1. CBI - Ministry of Foreign Affairs Translating consumer trends for health products to natural ingredients

2. Objectives  Learn how to recognise trends  Learn how to determine which trends are of relevance to you  Learn how to translate trends into opportunities and threats and O&T into action CBI - Ministry of Foreign Affairs 2

3. From consumer trends to ingredient suppliers CBI - Ministry of Foreign Affairs 3 SupplierTrader Health Products Manufacturer RetailerConsumer Supply chain ingredients for health products Translate trends Consumer trends on the European market What does it mean for you as a supplier?

4. Consumer trends Health products Societal change  Aging population  Rising healthcare costs  People-helping- people  Teas for health (homemade, herbal) Definition of ‘health’  Lifestyle choices  Preventive  Natural  Organic  Non-Western traditions  Long-term use Health problems  Obesity  Inactive population  Diabetes  Epidemics (flu)  Cognitive disorders  Dementia  Increasing vascular problems  Joint health  Immunity  Digestive health  Stress and Anxiety Content  Caffeine-free energy  Antioxidants  Omegas  Superfruit/superfood  Proteins CBI - Ministry of Foreign Affairs 4

5. Consumer trend research Useful sources:  www.nutraceuticalsworld.com/ www.nutraceuticalsworld.com/  www.nutraingredients.com/ www.nutraingredients.com/ Associations:  Association of European Self-Medication Industry: www.aesgp.eu/www.aesgp.eu/  German Medicines Manufacturers Association: www.bah-bonn.de/www.bah-bonn.de/ Tradefairs (online and offline)  www.biofach.de/en/ www.biofach.de/en/  Health ingredients, natural ingredients: www.figlobal.com/hieurope/home/www.figlobal.com/hieurope/home/  SANA: www.sana.itwww.sana.it CBI - Ministry of Foreign Affairs 5

6. Is this a trend you can build on? “Buzzy” or “Solid” Functional Active health Omegas (Beyond) Fair Antioxidant Organic Superfruit/ superfood Proteins Natural Lifestyle choices Vegan Ethnic / exotic Unpacking the trends (1) Homemade teas CBI - Ministry of Foreign Affairs 6 Work stress Obesity Dementia

7. Unpacking the trends (2) (How) should suppliers respond CBI - Ministry of Foreign Affairs 7 SupplierTrader Health Products Manufacturer RetailerConsumer What trends exist on the market? What or who are the drivers of the trend? Who should respond? Opportunities for suppliers or traders of ingredients? Tips? Brand owners

8. Trends that may not “fit” suppliers (1/3)  Heart conditions (prescription drugs): natural only to prevent with healthy lifestyles! CBI - Ministry of Foreign Affairs 8

9. Trends that may not “fit” suppliers (2/3)  Heart conditions  Pains (e.g. headache): people want immediate and long- lasting pain relief CBI - Ministry of Foreign Affairs 9

10. Trends that may not “fit” suppliers (3/3)  Heart conditions  Pains (e.g. headaches)  Serious illnesses (e.g. cancer): natural only to prevent with healthy lifestyles! CBI - Ministry of Foreign Affairs 10

11. Trends that may “fit” suppliers?  Preventive  Non-Western traditions  Teas for health  Superfruit/superfood  Caffeine-free energy  Etc.? CBI - Ministry of Foreign Affairs 11

12. Preventive – On the market CBI - Ministry of Foreign Affairs 12 Claims: “…helps to promote good health” “…to help overall wellbeing” “…support a healthy immune system” “Promotes health and wellbeing”

13. Preventive – Drivers Consumers are looking for healthy lifestyles to prevent illness  Prevent is easier, cheaper than to cure  Immune health supports overall health Manufacturers want to innovate: respond with new products CBI - Ministry of Foreign Affairs 13

14. Preventive – Ingredients  Linked to other trends: antioxidant, immune health, digestive health, superfoods, stress & anxiety  Opportunity: ingredients that boost immune system, mainly in food supplements Tips:  In your promotion: show how your ingredient supports or contributes to healthy lifestyles  Combine with other trends  Stress content of ingredient (antioxidants, vitamins etc.)  Be careful with claims! CBI - Ministry of Foreign Affairs 14

15. Non-Western rituals – On the market CBI - Ministry of Foreign Affairs 15

16. Non-Western rituals – Drivers Consumers:  Increased interest in non-Western health systems (Ayurveda, TCM etc.)  Traditional use of plants  Globalisation / travel  spreading rituals in cultures/countries Manufacturers:  Tradition of use  scientific testing  Used in marketing story CBI - Ministry of Foreign Affairs 16

17. Non-Western rituals – Ingredients Opportunities:  Prominent role for MAPs in non-Western rituals  Ingredients with tradition of use in other cultures  Both food supplements and herbal medicine (scientific evidence) Tips: Show in your promotion how ingredients are used in rituals:  Images of rituals/traditional use: how do people use it  Stress benefits: what do people use it for? CBI - Ministry of Foreign Affairs 17

18. Teas for health – On the market CBI - Ministry of Foreign Affairs 18

19. Teas for health – Drivers Consumers part of healthy lifestyle Manufacturers use teas as opportunities to innovate  Focus on specific indications: slimming, relaxing, energizing, digestive health, etc.  Increasingly sophisticated marketing CBI - Ministry of Foreign Affairs 19

20. Teas for health – Ingredients Opportunities:  Direct marketing (mostly Ayurveda/TCM)  Specific indication Tips:  Develop marketing story based on indication/content/traditional use/certifications  For finished products: work on attractive packaging! CBI - Ministry of Foreign Affairs 20

21. Superfood/superfruit – On the market CBI - Ministry of Foreign Affairs 21

22. Superfood/superfruit – Drivers Consumers: want to live healthier lives, includes healthy diet Manufacturers Superfood and superfruit are marketing terms CBI - Ministry of Foreign Affairs 22

23. Superfood/superfruit – Ingredients  Opportunity: ingredients with healthy nutritional contents (antioxidants, vitamins and minerals, fatty acid profile) Tips:  Find out what composition of your ingredient  Use it in your promotion  Use images in your marketing: fresh ingredient, origin CBI - Ministry of Foreign Affairs 23

24. Caffeine-free energy – On the market CBI - Ministry of Foreign Affairs 24

25. Caffeine-free energy – Drivers Consumers:  Caffeine-free energy perceived as healthier than coffee/caffeinated energy drinks  Fast-paced society: boost energy, for work/sports  Ageing population: natural health options to support active lifestyle Manufacturers  New ingredients/applications to distinguish products on market  Multiple ingredients in food supplements for specific condition (e.g. botanicals with fruits and vitamins) CBI - Ministry of Foreign Affairs 25

26. Caffeine-free energy – Ingredients Opportunities:  Only in food supplements!  Combination with vitamins/ minerals Tips:  Stress that source of energy is caffeine-free  Be careful with claims! CBI - Ministry of Foreign Affairs 26 “B vitamins support energy metabolism Green tea extract”

27. Exercise  Digestive health  Omegas CBI - Ministry of Foreign Affairs 27 In groups  Find it “in the market”  What are the drivers?  What is the opportunity?  What would be your tip?

28. Questions and Answers CBI - Ministry of Foreign Affairs 28