Dairy beverage market trend south east asia 2015

1. DAIRY & BEVERAGE
MARKET TRENDS &
CONCEPTS

2. Dairy & Beverage Market Trends & Concepts
• Market Data
• Key Trends in SEA Market
– Functional
– Ethical & Environmental
– Positioning
2
Content

3. 1
3
MARKET DATA
DAIRY & BEVERAGE MARKET TRENDS &
CONCEPTS

4. 4
New Products Launch
Source: Mintel GNPD Period: 2010-2015 Category: Liquid Milk
Thailand, Philippines, Indonesia, Malaysia
0
20
40
60
80
100
120
140
2010 2011 2012 2013 2014 2015
New Products Launch
Malaysia
Philippines
Indonesia
Thailand
Indonesia
Thailand
Most active in new launch among 4
countries
Flavored milk is most popular
New launch blooming last 2 years
Active in flavoured milk & soy based
drinks
119
111
81
105
130
125

5. Claim Distribution in SEA
0
50
100
150
200
250
300
350
400
2010 2011 2012 2013 2014 2015
Date Published vs Claim Category
Free from
Convenience
Demographic
Positioning
Ethical & environmental
Plus
Functional
Minus
Natural
Suitable for
5
Key Trends
Mainstream
Suitable for
Natural
Minus
Functional
Ethical & Environmental
Positioning
Source: Mintel GNPD Period: 2010-2015 Category: Liquid Milk

6. 2
6
Key Trends in SEA Market
DAIRY & BEVERAGE MARKET TRENDS &
CONCEPTS

7. Key Trends in SEA Market
7
Functional Positioning
Ethical &
Environmental
• For products that actively make a
prominent marketing claim that
the packaging for its product is
friendly to the environment.
• Reduced/reduced weight
packaging, recyclable packaging,
re-usable packaging, made from
recycled material, low carbon
footprint. Also includes packs that
claim for every package they
make, they plant a tree etc.
• A growing desire for healthy
lifestyles, caused by rising health
issues, have increased the demand
in the region for food and drink
with functional claims and added
health benefits.
• Functional dairy drinks can gain
greater presence through fortified
innovations that communicate
specific benefits to consumers.
• Focus on the ‘high-end’ spectrum.
Brands can convey a ‘high-end’
image of the category by
highlighting unique attributes such
as safety certifications, ingredient
provenance, exclusive packaging
and unique flavours.

8. 01. Functional
• A growing desire for healthy lifestyles, caused by rising health issues has increased the demand
for food and drink with natural claims and added health benefits in the Asia-Pacific region.
Dairy drinks with functional claims have therefore been an important area of development,
appearing on 27% of the total new product launches in the last 12 months to June 2015.
8
24% 25%
28%
27%
21%
22%
23%
24%
25%
26%
27%
28%
29%
May 2011 - 2012 May 2012 - 2013 May 2013 - 2014 May 2014 - 2015
Functional
Functional
New Product Launches – Dairy Drinks – Asia Pacific
Source: Mintel GNPD Period: 2011-2015

9. 01. Functional | Sub Trends
9
High Protein
Introducing high protein claims to food and drink categories has become a major focus
of innovation.
Bone Health
Research are showing that vitamin D plays a vital role in maintaining overall good health.
Given that vitamin D fortification is a niche claim in dairy drinks, suggests that this holds
significant potential for brands to launch vitamin D fortified milk and dairy drinks
Digestive
Vitamin E and indigestible dextrin has been used as a claim to reduce fat. Besides, some
products also concentrate on added fibre claim on their package to support digestive.
Functional Benefits With Additives
Multi-functional products with lots of ingredients like variety vitamin, omega-3,
antioxidant…
Brain & Nervous System
Benefits associated with optimal memory function, brain and nervous health and
maintaining a positive mental state .

10. 01. Functional | Functional Benefits With Additives
10
UHT Soy Milk with Black Sesame
2015, Lactasoy [Thailand]
The new non-dairy recipe contains
5,237.5µmol TE antioxidant activity per
250ml. It is high in 13 essential vitamins
and minerals including biotin, folate,
niacin, pantothenic acid, iron, calcium
and vitamins A, B1, B2, B6, B12, D and E.
Ancient Grainis Quinoa Milk With Chia
2015 Freedom Foods [Malaysia]
The product is gluten free, lactose free, nut free and
GM ingredient free and is said to be a good source of
omega-3 ALA. Quinoa and chia seeds are said to
contain important nutrients like protein, essential
vitamins and antioxidants. Free from artificial
colours, flavours and preservatives.
Pure Coconut Almond Milk Blend
2015, Califia Farms [Philippines]
Califia Farms Pure Coconut Almond Milk Blend is free from soy, gluten, dairy, trans
fat, cholesterol and sugar. This product, with a taste of toasted coconut, provides
only 50 calories per serving, is said to be an excellent source of calcium, is rich in
antioxidant vitamin E and is 100% vegan. Made from non-genetically engineered
almonds, the kosher certified product retails in a 1.4L BPA-free, recyclable bottle.
67%
products on the
market contains or
claims in vitamin
11%
claims to be a good
source of amega-3
8%
antioxidant

11. 01. Functional | Digestive
11
Rice Drink
2015, Yosoy [Indonesia]
Made with selected ingredients and
pure water from the Montseny
mountain. This 100% vegetable drink is
claimed to be an important part of a
diet, and is an all-natural alternative to
milk. It is low in saturated fat, low in fat,
low in sodium, and free from lactose
and gluten. According to the
manufacturer, rice helps to regulate the
digestion, and is specially aimed at
coeliacs.
Cocoa Flavoured Pasteurised Goat Milk
2015, Love Goat Milk [Thailand]
Love Goat Milk Cocoa Flavoured Pasteurised Goat Milk is
said to be 100% fresh, natural, creamy and delicious.
According to the manufacturer, goat milk is easy to digest
and absorb; neutralises acid in the stomach; inhibits
cholesterol deposition; is rich in nutrition, protein, calcium
and vitamins; and contains good fatty acids such as caproic,
caprylic and capric.
Oats & Rice
was accepted in to
regulating the
digestion by the
public, while
goat protein
recommended by the
producer that is easy
to be digest recently.

12. 01. Functional | High Protein
12
Low Fat High Protein Pasteurised Milk
2015, CP-Meiji High Protein [Thailand]
CP-Meiji High Protein Low Fat High Protein
Pasteurised Milk is made with an L-Carnitine
formula. It contains 500mg L-carnitine, 18g
protein per 350ml, and is high in calcium. The
halal certified product retails in a 350ml bottle.
Soya Bean Milk
2015, BrookFarm [Indonesia]
BrookFarm Susu Kacang Kedelai (Soya Bean Milk) is
said to be made from the best soya beans from
America, which contains all the goodness of soya
bean milk. It is vegan, high in protein and free from
cholesterol, lactose, gluten and trans fat. The full
and refreshing flavoured milk provides excellent
source of nutrition, natural proteins, vitamins and
minerals. The halal certified product is also low in
saturated fat, recommended as a heart healthy
protein drink for the family and retails in a 1000ml
pack.

13. 01. Functional | Bone Health
13
Soy Milk with Tea
2015 Marusan [Thailand]
contains no milk powder ingredients or preservatives. It is high in calcium and
vitamins B1, B2, B6 & B12. Calcium is said to help build bones and strengthen
teeth, vitamin B1 helps the function of the brain and builds muscle, vitamin B2
helps the body produce energy from protein and fat, vitamin B6 helps brain
development, and vitamin B12 aids in the function of the brain. This UHT
product with a formula from Japan is suitable for vegetarians.
Spring White Tea Flavoured UHT Milk
2015 Anlene Gold BonezActiv [Thailand]
Anlene Gold BonezActiv Spring White Tea Flavoured UHT Milk is new
to the range. This product contains a BonezActive formula that
features phosphorus for healthy bones and teeth; vitamin D to help
absorb calcium and phosphorous; and calcium to aid strong bones.
This high calcium beverage is low in cholesterol and fat, and high in
vitamin A that helps to aid vision ability, and vitamin B2 that helps to
transform carbohydrates, protein and fat into energy. The halal
certified product provides 60% daily value of calcium

14. 01. Functional | Brain & Nervous System
14
Riceberry Milk Cereal Drink
2015 V-Fit [Thailand]
is made from organic riceberry and is high in vitamins B1, B2, B12, E, fibre,
calcium and iron all of which contribute to healthy brain, nervous and muscle
systems, energy extraction from foods, anti-oxidant processes, excretory system,
strong bones and teeth and red blood cells productions. The milk also contains
vitamin A for healthy vision, is vegetarian friendly and free from preservatives.
Plain UHT Milk
2015 Dutch Mill Gen I Nutri Vi-Plus [Thailand]
Dutch Mill Gen I Nutri Vi-Plus Plain UHT Milk is said to be nutritious for children.
The milk contains kiwifruit extract powder as a natural source of lutein and
vitamin A as well as calcium, phosphorus, iron, iodine and vitamins B12, C and D.
It also contains omega 3, 6, and 9 as essential nutrients for the growth and
development of vision, brain function, the nervous system, muscles, bones,
teeth and red blood cell production.
Design for two kinds of people:
Children
White-collar worker

15. 02. Ethical & Environmental
• For products that actively make a prominent marketing claim that the packaging for its product
is friendly to the environment.
• Reduced/reduced weight packaging, recyclable packaging, re-usable packaging, made from
recycled material, low carbon footprint. Also includes packs that claim for every package they
make, they plant a tree etc.
15
11%
13.50% 13.50%
41%
22.30%
25%
0%
10%
20%
30%
40%
50%
2010 2011 2012 2013 2014 2015
Ethical & Environmental
New Product Launches – Dairy Drinks – Phil/Thai/Indo/Malay
Source: Mintel GNPD Period: 2011-2015

16. 03. Positioning |Focus on the ‘high-end’ spectrum
• The dairy drinks market in Asia has seen a growing number of players looking to meet the
demand for safer and healthier products, as a result of strong food safety concerns. This can
be reflected by the fifty-one percent of Chinese consumers who indicate that they are willing
to pay a premium price for milk with international food safety certifications. NPD activity
therefore show how some operators have kept exclusive attributes at the forefront of their
development strategies to better engage consumers in the category.
16
Why Premium?
Source: Source: http://www.corporatenetwork.com/ ; Mintel GNPD Period: 2011-2015
Better Living,
Higher Standards
Blue Ocean
Avoiding struggle for price
competition
Consumers are now
more willing to spend
on indulgence
The low price
market is mature

17. 03. Focus on the ‘high-end’ spectrum | How?
17
How?
High quality
ingredients
Flavour
innovation
Innovative
packaging
Textures
for fun
Health
Conscious
Lifestyle
focus

18. 03. Focus on the ‘high-end’ spectrum
A. High quality ingredients and provenance add premium cues
18
Vanilla Malt Flavour Oat Dairy Drink
2015 Quaker Good Start [Thailand]
USD 0.63 280ml
Quaker Good Start Vanilla Malt Flavour Oat Dairy Drink is described as
delicious, nutritious and convenient breakfast drink that contains
goodness from real oats and milk. The product is said to be a source of
calcium that helps build bones and teeth; and rich in fibre that supports
the digestive system. This product is made from New Zealand milk
Mocha Flavoured Soya Milk
2015 Hershey's Soyfresh [Indonesia]
USD 0.93 236ml
Hershey's Soyfresh Minuman Sari Kedelai Rasa Moka (Mocha Flavoured Soya
Milk) is free from preservatives and is described to be made from proprietary
recipe with the finest Hershey's cocoa.
Either emphasis on the origin place, like milk from Australia/New Zealand, or
brand awaraness.

19. 03. Focus on the ‘high-end’ spectrum
B. Flavour innovation can be an influential driver to trade up consumers
• Flavour innovation has been an influential driver of growth in many categories and is also a
prevalent trend in the dairy drinks market. Many of the brands have explored flavour
innovation in order to premiumize the category. This has mainly been done by launching
dairy drinks featuring unique flavour profiles.
• There are still many flavour ingredients, both local and foreign, that have not been used in
dairy.
19
Sahmyook Banana Soy Milk
Indonesia 2015.02
USD 0.81 190ml
Vegemil Black Bean Soymilk
Indonesia 2015.05
USD0.95 190ml
Skittles Fruits Flavoured Milk
Philippines 2014.10
USD 11.28 750ml
Califia Farms Pure Coconut Almond
Milk Blend
Philippines 2015.02
USD 16.48 1.4l

20. 03. Focus on the ‘high-end’ spectrum
C. Brands innovate around packaging
• Another way to premiumize the dairy drinks category has been through packaging
innovation. Some brands have chosen to shift away from cartons to cans while others have
been extending the traditional bottle concept further.
20
Innovative shapreDifferent materialPremium design

21. • A new variety of textures and formats is developed to appeal to consumers of all
ages. This also helps to create a point of difference to stand out and aid in promoting
sensory experiences.
03. Focus on the ‘high-end’ spectrum
D. Multiple textures can offer luxury and enjoyment
21
Strawberry & Yogurt Smoothie
Famima Café Mango Latte features mango
whipped cream, mango sauce, mango fruit and
coarse coconut shaving (Japan)
Mango Latte
Emial Smoothie Strawberry & Yogurt Smoothie is made
with selected strawberry with good aroma and texture
and a new fruit sauce to offer a more fruity texture.
The fat-free product retails in a 180g pack (Japan)

22. 03. Focus on the ‘high-end’ spectrum
E. Health Conscious
• Consumers are becoming increasingly concerned about their health and wellbeing. According
to a Mintel report, getting enough sleep, doing regular exercise and eating a balanced diet
are recognised as the most important factors contributing to a healthy lifestyle.
• Dairy is gaining popularity for being rich in protein, calcium, vitamin and minerals.
22
High Protein
Bone Health
DigestiveFunctional Benefits With Additives
Brain & Nervous System
…

23. 03. Focus on the ‘high-end’ spectrum
F. Lifestyle Focus
• Consumers are now more willing to spend on indulgence ranging from an expensive handbag
to a luxurious tea time, thanks to the rise in income.
• These consumers want to be pampered. For example, going to the cinema is not just about
watching a movie. They want to enjoy comfort and exclusivity with spacious seating and the
serving of foods before entering the cinema hall.
• Businesses are upgrading their products and services catering to consumers who are willing
to open their wallets to enjoy the luxurious experience.
• Disney knows what its customers love and that’s just what it gives them. For dairy
companies, knowing consumers better, “what they are keen on with”, “what are they talking
about daily”, “what do they care about mostly”…will help tap into the coming trend.
23

24. Where do you want to go? We show you a way.
24
High Protein
Bone Health
Digestive
Functional Benefits
With Additives
Brain & Nervous
System

25. Functional Benefits With
Additives
High Protein Brain & Nervous System Fiber
Red Date Milk
“the king of nuts” (百果之王
bǎi guǒ zhī wáng)
High Protein Sports Drink
Get your protein
conveniently
Walnut Milk Drink
Tree nuts and your brain
Cereal Milk Beverage
The benefits of fiber
Seventy to 80 times higher
in Vitamin C than grapes
and apples, abound with
Vitamin A, Vitamin B1,
Vitamin B2, protein,
calcium, phosphorus, iron
and magnesium.
Stimulate the production of
white blood cells, which
improves immunity, and
decrease the levels of
cholesterol in your
bloodstream, which helps
protect the liver.
Healthy protein intake
depends on weight, with a
recommended intake figure
of 0.8g per kg of weight per
day often cited. Age is also
a factor.
Over the course of a day,
the average man should be
eating around 55g of
protein, while a woman
needs 45g, says the British
Dietetic Association. In the
US, the national public
health body, the Centers for
Disease Control and
Prevention, recommends
56g for an average man
and 45g for a woman.
potential health benefits for
walnuts in the area of
memory and general
thought processes (often
referred to as "cognitive"
processes).
Potential health benefits
involves melatonin (MLT).
MLT is a widely-active
messaging molecule in our
nervous system, and very
hormone-like in its
regulatory properties. MLT
is critical in the regulaion of
sleep, daily (circadian)
rhythms, light-dark
adjustment, and other
processes..
Soluble fiber found in
beans, oats, flaxseed and
oat bran may help lower
total blood cholesterol
levels by lowering low-
density lipoprotein, or
"bad," cholesterol levels.
Soluble fiber can slow the
absorption of sugar and
help improve blood sugar
levels.
A healthy diet that includes
insoluble fiber may also
reduce the risk of
developing type 2 diabetes.
25

26. DAIRY & BEVERAGE
MARKET TRENDS &
CONCEPTS
THANK YOU!