nordic health and wellness - finnish food...

NORDIC HEALTH AND WELLNESS

BETWEEN SCIENTIFIC AND NATURAL HEALTH

PRESENTED BY DAVID INGEMAR HEDIN, RESEARCH ANALYST

MALMÖ, NOVEMBER 17, 2016

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INTRODUCTION

THE RETURN OF SCIENTIFIC HEALTH

VEGETARIAN AND FLEXITARIAN

ORGANIC GROWTH CONTINUES

FROZEN FRUIT CONSUMPTION

PROTEIN RICH FOOD

FREE FROM GLUTEN BECOMES ADDED VALUE

CAN FREE FROM LACTOSE “DO A FINLAND”?

MARKETING OF VITAMIN FORTIFICATION

SUMMARY

Picture: usefulweightlossideas.blogspot.com


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The Nordics – the sporting part of Europe INTRODUCTION

Source: Special Eurobarometer 412 – Sport and Physical Activity, European Commission (2014)

Percentage of respondents answering never: How often do you exercise?



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Official recommendations of nutrition such as the Nordic Dietary Guidelines by the Nordic Council of Ministers affect company strategies and consumer choices, not least long term through the normative effect of the practices of schools, army and hospitals.

Government

Companies that have been long in a market with innovative products influence the national understanding of healthy.

Companies

Consumers share information, blogposts, debate articles, NGO-reports, commercials and other material that influence the social understanding of healthy.

Companies market new products through blogs, Facebook, Instagram etc.

Social media

What entities shape the understanding of health? INTRODUCTION

Pictures: open source


INTRODUCTION





PROTEIN RICH FOOD




SUMMARY



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Support for added vitamines in Sweden and voluntary fortified launches

Lactase enzyme used to replace sugar and other sweeteners in Finland

Use of articifcial sweeteners frequents in recent trendy launches

Valio ValSa, salts from different minerals extracted from milk which reduces the NaCl consumption without reducing flavour

Examples of scientific health THE RETURN OF SCIENTIFIC HEALTH



9 THE RETURN OF SCIENTIFIC HEALTH

Picture: Njie Group AB



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Social media increases its importance

Consumers are interested to learn more about what really is healthy

Individualism increases the segmentability of the market

What can we learn from this? THE RETURN OF SCIENTIFIC HEALTH



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Other opinions about artificial sweeteners THE RETURN OF SCIENTIFIC HEALTH



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An argument for health positioned indulgence products

”Once upon a time, a healthy lifestyle meant choosing a carrot over a chocolate ball, but today it is different. Thanks to a better understanding about how our body reacts to different substances and what really makes people fat and tired, there are now healhty products that both taste well and do well.” – Delicato AB, 2016



INTRODUCTION





PROTEIN RICH FOOD




SUMMARY



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Environmental concerns – wish to reduce meat consumption

Health concerns – wish to substitute meat for green proteins

Animal rights concerns - wish to improve animal welfare

Social concerns – at the BBQ, hosts prefer to give a similar product to everyone

Growth for meat substitues in retail and food service VEGETARIAN AND FLEXITARIAN

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Meat substitutes

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Finland

Norway

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Retail rsp sales organic packaged food in million EUR, curr, y-o-y exchange rate



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Commercials highlighting the benefits of meat-free diets/reduced meat diets

Retailers are expanding their private label assortments

Garant Hej Vego

Vegetardag

Branded goods are challenging private label on both price and quality

The retailers’ influence VEGETARIAN AND FLEXITARIAN



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New product development in meat substitutes

Origin:

Story:

Source:

Norway, 2016

High protein meat substitute from sustainable and super

healthy peas. Connects to the practise of fasting from

meat one day per week.

Origin:

Story:

Source:

Sweden, 2016

Slow cooked wheat that after 20 minutes heating in the

oven can be used in tacos or wraps. Contemporary and

everyday cooking.

Coop Norge Handel As

Axfood AB




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New product development in meat substitutes

Origin:

USP:

Source:

Denmark, 2016

Organic snackable food marked with the healthy Keyhole

symbol and a man holding a flower and a heart, indicating

that it is good for nature and the personal health.

Origin:

USP:

Source:

Finland, 2016

Made from Nordic oats and mixed with bean based protein

to achieve its patented fibrous texture. Positioned toward

General wellbeing and has become 2016 market leader in

Finland in spite of supply problems.

Naturli Foods AS

Gold&Green Foods Ltd Oy



INTRODUCTION





PROTEIN RICH FOOD




SUMMARY



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Environmental concerns – wish to reduce environmental footprint

Health concerns – fear of chemicals in food and desire to avoid these

Social concerns – for some, organic becomes a social pressure as it is seen as altruistic consumption

No signs of saturation for organic growth ORGANIC GROWTH CONTINUES


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Organic Packaged Food

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Organic Bread

Organic Fromage Frais and Quark

Organic Baby Milk Formula

Organic Sauces, Dressings and Condiments

Organic Chocolate Confectionery

Organic Savoury Snacks Excl. Nuts, Seeds and Trail Mixes

Organic Bread

Organic Savoury Snacks Excl. Nuts, Seeds and Trail Mixes

Organic Fromage Frais and Quark

Organic Ready Meals

Organic Rice

Organic Soup

Denmark Finland

Norway Sweden

Fastest growing organic packaged foods categories per country ORGANIC GROWTH CONTINUES



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Larger focus on superlocal production.

There is a national strategic goal of 10% organic agriculture and 10% organic consumption by 2020, but it is unlikely to be met, even in Oslo.

As economy improves, consumers are likely to quickly increase their spending on organic food. Surveys show that many consumers have this intention.

The health argument will be the most important one.

Organic is already becoming a hygiene factor for the LOHAS consumer group.

Organic will become less of a niche and more of added value in a larger sustainability strategy.

Coop has a goal to contribute to the national doubling of organic consumption.

Coop is set to discount by DKK200 million per year in the coming five years. Dropping unit prices are expected to drive volume sales.

Sweden Denmark

Finland Norway

Future drivers ORGANIC GROWTH CONTINUES


INTRODUCTION





PROTEIN RICH FOOD




SUMMARY

Pictuer: usefulweightlossideas.blogspot.com


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Frozen fruit sales an example of a largely country specific trend

The main driver is smoothies in the morning or after sports

Food poisoning scares keep Danish consumption low

Nordic countries are not identical FROZEN FRUIT CONSUMPTION


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Frozen fruit

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Finland

Norway

Sweden



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Relatively high sugar content that is quickly consumed

Not on-the-go or with added convenience

Competition from juice and smoothies

Full of vitamins and minerals

Fresh alternative to juice

Suitable for physically active

Possible stimulants and downsides for future consumption FROZEN FRUIT CONSUMPTION

Picture: Ida Myrvold



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New product development in frozen fruit

Origin:

USP:

Source:

Sweden, 2016

Ready to mix, organic, portion packed, 100% berries.

Polarica AB




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Driven by health and wellness as well as food bloggers

Smoothie positioned frozen vegetables

Portion packs

Merger between fresh vegetables and frozen vegetables for smoothies

Danish domestic companies could source locally or from Sweden, promising food safety

Future potential FROZEN FRUIT IN SWEDEN

Picture: Ida Myrvold


INTRODUCTION





PROTEIN RICH FOOD




SUMMARY



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Finland has >40% of sports nutrition sold in grocery retailers

This impacts standard assortments

Strong dairy sector plays a driving role

Penetration even reaching confectionery

How mainstream can it get? PROTEIN RICH FOOD

Chart - Sports Nutrition Retail Value Split (RSP %) via Grocery Retailers, 2016



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Image - Shelf at a grocery retailer in Finland

The protein trend in Finland PROTEIN RICH FOOD



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New product development under the protein rich trend

Origin:

USP:

Source:

Finland, autumn 2015

Strongest countline brand in Finland, added with protein,

positioned as after exercise product

Origin:

USP:

Source:

Finland

Part of a large assortment of protein bars and chocolate

confectionery sold in grocery stores. More of a classic

protein bar.

Cloetta Suomi Oy

Leader Foods Oy

PROTEIN RICH FOOD



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Is quark the new yoghurt? PROTEIN RICH FOOD

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Fromage frais and quark

Denmark

Finland

Norway

Sweden

Protein is used as added value in dairy

Quark is becoming synonymous with protein

Risk that this becomes commoditized and stops adding value


INTRODUCTION





PROTEIN RICH FOOD




SUMMARY



33

Finland is held back by economic downturn

Celiac disease sufferers no longer get their monthly 28 euro subsidy

Free from gluten is used as added value to drive sales in Norway

Artisanal free from gluten bread is common in Norway

New free from gluten launches FREE FROM GLUTEN BECOMES ADDED VALUE

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Free from gluten packaged food

Denmark

Finland

Norway

Sweden




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New product development in free from gluten baked goods FREE FROM GLUTEN BECOMES ADDED VALUE

Origin:

Story:

Source:

Sweden, 2016

Free from gluten, ancient nutrition, significant part of a

”normal” assortment. Granola based on sorghum, oats,

and buckwheat, mixed with berries and chia seeds.

Source of zink, vitamin B7, fibre and fosfor.

Origin:

Story:

Source:

Norway, 2014

This was a very successful launch from the leading pizza

manufacturer, launched with the Norwegian Celiac society

on consumer request, connecting to media about gluten.

Orkla Foods Norge AS

Finax AB

Origin:

Story:

Source:

Norway, 2016

This is a gluten free liver paste, which has removed some

gluten containing ingredients to achieve the gluten free

labelling on an otherwise naturally gluten free product.

Orkla Foods Norge AS



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Direct Indirect

More naturally gluten free products being labelled gluten free

Foodservice offerings increasing

Gluten free becoming a mark of responsible production

Gluten free becoming a mark of quality

Where is free from gluten going in the Nordic countries?


Picture: Orkla Foods Norge AS


INTRODUCTION





PROTEIN RICH FOOD




SUMMARY



37 CAN NORDIC FREE FROM LACTOSE “DO A FINLAND”?

Free from lactose dairy per capita and per capita growth

Finland is the outstanding global leader per capita

Norway has the best relative forecast

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Per capita free from lactose consumption and growth

Per capita consumption EUR

CAGR Growth 2016-2021



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• Marketing free from dairy alternatives

• Expanding assortment to attract wider target groups

• Adding value with animal welfare and organic production

• Informing consumers about naturally low lactose content

Different approaches to lactose free

CAN NORDIC FREE FROM LACTOSE “DO A FINLAND”?

Pictures: Arla Foods AB and Oatly Sverige AB



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Free from lactose product development in Finalnd CAN NORDIC FREE FROM LACTOSE “DO A FINLAND”?

Origin:

USP:

Story:

Source:

Finland, 2016

Lactose free children’s yoghurts with low sugar content

This 2016 launch targets children while promising parents

less sugar. The #Sokeritalkoot (sugar on trial) hashtag

brings attention to the importance of limiting sugar intake. Valio Oy

Origin:

USP:

Story :

Source:

Finland, 2015

Drinkable, lactose free kefir with probiotics and vitamin D

Valio is betting that the Kefir trend will spread from the US.

The launch is Americanised by means of a competition for

a journey to New York where Kefir is extremely trendy. Valio Oy



40 CAN NORDIC FREE FROM LACTOSE “DO A FINLAND”?

Free from Dairy per capita

Finland har the 2nd in the world highest per capita consumption

Finland and Norway has the best relative forecasts

Sweden, in spite being the home of Oatly, is behind Finland

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Per capita free from dairy consumption and growth

2016 Per capita consumption

CAGR Growth 2016-2021



41 FREE FROM LACTOSE AND GLUTEN

G = Free from gluten

L = Free from lactose

M = Free from dairy

Ä = Free from egg

VGN = Free from meat

P = Contains pepper

S = Contains celery

University lunch menu

from Åbo, Finland



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Grocery retail – the main food channel

Internet retailing – great for entering new markets

Hotels – breakfast for everyone launched in Sweden

Food service – menu labelling standard in Finland

Medical institutions – donating free from start kits

New channels for free from gluten and lactose FREE FROM LACTOSE AND GLUTEN

Picture: open source


INTRODUCTION





PROTEIN RICH FOOD




SUMMARY



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Dietary Reference Values for nutrients with emphasis on the scientific evidence for the role of food in prevention of major diet related chronic diseases.

Influences companies product development

Results in media coverage on what to eat

Influences national legislation and advice regarding health and food

“Studies from Denmark show that serum 25(OH)D concentrations are generally low during wintertime with between 50% and 90% of the study population having insufficient status”

- Nordic dietary guidelines 2012 (2014)

“In a study on Icelandic adults aged 30 to 85 years … those not taking vitamin D supplements, including cod liver oil … were below 50 nmol/L throughout the year”

- Nordic dietary guidelines 2012 (2014)

Nordic dietary guidelines 2012 (2014) MARKETING OF VITAMIN FORTIFICATION

Source: Nordic dietary guidelines 2012 (2014)



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Instrumental in maintaining normal calcium concentration in the blood plasma

Without it, the skeleton does not develop and maintain, but instead softens

Vitamin D is chemically bound to proteins, to form molecules called 25(OH)D or 25OHD

The recommended limit for 25OHD is 50 nmol/L and should be mixed with Calcium intake

The effects of Vitamin D MARKETING OF VITAMIN FORTIFICATION

Source: Nordic dietary guidelines 2012 (2014)



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Arla Foods Sverige increasing fortification

Sour milk

Yoghurt

Full fat milk

Doubled fortification in reduced fat milk

Organic milk planned

Zeta introduces fortified oils

Companies clearly label the new initiative

Consumers increase supplement consumption

Company response to new Swedish guidelines MARKETING OF VITAMIN FORTIFICATION


INTRODUCTION





PROTEIN RICH FOOD




SUMMARY



48 SUMMARY

Picture: Njie Group AB



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YES NO

Sweetener acceptance is increasing

Supplement consumption is increasing

Sports nutrition consumption is increasing

The protein trend supports the idea of a component approach to nutrition

Organic sales are increasing

Hot cereals and frozen berries are popular

Arla Wellness failed

Meat substitutes is all about sustainable and wholesome healthy food

Are we returning to scientific health? SUMMARY

Could it be that a strong consumer niche is developing beyond protein?



50

Individualism increases the segmentability of the market

Great taste is the key selling point for most consumers

Social media increases its importance

Naturally positioned manufacturers need new trendy ingredients

Organic will grow but will become less of a deal winning characteristic

Consumers are interested to learn more about what really is healthy

What does this mean for health oriented foods? SUMMARY



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Reduced sugar

Reduced salt

Better salt

Better fat

Free from lactose

Free from gluten

Scientific health

Organic

Vegetarian

Local food

Natural

Sports nutrition

High protein food

Fruit based smoothies

Sports and wellbeing

Healthy in the Nordics

SUMMARY

Pictures: open source



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Thank you for listening!

David Ingemar Hedin

Research Analyst

Euromonitor International

[email protected]

+370 (5) 243 1577 ext 4732

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