PMA FRESH CONNECTIONS MEXICO
Querétaro, Mexico
May 15-16, 2014
Trends into Tactics: A Fresh Look at
What Consumers Want
May 15, 2014
PRODUCE MARKETING ASSOCIATION
GLOBAL TRENDS IN FOOD
CONSUMPTION
Euromonitor International
May 15, 2014
PRODUCE MARKETING ASSOCIATION
Euromonitor International Overview
Global provider of strategic market intelligence
12 regional offices - 800+ analysts in 80 countries
London Chicago
Singapore
Cross-country comparable data and analysis
Shanghai
Consumer focused industries, countries and consumers
Dubai
Forecasts with matching trend analysis
Vilnius
All retail channels covered
Subscription services, reports and consulting
Cape Town
Santiago
Tokyo
Sydney
Bangalore
PRODUCE MARKETING ASSOCIATION
Research Methodology
PRODUCE MARKETING ASSOCIATION
World Ag Exports near $1.8 Trillion
Total World-to-World Exports of Agricultural
Products in US$ Billions
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
1980 1990 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Figure for 2013 is a projection based on partial year results.
PRODUCE MARKETING ASSOCIATION
Mexico and the World in 2030
PRODUCE MARKETING ASSOCIATION
Consumers have more to spend..
Regional Disposable Income: Historic & Forecast in
US$ billions
$20,000
$18,000
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
60%
50%
40%
30%
Yr 2011
Yr 2020
% Growth
20%
10%
0%
PRODUCE MARKETING ASSOCIATION
…and will spend more on food
PRODUCE MARKETING ASSOCIATION
Organic and natural gain popularity
PRODUCE MARKETING ASSOCIATION
Are shoppers willing to pay more?
‘I am willing to pay more for a product that is _’
% respondents willing
to pay more
60
50
40
30
20
10
0
Natural
Organic
Locally sourced
Free range
Fair trade
Carbon neutral
- Natural trumps all other attributes
- Carbon neutral is much less appealing than natural
PRODUCE MARKETING ASSOCIATION
Global Fresh Food Forecast Growth
PRODUCE MARKETING ASSOCIATION
CAGR Packaged Foods Forecast
PRODUCE MARKETING ASSOCIATION
Category growth from healthier items
Global snack food
categories with a
better nutritional
profile across a
range of wellness
trends, from weight
management to
digestive health to
immune system
support, registered
growth well above
the average for
packaged food in
2013.
PRODUCE MARKETING ASSOCIATION
Naturalness and healthy eating
PRODUCE MARKETING ASSOCIATION
Weight loss leads health positioning
PRODUCE MARKETING ASSOCIATION
Regional growth of foodservice
PRODUCE MARKETING ASSOCIATION
Regional growth of grocery retailing
PRODUCE MARKETING ASSOCIATION
Upscale retailers – Whole Foods
2013 Sales: US$13.2 billion
2013 Outlet Count: 363 stores
Sales Growth 2008-2013: 75.3%
Competitive Strengths: Whole Foods
Market’s outlets are packed with a
wide range of vibrant, brightly-coloured
fresh fruits and vegetables. Across the
board, the retailer’s most important
goal is to offer products that are of the
highest quality, being as natural and
unprocessed as possible.
Relative Weaknesses: One of the greatest
hurdles Whole Foods has faced is its
reputation for being a very expensive
retailer. Nicknames such as “whole
paycheck” have dissuaded some
customers from shopping at Whole
Foods, and the retailer has looked to
combat this image.
PRODUCE MARKETING ASSOCIATION
Ingredients - Less is more
§  Strong focus on cleaning up product
labels in terms of the number of
ingredients featured.
§  Absence of ingredients with
chemical-sounding names;
§  Use of natural ingredients that are
understood and recognised by the
consumer
§  Fewer ingredients overall.
§  Reformulations to remove unwanted
artificial ingredients.
§  “All natural” is becoming increasingly
common
§  Fruits and vegetables can capitalize on
this image
US: Häagen-Dazs
Five ice cream
Skim milk, cream,
sugar, egg yolks,
mint extract
UK: Eat Natural with dates, walnuts and
pumpkin seeds
Dates 24%, walnuts 17%, glucose syrup,
sultanas 13%, crisped rice (rice, sugar),
pumpkin seeds 8%, honey, dried apricots
6%.
PRODUCE MARKETING ASSOCIATION
First portable fruit snack in Peru
Peruvian middle-class consumers
have the need for convenience and
are now economically empowered
to buy packaged snacks that offer
it.
The new line is the first packaged
preserved peach product intended
to be consumed on the go. It
targets middle-class consumers
and white-collar workers happy to
pay for a premium for the
convenience of its portability.
Aconcagua Light
GW Yichang &
Cia SA
PRODUCE MARKETING ASSOCIATION
Summary
•  Global food demand driven by population and economic
expansion
•  Highly resilient to downturns
•  Developing regions drive much of future growth
•  Consumers seeking out healthier options
•  Have shown a willingness to pay a price premium for
these benefits
•  Innovation begins to center around fewer, simpler
ingredients and convenience
PRODUCE MARKETING ASSOCIATION
Thank you for listening
Carlos Otero
Regional Sales Manager, Latin America
Tel: +1 312-922-1115 ext. 8263
Email: [email protected]
PRODUCE MARKETING ASSOCIATION