2011 CPG/FMCG Trends 2010 Mintel International Group. All rights reserved. Confidential to Mintel.22011 Mintel CPG Predictions Every year, we develop a list of predictions for the coming yearBased on input from more than 40 Mintel employees, from every one of our offices (Chicago, London, Sydney, Shanghai, Tokyo)Finalized by our leading global consultants in Chicago, London, and SydneyPredictions are global in scope, and may differ somewhat from one part of the world to anotherObjective:Offer our insight and ideas as to whats ahead for CPG products in the year to come 2010 Mintel International Group. All rights reserved. Confidential to Mintel.3Todays agendaA brief look: 2011 Consumer predictionsCPG predictions: The listFirst, a brief look at new product activityA dozen CPG predictions, one by oneWhats nextIntent:Share our expert knowledge on trends that will impact your business 2010 Mintel International Group. All rights reserved. Confidential to Mintel.Women will continue to redefine gender roles as well as lifestages42011 Mintel Consumer TrendsConsumers will take a “prepare for the worst” stance towards budgetingQR codes will provide consumers with alternative channels for information and experienceAn ageing society will mean new challenges and opportunities for the workplaceTraditional universities will no longer be the only venue for educationBrands will need to decide whether to counter or cater to the issue of obesityHow does your(urban) garden grow? More city dwellers will get a green thumbAutomation will find machines replacing people in new and unexpected waysRetailers will need to get more creative than cutting prices in order to lure consumers in storePrepare for the WorstWhere its AppOn Her Own TermsNo Degree, No ProblemThe Big IssueRetired for HireWho needs humans? Retail RebirthGarden State 2010 Mintel International Group. All rights reserved. Confidential to Mintel.Global 2011 CPG predictions: The list5WellnessQuiet reduction Redefining “natural” Personal hygiene comes out of the closetConvenienceProfessionalisation of the amateur Less is more reduxIndulgenceEcono-chic Instant resultsEnvironment Sustainable stays focused on the basicsDemographicsSimplicity for older consumersMarketing and mediaBlurring categories New retro More cradle-to-grace initiatives 2010 Mintel International Group. All rights reserved. Confidential to Mintel.Global new product introductionsGlobal introductions driven by Food and BeautyTotal introductions annually top 250,000New product introductions, global, by supercategory6Source: Mintel GNPD 2010 Mintel International Group. All rights reserved. Confidential to Mintel.7A closer look at food and drinkEurope accounts for the greatest percentage of product introductions in all food and drinkNorth Americas contribution to the global total continues to shrinkFood priced at parity with regular Go-GurtSource: Mintel GNPD IRIS 2010 Mintel International Group. All rights reserved. Confidential to Mintel.Prediction One: Quiet ReductionPositives and negatives of sodium reduction:Reduced sodium levels essential for good health and disease preventionConsumers balk at the compromised tasteResult: Companies reduce, but dont communicateConsumer attitudes to saltWhats ahead?Sodium levels will continue to drop, but likely that few products will be labeled as “reduced sodium”13Source: TGI Europa/Mintel 2010 Mintel International Group. All rights reserved. Confidential to Mintel.14Prediction Two: Redefining “Natural”What it is: “All natural” continues to be ill-defined and under fire, leading to a “natural shakedown”Why its important: Focus likely to shift to greater accentuation of the positives, rather than the negatives “No additives” becoming the norm in many countries, with percentages much higher in some countries rather than othersNew product introductions with no additives/preservatives claims, globalSource: Mintel GNPDConsumer predictions Brands will need to decide whether to counter or cater to the issue of obesity 2010 Mintel International Group. All rights reserved. Confidential to Mintel.Prediction Two: Redefining “Natural”All natural ice cream made from just five ingredients, listed front of packOriginal seven varieties have sold over $28M since launchSales of the top 3 out-perform the benchmark for all Hagen-Dazs ice cream introductions in the same period15Series NameHagen-Dazs Five - Vanilla Bean - 14.00 fl. oz (US)Hagen-Dazs Five - Coffee - 14.00 fl. oz (US)Hagen-Dazs Five - Milk Chocolate - 14.00 fl. oz (US)Benchmark: Haagen-Dazs excl Five (17 SKUs)Hagen-Dazs Five, USA, launched spring 2009Quad WeeksSource: Mintel GNPD IRIS 2010 Mintel International Group. All rights reserved. Confidential to Mintel.Prediction Two: Redefining “Natural”16PepsiCos Pepsi Natural all natural cola, USA, made with sparkling water, sugar and kola nut extractA cautionary tale: Are all categories right for natural positioning?