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3A Business Consulting1
3A Business Consulting
3A Business Consulting2
1. Introduction and methodology
2. Weight management and healthy ageing market
3. Weight management and healthy ageing industry
4. Dairy/plant proteins used in weight management
5. Report summary
Report outline
3A Business Consulting
Productscope
Marketscope
Keyplayers
Globalmarkettrends
Dairy andplant proteins
used
Market research approach
• Meal Replacement• Supplement Nutrition
Drinks• OTC Obesity• Weight Loss
Supplements• Slimming Teas
• Global• Western Europe• Eastern Europe• North America• Latin America• Australasia• Asia Pacific• Middle East and
Africa• Value per market• Volume per market• CAGR 2014-2019 and forecast 2020-2024
• Top 20 weight management and healthy ageing companies
• Top 20 global brands per market
• Distribution channels
• Consumer segments
• Product trends• Consumer trends
• Application/ volume usage of dairy and plant proteins
• WPC• WPI• WPH• MPC• MPI• MPH• Caseinate• Plant (soy, pea, rice
etc.)• Competitive structure
• Key dairy and plant protein companies focusing on weight management and healthy ageing
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Defining weight management and healthy ageing (1)
• Weight management and healthy ageing products are positioned in the marketplace as aiding loss of weight and wellbeing, maintaining weight and muscle, slimming or toning
• There is a certain overlap between weight management and healthy ageing, clinical nutrition and sports nutrition in that sports nutrition products mostly aim to gain lean mass and burn fat tissue, whereas Clinical Nutrition often seeks to provide essential nutrients and calories to people in need of extra energy or at risk of malnutrition. Weight management products are mostly calorie-reduced for slimming, toning or fat loss purposes, while healthy ageing products are often calorie-dense to maintain bone and muscle mass (prevent sarcopenia) in the elderly, often lacking the appetite to eat enough calories leading to loss of lean muscle tissue
• Weight management and healthy ageing encompasses Meal Replacements, Over-The-Counter (OTC) Obesity products, Weight Loss Supplements, Supplement Nutrition Drinks and Slimming Teas. Products for gaining weight and muscle mass, i.e. Sports Nutrition are excluded, and products for disease-related malnutrition or recovery used exclusively at hospitals, i.e. core Clinical Nutrition, are also excluded
• Weight Management and Healthy Ageing market volume estimates are based on Euromonitor Weight Management and Wellbeing category, where meal replacements will include several typical Weight Management food products, e.g. powders/bars, and the supplement nutrition drinks category will include products such as Abbott Ensure and Nestlé Boost, designed to supplement diets and for muscle-maintenance
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2024(F)
Total global valueUSD xx.xx Bn.
2019
Total global valueUSD xx.xx Bn.
2014
Total global valueUSD xx.xx Bn.
Value distribution - per weight management category
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Source: 3A Business Consulting based on Euromonitor
3A Business Consulting
0
500
1,000
1,500
2,000
2,500
USD
Mio
.
Value
Distribution of value, 2019
0 500 1000 1500 2000 2500
Total
Italy
France
Germany
Spain
United Kingdom
The Netherlands
Norway
Belgium
Turkey
Portugal
Sweden
Switzerland
Finland
Others
USD Mio.
Value per market, 2019
Major Western European WM markets 2019- and regional outlook
Note: “Others” include e.g. Austria, Denmark, Ireland and Greece
Source: 3A Business Consulting based on Euromonitor
CAGR13-18: -0.5%18-23: -0.2%
CAGR14-19: x%19-24: x%Value in E2024USD xx.xx Bn.
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Market trends in Western Europe (1)
• Italy is the largest weight management market in Western Europe valued at USD 400 Mio. in 2019. Despite rising obesity rates, no significant growth is expected towards 2024. Weight loss supplements will incur a reduction as consumers view products as ineffective with no slimming results. Consumers’ attention has shifted towards meal replacementsas products are viewed efficient for obtaining a healthy lifestyle. Meal replacements such as bars, and natural- and healthy products such as organic, gluten-free and plant-based products are increasingly popular
• France is a stable market with a value of around USD 300 Mio. in 2019and slow annual growth of 0.7% towards 2024. Consumers have growing health concerns, but are very sceptic towards meal replacements and weight loss supplements, viewing such products as highly priced with no slimming result. Slimming teas are a minor category of products gaining sales, having a reputation as a natural and healthy alternative
• Germany is a declining market as consumers increasingly pursue an active lifestyle. Flexible workplaces allowing for exercise in the morning, at lunch or in the evening and different options such as gyms and bike-sharing systems are the main trends. Lifestyle changes negatively impact weight management products as products are perceived as helpful in the short-term, but unhealthy in the long-term. Slimming teas are a minor category, but viewed as a convenient and natural complement to an active lifestyle
3A Business Consulting8
Source: 3A Business Consulting based on Euromonitor
Note: Forecasts are expressed in constant US dollar terms, thus unaffected by local currency fluctuations and exchange rates
Global weight management markets- outlook towards 2024
Forecasted retail values RSP 2024 and growth per region 2019-2024
Western EuropeValue: USD xx.xx Mio.
CAGR 19-24: x%North America
Value: USD xx.xx Mio.CAGR 19-24: x%
Middle East & AfricaValue: USD xx.xx Mio.
CAGR 19-24: x%
Latin AmericaValue: USD xx.xx Mio.
CAGR 19-24: x%
Asia-PacificValue: USD xx.xx Mio.
CAGR 19-24: x%
Eastern EuropeValue: USD xx.xx Mio.
CAGR 19-24: x%
AustralasiaValue: USD xx.xx Mio.
CAGR 19-24: x%Total global marketValue: USD xx.xx Mio.
CAGR 19-24: x%
3A Business Consulting
Major European Whey Processors
WP DWP WPC35 WPC80 WPI
Alpavit (DE)
Arla Foods Ingredients (DK)
Armor Proteines (FR)
Arrabawn Co-op (IE)
BMI (DE)
Carbery (IE)
Dairy Crest (UK)
Dairygold (IE)
DMK/Wheyco (DE)
Euroserum/Sodiaal (FR)
Fonterra (NL)
FrieslandCampina (NL)
Glanbia (IE)
Hochwald (DE)
Ingredia (FR)
Kerry Ingredients (IE)
Lactalis (FR)
Meggle (DE)
Milei (DE)
Pieno Zvaigzdes (LT)
Sachsenmilch/Müller (DE)
Valio (FI)
Volac (UK)
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Major dairy and plant protein
suppliers
3A Business Consulting10
Global weight management and healthyageing trends (1)
Weight management partly outperformed by sports nutrition
• An increasing number of consumers substitute WM products with sports nutrition products, favoring an active lifestyle complimented with a healthy diet over meal replacements or quick fixes
• This trend mostly occurs in developed markets such as Western Europe and North America as fitness and health-living trends are stronger compared to other regions
• WM grew by CAGR 4% from 2014-2019 while sports nutrition reached annual growth of 12% in the same period, and expected to outgrow WM towards 2024 in market value
Regulation surrounding weight management
• Regulations surrounding the weight management industry differ depending on the market and are continuously changing, making local adaptation necessary
• Strict regulations related to manufacturing, suppliers, ingredients and claims used in weight management products raise industry entry barriers and impact producers. On the other hand, such regulations benefit consumers as they increase transparency for consumers and protection from counterfeit products
Clean labels and natural ingredients
• With a greater focus on overall health, more consumers are looking for clean labels and products containing natural ingredients that are free from allergens, unprocessed, organic, non-GMO cruelty-free (non-animal based) etc.
• Demand for plant-based protein sources and ingredients for weight management purposes have soared with ingredients such as quinoa, chia seeds, lentils, peas and isolated pea protein becoming increasingly popular
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Broad lifestyle changes underpin movementaway from weight management (1)
• During the last decade, broad lifestyle changes have drawn consumer movement away from weight management and healthy ageing. Increasingly, modern consumers are shifting their attitudes about body image, letting go of intermittent dieting, instead recognizing the value of boarder, more structural health goals tied to deeper lifestyle changes
• Health and lifestyle changes negatively impact weight management sales as consumers alternatively favour natural, trustworthy and clean labelling products. This means weight management faces competition from other consumer health markets e.g. sports nutrition
• Additionally, consumer lifestyles have evolved away from bulky, time-consuming shakes towards products such as on-the-go options that are critical for achieving new lifestyle goals. New norms and lifestyle changes are popularized and amplified through social media, suppressing interest for weight management products
The changing nature for
weight management and healthy
ageing
Bodypositivity
Forcemultiplicationfrom social
communities
On-the-gooptions
Natural andtrustworthy
Competition with
adjacent markets
Broader health goals
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Protein sources are different fromadjacent markets
• Protein is a key component in most weight management and healthy ageing products. Even though protein levels are not as high as in sports nutrition, weight management products are often calorie-reduced without compromising protein content, which partly can be achieved through fortification with protein ingredients
• Many weight management and healthy ageing products are fortified with protein from various sources. While whey proteins, widely considered the golden standard for muscle building, are the most dominant protein type used for sports nutrition, other dairy proteins are currently more prevalent in the weight management and healthy ageing space, namely milk proteins
• Non-dairy protein sources, particularly soy proteins, enjoy a strong position in the weight management and healthy ageing market, even stronger than whey proteins due to consumers not being as fussy in terms of protein quality. Soy proteins are typically cheaper, but still containing all essential amino acids. Additionally, plant-based protein ingredients are sometimes perceived as healthier and more sustainable, and more in line with the clean label and natural ingredients trend
• Apart from soy proteins, other plant-based protein sources, namely pea proteins, have seen increased use in weight management and healthy ageing in the past decade. For example, Shakeology has launched a vegan product with a protein blend consisting of pea-, oat- and rice protein, chia-, flax- and quinoa seeds
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0
50
100
150
200
250
# p
rod
uct
s la
un
che
d
Abbott
Nestle Health Science
Fresenius Kabi
Nutricia
Nutrisens
Nestle Nutrition
Lactalis Nutrition Sante
Hormel Foods
Vitaflo
Meiji
0
50
100
150
200
250
300
2014 2015 2016 2017 2018 2019
# p
rod
uct
s la
un
che
d
West Europe
North America
Middle East
Latin America
East Europe
Australasia
Asia
Africa
• 1,291 new healthy ageing products containing milk proteins have been launched between 2014 and 2019 with Western Europe and Asia collectively accounting for 66% of total launches
• Product launches within North America have stagnated significantly in the review period. Asia is catching up and moving towards overtaking North America, becomming the second most active market
• Abbott and Nestlé have been the most active companies launching healthy ageing products containing milk proteins between 2014-2019
• A great number of companies have launched new products in the category, with the top-10most active accounting for 79% of launches
New product launches / consumer product trends- milk proteins in healthy ageing (1)
Historic development
Most active companies
Note: Innova’s clinical nutrition category includes both products for muscle-maintenance and preventing muscle loss in seniors but also products used by healthcare professionals in treatment of patients, not included under the definition of healthy ageingproducts.Note 2: Nutricia and Fresenius Kabi products often fall outside the healthy ageing product definitionNote 3: Search methodology is not completely mutually exclusive, meaning double-counting may occurSource: Innova Market Insights
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Soft Drinks49%
Cereals18%
Soup9%
Ready Meals & Side Dishes
9%
Dairy4%
Bakery4%
Desserts & Ice Cream2%
Others5%
0
20
40
60
80
# p
rod
uct
s la
un
che
d
AmwayAtkins NutritionalsNestleOnsalesitMyproteinGncHealthsmart FoodsSlimfastHerbalifeMarico
0
50
100
150
200
250
300
350
2014 2015 2016 2017 2018 2019
# p
rod
uct
s la
un
che
d
West Europe
North America
Latin America
East Europe
Australasia
Asia
Africa
• 1,079 new weight management productscontaining whey proteins have been launched between 2014 and 2019 with Western Europe and North America collectively accounting for 73% of total launches
• 2019 was a record year with more than 300 launches. Asia was a major contributor as launches almost doubled from 2018 to 2019
• Amway and Atkins have been the most active companies launching weight management products containing whey proteins between 2014-2019
• A great number of companies have launched new products in the category, with the top-10most active accounting for 25% of launches
• Soft drinks have been the most popular category with for weight management products containing whey proteins followed by cereals and soup
• The soft drinks category mainly include powders and RTDs positioned for weight management
New product launches / consumer product trends- whey proteins in weight management (1)
Historic development
Most active companies
Major application segments
Note: Search methodology is not completely mutually exclusive, meaning double-counting may occur
Source: Innova Market Insights
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New product launches / consumer product trends- whey proteins in weight management (2)
Company: Atkins Nutritionals
Date: September 2019
Category: Cereals/energy bars
Ingredients: Almonds, polydextrose, soy protein isolate, pumpkin seeds, soybeans, palm kernel oil, whey protein concentrate etc.
Company: Slimfast
Date: September 2019
Category: Meal replacement
Ingredients: Mct oil blend (palm, coconut, grass-fed butter), protein blend (whey protein concentrate, whey protein isolate, etc.)
Company: Amway
Date: January 2019
Category: Soup
Ingredients: Whey protein concentrate (milk), maltodextrin, fat powder (soy oil, maltodextrin, milk protein, emulsifier (soy lecithins)) etc.
Company: P28 Foods
Date: June 2015
Category: Ready meals
Ingredients: Water, whole wheat flour, P8 blend (whey protein isolate, wheat gluten, soybean), sugar, contains 2% or less of: cornstarch, wheat starch etc.
Company: Heinz India (Zydus W.)
Date: December 2018
Category: Dairy
Ingredients: Milk solids (37.8%), (skimmed milk powder, whey protein concentrate, casein), sugar, chocolate (15.75%) (sugar, cocoa solids), maltodextrin etc.
Company: Youngevity
Date: November 2019
Category: Meal replacement
Ingredients: Calcium, vitamin d3 (as cholecalciferol), magnesium, chromium, iron, phosphorus, fitshake protein blend (whey protein concentrate etc.)
Note: Out of the xxx products, xxx contained WPC, xxx had WPI, xxx had WPH and xxx contained whey proteins not further specified
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Methodology for volume estimations- calculating product and ingredient quantities
• The percent retail value shares of the five categories within weight management are multiplied with the market value for each market. This results in a value estimate for each weight management category. These values are then divided by an estimate for the average price of the relevant product category (e.g. USD xx/kg for drinks), resulting in an estimate for the total volume of each product consumed in each market
• The resulting volume estimates are multiplied by average protein content of the respective product category (e.g. xx% for drinks), and further multiplied by the protein type share of total protein in the category
• These respective protein volumes are then subsequently converted to ingredient volumes using an assumed ingredient protein content of xx%
• Summing the results of the above calculations for each product type in each market leads to the reported estimates for dairy and plant protein volumes in weight management
• The ‘Other’ protein category may include other animal-based proteins, however more than xx% of volumes in this category is estimated to be plant proteins
• The meal replacement and supplement nutrition drinks categories are really the only weight management and healthy ageing categories included to add any significant amount of dairy and plant proteins
• Below the protein content and protein types in the two key product categories are summarized together with the assumed average retail prices (excl. VAT)
Note 1: The quantity estimates for RTD is for fluid RTD’sNote 2: The protein ingredient category “Other” includes soy protein and other vegetable proteins. Casein/caseinate protein are included in the MP category and with a varying share of total milk protein content depending on the product categoryNote 3: All values expressed in this report are in US dollar terms using a fixed 2019 exchange rate
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xx
xx
xx%
xx%
xx%
xx%
xx%
xx%
xx%
xx%
3A Business Consulting
Global weight management market volumes
• The total weight management market is estimated to grow 5% annually towards 2024
• Meal replacement and supplement nutrition drinks are the two fastest growing product categories, with the latter forecasted to grow at a faster rate of 9.8% over the forecast period
• Weight loss supplements, slimming tea and OTC obesity do, for the most part, not contain dairy and plant proteins and are excluded from further analysis for the purpose of this report
Volumes per category, 2014-2024
Note: Due to high variations/volatility in ingredient prices it is difficult to estimate a reliable value estimate for 2024
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Market size (USD Mio.)
2014 2019CAGR 14-19
CAGR 19-24
2024FVolume estimates (‘000 MT)
TOTAL VALUE xxx xxx x% x% xxx
TOTAL VOLUME xxx xxx xxx
Meal replacements xxx xxx xxx
Supplement nutrition drinks xxx xxx xxx
Note: Some totals affected by rounding
3A Business Consulting
Global ingredient volume usage 2019
• Applying calculations explained in the methodology section, the estimated volumes of consumer products are used to calculate the volume of high-concentration protein ingredients used in weight management & healthy ageing
• This results in 2019 volume estimates below:
• WM consumers are generally less finicky in terms of protein quality and absorption speed compared to SN consumers where whey is the dominant protein for fast absorption and superior aid in recovery
• Within supplement nutrition drinks, milk proteins used are primarily MPC/MPI with 15-25% estimated to be caseinates
• A relatively larger share of milk protein used in meal replacement is caseinate, an estimated 50/50 split between MPC/MPI and caseinate
• More than 80% of the non-dairy protein applied in WM is estimated to be soy proteins though with pea proteins showing good growth
Note: Some totals affected by rounding
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2019 Volume estimates (‘000 MT)
Consumer products
Protein ingredients
WP MP OtherTOTAL
ingredients
TOTAL xxx xxx xxx xxx xxx
Meal replacements xxx xxx xxx xxx xxx
Supplement nutrition drinks xxx xxx xxx xxx xxx
3A Business Consulting
Global weight management and healthy ageing report- project management and costs
3A Business Consulting
- Managing Partner – Tage Affertsholt
- Junior Consultant – Andreas Watson
Team
Time
Cost
Report available in PDF format – in total more than 100 slides – from May 2020
EUR 3,800
