOOD AND BEVERAGE MARKET
Maintaining high quality
Regulation
Alternative products

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Active ageing
Dairy
Products
Antioxidants/
Collagen
Japan
Key takeaways
UNIQUE CHARACTERISTICS OF AGEING CONSUMERS AND OPPORTUNITIES FOR FOOD AND BEVERAGE MARKET

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

29. © Euromonitor International
29APPENDIX
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
Probioti
cs
Prebioti
cs
Fibre
Weight
Control
Fibre
for
satiety
Fabuless
- satiety
CLA
L’Carnit
ine - 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
Lycopen
e
Antioxid
ants
Beta-
carotene
Vit C
Seleniu
m
Vit B2,
B3, B7
Zinc
Vit ACoQ10
Vit E
APPENDIX
Focus on ingredients and prime positioning
Aloe
Vera
Immune
Support
Vit C
Anti-
oxidants
Probioti
cs
Vit D
Seleniu
m
Vit B 12
Brain
Health
Omega-
3 ALA,
DHA,
EPA
Caffeine
CoQ10
Vit B1,
B3, B6,
B7, B12
Magnesi
um
Energy /
Sport
Nutrition
Whey
protein
Creatine
Magnesi
um
Electrolit
es
Proteins
Vit B6