BUSINESS SECTOR STUDY EUROPE PLANT FOOD SUPPLEMENTS May 2016 - PowerPoint PPT Presentation

INDUSTRY MISSION BUSINESS SECTOR STUDY EUROPE PLANT FOOD SUPPLEMENTS May 2016

Methodology reminder Based on the list of countries – GNP figures, growth, healthcare spending (trade offices, world statistics sites, public health administrations, etc.) – Food supplement revenue based on local statistics (public WHO sources, local chambers of commerce, etc.) – Upstream/downstream actors (chambers of commerce, WHO, Eurostaf, etc. + extrapolation on averages) – Distribution: local sources, statistics from national sites, healthcare sites, etc. – Employment (local healthcare industry statistics, trade offices + extrapolation on averages) Turnover of the market : sell-out TTC Companies (brand and web site) : all the companies are installed locally. To avoid the risk of accumulation. Plant food supplement ⤷ Formulation with a single plant ⤷ Formulation with an association of plants ⤷ Formulation with one plant minimum + no plant Date of the data : 2015

Food supplements in Europe 10,3 Md €

RESULTS OF THE STUDY

FRANCE SECTOR STUDY EUROPE PLANT FOOD SUPPLEMENTS

Sector study in Europe FRANCE Total population 66 millions GNP 2.180 Md € Economic growth 1,1% Healthcare spending 278Md € Annual per capita healthcare 4.212 € spending Weight of healthcare spending vs. GNP 12,75%

Sector study in Europe Sector study in Europe FRANCE FOOD SUPPLEMENT PLANT FOOD SUPPLEMENT Food supplement revenues 1,5Md € PLANT food supplement revenues 960M € % PLANT food supplements vs total food 64% supplements Average annual per capita spending 23 € Average per capita spending 14,55 € Average growth 3,9% Growth vs N-1 +1% Upstream actors Upstream actors Extractors/Ingredient specialists 57 Extractors/Ingredient specialists 43 Manufacturers 34 Manufacturers 29 Downstream actors Downstream actors Brands 431 Brands 351 Weight of Plant brands vs total brands 81% Distribution (points of sale): 25.050 Distribution (points of sale) 25.050 Pharma/Diet/Web/supermarkets Pharma/Web/supermarkets Weight of plant distribution vs total 100%

Sector study in Europe FRANCE JOBS from plant food supplement Jobs generated by upstream actors 1.872 Jobs generated by downstream actors 6.090 Total jobs generated by plant food supplements 7.962 Growth N-1 - Total jobs generated by food supplements 15.765

ITALY SECTOR STUDY EUROPE PLANT FOOD SUPPLEMENTS

Sector study in Europe ITALY Total population 59 millions GNP 1.934 Md € Economic growth +1,6% Healthcare spending 162 Md € Annual per capita healthcare 2.745 € spending Weight of healthcare spending vs. GNP 8,4%

Sector study in Europe ITALY FOOD SUPPLEMENT PLANT FOOD SUPPLEMENT Food supplement revenues 2,4Md € PLANT food supplement revenues 1,07Md € % PLANT food supplements vs total food 45% supplements Average annual per capita spending 41 € Average per capita spending 18,1 € Average growth 4% Growth vs N-1 1% Upstream actors Upstream actors Extractors/Ingredient specialists 51 Extractors/Ingredient specialists 44 Manufacturers 39 Manufacturers 22 Downstream actors Downstream actors Brands 445 Brands 365 Weight of Plant brands vs total brands 82% Distribution (points of sale): 22.150 Distribution (points of sale) 22.150 Pharma/Diet/Web/supermarkets Pharma/Web/supermarkets Weight of plant distribution vs total 100%

Sector study in Europe ITALY JOBS from plant food supplement 3.402 Jobs generated by upstream actors 6.494 Jobs generated by downstream actors 9.896 Total jobs generated by plant food supplements - Growth N-1 17.612 Total jobs generated by food supplements

OVERALL ¡RESULTS

3 key pieces of information for the PLANT food supplement market 63% of revenue is from Plant food supplements Share ¡of ¡ ¡food ¡suppl. ¡vs ¡PLANT ¡food ¡ Plant food supplements suppl. in Europe 37% 63% 6,5Md € Plant food suppl. M € Food suppl. without Plant M € +100.800 jobs Over 2,000 Directs (R&D, manufacturer, marketing brand…) 601.000 jobs companies Indirects ( communication agency, …) Brand • Extractors • Induced jobs Ingredient specialists • Distribution : seller, buyer … Manufacturers • 500.300 jobs

1 KEY CONCLUSION Learning 1 Breakdown of plant food supplements vs food supplements without plants Botanical food supplements account for two thirds of the market A significant weight of Plant Food Supplements in Europe Share ¡food suppl. ¡vs ¡PLANT ¡food suppl. 37% 63% Plant food suppl. M € Food suppl. without Plant M €

2 KEY CONCLUSION Learning 2 Weight of plant food supplements by country The majority of the countries are over 60%. All countries in Europe concerned Part Plant supplement food - % 76% 80% 71% 70% 70% 70% 69% 68% 68% 66% 65% 65% 65% 64% 70% 61% 60% 60% 60% 60% 55% 55% 60% 53% 50% 50% 45% 50% 40% 40% 30% 20% 10% 0%

3 KEY CONCLUSION Learning 3 Weight by country Disparities in terms of maturity of market but similar trends 4 countries account for 62% of PLANT food supplement revenue in Europe 10 countries = 84% Plant food supplement / country (M € ) 1400 1200 1000 800 600 400 200 0

4 KEY CONCLUSION Learning 4 Plant Food Supplements: a representative sector in terms of Revenue, Players and Employment

4 KEY CONCLUSION Employment breakdown by plant food supplement vs without About 50% of jobs plant category. generated by plant Plant food supplements account for 63% of revenue and 50% food supplements of jobs. Weight of jobs generated by Plant food supplement / by food +56,000 jobs supplement actors 73580 50,54% 80000 70000 60000 37395 35926 50000 40000 20173 30000 20000 10000 0 Upstram actors Downstream actors Upstram actors Downstream actors Plant food supplement generate TOTAL SUPPLEMENT FOOD PLANT SUPPLEMENT FOOD 101.000 DIRECT + INDIRECT JOB INDUCED JOBS : + 500.000

4 KEY CONCLUSION Strong representation of plant food supplement brands vs food supplement, compared to the weight of revenue. -> 63% of revenue on average but 71% of food supplement brands Comparaison Number of actors - upstream/downstreamactors 2259 2500 1602 2000 1500 1000 382 305 287 341 500 0 Extractor ingredients Manufacture Brand SUPPLEMENT FOOD PLANT SUPPL. FOOD

Strategy Evangelism Ebullition Specialization Massification Parameters •R&D • MARKETING • R&D + MARKETING •MARKETING Country/Volume Italy France Germany 1 Spain Poland UK Belgium 2 Austria Ireland Netherlands Sweeden 3 Greece Luxembourg Finland Romania Croatia Denmark Portugal Czech republic Bulgaria Slovakia Hungary Lithuania Latvia Slovenia Trend without PLANT Trend with PLANT Trend with PLANT

INDUSTRY MISSION BUSINESS SECTOR STUDY EUROPE PLANT FOOD SUPPLEMENTS May 2016