08 Session4 2 Rob Pettit
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Transcript of 08 Session4 2 Rob Pettit
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The challenge from ingredients to replace
DairyRobert Pettit
Trade and Strategy Group
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Presentation reviews four major variables:
1. Protein technology research and development
2. Customer perceptions and behaviour
3. Government legislative and regulatory measures and
4. Sustainability influences
The focus in on trends in the ASEAN nations.
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Protein Ingredient Market Volumes:
Global (2006, 2009 and 2014) tonnes
Protein Ingredient Market Volumes:Global (2006, 2009 and 2014) %
Source: Frost & Sullivan
Overview: total protein
ingredient market
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1. Protein technology R&D:
product lifecycle stage
Milk Protein Isolate
Wheat Derivative Protein
AgeingMatureGrowthDevelopment
Whey Protein Conc
entrate
Whey Proteins Isolate Casein
Soy Protein Isolate
Milk Protein Concentrate
Whey Proteins HydrolysateSoy Protein Concentrate
Rice Protein
Pea ProteinPotato Protein
Wheat Derivative Protein
AgeingMatureGrowthDevelopment
Whey Pro
teinsConcentrates
Whey Proteins IsolateMilk Protein Isolate
Soy Flour and Grits
CaseinSoy Protein Isolate
Milk Protein Concentrate
Whey Proteins HydrolysateSoy Protein Concentrate
Canola Protein
Pea Protein
Rice Protein
Potato Protein
2010
2016
Source: Frost & Sullivan
Canola Protein
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Consumer acceptance
2010 2012 2014
Nutritional profile
DriversDrivers
2010 2012 2014
Marketing spend
Technological developments
for greater functionality
Plant ProteinDairy ProteinSource: Frost & Sullivan
Total protein ingredient
market: impact of drivers
High Medium Low
Impact:
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2010 2012 2014
High Medium Low
Impact:
2010 2012 2014
Anti-nutritional
components and
allergens
Cultural differences
- global
RestraintsRestraints
Threat of
substitution
Plant ProteinDairy ProteinSource: Frost & Sullivan
Total protein ingredient market:
impact of restraints
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Soy
Protein
Concentr
ate
Soy
Protein
Isolate
Pea
Protein
Rice
Protein
Potato
Protein
Canola
Protein
Whey Protein
Concentrate
Whey Protein
Isolate
Caseinate/Casein
Milk Protein
Concentrate
Low substitutionMedium substitutionHigh substitution
Source: Frost & Sullivan
Total protein ingredient market:
substitution trend (2016)
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2. Customer perceptions and behaviour - ASEAN
Both consumer and ingredient end-user can be influenced by
comparable factors such as:
Relative pricing
Degree of consumer acceptance and
Functional attributes and tradition
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Customer perceptions andbehaviour - ASEAN continued
Both consumer and ingredient end-user can also be
influenced by factors such as:
Lactose intolerance
Concerns over allergens and
Marketing (brand) spending
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Future opportunity and challengeindicators in ASEAN include:
Population increases
Expanding middle income group
Sourcing of ingredients
Demand for healthy and nutritious products
Price sensitivity
Health food scares
Food price inflation/cost of living
Environmental
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3. Influences on Governmentregulatory measures in ASEAN
General tightening of infant formula follow on (IFFO) regulations and
Extension to include growing up milk powders (GUMPs) in marketing,
advertising and promotion restrictions
milk is not a natural part
of Asian diet
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4. Sustainability
Sustainability is not
The main issue is
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The broader commercial and policy context of
Growing global demand for proteins
Food security
Energy security
Climate variability
Trade Health
Food price volatility
Private sector standards
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In conclusion the dairy industry can:
Draw on strengths for example:
Nutritional and flavour profiles and
Long history of consumer use and preference
while effectively utilising opportunities in:
Health and wellness and
Specific market segments
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Three messages:
Growth
Compete
Integral
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Thank-you
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Background
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Protein Technology R&D:
Product Innovation Matrix
Impact of Technology
Technology Readily Available New Technology Concepts
ARCHITECTURAL INNOVATION
NICHE INNOVATION REVOLUTIONARY INNOVATION
INCREMENTAL INNOVATION
Milk Protein IsolateMilk Protein Concentrate
Whey Protein Isolate
Soy Protein Isolate
Soy Protein Concentrate
Whey Protein Hydrolysate
Whey Protein Concentrate
Soy Flour & Grits
Textured Soy Proteins
Casein
Potato Protein
Pea Protein
Wheat Protein
Canola Protein
Rice Protein
Dairy Proteins
Plant Proteins
Source: Frost & Sullivan
Exis
tingMarkets
NewMarketOpportunities
MarketOpportunity
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Food and drink companies are:
Likely to be receptive to industry developed sustainability indicators
and
Provided they meet their needs of demonstrating sustainability ofsupply