Consumer and Market Insights: Ice Cream Market in Indonesia CS1940MF May 2015 1 Report scope This report brings together multiple data sources to provide a comprehensive overview of the Ice Cream sector in Indonesia as part of our global coverage of the sector. This report draws on market data, analyzing value and volume data and category and channel distribution breakdown, also highlighting which categories are witnessing the biggest growth. Brand and Private Label analysis is also provided. It also contains top line foodservice transaction figures highlighting where the most opportunistic channels are for industry players in the country. Detailed packaging analysis is also provided, analyzing category trends and also packaging material and type. The report also contains qualitative analysis of the most influential consumer trends driving consumption occasions in the category, analyzing how these trends will evolve and highlighting best practice product examples to show how manufacturers are targeting the trend. Market data coverage – The overall market value and volume included in the report is split on the basis of on-trade and off-trade volume and value. Category coverage: This report provides information on three Ice Cream categories including Artisanal Ice Cream, Impulse Ice Cream - Single Serve and Take-home and Bulk Ice Cream. More extensive brand coverage: The report provides more extensive brand share coverage. Brand share data is also validated by inputs from industry experts. Distribution channel: The Distribution data included in the report covers 11 distribution channels including Cash & Carries & Warehouse Clubs, “Dollar Stores”, Variety Stores & General Merchandise Retailers, Hypermarkets & Supermarkets, Convenience Stores Time period: The report provides overall market value and volume data, including category level data for the period 2009-2019. Distribution channel and brand share data is included for the year 2014. 14/05/2015 5/14/2015 5/14/2015 2 2 Table of Contents • Country Context • Market Overview • Retail Landscape and Key Distribution Channels • Packaging • Brand Share • Consumer trends • Examples of new product development • Appendix 3 Rise in GDP per capita will drive growth in the consumer packaged goods market in Indonesia Indonesia is one of the largest economies in South-East Asia. Increasing domestic consumption and the rise of exported manufactured products and commodities will further boost the economic growth in the country. Population 37,000,000 32,000,000 12% 27,000,000 22,000,000 8% 17,000,000 12,000,000 4% 7,000,000 2,000,000 2010 2011 2012 2013 Consumer Price Index Consumer Price Index 1.2% 200 150 0.8% 100 0.4% 50 0.0% 2009 2014 GDP per capita showed an upward trend in 2014 after declining during 2011-2013. It stood at IDR39,826,259.0 (US$3,355.0) in 2014. 2010 2011 2012 2013 2014 Population growth declined from 1.4% during 20082009 to 1.2% during 2013-2014 and reached 252.8 million in 2014. Age Profile 80+ 70 - 79 135 130 60 - 69 50 - 59 125 120 40 - 49 30 - 39 115 110 105 100 2009 250 0 0% 2009 1.6% Annual Growth (%) 300 16% Population (Million) 42,000,000 Annual growth (%) GDP Per Capita (IDR) GDP Per Capita 2010 2011 2012 2013 2014 Consumer prices in Indonesia increased by 17.7% during 2011-2014 and reached 130.3 basis points in 2014. 20 - 29 10 - 19 0-9 Indonesia has a large young population, with 51.2% of the total population aged less than 30 in 2014. 4 The retail and foodservice markets in Indonesia: an overview This slide provides an overview of the retail and foodservice markets in Indonesia, in which industry players in the Ice Cream market operate: Retail Country indicator Total value of Food market, 2014 Total volume of Food market, 2014 Total Food volume growth 2009-2014 Proportion of Ice Cream as part of overall food volume, 2014 Biggest category within the Ice Cream market as part of overall volume, 2014 Foodservice Units US$ millions Value 36,779.7 Millions of Kg 11,224.8 CAGR 3.8% % 0.7% % Impulse Ice Cream – Single Serve, 45.0% Profit Total number of transactions in the Profit Sector, 2014: 2,453.4 million Largest channel in the Profit Sector and transactions, 2014: Restaurants, 1,512.8 million Cost Total number of transactions in the Cost Sector, 2014: 1,484.2 million Largest channel in the Cost Sector and transactions, 2014: Education, 735.3 million Figures for overall food 2014 are forecasts. 5 Table of Contents • Country Context • Market Overview • Retail Landscape and Key Distribution Channels • Packaging • Brand Share • Consumer trends • Examples of new product development • Appendix 6 The rising disposable income of the consumers is driving the growth of the Ice Cream market in Indonesia • The Ice Cream market in Indonesia registered growth at a CAGR of 8.6% in US$ terms during 2009-2014 and is forecast to register growth at a CAGR of 7.8% during 2014-2019. In value terms, On-trade consumption will grow at a slower rate compared to off-trade consumption during 2014-2019. • The volume consumption of Ice Cream products is forecast to grow from 105.7 Kg million in 2014 to 154.1 Kg million in 2019 to register growth at a CAGR of 7.8% during 2014-2019. Market value of Indonesia’s Ice Cream market, 2009-2019 Total(US$ million) 2009 382.1 Market volume of Indonesia’s Ice Cream market, (Millions of Kg), 2009-2019 Total Volume Off-trade (US$ On-trade (US$ million) million) 250.2 131.9 Off Trade On Trade 154.1 109.8 105.7 77.0 74.5 55.5 2014 576.0 377.5 198.5 2019 836.8 554.0 282.7 CAGR 2009– 2014 8.6% 8.6% 8.5% CAGR 2014– 2019 7.8% 8.0% 7.3% 2009 44.3 28.7 19.1 2014 2019 Total Off-trade On-trade CAGR 2009–2014 7.2% 6.8% 8.5% CAGR 2014–2019 7.8% 7.4% 9.1% 7 Ice Cream market will record high value and volume growth during 2014-2019 The Ice Cream market in Indonesia registered strong growth in value and volume terms. It was worth IDR68,37,378.5 million (US$576.0 million) in 2014, and is forecast to register a CAGR of 12.1% in local currency terms during 2014-2019 to reach IDR121,23,430.5 million (US$836.8 million) in 2019. In US$ terms the Ice Cream market in Indonesia was impacted due to the fluctuating exchange rates, resulting in variable growth rate during 2009-2014. On-trade transactions accounted for 34.5% of the market share of Ice Cream products value sales and 65.5% of volume sales in 2014. Market value (IDR m and US$ m) and volume growth of Indonesia’s Ice Cream market, 2009–2019 Value (IDR m) Value (US$ m) Market value (IDR m) and volume growth of Indonesia’s Ice Cream market, 2014–2019 – Off-trade/on-trade Volume Kg m Off-trade 30% Growth Rate (%) 25% On-trade Value growth Volume growth Value growth Volume growth 20% 2014 11.8% 7.0% 11.6% 8.8% 15% 2015 12.0% 7.1% 11.6% 8.9% 2016 12.1% 7.2% 11.7% 9.0% 2017 12.3% 7.4% 11.7% 9.1% 2018 12.6% 7.5% 11.7% 9.2% 2019 12.8% 7.6% 11.8% 9.3% 10% 5% 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -5% 8 Indonesian consumers will prefer to purchase value for money products In 2014, the value of Indonesia’s Ice Cream market grew by 11.8% for off-trade and 11.6% for on-trade sales. There was a 7.0% volume growth for off-trade and 8.8% for on-trade. Overall food prices increased by 6.8% and the average price change for Ice Cream stood at 4.5% for off-trade and 2.6% and on-trade. Rising food prices impacted the consumer purchasing power, resulting in an increased preference for value products among consumers. Extent to which consumers are trading up or down in Indonesia’s Ice Cream market (off-trade) Extent to which consumers are trading up or down in Indonesia’s Ice Cream market (on-trade) 18.0% 16.0% 14.0% -2.3% 12.0% 6.8% 10.0% 4.5% 8.0% 6.0% 4.0% 11.8% 2014 Annual Change % 2014 Annual Change % 18.0% 16.0% 14.0% -4.2% 6.8% 12.0% 10.0% 2.6% 8.0% 6.0% 11.6% 8.8% 4.0% 7.0% 2.0% 2.0% 0.0% 0.0% Change in Change in Change in Sales Value Sales Volume Average Price Food Price Inflation Trading Up or Down Change in Sales Value Change in Change in Sales Volume Average Price Food Price Inflation Trading Up or Down 9 Impulse Ice Cream – Single Serve is the most consumed Ice Cream product in Indonesia Market volume of Indonesia’s Ice Cream market, (Millions of Kg), 2014, by category* 20.3 47.6 Impulse Ice Cream Single Serve Take-home and Bulk Ice Cream The volume consumption of Ice Cream was 105.7 Kg million in 2014, of which Impulse Ice Cream – Single Serve accounted for 45.0% of volume sales followed by Take-home and Bulk Ice Cream which accounted for 35.7% of the share. The Artisanal Ice Cream category is forecast to register the fastest growth at a CAGR of 9.3% in volume terms during 2014-2019. Market Volume, forecast Compound Annual Growth Rate, 2014-2019 Market CAGR Volume 2014 2014-2019 (Kg Million) Artisanal Ice Cream 37.7 Impulse Ice Cream - Single Serve 47.6 7.6% Take-home and Bulk Ice Cream 37.7 7.3% Artisanal Ice Cream 20.3 9.3% * Market volume includes on-trade + off-trade 10 Impulse Ice Cream – Single Serve accounted for highest off-trade while Artisanal Ice Cream accounted for highest on-trade volume share The Impulse Ice Cream – Single Serve category accounted for 55.5% of off-trade volume consumption and is forecast to grow at a CAGR of 7.5% during 2014-2019. The Artisanal Ice Cream category accounted for 68.0% of on-trade volume consumption and will grow at a CAGR of 9.3% during 2014-2019. It is also forecast to register the fastest volume growth in off-trade and on-trade consumption at a CAGR of 8.1% and 9.3% respectively during 2014-2019. Indonesia’s Ice Cream market, Off-trade (Millions of Kg), 2014, broken down by category Market Volume 2014 (Kg Million) CAGR 2014–2019 Impulse Ice Cream - Single Serve 42.7 7.5% Take-home and Bulk Ice Cream 33.4 7.2% Artisanal Ice Cream 0.8 8.1% Indonesia’s Ice Cream market, On-trade (Millions of Kg), 2014, broken down by category Market Volume 2014 (Kg Million) CAGR 2014–2019 Artisanal Ice Cream 19.5 9.3% Impulse Ice Cream - Single Serve 4.9 8.7% Take-home and Bulk Ice Cream 4.3 8.3% 11 The Take-home and Bulk Ice Cream category will register highest off-trade value growth during 2014-2019 The Impulse Ice Cream – Single Serve category accounted for IDR2,987,225.1 million (US$251.6 million) of off-trade sales in 2014. It is the largest category by value and is forecast to register CAGR of 12.1% during 2014-2019. The Take-home and Bulk Ice Cream category is forecast to register the fastest growth in off-trade sales during 2014-2019 with a CAGR of 12.9%. Market value of categories in the Ice Cream market (Off-trade) 2014–2019 Category Value in IDR CAGR (%) 15% Impulse Ice Cream - Single Serve 12% 9% Take-home and Bulk Ice Cream 6% Artisanal Ice Cream 3% 0% 0% 3% 6% 9% 12% 15% Bubble size= 2014 Category Value (IDR million) 2009–2014 Category Value in IDR CAGR (%) 12 The Artisanal Ice Cream category is the largest category by value in the on-trade sales during 2014-2019 The Artisanal Ice Cream category accounted for IDR16,02,314.6 million (US$135.0 million) of on-trade sales in 2014. It is the largest category by value and is forecast to register CAGR of 11.7% during 2014-2019. The Artisanal Ice Cream, Take-home and Bulk Ice Cream, and Impulse Ice Cream – Single Serve categories are forecast to register similar growth rates at a CAGR of 11.7% in on-trade sales during 2014-2019. Market value of categories in the Ice Cream market (On-trade) 2014–2019 Category Value in IDR CAGR (%) 15% Artisanal Ice Cream 12% 9% Impulse Ice Cream - Single Serve 6% Take-home and Bulk Ice Cream 3% 0% 0% 3% 6% 9% 12% 15% Bubble size= 2014 Category Value (IDR million) 2009–2014 Category Value in IDR CAGR (%) 13 Impulse Ice Cream – Single Serve is the largest category in value terms in the Ice Cream market in Indonesia Market value of categories in the Ice Cream market Value (US$ Million) 500 30% 400 20% 300 10% 200 0% 100 0 Value (IDR Million) Impulse Ice Cream - Single Serve – IDR Impulse Ice Cream - Single Serve – US$ 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 5% 1,000,000 0% 20092010201120122013201420152016201720182019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 On-trade 10% 0 -10% Off-trade 15% Off-trade Annual Growth (%) On-trade Annual Growth (%) The Impulse Ice Cream- Single Serve category was worth IDR19,76,687.5 million (US$190.3 million) in 2009 and is forecast to reach IDR59,91,869.9 million (US$413.6 million) by 2019, registering a CAGR of 11.7% in local currency terms during 2009–2019. On-trade transactions accounted for 11.8% of the category share in 2014. 250 Take-home and Bulk Ice Cream – IDR 30% 200 20% 150 10% 100 0% 50 0 -10% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Off-trade On-trade Annual Growth (%) Value (IDR Million) Value (US$ Million) Take-home and Bulk Ice Cream – US$ 3,000,000 15% 2,500,000 12% 2,000,000 9% 1,500,000 6% 1,000,000 3% 500,000 0 0% 20092010201120122013201420152016201720182019 Off-trade On-trade Annual Growth (%) The Take-home and Bulk Ice Cream category was worth IDR10,18,585.3 million (US$98.0 million) in 2009 and is forecast to reach IDR32,15,349.8 million (US$221.9 million) by 2019, registering a CAGR of 12.2% in local currency terms during 2009–2019. On-trade transactions accounted for 19.9% of the category share in 2014. 14 Artisanal Ice Cream is the smallest category in value terms Market value of categories in the Ice Cream market Value (US$ Million) 250 30% 200 20% 150 10% 100 0% 50 0 -10% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Off-trade On-trade Annual Growth (%) Value (IDR Million) Artisanal Ice Cream – IDR Artisanal Ice Cream – US$ 3,000,000 15% 2,500,000 12% 2,000,000 9% 1,500,000 6% 1,000,000 500,000 3% 0 0% 20092010201120122013201420152016201720182019 Off-trade On-trade Annual Growth (%) The Artisanal Ice Cream category was worth IDR9,74,660.6 million (US$93.8 million) in 2009 and is forecast to reach IDR29,16,210.9 million (US$201.3 million) by 2019 registering a CAGR of 11.6% in local currency terms during 2009–2019. On-trade transactions accounted for 95.6% of the market share in 2014. 15 The Take-home and Bulk Ice Cream category will gain market share in value terms during 2014-2019 Change in market share (value terms) in the Ice Cream market* Winners Category 1 Take-home and Bulk Ice Cream Losers Change in market share, 2014–2019 0.6% The Take-home and Bulk Ice Cream category is forecast to gain market share, growing from 25.9% in 2014 to 26.5% in 2019. Category 1 Change in market share, 2014–2019 Artisanal Ice Cream -0.4% The Artisanal Ice Cream category is forecast to lose market share, declining from 24.5% in 2014 to 24.0% in 2019. 2 Impulse Ice Cream – Single Serve -0.1% The Impulse Ice Cream – Single Serve category is forecast to lose market share, declining from 49.5% in 2014 to 49.4% in 2019. * Change in market share based on on-trade + off-trade values 16 Category level pricing Average category level prices (IDR) in Indonesia’s Ice Cream market, 2014 Category Average Price/ Kg (IDR) 2014 Average Price/Kg (USD) 2014 Impulse Ice Cream - Single Serve 71,177.5 6.0 Take-home and Bulk Ice Cream 47,024.6 4.0 Artisanal Ice Cream 82,378.9 6.9 14/05/2015 5/14/2015 5/14/2015 17 17 Dairy-Based Ice Cream is the largest segment in the Take-home and Bulk Ice Cream and Impulse Ice Cream – Single Serve categories Segment’s share of the overall category and change in market share (in value terms) in Indonesia’s Ice Cream Market, 2014 Category Impulse Ice Cream Single Serve Segment’s Share, 2014 Change 2014/2019 Dairy-Based 77.1% 0.2% Off-trade Water-Based 11.0% 0.0% On-trade On-trade 11.8% -0.2% Off-trade Artisanal Ice Cream 4.4% 0.1% On-trade On-trade 95.6% -0.1% Off-trade Dairy-Based 73.8% 1.1% Off-trade Water-Based 6.3% -0.3% On-trade On-trade 19.9% -0.8% Off-trade / On-trade Segment Off-trade Artisanal Ice Cream Take-home and Bulk Ice Cream 14/05/2015 5/14/2015 5/14/2015 18 18 Table of Contents • Country Context • Market Overview • Retail Landscape and Key Distribution Channels • Packaging • Brand Share • Consumer Trends • Examples of New Product Development • Appendix 19 Profiles of Selected Grocery Retailers Leading retailers in the Indonesian Food market, 2014 Leading retailers, Indonesia Company Name PT Hero Supermarket Tbk Overview The Hero Group is one of the largest hypermarket chains in Indonesia. As of December 2014, the company operated 704 stores, comprising of 55 Giant Ekstra,165 Hero Supermarkets and Giant Ekspres, 349 Guardian health and beauty stores, 1 IKEA and 134 Starmart convenience stores. Alfamart is currently one of Indonesia’s leading retailers, serving more than 2.5 million customers daily, with approximately 7,000 stores across PT. Sumber Alfaria Trijaya Tbk Indonesia. Alfamart is also one of the largest employers in Indonesia with 70,000 employees. PT Matahari Putra Prima currently owns and runs 267 stores in Indonesia, PT Matahari Putra comprising of 107 hypermarkets, 58 foodmarts and 102 Boston health & Prima beauty stores. Carrefour Carrefour Indonesia, owned by PT Trans Retail Indonesia, operates more than 84 Hypermarkets & Supermarkets in the country. 20 Hypermarkets & Supermarkets is the leading distribution channel in Indonesia’s Ice Cream market in 2014 Leading distribution channels in Indonesia’s Ice Cream market, 2014 Leading distribution channels –Overall Food 2010 Value (US$ billion) 15 Leading distribution channels – Ice Cream 2013 9% 12 13% 9 6 Convenience Stores 2% 42% On-Trade Food & Drinks Specialists 3 Hypermarkets & Supermarkets 0 Hypermarkets & Supermarkets Convenience Stores Food & drinks specialists Others Others 34% Ice Cream market as a percentage of overall Food: Ice Cream accounted for 1.0% of food retail sales in Indonesia in 2013. Hypermarkets & Supermarkets are the leading retailers of food in Indonesia. They account for 34.7% of Food retail sales in the country, followed by Convenience Stores with a 31.0% share. Convenience Stores registered the highest growth at a CAGR of 0.9% in US dollar terms during 20102013. Convenience Stores accounted for 42.3% of the distribution share in Indonesia’s Ice Cream market in 2014. On-trade transactions was the second leading distribution channel and accounted for 34.5% of the market share. Hypermarkets & Supermarkets is the fastest growing distribution channel with a CAGR of 12.2% in local currency terms registered during 20112014. 21 Convenience Stores is the leading distribution channel in the Impulse Cream – Single Serve and Take-home and Bulk Ice Cream categories Leading distribution channels by category in the Ice Cream market, 2014 Key distribution channels – Impulse Ice Cream Single Serve 9% 3% 58% 12% Convenience Stores Key distribution channels – Artisanal Ice Cream 4% On-Trade Food & Drinks Specialists Food & Drinks Specialists On-Trade Hypermarkets & Supermarkets 18% Others 96% Key distribution channels –Take-home and Bulk Ice Cream 5% 2% Convenience Stores 12% Hypermarkets & Supermarkets Food & Drinks Specialists On-Trade 19% 62% Others 22 Table of Contents • Country Context • Market Overview • Retail Landscape and Key Distribution Channels • Packaging • Brand and Private label Share • Consumer Trends • Examples of New Product Development • Appendix 23 Flexible Packaging is the most used packaging material while Bag/Sachet is the most commonly used container type in Ice Cream market in Indonesia Overview of Indonesia’s Ice Cream market by type of packaging in 2014 Key Packaging Materials Key Packaging Materials by category Flexible Packaging Flexible Packaging 47.9% 17% Rigid Plastics Others 18% 25% Rigid Plastics 34.6% 100% 82% 57% Paper & Board 17.5% Im pulse Ice Cream - Single Serve Flexible Packaging was the most commonly used packaging material with 47.9% of the market share followed by Rigid Plastics with a 34.6% share in 2014. Key Container Types Take-hom e and Bulk Ice Cream Flexible Packaging was preferred for the packaging of Impulse Ice Cream, while Rigid Plastics was mostly used for Take-home Ice Cream and Artisanal Ice Cream in 2014. Key Container Types by category Bag/Sachet 7% Tub Others Bag/Sachet 8% 15% Tub 27% Wrapper 57% 18% 48% 36% Artisanal Ice Cream 82% 100% Others Impulse Ice Cream - Single Serve Bag/Sachet was the most commonly used container type in Ice Cream market and accounted for 48.0% of the market share in 2014. It was followed by Tub with a 36.0% share. Take-home and Bulk Ice Cream Artisanal Ice Cream Take-Home Ice Cream and Artisanal Ice Cream used Tub Outers while Bag/Sachet was used for the packaging of Impulse Ice Cream – Single Serve. 24 Prize Off is the preferred closure type in the Ice Cream market in Indonesia Overview of Indonesia’s Ice Cream market by packaging closure/outers used in 2014 Key Packaging Closures Key Packaging Closures by category Prize Off 1 Prize Off 2 Cap 3 Other Cap Others 36.5% 2.4% 3.6% 4% 27% 82% 3% Impulse Ice Cream Single Serve Prize Off closures were used for the packaging of 36.5% of Ice Cream products in 2014 followed by Cap with 2.4% market share. Key Packaging Outers 100% Take-home and bulk Ice Cream Artisanal Ice Cream Prize Off closure was preferred across categories in 2014. * Data for Ice Cream using Closures. Key Packaging Outers by category Box 1 Box 3.0% 18% Take-home and bulk Ice Cream Box outers were used for packaging of 3.0% of Ice Cream products in 2014. Box outer was preferred for the packaging of Takehome and Bulk Ice Cream in 2014. * Data for Ice Cream using outers. 25 Paper & Board and Wrapper are the fastest growing packaging material and container type in Ice Cream market in Indonesia Overview of Ice Cream market by type of packaging in 2019 Key Packaging Materials 2014 Key Packaging Materials by category 2014 2019 Million Units Million units 800 600 400 200 800 600 400 200 0 Flexible Packaging Rigid Plastics Key Closures Types Bag/Sachet Wrapper The use of Wrapper containers is forecast to grow at the fastest CAGR of 20.5% during 2014-2019 and will reach 167.0 million units in 2019. Million Units 2019 600 400 200 0 Prize Off Tub Key Packing Outers 2014 800 0 Paper & Board The use of Paper & Board packing material is forecast to grow at the fastest CAGR of 21.3% during 2014-2019 to reach 358.9 million units in 2019. Million Units 2019 1,000 1,000 Other Cap The use of Prize Off Closures is forecast to grow at a CAGR of 19.5% during 2014-2019 to reach 691.9 million units in 2019. 60 2014 2019 40 20 0 Box The use of Box outers is forecast to grow at a CAGR of 17.1% during 2014-2019 to reach 51.1 million units in 2019. 26 Table of Contents • Country Context • Market Overview • Retail Landscape and Key Distribution Channels • Packaging • Brand Share • Consumer Trends • Examples of New Product Development • Appendix 27 Wall’s is the leading brand in the Impulse Ice Cream – Single Serve and Take-home and Bulk Ice Cream categories Impulse Ice Cream - Single Serve – Brand share Leading brands - market share 29.7% 11.9% Take- home and Bulk Ice Cream – Brand share Leading brands - market share 22.8% 45.2% Wall's - Others Magnum Wall's - Others Campina-Overall Magnum Cornetto Campina-Overall 14.2% Others 15.3% 23.9% Others 17.7% Artisanal Ice Cream – Brand share Leading brands - market share Artisanal Producers 100.0% *Brand share is calculated for off-trade values only 28 Wall’s and Magnum are the leading brands in the Impulse Ice Cream – Single Serve category Brand shares by value in the Ice Cream market, 2014 Impulse Ice Cream – Single Serve Brand Share of category, 2014 Wall's - Others 29.7% Magnum 23.9% Campina-Overall 15.3% Cornetto 11.9% Diamond-Overall 11.4% Kiko 2.0% Paddle Pop 1.0% Artisanal Ice Cream Share of category, 2014 Brand Artisanal Producers 100.0% Take-home and Bulk Ice Cream Brand Share of category, 2014 Feast 1.0% Private Label 0.9% Wall's - Others 45.2% Buavita Smoothie 0.8% Magnum 17.7% Tam Tam 0.8% Campina-Overall 14.2% Others 1.3% Others 22.8% 29 Table of Contents • Country Context • Market Overview • Retail Landscape and Key Distribution Channels • Packaging • Brand Share • Consumer Trends • Examples of New Product Development • Appendix 30 Canadean has identified nine mega-trends that drive consumers and these can be broken down into 20 sub-trends Better Value MEGA-TRENDS: Changing Age Structures Trust Changing Lifestages Personal Space & Time New Gender Behaviours Individualism Urbanization & Migration CHANGING LIFESTAGES CONNECTIVITY CONVENIENCE ETHICS Health Aspiration Beauty Connection EXPERIENCE & ENJOYMENT HEALTH & WELLNESS Quality Seeking Media INDIVIDUALITY Indulgence Technology TRUST Fun & Enjoyment Busy Lives VALUE Experience Seeking Ethics 31 An explanation of the sub-trends Sub-trend Explanation Aspirations The trend towards consumers having more aspirational desires and wanting this reflected in the products that they consume. Beauty The trend towards consumers being increasingly interested in their beauty and grooming and, as a result, seeking to achieve more of their beauty aims and ambitions. Better Value for Money Particularly important in the current economic environment, this trend reflects growing consumer desire, particularly in Western economies, for Better Value for Money from their purchases. This can cover not only trading down to lower priced items, but also trading up to higher priced ones when a consumer feels there is value in doing so. Busy Lives The trend for consumers increasingly fitting more activities into the same amount of time in a day. Working hours are increasing for certain groups, but many consumers similarly have increasingly Busy Lives as they attempt to juggle work, home life, personal ambitions, and the desire to be close to friends and family. As highlighted below, for this trend we also identify specific consumer groups. Changing Age Structures A socio-demographic trend, the age structures of many countries are evolving, having a significant impact on the marketing landscape. It’s not just the aging of populations in Western, developed countries either, the rapid increase in younger generations in developing countries also challenges pre-conceptions about who the main consumers for products are. Changing Life Structures Another socio-demographic trend, and one related to Changing Age Structures. Combined with altering age group dynamics, the marketing landscape is altered in many countries as people increasingly delay settling down, marriage, and childbirth. The traditional pattern of life-stages is evolving and, as a result, so are the sizes of these groups and their needs from CPG purchases. As highlighted below, for this trend we also identify specific consumer groups. 14/05/2015 5/14/2015 5/14/2015 32 32 An explanation of the sub-trends Sub-trend Explanation Connection Flexible labor markets, increased work and pleasure travel, Busy Lives and the breakup of traditional family structures in many countries leaves many people with a growing desire to rectify the downturn in the types of personal connections those in previous generations had. The desire to be close to friends, family, or those with similar interests combines with evolving technologies to create an explosion in the desire for people to feel somehow “connected” to what’s important to them. Social networking, growth in the desire to spend more time with family and friends, and the desire to improve the quality of that time, are all manifestations of this trend. Ethics, Responsibility & Spirituality Increasingly, a growing number of consumers are concerned (even if they don’t always act upon these concerns) about their own ethics and spirituality. In turn, many consumers are increasingly critical of the ethical and related credentials of the products or services they buy, and the providers of them. Experience Seeking Many consumers are seeking to go beyond the “simple” act of owning and consuming products and instead are seeking to attain greater value by seeking products and services that somehow offer rewarding experiences. This can take many forms and can be related to other trends. For example, consuming a very high quality food or drink may not only satisfy a need for quality, but the act of consumption itself may also have value as an experience that will not soon be forgotten. Fun & Enjoyment Many consumers, young and old, and not least in these challenging economic times, are seeking additional fun and enjoyment and some will often choose CPG products as a result of these needs. Health In almost every country, consumers are increasingly worried about their overall wellbeing and specifically their health. The wider social effects of growing obesity rates and sedentary lifestyles have led to growth in consumer concern about their own health and impacted their willingness to choose products and services that might result in health benefits. Individualism In an age of mass consumerism, global brands, and rules and regulations, many people often seek to express their individual identities, personalities, needs, and wants when the opportunity arises. As a result, products and services can tap into this trend by offering people ways of achieving these desires. Indulgence From little rewards to big ones, consumers are increasingly seeking ways in which they can indulge their desires and achieve the “feel good” this can create, even if only temporary. 14/05/2015 5/14/2015 5/14/2015 33 33 An explanation of the sub-trends Sub-trend Explanation Media Fragmentation of the Media may mean that any one Media outlet’s or outlets’ influence may be declining, but the growth of 24/7 Media access from almost any location means that Media influence continues to extend and increasingly shape consumers’ habits – even if they are seeking to react against Media trends. New Gender Behaviors This trend refers to the blurring of traditional gender roles and behaviors, and is related to the changing nature of modern life for many people. From stay-at-home dads to career women, the old ways of doing things is changing and with it so are people’s views of themselves, and therefore the products and services that meet their needs. It’s not all “new age” though as within this trend is also the counter-perspective of people seeking more traditionally masculine and feminine products. Personal Space & Time The pace of modern life and all the demands it brings means that many people are seeking to create their own “bubble” of space and time where they are in control, are able to relax and unwind, and are free from the constant flow of things to do, even if it is just for five minutes. Quality Seeking This is the trend towards trading up to higher quality products and services, even if in challenging economic times this is a “less of the best” approach. Technology Uptake The pace of technological change (not just in communication, but in other areas too) means many are keen to try out the latest that’s on offer and are willing to experiment in order to gain the benefits, and, for some, be among the first to experience them. Trust Or often, a growing lack of it, is increasingly important and is also a very broad trend. From the breakdown in trust in institutions, governments, and companies, to concerns over specific ingredients in consumer goods, trust is increasingly a major concern for consumers, and therefore marketers as well. Urbanization & Migration Shifting patterns of urbanization as major economies develop and people move to where the work is plays a role in fundamentally shaping people’s needs – especially when it comes to CPG purchases. The packaged food and drinks needs of the average urban dweller can differ remarkably to those of the rural dweller, shifting the balance between which types of products are best placed in the market. As highlighted below, for this trend we also identify specific consumer groups. 14/05/2015 5/14/2015 5/14/2015 34 34 Trend 1: Indulgence: Indulgence related product features are highlighted in order to attract consumers How the Indulgence trend will influence Ice Cream consumption in Indonesia • Ice Cream is perceived as a sweet treat by most consumers which makes indulgence the most important trend in the market. Indulgence • This is especially true in markets such as Indonesia where with a dominant population under the age of 30. These consumers often like to indulge in sugarrich food products as they have fewer health concerns compared to the older age groups. Key demographics to target • Both Men and Women • Aged 0-34 • Urban & Rural Key categories to target • All Categories • Premium Ice Cream brands such as Magnum and Häagen Dazs have introduced a variety of products in Indonesia to cater to this indulgence seeking nature of consumers. They often focus on the rich texture and unique flavour of their products in their promotions. Rate at which the trend will evolve •Slow • An example is Unilever Wall’s Oreo Ice Cream tub, it contains vanilla Ice Cream mixed with crunchy bits of Oreo sandwich cookies. 14/05/2015 5/14/2015 5/14/2015 35 35 Trend 2: Changing Age Structures: Ice Cream brands are introducing different products targeted at different age groups How the Changing Age Structures trend will influence Ice Cream consumption in Indonesia Changing Age Structures • The Indonesian population is dominated by consumers under the age of 30, which form 51.2% of the overall population. Hence, the majority of Ice Cream products are usually designed to suit the younger ager groups. • However, with changing consumer behavior, especially among the middle class, and increasing urbanization and globalization, people of all age groups are identifying their interests and choosing different products accordingly. This trend has resulted in the launch of more Ice Cream brands that are targeted at middle aged consumers. • An example is Cornetto Balck Forest Red, limited edition Ice Cream endorsed by the pop start Taylor Swift, targeted at the teenage and early young adult female population. Magnum Black Expresso and Pink Champagne were introduced to target Older Young Adults and middle aged population. 14/05/2015 5/14/2015 5/14/2015 Key demographics to target • Both Men and Women • Aged 0-44 • Urban & Rural Key categories to target • All Categories Rate at which the trend will evolve •Slow 36 36 Trend 3: Personal Space & Time: Ice Creams are often chosen to relax and unwind by busy individuals How the Personal Space & Time trend will influence Ice Cream consumption in Indonesia Personal Space & Time • Increasing pace of consumers’ lives and work pressures are resulting in consumers seeking products that they can enjoy in their free time and which help them feel relaxed. • Ice Creams are often chosen by consumers, especially by the young adult and middle aged population when they feel tired after a long days work, when they want to indulge in some “me time”. • In order to relate to this trend, Ice Cream brands have positioned themselves are personal time products by introducing smaller, single scoop packs that need not be shared. Key demographics to target • Men and Women • Aged 25-44 • Urban Key categories to target • All Categories Rate at which the trend will evolve • Slow • For example, Magnum offers Mini bars in different flavors such as Classic, each bar weighs about 45 grams, ideal for enjoying while alone, in one’s free time. 14/05/2015 5/14/2015 5/14/2015 37 37 Trend 4: Experience Seeking: Ice Creams that offer a novel experience have better demand How the Experience Seeking trend will influence Ice Cream consumption in Indonesia Experience Seeking • The Ice Cream market in Indonesia is a high growth market, supported by increasing middle class population and better affordability every year. Hence, to gain market share and sustain competition, Ice Cream brands are introducing products that stand out and provide a new experience to the consumer for which they are willing to pay a premium. • Ice Cream brands are constantly introducing products with new compositions, flavors, and toppings in order to offer a sense of new experience to the consumer. • Elicxir, is an artisan style Gelato Ice Cream parlor which offers Hokkaido ice cream hot dogs which includes wild organic honey and corn flakes. Key demographics to target • Both Men and Women • Aged 16-44 • Urban • All Categories Rate at which the trend will evolve • Fast • Diamond Es Puter offers Ice Cream in traditional Indonesian, durian and black sticky rice flavors. 14/05/2015 5/14/2015 5/14/2015 38 38 Introduction of innovative flavors and extensive social media promotion will drive sales in the Indonesian Ice Cream market Canadean predicts that the following drivers will rise in importance over the next five years to become increasingly influential motivators of consumption within the market. Extensive online promotion for better sales: Facebook users in Indonesia increased by 6% in June 2014 compared to December 2013. Leading Ice Cream brands such as Walls and Magnum leverage on this rapid growth in social media use by regularly holding competitions and new product launches on websites. They encourage consumer engagement through interactive posts. for example, Magnum celebrated its fifth anniversary by launching a crack-Magnum contest online and distributing various gifts to winners. The hash tag #CelebratePleasure was used for the same on Facebook. 14/05/2015 5/14/2015 5/14/2015 Emerging market for health oriented Ice Cream products: With better exposure, health awareness is rising among Indonesians. This is particularly evident among 2040 years age group, from urban areas. Currently there are few Ice Cream products targeted at this segment, however, leading brands have launched products that promote good health. Campina Lu Ve Litee is low in fat and 100% dairy free, and Bauvita offers limited calorie fruit based Ice Cream bars. The demand for good-for-you, low/no sugar, low fat or nutrient fortified Ice Cream will grow in 2014-2019. Innovation and premiumization to play a key role: Leading Ice Cream brands in Indonesia are constantly innovating and launching new products in order to grab consumer attention. The majority of Ice Cream sales is impulse driven, and the visibility of product attributes such as new flavors and textures and other aspects such as fun and enjoyment, to the consumer is what drives this impulse. Another growth area for Ice Cream in Indonesia is premium products, their sale is increasing due to rising income levels and the expansion of middle class. 39 39 Table of Contents • Country Context • Market Overview • Retail Landscape and Key Distribution Channels • Packaging • Company and Private Label Share • Consumer Trends • Examples of New Product Development • Appendix 40 Examples of new product developments in the Indonesian Ice Cream market Brand: Secret Sensations Manufacturer: Hangen Dazs Häagen Dazs, offers various indulgent products such as the Secret Sensations Chocolat Fondant. The rich chocolate Ice Cream has bits of brownie and chocolate sauce centre and can be consumed straight from the tub for moments of “me-time”. Trend alignment: Indulgence Brand: Mini Honeycomb Crunch Manufacturer: Unilever Magnum has released a pack of four Honeycomb Crunch and two Classic Ice Cream bars, of 270 ml each. These are ideal for consumption when and individual wants to unwind and relax. Trend alignment: Personal Space & Time 14/05/2015 5/14/2015 5/14/2015 Brand: Banana Boat, Paddle Pop Manufacturer: Unilever Wall’s Paddle Pop which targets kids, has recently launched Banana Boat. It is designed like to imitate a banana with a peelable outer yellow layer like an original banana peel, which kids find attractive and fun. Trend alignment: Changing Age Structures Brand: Hula Hula Manufacturer: PT.Campina Campina has recently Hula Hula Ice Cream in green beans and black sticky rice flavors to appeal to consumers who seek to experience traditional Indonesian flavors. Trend alignment: Experience Seeking 41 41 Table of Contents • Country Context • Market Overview • Retail Landscape and Key Distribution Channels • Packaging • Brand Share • Consumer Trends • Examples of New Product Development • Appendix 42 Appendix - Country Context Exchange Rates: US$-IDR , 2009–2019 Year US$-IDR Exchange Rate (Annual Average) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 10,389.94 9,090.43 8,770.43 9,386.63 10,461.24 11,870.83 12,506.99 13,168.63 13,664.01 14,091.66 14,488.67 GDP Per Capita (IDR) Year GDP Per Capita (IDR) 2009 2010 2011 2012 2013 2014 23,606,369.5 26,786,380.5 30,431,243.7 33,335,897.6 36,355,429.0 39,826,259.0 Population Year 2009 2010 2011 2012 2013 2014 Total (Millions) 237.5 240.7 243.8 246.9 249.9 252.8 Annual Growth (%) 1.4% 1.3% 1.3% 1.3% 1.2% 1.2% Year 2009 2010 2011 2012 2013 2014 Index 100.0 105.1 110.8 115.2 122.6 130.3 Consumer Price Index Age Profile (Millions of Persons) Age Group Total (Millions) 0 to 9 10 to 19 20 to 29 30 to 39 40 to 49 50 to 59 60 to 69 70 to 79 80+ 43.6 45.1 40.7 40.1 33.7 24.6 14.2 8.2 2.6 43 Appendix – Sector Overview Indonesia’s Food sales Distribution (US$ Billion) 2010 2013 Hypermarkets & Supermarkets 13.7 13.8 Convenience Stores 12.0 12.3 Food & Drinks Specialists 10.7 10.3 Others 3.5 3.4 Indonesia’s Ice Cream Market Value by Category (US$ Million and IDR Million) 2014 Value (US$ Million) 2009–2014 CAGR (%) 2014–2019 CAGR (%) 2014 Value (IDR Million) 2009–2014 CAGR (%) 2014–2019 CAGR (%) Impulse Ice Cream - Single Serve 285.4 8.4% 7.7% 3,387,803.7 11.4% 12.1% Take-home and Bulk Ice Cream 149.4 8.8% 8.2% 1,773,252.4 11.7% 12.6% Artisanal Ice Cream 141.2 8.5% 7.3% 1,676,322.5 11.5% 11.7% 44 Appendix – Sector Overview Indonesia’s Ice Cream sales Distribution (US$ Million and IDR Million) – Off-trade 2014 Value (US$ Million) 2009–2014 CAGR (%) 2014–2019 CAGR (%) 2014 Value IDR Million) 2009–2014 CAGR (%) 2014–2019 CAGR (%) Impulse Ice Cream - Single Serve 251.6 8.4% 7.8% 2,987,225.1 11.4% 12.1% Take-home and Bulk Ice Cream 119.6 8.9% 8.5% 1,419,800.6 11.8% 12.9% 6.2 8.6% 7.7% 74,007.8 11.5% 12.1% Category Artisanal Ice Cream Indonesia’s Ice Cream sales Distribution (US$ Million and IDR Million) – On-trade 2014 Value (US$ Million) 2009–2014 CAGR (%) 2014–2019 CAGR (%) 2014 Value IDR Million) 2009–2014 CAGR (%) 2014–2019 CAGR (%) Artisanal Ice Cream 135.0 8.5% 7.3% 1,602,314.6 11.5% 11.7% Impulse Ice Cream - Single Serve 33.7 8.5% 7.3% 4,00,578.7 11.5% 11.7% Take-home and Bulk Ice Cream 29.8 8.5% 7.3% 3,53,451.8 11.5% 11.7% Category 45 Appendix – Sector Overview Components Of Change (Off-trade) 2013-2014 Annual (%) Food Price Inflation 6.8% Change in Sales Value 11.8% Change in Sales Volume 7.0% Change in Average Price Paid 4.5% Trading Down -2.3% Components Of Change (On-trade) 2013-2014 Annual (%) Food Price Inflation 6.8% Change in Sales Value 11.6% Change in Sales Volume 8.8% Change in Average Price Paid 2.6% Trading Down -4.2% 46 Appendix – Category Data Impulse Ice Cream – Single Serve Market Value 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value (US$ Million) 190.3 241.6 278.6 289.8 290.0 285.4 302.8 321.8 347.4 378.2 413.6 Growth (%) 3.6% 27.0% 15.3% 4.0% 0.1% -1.6% 6.1% 6.3% 8.0% 8.9% 9.4% Value (IDR Billion) 1.98 2.20 2.44 2.72 3.03 3.39 3.79 4.24 4.75 5.33 5.99 11.0% 11.1% 11.2% 11.3% 11.5% 11.7% 11.8% 11.9% 12.0% 12.3% 12.4% Growth (%) Take-home and Bulk Ice Cream Market Value 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value (US$ Million) 98.0 125.0 144.6 150.9 151.5 149.4 159.0 169.7 184.2 201.7 221.9 Growth (%) 3.9% 27.5% 15.7% 4.4% 0.3% -1.4% 6.5% 6.7% 8.5% 9.5% 10.0% Value (IDR Billion) 1.02 1.14 1.27 1.42 1.58 1.77 1.99 2.23 2.52 2.84 3.22 11.4% 11.5% 11.6% 11.7% 11.8% 11.9% 12.2% 12.4% 12.6% 12.9% 13.1% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value (US$ Million) 93.8 119.3 137.8 143.5 143.6 141.2 149.6 158.7 170.9 185.1 201.3 Growth (%) 3.8% 27.2% 15.5% 4.2% 0.1% -1.7% 6.0% 6.1% 7.7% 8.4% 8.7% Value (IDR Billion) 0.97 1.08 1.21 1.35 1.50 1.68 1.87 2.09 2.33 2.61 2.92 11.2% 11.3% 11.4% 11.5% 11.5% 11.6% 11.6% 11.7% 11.7% 11.8% 11.8% Growth (%) Artisanal Ice Cream Market Value Growth (%) 47 Appendix – Segment data Market Share by Segment by Value Category Impulse Ice Cream – Single Serve Segment’s Share, 2014 Segment’s Share, 2019 Dairy-Based 77.1% 77.3% Off-trade Water-Based 11.0% 11.0% On-trade On-trade 11.8% 11.6% Off-trade Artisanal Ice Cream 4.4% 4.5% On-trade On-trade 95.6% 95.5% Off-trade Dairy-Based 73.8% 74.9% Off-trade Water-Based 6.3% 6.0% On-trade On-trade 19.9% 19.1% Off-trade / On-trade Segment Off-trade Artisanal Ice Cream Take-home and Bulk Ice Cream 14/05/2015 5/14/2015 5/14/2015 48 48 Appendix – Packaging Data Packaging Materials in 2014 Vs. 2019 (Millions of Packs) Packaging Material 2014 2019 Flexible Packaging 372.9 910.1 Rigid Plastics 269.3 637.3 Paper & Board 136.4 358.9 Container Types 2014 2019 Bag/Sachet 372.9 910.1 Tub 284.1 691.9 Wrapper 65.6 167.0 Cup 46.7 111.3 Box 9.4 26.0 Container Types in 2014 Vs. 2019 (Millions of Packs) 49 Appendix – Packaging Data Closure Types in 2014 Vs. 2019 (Millions of Packs) Closure Types 2014 2019 Prize Off 284.1 691.9 Cap 19.0 44.9 Other 27.7 66.5 Outer Types 2014 2019 Box 23.2 51.1 Outer Types in 2014 Vs. 2019 (Millions of Packs) 50 Category definitions Category Definition Artisanal Ice Cream Artisanal Ice cream manufactured (both dairy and water-based) by small local producers for sale on the premises. Also includes branded gourmet ice cream and includes both on and off trade consumption. Impulse Ice Cream - Single Serve Impulse Ice Cream - all dairy- and water-based ice creams. Includes single-serve ice cream tubs, packaged cones (e.g. Cornetto), ice cream sandwiches, and chocolate-coated ice creams (e.g. Magnum). Includes low fat dairy, oil-based products (other than frozen yogurt) and ice-lollies. Includes all on-trade and off-trade consumption. Take-home and Bulk Ice Cream Take-home Ice Cream - includes all diary and water-based ice cream products sold for take-home and bulk consumption. Includes multiple-serving ice cream tubs (e.g. Ben & Jerry's, Carte d'Or, Häagen-Dazs) and, ice-cream cakes (e.g. Vienetta). Includes low-fat dairy- and oil-based products (other than frozen yogurt). Also includes sorbets. Includes all on trade and off trade consumption. 51 Segment definitions Category Definition Artisanal Ice Cream Artisanal Ice Cream Artisanal Ice cream manufactured (both dairy and water-based) by small local producers for sale on the premises. Also includes branded gourmet ice cream and includes both on and off trade consumption. Dairy-Based Dairy- or vegetable oil-based ice cream products purchased for immediate consumption. Includes low fat dairy and oil-based products (other than frozen yogurt). Water-Based Water-based frozen desserts purchased for immediate consumption. Includes single serve sorbet/sherbert tubs and ice lollies e.g. Calippo Dairy-Based Dairy- or vegetable oil-based ice cream intended for consumption in the home, as opposed to an impulse purchase for immediate consumption. Includes multiple-serving ice cream tubs and icecream cakes. Includes low-fat dairy- and oil-based products (other than frozen yogurt). Water-Based Water-based frozen desserts intended for consumption in the home, as opposed to an impulse purchase for immediate consumption. Includes multi-serve sorbet/sherbert tubs and ice lollies e.g. Calippo Impulse Ice Cream Single Serve Take-home and Bulk Ice Cream 52 Channel definitions Channel Definition Hypermarkets & Supermarkets Hypermarkets/mass merchandisers include all sales through retailers with floor area over 2,500 sq m that carry full lines of both grocery and general merchandise (e.g. Wal-Mart). Supermarkets include all sales through retailers with a floor area of 300 sq. m. -2,500 sq. m. that offer a wide, departmentalized range of groceries, and may carry some general merchandise lines (e.g. Sainsbury's, Kroger). It also includes hard grocery discounters such as Wal-Mart. Convenience Stores Includes all sales through stores of an area generally less than 300 sq m, that specialize in a limited range of food & grocery products designed primarily for consumers with top-up shopping needs. Also includes sales in retail outlets attached to gas stations, where fuel is the main revenue driver, kiosks, and newsstands. This also includes small independent retailers, particularly those present in countries such as China and India. Food & Drinks Specialists Includes bakers, butchers, delicatessens, drinks specialists, fishmongers, greengrocers, Food & drinks only stores, and single category stores (e.g. stores selling only cheese, or only olives, or only honey, or only Confectionery products) Example: Amul Ice Cream shops In India. On-trade Sales through consumer foodservice outlets include cafés/bars, FSR (full-service restaurants), fast food, self-service cafeterias and street stalls/kiosks. Sales to semi captive foodservice outlets are also which include the outlets located in leisure, travel and retail environments. Other Retailers Includes “Dollar Stores”, Variety Stores & General Merchandise Retailers, Cash & Carries & Warehouse Clubs, Department Stores, Drug stores & Pharmacies, eRetailers, Vending Machines and other generalist retail channels not included in the categories above (e.g. market traders, charity stores, student union stores, direct sales, and Duty Free shops). 53 Methodology This report features data derived from market data. Market Data In order to create the data for all reports in this series and ensure their robustness, a comprehensive and empirically robust research methodology has been adopted. This combines both a large-scale program of industry research with the results of extensive primary industry interviewing and calling. Furthermore, all definitions are standardized across products and countries to ensure comparability. The two main research methods, secondary research and primary research (the program of interviewing industry contacts), are brought together and because both sets of research processes have been designed in conjunction with each other they can be combined and consolidated into the final, integrated data sets. The secondary research process involves covering publicly available sources, trade associations, specialist databases, company annual reports, and industry publications. Primary research involves a major program of interviewing leading industry executives for each category covered in each country – all with local country experts; typically brand, product and marketing managers for major brands within each country. These processes help analysts in capturing both qualitative and quantitative information about the market. The final stage of the process is the triangulation of inputs obtained from all the research methods with the analyst’s own understanding of the market in order to finalize the data. Once the data is finalized, it goes through various top level quality checks prior to publishing. 54 About Canadean About Canadean Canadean is a full-service business information provider with in-house market research capabilities. We specialize in analysis across the Consumer Markets Value Chain, covering suppliers, producers, distribution and consumers. Canadean’s dedicated research and analysis teams consist of experienced professionals with an industry background in marketing, market research, consulting and advanced statistical expertise. We offer value-added market research, insight and strategic analysis and our products help companies to make better, more informed, strategic and tactical sales and marketing decisions. Canadean’s areas of expertise include online research, qualitative and quantitative research, industry analysis, custom approaches, and actionable insights. In addition Canadean has built a network of consultants and specialist researchers across more than 60 countries, each with in-depth industry experience and expertise enabling us to conduct unique and insightful research via our trusted business communities. Disclaimer All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Canadean. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Canadean delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such, Canadean can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect. 55