FD0025IS Sample Pages Insight Report May 2014

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1 Consumer Trends Analysis: Understanding Consumer Trends and Drivers of Behavior in the Indian Bakery & Cereals Market FD0025IS Sample Pages Insight Report May 2014

2 Example table of contents Definitions Category classifications Demographic definitions Summary methodology Trend framework Market context Drivers and inhibitors of consumption Overall Bakery & Cereals market value, (US$ millions), Overall Bakery & Cereals market volume, (millions of KG), Bakery & Cereals market volume, (millions of KG), , by segment Number of Bakery & Cereals consumption occasions in 2012, by gender Number of Bakery & Cereals consumption occasions in 2012, by age Global country comparison of Bakery & Cereals market value and growth, (US$millions), Global country comparison of Bakery & Cereals market volume and growth, (millions of KG), Volume of sold globally and forecast CAGR over the period (size of bubble denotes market volume) Demographic cohort consumption patterns Breakdown of Bakery & Cereals consumption occasions 2012, by gender Over/under consumption of Bakery & Cereals compared to the proportion of society represented Breakdown of Bakery & Cereals consumption occasions 2012, by age group Over/under consumption of Bakery & Cereals compared to the proportion of society represented Breakdown of Bakery & Cereals consumption by whether it is the result of heavy, medium or light consumption, by gender, 2012 Breakdown of Bakery & Cereals consumption by whether it is the result of heavy, medium or light consumption, by age group, 2012 Consumer trend analysis Level of influence each trend has on overall Bakery & Cereals consumption, by volume, 2013 Level of influence each trend has on overall Bakery & Cereals consumption across the globe, by volume,

3 Example table of contents - continued Consumer trend analysis - continued The Changing Lifestyle mega-trend The Connectivity mega-trend The Convenience mega-trend The Ethics mega-trend The Experience & Enjoyment mega-trend The Health & Wellness mega-trend The Individuality mega-trend The Trust mega-trend The Value mega-trend Innovation examples Innovative country-specific launches in the Bakery & Cereals sector Innovative global launches in the Bakery & Cereals sector Recommended actions Recommendations for manufactures, marketers and retailers Appendix An explanation of the sub-trends Detailed methodology About Canadean

4 Reasons to buy this report This report brings together consumer analysis and market data to provide actionable insight into the behavior of consumers. This is based on Canadean s unique consumer data developed from extensive consumption surveys and consumer group tracking which quantifies the influence of 20 consumption motivations within your industry. Consumer trends analysis An overview of the key demographic groups driving consumption in your industry, and what their motivations are for doing so. This enables the reader to identify the most important trends within the market and also determine whether beliefs over what influences consumer behavior within the category are accurate. Market sizing Market value and volumes are given over for 10 leading countries across the globe. Coverage includes major European markets, the US, and the emerging markets of Brazil, Russia, India, and China. Demographic analysis Key demographic groups driving consumption within the US market are identified. The figures showcase the number of Dairy occasions attributed to specific age groups and genders, as well as identifying whether these demographic groups "over" consume in the category. Product innovation examples Examples are provided of innovative international and country-specific product development within your industry, with analysis of how these products effectively target the most pertinent consumer need states. Recommended actions Strategic recommendations of how to capitalize on the evolving consumer landscape are offered, allowing product and marketing strategies to be better aligned with the leading trends in the market. Future outlook The report provides insight to highlight the "so what?" implications behind the data, and analysis of how the need states of consumers within your industry will evolve in the short-to-medium term future. 4

5 A desire for tasty, fresh, and good value products is driving consumption of Bakery & Cereals There are a number of reasons why consumers turn to Bakery & Cereals and a number of reasons they don t. It is crucial for manufacturers to understand what consumers want from the actual products that they purchase Snacking: A desire for on-the-go snacks is helping to increase consumption of Cereal Bars and Cookies. Indulgence: Consumers look to treat themselves with tasty Cakes, Cookies, and Pastries & Sweet Pies. Value: Consumers see Bakery & Cereal products as a relatively low-cost, affordable food option, providing value and satiety. Freshness: Consumers associate Baker & Cereals products with being fresh, with artisanal influenced offerings driving consumption. Energizing boost: Consumers look to Bread & Rolls, Breakfast Cereals, and Cereal Bars as an energizing boost during busy days. DRIVERS OF CONSUMPTION INHIBITORS OF CONSUMPTION Obesity concerns: Consumers are avoiding high amounts of carbohydrates as they can contribute to obesity. Changing breakfast habits: Busy consumers opting to skip breakfast is acting as an inhibitor of Breakfast Cereals consumption. Breakfast substitutes: Some consumers are opting for yogurt or fresh fruit for breakfast, limiting demand for Breakfast Cereals and Bread & Rolls. Lunch alternatives: Consumers are looking for lighter, more exciting lunch options, limiting consumption of Breads & Rolls for sandwiches. Intolerance and avoidance: Some consumers are avoiding products containing wheat or gluten for digestive reasons. 5

6 Volume 2013 (kg m) India s Bakery & Cereals market is one of the fastest growing markets globally Volume of Bakery & Cereals sold globally and forecasted CAGR over the period (size of bubble denotes market volume) Germany France Spain US Italy UK 0-1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% CAGR Brazil Russia China India Low per capita consumption makes India one of the most attractive Bakery & Cereals markets globally: The Indian Bakery & Cereals market is one of the fastest growing markets globally. While it grew historically at a CAGR of 7.2 % during , it is expected to register a CAGR growth of 8.0% during Rapid urbanization, along with increasing disposable incomes, and the need for convenient foods in urban households, is driving demand for Bakery & Cereal products in the country. However, India currently has the lowest per capita consumption of Bakery & Cereals amongst BRIC countries, providing significant growth opportunities. The average Indian consumer enjoys 25.1 Bakery & Cereal occasions per year, the lowest amongst BRIC countries. Despite this, the market promises significant growth, as culinary tastes become increasingly Westernized and a growing number of consumers move from buying unpackaged goods to packaged offerings. 6

7 Media can be used differentiate between the quality of products to younger consumers Degree of influence the Connectivity mega-trend has on demographic groups Gender The influence of Connection is higher among men, at 8.7%, than women, at 7.9%. Men are slightly more likely to seek emotional connections with their Bakery & Cereal products, through local sourcing and regional taste and flavors. Women, however, are slightly more influenced by Media, and marketers should focus on them when promoting or innovating with healthier options in the category. Age groups Older Consumers are most highly influenced by Connection, at 12.2% as they have a preference for products that evoke nostalgia, youth, and childhood memories and experiences. Tweens & Early Teens are more influenced by the Media, at 13.6%, as traditional advertising, along with social and digital media, are targeting this technologically savvy agegroup with interactive campaigns highlighting the enjoyable nature of Bakery & Cereal products. How the Connectivity mega-trend will evolve Despite. the relatively low overall influence of Connection on the consumption of Bakery & Cereals, manufacturers should use connective technologies, such as the Media, to position their products as providing personal moments of escapism from increasingly hectic lives, as this is a priority for Indian consumers. Aspirational influence is also growing among women, as greater social freedoms and increased exposure to media campaigns causes women to seek products that meet lifestyle goals. Locally sourced products are perceived as higher in quality and a feeling of connection to these products, marketed as fresh and free from chemicals and additives, can lead consumers to differentiate between brands. Manufactures should use media to appeal to younger consumers, who are more influenced by this than any other age group, and target them with social media campaigns to promote innovative products and ultimately lead to augmented brand loyalty. 7

8 Manufacturers should innovate with products that appeal to larger households and younger consumers Marketers should target the rapidly rising number of younger consumers: With a large number of younger consumers, manufacturers can target this consumer group and design products specifically to their needs and desires. Manufacturers can innovate with nutritional products, using high visual appeal such as cartoon characters, colors, celebrities and innovative pack shapes to drive sales. Complementary giveaways, such as toys, temporary tattoos, or the spoon-cum-straws found inside the products, can help ensure a product s success among this consumer group. Furthermore, manufacturers can use technology, such as social and mass media, in conjunction with more traditional advertising, to increase brand engagement and loyalty, as children increasingly have greater online time-spend and many are more comfortable with technology than their parents. Brand: Chocos Duet Manufacturer: Kelloggs This Kellogg's range of Vanilla and Chocolate flavours combined, appeals to younger consumers seeking Fun & Enjoyment from their cereal products, and encouraging them to eat these whole-grains as part of a healthy diet. Rise of larger households: The burgeoning economy has fueled migration from rural to urban areas as people move in search of better wages. The changing size of households provides an opportunity for the manufacturers to design products by understanding the needs of larger households and family groups. Products such as familypacks for four, or products packaged together for both parents and children, will appeal to consumers seeking a variety of tastes within their Bakery & Cereal products. For example, three types of Breakfast Cereals for male, female and children can be bundled together. Brand: Wheat Daliya Manufacturer: Shaktimaan This popular Indian wheat, often used as a cereal, is a healthy breakfast option for the whole family, and provides nutrients and proteins beneficial to all members of a family. 8

9 Global innovations on formulation and positioning can be a source of inspiration for Indian manufacturers Innovative Global launches in the Bakery & Cereals sector Brand: Very Berry Porridge Breakfast Manufacturer: Heinz Launched: UK, 2013 Trend: Changing Age Structures Heinz launched a collection of products featuring the first ready-to-eat breakfast format specifically designed for babies. Each is made with a blend of grains containing probiotics to support healthy digestion Brand: Nordic Organic Cereal Porridge Manufacturer: Raisio Launched: Russia Trend: Health, Ethics Nordic Organic Cereal are Russia's first porridges that meet all European standards of organic cultivation, production and packaging of products. The product consist of 100% organic whole grains with a high fiber content, and contains no artificial preservatives. Brand: Chocolate Mountain Cookies CrispyBrownie Manufacturer: Griesson - de Beukelaer Launched: Germany, 2014 Trend: Indulgence, Experience Seeking Griesson launched a new product line of Mountain Cookies with 40 percent firm chocolate nuggets in a dark, extracrunchy chocolate dough, offering the highest levels of enjoyment and experience. Brand: Nature Valley Coconut Crunchy Cereal Bars Manufacturer: Nature Valley Manufacturer:UK, 2014 Trend: Health, Individualism Nature Valley has launched an addition to its Crunchy cereal bar range the new Nature Valley Coconut Crunch. This crunchy cereal bar combines wholegrain oats with the taste of grated coconut. 9

10 Summary Methodology This report is comprised of two data research programs MARKET DATA Method: analyst triangulation of consensus numbers based upon comprehensive primary and desk research as part of an international research programme. Coverage: 50 Countries fully researched Category and segment breakdown 8 channels Value and Volume data Internationally comparable data 100% standardized definitions CONSUMER DATA Method: extensive consumption surveys and consumer group tracking with strict age and gender quotas to ensure nationally-representative results. Coverage: 10 Countries 20 Consumer Trends 26 Consumer Groups Category breakdown Integrated market sizing at the country and category level Interim 2013 Consumer data generated by mapping 2013 Market size data onto 2012 Consumer data consumption values Details on the methodology for both of these research programs can be found in the Appendix. 10

11 Related reports Consumer Trends Analysis: Understanding Consumer Trends and Drivers of Behavior in the Brazilian Dairy Food Market Brazilians select Dairy products based on their ability to meet age-specific needs. This doesn t just apply to children, with older adults increasingly aware of their specific nutritional needs. Although poverty rates have declined rapidly in Brazil, the low income of many consumers means they will seek out the best value for money products. Consumer Trends Analysis: Understanding Consumer Trends and Drivers of Behavior in the German Bakery & Cereals Market Indulgence is the primary driver of the German Bakery & Cereals market, motivating over two-fifths of consumption. The need is high in all categories, but peaks in the consumption of cookies and cakes: consumers perceiving these as the go-to categories for decadent, tasty treating where they desire rich taste experiences and novel texture combinations. Consumer Trends Analysis: Understanding Consumer Trends and Drivers of Behavior in the UK Savory Snacks Market As an effect of the recessionary environment in the country, people are eating out less and entertaining more at home, engaging in indulgent snacks as an affordable treat to offer friends and family. Savory Snacks are relatively low cost, even for more premium offerings, making them an attractive way of treating oneself regardless of the occasion. 11

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