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INCREASING CONSUMER CONFIDENCE AND DRIVING VALUE THROUGH CLEAN LABEL CLAIMS GLOBALLY
CLEAN LABEL CONFERENCE
(MARCH 28-29, 2017)
This is a redacted version. For the full presentation, please email [email protected]..
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In focus: What is clean label? INTRODUCTION
All Natural
No Artificial Additives
No Artificial Colours
No Artificial Preservatives
No Artificial Flavours
No Artificial Sweeteners
GMO Free
BPA Free
No Monosodium Glutamate
INTRODUCTION
GLOBAL OVERVIEW
A PACKAGED FOOD PERSPECTIVE
INDUSTRY IN FOCUS: SOFT DRINKS
TAKEAWAYS
© Euromonitor International
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Euromonitor International is a global market research company providing strategic intelligence on industries, companies, economies and consumers around the world.
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Helping clients make informed decisions
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800+ analysts in countries worldwide
Region and industry specialists
Euromonitor International EUROMONITOR INTERNATIONAL
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Movement towards sustainability and transparency on labels
INTRODUCTION
Transparency Sustainability
People
Planet Profit
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Year Commitment Brand GBO
2015 Remove all artificial flavours and colours All chocolate confectionery products
Nestle USA
2016 Removes artificial flavours and colours Becel Unilever
2016 Artificial preservatives and dyes removed; Replaced with naturally sources alternatives, such as turmeric, paprika and annatto
Macaroni & Cheese Kraft Heinz
2017 Phase out all artificial flavours All brands General Mills
2017 Stop using artificial ingredients by 2017 All brands Campbell Soup Company
2018 Remove all artificial flavours and colours All brands Kellogg
Manufacturers respond to consumer concerns INTRODUCTION
INTRODUCTION
GLOBAL OVERVIEW
A PACKAGED FOOD PERSPECTIVE
INDUSTRY IN FOCUS: SOFT DRINKS
TAKEAWAYS
© Euromonitor International
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Ethical labels GLOBAL OVERVIEW
PEOPLE
Clean Label
Origin
Religious Labels
Charity/Sponsorship
ENVIRONMENT / SUSTAINABILITY
Sustainable Trade and Farming
Responsible Forestry
Sustainable Palm Oil System
Recycling Label
Carbon Footprint/No Air Miles Food
ANIMAL WELFARE
Free Range
Marine Sustainability
Bird/Insects Friendly
Grass Fed/Pasture Raised
Vegetarian/Vegan
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Clean Label Sales, Regional Breakdown, 2015, USD$ Billion
Clean label surges to US$165 billion GLOBAL OVERVIEW
Chinese food scandals
US GMO labelling debate
UK artificial colours concern
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No artificial colours, flavours or preservatives
Zero added preservatives
100% pure & raw
100% natural ingredients – yes! Say no to…Added sugar, sweeteners, preservatives, water
Claims…as consumers see them GLOBAL OVERVIEW
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Free-from artificial colours and preservatives Source of calcium, essential proteins, vitamin D, fruit pure
Fruit and vegetable yoghurts bursting with goodness A great natural source of calcium, source of vitamin D, naturally sweetened with concentrated fruit juice
Natural colours derived from fruit and vegetables No artificial flavours or preservatives
Claims…as consumers see them GLOBAL OVERVIEW
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What does it mean in the context of clean label? GLOBAL OVERVIEW
CLEAN LABEL
Shorter ingredients lists
Recognisable ingredients
Absence of artificial / chemical
ingredients
Absence of ingredients
perceived as unnecessary
Sustainable ingredients, i.e.
ethical, environmental
Naturally sourced
ingredients
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The prelude to Euromonitor’s clean label findings… GLOBAL OVERVIEW
0% 10% 20% 30% 40% 50%
Is all natural
No artificial ingredients
Non-GMO
No artificial sweeteners
Is organic
No MSG (Monosodium Glutamate)
Only contains recognisable ingredients
Its packaging makes me trust it
Supported by a health organization
Is BPA free
Heat treated/otherwise sanitized
Supported by dietitian, nutritionist, and/or doctor
Other
None of the above
% of Respondents That Are Influenced by Clean Label
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Conservative outlooks still show positive growth GLOBAL OVERVIEW
Global Growth (2015-2020)
21% 6% 7%
0 20 40 60 80 100 120 140 160
2015
2016
2017
2018
2019
2020
USD Billion, Retail Value Sales
Ye
ar
Packaged Food, Soft and Hot Drinks Clean Label Forecast (2015-2020)
Hot Drinks
Soft Drinks
PackagedFood
INTRODUCTION
GLOBAL OVERVIEW
A PACKAGED FOOD PERSPECTIVE
INDUSTRY IN FOCUS: SOFT DRINKS
TAKEAWAYS
© Euromonitor International
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Packaged food leading the clean label charge
A PACKAGED FOOD PERSPECTIVE
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2015 2016 2017 2018 2019 2020
USD
Mill
ion
s, R
etai
l Val
ue
Sal
es
Clean Label Claims in Packaged Food (2015-2020)
No Artificial Preservatives
No Artificial Colours
No Artificial Flavours
All Natural
GMO Free
No Artificial Additives
No Monosodium Glutamate
No Artificial Sweeteners
BPA Free
© Euromonitor International
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No Artificial
Preservatives % of Total Colours % of Total
USD $1.1 billion
16% USD $1.1 billion
16%
Case study: Confectionery in Western Europe A PACKAGED FOOD PERSPECTIVE
Countlines in Western Europe
No Artificial
Preservatives % of Total Colours % of Total
USD $254 million
4% USD $616 million
9%
Boxed Assortments in Western Europe
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Re-invigorating mature categories: Dairy A PACKAGED FOOD PERSPECTIVE
0 2,000 4,000 6,000 8,000 10,000 12,000
No Artificial Preservatives
All Natural
No Artificial Colours
No Artificial Flavours
No Artificial Additives
GMO Free
No Artificial Sweeteners
BPA Free
No Monosodium Glutamate
USD Millions, Retail Value Sales, 2015
Dairy Clean Label: Claims by Value Sales, 2015
INTRODUCTION
GLOBAL OVERVIEW
A PACKAGED FOOD PERSPECTIVE
INDUSTRY IN FOCUS: SOFT DRINKS
TAKEAWAYS
© Euromonitor International
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What does the future hold for clean label soft drinks? INDUSTRY IN FOCUS: SOFT DRINKS
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2015 2016 2017 2018 2019 2020
USD
Mill
ion
s, R
etai
l Val
ue
Sale
s
Soft Drinks, Growth Outlook (2015-2020)
Asian Speciality Drinks
RTD Coffee
Sports and Energy Drinks
Concentrates
RTD Tea
Carbonates
Bottled Water
Juice
INTRODUCTION
GLOBAL OVERVIEW
A PACKAGED FOOD PERSPECTIVE
INDUSTRY IN FOCUS: SOFT DRINKS
TAKEAWAYS
© Euromonitor International
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Make clean label the foundation of product planning TAKEAWAYS
Clean sourcing Product
composition and taste
Packaging Branding Meet ethical
value and establishing
trust
Clean label impacts each stage of product strategy
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Avoid “green-washing”
If a product is eligible for a claim, make it in as simple a way as possible
Category remains key for consumers
Stay with, or preferably ahead of the pack
Embracing the principles of clean claims TAKEAWAYS
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Tracking position
• Staying on trend
Evolution
• From “no artificial” to “all natural” – increase transparency
Acceleration with digital
• Smart, extended labels or no labelling?
The future of clean label TAKEAWAYS
THANK YOU FOR LISTENING Alan Rownan
Ethical Labels Analyst
