HW continues to outperform standard variants
Manufacturers faced slowdown in sales of standard foods and beverages globally. Sales of products with health and wellness (HW) credentials are the value generator. The HW soft drinks market is relatively consolidated and drinks companies appear to be more active in terms of new product development than food companies, creating a wave of demand for hybrid categories such as coconut- and plant-based water.
SDGs and strategies
Multinationals stated that they follow the UN’s SDGs and their business strategies such that acquisitions are linked to SDGs.
Regulatory challenges
Despite encouraging growth potential, HW marketers/investors need to bear in mind the strict regulatory operating environment. They need to work within the regulatory framework for health claims, nutritional facts, labelling and advertising, which can vary in different markets.
Acquisition and venture capital
Acquisition remains a key growth strategy for major multinationals particularly for quick access to certain expertise and skills. Exploiting venture capital to support small brands is increasingly common, meaning the market is crowded with more small brands competing.
Digital competition
Marketers are competing in a world without physical borders. Hyperconnectivity has created plenty of growth opportunities for brand building and e-commerce.
Introduction
Scope
Introduction
Key health attributes: Free from, organic, functional and sugar reduction
Manufacturers: Holistic approaches to expand HW
Key findings
Strategic Overview : Hw a Value Generator
HW continued to outperform non-HW food and drinks in 2015-2016
Major players’ organic sales outpace other types in 2015-2016
TCCC’s organic sales grew faster than other types in 2015-2016
Highlights of market trend and companies’ growth characteristics
Top 10 companies 2016: Drinks companies lead
Strategic Overview : Shared Challenges and Sdgs
Companies’ shared challenges: Regulation compliance
Companies’ shared challenges: Digital connection a double-edged sword
Companies’ shared challenges: Portfolio management
Corporate commitments linked to UN’s SDGs and HW perspective
Selected multinationals’ 2020 commitments
Examples of brands influenced by corporate commitments
Section key learnings: Action on SDGs reflected in brand activity
Major Acquisitions and Implications : Overview
Portfolio management with multiple strategies: Acquisition vs in-house
Formation of DanoneWave : The concept of a public benefit corporation
Major Acquisitions and Implications : Highlights of Acquisitions
Selected acquisitions and implications: Beverages
Bai and KeVita have flavour edge: Implication for ingredient firms
TCCC under pressure and alternative beverages outpace cola
Selected acquisitions and implications: Foods
International shopping appetite: Chinese vs Japanese
Major Acquisitions and Implications : Vc and Start-Ups
Surge of venture capital interest; niche is the new mass
Start-ups, crowdfunding and disruptive retailing
Danone, Campbell and TCCC capturing eating/cooking occasions
Personalised nutrition and recipes: Campbell Soup invests in Habit
Section summary: Acquisitions complemented by VC in the digital era
Key Learnings
Key learnings: Commitments determine strategies
Appendix
Health and wellness product coverage
Health and wellness category definitions
HW Taxonomy
Health and wellness packaged food taxonomy (no double counting)
Health and wellness beverages taxonomy (no double counting)
Appendix: Competitor Analytics
Competitor Analytics tool
Overview
Competitors
Market Overlap
Treemap
Overlap Matrices
Appendix: Industry Forecast Model
About Euromonitor International’s Industry Forecast Model
Soft drivers and the Industry Forecast Model
Growth decomposition explained
Significance and applications for growth decomposition
Key applications for Industry Forecast Models