beyond the meat case: how digital technologies impact meat · fish/seafood legumes/nuts/seeds leafy...
TRANSCRIPT
Beyond the Meat Case: How Digital Technologies
Impact MeatMeagan Nelson – Associate Director, Nielsen
Tuesday, March 3, 2020 10:15 AM – 11:15 AM
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te. WHAT WE WILL COVER
5
What are the emerging shopper behaviors?
What is the expected impact of digital?
What does the new grocery landscape look like?
Building A Future Driven Meat Strategy
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5
What are the emerging shopper behaviors?
What is the expected impact of digital?
What does the new grocery landscape look like?
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te. THE BEST OF (HEALTHY EATING) INTENTIONS
% Respondents who claim:
Source: Nielsen Homescan U.S. survey of 19,988 and 18,627 respondents, respectively, surveyed in July and August 2019
COMPARED TO
5 YEARS AGO…
IN THE NEXT
5 YEARS…
EATING HEALTHFULLY IS
EASIER THAN…
BELIEF PROGRESS POTENTIAL
55% “Exercising Regularly”
46% “Earning a Living”
40% “Buying the right clothes
for my body type”
39% “Doing my Taxes”
36% claim they eat smaller portions
of food at each meal
49% have changed their eating habits
to maintain their overall health
43% have changed their eating habits
for weight loss
32% plan to eat more food that’s cooked
or prepared at home
34% claim they’ll eat less frequently at
fast food outlets
34% claim they’ll drink beverages for
health benefits than hydration
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te. HIGH PROTEIN MAINTAINS IMPORTANCE
Source: Nielsen Health Care Survey, 2019
HEART HEALTHY LOW SUGAR HIGH PROTEIN LOW SODIUMFREE OF HIGH FRUCTOSE
CORN SYRUP
58% 56% 54% 52% 51%
NATURAL HIGH FIBERFREE OF ARTIFICIAL
INGREDIENTS
VITAMINS / MINERALS
PRESENCELOW FAT
51% 50% 50% 47% 46%
FOOD ATTRIBUTES THAT ARE IMPORTANT IN DECIDING WHAT TO BUY
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77%
58%
52%
27%
17%
16%
9%
7%
6%
2%
2%
MEAT
EGGS
DAIRY
FISH/SEAFOOD
LEGUMES/NUTS/SEEDS
LEAFY GREENS
WHOLE GRAINS
MEAT ALTERNATIVES
MILK ALTERNATIVES
NON-VEG PROTEIN SUPP.
VEGETARIAN PROTEIN SUPP.
OPTIONS FOR PROTEIN ONLY CONTINUE TO EXPAND
Source: Nielsen, US Homescan Panel Protein Survey, December 2019
% of respondents stating product is a primary source of protein (up to three selections)
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te. SHIFTS ARE EXPECTED, BUT NOT EN MASSE
Percent of consumers planning to consume about the same amount, more or less in the next 12 months
Source: Nielsen, US Homescan Panel Protein Survey, December 2019
7888 81
6672
6662
30
40
31
24
11
18 14
27
13
57 46 58 66
MEAT EGGS DAIRY FISH NUTS GREENS GRAINS ALT.
MEAT
ALT.
MILK
NON-
VEG
SUPP.
VEG
SUPP.
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64%
21%
15%
How often do you eat meals
that do not contain meat?
14% of consumers have actively
replaced meals containing meat with plant-based food options in last 3 months
MEAT NOT ALWAYS CENTRAL TO THE MEAL
Source: Nielsen, US Homescan Panel Protein Survey, December 2019
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te. INNOVATION IN MEAT ALTERNATIVES
Source: Nielsen Total Food View, Total U.S. xAOC, 52 weeks ending 12/28/2019, UPC-coded and random-weight/Non-UPC data, Nielsen Homescan Panel 52 weeks ending 3/23/19
$994M+13.2% Dollars
+9.6% Units
21.6% of households purchase meat
alternatives, +1.6pts, or ~2 million households
Of meat alternative buyers, only 27% purchase 5 or
more times a year
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te. SOCIAL CAUSES DRIVING DECISION MAKING
15%
I do not think
changing meat
consumption habit will
have a measurable
impact
Source: Nielsen Omnibus Survey, December 2018
61%
Reduce meat consumption
WHAT ARE CONSUMERS WILLING TO DO TO ALTER LIVESTOCK’S IMPACT ON CLIMATE CHANGE?
43%
Replace meat based protein with plant based
protein alternatives
22%
Become Vegetarian or Vegan
12%
Eat cell cultured
meat grown in a
lab
8%
Replace meat based protein with bug/insect
based protein
alternatives
BUY LOCAL ANTIBIOTIC
USE IN ANIMAL
PRODUCTION
FOOD WASTE IN
HOME LIVESTOCK IMPACT ON
CLIMATE CHANGE
PERCENT OF CONSUMERS AWARE OF TOPIC
46%
#1
32%
#5
23%
#10
16%
#14
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5
What are the emerging shopper behaviors?
What is the expected impact of digital?
What does the new grocery landscape look like?
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o n
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te. THE SIZE OF THE PRIZE HAS INCREASED
Source: Nielsen Total Ecommerce Measurement powered by Rakuten Intelligence, 52 weeks ending 10/31/19; Nielsen xAOC + Convenience 52 Weeks Ending 11/2/19
2016 PROJECTION
On-line food and beverage sales and
percent of sales by 2025
$103B 20%
The rationale for the projected increase in sales is driven by four key previously unconsidered factors
in the original size of the prize estimate
1. Growing Impact of Click and Collect
and Home Delivery
2. Food/Meal Service at Grocery
3. Home delivery of Food from
Restaurants
4. Subscription and Auto replenishment
2019 PROJECTION
On-line food and beverage sales and
percent of sales by 2025
$143B 18%
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te. OMNICHANNEL TO OMNISHOPPER POSITIONING
Our research resets the industry digital agenda from channels to shoppers
HouseholdsShopping In-Store
HouseholdsShopping Online
The industry is at an inflection point
Source: Nielsen Homescan Panel
The Omnishopper
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OMNISHOPPERS REPRESENT 44% OF HOUSEHOLDS
Source: Nielsen Homescan Trip Projection; L52 WE 10/26/19 vs. 2YA; Total US; Omnishopper defined as HHs purchasing in-store and online
Over 54M households shopped in-store & online accounting for $400B in spending power
HouseholdsShopping In-Store
HouseholdsShopping Online
These households have integrated both channels as “convenience driven”
paths to purchase
OMNISHOPPER HOUSEHOLDS
4851
54
2017 2018 2019
% of HHs 39% 41% 44%
BUYING HOUSEHOLDS
In Millions
+14%Chg. vs. 2YA
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Double digit over the past three years
Source: Nielsen Homescan Trip Projection; L52 WE 10/26/19 vs. 2YA; Total US; Omnishopper defined as HHs purchasing in-store and online
OMNISHOPPER DOLLARSIn Billions, Food vs. Non Food
$245 $279 $302
$105 $112
$117
$350$391
$419
2017 2018 2019
+20%Chg. vs. 2YA
Total
+23%Chg. vs. 2YA
Food
+12%Chg. vs. 2YA
Non Food
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te. WHO IS THE OMNISHOPPER?
Source: Nielsen Homescan Trip Projection; L52 WE 10/26/19 vs. 2YA; Total US; Omnishopper defined as HHs purchasing in-store and online
Older income households are the leaders in moving toward integrated on-line and in-store shopping
14.8%
15.0%
16.8%
18.4%
15.0%
Age Under 35
Age 35 to 44
Age 45 to 54
Age 55 to 64
Age 65+
Share of Omnishopper HHs
8.0 96
8.1 96
9.0 101
9.9 107
8.1 101
# of HHs
(in MM)
Index to
TUS
OMNISHOPPER BY AGE
12.9%
15.7%
18.8%
20.7%
15.4%
12.9%
16.2%
19.0%
20.5%
15.0%
13.2%
15.0%
18.5%
21.3%
16.5%
Age Under 35
Age 35 to 44
Age 45 to 54
Age 55 to 64
Age 65 and Over
Share of Omnishopper Dollars
$10.3
$15.7
$12.3
$19.6
$12.2
Total $B chg.
vs. 2YA
Total Food Non Food
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te. WANT TRIP GROWTH – ENGAGE OMNISHOPPERS
Source: Nielsen Homescan Trip Projection; L52 WE 10/26/19 vs. 2YA; Total US; Omni Shopper defined as HHs purchasing in-store and online
Omnishopper households are spending an additional $1,000 and making 40 more trips per year than
the average shopper
TOTAL – ALL CATEGORIES AVERAGE SHOPPER OMNI SHOPPERS
Dollars Per
Buyer$6,989 $7,954
Basket Size $33.0 $31.4
Purchase
Frequency211.6 trips 253.3 trips
Purchase
Cycle4.0 days 3.3 days
% of Dollars
Sold on Deal18.5% 19.2%
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OMNISHOPPERS WILL INFLUENCE OVER $630B
IN SPEND BY 2025
Source: Nielsen Homescan Trip Projection; L52 WE 10/26/19 vs. 2YA; Total US; Omnishopper defined as HHs purchasing in-store and online; *Projection based on “forecast”
function in Excel using the past three years of data available
The 74M households are an expected baseline with significant upside growth potential
OMNISHOPPER DOLLARSFood and Non Food
245 279 302 332
105112 117
124350
391419
456
2017 2018 2019 2020
Food
Non Food
Total
For every additional million
Omnishopper households
$8.4B of sales is impacted
Varying Household Estimates
476 510 542
155166
176
631676
718
2025 74.7M 2025 80M 2025 85M
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Fulfillment cost and convenience factors will ultimately influence how Omnishoppers get their
purchases delivered
Source: Nielsen Homescan Trip Projection; L52 WE 10/26/19 vs. 2YA; Total US; Click & Collect vs. Home Delivery; *Projection based on “forecast” function in Excel using the
past three years of data available
CLICK & COLLECT HOME DELIVERY
2019 Share of Online Sales
29%2019 Share of Online Sales
71%
16%21%
29%33%
36% 39% 41% 43% 45%
2017 2018 2019 2020* 2021* 2022* 2023* 2024* 2025*
84% 79%71% 67% 64% 61% 59% 57% 55%
2017 2018 2019 2020* 2021* 2022* 2023* 2024* 2025*
Share Projection Share Projection
FULFILLMENT STRATEGIES CONTINUE TO EVOLVE
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o n
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Source: online search of merchant’s site
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5
What are the emerging shopper behaviors?
What is the expected impact of digital?
What does the new grocery landscape look like?
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ABOVE AVERAGE
FRESH ITEMSPerishables contributes 14%
of items
ABOVE AVERAGE
FRESH SALES 43% of store sales come
from perishable foods
TOP FRESH RETAILERS A GLIMPSE OF THE FUTURE
HIGHER STORE
GROWTH OVERALL $720K more per store on
total food and bev
Source: Nielsen Total Food View 52 Weeks Ending 8/3/19
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o n
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te. INCLUSION PARTICIPATION TRANSPARENCY TRUST
THE PATH TO TECHNOLOGY
ADOPTION IS NOT LINEAR
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te. AMPLIFY THE REALM OF RETAIL
Ramp up physical shopping experiences with navigation apps
Source: Nielsen Tech Consumption Global Survey. Which of the following are you willing to use, “navigation app” if they are available to you, in the next 2 years?
33%
COMBINE
AUTOMATION
& INTELLIGENCE
USING
Data interpretation must become
more intelligent to personalise,
predict and recommend
MOVE FROM NOVEL
TO EFFICIENT TO FUN
43%WILLING TO USE
Consumers will adopt store tech if it
alleviates time and ease and
provides seamless interactions
NAVIGATION
APPS
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VIRTUAL RETAIL WALLS AND SHELVES IN
CONVENIENT, COMMUTER LOCATIONS CAN
REPLACE COSTLY REAL ESTATE AND STOCK, AS
WELL AS REDUCE BARRIERS TO RETAIL SETUP
IN DEVELOPING MARKETS.
RETAIL EVOLUTION
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o n
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te. REACH OUT WITH RELEVANT CONTENT
Amplify mass advertising with meaningful marketing moments for ME
Source: Nielsen Tech Consumption Global Survey. Which of the following are you currently using or willing to use, if they are available to you, in the next 2 years?
USING
WILLING
Receive ads /
recommendations on a
connected device to make
purchases, based on
personal data.
Informative, individual
content aids decisions,
& leads to purchases
INDIVIDUALISED CONTENT
MEANS CONSUMERS ARE
1.7xMORE LIKELY
MAKE PURCHASES
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DIGITAL ‘DUPLICATES’ MAY BECOME THE
DECISION MAKERS, CHOOSING CONTENT AND
BRANDS TO ADD, REPLACE OR ELIMINATE.
LOYALTY WILL EITHER BE LOCKED IN OR OPEN
TO ASSISTANT EXPLORATION AND
RECOMMENDATION.
BRAND EVOLUTION
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WHERE IS ARTIFICIAL / VIRTUAL REALITY HEADED?
CURRENTLY
USING
WILLING TO USE
69%FUTURE
POTENTIAL
PREREQUISITES INTERACTION DRIVERS ADOPTION
● EXPERIENTIAL
● ENGAGING
● FUNCTIONAL
● TRANSACTIONAL
● PREFER TO PHYSICAL
● ENTICE TO BUY
● CONVENIENT
● SAVES TIME
● SPEND
● CATEGORIES
● REPERTOIRE
● FREQUENCY
CONSUMERS ARE
OPEN TO A/VR
TECHNOLOGY
Source: Nielsen Tech Consumption Global Survey. Which of the following, if available, are you willing to use (not willing) to benefit more from technology in the next 2 years? Augmented / Virtual Reality
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te. FRINGE TECH IS TENTATIVE
Regulatory, logistical and ethical considerations
Source: Nielsen Tech Consumption Global Survey. Which of the following, if available, are you willing to use (not willing) to
benefit more from technology in the next 2 years?
DELIVERY PERSONALISATION TRANSACTING
Autonomous
Driverless
cars
Drone
delivery
(to geo-
locations)
Give access
to personal
locations (home,
car) for
deliveries
3D printing
to get custom
products
Personal
AI advice
(medical,
diet, content)
Social
conduct
determine
discounts/
rewards
Transact via
implanted
microchip
Transact via
digital / crypto
currency
NOT
WILLING
WILLING
26.6% 27.2% 27.2%23.9%
29.1 %
22.6%
35.4%37.0%
31
BUILDING A FUTURE
DRIVEN MEAT
STRATEGY
32Co
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US
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ry. D
o n
ot d
istr
ibu
te. WINNING DEMANDS SEAMLESS STRATEGIES
Your supply chain has to support the physical and
digital shelf to seamlessly serve the shopper
Understanding your shopper – Omnishopper – is
foundational
Engage with consumers to provide experience,
education and transparency through innovative
technologies
Thank You!
33Co
pyri
gh
t ©
20
20
Th
e N
iels
en
Com
pa
ny (
US
), L
LC
; .a
nd
, T
he
Dia
log
ic G
rou
p, L
LC
. C
on
fid
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l a
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pro
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