Gf19-Outlook Report-Final LR2

GLOBAL INDUSTRY
OUTLOOK REPORT
2019
Contents
INTRODUCTION 6
EXECUTIVE SUMMARY 12
INDUSTRY GROWTH..........................................................................................................................................................................................14
MARKET DRIVERS AND TRENDS.................................................................................................................................................................18
MARKET CHALLENGES AND OPPORTUNITIES.....................................................................................................................................19
VOICE OF THE INDUSTRY............................................................................................................................................................................ 20
GLOBAL SOCIAL AND ECONOMIC OUTLOOK 24
GLOBAL DYNAMICS OF DEMOGRAPHICS - OVERVIEW.................................................................................................................25
GLOBAL DYNAMICS OF DEMOGRAPHICS – DEVELOPED VS EMERGING MARKETS........................................................26
GLOBAL DYNAMICS OF DEMOGRAPHICS – URBANISATION VS POPULATION GROWTH............................................. 27
GLOBAL ECONOMIC OUTLOOK - OVERVIEW......................................................................................................................................29
GLOBAL ECONOMIC OUTLOOK – GDP IN DEVELOPED VS EMERGING MARKETS........................................................... 30
GLOBAL INCOME AND CONSUMER EXPENDITURE...........................................................................................................................31
VOICE OF THE INDUSTRY............................................................................................................................................................................. 33
GLOBAL FOOD AND BEVERAGES SECTOR 35
GLOBAL F&B INDUSTRY OVERVIEW........................................................................................................................................................36
GLOBAL F&B TRENDS......................................................................................................................................................................................38
GLOBAL F&B DISTRIBUTION.........................................................................................................................................................................39
FUTURE OF RETAIL.......................................................................................................................................................................................... 40
GLOBAL PRIVATE LABEL FOOTPRINT.....................................................................................................................................................43
VOICE OF THE INDUSTRY............................................................................................................................................................................ 45
DECOMPOSITION OF F&B INDUSTRIES 47
BEVERAGES INDUSTRY 48
BEVERAGES INDUSTRY – AT A GLANCE.............................................................................................................................48
MARKET SIZE AND POTENTIAL...............................................................................................................................................49
MARKET TRENDS & DRIVERS.....................................................................................................................................................51
COMPETITIVE LANDSCAPE........................................................................................................................................................ 52
DISTRIBUTION LANDSCAPE......................................................................................................................................................53
CHALLENGES AND OPPORTUNITIES....................................................................................................................................55
VOICE OF THE INDUSTRY.......................................................................................................................................................... 58
3
DAIRY INDUSTRY 61
DAIRY INDUSTRY – AT A GLANCE..........................................................................................................................................62
MARKET TRENDS AND DRIVERS.............................................................................................................................................65
COMPETITIVE LANDSCAPE........................................................................................................................................................66
VOICE OF THE INDUSTRY......................................................................................................................................................... 70
MEAT & POULTRY INDUSTRY 73
MEAT & POULTRY INDUSTRY – AT A GLANCE.................................................................................................................. 74
MARKET SIZE AND POTENTIAL............................................................................................................................................... 75
MARKET TRENDS & DRIVERS.................................................................................................................................................... 77
COMPETITIVE LANDSCAPE........................................................................................................................................................79
DISTRIBUTION LANDSCAPE..................................................................................................................................................... 80
CHALLENGES AND OPPORTUNITIES.....................................................................................................................................81
VOICE OF THE INDUSTRY.......................................................................................................................................................... 82
SEAFOOD INDUSTRY 85
Seafood INDUSTRY – AT A GLANCE.......................................................................................................................................86
MARKET TRENDS & DRIVERS.................................................................................................................................................. 90
COMPETITIVE LANDSCAPE........................................................................................................................................................ 91
PULSES, GRAINS & CEREALS 97
PULSES, GRAINS & CEREALS - AT A GLANCE..................................................................................................................98
MARKET TRENDS & DRIVERS................................................................................................................................................... 101
COMPETITIVE LANDSCAPE...................................................................................................................................................... 102
DISTRIBUTION LANDSCAPE.................................................................................................................................................... 103
CHALLENGES AND OPPORTUNITIES..................................................................................................................................104
VOICE OF THE INDUSTRY........................................................................................................................................................ 106

FATS & OILS 109
FATS & OILS - AT A GLANCE.................................................................................................................................................... 110
MARKET SIZE AND POTENTIAL.............................................................................................................................................. 111
MARKET TRENDS & DRIVERS....................................................................................................................................................113
COMPETITIVE LANDSCAPE....................................................................................................................................................... 114
CHALLENGES AND OPPORTUNITIES................................................................................................................................... 116
COOKING INGREDIENTS INDUSTRY 121
COOKING INGREDIENTS INDUSTRY – AT A GLANCE..................................................................................................... 122
MARKET SIZE AND POTENTIAL................................................................................................................................................ 123
MARKET TRENDS & DRIVERS..................................................................................................................................................... 126
COMPETITIVE LANDSCAPE......................................................................................................................................................... 127
DISTRIBUTION LANDSCAPE....................................................................................................................................................... 128
CHALLENGES AND OPPORTUNITIES..................................................................................................................................... 129
CONFECTIONERY, SNACKS & READY-TO-EAT INDUSTRY 133
CONFECTIONERY, SNACKS & READY-TO-EAT INDUSTRY – AT A GLANCE......................................................... 134
MARKET SIZE AND POTENTIAL................................................................................................................................................ 135
MARKET TRENDS & DRIVERS..................................................................................................................................................... 138
COMPETITIVE LANDSCAPE......................................................................................................................................................... 139
DISTRIBUTION LANDSCAPE.......................................................................................................................................................140
CHALLENGES AND OPPORTUNITIES......................................................................................................................................141
APPENDICES 146
REGIONAL DEFINITIONS 149
5
Introduction
The Gulfood Global Industry Outlook Report is an in-depth market research study commissioned by the Dubai World
Trade Centre to the agencies Euromonitor International and GRS Research and Strategy.
Euromonitor International
Euromonitor International is an independent provider of strategic market research. We create data and analysis on
thousands of products and services around the world. As independent market researchers, we provide unbiased
historic trends and forecasts for every region, country, category, channel and consumer. Euromonitor’s research
includes qualitative and quantitative-based trade surveying and analysis to support market, competitor and customer
intelligence. Euromonitor was established in 1972 in London and has clients ranging from leading manufacturers and
investment banks to governments and universities.
Research Methodology
The research methodology of Passport, the key source
used for this Report, is based on a core set of research
techniques that include desk research (national
statistics, national and international trade press,
national and international trade associations, industry
study groups and other semi-official sources, company
financials and annual reports, broker reports an online
databases), store audits and trade survey with key
stakeholders across the value chain. Forecast data
provided represents many of the essential conclusions
reached about the current state of the market, how it
works and how it behaves under different macro and
micro conditions.
In addition to Passport, information and prospects set

out in this report have also been sourced from desk
research (such as company websites, trade press) and
trade opinion surveys conducted by Euromonitor.
INTRODUCTION
GRS Research and Strategy
The Gulfood Voice of The Industry survey was carried out by GRS Research & Strategy Middle East, an international
research company that operates primarily in the Exhibition Industry, with offices in Dubai (UAE), London (UK), and
Venice (Italy)
Research Methodology
- Data has been collected between Jan 6th and January 26th 2019 in
CAWI (Computer Assisted Web Interviewing) mode
- 1,634 senior F&B professionals based in 109 different countries across the world responded to a 10-minute survey,
sharing their experience, providing information about the current performance of the companies they represent,
sharing their personal views about the industry as a whole, as well as their expectations for the future
Region Activity
MENA APAC Europe Wholesalers, Traders & Distributors

Sub-Saharan Africa Americas Manufacturers Retailers
Hospitality & Foodservice Others
5 MACRO-CATEGORIES:
Wholesalers, Traders & Distributors Retailers
o Importer / Trader / Wholesaler o Retail / Supermarket / Grocery
o Distributor o Fishmongers
Manufacturers Others
Hospitality & Foodservice o Education / Training
o Bar / Café / Restaurant o Government / Association
o Bakery o Other
o Hotel o Caterer
7
Sector
Confectionery, Snacks & Ready-to-Eat Pulses, Grains & Cereals Beverages

Premium, Gourmet & Fine Foods Ingredients Meat & poultry
Dairy Seafood Fats & Oils
Annual Turnover
100+ Million USD 50-100 Million USD 21-50 Million USD 11-20 Million USD
1-10 Million USD < 1 Million USD
Regional Definitions
Europe
North
America
Latin
America
Asia Pacific
Australasia
Europe
Latin America
Middle East and North Africa
North America
Sub-Saharan Africa
INTRODUCTION
Asia Pacific
Middle East
and Africa
Sub-Saharan
Africa
Australasia
11
Executive
Summary
INTRODUCTION
Global population e xpected toe xceed
8.4 billion by 2030
Driven by the rise in population, demand for packaged food and beverages is set to see further growth over the
forecast period. Moreover, urbanised population growth is projected to grow at a CAGR of 1.7% between 2018
and 2023, outpacing total population growth of 1.0% over the same period. This will only drive more demand for
packaged food and beverages (F&B).
Additionally, with GDP growing at a faster rate than total population with a CAGR of 2.8% between 2018-2030,
overall consumer spending on F&B is set to rise in value from 8.5% to 8.9% of GDP by 2030, coinciding with
consumer trends such as more convenience-seeking lifestyles.
Demographic shifts such as urbanisation, migration, and the rise of the

middle class are reshaping consumer lifestyles and purchasing decisions
The unprecedented shift from rural to urban living is a major population change impacting global consumption
habits. A portrait of tomorrow’s consumer would look young, likely below the age of 30, urbanised and potentially
living in sub-Saharan Africa, Asia Pacific or Latin America. This demographic group is the fastest growing and largest
contributor to value sales growth of F&B with their increasing purchasing power and affinity towards Westernised,
convenient and easy-to-prepare food and beverages.
On the other hand, growing middle class consumers with rising income, specifically in emerging markets like China,
are creating their own ripple in consumption trends by encouraging premiumisation, i.e. driving demand for high-
quality packaged food that includes organic and locally produced products.
Exhibit 1 - Global Population and GDP (US$)
rld
WoPopulation rld
WoGDP
CAGR 1.0% CAGR 2.8%

2030
8.4bn 2030
115.3tn
2018
7.5bn 2018
82.7tn
Source: Euromonitor International analysis from Passport
Executive Summary 13
Industry Growth
Asia Pacific is set to become the world’s biggest consumer of F&B by 2030
Packaged food and beverage markets witnessed a shift in pattern, from developed regions to developing ones. With
rising disposable incomes and shifting consumer preferences in developing markets, industry players have turned their
attention to these markets where favourable factors are at play.
Although Asia Pacific offers a sizable consumer base as well as considerable consumption growth, the Middle East and
Africa region has also emerged with high levels of potential, with greater distribution of wealth and rapidly developing
infrastructure, consumers have greater access to a wider range of foods and beverages.
Exhibit 2 - Industry Growth per Region by Category, CAGR 2018-2023
Europe North America
........................................................................ 1.9% ........................................................................ 0.5%

........................................................................ 1.0% ........................................................................ 0.0%
........................................................................ 0.3% ........................................................................ 0.7%
........................................................................ 0.8% ........................................................................ -0.2%
........................................................................ 1.1% ........................................................................ -0.5%
........................................................................ 1 . 5% ........................................................................ 1.1%
........................................................................ 1.3% ........................................................................ 1.2%
........................................................................ 1.4% ........................................................................ 1.7%
Middle East & North Africa Latin America
........................................................................ 3.6% ........................................................................ 2.7%

........................................................................ 2.9% ........................................................................ 2.6%
........................................................................ 5.2% ........................................................................ 2.9%
........................................................................ 3.8% ........................................................................ 2.0%
........................................................................ 3.4% ........................................................................ 2.4%
........................................................................ 5.2% ........................................................................ 2.5%
........................................................................ 3.2% ........................................................................ 3.5%
........................................................................ 3.3% ........................................................................ 2.5%
Pulses, Grains
Beverages Dairy Poultry Fats & Oils Seafood
& Cereals
Cooking Ingredients Confectionery, Snacks and Ready-to-eat
The colour of the industries indicates growth rate Above global average Global average Below global average
EXECUTIVE SUMMARY
Sub-Saharan Africa
........................................................................ 4.7%
........................................................................ 3.3%
........................................................................ 2.5%
........................................................................ 5.1%
........................................................................ 3.4%
........................................................................ 3.0%
Europe accounts for a significant share of the
........................................................................ 4.2% world’s packaged food and beverages markets,
powered by high per capita consumption
markets in Germany, France and the UK.
........................................................................ 3.7%
Despite this established base in Europe and
unsaturated market in Middle East and Africa,
Asia Pacific still promises to be the go-to region
of the future for packaged F&B players. Countries
Asia Pacific
such as China and India play an eminent role in
terms of demand and consumption, with the rapid
urbanisation, evolving lifestyle and rising number
........................................................................ 2.7% of working women resulting in a greater demand
prospects and favourable growth projections. The
........................................................................ 4.4% expansion of discounters in Asia Pacific markets
too is allowing availability of packaged food in
rural areas, further adding to growth potential.
........................................................................ 2. 3%
As for Latin America, the packaged food market
is forecast to grow at a CAGR of 2.6% over
........................................................................ 3.7% 2018-2023, with Brazil predicted to add around
USD31 million to the total market by 2023, as
........................................................................ 8.3% the economy continues to recover, and the F&B
industry sees strong growth in dairy and Fats
& Oils, especially in alternative ingredients and
........................................................................ -1 . 2% single portion dairy drinks and dairy alternatives.
Snacking has penetrated all areas of packaged
........................................................................ 3.3% food, not only in traditional snacking categories
like confectionery and chips/crisps but also
........................................................................ 3.5% in dairy sub-categories, such as cheese and
yoghurt products. With confectionery growth
prospects diminished by the pushback on
sugar, snack varieties seem to be immune
Australasia to this trend, with confectionary snacks
and ready to eat being amongst the fastest
growing categories across all regions.
........................................................................ 2.7% While brick & mortar grocery retailers continue

to be the primary channel for packaged
food sales, there has been an immersion of
........................................................................ 1.9% e-commerce players penetrating the F&B
market. Online retailing is set to be the most
........................................................................ 0. 2% dynamic channel globally leading up to 2023,
driven by millennial and Gen Z consumers,
who are making fewer grocery trips in
........................................................................ 1.1% favour of online shopping platforms.
........................................................................ 2.3%
........................................................................ 2. 1%
........................................................................ 0.6%
........................................................................ 2.4%
15
Middle
North Sub-Saharan
Asia Pacific Australasia Europe Latin America East & North
America Africa
Africa
Total F&B
2011-2016 3.0% 1.0% 0.5% 0.1% 3.0% 0.4% 3.5%
growth
Total F&B
2016-2021 3.6% 2.0% 1.2% 2.6% 3.5% 0.9% 4.1%
growth
Fastest
Internet F/D/T IInternet
growing Internet Internet Internet Internet
retailing Specialists retailing
retail channel retailing (10%) retailing (7%) retailing (27%) retailing (9%)
(34%) (11%) (34.2%)
2017-2018
E thical Labels
Emerging markets have displayed considerable growth 2021. China, Brazil, Indonesia, on the other hand, all
for ethical label products and are projected to carry have forecast CAGRs above 5.0%, as depicted in the
this momentum forward into the forecast. Although Exhibit 2, further highlighting developing and emerging
established markets for ethical labels continue to grow, markets as potential markets of the future for ethically
said growth is less than dynamic – USA, Japan and the labelled product manufacturers.
UK all have forecast CAGRs below 5.0% leading up to
Exhibit 3 - Top Countries in Ethical Labels (US$ billion)
200 14.00%
180
12.00%
160
140 10.00%
120
8.00%
100
80 6.00%
60
4.00%
40
20 2.00%
0
0.00%
USA
Japan
China
Brazil
United Kingdom
Germany
Italy
France
Australia
Canada
South Korea
Indonesia
Sweden
Mexico
Netherlands
Spain
Finland
Belgium
Philippines
Israel
Poland
Denmark
Taiwan
Hong Kong, China
United Arab Emirates
Singapore
2018 CAGR 18 - 21

EXECUTIVE SUMMARY
Health and Wellness in Packaged Food by Region
Similarly to ethical labels, the majority of established 2023 period are forecasted for developing regions,
markets for health and wellness packaged food primarily the Middle East and North Africa (9.9%),
products are located in developed regions, i.e. North Sub-Saharan Africa (8.8%) and Latin America (7.4%).
America, Europe and parts of Asia Pacific. These These forecasts are in part driven by the global trends
markets, as illustrated in the map below, all have previously described, such as the expansion of the
sizable market sizes for this category in 2018, with Asia middle class who, with a higher income, are more likely
Pacific retaining the largest market value of $134.8bn. to spend on H&W products that are often priced higher
However, relatively higher growth rates for the 2018- than more conventional packaged food SKUs.
Exhibit 4 - Global F&B Consumption 2018, 2023 & CAGR 2018-2023
$141.9bn
3.4% $142.8bn
$120.3bn $186.6bn
4.4%
$115.1bn
6.7%
$134.8bn
North America $31.5bn
9.9%
Europe Asia Pacific
$19.6bn
$10.7bn Middle East & $12.0bn

North Africa
8.8% 4.3%
$57.2bn $7.0bn $9.7bn
7.4%
$40.1bn
Sub-Saharan Africa Australasia
Latin America
Key: Inner circle indicates the market size in RSP $US bn in 2018, outer circle indicates the same indicator in 2023
The distance between the inner and outer circles indicates the size of absolute growth which is included next to the
region’s name
The colour of the circles indicates the growth rate: Fast Moderate Slow
One country to invest in 2019?

Egypt, because of the growing disposable income of
its middle & upper middle classes
A n d y H o lm a n , CE O , E a t h os ( U n i t e d A r a b E mi r a t e s )
17
Market drivers and trends
Natural ingredients, sugar reduction and free-from labels remain the

F&B industry’s main priorities
Rising health awareness is not a new trend, but its adoption. The future will see a re-invention of health-
impact continues to become more pronounced as it based claims and marketing strategies, with emphasis
shifts today’s consumer preferences towards a high shifting from functionality and similar benefits to clean
nutritional value, and, as a result, driving consumption ingredients, clear packaging and “clean” labels.
of healthier variants such as reduced fat food products.
Other key consumer and industry trends, along with
The packaged food industry is witnessing a marked
their relative impact levels on a global scale, are
growth in free-from products and organic food
detailed in the heat map below.
Single serve, smaller

Increasing importance of
packaging reflecting smaller
Sustainability – Locally ethical positioning, such as
households, on-the-go
produced ingredients Halal, recycled, eco-friendly
consumption and health
or organic
concerns
Growing interest in plant-

based F&B substitutes in
Improved F&B food safety Increased label scrutiny
ingredients, flavourings,
and hygienic preparation regulations
sweeteners and protein
sources
Scaling up of leading F&B

companies through M&A
Flavour diversification, both Rising unit prices, raw
activity to offset challenge
Westernisation and Ethnic material and VAT
of online giants and current
consumer trends
High Impact Low Impact

EXECUTIVE SUMMARY
Market challenges and opportunities
Value-adding ingredients and features are driving change in global

consumption landscape, while convenience is dictating a new way for
consumers to shop for food and beverage
Changing consumer preference for food and beverage disrupted the shopping landscape despite, gradually
demand has created more opportunities for innovation usurping share and foot traffic from supermarkets,
within the industry with a focus on premiumisation and hypermarkets and other brick & mortar formats.
value-adding features and/or ingredients. Similarly to With cutting edge technologies changing how
rising health awareness, premiumisation is also not a E-com retailers interact with their customers – such
new trend, but it is increasingly being embraced by a as artificial intelligence algorithms aiding product
larger consumer base, fuelled by an expanding middle searches, virtual reality (VR) and augmented reality
class with higher disposable incomes and an increasing (AR) capabilities offering an immersive experience to
appetite for quality and unique flavours. For packaged consumers with the products – this trend is expected
F&B players, investing in innovating premium products to maintain its dynamic growth across global markets.
has led to improved profitability prospects, with
Other overarching challenges and opportunities can
consumers displaying an improved willingness to pay
be derived from some of the most impactful trends
higher prices for products that offer their perception
previously discussed. The chart below illustrates how
of value.
industries can pivot their perspectives on these market
Furthermore, consumers’ search for value-adding developments and view both the challenges and
elements not only influences what they shop for, but opportunities residing in each, several of which are
also how they shop for it. E-commerce has already further discussed by category, on a country level and
through numerous analytical lenses in the following
sections of the report.
Exhibit 6 - Opportunities and Challenges Matrix
10
Growth in internet
retailing Premiumisation
9
Rise of lactosefree and
8 Dairy alternatives
7
Growing popularity of
6 international cuisines
4
Probiotics
3 growing in
popularity
Saturation in
1 developed markets
0
0 1 2 3 4 5 6 7 8 9 10
Source: Euromonitor International analysis from Passport, trade interviews and desk research
Note: Trends listed above are a consolidation of challenges within the different industries covered in this report.
Level of opportunity and challenge is extrapolated by Euromonitor International based on its market understanding.
19
Voice of t he Industry
In your opinion, how much will the following factors impact

consumer’s purchasing decision in 2019?
Consumer attention
Consumer attention
Quality 45% 35%
Price 42% 33%
Brand 21% 38%
Packaging 19% 37%
Halal Certified 20% 25%
Sustainability 14% 29%
Organic Certified 15% 25%
Private label 13% 26%
Free-from 12% 26%
Premium/gourmet 9% 25%
Vegan 6% 16%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Extreme impact Significant impact
Quality is considered to be the most impactful variable in consumer’s purchasing decision, slightly more
than price, and significantly more than all other aspects. The only sectors for which price is considered to
have a more important role than quality are “Dairy”, “Fats & Oils”, and “Meat & Poultry”.
Interestingly, aspects such as Halal and Organic Certifications, Sustainability, and Free-from are not in the
top 3 consumer priorities, even though these are considered to be key trends right now. Core elements
of quality, price, brand, and packaging are still leading purchasing decisions, according to the survey
respondents.
Quality is more important than price, and brand is more relevant than packaging across all regions, except
for Sub-Saharan Africa.
EXECUTIVE SUMMARY
What are the 3 most important trends in the F&B industry?
Key Trends
Organic & Free-from 54.20%
Private Label 30.10%
Ethical living: Eco-friendly, Halal and Fair trade 28.30%
Honest advertising and labeling 24.80%
Plastic bans on packaging, retail and foodservice 24.60%
Premium & Gourmet 21.90%
Food waste prevention 21.40%
Farm to fork sustainability 17.00%
Elevated convenience, ‘grab-and-go’ 15.40%
Westernization & diversification of diet 10.40%
Fortified & Functional 10.10%
Animal welfare 4.10%
Other 1.60%
0% 10% 20% 30% 40% 50% 60%
More than 50% of senior F&B professionals who took part in this research consider “Organic & Free-from” as one of
the 3 most important trends in the industry. Regarding other key trends, besides for “Private Label” in second place,
3 of the top 5 have to do with “ethics”: the concepts of being eco-friendly, conscious of the effect of plastic on the
environment, concerned of fair trade, and practicing honest advertising are considered to be key factors today and for
the years to come.
This year, private label will see a race for the best marketing
strategies, looking to penetrate the largest market segments.
Phil Henwood, CEO, Limwood Gourmet (Singapore)
21
In your opinion, what’s the main challenge / threat for the food and
beverage industry?
Main challenge
Volatile commodity prices 20.20%
Higher regulatory control & production costs 13.90%
Growing competition from Private Label products 13.70%
Adapting to new retail and distribution models 10.90%

Demand for traceability and sourcing
9.90%
transparency
Negative publicity of processed foods and 7.60%
beverages
Increased demand for ethically-farmed 5.60%
ingredients
Slow product innovation cycles 4.80%
Technology/Automation integrations 4.50%
Growing sustainable production pressures 3.20%
The free-from movement 2.80%
Consolidations and vertical integrations 2.80%
0% 5% 10% 15% 20% 25%
There are significant differences depending on the regions in which respondents operate. Growing competition from
private label is considered as the #1 challenge by relatively more companies in MENA (17.3%) and Europe (14.2%),
whereas “higher regulatory control & production costs” was mentioned by 26.3% of respondents in the Americas. In
the Sub-Saharan Africa, adapting to new retail and distribution models is the main challenge for 16.7% of companies,
second only to volatile commodity prices (21.9%).
Which of the following will affect your product portfolio and strategy the
most in the next 12 months?
Wholesalers,
Product portfolio and strategy Hospitality &
Traders & Manufacturer Retailers
Vs Type of business Foodservice
Distributors
Direct Sales to customer 45.2% 37.6% 34.7% 46.6%
Private Label 24.6% 25.4% 17.6% 34.2%
Research & Development 12.9% 37.0% 27.8% 16.4%
Contract Manufacturing 19.8% 26.9% 12.0% 11.0%
Current Channels 20.2% 16.6% 14.8% 11.0%
Third-party ecommerce 14.8% 10.7% 16.2% 13.7%
Mergers & Acquisitions 11.5% 14.5% 13.0% 6.8%
Own ecommerce 12.5% 9.5% 17.6% 19.2%
Omni-channel retailing 6.9% 7.7% 3.2% 19.2%
Other 2.1% 3.0% 4.2% 5.5%
EXECUTIVE SUMMARY
In your opinion, what’s the main market opportunity?
Main opportunity
Rising demand for natural ingredients and

healthier recipes 30.70%
New marketing and sales strategies 13.20%

Consumer willingness to try
11.60%
new products and flavours
Smart packages offering variety, 10.80%
freshness and portability
New direct-to-consumer distribution models 6.70%
Growth of foodservice 5.80%
Increasing demand for premium products 5.20%
Shift to packaged foods in emerging markets 3.90%

Product diversification through M&A,
3.70%
private label and contract...
Cold chain expansion in emerging markets 3.10%
Growing food waste awareness 3.00%
Appeal to convenience impulse purchasing 2.30%
0% 10% 20% 30% 40%
Rising demand for natural ingredients and healthier recipes is by far the number one opportunity for the 1,500+ senior
F&B professionals who took part in this study (but much less in Sub-Saharan Africa then in other regions), followed by
new marketing and sales strategies (except in the Americas), a fresh consumer appetite for new products and flavours,
and smart packages offering variety, freshness and portability.
What is your top growth strategy for the next 3 years?
Top growth
strategy
Venture into new markets
Grow product portfolio
Reduce costs / Enter value-for-

money category
Explore new F&B categories
23
Global Social
Economic Outlook
GLOBAL SOCIAL & ECONOMIC OUTLOOK
Global Dynamics of Demogrpahics
Overview
The world population in 2018 stood at 7.6 billion, of development, similar trends are expected in
up from 7.1 billion in 2013. Year-on year growth is developing countries in Latin America and Middle
expected to slow slightly, but remain around 1% East and North Africa.
until 2030, leading to a world population of close to
Positive net migration to Europe, meanwhile, remains
8.0 billion in 2023 and 8.5 billion by 2030. In actual
insufficient compensation for the region’s low birth
terms, population growth in Asia Pacific will be the
rates. Europe is the only region expected to witness
most significant over this time period, even though
slightly negative population growth towards 2030.
the region already features the highest population
In the face of stagnant population numbers and
density. The region continues to account for over half
mature markets, increasing demand within food
of the world’s population. Sub-Saharan Africa on the
and beverages will mainly be achieved through
other hand is projected to remain the fastest growing
value-added products. With an aging population
region until 2030 in percentage terms. Its share of
and growing incidences of obesity, diabetes and
the world population will increase from 14% in 2018
cardiovascular diseases as well as increasingly busy
to 17% in 2030. In both regions, population growth
lifestyles, there are good opportunities for innovative
stems from high birth rates, as net migration remains
products in the health and wellness spectrum. Similar
negative. Rapid urbanisation, the development of
trends are expected in North America and Australasia,
better supply chains, increasingly busy lifestyles and
as societies there are facing similar problems in terms
a comparably low median age are therefore expected
of aging and health. The latter regions will, however,
to support demand for packaged food products over
see their populations grow between 2018 and 2030
unpackaged ones, driven by convenient, portable
due to sufficient net migration.
and single-serve products. Depending on the level
Exhibit 7 - Regional Population in 2018, 2030 & CAGR 2018-2030
392.8mm
0.6% 748mm
364.7mm 4.5bn
0.0%
747.5mm
0.7%
4.1bn
North America 677.3mm
1.5%
Europe Asia Pacific
568.8mm
1.4bn Middle East & 35.3mm

North Africa
2.5% 1.4%
708.5mm 1.0bn 29.8mm
0.8%
646.0mm
Latin America
Note: Inner circles indicate population in 2018, outer circles indicate population in 2030. The distance between inner
and outer circles indicates size of absolute growth.
Colour of circles indicates growth rate: Fast Moderate Slow Static
25
Developed Vs Emerging Markets
Emerging and developing markets, mainly found in Asia Pacific, Middle East
and North Africa, Latin America and Sub-Saharan Africa accounted for 86%
of the world population in 2018. This number is expected to increase slightly
to 87% in 2030, as population growth in these markets continues to outpace Major changes in emerging
that of developed countries. Developments in consumer expenditure on the and developing countries
other hand are set to be more dynamic thanks to China and India. China, between 2018 and 2030
the market with the highest consumer expenditure on food and beverages include urbanisation and a
globally, as well as within emerging and developing markets in 2018, is also continuous development
expected to see the strongest growth in actual terms. Consumer spending of cold chain systems
on food and beverages in the USA was the largest among developed and general supply chain
countries in 2018 and is set to hold this position until 2030. On a global networks. The most
scale, India is projected to overtake the USA, securing second place after important demographic
China in terms of food and beverage expenditure in 2029. This will have a change in developed
lasting effect on the consumer spending landscape in terms of developed markets is aging societies,
vs. emerging countries for food and beverages. The two Asian heavyweights as most countries are
will boost the impact of emerging countries from 61% of worldwide already urbanised and
spending on food and beverages in 2018 to 69% in 2030. Without the home to an established
impact of China and India, this shift would be significantly less noticeable, as middle class.
other emerging countries will only increase their share from 47% in 2018 to
51% in 2030.
Exhibit 8 - Impact of India and China on Developing Markets (1990, 2018, 2030)
Total Population Total Population (excl. China and India)
9,000,000 8,000,000
8,000,000 7,000,000
7,000,000
Total Population (.000)
Total Population (.000)
6,000,000
6,000,000
5,000,000
5,000,000
4,000,000
4,000,000
3,000,000
3,000,000
2,000,000
2,000,000
1,000,000 1,000,000
1990 2018 2030 1990 2018 2030
Emerging and Developing Countries

Developed Countries
Emerging and Developing
Countries
Developed Countries
Source:Euromonitor International
Urbanisation Vs Population Growth
By 2030, 60% of the total world population will be living in urban areas.
Growth in urbanisation is expected to surpass end of the conflict in most of Syria and Iraq is not
overall population growth in all regions, resulting in only expected to limit further emigration outside of
an increase in the number of people living in urban the region, but could also lead to large numbers of
environments from 55% in 2018 to 60% in 2030. returnees.
The fastest growth in terms of population as well Urban and total population growth in Asia Pacific is
as urban population is expected in Sub-Saharan expected to be only the third strongest despite high
Africa. The region is home to an increasing number birth rates. The region traditionally suffers from
of women of childbearing age and is witnessing negative net migration rates, especially in India and
comparatively high birth rates and fertility, China. Asia Pacific is still of great importance, as
easily outpacing a negative net migration rate. population growth in actual terms exceeds all other
Urban population growth is supported through regions combined. The transformation to urban
migrants from rural areas in search of better job environments in this part of the world is therefore
opportunities as well as reclassification/upgrading of significant importance and has a lasting impact
of former slums into urban areas. Nevertheless, on the global food and beverage market.
Sub-Saharan Africa will remain the least urbanised
The fourth strongest growth rates in terms of urban
region, with only 46% of the overall population
and total population are expected in Australasia.
living in cities in 2030.
The region’s urban population will increase to 91%
The second highest growth in population and in 2030, thereby retaining its top position in this
urban population, between 2018 and 2030, will be regard.
seen in Middle East and North Africa. The region is
In line with its stagnating population numbers,
growing due to high birth rates as well as positive
Europe is expected to witness the lowest growth
net migration between 2018 and 2030. Cities in the
in urban population of all regions. Birth rates as
gulf region will remain important destinations for
well as immigration rates are projected to remain
migrant workers, especially from Asia, while the
27
insufficient in maintain the region’s population at In Asia Pacific, on the other hand, urbanisation is
current levels over 2018 to 2030 and migration boosting demand for higher-priced convenience
towards cities is limited as most countries are categories, considered to represent a more modern,
already highly urbanised. premium and western lifestyle and a good way to
decrease food preparation time. In China, products
Urbanisation always offers a dense, concentrated
such as RTE breakfast cereals, chilled processed
market and opportunities for retail infrastructure
meat or baked goods are projected to see strong
and products tailored to different income bands.
growth due to their convenience, luxurious western
Most trends supported by urbanisation can be
image and short preparation times supporting
found across regions. Key developments however
the increasingly busy lifestyle of many Chinese
often differ and are usually connected to the
consumers.
country’s economic situation and disposable income
structure. The greatest impact of urbanisation in In highly urbanised societies in Europe, strong health
Sub-Saharan Africa, the region with the fastest and wellness concerns combined with demand for
urbanisation rate between 2018 and 2030, for convenience are drivers for growth. In Germany,
example, is expected to be on staples, as disposable for example, high demand is predicted for organic
incomes are relatively low. Meanwhile, consumers in snacking-related categories. Organic ingredients
Nigeria simply migrate from loose to packaged food usually do not impact the taste of the product but
products due to better availability in the urban retail are seen as a more healthy way to indulge.
environment. Packaged rice for example is expected
to see major gains, as consumers move away from
unpackaged or bulk-broken products, commonly
found in rural areas.
Exhibit 9 - Urban population growth vs total population growth across regions (2018-2030)
URBAN POPULATION GROWTH, 2017 - 2030
4.5%
4.0%
Sub SaharanAfrica 46%
3.5%
3.0%
2.5% Asia Pacific Middle East & North Africa
2.0%
55% 68%
1.5%
Australasia
85% 91%
1.0%
83% Latin America

0.5%
Europe 77% North America

0.0%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0%

Note: Bubble size represents the urban population over total population in 2030
Differently than all other regions, MENA senior F&B

professionals claimed their top growth strategy for the next 3
years is product portfolio growth (37.8%)
Voice of the Industry
Global Economic Outlook
OVERVIEW
Asia Pacific, Sub-Saharan Africa and Middle East & North Africa top GDP growth to 2030.
Global GDP totalled US$83.3 trillion in 2018, up from beverage market in Europe is mature and saturated,
US$70.0 trillion in 2013. World GDP is expected to and growth is therefore mainly found in value-added
reach US$99.0 trillion in 2023 and US$124.7 trillion in products appealing to an ever-increasing, health-
2030, as year-on-year growth rates remains stagnant conscious consumer segment. Products designed
at 3%-4% between 2018 and 2030. specifically for the elderly could therefore benefit,
as the median age in Europe is expected to increase
Asia Pacific is forecast to achieve the fastest GDP
further, reaching 43 in 2030, up from 41 in 2018.
growth in actual and percentage terms, driven by
the strong manufacturing and export-led economies Australasia remains the lowest GDP in actual terms
of China and India as well as overall growth in due to the small size of the region, representing only
private consumption. In such a positive economic Australia and New Zealand. Growth within food and
environment, the food and beverage industry is beverages is modest in both countries, due to the
expected to flourish as well. Increasingly busy lifestyles mature nature of both markets. Key drivers of growth
and growing disposable incomes are expected to are improvements in quality and convenience.
strengthen demand for convenient, portable and
Coming from a low base, GDP growth in Sub-
healthy packaged food items and beverages.
Saharan Africa will remain high between 2018 and
GDP growth in Europe is more muted and expected 2030, strongly supported by Ethiopia. The country
to remain the lowest among all regions in percentage is expected to see the highest GDP growth in the
terms. In actual terms however growth is significantly region between 2018 and 2030, as well as the second
higher than in most other regions due to the sheer highest increase in actual terms. As the government
size of markets like the UK or Germany. The food and has launched initiatives to eradicate food poverty,
Exhibit 10 - Regional GDP in 2018, 2030 & CAGR 2018-2030
26.5tn
1.7% 24.7tn
21.7tn 45.8tn
1.5%
20.7tn
4.4%
27.3tn
North America 5.8tn
2.8%
Europe Asia Pacific
4.2tn
2.6tn Middle East & 2.2tn

North Africa
4.0% 2.5%
7.8tn 1.6tn 1.6tn
2.7%
5.7tn
Latin America
Note: Inner circles indicate GDP in 2018, outer circles indicate GDP in 2030. The distance between the inner and outer
circles indicates the size of the absolute growth.
The colour of circle indicates growth rate: Fast Moderate Slow Static
29
demand for food and beverages is expected to benefit specifically of interest and often a key to growth in
significantly from this development. many categories.
Brazil is the main driver behind Latin America’s GDP The Middle East encompasses a set of countries at
growth. The largest economy in Latin America has widely different levels of economic development
started to recover from recession, with expected year- and dependencies, with oil revenues, agriculture
on year GDP growth rates of 2% between 2018 and and tourism all being important economic drivers. A
2030. In the face of economic improvements, a return similarly diverse picture in terms of growth drivers is
to strong demand for convenient options is therefore evident in the region’s food and beverage market. A
expected. shift from artisanal towards packaged products, for
example, is a major driver of packaged food growth
Positive GDP growth in North America, as currently
in the region’s largest economy Turkey. In the region’s
projected, is dependent on the US economy, which
second largest economy, Saudi Arabia such a shift
is significantly larger than the Canadian economy. As
is not visible and growth is mainly based on greater
both countries are mature and saturated food and
demand for convenient options in line with a general
beverage markets, innovation is seen as key to success.
trend towards healthy eating.
Convenient products following a healthy theme are
Global Economic Outlook
GDP IN DEVELOPED VS EMERGING MARKETS

Developing countries will be the major driver They are also seen as important drivers of growth in
of global GDP growth between 2018 and 2030, the food and beverage industry. Consumers in many
expected to increase their GDP from US$33.5 emerging markets have started to shift from artisanal
trillion in 2018 to US$56.0 trillion in 2030. Mature produce to packaged products as urbanisation and
and saturated developed markets, on the other expansion of modern retailing increases availability
hand, are projected to witness a significantly lower of these products. The growing number of women
increase from US$49.3 trillion in 2018 to US$59.2 entering the workforce as well as a general shift
trillion in 2030. Population growth, rapidly rising towards busy urban lifestyles are set to boost growth
consumption based on urbanisation and better of convenient and on-the-go options, designed to
infrastructure as well as expanding middle classes decrease food preparation times. Rising levels of
in emerging markets are just some of the major obesity combined with growing health awareness
reasons for this difference. is strengthening demand for products perceived as
healthier, one of the few categories with good growth
potential even in developed markets.
Exhibit 11 - Total GDP developed vs. emerging and developing countries (US$ trillion, 1990 – 2030)
70,000
60,000
GDP (US$ trillion)
50,000
40,000
30,000
20,000
10,000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Emerging and Developing Countries Developed Countries

Global Income and Consumer Expenditure
In 2018, total global disposable income accounted for 64% of total world GDP (US$52.9 trillion in 2018) while
consumer expenditure represents 55% of world GDP (US$46.2 trillion). Consumer expenditure on food and
beverages stood at US$7.2 trillion, accounting for 8.6% of world GDP and 15% of total consumer expenditure.
Disposable income, consumer expenditure as a whole and consumer expenditure on food and beverages specifically
all witnessed a 3% CAGR increase between 2013 and 2018, with similar expectations for the future. The modest share
of consumer expenditure in total GDP (as per Exhibit 12) in most emerging and developing markets is therefore
important as it reveals significant untapped potential.
Exhibit 12 - Total GDP, Disposable Income and Consumer Spending (World, 2018)
195
US$83.3tn US$52.9tn US$46.2tn US$7.2tn

7.6bn
consumers
World consumer
spending on food
World Disposable World Consumer and non-alcoholic
World GDP Income Spending beverages
Source: Euromonitor International
Rising disposable incomes in developing markets translate

directly into higher spending on the back of an expanding
middle class that is eager to consume – see Exhibit 7.
Food and beverages account for a large share of overall
consumer expenditure in developing and emerging
markets Higher disposable incomes, especially in urban
societies, are used to invest in food and beverage products
promising convenience and health.
31
Exhibit 13 - C
onsumer expenditure on F&B growth and middle-class household growth for
Top 20 F&B spending countries
3.50%
Middle Class Households Growth, 2018 - 2030
3.00%
Pakistan
2.50%
Nigeria
Philippines
2.00%
China
France
1.50% Canada
United Kingdom
1.00%
India
Italy Brazil
Source: Euromonitor International

0.50%
South Korea Indonesia
Spain
-1.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00%
0.00% USA
Russia
-0.50% Germany
-1.00% Japan
-1.50%
Consumer Expenditure on F&B, Growth, 2018 - 2030

Spending on food and beverages in comparison varied opportunities to the industry. Packaged food
to overall consumption is significantly higher sales in India and China for example are growing, as
in emerging and developing countries than in disposable incomes increase alongside an expansion
developed countries, which explains the high ratios of the middle class. Based on insights from the
in Sub-Saharan Africa, Asia Pacific, Middle East and China chamber of commerce this has opened
North Africa as well as Latin America compared up good opportunities for companies importing
to North America, Europe and Australasia. In Sub- products from within the cereals, pulses and grains
Saharan Africa, where a large consumer base has category as well as dairy, meat and poultry and
to spend the majority of its disposable income to seafood. Good opportunities for imports to India
ensure food security, the ratio is especially high. In on the other hand can be found within soft drinks,
regions like Asia Pacific, Latin America and Middle including concentrates, carbonates and juices as well
East and North Africa the ratio is lower, but still as confectionary, snacks and ready-to-eat products,
reflects good growth opportunities. In developed including dried fruits and nuts. China’s most
markets, mainly found in Europe, North America important exported food and beverage commodity
and Australasia, food security and limited access to on the other hand is tea, while rice is the most
products are rarely a problem anymore. An increase important one in India.
in disposable income is therefore mostly used to
Growth opportunities in most developed countries
increase spending on healthcare or communications.
with an already established middle class are limited
Expansion of the middle class usually boosts due to the saturated nature of such markets.
consumer spending on food and beverages and is Growing demand is therefore mainly found in
mainly found in emerging and developing countries. value-added products catering to increasing health
Countries with large populations and high growth concerns and an aging society.
in middle-class household formation therefore offer
Consumer Exp. Consumer Exp.

Country Country
CAGR Growth CAGR Growth
China 4.70% Nigeria 2.20%
USA 1.40% Italy 0.70%
India 6.40% United Kingdom 1.20%
Japan 0.50% Argentina 2.60%
Russia 1.60% Turkey 2.70%
Brazil 2.40% Spain 1.20%
Germany 0.70% Pakistan 4.30%
Indonesia 4.70% Philippines 6.40%
France 1.40% South Korea 1.80%
Mexico 2.70% Bangladesh 7.10%
Overall, how satisfied are you with the current performance

of your company?
Business seems to be positive for a significant percentage of senior F&B professionals who participated in this
research. From a geographical perspective, mature markets seem to be performing better than emerging ones,
as highlighted by the following chart:
Satisfaction - current performance Vs Region
Europe 6.4% 37.8% 55.8%
Americas 3.4% 45.8% 50.8%
APAC 10.1% 42.3% 47.6%
MENA 10.3% 43.6% 46.2%
Sub-Saharan Africa 7.3% 53.1% 39.6%
Negative Neutral Positive
In your opinion, the performance of your company in the future will be:
If the satisfaction about the current performance of the business is a clear indicator of a positive scenario, the
expectations of senior F&B professionals regarding the future of their own business brings even better news for
the industry.
Confidence - Over the next 12 months Vs Region
Americas 1.70% 20.70% 77.60%
Europe 3.60% 22.50% 74.00%
APAC 4.20% 29.40% 66.40%
Sub-Saharan Africa 5.30% 35.10% 59.60%
MENA 6.90% 36.60% 56.50%
Confidence - Over the next 3 years Vs Region
Europe 1.70%
4.10% 20.70%
7.70% 77.60%
88.20%
Americas 3.60%
1.70% 22.50%
13.80% 74.00%
84.50%
Sub-Saharan Africa 4.20%

3.20% 29.40%
14.90% 66.40%
81.90%
APAC 5.30%
3.60% 15.00% 35.10% 59.60%
81.40%
MENA 6.90%
4.50% 18.10% 36.60% 56.50%
77.40%
33
Main challenge / threat for the food and beverage industry by region:
Sub-
Main risk Vs Region APAC Europe MENA Saharan Americas
Africa
Volatile commodity prices 25.1% 21.6% 17.7% 21.9% 21.1%
Higher regulatory control & production costs 11.3% 10.8% 14.5% 15.6% 26.3%
Growing competition from Private Label products 7.8% 14.2% 17.3% 9.4% 1.8%
Adapting to new retail and distribution models 8.7% 9.7% 11.7% 16.7% 7.0%
Demand for traceability and sourcing transparency 10.4% 9.1% 10.5% 6.3% 7.0%
Negative publicity of processed foods and beverages 9.9% 4.0% 7.0% 12.5% 5.3%
Increased demand for ethically-farmed ingredients 8.1% 3.4% 5.0% 5.2% 7.0%
Slow product innovation cycles 4.2% 8.0% 4.6% 3.1% 5.3%
Technology/Automation integrations 6.0% 7.4% 3.8% 3.1% 0.0%
Growing sustainable production pressures 4.2% 6.3% 2.1% 0.0% 8.8%
The free-from movement 0.9% 3.4% 3.4% 2.1% 5.3%
Consolidations and vertical integrations 3.6% 2.3% 2.3% 4.2% 5.3%
Main market opportunity by region:

Sub-
Main risk Vs Region APAC Europe MENA Saharan Americas
Africa
Rising demand for natural ingredients and healthier
31.2% 34.9% 30.4% 20.4% 37.3%
recipes
New marketing and sales strategies 9.6% 16.0% 14.5% 13.3% 6.8%
Consumer willingness to try new products and flavours 14.0% 8.0% 11.8% 8.2% 10.2%
Smart packages offering variety, freshness and
9.9% 6.9% 12.3% 12.2% 5.1%
portability
New direct-to-consumer distribution models 7.9% 5.1% 6.3% 9.2% 6.8%
Growth of foodservice 4.7% 6.9% 6.6% 4.1% 1.7%
Increasing demand for premium products 6.4% 7.4% 3.9% 5.1% 10.2%
Shift to packaged foods in emerging markets 4.4% 2.9% 3.3% 9.2% 5.1%
Product diversification through M&A, private label and
3.8% 2.9% 3.6% 5.1% 5.1%
contract manufacturing
Cold chain expansion in emerging markets 3.2% 2.3% 3.0% 4.1% 3.4%
Growing food waste awareness 2.9% 3.4% 2.8% 2.0% 6.8%
Appeal to convenience impulse purchasing 2.0% 3.4% 1.7% 7.1% 1.7%
Top growth strategy for the next 3 years by region:

Top growth strategy Vs Region
Global Food and
Beverages Sector
Global F B Industry
Overview
Overall retail value of food and beverage sales The most important supporter of growth within
across the world in 2018 reached US$2,43 trillion, up food and beverages in Sub-Saharan Africa is
from US$2.27 trillion in 2013. Based on an expected Nigeria. The country’s food industry is benefiting
forecast CAGR of 2.1%, the industry is projected to from strong population growth and an economic
reach US$2.73 trillion in 2023. While beverages alone recovery process. Good growth in the coming
are projected to see a slightly better performance five years will also be seen in the Middle East
with a CAGR of 2.2% between 2018 and 2023, they and North Africa. In more mature markets, like
also account for a significantly lower portion of the Turkey or the Gulf countries premiumization, high
market. Value sales of soft drinks and hot drinks disposable incomes and a growing number of
alone stand at US$0.69 trillion in 2018. They are young urbanized professionals interested in global
expected to reach US$0.77 trillion in 2018. food trends and brands are expected to shape
the food and beverage market. In other countries
Coming from a low per capita base, Sub-Saharan
such as Iran, Morocco or Egypt demand is driven
Africa will be the most rapidly expanding food and
by a further shift towards packaged products and
beverage market between 2018 and 2023, forecasted
the spread of modern retailing. The expansion of
to witness a CAGR of 3.84%. In actual terms however,
supermarkets/hypermarkets is making a broader
Asia Pacific is set to be significantly more important.
variety of packaged food and beverages available
With a CAGR of 3.47% in the same timeframe, the
to consumers. An additional boost is the strong
region will see value sales increase by US$143 billion,
population growth expected throughout the region.
compared to merely US$17 billion in Sub-Saharan
Africa. In both regions, sales are benefiting from The slowest growth of food and beverage sales
burgeoning populations, rapid urbanization and over the coming five years is expected in North
better access to packaged food and beverage items America. Canada and the USA are saturated and
on the back of an on-going modern trade expansion. mature markets with an increasing urban population
The star performer in Asia Pacific is thereby and a growing number of single households. Both
India. The country is expected to see the highest is benefiting foodservice sales rather than retail
percentage growth between 2018 and 2023, as well sales. Growth opportunities are therefore mainly
as the second highest increase in actuals. Economic found within innovative health and wellness as
expansion, rising incomes and a rapidly expanding well as speciality products, as increasing rates of
middle class has led to increased spending in the obesity, diabetes and cardiovascular diseases force
last five years and has also supported a shift from many to reconsider unhealthy eating habits. Similar
unpackaged to packaged foods. developments can be seen in Europe, where health
and wellness is often seen as a key driver. The
Similar developments are also expected to boost
region is additionally benefiting from growth in less
growth in the two most important markets in Latin
mature markets in Easter Europe, such as Russia,
America: Brazil and Mexico. Brazil is additionally
Poland and the Ukraine.
benefiting from an economic recovery process after the
country’s worst recession took place in 2014.
GLOBAL FOOD AND BEVERAGE SECTOR
Exhibit 14 - Total F&B Value Sales in 2018, 2023 & CAGR 2018-2023 in US$ billion
457.8bn
0.41% 709.7bn
448.5bn 908.7bn
0.97%
676.4bn
3.47%
766.2bn
North America 171.2bn

3.33%
Europe Asia Pacific
145.4bn
99.0bn Middle East & 45.6

North Africa
3.84% 1.45%
306.7bn 82.9bn 42.4bn
2.43%
272.1bn
Latin America
Key: Inner circles indicate the F&B market size in 2018, outer circles indicate market size in 2023
The distance between the inner and outer circles indicates the size of the absolute growth.
The colour of the circles indicates the growth rate: Fast Moderate Slow Static
How do you expect the turnover of your company to change during the next
12 months?
2019 is expected to be a year of growth, at least for 60% of senior F&B professionals that have taken part in this
global research. Less than 12% forecast a decrease of more than 5% in business volume.
Turnover next year
Boom: +51% or above 4.9%
Strong growth: from +26% to +50% 11.9%
Growth: from +6% to +25% 43.4%
Stable: from -5% to +5% 28.8%
Drop: from -25% to -6% 5.0%
Big drop: from -50% to -26% 3.5%
Crisis: -51% or below 2.9%

0% 20% 40% 60%
37
Global F B Trends
Health and Wellness as the key to innovation around the globe

Faced with increasing rates of obesity, diabetes and cardiovascular diseases consumers all over the world are trying to
adapt healthier eating habits. Especially in Europe, North America and Australasia consumers are thereby trying to eat
in a more natural way. This has boosted demand for organic, free from products and local produce as well as products
with low amounts of additives and preservatives. This trend is thereby accompanied with a shift towards smaller
players and private label brands, as many consumers show distrust in established food companies. Opportunities
therefore often lie in an acquisition of smaller brands through known internationals. One such example is Enjoy Life
Foods, which was acquired by Mondelez in 2015. The snacking company is a market leading brand within the free from
segment, offering a broad portfolio of gluten-free and allergy friendly snacks.
The demand for healthier options in regions like Asia Pacific, Middle East and North Africa as well as Sub-Saharan
Africa on the other hand is benefiting fortified/functional as well as better for you foods, a key area for international
brands. Especially probiotic yoghurt, fortified milk formula and reduced fat dairy products remain successful in
these regions. Micronutrient fortification as a way to fight malnutrition could thereby become an important field of
innovation in these regions. A pioneer in this space is Nestlé. In India, the company added micronutrients to some of
its mass consumption products, introducing iron-fortified Maggi Masala Noodles, fortified milk under Nestlé a+ and
minerals as well as vitamin fortified ready-to-drink malt beverage Milo.
Ethical living is an evolving consumer stance

In developed markets in Europe, North America and Australasia on the other hand changing ethics and environmental
topics are expected to become increasingly important. Consumers started to evaluate brands’ ethical credentials,
sourcing and sustainability policies with increasingly effective, vocal, pressure group influence. Key components of
an ethical standpoint are environmental consciousness throughout the production process in regard to human and
animal welfare, resource usage and sustainability and transportation impact through to processing, production inputs
and outputs and recyclability. One example of an innovative product development due to ethical pressure through
consumers are the Respeggt-Free range eggs in Germany. The product is based on a new technique, which allows
hatcheries to identify the sex of chickens before they hatch, thereby avoiding the mass killing of male chicks. The
innovation comes after news about shredded and gassed male chicks had shocked consumers.
Global Flavour evolution

Western food trends and eating habits have entered markets in Asia Pacific, the Middle East and North Africa as
well as Sub-Saharan Africa and Latin America with great success, while flavours from said regions are increasingly
incorporated into cuisines in North America, Europe and Australasia. Western eating habits usually offer a more
convenient way of eating, perfect for increasingly busy lifestyles. Spices like turmeric, or ingredients like hummus and
olive oil on the other hand are seen as exciting, delicious and naturally healthy and nutritious additions to ones’ diet and
therefore a perfect fit with current developments in most developed markets. Consumers also appreciate the variation
and new flavours of other cuisines. Incorporating tastes, ingredients, products and flavours from all around the world is
therefore an important trend throughout the globe.
Technology
Technology
Internet of Things 6.00% 15.90% 29.40% 31.30% 17.40%
Digital Infrastructure 5.70% 15.80% 33.10% 33.20% 12.30%
Human Augmentation 10.70% 28.60% 32.20% 22.00% 6.50%
Advanced Robotics 14.00% 29.10% 27.30% 22.50% 7.00%
Blockchain 14.90% 28.60% 31.30% 18.60% 6.60%
Artificial Intelligence 17.30% 29.60% 26.60% 20.00% 6.50%
3D Printing 17.00% 31.00% 27.60% 16.80% 7.70%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
No impact at all Limited impact Noticeable impact Significant impact Extreme impact
According to the 1,600+ senior F&B professionals who have participated to this research, Internet of Things
and Digital Infrastructure are the 2 technologies that will impact the industry the most in 2019. There is a global
consensus on this, with barely any difference across the regions, from America to Asia.
Global F B Distri bution
Super/hypermarkets now control 51% of total households. They also replace traditional grocers,
packaged food value sales, down from 54% in 2013. In functioning as small corner stores or neighbourhood
beverages, the channel represents 39% of soft drink stores in developing countries. Convenient stores
volume sales in 2018, down from 41% in 2013 and 44% and forecourt retailers usually offer long opening
of hot drink volume sales, down from 47%. This drop hours, convenient locations and a modern shopping
reflects a shift in many countries towards internet environment with air condition, Wi-Fi and dine-in
retailing, convenience stores and discounters. foodservice as well as a relatively large product
assortment.
While many retail trends appear on a global scale,
there are still significant differences in the overall Many established supermarket/hypermarket chains
landscape. In Sub-Saharan Africa, Middle East and have therefore branched out into this segment,

North Africa and Latin America traditional grocers are while also introducing convenient online shopping
the most important channel for packaged food value options. Digital expansion and an increasing network
sales. In beverage volume sales however they dominate of convenience stores for example is the main focus
Sub-Saharan Africa, Asia Pacific and within soft drinks point of Walmart, the largest grocery retailer in Latin
Latin America. In all other regions, supermarkets/ America and North America as well as Woolworths, the
hypermarkets are already established as the leading leader in Australasia. Similar developments can be seen
retail channel within foods and beverages. in Middle East and North Africa, where the convenience
stores Carrefour Market and Carrefour Express are
The fastest growing on a global scale was internet
strengthening the position of Carrefour as the leading
retailing, benefiting from its ever-increasing
grocery retailer even further. Seven & i holdings co
convenience and security. The channel was boosted by
ltd on the other hand, leading grocery sales in Asia
the spread of smartphones and tablets as well as an
Pacific, is already a key driver of the convenience store
increasing number of shopping apps in combination
expansion globally, due to the growing success of its’
with improved payment methods. Digital marketing as
7-Eleven brand.
well as sophisticated shopping options are therefore a
focus point for many retailers all over the world. Convenience stores and internet retailing are also the
fastest growing channels in Europe. This development
Convenience stores and forecourt retailers were
however is not supported by the leading player
another channel witnessing growing importance in
within modern grocery retailing; Lidl. The discounter
many countries, mainly within the beverage categories.
continued its expansion of stores, while maintaining
Especially convenience stores cater to the demand
a low online presence and is not expected establish a
of growing urbanized societies and single-person
presence within the convenience store business.
39
Future of Retail
Grocery remains the lynchpin of retail where the consumer shopping journey has been evolving over the recent
years, driven by technological advancements and shifts in purchasing priorities.
Exhibit 15 - The New Purchase Journey
Pre-
Purchase
Purchase Purchase
Post-
Purchase
Source: Euromonitor International – Megatrend Analysis
While consumer values and priorities are shifting, value given to products has come to equate more than just a
price point. Value now includes elements of price, convenience, quality, sustainability and exclusivity. Taking these
elements into consideration has become key in helping brands and retailers connects with their customers and
keeping their loyalty.
Omnichannel engagement is key to

connect each phase Direct sales to
of the purchasing journey consumers (D2C) will affect
The most successful companies engage their customers — the product portfolio and
and promote the brand — along all points of the shopper
journey. Increasingly, brand engagement must occur online. strategies of all types of
With a steady rise in global smartphone ownership, engaging
business, from manufacturers
consumers where they are and where they prefer to operate
means engaging them through digital channels as well as an to retailers.
ins-store experience.
Exhibit 16 - Engagement Across the Shopper Journey
Pre-purchase Purchase Post-purchase

• Brand promotion • In-store experience •L
oyalty and rewards
programmes
•E
ngagement on social •E
ngagement at the point-
media, digital and mobile of-sale • Exclusive offers
channels
•M
odern payment • Personalisation
methods via mobile apps
•C
ustomer satisfaction
and social media
surveys
Source: Euromonitor International – Megatrend Analysis

whole purchase transaction faster.
Technological innovations
are addressing the need for Check-out free technologies are also emerging in the
USA and Europe with Amazon Go and Øline from
convenience Everseen respectively. These technologies are built
Within grocery retailing specifically, convenience is using Artificial Intelligence (AI), computer vision,
a trend that has become increasingly important for biometrics and a network of interconnected smart
consumers. As convenience becomes a necessity devices. All consumers need to do is to register and
rather than a luxury, it has also become a key driver link their payment details to the apps.
for creating opportunities for many players in terms
In the UAE specifically, Carrefour has introduced Scan
of creating products that speak to the consumers’
& Go where consumers only need scan their Carrefour

busy lifestyles and tech savviness.
Club loyalty cards, and then use a device to scan and
Before making purchases, consumers are looking for bag products while they shop. The final process is
ways to search for the products they need, compare to visit a dedicated Scan & Go checkout counters to
prices and ensure availability in nearby local stores. process payments quickly.
An example of a player that has made use of such a
need is Pointy, an app first launched in Ireland, which Discounters undercut the
allows consumers to quickly and easily search for the competition
availability of products in their local store. This app
Searching for value has become an underlying
links directly to retailers’ stock through their barcode
driver of making purchase decisions for consumers
system and allows local retailers to “be found online,
especially after the global economic crisis of 2007-
sell offline”.
2008. Despite economic recovery, growth has been
After consumers choose the products they want slow and consumer confidence has not improved too
to purchase, checkout is often seen as a loss of pre-crisis level in both developed and developing
time, regardless of channel. Long tedious payment markets. Within grocery retailing, searching for value
processes, whether in-store or online, cause friction ultimately leads to looking for lower priced items,
and spoil the customer experience. Within grocery which has led to the growth of discounters. The
retailing, where in-store visits are still the main mode discounter channel in grocery retailing will the fastest
of purchase, long lines and checkout times are a growing channel despite being heavily concentrated
common complaint heard by retailers. Grocery retail in a few countries. While discounters account for
chains have therefore focused efforts to reduce this 5% of global grocery retailing in 2018, their share is
friction. For example, in China, Shanghai Owitho expected to grow to 5.7% in 2023.
Internet Technology Co Ltd launched an unmanned
Globally, Aldi and Lidl are 2 of the largest discounters
convenience store format under the brand Xing Bian
that make use of private labels to undercut prices
Li. This format allows self-checkout and makes the
without compromising on quality.
Growing
competitionfrom private label
products has been ranked
the no.1 challenge for retailers
today (19%)
41
Global Private Label Footprint
As modern retailing is gaining importance throughout the world, so is private label. Major trends and developments
however are still determined by Europe, North America and Australasia, where private label as well as modern
retailing is already well established. Private label often mimics the overall food and beverage market, but there are
still some significant differences.
Exhibit 17 – Global Penetration of Private Label by Category – 2018
100%

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Meat and Seafood Beverages Dairy Ingredients Cereals, Edible Oils Confectionery
Poultry Pulses and Snacks &
Grains Ready - to Eat
Private Label Non-Private Label Source: Euromonitor International analysis from Passport
Confectionery, Snacks & Ready-to-Eat products for products are witnessing the highest demand within
example is the most important category within overall dairy. Major differences can be found in cheeses,
packaged food, accounting for 31% of sales, but only where private label brands are showing a very strong
the second most important within private label alone, performance, and Yoghurt and Sour Milk Products,
where the segment is projected to generate merely where consumers are still hesitant to shift away from
20% of the overall sales value. In developed markets branded products.
consumers are still hesitant to replace branded
Nevertheless, private label is well established in the
snacks, due to quality concerns, while the importance
dairy category and growth opportunities therefore
of traditional retailers within this category is keeping
limited. Even more mature is the meat and poultry
sales high in emerging markets, due to the impulse
market, especially in Europe. Good growth however
character of many products.
is expected within the health and wellness segment.
Dairy on the other hand is performing very similar to By offering organic, natural alternatives or more
the overall packaged food level, supported by high ethical products, retailers often manage to gradually
private label sales in Europe and North America. shift consumer attitudes from loyalty to branded
The category remains the most important segment food products to loyalty to retailers’ brands. Many
of private label in 2018, accounting for 28% of food discounters, supermarkets/hypermarkets and even
and beverages private label value sales on a global drugstores have therefore introduced their own
level. Within foods alone, the category accounts for health and wellness private label portfolios. Opposite
32%, a number very similar to the 29% value share in to the branded product, many of these carry an
overall packaged foods. On both levels drinking milk additional organic certificate. They often cover free
43
from products, especially dairy alternatives as well organic options of various packaged food items
as naturally healthy products such as honey or cereal and is appreciated by the growing number of health
bars and an increasing number of meat alternatives. conscious consumers.
Consumers interested in such products are already
Private Label in the GCC is also expected to highly
health-conscious and thereby easily tempted to
benefit from the introduction of the discounter
choose the organic and often cheaper private label
concept in the region. Dukan, the first and sole
alternative.
discounter in Saudi Arabia was introduced in 2014
As a whole, private label accounts for 10% of global and has since gained strong market share. In 2018,
food and beverage sales in 2018, with a significantly Landmark group opened a discounter called Viva
lower ratio within beverages (5%) in comparison to in the UAE, which is expected to expand its store
packaged foods (12%). Major differences can also count rapidly over the coming years. The discounter
be found between regions, as the retail landscape concept appears during a time that consumers
usually dictates the level of private label penetration. throughout the GCC re-think their spending habits, as
Modern trade is a must for private label and sales they face austerity measures, economic restructuring
are therefore naturally higher in developed markets processes and the implementation of additional taxes
with a strong presence of chained supermarkets/ and costs. This will give discounters and private label
hypermarkets, convenience stores and of course portfolios an opportunity to prove their superiority
discounters. The highest private label sales can be over branded products in terms of value and could lay
found in Europe, where they account for 22% of the foundation for a long-term private label boom in
overall food and beverage sales in 2018. Europe is the region.
followed closely by Australasia with 16% and North
America with 14%. Asia Pacific, Middle East and Developed Markets Focus
North Africa, Latin America and Sub-Saharan Africa A very different picture and level of private label
all register significantly lower shares of private label acceptance can be found in Europe, explaining the
sales, with numbers between 2-3%. success of the concept there. Discounters like Lidl and
Especially among the emerging middle class in Aldi have created a business model based on private
developing markets, private label still has an image label, which has shaped the view and acceptance of
of being a cheap and low quality alternative to the whole industry in the region. Most discounters
established international brands. Furthermore, offer a diverse range of economy, midrange and
setting up a viable private label business requires an premium products for very competitive prices. This
extensive network of stores, which is not feasible in has raised the bar on consumers’ quality versus value
many emerging markets, as traditional grocers remain for money perceptions. Furthermore, many premium
dominant. products, such as organic ranges thereby became
affordable to a broader consumer segment.
Middle East Focus Similar developments can be seen in Australasia and
The continuous growth of modern retailing is even North America, where private label is already
strengthening sales of private label in many countries established in leading supermarket/hypermarket
in the Middle East and North Africa. Especially the chains. Both regions are expected to see an additional
expansion of Turkey’s discounter Bim has had a boost through the expansion of discounters like Aldi
positive impact on the category. The largest market and Lidl in the coming years.
for Private Label in the region is Turkey, where Bim
is leading grocery retailing and the strongest growth
for private label was seen in Morocco, where the
category witnessed a CAGR of 59% between 2013
and 2018 on the back of the discounter’s massive
expansion in terms of outlets. Private Label sales
in the GCC remained limited over the years, even
though the strong network of modern retailing would
have supplied a perfect base for strong penetration.
Recent developments however suggest a rapid
change in the coming years.
Hypermarkets in the GCC started to invest into private

label premium lines to address growing demand
for more budget-friendly healthy foods. Carrefour
Bio for example received a strong boost through
the development of a “Healthy Kitchen section” in
several of its’ UAE outlets. The brand offers affordable
Manufacturers are the category with highest expectations: two thirds forecast a growth in their revenues by
more than 5% in the next 12 months, with only 5% who expect, on the other hand, a drop.
Turnover next year Vs Category

Turnover next year Vs Category
Manufacturer
Wholesalers, Traders & Distributors

Retailers
Hospitality & Foodservice
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Crisis Big drop Drop Stable Growth Strong growth Boom
Professionals in the Ingredients business are the most positive for the future ahead:
Turnover next
Turnover year
next year Vs Activity
Vs Activity
Ingredients
Meat & poultry
Pulses, Grains & Cereals
Premium, Gourmet & Fine Foods
Confectionery, Snacks & Ready-to-Eat
Beverages
Seafood
Dairy
Fats & Oils
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Interestingly, the analysis by turnover show a more polarized outcome: companies with higher turnover
expect less relevant variations in the total volume of business, with the lowest share of respondents who
expect a drop in revenues (7.4%), and the highest of stable (34.2%) and growth up to 25% (51.1%). The smaller
the business, the highest the share of companies who expect a contraction in their revenues, as well as - on
the opposite - an increase of more than 25%.
Turnover next year next

Turnover Vs Turnover
year Vs Turnover
50+ Million USD
11-50 Million USD
1-10 Million USD
< 1 Million USD
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
45
How do you expect your company will perform across the following
channels in 2019 (vs 2018)?
Channels performance - Manufacturer

Channels performance - Manufacturer
Supermarkets & Hypermarkets
Internet, E-commerce
Food Service & HORECA
Convenience Stores &

Forecourt Retailers
Traditional Grocery Retailers
Discounters
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Crisis: -51% or below Big drop: from -50% to -26% Drop: from -25% to -6%
Stable: from -5% to +5% Growth: from +6% to +25% Strong growth: from +26% to +50%
Boom: +51% or above
Channels performance
Channels performance - Wholesalers,
- Wholesalers, Traders
Traders & Distributors
& Distributors
Food Service & HORECA
Supermarkets & Hypermarkets
Internet, E-commerce
Convenience Stores &

Forecourt Retailers
Traditional Grocery Retailers
Discounters
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Crisis: -51% or below Big drop: from -50% to -26% Drop: from -25% to -6%
Stable: from -5% to +5% Growth: from +6% to +25% Strong growth: from +26% to +50%
Boom: +51% or above

Sector
verage
Be
Beverages Industry - At a Glance
Middle
North Sub-Saharan
America Africa
Africa
Consumer
spending on
beverages 7% 11% 10% 13% 9% 4% 36%
as % of
total F&B
Uzbekistan Hungary Venezuela Libya Cameroon
Key Growth Pakistan Belarus Paraguay Qatar Senegal
New Zealand Canada
Markets Vietnam Sweden Argentina Mauritania Uganda
Australia USA
(2013-2018) Tajikistan Romania Guatemala Djibouti Benin
Laos Bulgaria Peru Lebanon Mali
Soft Drinks Soft Drinks Soft Drinks Soft Drinks Soft Drinks Soft Drinks Soft Drinks
Key Sub- (78%) (82%) (70%) (82%) (73%) (86%) (79%)
categories* Hot Drinks Hot Drinks Hot Drinks Hot Drinks Hot Drinks Hot Drinks Hot Drinks
(22%) (18%) (30%) (18%) (27%) (14%) (21%)
Supermar- Supermar- Traditional

Traditional Supermar- Supermar-
kets/Hy- Supermar- kets/Hy- Grocery Re-
Grocery Re- kets/Hyper- kets/Hyper-
permarkets kets/Hyper- permarkets tailers (69%)
Key tailers (56%) markets (61%) markets (56%)
(89%) markets (59%) (43%) Supermar-
Channels** Supermar- Traditional Traditional
Traditional Discounters Traditional kets/Hy-
kets/Hyper- Grocery Re- Grocery Re-
Grocery Re- (15%) Grocery Re- permarkets
markets (31%) tailers (30%) tailers (27%)
tailers (4%) tailers (42%) (26%)
Hot drinks Internet retail- Internet re-
Fastest Internet retailing (7%) Internet retail- Internet retail- tail-ing (34%)
Discounters Others (7%)
growth ing (9%) Convenience ing (26%) ing (9%) Supermar-
Internet retail- Internet retail-
channels Discounters Stores & Fore- Discounters Discounters kets/
ing (34%) ing (5%)
(CAGR (3%) court Retailers (11%) (1%) Hypermar-
2011-16) (1%) kets (2%)
Supermar- Convenience
Hot drinks Traditional
others kets/ Stores & Fore- Discounters
Slowest Others (-3%) Grocery Re- Traditional
(1%) Hypermarkets court Retailers (-2)
growth Traditional tailers (-2%) Grocery Re-
Supermar- (0%) (-4%) Traditional
channels Grocery Re- Supermar- tailers
kets/ Traditional Supermar- Grocery
(CAGR tailers kets/ (1%)
Hypermarkets Grocery Re- kets/ Retailers
2011-16) (2%) Hypermarkets Others (5%)
(0%) tailers Hypermarkets (1%)
(-1%)
(1%) (-2%) (0.5%)
Traditional Supermar- Supermar- Supermar- Supermar- Traditional
Traditional
Grocery Re- kets/ kets/ kets/ kets/ Grocery Re-
Grocery Re-
tailers Hypermarkets Hypermarkets Hypermarkets Hypermarkets tailers (74%)
Soft tailers
(44%) (70%) (47%) (42%) (42%) (54%) Supermar-
drinks Key (48%)
Supermar- Convenience Traditional Traditional Convenience kets/Hy-
Channels** Supermar-
kets/ Stores and Grocery Re- Grocery Re- Stores and permarkets
kets/Hyper-
Hypermarkets Forecourt tailers tailers Forecourt Re- (12%)
markets (36%)
(34%) Retailers (21%) (21%) (41%) tailers (18%)
Soft drinks Internet retail- Internet retail- Supermar-
Internet Re-
Fastest ing (19%) ing (11%) Internet retail- kets/
tailing (16%) Others (5%) Internet retail-
growth Convenience Convenience ing (39%) Hypermar-
Discounters Internet retailing (5%)
channels Stores and Stores and Discounters kets (9%)
(12%) Internet ing (5%) Others (5%)
(CAGR Forecourt Re- Forecourt Re- (11%) (6.2%) Internet re-
retailing (%)
2013-18) tailers (8%) tailers (6%) tailing (9%)
Supermar- Supermar- Traditional
Soft drinks kets/ kets/ Grocery Re-
Supermar- Others (-6%)
Slowest Hypermarkets Hypermarkets tailers
Discounters kets/ Convenience Discounters
growth (-1.4%) (0%) (-12%)
(1%) Hypermarkets Stores & Fore- (4%)
channels (0%) Traditional Supermar-
Others (1%) (0%) (0%) court Retailers Others (7%)
(CAGR Traditional Grocery Re- kets/
Others (0%) (2%) (2%)
2011-16) Grocery Re- tailers Hypermarkets
tailers (1%) (0%) (2%)
Notes: * Market share of overall beverages market in 2018

** Market channel share of overall beverages market in 2018
Market Size and Potential
BEVERAGES
Moderate Growth for Beverages Expected
as Consumer Choices Evolve
The total beverage market in 2018 stood at US$691 billion, up from US$631 billion in 2013 and is expected to reach
US$773 in 2023. Global growth will remain moderate, but stable with a projected forecast CAGR of 2.27% in the
coming 5 years. Some major shifts between subcategories however are anticipated, as health and wellness impacts
consumption patterns.
Exhibit 18 - Beverage Value Sales in 2018, 2023 & CAGR 2018-2023, US$ billion
140.7bn
0.5% 165.5bn
137.3bn 25.3bn
1.9%
150.9bn
2.7%
221.0bn
49.9bn
3.6%
41.8bn
42.8bn 11.3bn
4.7% 2.7%
110.0bn 34.1bn 9.9tn
2.7%
96.3bn
Key: Inner circles indicate the Beverages market size in 2018, outer circles indicate market size in 2023
The distance between the inner and outer circles indicates the size of the absolute growth
The fastest growing beverage markets between as well. Similar developments, especially good growth
2013 and 2018 were found in Sub-Saharan Africa, for hot drinks can be seen in Asia Pacific and Latin
and the Middle East and North Africa, where strong America as well. This is further supported by slow
population growth, an expansion of modern retailing growth or even declining rates for carbonates in many
and urbanization naturally boost demand. For similar markets, as several countries have introduced taxes on
reasons, growth rates in these two regions are also sugar-sweetened beverages.
expected to remain the strongest over the coming five
Australasia was the slowest growing region for overall
years. Additional support will be growing demand for
beverages in the past 5 years, as growing health
hot drinks. Many countries in Sub-Saharan Africa and
awareness has dampened sales of sweetened drinks
the Middle East and North Africa are witnessing the
and beverages with artificial ingredients. Anti-sugar
formation of an on-trade coffee culture through the
trends and a growing demand for naturally healthy
expansion of domestic and international chains like
products will also be the main reason for low growth in
Starbucks, Café Neo, Kaldi’s Coffee, Vida e Caffé, Costa
North America between 2018-2023. Several major US
Coffee and others. As consumers try to replicate the
cities have placed taxes on sweetened beverages, with
experience at home, off-trade coffee sales are growing
a devastating impact on the carbonates industry.
49
Exhibit 19 - Beverages Regional Value Sales Breakdown in 2018, 2023
100%
80%
60%
40%
20%
0%
Asia Pacific Australasia Europe Latin Middle East & North Sub-Saharan
America North Africa America Africa
Hot Drinks Soft Drinks Source: Euromonitor International analysis from Passport
Similar developments are shaping the soft drinks market the beverage field therefore appeared mainly within
in Europe and growth within beverages is therefore the health and wellness sector. In the US, the largest
expected to either come from functional and healthy market for overall beverages, both coffee and tea
soft drinks or through developments within hot drinks. saw the introduction of products marketed for their
In Western Europe, consumers also started to embrace health benefits as well as the incorporation of healthy
zero-calorie alternatives in carbonates, while beverages ingredients from around the world.
derived from CBD oil could become an interesting area
Eight O’Clock Coffee for example expanded its infusions
for global beverage companies in North America. CBD
line by three flavours in 2017, each marketed for specific
products are promoted for their potentially relaxing
functional health benefits. Two varieties thereby used
benefits and have seen high demand after partial
naturally healthy ingredients from around the world-Acai
legalisation of cannabis in some US localities and full
and turmeric- as the key functional ingredient.
federal legalisation in Canada in 2018.
Choice Organic Teas’ mushroom wellness range followed
Growing demand for hot drinks on the other hand is
a similar strategy. These teas combine mushrooms
highly supported by an on-going premiumization trend
(which Choice Organics indicates supports a healthier
in most markets. In Australasia and North America for
immune system) with ingredients such as turmeric and
example, fresh and pod coffee from speciality sources
matcha. By indicating the functional benefits of each
is growing in popularity as consumers want to replicate
variety of tea on the box, Choice Organic is targeting
the foodservice experience at home. The hot drinks
consumers looking for specific attributes.
market is additionally supported by growing demand for
herbal teas, which appeal to consumers for their health The positive image of hot drinks was also increasingly
and functional benefits. Similar developments can be used to boost sales of soft drinks, with RTD coffee and
observed in Asia-Pacific, where green/white and herbal RTD tea witnessing several important introductions. After
teas are seen as a healthy alternative to carbonates and Starbucks’ tie-up with PepsiCo proved to be a success,
concentrates and often bought as an aid to digestion Coca-Cola made a deal with Dunkin’ Donuts to launch
or to improve skin complexion. The health and wellness Dunkin’ Donuts RTD coffee in February 2017. Inspired
trend is also responsible for strong growth of by Starbucks’ success other companies, especially from
green and herbal teas in many markets within the dairy sector followed suit. The UAE
in Europe and the Middle East based company Al Rawabi and
and North Africa. Specific to the Saudi dairy giant Al
the Middle East and North Othman Group,
Africa and Asia-Pacific the owner of
however is a shift from the Nada brand
the traditional loose for example both
tea towards the more launched their own range
convenient form of of RTD coffees.
tea bags.
Interesting
innovations within
Market Trends and Drivers
BEVERAGES
Natural, healthy and functional Premiumization shapes the
beverages are shaping the beverage industry
beverage market Consumers of soft and hot drinks are willing to
The defining trend within beverages remains health spend more on high-quality products, exotic flavours,
and wellness. In face of an obesity epidemic and special aromas and nutritional benefits as well as
growing rates of diabetes and cardiovascular diseases convenience. The most developed examples of this
consumers all over the world are interested in tasty, trend are flourishing subscription-based personalised
healthy and convenient alternatives to sugar-loaded tea sales in Asia-Pacific and growing home delivery
carbonates. This is supported by government-led services of specialty coffee and tea in bean or leaf
campaigns to limit the sugar intake through beverages formats in many developed markets, such as the UK.
in many countries. Several markets, including Saudi Other results, are the development of extravagant
Arabia, the UAE, the UK, South Africa and the flavours, often inspired by countries and cultures and
Philippines introduced new or higher soda/sugar taxes, the introduction of flavour varieties. Premiumization
directly affecting sales of carbonates and boosting within soft drinks on the other hand is based on the
the market for healthier options as a result. Within soft above-mentioned health trend, as many consumers
drinks, this has supported the development of two are ready to pay high prices for premium juices,
key areas: The first comprises of products positioned smoothies and plant waters to enjoy a combination
as natural alternatives or naturally “better for you” of good taste and nutritional benefits. Such products
products such as water, not from concentrate 100% are often distributed in smaller packaging types for
juices or green/white and herbal teas. The second key convenient on-the-go consumption through channels
area is functional products. Especially in developing like convenience stores or forecourt retailers.
and emerging markets, consumers are showing an
increasing interest in products fortified with minerals,
vitamins, herbs or botanicals to reach daily intake
recommendations.
Ethical labels as a unique

selling point
Ethical considerations are increasingly important to
consumers of hot drinks. Ethical labels have thereby
become the standard tool for measurement and
assurance in developed markets, as consumers are
not only aware of many common ethical labels,
but also trust the NGO’s behind them to ensure
authenticity. Within hot drinks, sustainability/
environment certificates such as UTZ Rainforest
Alliance, Fairtrade and Ethical Tea Partnership are
leading, demonstrating the increasing awareness and
concern for this topic. Future opportunities based on
ethical labels are expected to also arise in emerging
markets, as sustainability awareness started to develop
in line with the formation of a larger middle class
and growing health consciousness. Ethical labels are
thereby expected to become a unique selling point,
verifying a brand’s ethical credentials. As ethical
labels are already quite established in many markets
for coffee, consumers are also expected to demand
a similar development within the tea segment and at
some point, within soft drinks. A sustainable approach
is increasingly seen as being part of a healthy product.
The demand for tea as a healthy beverage is therefore
expected to raise questions about the production
process in regard to sustainability and human welfare,
while soft drinks marketed as healthy could see a
similar development.
51
Competitive Landscape
The global beverage market is relatively consolidated and dominated by large multinational companies, namely Coca-
Cola Co, The and PepsiCo Inc within the soft drinks sector and Nestlé SA, Jacobs Douwe Egberts and Unilever Group
within hot drinks.
Exhibit 20 - Global Company Shares 2018 - Beverages
Rank Company Global Market Share
1 Coca-Cola Co, The 17.38%
2 PepsiCo Inc 7.28%
3 Nestlé SA 5.65%
4 Suntory Holdings Ltd 1.92%
5 Dr Pepper Snapple Group Inc 1.60%
6 Red Bull GmbH 1.46%
7 Unilever Group 1.40%
8 Jacobs Douwe Egberts 1.35%
9 Danone, Groupe 1.34%
10 Monster Beverage Corp 1.30%
11 Private Label 5.19%
12 Others 54%
Coca-Cola and PepsiCo are benefiting from their broad portfolios and strong consumer loyalty
towards its’ carbonates brands, accounting for a combined share of 31% within soft drinks in 2018.
Private Label, specifically strong within water and juices holds a share of merely 5% in overall soft
drinks.
Nestlé SA and Jacobs Douwe Egberts are the leading players within the consolidated brand
environment for coffee. Especially Nestlé has a strong portfolio of different product types to cater
to various demands all over the world. Unilever is the largest manufacturer within the otherwise very
fragmented tea segment, due to the popularity of its’ Lipton portfolio.
Distri bution Landscape
BEVERAGES
Super/Hypermarkets remain dominant distribution channel for beverages
Bricks and mortar stores remain dominant within the distribution of soft and hot drinks, despite good growth for
internet sales.
Exhibit 21 - Global Soft Drinks Volume Sales Split by Retail Channels, 2013-2018
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2012 2013 2014 2015 2016 2017 2018
Convenience Stores and Supermarkets/

Discounters Traditional Grocery Retailers Internet Retailing
Forecourt Retailers Hypermarkets
Exhibit 22 - Global Hot Drinks Volume Sales Split by Retail Channels, 2013-2018
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2012 2013 2014 2015 2016 2017 2018

Discounters Traditional Grocery Retailers Internet Retailing
Forecourt Retailers Hypermarkets
53
Supermarkets/hypermarkets remain the most important channel for beverages globally,
while traditional grocery retailers retain their position as the second most important
channel. The latter thereby managed to keep its’ global market share relatively stable
between 2013 and 2018, despite strong investment in modern retailing in all regions.
Supermarkets/hypermarkets on the other hand lost shares to internet retailers and
convenience stores and forecourt retailers.
The growing importance of these channels reflect the increasing demand for
convenience among urban societies in many countries. Especially convenience stores
are becoming more important, as they are often conveniently placed around public
transportation, in crowded city centres and shopping malls or as a modern substitute
for traditional grocers functioning as neighbourhood stores.
While discounters expanded their network in most regions between 2013 and 2018,
their share remained stagnant on a global level. This is in line with developments in
Europe. the core market for this store type.
Coming from a low base, internet retailing saw its importance rise the most, especially
in the hot drinks category. Sales through this channel increased in line with growing
demand for premium teas and coffees as well as specialty drinks. Consumers
appreciate the variety available online as well as the convenience of home delivery.
Urbanization in line with shrinking household sizes is expected to be a major force

in future retail developments on a global level: Faced with an aging society and
increasingly busy lifestyles, consumers in mature markets such as Europe and
North America are expected to turn towards smaller stores in urban environments.
Accessibility and the availability of smaller packaging sizes are thereby key and cater to
the demands of both groups.
Rapid urbanisation also allows an increasing number of consumers to access mobile

phones and social media. Information and positive reinforcement increasingly comes
in the form of online interaction with leading brands. While this is benefiting online
sales, digital marketing campaigns are also often used in combination with in-store
promotions and discounts. An excellent example for a successful online marketing
strategy is Halo Top ice cream. The brand’s popularity grew based on word-of
mouth marketing, which was triggered solely by social media advertisements and a
cooperation with fitness gurus on YouTube.
Challenges and Opportunities
BEVERAGES
Rising health and wellness awareness towards beverages with sugar impact
less diverse manufacturers to a greater extent
Challenges
Effects of climate
change, especially new
pat-terns in terms of
rainfall and temperature
Lack of training and

agricultural support to
sta-bilise and expand
production of key crops
Mismanaged water
resources creates
scarcity and higher
access charges
Rising consumer health

and wellness awareness
impacting sugar heavy
categories
Increasing regulatory
control and additional
tax regimes concerning
ingredient content e.g.
sugar
Higher production
costs due to increasing
regulation of packaging
e.g. PET Bottles, BPA-
free coatings
Evaluation of ethical
credentials, sourcing
and sustainability
policies by consumers
Wholesale / import -
Supplier/farmer Manufacturer Retailer
exporter
Key: Moons indicate the level of direct impact on each stakeholder

The fuller the moon, the higher the direct impact:
Low _________________________> high
55
Product customisation is the key to capitalising opportunities
across most regions
Opportunities
Premiumization trend
within coffee and tea
Agricultural
developments and
technologies to improve
crops
Increasing demand
for naturally healthy
beverages, especially
in developed markets
Growing appreciation
of vitamin and mineral
fortification in many
developing and
emerging markets
Ethical labelling as a
unique selling point
within hot drinks
Consumer eagerness to
try innovative products
as well as products and
ingredients from around
the world
Smart packaging
to ensure freshness
and low use of
preservatives
Increasing demand for

on-the-go consumption
and convenience
exporter

Low _________________________> high
CONFIDENCE INDEX
Current performance satisfaction vs. expected growth
Beverages Sector
Satisfaction - current performance Vs Activity
Confidence - Over the next 12 months Vs Activity
Confidence - Over the next 3 years Vs Sector

BEVERAGES
Main Challenge
1 Higher regulatory control & production costs
2 Adapting to new retail and distribution models
Manufacturer
3 Volatile commodity prices
4 Growing competition from Private Label products
Key Trends
Key Trends Vs Activity Beverages

Honest advertising & labeling 29.10%
Elevated convenience, 'grab-and-go' 15.90%
Main growth channel in the next 12 months by sector

Product portfolio and strategy Vs Sector Beverages
Direct Sales to customer 38.80%

Research & Development 26.50%
Current Channels 21.80%
Contract Manufacturing 19.40%
Own ecommerce 14.70%
Mergers & Acquisitions 14.10%
Third-party ecommerce 10.00%
Omni-channel retailing 8.80%
Other 4.70%
59
Top growth strategy for the next 3 years by sector
40.2%
24.3%
Beverages
17.8%
17.8%
Venture into new market Grow product portfolio Reduce cost / Enter value-for-money category
Explore new F&B category
Critical Factors - Beverages Critical factor - Beverages
Selling price (strong competition) 30% 32%
Input/raw material costs 26% 26%
Payment timeline/difficulty in getting paid 27% 22%

Paym
Cost of capital/access to credit 24% 23%
Tax, regulatory, bureaucratic aspects 21% 26%
Workforce cost 14% 28%
Fast-changing sector 9% 26%
Shortage of professional education / training 11% 22%

Shorta
Patents and trademarks/counterfeiting problem 11% 19%
Patents an
0% 10% 20% 30% 40% 50% 60% 70%
Extremely critical Fairly critical
Consumer attention - Beverages

Consumer attention - Beverages
Quality 49% 32%

Price 44% 34%
Brand 28% 37%
Packaging 23% 35%
Free-from 11% 27%
Vegan 6% 16%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

airy
D
Dairy Industry - At a Glance
Middle
North Sub-Saharan
America Africa
Africa
Consumer
spending on
5% 12% 11% 8% 8% 2% 20%
dairy as % of
total F&B*
Chile
India Romania Qatar Ethiopia
Dominican
Key Growth Laos Estonia Algeria Burkina Faso
New Zealand Republic Canada
Markets Vietnam Albania Lebanon Comoros
Australia Guatemala USA
(2013-2018) Bhutan Kosovo Sudan Mali
Haiti
Myanmar Macedonia Oman Gambia
Costa Rica
Drinking Milk Drinking Milk Drinking Milk Drinking Milk Cheese (36%)
Drinking Milk
Products Products Cheese (37%) Products Products Drinking Milk
Products
(56%) (45%) Drinking Milk (36%) (31%) Products
(51%)
Key Sub- Yoghurt and Yoghurt and Products Cheese (30%) Cheese (28%) (29%)
Butter and
categories** Sour Milk Sour Milk (45%) Yoghurt and Yoghurt and Yoghurt and
Spreads
Products Products Other Dairy Sour Milk Sour Milk Sour Milk
(15%)
(29%) (25%) (16%) Products Products Products
Cheese (13%)
Cheese (5%) Cheese (16%) (15%) (21%) (14%)
Super- Super- Super- Traditional Traditional
Super-
markets/ markets/ markets/ grocery re- Super- grocery re-
markets/
hypermarkets hypermarkets hypermarkets tail-ers (49%) markets/ tailers (48%)
Key Chan- hypermarkets
(44%) (72%) (48%) Super- hypermarkets Supermar-
nels*** (60%)
Traditional Traditional Traditional markets/ (79%) kets/ hy-
Discounters
grocery retail- grocery retail- grocery retail- hypermarkets Others (9%) permarkets
(18%)
ers (35%) ers (10%) ers (38%) (40%) (39%)
Convenience
Fastest grow- Internet re- Internet Internet re- Internet Internet Internet re-
stores & fore-
ing channels tailing (33%), retailing (18%), tailing (10%), retailing (51%), retailing (19%), tailing (55%),
court retailers
(CAGR Discounters Discounters Discounters Discounters Discounters Discounters
(16%), Internet
2011-16) (10%) (13%) (3%) (9%) (3%) (13%)
retailing (15%)
Traditional Supermar-
Slowest Others (-4%) Tradition- Supermar-
Others (1%) grocery retail- Traditional kets/ hyper-
growth Tradition- al grocery kets/ hyper-
Traditional ers (-1%) grocery retail- markets (7%)
channels al grocery retailers markets (9%)
Grocery Re- Supermar- ers (0%) Traditional
(CAGR retailers (-1%) Others (10%)
tailers (5%) kets/ hyper- Others (0%) grocery retail-
2011-16) (6%) Others (1%)
markets (2%) ers (8%)
Note: * Consumer spending on dairy also includes spending on eggs

** Market share of overall dairy market in 2016
*** Market channel share of overall dairy market in 2016
DAIRY INDUSTRY
Growth in dairy primarily driven by Asia Pacific and Middle East and Africa

Dairy sales stood at an estimated US$501.4 billion in 2018 globally, up from US$478.6 billion in 2013. With an expected
forecast CAGR of 2.3%, the industry is projected to reach US$560,9 billion in 2023.
Exhibit 23 - Dairy Value Sales in 2018, 2023 & CAGR 2018-2023, US$ billion
76.5bn
0.4% 175.41bn
75.0bn 165.8bn
1.0%
167.1bn
4.4%
133.9bn
2.9%
Europe Asia Pacific
35.2bn
20.2bn Middle East & 12.0bn

North Africa
3.3% 1.9%
70.3bn 17.3bn 10.9tn
2.6%
62.0bn
Latin America
Europe and Asia Pacific are the most significant Dairy consumption in Australasia remains insignificant
consumers of dairy from a global perspective, on a global scale based on the small size of the region
accounting for 33% and 27% of global value sales in in terms of population, accounting for merely 2% of
2018. Asia Pacific is also expected to see the strongest world consumption. In terms of exports however, the
growth in the coming five years, with an estimated region retains an important position. Industry insights
CAGR of 4.4% and based on population growth, rising suggest that 70% of the country’s production is sold
incomes and the development of a cold chain logistic in Asia Pacific, 10% in the Middle East and North Africa
system in many countries. The front runner of this and 4% in Sub-Saharan Africa.
developments is India, expected to see the largest
Dairy consumption in Europe is relatively mature, as
increase in terms of actuals as well as percentage
per capita rates in Western Europe are already high.
growth between 2018 and 2023. The country is
Growth opportunities are therefore mainly found in
benefiting from increasing consumption rates of fresh
Eastern Europe, with Romania, Estonia and Albania
milk and product innovation within flavoured milk.
expected to see the highest growth rates over the
Similar developments are expected to support growth coming five years. The largest increase in actual
in Sub-Saharan Africa, the Middle East and North terms however is expected in Russia, as the country is
Africa as well as Latin America. Many markets in Middle showing signs of an economic recovery. The Russian
East and North Africa will additionally benefit from dairy industry suffered under the import ban on several
the replacement of loose traditional products with EU products, but domestic producers have been able
packaged ones as well as on-the-go innovations. The to increase production and shelves are filling up again.
dairy industry in Latin America and Sub-Saharan Africa As Russia accounts for nearly half of the Eastern
on the other hand will benefit from the economic European dairy market, the country’s 2% CAGR will
recovery of major markets like Brazil and Nigeria. be one of the major reasons for the expected 1% value
63
CAGR in overall Europe. Economic growth in Russia Especially drinking milk has therefore seen declining
is also expected to revive a health and wellness trend demand and storage warehouses are filling up with
and more adventurous purchasing patterns there. excess produce. Many farmers started to convert
This could open up opportunities in less traditional excess milk into butter, powdered milk and cheeses, as
segments, such as flavoured milk drinks or drinking these products have a longer shelf life than fluid milk.
yoghurt. In light of this glut of long-shelf-life dairy products, unit
prices are expected to decline which in return could
The North American dairy market is suffering under a
boost volume growth within other dairy, cheeses as
growing trend of lactose-free and vegan eating habits.
well as butter and spreads.
Exhibit 24 - Dairy Regional Value Sales by Product Type in 2018, 2023
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Drinking Milk Yogurt and Sour

Butter and Spreads Cheese Other Dairy
Products milk Products
The defining theme of innovations within dairy offer a budget-friendly option in this segment, as
were dairy alternatives, often in combination with the economic situation in Russia has forced many
sustainability and health claims. The discounter Aldi consumers to limit their spending.
for example introduced a broad private label range of
Hebei Yangyuan Zhihui Beverage in China on the other
milk alternatives, such as unsweetened and sweetened
hand focused on added health benefits and introduced
almond drinks as well as a coconut drink under its’ bio
a new walnut milk series made by CET cold brewed
brand in Germany. As the organic certificate enjoys
technique, while the US market saw a boost of non-
wide popularity and is often seen as a must among
dairy alternatives outside of the standard drinking milk
health-conscious consumers, this combination is seen
segment, as Nestlé introduced Coffee Mate based on
as an excellent way to create a competitive edge.
almond and coconut milk.
Russia saw similar developments, as Sady Pridonya
OAO NPG launched the oat drink NeMoloko, while
Coca-Cola introduced its’ international brand of dairy
alternatives AdeZ. Both products are designed to
DAIRY INDUSTRY
Health and Wellness concerns America and Europe on the other hand have shown
greater interest in animal welfare, farmers’ wellbeing
shake up the dairy isle

and the environmental effects of the production
The health and wellness trend manifests itself in two process. ‘Free range’, ‘grass fed’ and ‘regional’ are
key developments within dairy: Growing demand for thereby important buzzwords, while vegan labelling
high protein products and an increasing preference is becoming more important based on the growth of
of plant-based alternatives. Feeding into veganism, dairy alternatives. Successful product examples within
which is said to be the biggest lifestyle movement this segment include the Organic Valley Grassmilk by
of the 21st century, are products based on an Friesland Campina or Aldi’s private label portfolio of
ever-increasing number of alternative ingredients. milk alternatives under its bio brand.
Almond drinks and soy milk are increasingly joined
by macadamia, walnut, cashew and oats alternatives. On-the go consumption and
New product launches within the traditional dairy portion control boost single serve
sector on the other hand often advertise high protein,
lower lactose and all-natural aspects on their front
portions
pack. Portion control as an important part of dietary
awareness around the world, growth of single-person-
Sustainability as an intrinsic part of households and increasing demand for convenience
a healthy product and on-the-go consumption boost demand for single
serve portions. Within dairy, this trend has been
Sustainability as well as animal and human welfare strongly supported by increasing demand for high
during the production process of dairy products protein snacks, seen as a filling and healthy alternative
are playing an ever-increasing role in purchasing to traditional sweets. ‘Grab and Go’ is thereby
decisions. Many consumers are convinced that spurring innovation. A newly introduced high protein
sustainable production constitutes to the health skyr snack on the go for example is competing with
benefits of a product, making it more ‘natural’ and soft drinks in Slovakia, while Argentina saw the
‘clean’. This has fuelled demand for organic products introduction of Bogat’s Yogurade, a sugar-free protein
in many countries in the Middle East and North Africa snack and the first widely available high-protein
as well as Asia. Consumers in Australasia, North drinking yoghurt in the country.
65
The global dairy market is highly fragmented, with a large presence of local
players in many regions.
Exhibit 25 - Global Company Shares 2018 - Dairy
1 Danone, Groupe 4.60%
2 Lactalis, Groupe 4.01%
3 Inner Mongolia Yili Industrial Group Co Ltd 2.91%
4 China Mengniu Dairy Co Ltd 2.76%
5 Nestlé SA 2.54%
6 Kraft Heinz Co 1.69%
7 Royal FrieslandCampina NV 1.38%
8 Arla Foods Amba 1.33%
9 Yakult Honsha Co Ltd 1.11%
10 Savencia Fromage & Dairy 0.90%
12 Others 62.95%
The global dairy market is dominated by private label convenient way to indulge through several on-the-go
products, as consumers in many countries don’t see packaging sizes, while still retaining its healthy image
an added value in purchasing higher priced brands based on probiotic properties. Lactalis’ success on
from leading multinationals, especially within the the other hand is based on a strong cheese portfolio,
drinking milk segment. Furthermore, most discounters which is very well established in many European
in Europe incorporate the health and wellness trend markets and an increasing number of acquisitions in
into new product developments, for example through growing markets, such as Turkey and Brazil.
natural ingredient lists or organic certifications,
thereby giving consumers an extra incentive to
choose private label. The overall market is also
fragmented, with local dairy companies often serving
a geographically limited market. An exception are
Danone, Groupe and Lactalis, Groupe, accounting for
5% and 4% respectively of global dairy sales. Danone
managed to earn trust and appreciation among
consumers for its’ functional yoghurt portfolio, with
high consumer loyalty towards the Activia range. The
brand serves consumers looking for a healthier and
DAIRY INDUSTRY
Modern grocery retailing dominates distribution of dairy

Supermarkets/hypermarkets retain their dominant position within the dairy category, accounting for 55% of global

value sales in 2018.
Exhibit 26 - Global Dairy Value Sales Split by Retail Channels, 2013-2018
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2012 2013 2014 2015 2016 2017 2018
Convenience Stores and Forecourt Retailers Discounters
Supermarkets/Hypermarkets Traditional Grocery Retailers
Internet Retailing Others
Consumers generally perceive modern grocery of convenience stores and e-commerce to reduce
retailers as more trustworthy in maintaining an dependency on hypermarkets. While smaller
effective cooling system and thereby product retail formats often replace traditional retailers in
freshness. Hence, supermarkets/hypermarkets developing countries, they are seen as a good way
represent an important pillar in supporting the growth to penetrate city centres and premium suburbs in
of chilled dairy products in developing and emerging developed markets.
markets. The importance of traditional grocers on
Another growing channel in many markets benefiting
the other hand is limited and the channel was only
from strong price-consciousness since the 2009
dominant in Sub-Saharan Africa and Middle East and
global financial crisis are discounters. Consumers
North Africa in 2018.
in developed markets started to see an absence of
Nevertheless, supermarkets/hypermarkets are still truly unique value propositions from many middle-
losing shares to other retail formats, such as internet market grocery retailers and branded products within
retailing, convenience stores and discounters. Big the dairy category. This was further fuelled by the
retail chains all over the world are therefore investing expansion of Aldi and Lidl, as the discounters offer
into a more diverse distribution system. Global a combination of low prices and quality, while also
giants such as Walmart, Carrefour or Woolworths adapting to local tastes and latest trends.
for example have all strengthened their network
67
Growing consumer expectations as a key challenge and a basis for

opportunities is the key challenge
Challenges
Smooth adaptation
of technology into
traditional and existing
farming or manufactur-
ing processes
Volatility of raw milk

prices
Decreasing brand
loyalty and growing
demand for value for
money
Increasing demand
for plant-based dairy
alternatives as a result
of veganism and
lactose-free diets
Growing demand for

sustainability and envi-
ronmentally friendly
farming and processing
Growing concerns
regarding food safety
High cost of ‘clean’,

‘natural’, ‘free from’
‘organic’ and ‘grass fed’
products
exporter

Low _________________________> high
DAIRY INDUSTRY

Opportunities
New monitoring and

processing technologies
to ensure food safety
and production
optimization
Sustainable farming and

production as an added
value for dairy products
Supply chain
optimisation/vertical
integration
Positioning of dairy
products as a healthy
snack
Vitamin and mineral

fortification as an added
value
Increasing demand for

single-serve and conven-
ience
Private label offerings

with lower price points
Consumers appetite
for diversity and an
inter-national product
assortment
Growing consumer
awareness about protein
intake for hunger
control, training and
weight management
exporter

Low _________________________> high
69
Dairy Sector

DAIRY INDUSTRY

Main Challenge
Manufacturer
4 Negative publicity of processed

foods and beverages
Key Trends
Key Trends Vs Activity Dairy


Product portfolio and strategy Vs Sector Dairy

Other 2.40%
71
34.1%
25.6%
Dairy
23.2%
17.1%
Critical Factors - Dairy Critical factor - Dairy
0% 10% 20% 30% 40% 50% 60% 70%
Consumer attention - Dairy Consumer attention - Dairy
Price 36% 31%

Quality 34% 33%
Brand 22% 38%
Packaging 19% 30%
Free-from 8% 20%
Vegan 6% 13%
0% 10% 20% 30% 40% 50% 60% 70% 80%

eat
M ul try
P o
Meat and Poul try Industry - At a Glance
Middle
North Sub-Saharan
America Africa
Africa
Consumer
spending
on meat & 1.5% 2.2% 4.9% 1.4% 1.3% 3.9% 0.3%
poultry as %
of total F&B
Turkey Cote d’Ivoire
Japan Iran
Key Growth Norway Congo,
Indonesia Chile Egypt USA
Markets New Zealand Poland Democratic
Philippines Mexico Morocco Canada
(2013-2018) Sweden Republic
South Korea Saudi Arabia
Switzerland Ghana
Processed
Chilled Pro-
Key Sub- Meat 66.2% Processed Processed Processed Processed Processed
cessed Meat
categories* Meat Substi- Meat 95.1% Meat 98.0% Meat 99.2% Meat 97.1% Meat 95.4%
97.1%
tutes 33.8%
Supermar-
Supermar- Supermar- Supermar-
Supermarkets Super- kets /hy-
Supermarkets kets/hy- kets/hy- kets/hy-
/hypermar- markets/ permarkets
/hypermar- permarkets permarkets permarkets
Key kets (59.6%) hypermar- (54.4%)
kets (80%) (56.5%) (47.6%) (69.3%)
Channels** Traditional kets(55.8%) Traditional
Discounters Traditional Traditional Traditional
grocery retail- Discounters grocery
(15.6%) grocery retail- grocery retail- grocery retail-
ers (12.4%) (20.3%) retailers
ers (31.9%) ers (40.1%) ers (14.7%)
(36.4%)
Internet retail- Internet retail- Internet retail- Internet retail-
Fastest Internet re-
ing (24.4%) Internet retailing (9.4%) ing (13.6%) ing (32.1%) Internet retail-
growth tailing (7.5%)
vConvenience ing (13.4%) Convenience Convenience Convenience ing (28.1%)
channels Traditional
stores & fore- Discounters stores & fore- stores & fore- stores & fore- Discounters
(CAGR groceries
court retailers (7.4%) court retailers court retailers court retailers (1.7%)
2013-18) (2.0%)
(12.3%) (1.6%) (2.1%) (6.6%)
Super-
markts/
Tradition- Convenience Tradition- Traditional
Traditional Traditional hypermarkts
al grocery stores & fore- al grocery groceery
Slowest grocery retail- groceries (-4.5%)
retailers court retailers retailers retailers
growth ers (2.6%) (-0.5%) Convenience
(-1.8%) (-3.0%) (-3.7%) (-3.0%)
channels Supermar- Supermar- stores &
Supermar- Supermar- Supermar- Supermar-
(CAGR kets/hy- kets/hy- forecourt
kets/hy- kets/hy- kets/hy- kets/hy-
2013-18) permarkets permarkets retailers
permarkets permarkets permarkets permarkets
(5.2%) (0.0%) (-4.0%)
(0.6%) (-1.3%) (0.3%) (-1.0%)
Discounters
(-3.5%)
MEAT & POULTRY INDUSTRY

Consumer preferences on meat tend to vary considerably across regions
Global meat and poultry sales stood at an estimated US$174.8 billion in 2018, up by a relatively stagnant CAGR of 0.5%
since 2013. As of recently, the market has been driven by increased demand out of Asia and the Middle East and Africa
regions for halal products, a sub-category especially significant to the Muslim majority population that resides in these
markets. Global meat and poultry market sales are estimated to reach US$185.9 billion leading up to 2023, with growth
picking up pace to a CAGR of 1.2% over the forecasted 2018-2023 period.

Exhibit 27 - Meat and Poultry Value Sales in 2018, 2023 & CAGR 2018-2023 US$ billion
33.5bn
1.2% 73.9bn
33.5bn 50.2bn
0.3%
73.5bn
2.3%
44.8bn
North America 7.5bn
5.2%
Europe Asia Pacific
5.9bn

North Africa
2.5% 0.2%
12.0bn 1.1bn 1.8bm
2.9%
10.4bn
Latin America
Key: Inner circles indicate the Meat & Poultry market size in 2018, outer circles indicate market size in 2023
Regional value shares of meat and poultry

consumption remain significant in Western Europe,
Asia and North America, with estimated market shares
of 43.5%, 25.6% and 20.1% of global sales respectively
in 2018. The biggest consumers of meat and poultry
products by value are the USA, China, Germany, Japan
and Italy, combining for over $90 billion in sales in 2018
– nearly half of global market value.
Globally, chilled processed meat products benefitted

directly from a more diversified product range to
cater to stronger consumer demand – suppliers have
also benefited from improved cold-chain systems
that have allowed for more efficient operations. High-
75
level consumer trends are also shaping the direction Europe, on the other hand, is displaying a different
the industry is headed in their product composition. market dynamic. Meat substitutes in France are still
For example, in Asia Pacific, most chilled processed growing rapidly with 43.0% growth in 2018, supported
meat products are Westernised in their marketing by the growing trend of capitalising on healthier
and, as a result, are generally positioned as premium alternatives to processed red meat. Conversely,
products with higher unit prices. Meat preferences vary in nearby Germany, the category has witnessed a
significantly across markets in the Asia Pacific region, value decline between 2017 and 2018 of 7.0%, with
however, with countries such as Japan and Malaysia the outlook for the 2018-2023 period also negative.
favouring chicken-based recipes, while others, such This market decline stems from a general consumer
as China, favour beef products, which appear to be dissatisfaction towards the taste and product
steadily growing in popularity. availability for this category.
Exhibit 28 - Meat and Poultry Regional Value Sales by Product Type in 2018
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Processed Meat Meat Substitutes Source: Euromonitor International analysis from Passport
Nevertheless, meat substitutes saw good growth in Another great example of product development was
different markets, with Japan witnessing two very Nestlé’s brand Herta. After a broad media campaign
interesting introductions specifically designed to target concerning the presence of nitrites in meat, Herta
a new consumer group, to ensure growth within this was the first brand to react and introduce five nitrite-
very mature market. The first one was Zaku Tofu, a free hams under its Le Bon Paris range and chilled
product inspired by Kido Senshi Gundam, a hugely processed poultry under its Le Bon Poulet portfolio.
popular animation series. The product specifically Such a quick reaction towards consumer’s
targets middle-aged male Gundam fans who did
not v much interest in tofu before this introduction.
Sagamiya’s Natural TOFU was the second one,
designed to make tofu popular among a young female
consumer segment. The product portfolio comprises
of many different varieties, such as cheese-like tofu,
drinkable tofu and flavoured tofu such as chocolate
and green tea.

Growing importance of ‘health’ in high meat-consuming countries
Emerging countries, such as China and India, are expected to contribute heavily to the growth of the global meat and
poultry industry due to rising incomes and healthy eating trends. Packaged processed meat products are considered
to be hygienic and high-quality goods in these developing markets and being sold by well-established companies, such
as the WH Group in China and Godrej Tyson Foods Ltd in India, gives them even more brand equity among consumers.
In response to growing consumer demand for more fresh and healthy processed meat products, these manufacturers
have increasingly shifted their focus from shelf-stable processed meat to chilled processed meat.

Demand on halal meat is set to escalate
Demand for halal meat, an important feature of life across
Muslim communities, is growing rapidly. In the Middle East
and North Africa region, nearly all meat is halal by default,
providing a potent market base, whereas in Asia Pacific, which
also houses a significant Muslim population, this practice is not
yet as comprehensive. As a result, demand for halal-certified
products in that region is rising noticeably. In Singapore, for
example, the first Halal-certified Japanese-French inspired
café – Kumoya – has just recently opened, demonstrating a
potential shift in new markets.
Similarly is the case in Europe, across several countries where

Muslims make up an important and growing minority, such as
France, Germany and the UK, rising demand for halal meat
manifests itself on several fronts. For example, supermarkets
such as Carrefour, Sainsbury’s and Tesco’s, for example, have
expanded offerings of fresh halal meat and meat products.
Globally, by 2050, one in three people will be Muslim,

presenting a larger opportunity for processed meat
manufacturers to consider acquiring the halal label.
The shifts towards

packaged Growing share for meat substitutes in North
products drives America and Australasia
demand As the vegan and vegetarian respectively. Correspondingly,
populations continue to grow product varieties and offerings
Mexico, the largest processed in response to increasing health are also expanding rapidly,
meat market in Latin America
concerns over meat intake, an further driving this growth. In
and second fastest growing
even more impactful population the USA, a critical market for
in the region, has seen a
shift towards pre-packaged has also seen strong growth this category, Tyson Foods,
products similarly to other in numbers. “Flexitarians”, or Cargills, Maple Leaf Foods and
emerging markets in Asia those consumers who actively PHW Group are among the
Pacific, which is anticipated seek to limit their meat intake largest names thus far to invest
to drive the category’s while not ceasing it altogether, in alternatives to traditional
dynamic growth over the are a relatively new but fast- animal meat, including both
forecast period. Consumers growing part of the consumer plant-based substitutes and
could order chilled processed population who represent very lab-grown cell-based meats.
meat products by volume,
strong growth prospects for As these alternatives continue
allowing them not only to
meat substitutes. Sales of this to penetrate the industry, more
customise their order, but
also to manage their budgets category continue to grow at investment from traditional
more precisely. rapid rates with 10.3% and 17.9% meat producers appears
value growth in 2017 and 2018, increasingly likely.
77
Safety demands and conerns
are favouring private label
manufacturers
In large developed markets like Italy and Germany,
rising consumers’ concerns over food safety has
presented a potential avenue for growth for private
label manufacturers. In Germany, private labels
for this category dominates sales, with consumers
convinced that food safety inspectors guarantee the
quality of private label products. While in Italy, Coop
has introduced new private label lines, including Coop
Origine, which targets consumers’ desire for total
traceability by providing information on issues such as
production processes and safety certification.
Health and Wellness and clean

label movements are shaping the
category
Demand for healthy food has never been stronger,
impacting both retail and foodservice operators in
large markets like Canada. This is largely driven by
the increasingly aging population, although younger
consumers from the millennial and Gen Z cohorts
are also becoming more health-conscious about the
food and beverages they consume. Even families are
adjusting their lifestyles accordingly - in Argentina,
for example, parents are increasingly trying to replace
typical products like hot dogs or hamburgers with
more nutritious items for their children. As a result,
health and wellness meat substitutes and soy-based
products are slowly gaining a place on the tables of
Argentinian households. Similarly in Canada, demand
for processed meat products that are free from
artificial ingredients and low in sodium, with labels like
“free-from antibiotics and growth hormones” and “all-
natural” have become more impactful on consumers’
purchasing decisions.

Meat and Poultry is a highly fragmented market and leading players are often determined by their dominance in a
limited number of large markets.
Exhibit 29 - Global Company Shares 2018 - Meat and Poultry

1 WH Group 3.33%
2 Tyson Foods Inc 2.64%
3 Kraft Heinz Co 2.26%
4 Hormel Foods Corp 1.53%
5 Sigma Alimentos SA de CV 1.24%
6 Nestlé SA 0.95%
7 Maple Leaf Foods Inc 0.80%
8 Brf Brasil Foods SA 0.72%
9 People's Food Holdings Ltd 0.68%
10 NH Foods Ltd 0.58%
12 Others 62.44%
The largest share by far is hold by Private Label brands. Meat and poultry is another segment, where
consumers are often price-conscious and less convinced about the added value known brand names
could deliver. Most consumers determine the value of a product within this category by labels,
suggesting a transparent, sustainable or organic production process, the absence of additives or
regional sourcing. Especially in Europe, this has offered great chances for discounters and their
associated private label brands.
With a share of 3%, WH Foods, formerly known as Shineway International, is currently leading within
the processed meat and poultry market. The company is the leading supplier of processed meat
and poultry in China and therefore benefiting from the sheer size of the Chinese market. The name
change set the starting point for the company’s intention to expand overseas and in 2017, WH Foods
acquired the US-based Clougherty Packing LLC, marking its venture into the US West Coast market.
The second biggest company within this segment is Tyson Foods Inc, which increased its stance
within the processed meat and poultry market in 2014 through the buyout of Hillshire Farms. The
company thereby increased its’ geographical reach outside the US and Mexico significantly.
79
Consumers look for convenience and value for money

Modern grocery retailers continue to dominate the retail landscape for meat and poultry, driven by convenience,
promotions and discounts. Rising disposable incomes and urbanisation in developing countries continued to further
drive growth in modern distribution channels.
Exhibit 16 - Global meat and poultry value sales split by retail channels, 2012-2018
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2012 2013 2014 2015 2016 2017 2018
Convenience Stores and Supermarkets/ Traditional

Discounters Internet Retailing Others
Forecourt Retailers Hypermarkets Grocery Retailers
Globally, processed meat and poultry are mainly transportation to reach modern shopping centres.
sold through store-based retailing. Modern grocery In India, Indonesia and the Philippines, for example,
retailers, mainly supermarkets and hypermarkets, traditional retailers like kirana stores, warung and
continued to facilitate the most sales in the meat and sari-sari stores also offer consumers informal credit
poultry industry. Rising urbanisation continues to facilities to help build loyalty and drive repeat
drive the shift away from traditional retail outlets to shopping trips.
supermarkets and hypermarkets, both of which have
In competition with store-based retailing, internet
been better able to invest in adequate cold supply-
retailing constitutes the fastest growth channel
chain facilities.
globally, due to an worldwide baseline trend for
On the other hand, in developing regions including convenience in shopping. As consumers become
the Middle East and North Africa, Sub-Saharan Africa increasingly mobile and lead busier lives, internet
as well as Latin America, traditional grocery retailers retailing has emerged as a favourable alternative to
have acquired a substantial share of meat and poultry many brick-and-mortar businesses by offering a wider
sales. Independent small grocers play a vital role range of products and direct delivery.
in many emerging markets, with proximity being
crucial competitive advantage for these retailers, as
many shoppers in these countries lack the means of

Increasing demand for plant based protein products from high income
markets is a challenge for value driven growth

Increasing demand for meat
substitutes as a result of
vegetarianism/veganism
Diversifying consumer needs

and rising demand for value
for money
Negative publicity about the

effects of meat consumption
on the environment and
human health
Rising costs as a result of

increasing energy prices
and imported animal feed
prices, as well as rising cost
of animal slaughtering
Growing concerns of
food safety
Strong shift towards

alternative proteins
exporter

Low _________________________> high
81
CONFIDENCE INDEX
Meat and poul try Sector

Main Challenge

Manufacturer
4 Demand for traceability and sourcing transparency
Key Trends
Key Trends Vs Activity Meat & poultry


Product portfolio and strategy Vs Sector Meat & poultry

Other 7.0%
83
26.8%
29.3%
Meat & poultry
25.60%
18.30%
Critical Factor - Meat & poultry

Critical factor - Meat & poultry
0% 10% 20% 30% 40% 50% 60% 70%
Consumer attention - Meat & poultry

Consumer attention - Meat & poultry
Price 46% 34%

Quality 43% 34%
Brand 21% 36%
Packaging 18% 29%
Free-from 13% 23%
Vegan 4% 12%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

ustry
d Ind
eafoo
S
85
Seafood Industry - At a Glance
Middle
North Sub-Saharan
America Africa
Africa
Consumer
spending on
Seafood as %
1.1% 1.2% 2.1% 0.7% 0.8% 0.7% 0.3%
of total F&B
Serbia
Key growth Austria Turkey
Thailand Argentina
markets for Poland Morocco Ghana
Indonesia New Zealand Mexico
Seafood Czech Republic Algeria Canada Congo
Philippines Australia Costa Rica
(2013-2018) Ireland UAE South Africa
China Chile
Finland Egypt
Norway
Key Seafood Processed

Processed Processed Processed Processed Processed Processed
sub- seafood
seafood (100%) seafood (100%) seafood (100%) seafood (100%) seafood (100%) seafood (100%)
categories* (100%)
Supermar-
Supermarkets/ Supermarkets/ Supermarkets/
kets/Hyper-
Supermarkets/ Supermarkets/ Supermarkets/ Hypermarkets Hypermarkets Hypermarkets
markets (1.8%
Hypermarkets Hypermarkets Hypermarkets (-3.7% CAGR) (6.1% CAGR) (-0.7% CAGR)
Seafood key CAGR)
(0.1% CAGR) (-0.9% CAGR) (1.1% CAGR) Traditional Traditional Traditional
channels** Others Discounters Discounters Grocery Grocery Grocery
Traditional
Grocery Re-
(-2.4% CAGR) (8.1% CAGR) (1.5% CAGR) Retailers Retailers Retailers
tailers
(-7.6% CAGR) (-2.4% CAGR) (-1.2% CAGR)
(2.5% CAGR)
Seafood Internet Re-

fastest tailing
Discounters Internet Re- Internet Re- Internet Re- Internet Re- Internet Retail-
(9.6% CAGR)
growth (27.6% CAGR) tailing (13.6% tailing (15.9% tailing (42.5% tailing (26.4% ing
Convenience
channels Internet CAGR) CAGR) CAGR) CAGR) (7.4% CAGR)
Stores and
(CAGR Retailing Discounters Others Discounters Discounters Discounters
Forecourt
2013-18) (4.3% CAGR) (8.1% CAGR) (3.9% CAGR) (8.6% CAGR) (1.4% CAGR) (5.3% CAGR)
Retailers
(1.9% CAGR)
Supermar-
Convenience
Seafood Traditional kets/Hyper-
Stores and Traditional Traditional Gro-
slowest Others Grocery Others markets (1.8%
Forecourt Grocery cery Retailers
(-2.4% CAGR) Retailers (-1.7% CAGR) CAGR)
growth Retailers Retailers (2.4% CAGR)
Supermarkets/ (-7.6% CAGR) Traditional Gro- Convenience
channels Hypermarkets
(-3.0% CAGR) (-7.3% CAGR)
Supermarkets/
Supermarkets/
cery Retailers Stores and
(CAGR Supermarkets/ Others Hypermarkets
(0.1% CAGR) Hypermarkets (-1.2% CAGR) Forecourt
2013-18) Hypermarkets (-3.7% CAGR) (6.1% CAGR)
(-3.7%) Retailers
(-0.9% CAGR)
(2.0% CAGR)
SEAFOOD INDUSTRY
Moderating value growth expected despite strong demand to 2021
The total market size for Seafood globally stood at US$81.9 billion in 2018. Value sales witnessed a CAGR decline of -0.4%
between 2013-2018, but the market is expected to recover slightly over 2018-2023, recording a positive CAGR of 0.7%.

Exhibit 31 - Regional Seafood Market Size in 2018, 2023 & CAGR 2018-2023 US$ billion
6.5bn
1.1% 33.7bn
6.1bn 31.7bn
1.5%
31.3bn
-1.2%
33.6bn
North America 4.7bn
5.2%
Europe Asia Pacific
3.6bn

North Africa
3.0% 2.1%
5.6bn 1.0bn 1.1bm
2.5%
5.0bn
Latin America
Source:
Key: Inner circles indicate the Seafood market size in 2018, outer circles indicate market size in 2023 Euromonitor
The distance between the inner and outer circles indicates the size of the absolute growth International
analysis from
The colour of the circles indicate the growth rate Fast Moderate Slow Static Passport
Regional Performance Sales in Middle East and North Africa have been
stimulated by demand for products that offer
Globally, Asia Pacific was the largest market for practicality, taste and nutrition. Consumers in North
Seafood at US$33.6 billion in 2018, followed by Africa tend to purchase processed seafood as a
Europe at US$31.4 billion. Asia-Pacific witnessed staple item, and this trend is expected to remain
a marginal decline over 2013-2018 (-0.6% CAGR) strong over the forecast period.
and value sales are expected to decline further over
2018-2023 (-1.2% CAGR), mainly due to declining Sub-Saharan Africa, the smallest global Seafood
sales of chilled processed seafood in Japan, the market, is the second fastest growing region. Growth
largest market in the region. However, sales are in this region is attributable to the increase in shelf-
poised to rise in other parts of the region over stable seafood, which is preferred over fresh fish
2018-2023, owing to the convenience of processed by lower-middle-income groups due to its relative
seafood products. affordability and lack of required refrigeration.
Overall, growth in the forecast period is expected to Historically however, Latin America, is the slowest
be driven by regions such as Middle East and North growing region, with a CAGR decline of -4.1%
Africa and Sub-Saharan Africa which are expected to between 2013-2018. Venezuela, the market leader
witness a CAGR of 5.2% and 3.0% respectively. in this region in 2013, has seen a massive decline in
87
sales since, as branded processed seafood was not remain a key driver over the forecast period.
able to compete with black-market imports due to Premiumisation trends have also influenced new
their higher pricing, which led some brands exiting product development activity.
the market. However, retailers’ preference for pre-
In Norway, an unusually warm spring and summer
packaged products has driven growth in processed
drove sales of barbeque foods, including seafood
seafood in other parts of the region, and it is
options, in 2018. In the previous year, the Norwegian
anticipated to continue to benefit from this trend
Directorate of Health published a report, which
over the forecast period.
outlined the need to promote the consumption of
Country Snapshots fish and seafood. Government initiatives regarding
food tend to be successful in Norway as health
Processed seafood product options have steadily authorities are well respected. Hence, long-term
expanded in the Philippines and Indonesia, as consumption patterns are likely to be impacted by
companies exploit growing consumer desire for these initiatives, and processed seafood is expected
convenience and affordability. Demand for the to outperform processed meat, partly due to a
category is expected to grow, as processed seafood high degree of product innovation at the end of
shortens meal preparation time, which strongly the review period creating healthier seafood-based
attracts busy urban dwellers, as well as those with dishes.
limited cooking skills. Furthermore, items such as
canned tuna are actively promoted by key brands In Poland, recent consumer awareness regarding
as a health food in the Philippines, and recorded the shelf-stable seafood began to grow due to healthier
fastest growth in value terms in 2018. In the same lifestyles. This resulted in rising demand for
year, modern retailers allocated more shelf space better-quality products in oil. Consumer awareness
to shelf-stable seafood in Indonesia. More products continues to develop, and a move from lower quality
were also available in smaller packaging, highlighting to higher-quality products with slightly higher prices
the shift towards portion control and ease of is expected over the next five years.
consumption. Russia, the market leader in Europe, saw a decline in
China, the second largest market in Asia-Pacific, CAGR terms of -0.6%. However, processed seafood
witnessed growth with a value CAGR of 5.5%. is predicted to recover slightly over the forecast
Meanwhile, India recorded a sharp value CAGR of period.
18.1%, but this was from a low base as it still only In Latin America, Mexico is the largest market,
accounts for a small share of the market. with processed seafood products growing due to
Demand for the convenience they offer with regard to cooking
convenience also time and storage. Ready meals witnessed dynamic
drove growth in growth over the review period, with the entry of
New Zealand, new competitors and products. Many of these
with the highest companies are leaders in sales of processed seafood,
value CAGR in who added value to their products by offering more
Australasia, at sophisticated options to consumers.
2.5%. This is Convenience also boosted growth of processed
expected to seafood products in Chile, recording a high increase
in both retail volume and retail value terms, is in line
with the increasingly accelerated pace of life among
Chileans. There was also a significant development in
white meat categories, due to consumer perception
that fish, chicken and turkey are healthier than red
meat. As awareness of the importance of healthy
nutrition continues to grow in Chile, demand
for healthier products can be expected to
continue.
Brazil, the second largest market in Latin

America, observed a CAGR decline of -1.2%
over 2013-2018, as the economy was slow in
recovering from the recession.
In Egypt, consumers tend to prefer buying

processed seafood compared to fresh
products, as it is cheaper. Tuna
is the bestseller in shelf-
SEAFOOD INDUSTRY
stable processed seafood, as it does not have an as healthy and sales of seafood harvested from
alternative. Growing retail modernisation and the sustainable fishing are growing.
increasing convenience trend continue to drive
Sustainability and adequate resource usage is
growth in Algeria. More women are participating in
increasingly important for consumers within seafood
the workforce, and as such are opting for quick meal
and a growing area for investments. In Western

solutions. As a result, demand for processed seafood
Europe and North America, Marine Stewardship
is expected to remain strong over the forecast
Council (MSC) and Aquaculture Stewardship
period. Iran, the market leader in the Middle East,
Council (ASC) certifications are therefore often
also observed value sales growth, with a CAGR of
seen as a standard, as consumers’ demand proof
3.1% over 2013-2018.
of responsible aquaculture. Awareness for seafood
Consumers in South Africa, the market leader in Sub- sustainability in Japan, largest market for this
Saharan Africa, choose shelf-stable fish products category and many other countries in Asia Pacific
because they are much cheaper than fresh fish. This however is still low and just developing. They could
trend will continue and contribute to the growth of however develop into an important unique selling
these products over the forecast period. point in mature seafood markets. In Japan for
example, the industry giants Nippon Suisan Kaisha
Processed seafood sales in Canada increased
and Maruha Nichiro Holdings both launched MSC-
in value terms, with the highest value CAGR in
certified product portfolios, while the leading retailer
North America, at 1.7%. Sustainable sourcing has
AEON wants to acquire the MSC or ASC Chain
increasingly become a necessity for brands, which
of Custody (CoC) certification for all its general
has influenced them to place a greater focus on
merchandise stores and supermarkets by 2020. As
sustainable seafood.
MSC and ASC have partnered up with the Japanese
Middle East Focus Olympic athletes, the Tokyo 2020 Olympic and
Paralympic Games are seen as a great opportunity to
One of the most significant driving forces in the
raise awareness and promote these certificates as a
Middle East & North Africa is consumer demand
unique selling point.
for convenience. Processed seafood products are
considered a go-to food when people don’t have Consumer’s demand for a transparent production
the time to cook. Such products are used to prepare process within seafood also benefited a new product
snacks, which children and adults take to school or under Coop’s private label line Coop Origine in Italy.
work. Consumers are becoming increasingly familiar The portfolio’s unique selling point is the provision of
with such products, which are in turn becoming a information on issues such as production processes and
part of the eating culture of this region. The health safety certification: Scottish Salmon thereby became a
and wellness trend also plays a major role in the popular choice in Italy’s growing seafood market.
growth of this category. Seafood is often perceived
89
Prices have created significant instability and uncertainty

around global trade. Despite a large domestic market,
The price of processed seafood has not been regulated US producers of seafood rely heavily on access to
in some markets, such as Venezuela, so manufacturers lucrative foreign markets and have experienced
have more frequently transferred cost increases to the increasing anxiety as tariffs have created notable
end consumer. Shelf-stable seafood used to be the additional costs.
only affordable protein source for many consumers.
However, higher production costs have made such Marketing and Advertising
options unaffordable for most Venezuelan households.
Promotions and advertising remain key drivers of
Similarly, food safety concerns and the political
growth in Mexico. In-store promotions offering a better
environment in Brazil have offset potential growth due
price per volume for products with a complementary
to frugal behavior among consumers.
sauce or dressing are likely to be used by brands to
Unit prices of processed seafood have increased in attract consumers. Companies were also increasingly
South Africa due to a rise in the price of raw materials, active through digital advertising and social media
which are largely imported, and made more expensive over the review period, and are likely to continue
by the volatile local currency. Shelf-stable seafood focusing on these platforms over the forecast period.
is also dependent on fluctuating steel prices, as the Processed seafood in the UAE also grew as a result of
products are primarily sold in metal cans. promotions.
Countries across regions are moving towards the Private Label

development of sustainable seafood. Japan, one of
Private label has become a significant player in this
the world’s largest consumers of seafood has been
segment, focusing more on the premiumisation of
lagging behind Europe and North America in seafood
their brands. The share of private label is predicted
sustainability awareness, but changes have slowly been
to rise over the forecast period, with grocery retailers
taking place in advance of the Olympic and Paralympic
increasing the variety and quality of products to
Games. Both environmentally friendlier packaging
meet consumer demand for affordable products of
and increasing awareness of the logos certifying
higher quality. This is expected to influence brand
sustainability are expected to be a way forward in
manufacturers to differentiate their products in terms
Finland.
of ingredients, taste and packaging.
Flavour innovation will also encourage growth in
In Argentina, although Quickfood, controlled by Brazil’s
processed seafood. As palates become more receptive
Brf Brasil Foods, is the second largest player in the
to unique and exotic flavors, consumers in Australia
market, Brf has decided to divest itself of the company.
are being offered bolder choices to experiment with.
Brf’s decision is part of a global divestment plan to
Players in Poland recently started to develop new
focus mainly on the Brazilian and Asian markets.
flavours and packaging, especially products following
the convenience trend, such as smaller portions that Health and Wellness
enable consumers to eat on the go.
Fresh seafood also poses a threat to the growth of
Frozen salmon and shrimp sales have fallen in Egypt, processed seafood, as many consumers consider the
due to their very high prices. The products are subject latter to be unhealthy and hazardous because of the
to the highest taxes as they are considered luxury chemicals used in its processing. This will continue
items and are only available through modern trade to be the main obstacle to growth, especially in
channels. agricultural countries, where the price of fresh food is
very affordable.
In the USA, tariff discussions between the US
and China, as well as other significant Processed seafood players are expected to launch
trading new products leveraging the health and wellness
partners, trend. Innovative options with a health and wellness
positioning that explore gourmet flavors, but remain
low in sodium, calories and saturated fat, should
work well in the future.
SEAFOOD INDUSTRY
The competitive landscape of seafood is very fragmented and generics and private label accounted for 43% in 2018.
Exhibit 32 - Global Company Shares 2018 - Seafood

1 Thai Union Frozen Products PCL 1.86%
2 Nomad Foods Ltd 1.82%
3 Dongwon Group 1.50%
4 Bolton Group, The 1.18%
5 Grupo Calvo SA 0.89%
6 Connors Bros Ltd 0.85%
7 Nippon Suisan Kaisha Ltd 0.74%
8 Maruha Nichiro Corp 0.58%
9 Lur Berri Coopérative Agricole 0.58%
10 Hagoromo Foods Corp 0.54%
11 Generics 24.57%
13 Others 46%
No single company managed to gain more Loyalty towards seafood brands is rare and
than 2% value shares on a global level within many consumers decide on the basis of origin,
the seafood category. In fact, only Thai Union price, flavours and increasingly the ethical stance
Frozen Products PCL, Nomad Foods Ltd and towards sustainability and organic or more
Dongwon Group had shares above 1%, while all natural production.
other players remained of limited importance.
91
Distribution Landscape
In the Seafood sector globally, supermarkets and hypermarkets held the majority share of 57.9% among other sales
channels in 2018. The strong foothold of this channel is mainly attributed to the preference for convenience, variety and
competitive prices by consumers globally.
Supermarkets and hypermarkets also held the leading share for sales of processed seafood worldwide. However, the
channel witnessed a CAGR decline of 0.5% between 2013-18, mainly due to the growing popularity of internet retailing
as a preferred channel by consumers. Although it only had a 2.1% share of total sales by channel in 2018, internet
retailing witnessed the fastest growth, with a 10.4% CAGR between 2013-18 globally.
Exhibit 33 - Global Seafood Distribution by Channel (2012-2018)
100%
80%
60%
40%
20%
0%
2012 2013 2014 2015 2016 2017 2018
Source: Euromonitor
Convenience Stores and Forecourt Retailers Discounters International analysis from
Passport
Supermarkets/Hypermarkets Traditional Grocery Retailers
Internet Retailing Others
Supermarkets and hypermarkets led sales in the unable to compete on price with larger players, given
seafood category across all regions in 2018. This the logistical challenges in the current landscape.
channel held a dominant share of more than 50% in Large food conglomerates take advantage of
all regions barring Asia Pacific, Middle East and North economies of scale in transportation, and this trend is
Africa in 2018. expected to continue in the future.
The share of supermarkets and hypermarkets was In the UAE, discounter chains increased their share
highest in Australasia, at 79.6%, followed by North of distribution strongly over the review period. This
America (70.1%), Sub-Saharan Africa (66.2%) and was due to the rapid increase in the number of these
Europe (56.3%). The bottom three regions included outlets, with continued expansion expected over the
Latin America (55.3%), Middle East (49.7%) and lastly forecast period. The increasing number of private
Asia Pacific, with a 49.2% share in 2018. label lines offered by discounters also stimulated sales
through this distribution channel, posing a threat to
Overall, across regions globally, customers preferred
small independent grocers.
supermarkets and hypermarkets due to the availability
of a wide variety of options at competitive prices. In 2018, there was a significant increase in the number
Supermarkets and hypermarkets witnessed positive of processed seafood players entering the internet
growth across most regions over 2013-18, with North retailing space in Indonesia. For example, Fiesta by
America, Latin America and Australasia bring the Primafood International created its own website, where
exceptions. In these regions, the channel witnessed a consumers can obtain a wide range of products. Other
decline, mainly due to the some growth of discounters players have partnered with online marketplaces to
as a channel. make their products available via these portals.
Distribution is key for players in Brazil, which

successfully consolidates the leading position of
supermarkets/hypermarkets . Small local brands are
SEAFOOD INDUSTRY
Asia Pacific Focus
Internet retailing witnessed the strongest growth in the In Asia Pacific, discounters witnessed the strongest
most regions across the world, with the exception of growth over 2013-18, mainly due to price-sensitive
Asia Pacific. The growth in sales via internet retailing consumers looking for standard quality products.
was mainly due to the aggressive price points offered Generics dominated the processed seafood market

by online retailers to attract consumers. Consumers in Japan, the largest market for processed seafood in
also appreciated the ease of shopping from home at Asia in 2018.
anytime, further driving growth in this channel.
This section provides a quick snapshot of the different challenges and opportunities available within the industry and
how they are positioned across different industry stakeholders. Risks / challenges and opportunities are assessed to
see if they are positive or negative for different stakeholders in the value chain. More risks/opportunities will be added
where applicable.
Concerns about
sustainability
Rise of processed
meat substitutes
Changing lifestyle
of consumers
Rising input costs
exporter

Low _________________________> high
93
CONFIDENCE INDEX
Seafood Sector

SEAFOOD INDUSTRY
Main Challenge

Manufacturer
4 Adapting to new retail and distribution modelsa
Key Trends
Key Trends Vs Activity Seafood


Product portfolio and strategy Vs Sector Seafood

Own ecommerce 7.70%
Other 1.90%
95
41.20%
29.40%
Seafood
17.60%
11.80%
Critical Factor - Seafood

Critical factor - Seafood
0% 10% 20% 30% 40% 50% 60% 70%
Consumer attention - Seafood

Consumer attention - Seafood
Quality 35% 42%

Price 31% 42%
Brand 8% 42%
Packaging 10% 29%
Free-from 2% 33%
Vegan 0% 25%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

r ains
lse s, G
Pu
reals
C e
Pulses, Grains and Cereals - At a Glance
Middle
North Sub-Saharan
America Africa
Africa
Consumer
spending on
breads and 3.0% 2.5% 1.8% 2.4% 2.4% 2.3% 2.1%
cereals as %
of total F&B
India Dominican Egypt

South Africa
Key Growth Indonesia Russia Republic Iran
Canada Ghana
Markets Malaysia New Zealand Spain Chile Saudi Arabia
US Kenya
(2013-2018) Philippines Germany Argentina UAE
Cameroon
Thailand Brazil Turkey
Rice, pasta Rice, pasta Rice, pasta Breakfast cere- Rice, pasta
Rice, pasta &
and noodles and noodles and noodles als (55.4%) and noodles
Key Sub- Breakfast cere- noodles (67.2%)
(96.4%) (85.2%) (90.5%) Rice, pasta (85.4%)
categories* Breakfast
als (54.8%) Breakfast cere-
Breakfast cere- Breakfast cere- and noodles Dry pulses
als (32.8%)
cereals (4.6%) als (14.8%) als (9.5%) (44.6%) (14.6%)
Supermarkets/ Supermarkets/
hypermarkets hypermarkets Supermarkets/ Supermarkets/ Traditional
hypermarkets hypermarkets
(85.5%) (65.8%) hypermarkets hypermarkets grocery retail-
(39.5%) (47.9%)
Key Discounters Discounters (49.7%) (69.2%) ers (48.7%)
Traditional Traditional
Channels** grocery
(6.3%) (13.4%) Traditional
grocery re-
Traditional Supermarkets/
Traditional gro- Traditional grocery retail- grocery retail- hypermarkets
retailers tailers
cery retailers grocery stores ers (37.4%) ers (8.4%) (41.5%)
(34.3%) (44.4%)
(5.5%) (9.9%)
Fastest Internet retail-

Internet retail-
nternet retailing Internet retailing (9.1%) Internet retail- Internet retail- Internet retail-
growth ing (53.1%)
(29.4%) ing (15.4%) Convenience ing (28.6%) ing (23.6%) ing (27.3%)
channels Traditional gro-
Discounters Discounters stores and Discounters Discounters Discounters
(CAGR cery retailers
(13.4%) (7.8%) forecourt retail- (10.6%) (1.4%) (15.1%)
2013-18) (10.0%)
ers (3.6%)
Convenience
Slowest stores & Convenience Traditional gro- Traditional
Supermarkets/ Traditional gro- Traditional gro-
growth forecourt stores & cery retailers grocery retail-
hypermarkets cery retailers cery retailers
retailers forecourt retail- (-2.2%) ers (10.0%)
channels (2.4%) (1.6%) (6.8%)
(-0.3%) ers (4.8%) Convenience Convenience
(CAGR Traditional gro-
Supermarkets/
Supermarkets/ stores and fore- stores and
2013-18) cery retailers hypermarkets hypermarkets
hypermarkets hypermarkets court retailers forecourt re-
(4.7%) (2.3%) (6.9%)
(1.5%) (8.2%) (-2.1% tailers (10.1%)
PULSES, GRAINS & CEREALS

While Asia Pacific region drives value demand, the Sub-Saharan Africa region
is the most dynamic
With a global market size of US$178.1 billion in 2018, Pulses, Grains & Cereals accounted for 10.2% of the total packaged
food market, growing by a CAGR of 1.2% between 2013-2018. Nonetheless, the category is anticipated to witness
stronger growth over the forecast period with a value CAGR of 2.7% making it the second fastest growing category
after Fats & Oils.
Growth mainly stems from emerging regions, led by Sub-Saharan Africa, followed by the Middle East and North Africa

and Asia Pacific, with rising disposable incomes and growing availability and affordability of premium products.
Exhibit 34 - Pulses, Grains & Cereals value sales in 2018, 2023 & CAGR 2018-2023, US$ billion
20.6bn
-0.2% 28.8bn
20.8bn 107.9bn
0.8%
27.6bn
3.7%
90.1bn
3.8%
Europe Asia Pacific
11.0bn

North Africa
5.1% 1.1%
19.7bn 8.1bn 2.2bm
2.0%
17.9bn
Latin America
Key: Inner circles indicate the Pulses, Grains & Cereals category market size in 2018, outer circles indicate market size
in 2023. The distance between the inner and outer circles indicates the size of the absolute growth
The colour of the circles indicate the growth rate Fast Moderate Slow Static
In most developed markets, sales of cereals are at America. Higher unit prices and challenges from
saturation point. Diversifying diets and a move away the growing snacking-trend mean that breakfast
from carbohydrate-heavy foods mean there is little cereals will further impact the performance of both
room to grow. North America, following a decline regions. Breakfast cereal sales in Europe face similar
value CAGR of -1.8% between 2013 and 2018, is prospects, due to their reputation for being unhealthy
expected to decline further over the forecast period, and increasing competition from other convenient
though at a slower rate with an anticipated -0.2% options, such as breakfast bars.
value CAGR between 2018-2023.
Dynamic growth in Sub-Saharan Africa is the result
Growth is also expected to be slow in other more of consumers trading up to packaged products. The
developed regions, including Europe and Australasia fastest growth is visible where there is still room to
with value CAGRs of 0.8% and 1.1% respectively grow consumption levels, such as breakfast cereals,
over the forecast period. Breakfast cereal holds the which are still at an earlier stage of development.
largest market value share in Australasia and North Middle East and North Africa is also set to see rapid
99
growth; with breakfast cereals still niche, this in Asia-Pacific are instant noodles, increasingly
is led by growing interest in international appreciated for the convenience and offer
foods, with the large number of expats in of single-serve packs. To gain the attention
markets such as Saudi Arabia and the UAE of consumers, companies often focus on the
also boosting sales of Asian staples of rice and introduction of new flavour varieties, with
noodles. local inspirations faring very well within this
segment. In Indonesia, Indomie by Indofood
In the Latin America region, demand of Pulses,
Sukses Makmur for example launched a
Grains & Cereals was heavily impacted by rice
series of new flavours inspired by Indonesian
shortages during the review period, owing to
traditional regional dishes such as Soto
large decline in domestic crops and a lack of
Lambongan, Soto Padang, and Sambal Mate.
imports by the Government. In Venezuela, for
instance, according to customs data and trade Maggi in India introduced an even more
press, imports of bulk durum wheat were nil in diversified portfolio in terms of localization:
2018. Amritsari Achari, Mumbaiya Chatak, Super
Chennai and Bengali Jhaal are based on
Asia Pacific, the largest market for Pulses,
different regions in India, known for their
Grains & Cereals, is set to see a healthy CAGR
specific local cuisines.
of 3.7% over 2018-2023, resulting from trading
up in less-developed markets. In India, for Convenience is also increasingly paired with
example, growth will be driven primarily by ”all-natural”, “whole grain” and “free from”
the rapid switch from unpackaged foods to claims, catering to the demand of busy
packaged offerings, especially in staples like consumers, trying to retain healthy eating
rice, which are also seeing unit price increases habits or ensure certain dietary regiments.
due to the growth of smaller pack sizes. Hardly any launch illustrates this more than
Similarly, breakfast cereals, although a minor Naughty Noah’s line of instant noodles. The
element in this market, is showing rapid growth product is shelf-stable, all-natural, gluten-free,
due to being seen as quick, easy and nutritious. vegan and non-GMO and is sold in a convenient
on-the-go packaging format.
Another growing segment in many countries

Premiumisation transforms noodles Snacking trend presents a challenging
category opportunity to breakfast cereals
Premiumisation is prevailing in packaged food, with Across the Latin America, North America and
instant noodles a good demonstration of this. The Australasia regions, as well as Europe to a certain
instant noodles category has been growing steadily extent, breakfast cereal sales have suffered due to
globally, and especially in Asia Pacific. As incomes a shift in consumption habits away from breakfast
and urbanisation rise in the region, premiumisation as a main meal. Over the forecast period, growth
will continue, in response to consumer demand for of breakfast cereals will be challenged further by

value-added, convenient and enhanced taste products. innovation across snacking areas that encourage
Leading players have been launching premium on-the-go consumption. Consumer expectations
products made with better raw materials, updated are constantly evolving, demanding convenient and
packaging, and innovative flavours. For instance, in flavoursome products that do not impede a healthy
Vietnam, Masan Consumer Corp launched its Omachi lifestyle. While this has been encouraging across snack
instant noodles cup with real meat sticks in 2018, to bars, yoghurt and biscuit areas, such innovation has
improve the taste of its product and to add more been harder to replicate in breakfast cereals. That
calories and nutrients. Such products offer consumers being said, this lifestyle change among consumers
a more filling meal and present a transformation of could present a new opportunity for breakfast cereal
noodles into a meal territory, albeit with the heftier manufacturers, by shifting to advertising their products
price tag that comes with it. as indulgent snacking items that fulfil snacking needs if
eaten at other times of the day.
Rice consumption in china is set to see a
decline Health and wellness remain at the forefront
of innovation
With a value of US$33.98 billion, China accounted
As nutritional value continues to be an overriding
for almost 23% of total value consumption of rice,
priority for consumers, much of the innovation
pasta and noodles in 2018. The category’s growth
in Pulses, Grains & Cereals can be described as a
stems from demand for noodles, while demand for
revamping of traditional products to better align
rice is anticipated to decline in China, partly owing
with changing eating habits and health trends. New
the country’s slower population growth, and changing
offerings following this theme can increasingly be
eating habits. In order to keep fit, Chinese people
found, representing some of the biggest growth drivers
are trying to consume fewer carbohydrates and
for manufacturers. In the USA, the frozen aisle contains
more vegetables. Rice is also being replaced with
many great examples of this type of innovation, with
alternatives like grains and cereals, which can both
new products from B&G like riced cauliflower and
fill the stomach and offer wellbeing benefits such as
veggie spirals, which give consumers a convenient,
enhancing intestinal movements, lowering blood sugar
low-carb alternative to traditional grain rice and wheat
and cholesterol, to name a few.
pasta. Furthermore, as demand for protein continues
“No artificial” claims on the rise to rise, a growing number of manufacturers are adding
this nutrient to traditionally low-protein products.
With health high on the consumer agenda, the clean Barilla, for example, launched its ProteinPLUS line of
label trend will be one of the major factors contributing pasta. Similarly, within breakfast cereals, nutritional
to ethical label growth worldwide. In North America, value is the core of new product development. For
“no artificial flavours” is the most prevalent claim example, Australian manufacturer MixMyMuesli,
across packaged food in percentage terms. Clean launched its Healthy Start muesli breakfast range,
label claims are on the rise, affecting the rice, pasta with no added sugar, syrup or oil in addition to a high
and noodles segment too with Naughty Noah’s in the protein muesli range, while Sanitarium launched a
USA launching a line of instant noodles with all-natural, cholesterol-lowering Weet-Bix, by using plant sterols to
gluten-free, vegan and non-GMO ramen. Manufacturers reduce cholesterol levels by up to 9% in four weeks.
globally, are eager to illustrate to consumers not only
the clean label attributes of their portfolios, but also Packaging innovation
to be seen to be embracing the underlying principles Packaging innovation to appeal to the young
of clean labelling, i.e. transparency, robustness, generation was another major trend, with the adoption
clarity and relevancy. For many manufacturers, clean of bright, bold colours and attractive pictures
labels represent a useful vehicle through which to especially within breakfast cereals. On the other hand,
drive this message home. In 2018, Kellogg (a leading with rising consumer demand for convenience and
manufacturer of breakfast cereals) has taken the lead practicality; staple food manufacturers, including
among other multinational brands by removing all rice, pasta and noodles, are responding with several
artificial colours and flavours from the entirety of its launches of smaller portion size packs and easy-open
product portfolio. pouch packages. Mars launched Uncle Ben’s Express
in Brazil – regular rice in small-portion (220g pouches)
that is ready in two minutes.
101
As Pulses, Grains & Cereals market is fragmented, as the category comprises of a large number of different product
segments, with few players actually present in all of them.
Exhibit 35 - Global Company Shares 2018 - Pulses, Grains & Cereals
1 Kellogg Co 4.21%
2 Ting Hsin International Group 2.95%
3 Nissin Foods Holdings Co Ltd 2.45%
4 JA Group (Japan Agricultural Cooperatives) 2.17%
5 General Mills Inc 1.70%
6 PepsiCo Inc 1.66%
7 Ebro Foods SA 1.55%
8 Cereal Partners Worldwide SA 1.55%
9 Toyo Suisan Kaisha Ltd 1.52%
10 Indofood Sukses Makmur Tbk PT 1.47%
12 Others 69.05%
Apart from a 10% share for private label benefits of regular cereals. The Chinese giant
products, the category is led by Kellogg Co, Ting Hsin International Group hold a second
as the companies leading position within the position with a global value share of 3% in
consolidated breakfast cereals market ensured 2018. The company is benefiting from the
a 4% share in 2018. The company however lost popularity of its’ Master Kong brand of instant
shares, as consumers in North America, Europe noodles in combination with the sheer size of
and Australasia started to question the health the Chinese market.

Supermarkets and hypermarkets dominate global distribution
Globally, the leading sales channel for Pulses, Grains & Cereals is supermarkets/hypermarkets, with a share of 49.3% in
2018, followed by traditional grocery retailers with a share of 28.8%. Supermarkets/hypermarkets lead due to the wide
selection of products on offer, and one- stop shopping convenience at the lowest prices.
Supermarkets/hypermarkets lead in all regions except Sub-Saharan Africa, where they rank second to traditional
grocery retailers. Their strongest positions are in Australasia, North America and Europe. Networks here are very well
developed and grocery chains compete strongly on price and range. Strong private label collections also underpin

this dominance, ranging from basic value ranges for bulk essentials, to premium chilled noodle and pasta dishes at
competitive prices.
Exhibit 36 - Global Pulses, Grains & Cereals value sales split by retail channels, 2012-2018
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2012 2013 2014 2015 2016 2017 2018

Traditional grocery retailers growing at a faster rate than modern grocery retailers
Time-pressed consumers are increasingly prioritising convenience. Small format retailers, like small independent
grocers, have grown faster than larger supermarkets (with global value CAGRs of 5.4% and 2.8% respectively between
2013-2018) by offering proximity and time savings. Global urbanisation trends, have also helped drive growth for these
smaller outlets.
Internet retailing is poised for substantial growth, with the Middle East and Asia Pacific
chartering a course for e-commerce
Internet retailing was the most dynamic channel over the review period with a global value CAGR of 26.8% over
2013-2018, led by the Middle East and North Africa with 59.1% and Asia Pacific with 29.4%. Despite sales being small
in absolute terms, internet retailing has emerged as a tectonic shift, driven by younger consumers who increasingly
rely on e-commerce. As consumers gravitate to e-commerce for routine weekly purchases, trip frequency to brick and
mortar outlets will decline and opportunities for unplanned sales will become more limited; thus posing a significant
threat for supermarket/hypermarket channel growth and development.
103
Key opportunities lie in navigating consumer demand for lower carb,

convenient and sustainable foods
Challenges
Crop vulnerability to
weather conditions
Price volatility due to

climate conditions and
dependence on high
number of small farms
Move away from wheat-

based products in
developed markets due
to health concerns
Some market
saturation for basic
rice, pasta, noodles
and breakfast cereals in
developed markets
Rising health awareness

and shift away
from carbohydrate
consumption
Increased penetration
of private label, offering
high quality at lower
prices
Price pressure on
small players including
manufacturers and
traditional grocery
retailers, from large-
scale manufacturers and
modern retailing
exporter

Low _________________________> high
Opportunities

Ethical farming methods
gain a competitive
advantage
Shift from loose/bulk

products to packaged
and branded items,
especially in developing
markets
Need for convenience across

developed markets presents
opportunities for quick
cook, ready prepared, exotic
flavours and health-positioned
products
Growing demand for

breakfast cereals as a
snacking alternative, due to
changing lifestyles
Growth in alternative starches

and protein-centric ‘carbs’,
like lentil or quinoa-based
pastas and rice, and oat-
based cereals
Rising opportunity for

alternative carbs and
gluten-free options to
attract a health-conscious
demographic
Sustainability and
mounting focus on clean
label concerns
exporter

Low _________________________> high
105
CONFIDENCE INDEX
Pulses, Grains and Cereals Sector

Main Challenge

Manufacturer
4 Technology/Automation integrations
Key Trends
Key Trends Vs Activity Pulses, Grains & Cereals


Product portfolio and strategy Vs Sector Pulses, Grains & Cereals

Other 1.80%
107
38.20%
21.80%
Pulses, Grains & Cereals
18.80%
21.20%
Critical Factor - Pulses, Grains & Cereals

Critical factor - Pulses, Grains & Cereals
0% 10% 20% 30% 40% 50% 60% 70%
Consumer attention - Consumer

Pulses, Grains &- Cereals
attention Pulses, Grains & Cereals
Quality 48% 29%

Price 44% 30%
Packaging 15% 37%
Brand 20% 31%
Free-from 16% 22%
Vegan 6% 13%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Oils
Fats
Fats and Oils - At a Glance
Middle
North Sub-Saharan
America Africa
Africa
Consumer
spending on
breads and 1.8% 0.6% 0.9% 1.3% 2.1% 0.5% 1.2%
cereals as %
of total F&B
India Argentina Egypt

Key Growth Bangladesh UK Colombia Algeria South Africa
New Zealand
Markets Malaysia Germany Brazil Iran Canada Kenya
Australia
(2013-2018) Japan France Mexico Morocco Tanzania
Pakistan Peru Turkey
Sunflower
Palm Oil Sunflower Olive Oil
Olive Oil Olive Oil Soy Oil (38.4%) Oil (36.5%)
(20.4%) Oil (44.7%) (37.6%)
Key Sub- (55.9%) (46.2%) Corn Oil (13.7%) Palm Oil
Soy Oil (20.0%) Olive Oil Soy Oil (26.6%)
categories* Rapeseed
Rapeseed Sunflower Sunflower
(23.8%) Rapeseed
(24.6%)
Oil (17.8%) Oil (34.5%) Oil (11.3%) Olive Oil
Oil (13.6%) Corn Oil (10%) Oil (14.9%)
(13.8%)
Supermarkets/
Hypermarkets Supermarkets/ Traditional Supermarkets/
Grocery Supermarkets/ grocery
(59.4%) Hypermarkets grocery hypermarkets
Retailers hypermarkets retailers
Key Traditional (48.2%) retailers (57.5%) (79.8%)
(60.8%) (85.1%) (50.3%)
Channels** Supermarkets/ Discounters
grocery Traditional Supermarkets/ Traditional
upermarkets/
retailers (15.4%) grocery hypermarkets grocery
Hypermarkets (10.2%) hypermarkets
Discounters retailers (39.1%) (33.5%) retailers (6.2%)
(34.8%) (41.3%)
(13.2%)
Fastest Internet (22.7%) Internet

Internet (15.9%) Internet (13.6%)
Convenience Internet Internet (131.4%)
growth Traditional Internet (17.4%) Convenience
Stores & (20.9%) (48.2%) Traditional
channels Grocery Discounters Stores &
Forecourt Discounters Discounters Grocery
(CAGR Retailers (12.9%) Forecourt
Retailers (14.1%) (2.1%) Retailers
2013-18) (16.5%) Retailers (3.4%)
(16.0%) (10.6%)
Convenience
Supermarkets/
Slowest Convenience Traditional Convenience Stores &
Convenience Traditional Hypermarkets
growth Stores & Grocery Stores & Forecourt
Stores & Grocery (7.6%)
Forecourt Retailers Forecourt Retailers
channels Forecourt Retailers (7.9%) Convenience
Retailers (1.6%) (-0.5%) Retailers (6.4%) (-0.9%)
(CAGR Retailers (3.3%)
Supermarkets/
Stores &
2013-18) Discounters hypermarkets Forecourt
hypermarkets hypermarkets grocery grocery
(3.8%) (8.3%) Retailers
(3.2%) (2.8%) retailers (7.2%) retailers
(7.9%)
(-0.3%)

Notes: *Market share of overall Fats & Oils market in 2018
** Market channel share of overall Fats & Oils market in 2018
FATS & OILS

The total global market value for Fats & Oils stood at US$95.7 billion in 2018, up by a CAGR of 5.7% between 2013-2018.

It is forecast to reach US$126.4 billion by 2023. India and China alone were responsible for approximately 52% of global
value in 2018.
Exhibit 37 - Fats & Oils Value Sales in 2018, 2023 & CAGR 2018-2023, US$ billion
3.9bn
-0.5% 15.0bn
4.0bn 790bn
1.1%
14.2bn
8.3%
52.9bn
3.4%
Europe Asia Pacific
9.8bn

North Africa
3.4% 2.3%
10.7bn 4.6bn 517.0bm
2.4%
9.5bn
Latin America
Key: Inner circles indicate the Fats & Oils market size in 2018, outer circles indicate market size in 2023
The colour of the circles indicate the growth rate Fast Moderate Slow Static
Asia Pacific was the fastest growing region during tapping into this trend by widening their variety of
2013-2018, recording a CAGR of 7.4%, driven by the offerings in the country, and new players are entering
popularity of palm and soy oil, which combined the market, e.g. Rajasthan Olive Cultivation Ltd.
accounted for more than a 40% value share of
While Europe is the second largest region for Fats &
Fats & Oils sales in the region. Rising incidences of
Oils, mature European markets shows slow forecast
conditions such as obesity and high cholesterol are
growth to 2023, with a value CAGR of 1.1% resulting
increasingly leading consumers to choose healthier
from concerns about health and wellness, which
and more nutritious oils, such as soy and olive oils,
continue to shape consumption patterns. Growing
which are rich in omega 3 and vitamin E and are
demand for healthier diets is driving sales of olive
cholesterol free.
oil in the region, with consumers trading up, either
In India, the largest market for Fats & Oils, urban from other Fats & Oils to olive oil or within olive oil to
consumers are increasingly becoming health aware higher value offerings, for example, (super) premium
and slowly shifting to healthier Edible oil categories, products or organic products as an alternative to
including olive oil and rapeseed oil. Manufacturers are conventionally grown olive trees.
111
Exhibit 38 - Fats & Oils Regional Value Sales by Product Type in 2018
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2012 2013 2014 2015 2016 2017 2018
Olive Oil Corn Oil Palm Oil Rapeseed Oil Soy Oil Sunflower Oil Other Edible Oil
In the Middle East and North Africa, sunflower oil has on prices that could arise for American consumers
the biggest share, however corn oil and olive oil are are mounting. Theoretically, should prices of imported
also expected to grow. Consumption in this region olive oil increase, American consumers may shift
is price sensitive, and the region’s growth is volume more aggressively to the growing supply of domestic
driven, which presents opportunities for frying oils with products, further transforming the category.
healthier and better propositions.
On a global level, health and wellness was therefore
In Latin America, while soy oil will continue to dominate probably the most important factor impacting new
value sales in 2023, olive oil will be the most dynamic product developments within Fats & Oils, with important
category with a value CAGR of 4.4% between 2018- launches within olive oil dominating many markets.
2023. With lower inflation rates, and recovering In India, where olive oil is still a niche product, Borges
purchasing power among low- and middle-income introduced several new products, while Turkey saw the
groups, olive oil is one of the first products they are introduction of an increasing number of smaller, organic
choosing to move back to. super-premium ranges.
North American region is forecast to register a slight However, as olive oil is often seen as a luxury, not
drop in value over the 2018-2023 period (-0.5%), owing affordable by many consumers in developing countries,
to greater uncertainty regarding trade tariffs. Olive oil, innovations within blended oils often try to fill the gap.
which had the largest value share of Fats & Oils sales in NatureFresh Acti Heart, a blend of canola oil and rice
the region, at more than 37% in 2018, is predominantly bran oil for example was introduced in 2018 by Cargill
imported from Mediterranean countries. In July 2018, India to offers price conscious consumers in India a
certain US trade policies began to pose their first direct cheap alternative to olive oil.
threat to the stability of prices within the industry as the
US International Trade Commission approved a new set
of tariffs on imports. While still far too early to ascertain
any definitive fallout, concerns over the potential impact
FATS & OILS

Healthy types of Fats & Oils prevail share expected to reach 22.2% by 2023, up from 21.2%

in 2018. Manufacturers in Asia Pacific have recently
The rising incidence of conditions like obesity and attempted to capitalise on this trend via TV advertising
high cholesterol are increasingly leading consumers to campaigns and new product launches. For instance, in
choose healthier and more nutritious foods. Consumers 2018 Cargill launched Gemini Rice Bran Oil to appeal
globally are shifting towards healthier alternatives. to health-conscious consumers. However, it will take
Vegetable oils, which are rich in unsaturated fatty acids, some time before other Fats & Oils gain mainstream
are perceived as reducing the risk of cardiovascular popularity.
diseases. Among vegetable oils, sunflower oil will
maintain the largest value share in 2023. In China, Growing need for credible and clean labels
rice oil is another healthy oil that is gaining increasing
In the EU, protected designation of origin (PDO) and
attention as it is believed to have a good balance of
protected geographical indication (PGI) labels are
fatty acids while retaining the optimum nutrition from
used for olive oil. GMO-free, kosher and Halal-certified
rice. Arawana is a pioneer brand of rice oil. In the Middle
oils are available in many countries, with GMO content
East region, the shift towards healthier alternatives is
particularly sensitive in Europe and Asia Pacific. GMO-
also growing, with coconut oil gaining popularity, not
free leads the clean label charge in China, with sales
only for cooking purposes but also for use uses, such as
largely derived from a few key vegetable and seed oil
skin and hair care.
manufacturers that support GMO-free agriculture. In
Palm oil benefits from lower price point an effort to address transparency and sustainability
growing requirements by customers and governments
Globally, palm oil is anticipated to gain a larger value alike, Nestlé and Unilever undertook the bold step of
share over the forecast period, reaching 15.6% in 2023, becoming the first global food manufacturers to publish
up from 13.4% in 2018 and recording a value CAGR of their entire palm oil supply chains, in 2018 to. PepsiCo
8.9%. Palm oil remains among the cheapest options has since responded by pledging to publish a list of its
within Fats & Oils and is widely used by foodservice palm oil suppliers.
operators. Palm oil is also seeing a rise in manufacturer
activity to entice further demand. For instance, in India, Premiumisation supports value growth
the Malaysian Palm Oil Council signed a memorandum
Fats & Oils is one of the categories in which consumers
of understanding with the Mumbai Dabbawala
are willing to pay more for smaller quantities of
Association in 2017, to raise awareness of palm oil
high-quality, premium offerings. This, combined with
among Indian consumers. Together with its affordability,
the latest health and wellness trend, offered ample
such campaigns should continue to support growth in
opportunities for value growth. Furthermore, most Fats
palm oil consumption over the forecast period.
& Oils will also probably benefit from the development
Other Fats & Oils gain momentum as of more sophisticated packaging (e.g. dark/smoked
companies introduce new products glass in olive oil, which is already widespread in Italy),
smaller formats or more convenient closures and
Thanks to rising health awareness, other Fats & Oils, pourers.
such as canola, groundnut, coconut, rice bran and
sesame oil, are steadily gaining popularity with its value
113
While private label still holds a leading position within Fats & Oils, its’ 9% share shows limited success in this category.
Exhibit 39 - Global Company Shares 2018 Cereals – Fats & Oils
1 Wilmar International Ltd 6.94%
China National Cereals, Oils & Foodstuffs Imp &

2 2.27%
Exp Corp (COFCO)
3 Bunge Ltd 1.92%
4 Adani Group 1.81%
5 Deoleo SA 1.65%
6 Cargill Inc 1.57%
7 Emami Ltd 1.41%
8 Ruchi Group 1.35%
9 Savola Group 1.16%
10 Shandong Luhua Group Co Ltd 1.09%
12 Others 70.30%
Wilmar International Ltd is the dominant player within the edible

oil market, due to leading positions in many large countries in
Asia-Pacific, such as China, India, Indonesia and Vietnam. The
sheer size of these markets in combination with high per capita
oil consumption supported the strong stance of the company.
Nevertheless, innovative new players and growing demand for
premium products such as high-end olive oil, nut and seed oils, such
as macadamia and walnut or grapeseed oil put pressure on the
company, who’s share dropped from 10% in 2013 to 7% in 2018.
FATS & OILS

Traditional grocery retailers lead with a strong position in Asia Pacific and

the Middle East and North Africa regions
Globally, the leading sales channel for Fats & Oils is traditional grocery retailers, which accounted for 48.8% of value
sales in 2018, up from 39.7% in 2013. The traditional grocery retail channel continues to grow in Asia Pacific, Middle
East and North Africa, as well as Sub-Saharan Africa. In Asia Pacific, traditional retailers account for the largest value
share of Fats & Oils sales among global regions, while in Sub-Saharan Africa traditional grocery retailers increased
their market share from 46.9% in 2013 to 50.3% in 2018, benefitting from rapid urbanisation and slower development of
modern retail infrastructure.
Exhibit 40 - Global Fats & Oils Value Sales Split by Retail Channels, 2013-2018
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2012 2013 2014 2015 2016 2017 2018

Supermarkets/hypermarkets hold the second largest Discounters’ market share in Fats & Oils is also growing
value share globally, at 42% in 2018, with the channel rapidly in regions like Middle East and North Africa
leading sales in Australasia, Europe, Latin America and as well as Australasia, benefiting from proximity and
North America. The growing popularity of private label value offerings, as well as the establishment and rapid
brands within Fats & Oils is further strengthening the expansion of leading discounters, such as Aldi and Lidl.
position of supermarkets/hypermarkets in developed
Retail consolidation in Latin America is apparent in
regions. High quality, price competitive private label
the expansion of modern retail, especially in large
oil ranges are now present not only in discounters but
markets such as Brazil and Argentina. Small local
also in leading chained retailers in developed markets,
stores struggle to compete with the economies of
placing them in a strong position.
scale offered by modern retailers. However, their
Internet retailing, despite being a niche channel for Fats high visibility in residential areas ensures they offer
& Oils (1.3% value share in 2018), is growing rapidly, convenience to price-sensitive consumers.
supported by the established and developed markets
of Europe and North America. Clearly convenience is
the major factor driving growth of the channel.
115
The main challenges in the Fats & Oils industry are in the very first step of
the supply chain
Challenges
High cost of ethical

farming
Weather volatility impact

on consistent quality of
oil crops
High cost of investment

in modernisation and
scaling up
Dependence on narrow
geographic footprints of
most oil crops
Overcoming consumer
concerns over ethics in
palm oil production as
well as trust in quality
controls
Rising competition
from private label
manufacturers, both at
the value and premium
ends of the market
Trade agreements and

rising import tariffs
exporter

Low _________________________> high
FATS & OILS
Healthy, high quality and ethical oils present opportunities

Opportunities
Emphasising sustainable
and ethical farming
methods offers greater
sales potential
Oils that are successfully

positioned as healthy
show strong growth
potential
Clear and credible

labelling to address
issues of health, quality
and ethics
Globalisation and
widening consumer
palates are encouraging
use beyond traditional oils
Higher sales mark ups

through premiumisation
and value-added oils in
developed countries
Increasing demand
for exotic oils such as
coconut oil
Rising consumer
awareness of the
benefits of quality/
healthy oils
exporter

Low _________________________> high
117
CONFIDENCE INDEX
Fats and Oils Sector

FATS & OILS

Main Challenge
Manufacturer
Key Trends
Key Trends Vs Activity Fats & Oils


Product portfolio and strategy Vs Sector Fats & Oils

Other 1.90%
119
35.2%
29.6%
Fats & Oils
18.5%
16.7%
Critical Factor - Fats & Oils

Critical factor - Fats & Oils
0% 10% 20% 30% 40% 50% 60% 70%
Consumer attention - Fats & Oils

Consumer attention - Fats & Oils
Price 47% 25%

Quality 36% 36%
Brand 13% 36%
Packaging 9% 38%
Free-from 15% 25%
Vegan 4% 24%
0% 10% 20% 30% 40% 50% 60% 70% 80%

ients
gred
n g In
ooki
C
u stry
In d
121
Cooking Ingredients Industry at a Glance
Middle
North Sub-Saharan
America Africa
Africa
Consumer
spending
on Cooking
Ingredients
1.8% 3.8% 3.1% 2.0% 1.8% 4.4% 1.6%
as % of total
F&B in 2018
South Africa
Key growth India France Argentina Saudi Arabia Ghana
New Zealand USA
markets China Italy Brazil Iran Democratic
Australia Canada
(2013-2018) Vietnam Germany Mexico Egypt Republic of
Congo
Sauces, Sauces, Sauces, Sauces, Sauces, Sauces,

Sauces, Dress-
Dressings and Dressings and Dressings and Dressings and Dressings and Dressings and
ings and Con-
Condiments Condiments Condiments Condiments Condiments Condiments
Key sub- diments 87.5%
73.1% 67.2% 78.9% 64.7% 73.2% 88.3%
categories Sweet Spreads
Sweet Spreads Sweet Spreads Sweet Spreads Sweet Spreads Soup 13.5% Sweet Spreads
in 2018 7.2%
16.3% 21.6% 15.1% 31.6% Sweet Spreads 7.8%
Soup 5.4%
Soup 10.6% Soup 11.2% Soup 6.1% Soup 3.7% 13.3% Soup 3.8%
Supermarkets/
Supermarkets/ hypermarkets Supermarkets/ Traditional Supermarkets/ Traditional
Hypermarkets 59.5% hypermarkets Grocery Stores hypermarkets Grocery
Key Supermarkets/
52.1% Discounters 54.1% 44.7% 75.8% Stores 65.7%
channels hypermarkets
Traditional 17.6% Traditional Supermarkets/ Traditional Supermarkets/
in 2018 83.3%
Grocery Traditional Grocery Stores hypermarkets Grocery Stores hypermarkets
Retailers 23.9% Grocery Stores 33.8% 41.7% 5.3% 28.0%
11.8%
Internet Retail- Internet Retail- Internet Retail-

Discounters Internet Retail-
Fastest ing 10.1% ing 31.8% ing 36.0%
12.3% ing 44.6%
Internet Retail- Convenience Convenience Internet Retail- Convenience
growth Internet Discounters
ing 11.0% Stores and Stores and ing 20.5% Stores and
channels Retailing 11.8% 10.2%
Discounters Forecourt Re- Forecourt Re- Discounters Forecourt Re-
(CAGR Traditional Supermarkets/
6.6% tailers 3.6% tailers 12.6% 3.5% tailers 12.0%
2013-18) Grocery Hypermarkets
Discounters Discounters Discounters
Retailers 8.9% 8.3%
3.5% 10.4% 11.9%
Convenience Traditional Gro-

Stores and cery Retailers
Supermarkets/ Convenience
Slowest Forecourt Traditional Supermarkets/ -0.6% Traditional
Hypermarkets Stores and
Retailers -5.0% Grocery Hypermarkets Convenience Grocery Re-
growth 5.4% Forecourt Re-
Supermarkets/ Retailers 0.1% 8.8% Stores and tailers 10.4%
channels Convenience tailers 7.4%
Hypermarkets Supermarkets/ Traditional Forecourt Supermar-
(CAGR Stores and Traditional Gro-
1.9% Hypermarkets Grocery Retailers 1.4% kets/Hyper-
2013-18) Forecourt Re- cery Retailers
Traditional 2.6% Retailers 9.4% Supermarkets/ markets 10.4%
tailers 7.2% 7.7%
Grocery Hypermarkets
Retailers 2.5% 1.6%

COOKING INGREDIENTS
Cooking Ingredients is among the smallest categories in packaged food, with a world total market size of
US$172.96 billion in 2018, up by a CAGR of 1.6% between 2013-2018. However, the category has an optimistic
prospect over the forecast period, as value growth is anticipated to accelerate to reach a CAGR of 2.3%
between 2018-2023.
Growth is largely stemming from emerging regions, where there is a growing ability to afford more premium

options that also offer better health benefits. Meanwhile, the growing popularity of international cuisines,
rising disposable incomes and increasingly busy lifestyles are some of the major factors positively impacting
the growth of Cooking Ingredients globally.
Exhibit 41 - Cooking Ingredients by Region (2018, US$ billion)
41.5bn
1.2% 49.9bn
39.1bn 63.7bn
1.3%
46.7bn
3.3%
54.1bn
3.2%
Europe Asia Pacific
8.5bn

North Africa
4.2% 0.6%
17.4bn 6.2bn 3.4bm
3.5%
14.7bn
Latin America
Key: Inner circles indicate the Cooking Ingredients market size in 2018, outer circles indicate market size in 2023
Colour of the circles indicate the growth rate Fast Moderate Slow Static
Key growth markets boom in e-commerce, which is making such products

available in small cities and towns, and thus helping the
Globally, Asia-Pacific was the largest market for category’s rapid expansion.
Cooking Ingredients in 2018. The region’s young
generation is increasingly trying international cuisines, On the other hand, Latin America and Europe were the
such as Mexican food, the preparation of which relies slowest growing regions between 2013-2018. Europe
on extensive use of Sauces, Dressings and Condiments. saw only marginal growth over 2013-2018, with a
This resulted in sales of these products rising value CAGR of 0.3%. This reflected mature position of
remarkably. Cooking Ingredients in these markets, especially the
UK, France and Germany. That being said, sales are
Asia Pacific is also among the fastest growing regions, poised to recover and grow by 1.3% over 2018-2023,
despite being the largest market in 2018. The sheer size as consumers migrate towards premium offerings.
of the Asia Pacific region makes it impossible to ignore, Meanwhile, Latin America is forecast to see the most
but the growth story goes far beyond mere size. dynamic growth over 2018-2023 with a value CAGR
Cooking Ingredients is particularly benefiting from the
123
of 3.5% compared to a CAGR of -0.4% between 2013- Dressings and Condiments continue to grow, being the
2018, with sales boosted as the Brazilian economy second fastest growth category after sweet spreads.
continues to recover. The category plays a key role in supplying suitable
Cooking Ingredients for increasingly busy consumers
North America saw only marginal growth over 2013-
who generally like to cook and appreciate convenient
2018, as a result of product maturity in the US. Value
solutions to enhance the flavour of their meals. In
growth has also been depressed by growing interest in
Germany, table sauces, such as barbecue sauces (due
private label products.
to the increasing popularity of barbecuing), oyster
The Middle East region is growing from a small base, sauces, soy sauces and chili sauces posted robust
and remains among the smallest Cooking Ingredients current value growth, with many benefiting from a
markets globally. Growth of Cooking Ingredients in the certain trend towards more-exotic dishes.
Middle East region is benefiting from premiumisation
In Latin America, Brazil and Mexico are the two
and a shift towards healthier food alternatives,
largest markets for Cooking Ingredients, with Sauces,
including home cooking, which is largely driving
Dressings and Condiments again accounting for the
demand for Sauces, Dressing and Condiments as well
largest market share in value terms. Brazil is not only
as Soup.
the largest market in Latin America, with a 39.0% value
Key growth sub-categories share, but is also among the third fastest growing
markets in the region, after Argentina and Mexico.
Given the rising popularity of Westernisation and
Western food in India and China, sales of Sauces, Sweet Spreads (particularly nut and seed variants)
Dressings and Condiments have risen and led solid recorded the fastest value CAGR in Mexico, at 3.9%,
growth in Asia Pacific in 2018. India’s dry sauces benefiting from their health-associated attributes,
remained the largest category within Sauces, Dressings specifically as a source of protein and energy. In Brazil
and Condiments and continued to post strong double- too, Sweet Spreads growth was second only to Sauces,
digit growth in value terms in 2018. Together with Dressings and Condiments with a value CAGR of 3.0%
herbs and spices, dry sauces are a key ingredient in between 2013-2018, driven by improved packaging
Indian cuisine, and therefore used on a daily basis in and marketing strategies by manufacturers which were
most households in the country. Another factor that in line with consumer preferences for either smaller
bolstered the development of both categories was packaging with low disbursement, or larger packaging
rising demand for ready-to-use blended products that at competitive unit prices.
make it easier to prepare more complicated dishes, Despite growth in the Middle East and North Africa
such as biryani, at home. In China, pasta sauces and as a whole, the value of Cooking Ingredients in
salad dressings contributed the most to the regions’ Saudi Arabia witnessed a slowing trend in 2018,
growth due to the increasing need for a simple and which is anticipated to continue to dip in 2019/2020
convenient cooking approach. before recovering slightly after that up to 2023. The
While China is responsible for a 36.6% of value share of Kingdom is undergoing many changes, including the
Asia Pacific’s Cooking Ingredients market, the majority introduction of VAT and expat levy-taxes, in addition to
of growth in the region stems from India, with a sharp the removal of government subsidies on staple foods.
value CAGR over the review period of 12.4%. A combination of these factors is influencing consumer
purchasing power and forcing a shift towards lower
In Europe, despite the apparent priced items. Iran, is among the largest markets in the
maturity of the market Middle East region, with Sweet Spreads representing
in Germany and both the largest market share and fastest growth
France, Sauces, category, with a value CAGR of 8.3% over 2013-2018.
In 2018, sales growth recovered slightly in the US,

with a small uptick registered relative to the decline
witnessed in 2017. Much of this improved performance
came as a result of strong growth in health and
wellness areas. The US is the largest market for Soup
globally, by a significant margin. The category was also
the most dynamic between 2017/2018, recording value
growth of 1.4%.
Higher unit prices in Nigeria, caused by the

depreciation of the local currency, led to a decline
in value sales over the review period, with Cooking
Ingredients recording a CAGR of -3.7% over 2013-2018.
COOKING INGREDIENTS
South Africa, the second largest market in the region, dips by Wholly Guacamole- a ready-to-eat format of
recorded strong value growth of 3.2% over the review avocados without any artificial ingredients.
period, due to the rising cost of raw materials, growing
Dr. Oetker’s new Funfoods Zero0Fat Dressings offer
fuel prices and a 1% increase in Value Added Tax (VAT),
a healthy alternative of typical Western dressings,
the first increase since 1994.
such as 1000 Island dressing or Honey-Mustard to
One of the main drivers behind growth in Cooking consumers in India. The company is thereby taking

Ingredients in the Middle East and Africa is demand advantage of growing demand for convenient ready-
for convenience. As lifestyles become increasingly made products with reduced fat and calorie contents
fast-paced, consumers have less time to prepare meals. and a growing appreciation of Western flavours.
This has led to consumers seeking meal solutions
that are quick, convenient, nutritious and easy to
prepare. Moreover, urbanisation and an increase in
the number of single households also contributed to
demand for convenience, with Cooking Ingredients What to invest in?
such cooking and pasta sauces requiring less effort to
prepare. However, alongside this, there is also much
more awareness of the importance of healthy eating,
Turning waste-like
encouraging consumers to replace eating-out with
home-prepared meals. material, such as fruit and
Product development vegetable peels, into real high
Innovative developments within the category focused quality food.
mainly on health and wellness, often in combination
with convenience and in Asian markets often
influenced by Westernization. The premium brand
Claudia Lauener Hofer, Sustainability
Shinho, from Yantai Shinho Weidamei Food Co, for
example introduced a soy sauce with limited and high-
Director, Frutco AG (Switzerland)
end ingredients named “Followed the Law of Nature”
in China, while the US saw Bertolli’s launch of an entire
organic pasta sauce portfolio and “Simply Avocado”
125
New flavour evolutions

While the Westernisation trend is not new; it is still growing and
impacting consumption preferences in regions such as Asia Pacific,
Middle East and Africa, resulting in diversification in flavour offerings
in cooking sauces as well as soups.
Meanwhile, in developed markets such as Europe and the US,

ethnic and foreign sauces are seen as fashionable. The ongoing
popularisation of ethnic products, such as fish sauce, oyster sauce
and soy sauce are driven by the success of Asian foodservice
establishments. In the US, for example, Kraft Heinz partnered with
restaurant group Momofuku to launch a new line of Korean chilli
sauce called Ssäm Sauce. Soup flavours are also evolving beyond
mainstream ethnic, from Thai to Persian.
Premiumisation gains ground New regulations come into being

The Packaged Food market, generally including
Across developed markets, maturity is one of the
Cooking Ingredients, witnessed a wave of new
major obstacles to growth, forcing manufacturers
regulations in 2018. In Italy, new labelling regulations
to develop new products, which offer additional
came into force on 5th April 2018, requiring all
consumer benefits in terms of health, taste or
packaged food to carry the name and address of the
convenience. In this regard, using locally sourced
manufacturer or packaging plant. This, in a country
or organic ingredients has been one of the
like Italy, benefits local manufacturers of cooking
strategies most applied by manufacturers to
sauces, bearing in mind that Italian consumers favour
position their products in the premium segment,
and look for tomato-based products that are made
thereby meeting consumer demand for quality.
with local ingredients. Meanwhile in Canada, pressure
Natural and free-from, are is mounting over health-related issues, forcing clear
front-pack labelling highlighting products that are high
seeing growing demand, in saturated fat, sugar and sodium.
aligning with the increasing
Similarly, governments in the Middle East and Africa
healthy living trend saw changes relating to Value Added Tax (VAT),
The increasing global buzz about eating healthy specifically the Gulf States and South Africa. . The
food, supported by the media and official Gulf States imposed VAT on most commodities and
authorities, has led to high consumer awareness services, including Cooking Ingredients, for the first
of additives and ingredients that could have a time at the beginning of 2018. In Saudi Arabia and the
negative impact on health. This led manufacturers UAE, VAT of close to 5% saw consumers respond to
such as Unilever to reformulate existing brands, rising prices by seeking out the best value for money
such as Knorr, using natural ingredients and and cutting back on non-essential areas and products.
removing additives. Meanwhile, South African consumers saw VAT increase
by 1%, the first rise since 1994.
Expansion through acquisition

In the US, Campbell Soup Co. completed its acquisition of Pacific Foods of Oregon Inc. at the end of 2017, for US$700
million. Pacific Foods is a manufacturer of mainly organic soups and broths. Campbell, a company not especially
known for natural and organic products, seems to have made a wise decision by incorporating an organic brand into its
portfolio. As organic products continue to thrive in the US, it makes sense that Campbell would try to take advantage
of that growth.
In Italy, Consorzio Casalasco del Pomodoro, a leading Italian company in the production and processing of industrial
tomatoes, acquired a majority share of brand De Rica from Generale Conserve. Aiming to become the Italian reference
company in the canned tomato sector.
COOKING INGREDIENTS
Private label dominates cooking ingredients in 2018, accounting for 12% of overall sales within the category.
Exhibit 42 - Global Company Shares 2018 – Cooking Ingredients

2 Kraft Heinz Co 4.46% The cost of input/
3 Nestlé SA 2.77%
raw material is the
4 McCormick & Co Inc 2.67%
number one issue across
5 Campbell Soup Co 2.63%
“Ingredients”, “Meat &
6 Ferrero & related parties 1.54%
7 Ajinomoto Co Inc 1.33%

Poultry”, and “Seafood”
8 Kikkoman Corp 1.01% categories.
9 JM Smucker Co, The 0.98%
10 Kewpie Corp 0.93%

12 Others 63.75%
The Cooking Ingredients industry is dominated by internationally renowned brands, offered by global
giants, such as Unilever Group, Kraft Heinz Co and Nestlé SA. All three companies have broad and
constantly updated product portfolios, usually in line with the latest trends and developments. Knorr is
Unilever’s biggest brand and has a large range of sauces, dressings and condiments as well as soups. The
brand is positioned within typical convenience categories and one of Unilever’s Sustainable Living brands,
meaning that much innovation is focused on natural and ethical products. Knorr is thereby benefiting from
two global trends. The brand is also benefiting from local innovation and incorporation of regional tastes,
preferences and ingredients. A similar strategy is followed by Kraft Heinz, which is specifically strong within
sauces, dressing and condiments and Nestlé with its’ Maggi brand.
127
Convenience and value are two of the most important factors that guide consumer decision-making regarding
channels. As a result, supermarkets/hypermarkets, which offer a wide selection of products and one-stop shopping
convenience at the lowest prices, remain the largest channels for Cooking Ingredients globally, with a value share of
58.9% in 2018.
Exhibit 43 - Global Cooking Ingredients Distribution by Channel (2012-2018)
100%
90%
80%

70%
60%
50%
40%
30%
20%
10%
0%
2018 2017 2016 2015 2014 2013 2012

Discounters Traditional Grocery Retailers Hypermarkets Internet Retailing Others
Forecourt Retailers
Supermarkets/hypermarkets led sales of Cooking no exception. Every day, more and more consumers
Ingredients across the majority of regions in 2018, are shopping for their groceries online, with this trend
followed by traditional grocery retailers. Value share expected to accelerate in the coming years. Internet
was highest in Australasia (83.3%), followed by North retailing is therefore, among the fastest growing
America (75.8%), Europe (59.5%), Latin America channels globally, cannibalising sales from store-based
(54.1%), Asia Pacific (52.1%) and lastly Middle East and retailers, and forcing supermarkets/hypermarkets to
Africa (44.7%). find ways to adapt to the dramatic rise of e-commerce.
As a result, click-and-collect models that blend online
The only exception was the Sub-Saharan Africa region,
orders with in-store pick-up have grown rapidly as a
where traditional grocery retailers accounted for a
convenient alternative to home delivery.
larger value share than supermarkets/hypermarkets, at
65.7% compared to 28.0%. The success of discounters and convenience stores
also showcases how consumer preferences are
Proximity is crucial for independent small grocers,
shifting in favour of smaller format stores that
which play a vital role in many emerging markets,
compete primarily on the basis of proximity. Quick,
as many shoppers lack the means of transportation
fill-in shopping trips save consumers time in their
to reach modern shopping centres. This proximity
increasingly busy routines.
provides unparalleled convenience, a factor that is
becoming increasingly important with the growth of Leading regional grocery retailers include Seven &
urbanisation. The global urban population grew by Holdings Co. Ltd in Asia Pacific, Woolworths Ltd in
nearly 2.0% over 2013-2018 while the rural population Australia and Wesfarmers Ltd in Australasia, Schwarz
stagnated. Beteiligroup Gmbh and Aldi Group in Europe, Walmart
in North and Latin America, as well as Shoprite
Despite a majority value share, supermarkets/
Holdings Ltd and Carrefour SA in the Middle East and
hypermarkets lost share to non-grocery retailers
Africa.
over the review period, specifically online channels.
Frequent modern shoppers have internet access, credit
cards and bank accounts and are gradually shifting and
favouring the convenience of online shopping.
E-commerce is having a strong impact on nearly all

retail areas, with Cooking Ingredients fast becoming
COOKING INGREDIENTS
By 2030 70% of the global household will live in nonetheless addressing the rising nutritious demands.
urban areas, while 20% of it will be single household. Consequently, the changing lifestyle is undoubtedly
Population change will lead to a shift in consumers’ presenting a number of challenges and opportunities
lifestyle; which is anticipated to further fuel demand for all stakeholders of Cooking Ingredients.
for convenient, easy-to-prepare and cook meals,

Increasing raw
material costs
High prices remain

a barrier
Changing lifestyles
fundamentally change
eating habits
Rising health-
awareness/anti-sugar
movement
Shift towards
premiumisation and
nutritional content
Growing popularity of
international cuisines
Adapting to shift to
e-commerce
exporter

Low _________________________> high
129
CONFIDENCE INDEX
Ingredients Sector

COOKING INGREDIENTS
Main Challenge

2 Growing sustainable production pressures
Manufacturer
Growing competition from Private Label products
3
Key Trends
Key Trends Vs Activity Ingredients


Product portfolio and strategy Vs Sector Ingredients

Other 4.30%
131
35.1%
24.6%
Ingredients
18.4%
21.9%
Critical Factor - Ingredients

Critical factor - Ingredients
0% 10% 20% 30% 40% 50% 60% 70%
Consumer attention - Ingredients

Consumer attention - Ingredients
Quality 46% 30%

Price 36% 32%
Packaging 22% 34%
Brand 24% 31%
Free-from 20% 21%
Vegan 10% 13%
0% 10% 20% 30% 40% 50% 60% 70% 80%

k s an d
S n ac
ion er y,
n fe ct us tr y
Co E at In d
d y - to -
Re a
Confectionery, Snacks and Ready-to-Eat
Industry-At a Glance
Middle
North Sub-Saharan
America Africa
Africa
Consumer
spending on
this category 4.6% 13.3% 10.8% 7.6% 6.3% 14.6% 2.4%
as % of
total F&B
Papua New Syria Sudan

Key growth Nepal Iceland Guatemala
Guinea Qatar Eritrea
Bangladesh Albania Bolivia
markets for Fiji Bahrain USA Gambia
India Lithuania Cuba
this category Cambodia
New Caledonia
Romania Haiti
United Arab Canada Burundi
(2013-2018) French Poly- Emirates Sao Tomé e
Laos Estonia Panama
nesia Oman Príncipe
Confectionery Confectionery
Confectionery Confectionery
(33.8%) (34.0%)
(34.4%) (41.2%)
Savoury Snacks Confectionery Savoury Snacks Savoury Snacks Savoury Snacks
Savoury Snacks Sweet Bis-
Key sub- (34.0%) (46.4%) (27.1%) (25.5%) (39.9%)
(27.6%) cuits, Snack
categories* Confection-
Ice Cream and
Savoury Snacks Sweet Biscuits, Sweet Biscuits, Confectionery
Bars and
ery (31.5%) (21.9%) Snack Bars and Snack Bars and (29.5%)
Frozen Des- Fruit Snacks
Fruit Snacks Fruit Snacks
serts (19.5%) (24.6%)
(25.1%) (20.6%)
Supermarkets /
Supermarkets/ Supermarkets / Traditional Gro- Traditional Gro- Traditional
Hypermarkets
Hypermarkets Hypermarkets cery Retailers cery Retailers Supermarkets / Grocery Re-
(65.7%)
Key (39.0%) (47.1%) (56.4%) (48.4%) Hypermarkets tailers (47.8%)
Convenience
channels** Traditional Gro-
Stores and
Traditional Gro- Supermarkets / Supermarkets / (51.6%) Supermarkets
cery Retailers cery Retailers Hypermarkets Hypermarkets Others (22.9%) / Hypermar-
Forecourt Re-
(32.1%) (19.0%) (27.6%) (37.7%) kets (33.9%)
tailers (14.0%)
Fastest Internet Retail-

Internet Retail- Internet Retail- Internet Retail- ing (22.6%) Internet Retail- Internet Retail- Internet Retail-
growth
ing (34.2%) ing (14.0%) ing (9.5%) Convenience ing (35.4%) ing (20.5%) ing (23.0%)
channels
Discounters Discounters Discounters Stores and Discounters Discounters Discounters
(CAGR (11.7%) (8.9%) (4.3%) Forecourt Re- (11.4%) (5.2%) (13.6%)
2013-18) tailers (9.5%)
Traditional Gro- Convenience

Slowest Others (4.7%) cery Retailers Stores and
Others (2.1%) Others (0.8%) Traditional Gro- Others (6.6%)
growth Convenience (1.7%) Forecourt Re-
Supermarkets Traditional Gro- cery Retailers Supermarkets /
chan-nels Stores and Supermarkets / tailers (10.5%)
/ Hypermar- cery Retailers (1.0%) Hypermarkets
(CAGR Forecourt Re- Hypermarkets Supermarkets
kets (3.2%) (1.8%) Others (1.6%) (7.6%)
2013-18) tailers (7.3%) (2.1%) / Hypermar-
Others (2.4%) kets (10.7%)
CONFECTIONERY, SNACKS & READY-TO-EAT INDUSTRY

Confectionery, Snacks & Ready-to-eat is among the largest categories within Packaged Food, reaching a global
market size of US$548.8 billion in 2018, with a CAGR of 1.5% for the 2013 to 2018 period. It is expected to reach
US$601.3 billion by 2023, with a CAGR of 2.4% over 2018 to 2023. Europe led sales of Confectionery, Snacks &
Ready-to-eat products, with a 30.4% market share in 2018, with Asia Pacific ranking second with 25.3%, and North
America with 24.4% in third place.
Exhibit 44 - Confectionery, Snacks and Ready-to-Eat sales in 2018, 2023 and & CAGR 2018-2023 US$ billion
142.2bn
1.7% 174.7bn
130.8bn 161.2bn
1.4%
163.3bn
3.5%
135.7bn
34.5bn
3.3%

29.2bn
11.2bn 13.8bn
3.7% 2.4%
63.8bn 9.3bn 12.2bn
2.5%
56.3bn
Key: Inner circles indicate the Confectionery, Snacks and Ready-to-Eat category market size in 2018, outer circles
indicate market size in 2023. The distance between the inner and outer circles indicates the size of the absolute growth
The Colour of the circles indicate the growth rate Fast Moderate Slow Static
The fastest growing region is Sub-Saharan Africa, value for the region.
with a CAGR of 3.7% expected for the 2018 to 2023
Latin-American countries are reducing their intake
period, to reach a market size of US$11,166 million. The
of products in this category. An increase in health
slowest growing region is Europe, with a CAGR of 1.4%
awareness and an economic recession in several
expected for the same period, rising from US$163,254
countries in the region are driving consumers further
million in 2018, to US$174,733 million in 2023.
away from snacks, and shifting their consumption
Being the smallest of all regions in market size, Sub- towards cheaper and healthier alternatives. With the
Saharan Africa’s demand for Ice Cream and Frozen alarming rise of obesity in the region, Latin American
Desserts, as well as Savoury Snacks, is growing at a governments are urging populations to embrace
rapid rate. Urbanisation as well as exposure to new healthier lifestyles, exercise regularly, and consume
products is driving growth of this category, with the more fruits and vegetables, and fewer products with
Sub-Saharan African population benefiting from rising high sugar and calorie contents. These trends are
disposable incomes. South Africa is by far the largest expected to continue their effect on the market in
consumer in the region, and with the increase in VAT the forecast period, as consumers shift to maintaining
of 1% as well as inflation (around 4% in 2018), prices healthier lifestyles.
of Confectionery, Snacks & Ready-to-eat products
In most developed countries, sales of Confectionery,
increased by approximately 7%, driving up market
135
Snacks & Ready-to-eat products are either stagnating content is enjoying massive growth and there are no
or growing at a very slow rate. Europeans have been signs of this slowing down any time soon. In particular,
adopting healthier lifestyles for a few years now, Graze’s Veggie Protein, made of chickpeas and
dragging the already mature category into a declining edamame, is one of its most successful variants.
growth cycle. Only healthier savoury snack options,
In North America, the category shows signs of
low in sugar, with a low caloric count, are on the rise,
slowing down, with a CAGR of 1.7% for the 2018 to
and often, even these are being replaced with fruit
2023 period. Savoury Snacks is the fastest growing
and vegetables. Consumers will not compromise on
category, as it is the one offering the most variety of
taste and still want a choice between healthy products
‘healthier’ alternatives, using unrefined carbohydrates
and the occasional indulgence. Unique tastes and
and no added sugar, yet still coming up with a tasty
adventurous flavours help to create a whole eating
product. North American consumers, especially the
experience; as a result, shelves are getting busy with
younger demographic, are shifting from regular meals
Mexican flavours, spicy tastes and Asian influences
to meal/snack mixes. As local consumers are leading
that are expected to continue flourishing in the coming
increasingly busy lifestyles, the demand for on-the-
years. The most successful categories in Savoury
go consumption and convenience, in terms of time,
Snacks in 2018 were those that, in addition to the
energy and skills needed for food preparation, is on the
snacking trend, were also able to tap into the health
rise. This, combined with rising health consciousness,
and wellness trend. For example, Graze is skyrocketing
has led to a rapidly rising focus on healthy snacks that
in the UK. The use of natural ingredients and
are convenient to consume.
claims around the high natural
plant-based protein Australasia is also witnessing declining growth
for the category, with the exception of Ice
Cream and Frozen Desserts, and Savoury
Snacks. Cobranding strategies have been
at the forefront of product and marketing
innovations in the Ice Cream category. In
2016, Peters collaborated with Nestlé and
introduced a range of ice
cream flavours featuring
iconic sweets and
chocolates. The success
of which has encouraged
high-equity brands to
continuously collaborate
with each other in Australia.
But the health and wellness
trend is also impacting the
category, and free from
products are becoming more
mainstream. In early 2018, Over
the Moo expanded its gluten-free
range with two new flavours: Dream
Team Cookies N Cream and Mint to
Be, thus encouraging smaller players to
enter the market with only healthy, free
from alternatives.
Sales in Middle East and North Africa are

led by Egypt and Saudi Arabia, the two
largest markets for this category. Sweet
Biscuits are widely consumed in Egypt,
and double-digit growth over the 2013
to 2018 period is expected to continue,
making companies such as Nestle Egypt
and PepsiCo Egypt consider adding
products in this category to their
portfolios. However, it seems that
Sweet Biscuits is the only category
within Confectionery, Snacks &
Ready-to-Eat products that is growing in the country. “natural” appeal in 2017. Similarly, the leader Mondelez
All other sub-categories are showing a hard decline in re-vamped its Maynards Bassetts brand by switching
sales due to the devaluation of the Egyptian pound, to natural flavours and colours and pledging to reduce
making imported raw materials costlier to local salt and saturated fat by 10% and increasing portion
producers and imported finished products expensive control options by 25% by 2020.
for the average consumer. Saudi Arabia, on the other
As for Middle Eastern and North African countries,
hand, shows strong market growth. Ice Cream &
most have a large variety of traditional goods in this
Frozen Desserts are growing at double digit rates, with
category. However, Snacks & Ready-to-Eat products
companies such as Baskin Robins and Marble Slabs
are not traditional to the region, making them a very
opening their doors in the Kingdom. Most categories in
attractive market for many foreign brands. Being a
Snacks are suffering after the introduction of 5% VAT,
niche market, fuelled by an interest in international
with ice cream the only category that continues to
goods and brands, these categories are expected to
grow unabated.
continue growing at a moderate to fast rate in this
Asia Pacific is a very large market, with countries such region.
as China and Japan leading that growth, as the two
Innovation within the confectionary, snacks and ready-
largest consumers of Confectionery, Snacks & Ready-
to-eat segment is key at this stage, as the industry
to-Eat products in the region. China’s consumption
is specifically sensitive to anti-sugar movements
of Savoury Snacks and Sweet Biscuits, Snack Bars
and trends towards clean eating and healthy and

and Fruit Snacks showed strong growth in the review
wholesome food choices in many countries.
period of 2013 to 2018. The emergence of yam chips
brought new vigour to the category, shifting the Many companies all over the world therefore choose
unhealthy image fried snacks have in the country, to to re-position their portfolios as a healthier variant in
a more positive one, showing that healthy products comparison to former snacking options. PepsiCo for
can provide tasty flavours. In Japan, another negative example revamped an established product portfolio
concept is being turned to positive, impacting sales under a new line: Frito-Lay’s new Simply Line offers
of snacks. Although snacking used to be considered customers organic and non-GMO versions of favourites
a bad habit, leading to weight gain and unhealthy like Dorito’s and Cheetos in the US. The company also
behaviour, modern consumers now have a positive introduced healthier products, such as the new multi-
perspective on it. Due to the aggressive promotion grain variant with low salt under the Kurkure brand in
of healthy snacking by snack manufacturers in Japan, India. Other companies choose to acquire established
consumers are aware that being hungry can cause smaller brand with a healthy portfolio.
blood sugar levels to soar. As a result, a positive
Another interesting development within snacks all over
performance was seen in most Sweet Biscuits, Snacks
the world are options based on supposedly healthier
Bars and Fruits Snacks categories.
ingredients, such as snacks based on vegetables, sweet
China and India impact the Asian Pacific region potatoes or chickpeas. According to PepsiCo this
strongly, China with premiumisation, and India with an trend might soon incorporate new protein sources. The
average increase in prices of 6% to 7%. Considering company posted an innovation request on a business
they are the two largest markets in the region, followed community platform for plant-, mycoprotein- (funghi)
by Japan and Indonesia, double-digit growth in the and insect-based proteins to incorporate into their
Indian market, and the positive growth in all sub products.
categories in China, drove growth of the Asia Pacific
Another field for innovation are product types
market.
advertised as a special treat and premium indulgence.
Price increases in Brazil are saving the region from an This includes the incorporation of new flavours, many
even stronger decline in the market for Confectionery, of which are adult-only or inspired by flavours from
Snacks & Ready-to-eat products in Latin America. around the world and offered as special editions. In
Being by far the largest market, the price increases Germany, Aldi launched a limited edition of Länder-
gave the country, and region, a positive value growth chips, offering varieties and ingredients from around
rate despite declining in volume terms. the world, while Ludwig Schokolade introduced
alcohol-infused chocolate specialties under its’ Trumpf
The UK is the largest market in Europe, followed by
brand in the context of the 2018 World Cup.
Germany, Russia and France. The UK market has,
however, declined over the period between 2013
and 2018 due to growing health awareness and the
demonisation of sugar. In return, industry players have
started offering low and no-sugar alternatives. For
example, sugar confectionery manufacturer Tangerine
reformulated its Wham and Fruit Salad chews to
include real fruit juice to give its products a more
137
Innovation in flavours Dazs shook the market with its Spirits line of ice
cream, with flavours such as Vodka Key Lime Pie,
The demand for something different is on the rise, Whisky Chocolate Truffle and Rum Vanilla Caramel
and with a category as mature as Confectionery, Blondie. Even though this trend is relatively new,
Snacks & Ready-to-eat, premiumisation and it is expected to continue growing at a rapid rate,
differentiation are the way to grow. Consumers especially as these products have been traditionally
worldwide are demanding new, bold flavours, and targeted children.
different presentations, as the maturity of the
category, even with the varieties it already has to Healthy, free-from and ingredient
offer, falls short of satisfying that demand. Several swaps are on the rise, driving
companies have found that testing new mixes of
flavours, ingredients, and packaging is a potential demand for label transparency
growth opportunity, and a way to improve sales The mindful eating trend that started a few years
globally. For example, in 2018, Lay’s introduced its ago in developed countries has now hit all countries
“Tastes of America” flavours, going from Thai Sweet globally. Free-from, and other health related
Chilli to Chesapeake Bay Crab Spice. In 2019, African labelling now appear on most snacks worldwide,
ingredients are expected to make their way into the from ingredient swaps to the more typical Non-
snacking industry, with bold spices and superfoods, GMO, to satisfy the health concerns of mindful
such as harissa, dukkah and tiger nuts. eaters. Consumers are watching what they eat,
counting calories, reducing sodium and sugar intake,
Adultification and demanding to see these health facts on the
From wine and ham flavoured chips, to rosé sorbet, packaging of products they purchase. This trend
adult only flavours are making their way into the not only affect snacks, but all products under the
Confectionery, Snacks & Ready-to-eat industry. Confectionery, Snacks & Ready-to-eat category.
Patatas Torres, a Spanish chips producer, introduced Ice cream alternatives such as frozen yoghurt,
a sparkling wine flavoured potato chip, while Haagen dairy-free and gluten-free are making their way into
supermarket freezers, giving consumers healthier
options using ingredient swaps. Confectionery is also
being affected, with dark chocolate on the rise due
to its health benefits.

PepsiCo and Mondelez International Inc retained neck-to-neck positions, with both accounting for 7% of global value
sales of Confectionary, Snacks and Ready-to-Eat.
Exhibit 45 - G
lobal Company Shares 2018 –
Confectionery, Snacks & Ready-to-Eat
1 PepsiCo Inc 7.09%

Unlike any other
2 Mondelez International Inc 6.99%
category, the main
3 Mars Inc 4.86%
challenge for “Confectionery,
5 Nestlé SA 3.56%
Snacks & Ready-to-Eat” is
6 Ferrero & related parties 2.63% the higher regulatory control
7 Hershey Co, The 1.84% & production costs. All other
8 Kellogg Co 1.39% sectors are more impacted

9 General Mills Inc 1.29%
by volatile commodity
10 Perfetti Van Melle Group 1.10%
prices.
12 Others 57.35% Voice of the Industry
The whole category remained in the hands of

multinationals and saw a comparatively low share of
private label sales, which accounted for merely 8% in
2018. Mondelez and PepsiCo manage to incorporate
local tastes and preferences into their portfolios,
while usually being seen as qualitatively superior to
local brands. Even in Europe where private label is
often seen as the superior choice, consumers often
prefer branded products in this category. Pressure
from private label therefore remains limited. A threat
for both could be the growing demand for healthier
options and a trend towards limited premium
indulgence. Smaller local players could thereby take
shares form PepsiCo, while brands like Lindt and
Ferrero already started to take shares from Mondelez
within chocolate confectionary.
139
Supermarkets and hypermarkets are the leading channel for Confectionery, Snacks & Ready-to-eat products,
with more than 43.7% of global sales of the category in 2018. Offering more shelf space, supermarkets and
hypermarkets offer a wider variety to choose from than traditional grocery retailers, or convenience stores.
Furthermore, consumers tend to shop for all their groceries in one place, making it the first choice for most
purchases in the Food & Beverage category.
Exhibit 46 - Global Confectionery, Snacks & Ready-to-Eat by Channel (2012-2018)
100%
90%
80%

70%
60%
50%
40%
30%
20%
10%
0%
2018 2017 2016 2015 2014 2013 2012

Discounters Traditional Grocery Retailers Hypermarkets Internet Retailing Others
Forecourt Retailers
Supermarkets and hypermarkets tend to lead they offer a wide variety of products and brands, and
sales of Confectionery, Snacks & Ready-to-eat in competitive prices to dominate the market.
developed markets. The highest participation for this
Although supermarkets and hypermarket dominate
channel was in Australasia, with 65.7% of category
sales of Confectionery, Snacks & Ready-to-eat
sales, followed by North America and Europe, where
globally, this channel is also the most mature, with
it represented 51.6% and 47.1% of category sales
a CAGR of only 3.7% over the 2013-2018 period.
respectively. It also led sales in Asia Pacific, with
In developed countries, the markets are saturated
39%, followed closely by traditional grocery stores
with different supermarket and hypermarket chains
which had a 32.1% share of the market.
competing on price, with no further room to grow.
In developing markets, category sales were led by The key for this channel to maintain its growth is to
traditional grocery retailers. This channel represented penetrate emerging countries and take advantage of
56.4% of sales in Latin America, followed by the higher rates of urbanisation in large cities and fast-
Middle East and North Africa, with 48.4%, and Sub- growing towns.
Saharan Africa, with 47.8%.
The fastest growing channel globally is internet
Supermarkets and hypermarkets rely strongly on retailing, albeit from a very small base. Even though
urbanization urbanisation to thrive. In emerging it only represents 2.7% of category sales globally, this
developing countries, most of the population category’s CAGR for the review period was 22.5%.
remains rural, giving traditional grocery retailers an With more and more stores entering this channel
advantage over their larger competitors. Consumers every year and constant advances in technology, it
cannot afford to travel to the nearest city to is the most promising channel for investment in the
purchase in supermarkets and hypermarkets, and the coming years.
latter cannot grow in rural areas, as the population is
more scattered.
In developed countries, however, supermarkets and

hypermarkets are the first choice for consumers, as

This section will provide a quick snapshot of the different challenges and opportunities in the industry and how
they are positioned across different industry stakeholders. Risks/challenges and opportunities are assessed to see
if they are positive or negative for different stakeholders in the value chain.
Challenges
Increasing cost of
ingredients
Increase in minimum
salary in many
developing countries

Saturated mature
market for
Confectionery, Snacks
& Ready-to-eat in
developed markets
Increase or
introduction of VAT in
several coun-tries
Price pressure on
traditional grocery
retailers from
supermarkets/
hypermarkets and dis-
counters
Price pressure on
small manufacturers
from large-scale
manufacturers
Health trends leading

consumers away from
sugar, sodium and
carbohydrates
exporter

Low _________________________> high
141
Opportunities
Growth of internet
retailing
Innovation in flavour
trends
Growth of alternatives
for healthy swaps
Increased international
trade as consumers
demand more variety
and brands
exporter

Low _________________________> high
CONFIDENCE INDEX
Confectionery, Snacks, Ready -to-Eat

143
Main Challenge
Manufacturer
Key Trends
Key Trends Vs Activity Confectionery, Snacks & Ready-to-Eat


Product portfolio and strategy Vs Sector Confectionery, Snacks & Ready-to-Eat

Other 3.40%
36.8%
Confectionery, Snacks 27.6

& Ready-to-Eat
17.2%
18.4%
Critical Factor - Confectionery, Snacks & Ready-to-Eat

Critical factor - Confectionery, Snacks & Ready-to-Eat
0% 10% 20% 30% 40% 50% 60% 70%
Consumer attention - Confectionery, Snacks & Ready-to-Eat

Consumer attention - Confectionery, Snacks & Ready-to-Eat
Quality 48% 39%

Price 44% 35%
Brand 22% 49%
Packaging 21% 46%
Free-from 9% 31%
Vegan 4% 21%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
145
Appendices
CATEGORY bottled water is also excluded. retail locations and bulk water
Carbonates are an aggregation delivered direct to a consumer’s
DEFINITIONS of cola carbonates and non-cola home is included. Bulk water
carbonates, whether regular sold to institutions (offices,
or low calorie. Euromonitor schools etc.) remains excluded.
International includes both
RTD Coffee
Beverages
naturally and artificially-
sweetened carbonates. Includes packaged ready-to-drink
coffee, consumed either hot or
Juice cold, made using a base of either
Hot Drinks
This category covers all still brewed coffee or coffee extract.
This is the aggregation of Coffee, packaged juice obtained Excludes all coffee flavoured
Tea, and Other Hot Drinks. from fruits or vegetables milk drinks that primarily target
This is the aggregation of Coffee, by mechanical processes, children, or where coffee is one
Tea, and Other Hot Drinks: reconstituted or fresh, often of a number of flavours within the
including pulp or fruit/vegetable brand range. Leading brands in
Coffee puree. All unpackaged juices off-trade volume include Georgia,
This is the aggregation of fresh are excluded. Only still drinks Nescafé and Suntory Boss.
coffee and instant coffee. Please are included here. Carbonated
varieties are included non-cola RTD Tea
note that foodservice sales of
coffee are volumes sold to the carbonates. Juice-flavoured milk This category includes all
on-trade (foodservice) sector and drinks and fruit shakes which are packaged products based on
not those sold to the consumer. primarily milk are excluded–these brewed tea or tea extract. May
are instead tracked in Packaged be sweetened or unsweetened,
Tea Foods Dairy. However, if the carbonated or still, with a
This is the aggregation of Black juice component is greater, the wide variety of different
Tea, Fruit/Herbal Tea, Green Tea, product is to be excluded from flavourings. May contain juice.
Instant Tea, and Other Tea. Packaged Foods Dairy coverage
Concentrates
and tracked under the relevant
Other Hot Drinks category (based on % juice This is the aggregation of
This is the aggregation of content) within Soft Drinks juice. liquid concentrates and
Flavoured Powder Drinks and This sector is the aggregation of powder concentrates.
Other Plant-based Powder 100% juice, nectars (25-99% juice
Energy Drinks
Drinks. Products can be served content), juice drinks (up to 24%
hot or cold, and can be mixed juice content), and coconut & These are functional drinks
with water, milk, or other liquids. other plant waters. designed to boost energy levels.
Bottled, ready-to-drink flavoured Often lightly carbonated, these
milk drinks are NOT included Bottled Water contain high levels of caffeine
here and are included in Passport and a number of added water-
This category is the aggregation
Packaged Food. soluble vitamins, most often a
of still bottled water (spring,
selection of B vitamins including
Soft Drinks mineral & purified), carbonated
niacin, pantothenic acid, vitamin
bottled water (spring, mineral
This is the aggregation of the B6, and vitamin B12. Ingredients
& purified), flavoured bottled
following categories; Carbonates; can also include amino acids such
water and functional bottled
Fruit/vegetable juice; Bottled as taurine and glucuronolactone,
water. Bulk bottled water is
water; Functional drinks; as well as herbal products such
split out separately. It is defined
Concentrates; RTD tea; RTD as guarana and ginseng. Can
as packaged drinking water –
coffee and Asian speciality drinks. be carbonated or still. Leading
purified, spring or mineral – that
brands in off-trade volume
is packaged in a container of 8
Carbonates include Red Bull, Monster and
litres or larger. The bulk bottled
Sweetened, non-alcoholic drinks RockStar. Glucose-based energy
water data types apply to Still
containing carbon dioxide are beverages such as Lucozade
Bottled Water and Carbonated
included here. All carbonated Energy are included here.
Bottled Water but do not apply
products containing fruit juice
to functional or flavoured bottled Sports Drinks
(“sparkling juices”) are included
water. Bulk water is classified
here, unless they are tea-based The choice of sports drink usually
according to the new Bulk retail
(these are included in carbonated depends on the provision of
volume and Bulk retail value
RTD tea) or carbonated Energy fluids, carbohydrates or both.
data type regardless of channel
drinks, which are included in Included into this subsector
of sale: bulk water sold via
Energy Drinks. Carbonated are isotonic, hypotonic and
01
APPENDICES
Meat and
hypertonic sports drinks. Isotonic less than 3% dairy and remain on
are products that replace lost the shelves for up to 9 months.
Poul try
body fluids, electrolytes (sodium, All nut or pulse-based products,
potassium and chlorides) and such as peanut milk, almond
glucose in similar concentrations juice, or soy drinks are tracked
to existing body fluid without in Non-Dairy Milk alternatives
causing either swelling or in Passport Packaged Food. The Meat and Poultry category
shrinkage of cells. These is an aggregation of Processed
products usually contain about meat and Meat Substitutes:
5-8% carbohydrate and are
intended to be consumed during
Dairy Processed Meat
This is the aggregation of shelf
exercise and/or heat exposure.
The Dairy category is an stable meat, chilled processed
Hypotonic this product is a
aggregation of Butter and meat and frozen processed meat.
weaker solution than your body
fluid. These drinks contain less Margarine; Cheese; Drinking Meat Substitutes
carbohydrate and therefore have Milk Products; Yoghurt and Sour
lower osmolality (fewer dissolved Milk Products and Other Dairy:
stable meat substitutes, chilled
particles than blood). These
Butter and Margarine meat substitutes and frozen
drinks help the body to speed
This is the aggregation of meat substitutes, as well as free
up water absorption and are
butter, cooking fats and from meat soy-based ready
best used when you need urgent
margarine and spreads. meals and other ready meals.
fluid replacement, as in after
exercise. These drinks are not
Cheese
Seafood
the best for energy replacement.
Hypertonic - this drink is a This is the aggregation of
stronger solution than your body processed and unprocessed
fluid. These drinks are designed cheese. Note: Non-dairy
cheese substitutes are The Seafood category is
to replace and maintain energy the aggregation of shelf
levels during exercise of at least included in cheese, either as
spreadable or unspreadable. stable seafood, chilled
one hour. They are absorbed processed seafood and
slowly and therefore are not Drinking Milk Products frozen processed seafood.
appropriate for fluid replacement.
This is the aggregation of fresh/
Leading brands in off-trade
pasteurised milk, long-life/
volume include Gatorade,
Powerade and Aquarius.
UHT milk, goat milk, flavoured
milk drinks, non-dairy milk
Pulses, Grains
and Cereals
Asian Speciality Drinks alternatives, powder milk and
This category includes all flavoured powder milk drinks.
traditional Asian drinks not Yoghurt and Sour Milk Products
included in RTD tea or juice The Pulses, Grains & Cereals
This is the aggregation of
drinks, including products such as category is an aggregation
yoghurt and sour milk drinks
Bandung (rose syrup with milk), of Breakfast Cereals and
which include kefir, lassi, as well
bird’s nest, tamarind juice, ginger, Rice, Pasta and Noodles:
as butter milk and whey drinks.
lemongrass, roselle, zalaka,
jelly drinks including grass jelly Breakfast Cereals
Other Dairy
(cincau), sugar cane, and vinegar This is the aggregation of ready-
This is the aggregation
drinks. Lactic acid drinks, such as to-eat (RTE) and hot cereals.
of chilled and shelf stable
Calpis, are included here. Drinks
desserts, chilled snacks, Hot Cereals
containing a limited amount of
coffee whiteners, condensed/
yogurt (generally 3% or less) Includes porridge and instant hot
evaporated milk, cream, and
such as Bikkle, are included cereals e.g. oat, wheat, rice, etc.
fromage frais and quark.
here, though drinking yogurts Instant hot cereals are defined by
such as Yakult are excluded. the fact that they can be made in
While both products are highly a dish with added water or milk
popular in markets like Japan, and can be microwaved. Porridge
drinking yogurts will contain is generally made by using an oat
mostly yogurt with a very short based cereal cooked in milk or
shelf life (two weeks or less), water. Only products to eat are
while yogurt drinks will contain included. Hot cereals beverages
147
Appendices
Confectionery,
are excluded. Leading global Soy Oil
brands include Quaker Oatmeal Oils which contains
(PepsiCo), Quaker Avena
Snacks aand
over 50% of soy oil.
(PepsiCo), Granvita (Productos
Vida), Nestum (Cereal Partners). Sunflower Oil
RTE Cereals
Oils which contain at least
50% sunflower oil.
Ready-to-Eat
Ready To Eat Cereals are the
aggregation of children’s and Other Edible Oil
The Confectionery, Snacks and
family breakfast cereals This includes vegetable and Ready-to-Eat category is an
seed oil such as coconut oil, aggregation of Confectionery;
Rice, Pasta and Noodles
grapeseed oil, groundnut oil, Ice Cream and Frozen
This is the aggregation of rice, sesame oil and walnut oil, as well Desserts; Savoury Snacks
noodles and pasta. Includes: as blended oils which contain and Sweet Biscuits, Snack
Pre-packaged noodles. Excludes: less than 50% of any single Bars and Fruit Snacks:
Any noodles, pasta or rice bought type of oils broken down into
loose, bulk and/or unpackaged. the researched oil categories. Confectionery
Excludes: Any noodle-based
ready meals, which would be
chocolate confectionery, sugar
Cooking
tracked under ready meals.
confectionery and gum. Note:
Retail sales measurements are
Fats and Oils Ingredients confined to packaged sales.

However, exceptions are made
to seasonal chocolate, where
The Cooking Ingredients category unpackaged/artisanal sales are
The Fats & Oils category is an
is an aggregation of Sauces, included. Pick ‘n’ mix sales are
aggregation of Olive Oil; Corn Oil;
Dressings and Condiments; also included. Finally sales from
Palm Oil; Rapeseed Oil; Soy Oil;
Soup and Sweet Spreads: chocolatiers, typically displayed
Sunflower Oil; Other Edible Oil:
loose and later packed (usually
Olive Oil Sauces, Dressings in boxes) are also included.
and Condiments
All varieties of packaged Ice Cream and Frozen Desserts
fluid/liquid olive oil, including
tomato pastes and purees, This is the aggregation of all sales
virgin, extra virgin, “green”
bouillon/stock cubes, herbs and of ice cream and frozen desserts
olive oil etc. Olive oil residue is
spices, monosodium glutamate
excluded. Leading global brands Savoury Snacks
(MSG), table sauces, pasta
include Carbonell (Sos Arana
sauces, cooking sauces, dry This is the aggregation of fruit
Alimentación), Bertolli (Unilever),
sauces, ketchup, mayonnaise, snacks, chips/crisps, extruded
Puget (Unilever), Komili
mustard, oyster sauces, snacks, tortilla/corn chips,
(Unilever), Filippo Berio (SALOV),
salad dressings, dips, pickled popcorn, pretzels, nuts and other
Carapelli (Carapelli Firenze SpA).
products, and other sauces, sweet and savoury snacks
Corn Oil dressings and condiments.
Sweet Biscuits, Snack
For product category definitions Soup Bars and Fruit Snacks
please refer to the definitions This is the aggregation of
section (can be found under biscuits and snack bars.
stable, dehydrated, instant,
the “Help” section on Passport)
chilled and frozen soup.
for the respective systems:
Packaged Food, Fresh Food, Soft Sweet Spreads
Drinks and Alcoholic Drinks.
This is the aggregation of jams
Palm Oil and preserves, honey, chocolate
spreads, nut based spreads,
Oils which contains over
and yeast based spreads.
50% of palm oil.
Rapeseed Oil
Oils which contains over 50%
of rapeseed oil. This includes
both rapeseed and canola oil.
Regional Definitions
REGIONAL DEFINITIONS
World
Asia Pacific Middle East and North Africa
Australasia North America

Europe Sub-Saharan Africa
Latin America
Asia Pacific Europe

Afghanistan Mongolia Albania Latvia
American Samoa Myanmar Andorra Liechtenstein

Armenia Nauru
Austria Lithuania
Azerbaijan Nepal
Belarus Luxembourg
Bangladesh New Caledonia
Belgium Macedonia
Bhutan North Korea
Bosnia-Herzegovina Malta
Brunei Pakistan
Bulgaria Moldova
Cambodia Papua New Guinea
China Philippines Croatia Monaco
Fiji Samoa Cyprus Montenegro
French Polynesia Singapore Czech Republic Netherlands
Guam Solomon Islands Denmark Norway

Hong Kong, China South Korea Estonia Poland
India Sri Lanka
Finland Portugal
Indonesia Taiwan
France Romania
Japan Tajikistan
Georgia Russia
Kazakhstan Thailand
Germany Serbia
Kiribati Tonga
Gibraltar Slovakia
Kyrgyzstan Turkmenistan
Laos Tuvalu Greece Slovenia
Macau Uzbekistan Hungary Spain
Malaysia Vanuatu Iceland Sweden
Maldives Vietnam Ireland Switzerland
Italy Ukraine
Australasia Kosovo United Kingdom
Australia New Zealand
149
Latin America North America
Anguilla Guadeloupe Canada USA
Antigua Guatemala
Argentina Guyana Sub-Saharan Africa

Aruba Haiti Angola Madagascar
Bahamas Honduras
Benin Malawi
Barbados Jamaica
Botswana Mali
Belize Martinique
Bermuda Mexico Burkina Faso Mauritius
Bolivia Nicaragua
Burundi Mozambique
Brazil Panama
Cameroon Namibia
British Virgin Islands Paraguay
Cayman Islands Peru Cape Verde Niger
Chile Puerto Rico

Central African Republic Nigeria
Colombia Sint Maarten
Chad Réunion
Costa Rica St Kitts
Cuba St Lucia Comoros Rwanda
St Vincent and the Congo, Democratic

Curacao Sao Tomé e Príncipe
Grenadines Republic
Dominica Suriname Congo-Brazzaville Senegal

Dominican Republic Trinidad and Tobago
Côte d'Ivoire Seychelles
Ecuador Uruguay
Equatorial Guinea Sierra Leone
El Salvador US Virgin Islands
French Guiana Venezuela Eritrea Somalia

Grenada
Ethiopia South Africa
Middle East and North Africa Gabon South Sudan
Algeria Mauritania
Gambia Swaziland
Bahrain Morocco
Ghana Tanzania
Djibouti Oman
Egypt Qatar Guinea Togo
Iran Saudi Arabia

Guinea-Bissau Uganda
Iraq Sudan
Kenya Zambia
Israel Syria
Jordan Tunisia Lesotho Zimbabwe
Kuwait Turkey
Liberia
Lebanon United Arab Emirates
Libya Yemen
Notes
Notes
Notes

Gf19-Outlook Report-Final LR2

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GLOBAL INDUSTRY

MARKET DRIVERS AND TRENDS.................................................................................................................................................................18

MARKET CHALLENGES AND OPPORTUNITIES.....................................................................................................................................19

VOICE OF THE INDUSTRY............................................................................................................................................................................ 20

GLOBAL SOCIAL AND ECONOMIC OUTLOOK 24

GLOBAL DYNAMICS OF DEMOGRAPHICS - OVERVIEW.................................................................................................................25

GLOBAL DYNAMICS OF DEMOGRAPHICS – DEVELOPED VS EMERGING MARKETS........................................................26

GLOBAL DYNAMICS OF DEMOGRAPHICS – URBANISATION VS POPULATION GROWTH............................................. 27

GLOBAL ECONOMIC OUTLOOK - OVERVIEW......................................................................................................................................29

GLOBAL ECONOMIC OUTLOOK – GDP IN DEVELOPED VS EMERGING MARKETS........................................................... 30

GLOBAL INCOME AND CONSUMER EXPENDITURE...........................................................................................................................31

VOICE OF THE INDUSTRY............................................................................................................................................................................. 33

GLOBAL FOOD AND BEVERAGES SECTOR 35

GLOBAL F&B INDUSTRY OVERVIEW........................................................................................................................................................36

GLOBAL F&B TRENDS......................................................................................................................................................................................38

GLOBAL F&B DISTRIBUTION.........................................................................................................................................................................39

GLOBAL PRIVATE LABEL FOOTPRINT.....................................................................................................................................................43

VOICE OF THE INDUSTRY............................................................................................................................................................................ 45

DECOMPOSITION OF F&B INDUSTRIES 47

BEVERAGES INDUSTRY – AT A GLANCE.............................................................................................................................48

MARKET SIZE AND POTENTIAL...............................................................................................................................................49

MARKET TRENDS & DRIVERS.....................................................................................................................................................51

CHALLENGES AND OPPORTUNITIES....................................................................................................................................55

VOICE OF THE INDUSTRY.......................................................................................................................................................... 58

DAIRY INDUSTRY – AT A GLANCE..........................................................................................................................................62

MARKET SIZE AND POTENTIAL...............................................................................................................................................63

MARKET TRENDS AND DRIVERS.............................................................................................................................................65

CHALLENGES AND OPPORTUNITIES....................................................................................................................................68

VOICE OF THE INDUSTRY......................................................................................................................................................... 70

MEAT & POULTRY INDUSTRY 73

MEAT & POULTRY INDUSTRY – AT A GLANCE.................................................................................................................. 74

MARKET SIZE AND POTENTIAL............................................................................................................................................... 75

MARKET TRENDS & DRIVERS.................................................................................................................................................... 77

CHALLENGES AND OPPORTUNITIES.....................................................................................................................................81

VOICE OF THE INDUSTRY.......................................................................................................................................................... 82

Seafood INDUSTRY – AT A GLANCE.......................................................................................................................................86

MARKET SIZE AND POTENTIAL...............................................................................................................................................87

MARKET TRENDS & DRIVERS.................................................................................................................................................. 90

CHALLENGES AND OPPORTUNITIES....................................................................................................................................93

VOICE OF THE INDUSTRY......................................................................................................................................................... 94

PULSES, GRAINS & CEREALS 97

PULSES, GRAINS & CEREALS - AT A GLANCE..................................................................................................................98

MARKET SIZE AND POTENTIAL...............................................................................................................................................99

MARKET TRENDS & DRIVERS................................................................................................................................................... 101

COMPETITIVE LANDSCAPE...................................................................................................................................................... 102

DISTRIBUTION LANDSCAPE.................................................................................................................................................... 103

CHALLENGES AND OPPORTUNITIES..................................................................................................................................104

VOICE OF THE INDUSTRY........................................................................................................................................................ 106

FATS & OILS - AT A GLANCE.................................................................................................................................................... 110

MARKET SIZE AND POTENTIAL.............................................................................................................................................. 111

MARKET TRENDS & DRIVERS....................................................................................................................................................113

COMPETITIVE LANDSCAPE....................................................................................................................................................... 114

CHALLENGES AND OPPORTUNITIES................................................................................................................................... 116

VOICE OF THE INDUSTRY......................................................................................................................................................... 118

COOKING INGREDIENTS INDUSTRY 121

COOKING INGREDIENTS INDUSTRY – AT A GLANCE..................................................................................................... 122

MARKET SIZE AND POTENTIAL................................................................................................................................................ 123

MARKET TRENDS & DRIVERS..................................................................................................................................................... 126

COMPETITIVE LANDSCAPE......................................................................................................................................................... 127