ASEAN Leads Clean Label Claim Innova Market Insights identified six top health trends in the ASEAN and China markets: clean label , digestive health, sugar reduction and replacement, protein is booming, Healthy lifestyle and Healthy aging

1. China
Health trends
April 2016

2. www.innovadatabase.com
Global trends affecting the region

3. 19.7%
38.5%
16.9%
14.9%
4.7%
21.6%
41.3%
18.8%
14.1%
6.3%
ASEAN
Australia
USA
West Europe
China
Share (%) of food & beverages launches
with no additives/preservatives claim
2014
2015*
3
ASEAN moving ahead of Europe and North America
• In comparison with China, the ASEAN countries showed a much higher share of
product launch activity with no additives/preservatives claims.
• The ASEAN market is moving even ahead of the US and Western Europe.
*YTD= January - October

4. ...and no artificial additives
4
74%
97%
89%
94%
80%
90%
73%
96%
88%
94%
78%
94%
73%
94%
89% 89%
74%
90%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Australia Indonesia Malaysia Philippines Thailand China
%ofrespondents
When shopping for foods, how important are the next statements?
(2014) (Answer: important, very important, extremely important)
No artificial colors No artificial flavors No artificial sweeteners
• People find it important to look for foods with no additives claims.
• Artificial colors, flavors and sweeteners are met with the same concern.
Source: Health Focus International

5. 71%
83%
65%
79% 81%
65%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Australia Indonesia Malaysia Philippines Thailand China
%ofrespondents
It is important on a food ingredient label that most of the ingredients
are things I recognize and would use at home.
(2014 ) (Answer: agree, strongly agree)
5
People want ingredients they recognize
• In all selected countries, the majority of consumers found it important in product
choice to recognize the ingredients.
Source: Health Focus International

6. www.innovadatabase.com
More in store for protein and fiber

7. Consumption of protein is increasing
7
21%
45%
30%
38%
25%
18%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Australia Indonesia Malaysia Philippines Thailand China
%ofrespondents
Have you increased or decreased your consumption of the following
ingredient in the past 2 years? Answer: increased (2014)
Protein
• Many consumers in the regions said to have increased their consumption of protein
during the last two years.
• Comparing ASEAN countries with Australia and China, this development is stronger.
Source: Health Focus International

8. Protein: recommended for all consumers
Vegetarians
Sufficient protein
intake
Sporters
Building muscle
mass & recovery
Dieters
Satiety
Seniors
Maintaining
muscle mass

9. International and local brands put protein front of pack
• While international brands launch protein milk drinks, local brands in Asia address it
next to calcium claims.
9

10. Increase in consumption of fiber
10
26%
33% 34%
23%
41%
34%
31%
6%
27%
15% 16%
26%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Australia Indonesia Malaysia Philippines Thailand China
%ofrespondents
Have you increased or decreased your consumption of the following
ingredient in the past 2 years? Answer: increased (2014)
Fiber Whole grains
• In contrast with Australia, ASEAN countries showed more consumers said to have
increased fiber consumption more than wholegrain consumption.
Source: Health Focus International

11. www.innovadatabase.com
Sugar reduction
11

12. Australia and Americas lead in reduced calorie NPD
• Australia, Latin America and North America stand out when it comes to claims being
used on products around reduced sugar, fat and calories or carbs.
12
8.0%
5.9%
22.4%
7.2%
16.1%
6.0%
20.1%
12.1% 11.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Africa Asia Australasia East
Europe
Latin
America
Middle
East
North
America
West
Europe
Global
%OFTOTALLAUNCHES
% of product launches by region with low, no or reduced
calorie/fat/sugar claims

13. Holistic approach for a healthier lifestyle
• Most consumers agree that leading a healthy lifestyle is more important than
following a specific diet.
13
51%
42%
18%
34%
19%
54%
37%
16%
29%
13%
80% 83%
58%
81% 81%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Brazil China Germany Russia United Kingdom
Which statement describes your attitude the best?
I am confused about the food choices I have to make to lose weight
I believe supplements can help me when I am trying to lose weight
Living a healthy lifestyle is more important than following a specific diet

14. www.innovadatabase.com
Healthy aging
14

15. Consumer believes in role of food for future health
15
34%
60%
65%
58%
53%
35%
0%
10%
20%
30%
40%
50%
60%
70%
Australia Indonesia Malaysia Philippines Thailand China
%ofrespondents
I believe certain foods and beverages can actually help slow the
process of aging (selected answer) (2014)
• More than half of the consumers in ASEAN countries believe that certain foods
and beverages are really able to slow the process of aging.
Source: Health Focus International

16. Only in Asia the real age is put on the product
16
High calcium nutritional
milk formula with vanilla
flavor for aged people (51
years up).
Good for the heart. Enriched
with EPA and DHA. With
omega-3. With essential fatty
acids.
Same age group Younger age group

17. Digestive health is on-trend in China
• Mainly in the dairy yogurt category, claims on probiotics in relation to digestive health
are on trend.
• Other emerging health claims in China are added vitamins/minerals, fiber and protein.
17
0
50
100
150
200
250
300
350
400
450
500
2011 2012 2013 2014 2015
Numberoflaunchestracked
Indexed:2011=100
On-trend health claims among food & beverage product launches tracked
Indexed - China
Digestive/Gut Health
Vitamin/Mineral
Fortified
High/Source of Fibre
High/Source of
Protein