Title: Trends in the International Cultured Dairy Market
1Trends in the International Cultured Dairy
Market
- Global Cultured Dairy Report 2004
- Shannon Neuens
- Danisco USA Inc.
2Key Trends in Dairy Products
- Nutrition
- Rise of functional food
- Organic food
- Diets and obesity
- Food Safety
- Demand for natural ingredients
- Concern over genetically modified food
- Convenience Single-Serve, Portable packs,
Vending - Ethnic Variety
- Globalization of dairy products
- ? Sophisication and Indulgence
Euromonitor, January 2004
3Nutritional Focus for Dairies
Nutritional Key Trends to follow
- Organic and natural products
- Vitamins and minerals fortification
- Reduced-fat and sugar content
- Prebiotics and Probiotics
Euromonitor, January 2004
4Development Focus for Dairies
Development Focus for Dairies
Whats Needed Today
Stagnitos New Products Magazine, Feb 2004
5The Low Carb Craze
- Low Carb Yields High Profits with no sign of
stopping. Drug Store News, January 2004
Low Carb Grows BEEF, Feb 04
Money saving tips for low carb dieters. CNN
News, May 8, 2004.
More Low Carb Launches Food Engineering
Ingredients, April 2004
- Restaurant chains look to lure dieters with low
carb rollouts. Nations Restaurant News, Jan 04
in a world beyond bread, low carb foods have
become big business! Time Magazine, May 3, 2004.
6The Low Carb Craze
- 11 of Americans or 24 million adults are on a
low carb diet. - "low net-carb" dieting approach looks like it
will be sustainable over time due to obesity,
diabetes and other weight-related health issues.
Dairy Foods, January 2004
- If executed correctly by the food industry, low
carb will become a permanent shift in the way
Americans eat, and will lead to real public
health benefits. Dairy Foods, January 2004
- Two thirds of adults 163 million are
consciously or subconsciously watching carbs as
part of a lifestyle change - to eat and live
healthier. Food Technology, April 2004.
Low Carb Craze
7Low Carb Cultured Dairy New Product
- Carb Control - Reduced Carb Cultured Dairy Snack
with 3g of carbohydrates having 80 less sugar
than regular lowfat yogurt. Dannon/USA - LeCarb YoCarb - a low carb cultured dairy yogurt
with half the calories of regular low-fat yogurt.
Southwest Foods/USA - Low Carb Sour Cream. Dean Foods/USA
GNPD 2004
8Pre-Probiotics on the Rise
- Ease your digestive woes naturally. Better
Nutrition, Sept 1999
Make friends with good bacteria Natural Health,
March 2002
- Immune System Enhancement Prepared Foods, July
03
Gut Check Health Issues of the gastrointestinal
system Nutrition Action, April 2004
9Top 10 Functional Food Components in the News
- 2003 2001 1999
- Omega-3 fatty acids 29 10 4
- Fiber in general 17 23 21
- Lycopene 9 2 5
- Vitamin C 7 18 15
- Beneficial Fatty Acids in General 5 1
11 - Plant Sterols in General 5
- Prebiotics/Probiotics 4 --- ---
- Plant estrogens in general 4 7
5 - Vitamin E 3 11 7
- Carotenoids 2 8 5
- Total Number of Stories 193 299 384
IFICFood For Thought V
10Prebiotic Probiotic Development Technology
Probiotics are living micro organisms, which
when ingested a demonstrated beneficial bacteria
supports intestinal health. A Good Bacteria for
immune boosting.
PROBIOTICS
INTEGRATED SYNBIOTICS
SYNBIOTICS
PREBIOTICS
Prebiotics are nondigestible carbohydrates
that pass through the small intestine undigested
and are fermented in the colon. Primarily serves
as an excellent source of fiber
Better Nutrition March 2002
11Digestive Health US
- Digestive disorders plague 70 million people
- Issues increase with age, sufferers expected to
grow by 90 by 2005 with greatest increase
in 50-64 age category - Irritable bowel syndrome Growth with Stress
- Occur more frequently with women
- Lactose Intolerance increasing 30-50 million
Americans - Estimated minorities effected 75 African and
Native Americans, 90 of Asian Americans - Cost 107B, 87B direct medical costs and 20B
indirect such as disability and mortality - Result in 200,000 absences from work NIH, 1999
12Pre-Probiotics on the Rise
- The yogurt/fermented milk sector is the key
motor of growth
- A growing importance in functional foods
Actimel/Germany
- Geared to reach the health conscious consumer
- Convenience and functionality
Euromonitor, January 2004 / GNPD / Food
Processing 2004
13Pre-Probiotics on the Rise
- More Cultured Dairy with Probiotics
- Sour cream, cottage cheese, kefir, and infant
formula. - Ice cream and cheese
- Other Probiotic Products
- Dietary supplements and energy bars.
Dairy Foods, August 2003/Euromonitor 2004
14Probiotic YOGURT/Fermented Milk New Product
- Probio GG Yogurt, a probiotic yogurt drink for
children. Maeil Dairy/South Korea - Yogurt Muesli Drink A probiotic, peach/apricot
flavored yogurt drink with muesli. Woolworths/S.
Africa - Plus Probiotic Yogurt Drink combines natural
cranberries with bio cultures for positive
balance for the digestive system. Ocean
Spray/U.K. - Actimel/Danactive dairy based probiotic
supplement beverages helps strengthen the bodys
natural defenses. Dannon/USA
GNPD 2004
15Pre-Probiotic OTHER New Product
- Gain IQ Growing Up Milk, a probiotic milk based
formula for babies. Abbott/Singapore - Burgen Rye Bread Bürgen Rye bread with natural
ingredients including Rye-plus, fiber and
prebiotics beneficial for digestive balance.
George Weston Foods/Australia - Whey Fresh Juice Drink peach and maracuja fruit
juice probiotic cultures and vitamins.
Nom/Austria - Nutrimax Nutrition Bar macro nutrient nutrition
bar with vitamins minerals and prebiotics for
digestive function.Nutrigen /South Africa - Chewies freeze-dried granules individually
wrapped flexible sachets - Malayn Pharmaceuticals/Malaysia
16Convenience Trends
- Convenience drives food buys. Drug Store News,
February 2004
Make convenience a part of your business plan.
Food Mgmt, Oct
03
Convenience is the King of Cool Japan, Inc., May
2003
- New portable, affordable Asian fast food concept
just may wow American diners. Nations
Restaurant News, August 2003.
17Convenience Trends
- Do-it-for-me meals reached 12.7 billion with
12 growth
- Quickservice
- drive-thrus and fast casual dining
- vending machines
- multi-packs
- individual servings for immediate consumption
Kids Minute Meal
New Zealand
USA
Organic Smoothie
Food Technology, February 2004/Food Management
Magz, October 2003
18Convenience Trends
- Handy food
- Drinking yogurt
- Cheese breadstick dips
- Veggies and Dips
- Tube packaging
- On a stick
19Convenience New Product
- Nouriche A Nonfat Yogurt Smoothie with
nourishment of a meal that can be eatin on the
go. General Mills/Yoplait USA
- Activia Probiotic drinking yogurt and cup
yogurt packaged for convenience. Danone/Mexico
- Phildelphia Mini Tubs snacks with soft white
cheese dip served in mini tubs, ideal for people
on the go. Kraft/U.K.
- Skyline Chili chili kit containing chili,
cheese and sour cream dip. Pre-packaged meal kit.
Skyline Foods/USA
GNPD 2004
20Nutritional Trends
- A Drink to Better Health. Food Product Design,
Jan. 2004
- Manufacturers begin to focus more on health, as
evidenced by the increase in health and wellness
claims. - Prepared Foods,
March 2004
Fitness Food Healthy opportunities for new
bally food and beverage products
New Product Magz, Oct 2003
- Belt-Tightening the Diet Aisle.
Food Processing, October 2003.
21Nutritional Trends
- Food as Medicine Functional Foods
- Calcium good for bones. and weight loss?!!!
- Probiotics/prebiotics
- Organic and Natural Ingredients
- Low fat - No trans fats
Euromonitor, January 2004
22 A growing demand for whole natural foods and
organics - a healthier and tastier option!
Nutritional Trends
- Table 6 Global Sales of Organic Foods 1998-2003
US million, current rsp
1998 1999 2000 2001 2002
2003 growth
Western Europe 6,655 8,175 9,550 11,375
13,380 14,640 120.0 US
5,000 6,000 8,000 10,000 12,500
13,450 169.0 Japan 1,500
2,000 2,500 3,000 3,600 3,825
155.0 Canada 500 690
825 990 1,190 1,290
158.0 Australia 90 110
150 200 265 285
215.0 Others 250 350
525 810 1,295 1,395
458.0 TOTAL 13,995 17,325 21,550
26,375 32,230 34,885 149.3
Euromonitor, January 2004
23Ethnic Trends
- International foods gaining shelf space. DSN
Retailing, November 2003
- Evolution of Ethnic Cuisine.
- QSR Magazine, May 2004
Spicy ethnic cuisines add zip and zing to
everyday fare New Product Magz, Oct 2003
Ethnic interests see better slotting. DSN
Retailing, January 2004
24Ethnic Trends
- Mainstream consumers are expected to purchase 75
of ethnic foods over the next decade. - Ethnic populations desire different combinations
of sweetness, flavor and aroma. - This trend is also prevalent in Asia-Pacific,
where a wide range of both western and
Asian-influenced flavors are available. - By 2020, 17 of the the U.S. will be Hispanic,
the largest minority in the U.S.
Dairy Foods 2004/Food Navigator 2004
25Cultured Dairy
Cultured Dairy Trends
- Yogurt
- Sour Cream
- Cottage Cheese
- Refrigerated Dips
26Global Growth of Dairy Products Euromonitor 2004
27Yogurt News Trends
- Fortified (Probiotic, Added Calcium, DHA)
- Smoothie (Fruit and Yogurt combos)
- Regional Targeting
- Age Specific and Gender Targeting
Dairy Foods, April 2004/Euromonitor 2004
28Global Sales of Yogurt by Subsector Value
Growth 1998 - 2003
Source Euromonitor 2003
29Yogurt New Product
- VitaSnella Frutta FrullataYogurt - low fat creamy
yogurt blend with liquidized melon fruit pulp,
sweeteners and fructose. It is claimed to contain
only 0.1 fat with no compromise on taste.
Danone/Italy
- Orchard Maid Probiotic Yogurt Drink fat free,
reduced calorie yogurt made in mango and passion
fruit flavors. Comes with a probiotic LifeTop
straw which helps deliver LABs to the digestive
system. Orchard Maid/U.K.
- Yomi Lala vanilla flavored yogurt drink. Ultra
Lala /Mexico
- Dannon Creamy Fruit Blends fruit based and
creamy flavored yogurt. Dannon /USA
30Sour Cream News Trends
- Despite the minimal new product innovations in
this category, per capita consumption is up 2.9
thanks to increased use of sour cream in
foodservice, primarily as a condiment
specifically on Hispanic-style foods. Dairy
Foods, April 2004
31Sour Cream New Product
- Noche Buena Lite Sour Cream a light version
Mexican style sour cream. New Zealand Milk
Co/Mexico
- HOF Sour Cream Sour cream with only 10 fat.
Hamburger Warenkontor/Germany
- Blue Bunny Lite Sour Cream contains 2/3 less
fat and 45 fewer calories. Wells/USA
32Cottage Cheese News Trends
- Cottage cheese in single-serve units and fruit
flavored varieties.
Sgl serve, fruit flavored Nicolait/Denmark
- Per capita consumption and sales are down.
Dairy Foods, April 2004
33Cottage Cheese New Product
- Flavored Cottage Cheese spring sliced with
butter. Spak/Hungary
- Vitality Cottage Cheese low fat all natural
cottage cheese with carrots, horseradish, chives,
cucumber and dill. Claims to be the lightest
cottage cheese in the market with only 0.5 fat.
Nordmilch Milram/Germany
- Hood Low Fat Cottage Cheese with fruit fruity
varieties available in a 1 milkfat small curd
variety.H.P.Hood/USA
34Dips - News Trends
- Snacking and entertaining are the two overall
hottest food trends for 2003. - Maybe eating veggies while snacking can be as fun
as eating chips and candy.
- DMI/Extraordinary Dairy, Summer 2003
35Refrigerated Dips New Product
- Deans Green Chili Dip made with real sour
cream designed to appeal to the hispanic
consumers. Deans/USA
- Country Goodness Garlic Dip roasted garlic dip
with herbs . New Zealand Dairy Foods/New Zealand
- Lunch n Go dip with breadsticks Designed for
having lunch on the go. Copperpot Pate/U.K.
- Litehouse Ranch Dip made with no MSG or
preservatives. Litehouse/Canada
- Naturally Fresh Ranch designed for kids,
colorful vitamin packed ranch dip for snacking.
Deans/USA
36Trends leading to Opportunities
- Opportunities
- Increasing consumer health consciousness
- Obesity concerns in children
- Boycotts of GMO
- Increase awareness of gastrointestinal health
- Single serve convenience
- Growth Area
- Low-fat/half fat, low calorie, probiotics
- Dairy drinks as alternative to soda
- Organic dairy products
- Fermented milks and yogurts with clinically
proven probiotics - Yogurt, drinkable yogurt, single serve cottage,
dairy based snack packs. - Euromonitor 2004
37Cultured Dairy Trends - Conclusion
- Capitalize on the key trends
- Nutrition Healthy Products
- Convenience Products
- Ethnic Products
- Products dealing with obesity concerns
- Products addressing food safety