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Trends & Takeaways in the [Still]

Hot Protein Product MarketplacePresented by:

Lynn Dornblaser, Director,

Innovation & Insight

May 22-23, 2018

Agenda

Consumers:

What they

want, and what

they don’t

What we see:

Product

activity, key

product

examples

Inspiration

from outside

the US market

What’s ahead

3

Consumers are conflicted: They want

animal-based protein AND they want

plant-based protein

They see the benefits and advantages

of both

For plant protein, they choose it for

taste and health

But their preferences on what they

say they would buy differ depending

on the category

Consumers: What they want, and what they don’t

4

Say meat is essential to a balanced diet. Men are

more likely than women to agree.67%

Say plant-based protein is healthy70%

Say plant-based foods are more expensive than other

foods 57%

Say plant based foods are better for the environment

than animal based options 53%

Say a meal is not complete without meat51%

Source: Mintel

What US consumers say about protein

5 Source: Mintel

Looking closer: What consumers say about plant-based protein

52%

39%

39%

31%

16%

16%

13%

11%

10%

2%

10%

Taste

Health concerns

Avoiding processed foods

Weight management

Save money

Muscle growth

Environmental concerns

Animal protection

Eating a vegetarian diet

Other, please specify

None of the above

Reasons for plant-based food consumption, US

6

Snack/cereal/energy bars:

• High protein struggles regarding

flavor, price, and brand trust

Meal replacement drinks:

• Women and consumers 55+

don’t want high protein

Yogurt:

• Strength of Greek yogurt;

women 55+ prefer high protein

Meat snacks:

• High protein most favored by

men and 18-34s

Prepared meals:

• High protein meals chosen as

an addition to their repertoire;

most chosen by 35-54 year olds

Looking at what consumers say they would buy, we see patterns differ from one

product subcategory to another. A look at the five most active subcategories regarding

protein claims:

Source: Mintel Purchase Intelligence

Consumer preferences differ by category, for many reasons

29%

19%

46%

31%34%

41%

19%

43%

28%

34%

Snack/

cereal/

energy bars

Meal

replacement

drinks

Yogurt Meat

snacks

Prepared

meals

Purchase intent, selected subcategories, US

High protein All other

7

Overall introductions of products

making a protein claim continue to

grow, but North America has the

greatest percentage of all intros

Not all categories or subcategories

are created equal: Snacks drive

introductions

While some plant-based categories

show drops, plant based yogurt

expands

Mainstream restaurants expand their

plant-based offerings

What we see: Product activity, key product examples

8 Source: Mintel GNPD

Products making a protein claim continues to grow

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2013 2014 2015 2016 2017 2018

New food and beverage product introductions, global, making a protein claim, 2013-May 2018

9 Source: Mintel GNPD

But the pattern is different depending on region

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

Middle East &Africa

Latin America North America Europe Asia Pacific

Food and beverage introductions with a protein claim, 2013-May 2018, by region, as % of all introductions

10 Source: Mintel GNPD

A closer look at the US market: Protein continues to grow

0%

1%

2%

3%

4%

5%

6%

2013 2014 2015 2016 2017 2018

US new product introductions with a protein claim, 2013-May 2018, as % of all introductions

11 Source: Mintel GNPD

The most active categories are the ones you would expect

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017 2018

US product introductions with a protein claim, by most active categories and all other, 2013-May 2018

Snacks Other

Dairy Other Beverages

Processed Fish, Meat & Egg Products Meals & Meal Centers

12 Source: Mintel GNPD

Just over half of all products come from only five subcategories

0%

10%

20%

30%

40%

50%

60%

2013 2014 2015 2016 2017 2018

US product introductions with a protein claim, most active subcategories, 2013-May 2018

Snack/Cereal/Energy Bars Meal Replacements & Other Drinks

Spoonable Yogurt Meat Snacks

Prepared Meals

13

Kind Protein From Real Food

Double Dark Chocolate Nut

Bar

Chobani Hint of Madagascar

Vanilla & Cinnamon Low-Fat

Blended Greek Yogurt

Ancient Nutrition Pure Bone

Broth Protein Powder

Oberto All Natural Pepperoni

Jerky

Sweet Earth Enlightened

Foods Korean Japchae

Most active categories: A few examples

14

Seapoint Farms Organic

Edamame Soybeans in

Pods

Bob's Red Mill Grains-Of-

Discovery Organic Whole

Grain Amaranth

Lifeway Probiotic Plain

Unsweetened Kefir

Cultured Lowfat Milk

Smoothie

Vegetables: Focus on

inherent goodness

Side dishes: Growth of

Amaranth

Drinking yogurts:

Paired with probiotics

Innovation from other subcategories

15

Kodiak Cakes Power

Cakes Protein Packed

Buttermilk Flapjack and

Waffle Mix

Pero Family Farms

Southwest Plant-Based

Protein Salad Kit

Beyond Meat Beast Burger

2.0

Baking mixes: Adding

health to indulgence

Meal kits: All about the

plant protein

Meat substitutes:

Growing in popularity

Innovation from other subcategories

16 Source: Mintel GNPD

A closer look: Three subcategories all about plant protein

0

20

40

60

80

100

120

2013 2014 2015 2016 2017 2018

US new product introductions, selected subcategories, 2013-May 2018

Plant Based Drinks (Dairy Alternatives)

Meat Substitutes

Plant Based Spoonable Yogurts (Dairy Alternatives)

17

Walmart’s Great Value

Original Unsweetened

Almondmilk

True Goodness by Meijer

Beet Burger

Ripple Blueberry Greek

Yogurt Alternative

Plant based drinks:

Growth from private

label

Meat substitutes:

Growth from private

label

Plant based yogurt:

Unique base

ingredients

Innovation in plant-based products

18

Panera Bread

Roasted Beet, Quinoa &

Citrus Salad

Arugula, romaine, kale, and radicchio

blend and pickled red onions tossed

in apple cider vinaigrette and topped

with quinoa, Gorgonzola, roasted

beets, mandarin oranges, and

toasted pecan pieces.

Image via Panera Bread

Chick-fil-A

Harvest Kale & Grain Bowl

Red quinoa, white quinoa, farro,

roasted butternut squash, and diced

apples on a bed of chopped kale

topped with a goat and feta cheese

blend and tart dried cherries. Served

with a blend of roasted nuts and

light balsamic vinaigrette.

Image via Chick-fil-A

TGI Friday’s

Black Bean & Avocado

Burger

With spicy mayo made with

Tabasco chipotle pepper sauce,

Monterey Jack, white cheddar, and

cola onions.

Image via TGI Friday’s

Pecan +18%

Menu incidence

Q2 2015-Q2 2017

Quinoa +25%

Menu incidence

Q2 2015-Q2 2017

Black bean burger +32%

Menu incidence

Q2 2015-Q2 2017

Source: Mintel Menu Insights

What we’ve seen on restaurant menus

19

While many product types and forms

that make a protein claim are similar

to what we see in the US, there are

some standouts that are different.

Each of the products that follow can

help inspire your US product

development.

And all but the last one are here for

you to taste!

Inspiration from outside the US market

20

Snickers Protein Milk

Chocolate High Protein Bar

with Caramel Filling and

Peanuts, Switzerland

Easis Sour Cream & Onion

Chips, Denmark

LighterLife Fast Raspberry

Mousse, UK

Chocolate

confectioneryPotato snacks

Shelf stable dessert

mixes

Unexpected categories for protein claims

21

Snack in a “ball” format—eat

one or all in the package

Common in the UK market,

unknown here

Bounce Apple & Cinnamon Protein

Punch Energy Ball, Netherlands

Bovril High Protein Beef Paste, UK

Unexpected formats (for the US) for high protein products

22

Soy based drink, a major

European seller

Oat-based drink, a common

format in Northern Europe

Danone/Wave’s Alpro Unsweetened Soy

Drink, Europe

Orkla’s Get Started by Nutrilett

Raspberry & Oat Shake, Finland

Unexpected (for the US) base ingredients

23

Look for continued growth in the

protein claim

Also expect more plant-based

offerings, especially those that use

new types of base ingredients

Where protein may be coming from in

the future:

• Drinks made from egg protein

• Protein from insects (ICK!)

• Meat from the lab

What’s ahead

24

Peck - a new high-protein drink for busy consumers

A new egg-based, dairy-free drink, containing 20g of protein from 5 egg whites per bottle, with no artificial

colours, flavours, sweeteners and preservatives, made using eggs that don’t make it to store shelves

because of size or shell discolorations.

Read on mintel.com

Source: Peck

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24

25 Image source: Memphis Meat

Lab-grown meat has come a long way, but has a long way to go

Maastricht University (NL)

€250,000 ($330,000) for 5oz burger

from cow shoulder stem cells

Memphis Meat (US)

$18,000 per lb

Lab-grown meatball

Memphis Meat (US)

$9,000 per lb

Meatless duck

and chicken tenders

Hampton

Creek (US)

Goal: Lab-

grown meat

to market

2018

Memphis

Meat)

Goal:

Commercially

available

2013

2016 2017 2021

Mosa Meat (NL)

Working on fat tissue

developmentIntegriculture

Goal: Lab-

grown

foie gras

commercially

available

Integriculture (JP)

Cultured chicken

pancreas, liver,

muscle and

intestine cells

26

A way in with insect protein would be to use

them in a way less visible to consumers. In

China, Real Nutriceutical Shun launched a

range of nutritional drinks that contains

silkworm protein, but this is not overtly

promoted on-pack to the consumer.

Consumers in Canada are simply not interested in insect protein to date; we can

assume the data would be similar to the US market. However, companies are finding a

way to make the idea more palatable.

Source: Mintel

Insect protein: Ick factor high in US, but there’s a good message

76%

47% 42%31%

19%8% 4%

12%

23% 24%

20%31%

26%12%

12%30% 33%

49% 50%66%

85%

0%

25%

50%

75%

100%

% a

gre

e

Canada: 'what foods/ingredients do you use or are you interested in using

instead of meat protein?', Nov 2017

Don't use and not interested

Don't use but am interested in using

Currently use

Real Nutriceutical

Shun amino acid

drink contains

silkworm powder

27

Look for continued growth in the

protein claim

Also expect more plant-based

offerings, especially those that use

new types of base ingredients

Where protein may be coming from in

the future:

• Drinks made from egg protein

• Protein from insects (ICK!)

• Meat from the lab

What’s ahead

mintel.com

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THE WORLD’S LEADING

MARKET INTELLIGENCE AGENCY

Our expert analysis of the highest quality data and market research will help you grow your business.

Lynn Dornblaser

Director, Innovation & Insight

312 450 6117

lynnd@mintel.com

@LynnMintel

Thank you