A Global Perspective on the Food Industry

Report 12 Downloads 321 Views

... cost of food increase? What are the choices facing manufacturers? .... Key Trends in Private Label: Added Value ... And The Latest Innovation Highlights Are…

A Global Perspective on the Food Industry

Euromonitor International Francisco Redruello – Senior Food Analyst

© Euromonitor International

What is happening to food regulation? Where is the food market going? Is it possible to be healthy in a recession? Will the cost of food increase? What are the choices facing manufacturers? Where are the opportunities for private Label?

Where are the opportunities for brands? Q&A

2

Euromonitor International – Danish Food and Drink

© Euromonitor International

What is happening to food regulation?

3

Euromonitor International – Danish Food and Drink

© Euromonitor International

Heavy Regulation in EU Food and Drink Market

EU food & drinks market is heavily regulated

Regulatory environment in emerging markets is more flexible

Convergence expected in the medium term

4

Euromonitor International – Danish Food and Drink

© Euromonitor International

Stricter Food Regulation in Emerging Markets Could Open Door to International Manufacturers

Stricter food regulation

Market consolidation

Competitive edge for international manufacturers 5

Euromonitor International – Danish Food and Drink Federation

© Euromonitor International

Where is the food market going?

6

Euromonitor International – Danish Food and Drink

© Euromonitor International

Emerging Regions Will Lead Food Sales Growth Packaged Food Sales by Region. Retail Value Growth (%)* 5 4

3 2 1 0 -1 -2

2009-10

2010-15 CAGR %

*Constant 2010 Prices – US$ Fixed 2010 Exchange Rate 7

Euromonitor International – Danish Food and Drink

© Euromonitor International

Maturing Consumer Demand Slows Food Growth in Denmark Packaged Food. Retail Volume Sales Growth by Sector (%) 8 6 4 2 0 -2 -4 -6 -8 2009-10

2010-15 CAGR % 8

Euromonitor International – Danish Food and Drink

© Euromonitor International

Is it possible to be healthy in a recession?

9

Euromonitor International – Danish Food and Drink

© Euromonitor International

Dairy is Largest Functional Food Sector

Functional/Fortified Food Sales by Sector. Retail Value (2010). US$ Million. World Level. 70.000 60.000 50.000 40.000 30.000 20.000 10.000 0

10

Euromonitor International – Danish Food and Drink

© Euromonitor International

Bakery Products Lead Functional Growth in 2010 Functional/Fortified Food Sales Retail Value Growth (%)* (2009-10). World Level.

3,5 3,0

2,5 2,0 1,5 1,0 0,5 0,0 Bakery Products

Confectionery

Dairy Products

Oils and Fats

Snack Bars

Other Food

*Constant 2009 Prices • Fixed 2009 US$ Exchange Rates 11

Euromonitor International – Danish Food and Drink

© Euromonitor International

Sports Drinks is Largest Functional Sports Drinks Sector

Functional Beverage Sales by Sector. Retail Value (2010). US$ Million. World Level. 18.000 16.000 14.000 12.000 10.000 8.000

6.000 4.000 2.000 0

12

Euromonitor International – Danish Food and Drink

© Euromonitor International

Concentrates Lead Growth in 2010 Functional/Fortified Beverage Sales Retail Value Growth (%)* (2009-10). World Level

Sports Drinks RTD Tea Fruit/Vegetable Juice Energy Drinks Elixirs Carbonates Bottled Water Other Hot Drinks Chocolate-Based F P Drinks

-4

-2

0

2

4

6

8

10

*Constant 2009 Prices • Fixed 2009 US$ Exchange Rates 13

Euromonitor International – Danish Food and Drink

© Euromonitor International

Organic Certification Still Matters

• Organic outperforms

conventional formats • Recovery is more rapid

for organic food • Consumers still willing to

spend more for better quality

*US$ million at constant 2009 prices, fixed 2009 exchange rates 14

Euromonitor International – Danish Food and Drink

© Euromonitor International

Will the cost of food increase?

15

Euromonitor International – Danish Food and Drink

© Euromonitor International

Food Commodity Prices Picking UP

Note: Commodity Food Price Index includes Cereal, Vegetable Oils, Meat, Seafood, Sugar, Bananas, and Oranges, 2005=100 16

Euromonitor International – Danish Food and Drink

© Euromonitor International

Moderate Increase in Labour and Energy Costs Expected

Source: Eurostat

Source: International Energy Agency 17

Euromonitor International – Danish Food and Drink

© Euromonitor International

What are the choices facing manufacturers?

18

Euromonitor International – Danish Food and Drink

© Euromonitor International

Impact on Supply Chain

Distribution

• Raw materials suppliers in

stronger position to pass on higher costs

Processing

• Retail chains unlikely to fully

Raw Materials

• Pressure on manufacturers

take on price increases

to adapt to new business environment

19

Euromonitor International – Danish Food and Drink

© Euromonitor International

The Two-Pronged Strategy

Upper • Added end of value is market king maker

Lower • Focus on price and end of value for market money

Specialisation into high growth niches

Diverting a larger share of production to private label 20

Euromonitor International – Danish Food and Drink

© Euromonitor International

Private Label Benefits for Suppliers

Economies of scale

Simplified logistics and supply chain

Sustainable Growth

No listing fees

No direct advertising investment required 21

Euromonitor International – Danish Food and Drink

© Euromonitor International

Private Label Benefits for Retailers

• 20-30% cost savings

Lower retail prices

for retailers relative to brands • Savings only partially

passed on to consumers

Strategic control Higher mark-ups

• Higher control of shelf-

space and delivery schedules 22

Euromonitor International – Danish Food and Drink

© Euromonitor International

Where are the opportunities for Private Label?

23

Euromonitor International – Danish Food and Drink

© Euromonitor International

Private Label is Highest in Meal Solutions

24

Euromonitor International – Danish Food and Drink

© Euromonitor International

Private Label in Developing Countries Still Minimal

• Western Europe, North

America and Japan claim 93% of total private label retail value sales • Private label negligible

in fragmented emerging markets

25

Euromonitor International – Danish Food and Drink

© Euromonitor International

Key Trends in Private Label: Price

• Wal-Mart’s private label

offerings are simply designed • Lack the sophistication of

brands and target priceconscious consumers • Private label in US gained

retail share across most sectors in 2009

26

Euromonitor International – Danish Food and Drink

© Euromonitor International

Key Trends in Private Label: Added Value Sainsbury’s Chocolate in UK

Edeka Bio Feta in Germany

El Corte Ingles Yoghurt in Spain

Auchan Rice in France

27

Euromonitor International – Danish Food and Drink

© Euromonitor International

And The Latest Innovation Highlights Are…

• Private label taps into demand for

health properties • ‘Ethical’ private label is new

emerging trend 28

Euromonitor International – Danish Food and Drink

© Euromonitor International

Where are the opportunities for brands?

29

Euromonitor International – Danish Food and Drink

© Euromonitor International

Brands Fighting Back in Developed Markets

30

Euromonitor International – FIE Conference

© Euromonitor International

And The Latest Innovation Highlights Are…

31

Euromonitor International – FIE Conference

© Euromonitor International

The Future of Food is Called Asia…

32

Euromonitor International – Danish Food and Drink

© Euromonitor International

…And Brands Are Already There

• Middle-class consumers

drive demand for brands • Standards similar to

developed markets in some food categories 33

Euromonitor International – Danish Food and Drink

© Euromonitor International

Q&A

Q&A THANK YOU. Francisco Redruello Senior Packaged Food Analyst Euromonitor International [email protected] www.euromonitor.com

34

Recommend Documents
food industry must shape up to curb obesity, food industry leadership certificate, ... trends 2014, food industry report india, organic food industry report, pet food ...

This book will not tell you how to regain your health but instead it will offer advice for any teenager who is considering changing his or her diet for health reasons or who already have food restrictions. This book is simply a reflection of my exper

If the eyes are the windows to the soul, then the camera lens is the conscience of ... I decided to go and record my time there. I was blown away at how much less ...

Anecdotally, it is observed that carry trades do well when currency volatility is low. This makes intuitive sense. To realize the carry in a carry trade, investors are ...

food industry shoes; fast food industry market share uk; food industry market share philippines. Ochelata - Oklahoma US > Lake toxaway - North Carolina US ...

components, facility and equipment operating conditions, in-process ... Most generic companies do not develop or manufacture the ... manufacturing equipment.

Composite Materials Engineering Jobs, Concept Chapter 34 Mapping Circulation In Humans,. Concluding Unscientific Postscript To Philosophical Fragments ...

environmental challenges facing the automotive industry: state-of-the-art and directions for .... system oriented issues, e.g., supply chain challenges. Findings ... DaimlerChrysler is working to use natural fibers, e.g., sisal and flax, instead of .

fungus-growers and the larger contribution of the soil-feeders in the HEF, suggesting ... Given the fact that the respiration rate of the litter-layer microbes largely ...

Zhongde Brewery, a large brewery in Wuhan, in Hubei province, eastern China. ... in the North Eastern province of Liaoning (Dalian and Shenyang), the use of ...