Competitive benchmarking of health ingredients

Competitive Benchmarking of Health Ingredients

Anjaneya Reddy

Industry Analyst

Chemicals Materials and Food

16th November 2010

Frost & Sullivan’s Growth Consulting can assist with your growth strategies

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Today’s Presenter

Anjaneya Reddy,

Industry Analyst

Frost & Sullivan

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Agenda

• Ingredient profile – Health Benefits

• Key Functional Ingredients

• Benchmarking exercise

• Ingredient Overview

• Omega -3

• Probiotics

• Proteins

• Frost & Sullivan’s expertise

• Further steps

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Ingredient Profile: Health Benefits

Omega 3, Phytosterols, Fibre, Antioxidants

Herbal extracts, fibre, protein, fatty acids

Omega 3, Antioxidants, amino acids,

CVD

Weight

Management

Cognitive

Probiotics, fibre, protein, vitamins & minerals, omega 3,

antioxidantsElderly

Minerals, vitamins, omega 3, protein, amino acids, antioxidants,

BotanicalsBone & joint

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Key Functional Ingredients

Ingredients Why is it Hot?

Omega 3 Positioned for key diseases / disorders that are on rising

incidence

Probiotics Most acceptable application format (yogurt); Positoned for

digestive health disorders that form basis for improving

resistance to diseases; best suited for elderly

Natural Vitamin E (Antioxidants) Most well established antioxidant; Natural form is the “in”

trend

Soy Protein (Proteins & Amino

acids)

One of the best substitutes for dairy protein (with

increasing incidence of lactose intolerance); protein quality

equivalent to dairy proteins; Constantly improving flavour

profile

Phytosterols (Botanicals) Well positioned scientifically & commercially in the area of

heart disease

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Ingredient Profile: Science & Technology

100 1100 2100 3100 4100 5100 6100 7100 8100 9100

Omega 3

Probiotics

Prebiotics

Antioxidants

Proteins / Aminoacids

Vitamins & Minerals

Others

2006 2007 2008 2009

Comparison of Number of Research Papers for Different Ingredients

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Ingredient Profile: Summary

Ingredients Omega 3 ProbioticsFibre /

Prebiotics AntioxidantsProteins /

Aminoacids

Vitamins &

Minerals Botanicals

Ranking on a Scale of 1- 10

6.9 6.4 5.6 6.8 7.0 7.1 6.4

Ingredients Ranking

1. Research Profile 6. New Product Introduction

2. Health Claim - Regulatory 7. Consumer Marketing

3. Health Positioning 8. Current Market Size

4. Application Profile 9. Sustainability

5. Consumer Awareness 10. Market Growth rate

Top 10 Parameters Used to Assess the Ingredients

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Benchmarking Exercise

Ingredients Weightage Omega 3 Probiotics Prebiotics Antioxidants

Proteins /

Aminoacids

Vitamins &

Minerals

Botanical

s

R&D Investment 15% 6 7 6 7 6 5 5

Research Profile 13% 6 6 5 8 7 4 6

Health Claim -

Regulatory 13% 8 6 6 5 7 9 5

Health Positioning 11% 8 6 6 5 5 8 8

Application Profile 10% 7 5 6 8 8 8 7

Consumer Awareness 10% 7 8 5 8 8 9 7

New Product

Introduction 9% 7 5 4 6 7 4 8

Consumer Marketing 8% 8 6 5 8 8 9 7

Current Market Size 6% 7 7 4 5 8 9 5

Sustainability 5% 5 7 9 8 6 9 6

Total Score 100% 6.9 6.4 5.6 6.8 7.1 6.7 6.4

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Omega 3 Ingredients

• Well-positioned for cognitive & heart health

• New research areas include immune & bone & joint health

• Most important challenge is the flavour profile that decelerates penetration into many food applications

• Key players -

• Marine Oil: Pronova BioPharma ASA, EPAX AS, ONC

• Algal source: Martek & Lonza

• Sources under development include: flax, soy

Consumption: 16,697 MT

Unit Consumption by Europe & US, Metric Tons (2009)

USA - 23,051 MT

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Probiotics

• Well-positioned for digestive & immune health

• New research areas include oral care & women health

• Most important challenge is stability issues that prevent penetration into application other than dietary supplement & dairy

• Key players: Chr.Hansen, Danisco, Probi, BioGaia, DSM, Yakult

• Other key service providers / stake holders: Bifodan, Cell Biotech, Campina, Nestle, Danone etc.

Revenue : $ 102.5 Million

Revenue - $350.0 Million

Revenue for Europe & US (2009)

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Proteins

• Well-positioned for Nutritive and structural function in manufactured foods

• New research areas include condition specific claims

• Technology improvements in plant proteins are increasing the total market for protein ingredients globally.

• Soy, pea, wheat, canola, rice, potato, chia etc are plant proteins being used and developed currently

• Key players: Friesland-Campina, Arla, Armor, Solae, ADM, Solbar, Rouquette, Avebe

Revenue : $ 3758.1 Million

Revenues - $ 3065 Million

Revenue by Europe & US (2009)

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Focus Areas of Frost & Sullivan’s Functional Ingredients Practice

Frost & Sullivan

Food & Beverage

Ingredients

Practice

Nutrition & Health: Functional Foods

& Beverages; Dietary Supplements

PUFA, Probiotics, Prebiotics, Antioxidants,

Other Condition Specific Health Ingredients

Food Additives: Bakery, Dairy,

Confectionery, Beverages

Antimicrobial & Antioxidant Preservatives,

Flavours & Flavour Enhancers, Emulsifiers,

Enzymes, Sweeteners, Others

Animal Nutrition: Poultry, Swine,

Ruminants, Pets, Aquaculture

Nutritional Ingredients, Shelf-life stabilisers,

Sensory Ingredients, Others Consumer Needs & Awareness

Technology & Innovation

Emerging Markets: Products,

Applications & Geographies

MARKETS COVERED RESEARCH THEMES

Regulatory Affairs & Legislative

Developments

Food Security, Safety &

Sustainability

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Health Ingredients: Our Coverage

Available Topics

Omega 3 ingredients Heart Health

Probiotics Digestive Health

Prebiotics Bone & joint health

Fibre Eye Health

Dairy Proteins Weight Management Solution

Plant Proteins Infant Nutrition

Amino Acids Enteral Nutrition

Green Tea Extracts Functional Beverages

Natural Extracts Co-enzyme Q10

Natural Colours CLA

Artificial sweeteners Food Starch

Enzymes Flavours

Emulsifiers

Upcoming Topics

Immune Health Women Health

Anti-hypertensive Health Cognitive Health

Sports & Fitness Nutrition

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Health Ingredients: Our Coverage

Planned Topics (2011)

• Salt Reduction

• Collagen Peptide

• Natural Sweeteners

• Food Fibers (update)

• Heart health (update)

• Sustainable ingredients

• Ingredients for enteral nutrition

• Gluten-free solutions

• Trans-fat free solutions

• Emerging Flavours

• Hydrocolloids

• GMO

**Geographies Covered: North America, Europe, South Africa, APAC, South America

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For Additional Information

Sarah Saatzer

Corporate Communications

Chemical, Materials, & Food

(210) 477-8427

[email protected]

Mark Hicks

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sangeetha.srinivasan @frost.com