With Lamine Lahouasnia - Global Head of Packaged Food Research and Lauren Bandy - Foods Analyst
Kraft and Mondelez recently released their first full year results after the historic splitting of Kraft Foods Inc. The results see Kraft recording relatively stagnant growth while Mondelez only grew slightly. However, Mondelez is better positioned to take on the global market, as its portfolio contains products growing faster in emerging markets such as confectionary and biscuits. In order for Kraft to have a similar global position, it should leverage its well-known brand names into newer, faster growing categories.
Analyst Insight by Kathy Boyle - Contributing Analyst
Ayurveda, a system of traditional medicine found in India, has received a fairly mixed press since it first came to the notice of western consumers. While many swear by it as a natural route to better health, there have been concerns raised over the levels of toxins found in some imported Indian medicines and the lack of quality control in the market, with regulatory bodies in some countries now looking to tighten up on distribution. However, while it would be unwise to blindly believe in the safety and efficacy of all Ayurvedic medicines, ongoing scientific investigation suggests that many of the most popular Ayurvedic plants do have distinct medicinal benefits, and with the strong focus currently placed on naturally healthy botanical extracts, it is time for ingredients manufacturers to look more closely at the opportunities that this field of alternative medicine can offer.
From Dietary Supplements to Functional Foods?
As with most botanical extracts, the dietary supplements market has been the initial target for many active Ayurvedic ingredients. However, more recently, rising interest has been noted in the sports nutrition category, while some speciality and herbal teas in western markets now include Ayurvedic components. Although consumer awareness of specific Ayurvedic botanicals is still very low, these developments suggest that acceptance of perceived benefits can overcome knowledge of specific ingredients.
Location: Anaheim Convention Center, Anaheim, CA USA
Event Summary: Engredea brings together the community of leading suppliers and manufacturers to source new ingredients, packaging, technologies, equipment, and services in the global nutrition industry. Engredea, co-located with Natural Products Expo West, is the only trade show that brings together the full food chain of supply to shelf.
Presentation Date and Time: Friday, March 7 9:00-10:00 am
Presenter: Svetlana Uduslivaia, Senior Research Analyst
Presentation Topic: Global Trends in Nutricosmetics
Presentation Summary: The global Nutricosmetics market reached estimated USD$ 3.7 billion in 2013 and demonstrated a healthy growth in value. This is owing to a number of factors, including rise in aging population, the desire to look young and attractive, as well as product development. The industry is still dominated by the dietary supplement format. Foods and beverages with beauty-from-within positioning remain significantly smaller, although product development is helping drive sales in a number of regions.
While innovation in nutricosmetics continues, the industry is still faced with a number of challenges, including regulatory hurdles with respect to product claims and advertising as well as full consumer acceptance and understanding of product efficacy in some markets. Euromonitor’s presentation will address some of these challenges and will review strategies that can help the industry to grow.
Conference: Euromonitor International is pleased to be speaking at H3i event organised by the British Association for Chemical Specialties (BACS), which takes place March 11-12, 2014 at the NMM, Birmingham, UK. BACS represents about 125 companies in the specialty chemicals supply chain, a large number of whom provide ingredients, products and services to the household, industrial and institutional (HI&I) cleaning sector: the focus of the H3i event. The BACS Conference at H3i is designed to provide an insight into a range of topics and issues of relevance to the specialty chemicals industry in general and the HI&I sector in particular, with papers given by expert presenters.
Date: March 11, 2014
Ian Bell, Head of Home Care and Tissue and Hygiene Research, will deliver a presentation entitled A World of Home Care -Who’s Driving? With What? and to Where?
with Diana Cowland - Health and Wellness Analyst and Lauren Bandy - Ingredients Analyst
Reducing sugar intake is a hot topic for health conscious consumers, media campaigns and even the World Health Organisation. Food manufacturers that release low-sugar versions of their products often find these items simply do not sell. Consumers either complain about the taste of these low-sugar variants or do not buy them outright, especially in indulgent categories such as confectionary. The best way for companies to lower sugar content is through “stealth reduction” –changing the formula of a food without consumer’s knowledge. If consumers do not know a product has changed, they will be less likely to notice a difference in taste. In beverages, the tactic is easier as consumers have been purchasing low-sugar, sugar free and sugar substituted beverages for years.
Analyst Insight by Cathy Boyle, Contributing Analyst
The use of flowers as food remains a highly unusual concept for many consumers around the world but this could well change in the coming years as growing pressure to source ingredients from natural and renewable raw materials is generating greater interest in the opportunities offered by floral ingredients.
Some flowers are already being eaten in their purest form, with a number of gourmet foods suppliers offering edible flowers for cooks, including products such as safflower, marigold, cornflower, hibiscus, rose, gerbera and carnation petals. Sugared or candied petals are also available to enhance premium desserts and confections, including the likes of rose, mimosa, violet and lavender, while there is also growing consumer awareness of salad opportunities for some flowers, with recipes for pansy-, rose- or nasturtium-based salads now more widely promoted.
Flavour Opportunities Expand
While these products and ideas are still restricted primarily to upscale cuisine and gourmand consumers, the flavours industry is now placing more attention on floral tastes and this will help to widen opportunities for flower concepts in the food and drinks arena. To date, the impact of floral flavours has been most pronounced in the soft drinks market, perhaps as a spin-off from their past use in herbal teas. Hibiscus, in particular, has experienced something of a purple patch in the soft drinks market in recent years, featuring in a number of juice-based health drinks around the world.
The flurry of hibiscus-flavoured developments has also rejuvenated interest in rose flavours, which already have associations with the beverage market through past consumption of rose syrups. At the same time, greater diversification is occurring and a number of companies are now looking at other flower sources for new flavour opportunities. For example, in the US, Global Beverages has recently launched a Sweet Blossom Lavender soda, while Coca-Cola’s Römerquelle business in Austria has introduced Römerquelle Flowers mineral waters with floral flavours, including violet with orange blossom, hibiscus with dandelion and jasmine with elderflower varieties. Meanwhile, Australian bottled water brand Balance (also available in the US and Germany) uses blends of Australian flower essences to help consumers to relax, to maintain mental calmness and to alleviate the unwelcome symptoms caused by travelling.
Plants Traditionally Grown for their Flowers Can Offer so Much More
While they can enhance the appearance and/or flavour of finished food and drinks, the opportunities for flowers certainly do not end there. Exploitation of the world’s natural resources is continuing to expand into new areas and plants that have traditionally been grown primarily for their decorative flowers are now being explored for new ingredient opportunities, if not from the flowers themselves then from their seeds. One such flower is the lupin, whose seeds are now being used widely for the production of flour and other ingredients. Lupin flour has been featured in bakery formulation for some time now but it is the protein ingredients from lupin seeds that could hold best future potential as demand for more plant-based proteins is increasing steadily. At the same time, the search for new resources will continue and flowers will certainly be on the menu for ingredient formulators.
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PepsiCo and Coca-Cola, the world’s two leading cola companies, are both exploring new sweeteners to combat volume losses in the soda category. Pepsi is working on a substance called X617 allowing for reduced use of high fructose corn syrup and lower calorie totals. Coke has turned to stevia producer Pure Circle for the sweetener Reb-X. These attempts at sugar reduction are not only a way to chase lost sales, but attempt to change consumers’ mind about cola, which has declined in volume in North America due to the link between high sugar content and obesity. It remains to be seen if this can be accomplished, as consumers trust artificial sweeteners less and less.
Supplying ingredients to the global food and beverage industry remains something of a balancing act as ingredients firms respond to multiple trends and influences. This report assesses the most important industry drivers, provides an overview of the market and highlights trends in 15 key added-value ingredients categories. At the same time, it aims the spotlight on the emerging markets and demonstrates just how important these will be to ingredients suppliers in the coming years.
In 2013, Europe (that’s both Eastern and Western Europe combined) was the largest ingredients market globally. With Asia Pacific rapidly overtaking in terms of volume consumption, and forecast growth set to remain slow in Europe, more specialist and functional ingredients are one solution for manufacturers to help maximise value growth. Botanicals, minerals, vitamins, cocoa and sweeteners are the top 5 ingredients for growth, with Turkey and Russia set to be the fastest growing markets.
Event Description: Probiota 2014 will explore the prebiotic-probiotic scientific frontier its evolution and commercial application in food, nutraceuticals, pharmaceuticals and cosmetics across the globe.
The global prebiotic and probiotic markets are changing rapidly and we are changing too - we even have a new name - Probiota - to reflect the meshing of Probiotech and Microbiota we began at the 2013 event. We're also moving from Brussels to Amsterdam for the 2014 conference.
Speaker: Ewa Hudson, Head of Health and Wellness
Presentation Date and Time: 4th Feb, 11:05-11:30
Presentation: Globiotics: Around the Pre- and Probiotic World in 80 slides
Latest developments in established and emerging markets and matrices