Post on 17-Jan-2017
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JUICE (J)
NECTAR (N)
STILL DRINK (SD)
Juice beverages with 100% juice content
Juice beverages with 25-99% juice content
Beverages with 0-24% juice content 4 Sub Groups: • Fruit/Flavored Still Drink (FFSD)
• Minute Maid, Jele’, Mogu Mogu and etc. • RTD Tea • Sports & Energy Drink • RTD Coffee
Juice category definitions by juice content
100% Premium Juice –Major Player’s Share Total Thailand
4,285 MB
3% 3%
9%
17%
25%
43%
Year 2012
Sappe' UFC Others Total Unif Total Malee Total Tipco
12%
Market Size Growth
Continuous growth of Premium & Economy segments led to higher market value.
Fruit Content - Premium (90% +) - Medium (26-89%) -Economy (20-25%) -Super (<20%)
Premium
Other???
Economy
Source: Retail Index
Homescan | Fruit Juice for Tipco, Oct 2012
+19%
+7%+12%
70.5% 72.8%
+7%-0%
+2% +5%
Key Purchase Measures of Total Fruit Juice Urban Thailand,
YTD Mid Aug11 & YTD Mid Aug12 Expenditures (Million Baht)
# of buying HHs (Million)
Avg. Spend per buying HH (Baht)
Avg. Spend per Trip (Baht)
Avg. Price (Baht) per Liter
Avg. Volume Bought (ML) per Trip
In-home expenditures on Fruit Juice was driven mainly by more buying households.
Avg. # of Trips
Penetration !
- More expense on promotion (+20% value growth)
Homescan | Fruit Juice for Tipco, Oct 2012
+13%
-1%+15%
40.8% 43.3%
-0%-1%
+2% -2%
Key Purchase Measures of Premium Fruit Juice
Urban Thailand, YTD Mid Aug11 & YTD Mid Aug12
Expenditures (Million Baht)
# of buying HHs (Million)
Avg. Spend per buying HH (Baht)
Avg. Spend per Trip (Baht)
Avg. Price (Baht) per Liter
Avg. Volume Bought (ML) per Trip
Key driver for Premium segment was penetration.
Avg. # of Trips
Penetration !
Homescan | Fruit Juice for Tipco, Oct 2012
+32%
+20%+10%
39.0% 39.8%
+19%+1%
+1% +18%
Key Purchase Measures of Eco & Super Economy Urban Thailand,
YTD Mid Aug11 & YTD Mid Aug12 Expenditures (Million Baht)
# of buying HHs (Million)
Avg. Spend per buying HH (Baht)
Avg. Spend per Trip (Baht)
Avg. Price (Baht) per Liter
Avg. Volume Bought (ML) per Trip
Consumers accepted Eco & Super Economy segment quite well.
Avg. # of Trips
Penetration !
Derived Segmentation of Need by Occasion of Drinks
Based on need statement by different occasions of drink; the market can be explained into 6 segmentations by occasions of drink as the following;
40.0%
28.5%
13.5%
7.0%
6.0% 5.0%
Energy Boost
Healthy-Hungry Trading
Pure and Natural
Calm down & Concentrate
Reward myself
Slim & Good looking
5 Top Global Packaging Trends Packaging Digest, May 2013
1. Sustainability – Important, but not top of mind – Expect “green”, but less willing to pay premium
2. Authentic, Credible, Traceable – Connection between products and their origins
3. Branding – Heritage, limited edition, seasonal / event related
5 Top Global Packaging Trends Packaging Digest, May 2013
4. Shoppers manage their budgets – Just in time purchasing (TESCO Extra and Express) – Easy to carry packs with smaller price points
5. Wellness: What shoppers seek – “Suitable for”, natural / organic, 100% – Vitamins / antioxidants / minerals – Clinically tested
Sustainability • Eco friendly packaging in terms of
: Light weight plastic bottle (Reduce the amount of resin)
: Bio degradable plastic and paper materials (Reduce the amount of waste and pollution from used packaging)
Sustainability • Carbon footprint (Concern about the total sets of CO2 emission)
• Beneficial safe and healthy material use (Free from plasticizers and Acetaldehyde in PET)
• Attractive labeling
Still Fruit Drinks and Juices & Nectars packaging development
Overview • Overall both, Still Fruit Drinks (SFD) and Juices and Nectars
(J/N), are forecasted to see positive growth over the coming years
• Carton will strengthen its leading position for J/N
• Overall, plastic bottles are dominating the segment due to their high share in the leading sub segment SFD
• Innovations, e.g. products with extra health benefit, from key players in the market has driven the growth of juices and nectars in carton in the recent years
• Generally, smaller size packs below 1 liter will remain the most popular ones in SFD while juice are driven by 1L packs
SFD and J/N packaging development Total Thailand
249 325
431 520
605 67 64
81
87
94
62 59
67
76
82
9 6
8
5
6
55 59
65
70
73
2007 2009 2011 2013 2015
Others
Pouch
Can
Glass
Carton
PlasticBottles
Total SFD and J/N by packaging type (Mio. L)
" Positive outlook for the SFD and J/N market despite some slow down in the future
" Plastic will continue to be the market driver as SFD are supposed to gain even more popularity; carton benefits from the growth of juices & nectars
447
519
655
864
16%
26%
14%
Total SFD and J/N by packaging type (Mio. L)
760 16%
XX% Growth YoY (%)
56% 63% 66% 68% 70%
15% 12% 12% 11% 11% 14% 11% 10% 10% 10% 2% 1% 1% 1% 1% 12% 11% 10% 9% 8%
2007 2009 2011 2013 2015
Others
Pouch
Can
Glass
Carton
PlasticBottles
Total SFD and J/N Fruit juice by packaging type (% share)
In Thailand, carton is clearly dominating the juices & nectars sub segment ; in the future, carton is supposed to gain a market share of over 90% driven by key players Tipco and Malee
Juice & Nectars packaging development Total Thailand
2007 2009 2011 2013 2015Glass 0.6 0.4 0.4 0.4 0.6Can 1.7 1.6 1.8 1.9 2Plastic 5.6 5.5 6.9 7.7 8.3Carton 67 63.8 78.8 84.8 92.2
67 64 79 85
92
6 6
7 8
8
75 71
88
103
-5%
24%
8%
Juices & Nectars by packaging type (Mio. L) 95 8%
XX% Growth YoY (%)
Still Fruit Drink is a cheaper category than Juice & Nectars and is mainly packed in plastic bottles
2007 2009 2011 2013 2015Carton 0 0.6 2 2 2.2Can 7.6 4.5 4.3 4.5 4.3Glass 61.4 58.8 66.8 75.5 81.7Plastic 243.6 319.8 424.4 512.1 597.1
244 320
424 512
597 61 59
67
76
82
XX% Growth YoY (%)
372
447
565
761
667
20%
26%
14%
18% Still Fruit Drinks by packaging type (Mio. L)
Still Fruit Drink packaging development Total Thailand
Smaller sizes (<749 ml) are dominating by almost 90% driven by SFD in PET while Juice is dominated by Carton 1L sizes
SFD and J/N packaging size mix Total Thailand
61% 54% 50% 49% 49%
26% 34% 38% 40% 40%
13% 11% 12% 11% 11% 0% 0% 0% 0% 0%
2007 2009 2011 2013 2015
>1000ml
750-1000ml
331-749ml
<=330ml
Market by size (% share)
Packaging Trends for future development
Carton : Strong growth
• Maintain quality of products
• Printing designs look attractive
PET : Cost reduction and toxic free
• Reduce the amount of resin beads / Shape / Design
• Additive Polymer to increase product shelf life / O2 Barrier
• BPA (Bisphenol A) / Bio / Eco
Glass Bottles : Limited growth
• Supply of materials
• Weight
• Cost & logistics
• Easily damaged
Future Development PET Trends
• Barrier Resin - O2 ingress - Increase shelf life - Protect sensitive products & ingredients
such as Vitamin C, Beer, Wine, Ketchup - Glass-clear appearance - Can be recycled
Oxygen Barrier Protect Taste & Colour Vitamin C Preservation
• Environmental Friendly - Light weight - BioPET Resin
Light Weight
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