Consumer Trends in Weight Management in Asia Pacific: Challenges and Opportunities for the Industry

CONSUMER TRENDS IN WEIGHT
MANAGEMENT ASIA PACIFIC: CHALLENGES
AND OPPORTUNITIES FOR THE INDUSTRY
VITAFOODS ASIA, SEPTEMBER 2014
MINJI KIM
RESEARCH ANALYST

© Euromonitor International
2CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA PACIFIC: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY
About Euromonitor International
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Serving North America
London
Headquarters
Serving Western Europe
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Europe and
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America
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Serving Asia
bar China, India, Japan, Australasia
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Serving China
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Serving Japan
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Serving Australia, New Zealand
and the Pacific region
Sao Paolo
Serving Latin
America
• Strategic research for over 20 industries
• Extensive network of analysts in 80 countries
• Global presence, local coverage

4
INTRODUCTION
WEIGHT MANAGEMENT OVERVIEW
KEY PRODUCT DEVELOPMENTS
CONCLUSION

5
US$163
of weight
management retail
sales globally in 2013
Japan
takes the largest value
sales with US$5.7
billion in 2013
12%
represented by Asia
Pacific in 2013; This
region achieved 57%
value growth between
2008-2013
billion
CONSUMER TRENDS IN WEIGHT MANAGEMENT ASIA PACIFIC: CHALLENGES AND OPPORTUNITIES FOR THE INDUSTRY

6
Over 2 billion overweight and obese globally, led by China
-
20
40
60
80
100
120
140
160
180
200
India
USA
Brazil
Pakistan
Indonesia
Russia
Mexico
Germany
Nigeria
Japan
Turkey
Iran
Egypt
UnitedKingdom
Italy
Philippines
France
Spain
SouthKorea
Thailand
Colombia
Ukraine
Vietnam
Poland
Argentina
Canada
Algeria
SouthAfrica
Venezuela
Millionpeopleaged15+
Top 30 Overweight and Obese Countries (BMI>25)
2008
2013
2018

7
0
10
20
30
40
50
60
Switzerland
Norway
Australia
USA
HongKong
Sweden
Austria
Canada
Germany
Denmark
Finland
France
UnitedArabEmirates
Singapore
Belgium
UnitedKingdom
Japan
Israel
Ireland
Italy
NewZealand
Netherlands
Spain
Qatar
Greece
Slovenia
Portugal
SouthKorea
Taiwan
Bahrain
Kuwait
Uruguay
Slovakia
Chile
CzechRepublic
Lithuania
Argentina
US$„000percapita
Annual Disposable Income
2013 2018
Constant Prices, Fixed 2013 Exchange Rates
Rising annual disposable income

8
Other growth driving factors
Hectic life
style
Campaigns
Social
influence
Education
on health
risks of
being
overweight

9
INTRODUCTION
CONCLUSION

Asian market shows strong outlook
0.0
1.0
2.0
3.0
4.0
5.0
6.0
US$billion,Year-on-yearexchangerate
Weight management retail vale sales in 2008/2013
2008
2013

11
Japan
Meal Replacement Bottled Water
Carbonates Concentrates
RTD Tea Confectionery
Dairy Ice Cream
Meal Replacement Oils and Fats
Sauces, Dressings and Condiments Spreads
Developing countries have high potential to grow
India
Carbonates Dairy
Meal Replacement Other Food
Weight Management Retail Value Sales
By Product Type 2013 – % share

12
Reduce
unhelpful
ingredients
Add
functional
ingredients
Consumers remain interested in keeping a healthier diet

13
Demand for balanced nutrition becomes more prominent
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2008 2013 2018
US$billion,Constant2013Prices
Meal Replacement Slimming retail value sales
- Asia Pacific
Meal Replacement Slimming
South Korea
has the largest market
size of US$ 588 million
in 2013
Indonesia
records the fastest
growth rate of nearly
1,000% between 2008 -
2013
Source:
http://products.herbalife.com.sg/we
ight-management/formula-1

14
Functional ingredients in beverages promise faster weight loss
Source:
http://www.philstar.com/health-and-
family/2013/01/08/894309/be-fit-not-fat-2013
With L-CarnitineWith Bitter gourd With Ginger
Source:
http://www.agv.com.tw/index.php?apps=pro
duct&action=show&cat_id=13&id=88
With Chlorogenic acid
Taiwan Philippines Japan
Source: Own photo

15
Naturally healthy beverages also register strong demand
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
2013-14 2014-15 2015-16 2016-17 2017-18
Retailvalueyear-on-yeargrowth%,current
prices
Reduced Sugar Beverages
Fortified/Functional Beverages
Bottled Water
RTD Tea
Retail value growth rate % 2013-18

16
Governments take the initiative: Hong Kong
Sources: http://restaurant.eatsmart.gov.hk/eng/home.asp

17
Governments take the initiative: Thailand
“Balanced nutrition
in foods”
Sources: http://www.raipoong.com/media/download/leaflet_food_exchange.pdf

18
Governments take the initiative: Singapore
Sources: http://www.hpb.gov.sg/HOPPortal/programmes-article/HPB053006

19
Technology developments continue
According to Noom Korea, for one year since the application was introduced
 1.3 million of people newly registered in Noom Diet Coach
 106,276 of Facebook users liked Noom Korea fanpage
 People lost 17,802,327kg using Noom application
https://itunes.apple.com/sg/app/idat/id470823071?mt=8

20
INTRODUCTION
CONCLUSION

Key product developments: Weight loss + Skin Care
Source:http://news.naver.com/main/read.nhn?mode=
LSD&mid=sec&sid1=101&oid=001&aid=0006956346
Unique selling point
• 140ml functional drink and two pills of
‘Panduratin A’, an extract of Kaempferia
pandurata
• High fibre
• Claim to help weight-loss and skin recovery
together

Key product developments: Cola for weight management
Source:http://japandailypress.com/adult-
drinks-carbonated-soft-drinks-for-the-
health-conscious-078483/
Unique selling point
• Fortified with indigestible dextrin
• Claims to limit absorption of fat with
reduced sugar
• Certified as ‘FOSHU (Food for Special Health
Uses)’ beverage

23
Key product developments: Totally reformulated product
0 20 40 60 80 100 120 140
France
UK
Poland
Netherlands
US$ million, fixed exchange rates
Regular Sprite, now with stevia
2013 2012 2011 2010 2009

24
INTRODUCTION
CONCLUSION

25
US$202
of weight
management retail
sales globally in 2018
Emerging
countries
13%
of this market
accounted for by Asia
Pacific in 2018
billion
will show dynamic
growth in the
forecast period

26
Challenges
Limited
growth
High price
Safety
issues
Competition
Regulation
Lack of
awareness

Key takeaway
Weight
management
Functional
ingredients
India/Japan
Increasing
competition
Innovation

THANK YOU FOR LISTENING
Q&A
Minji Kim
Research Analyst
Minji.kim@euromonitor.com.sg

29
Health and wellness food and beverages comprises the following Euromonitor
International categories:
Weight management: Non-prescription medication as well as packaged foods and
beverage positioning as weight management by reducing sugar or far or by adding
functional ingredients to help weight lost
Better for you (BFY): Items where the amount of a substance considered to be less
healthy has been actively reduced, removed or substituted during production. In turn,
this forms part of the product's positioning/marketing, like low-fat or low-sugar versions
of "standard" products . Products which are naturally free of, for example, fat, salt or
sugar, are excluded.
Fortified/functional (FF): Products to which ingredients with purported health benefits
have been added, and which have a specific physiological function and/or are enhanced
to the point where the level of added ingredients would not normally be found. To merit
inclusion, the product must have been actively fortified/enhanced during production. As
such, inherently healthy products, like 100% fruit/vegetable juices, are only included if
additional functional ingredients have been added.
Naturally healthy (NH): Products that naturally contain a substance that improves
health and wellbeing beyond the product's pure calorific value, eg olive oil, honey, soy-
based food and beverages, green tea, 100% fruit/vegetable juice and naturally high-fibre
food (eg bread, breakfast cereals, pasta). While many of these products are marketed on
a health basis, this need not necessarily be the case.
Glossary of terms
APPENDIX

30APPENDIX
Food Intolerance (FI)
Organic (O)
• O+FF, O+BFY, O+NH
Fortified/Functional (FF)
• FF+BFY, FF+NH
Better For You (BFY)
• BFY+NH
• Fat(4) SugarCarbsSalt (1)
Naturally Healthy (NH)
Health and Wellness Taxonomy
Exceptions:
Yoghurt:
- FF most important
Spreadable Oils & Fats:
- FF most important
Breakfast Cereals:
- FF least important
because all cereals
are fortified as the
industry standard

31
Digestive
Health
Probioti
cs
Prebioti
cs
Fibre
Weight
Control
Fibre
for
satiety
Fabuless
- satiety
CLA
L’Carnit
ine - fat
burning
High
protein
Green
tea
extract
Konjac
mannan
Heart
Health
Plant
sterols/
stanols
Omega-
3 ALA,
DHA,
EPA
Peptides
Beta
glucans
Soluble
fibre
Soy
proteins
Folate
Vit K
Pectins
Bone and
Teeth
Sugar-
free
gum
Calcium
Fluoride
Vit D
Beauty
from
Within
Collagen
CoQ10
Lycopen
e
Antioxid
ants
Beta-
carotene
Vit C
Seleniu
m
Vit B2,
B3, B7
Zinc
Vit ACoQ10
Vit E
APPENDIX
Focus on ingredients and prime positioning
Aloe
Vera
Immune
Support
Vit C
Anti-
oxidants
Probioti
cs
Vit D
Seleniu
m
Vit B 12
Brain
Health
Omega-
3 ALA,
DHA,
EPA
Caffeine
CoQ10
Vit B1,
B3, B6,
B7, B12
Magnesi
um
Energy /
Sport
Nutrition
Whey
protein
Creatine
Magnesi
um
Electrolit
es
Proteins
Vit B6

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