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Beverage Packaging Trends from Tipco Thailand

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Packaging Trends of Beverage
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Packaging Trends of Beverage

• Introduction of Tipco • Fruit Juice Market in Thailand • Consumer Trend • Packaging Trend

Topics

TIPCO Beverage Products

j

/ 6

JUICE (J)

NECTAR (N)

STILL DRINK (SD)

Juice beverages with 100% juice content

Juice beverages with 25-99% juice content

Beverages with 0-24% juice content 4 Sub Groups: • Fruit/Flavored Still Drink (FFSD)

• Minute Maid, Jele’, Mogu Mogu and etc. • RTD Tea • Sports & Energy Drink • RTD Coffee

Juice category definitions by juice content

Source: Greenday –Qualitative Research

100% Premium Juice –Major Player’s Share Total Thailand

4,285 MB

3% 3%

9%

17%

25%

43%

Year 2012

Sappe' UFC Others Total Unif Total Malee Total Tipco

12%

Market Size Growth

Continuous growth of Premium & Economy segments led to higher market value.

Fruit Content - Premium (90% +) - Medium (26-89%) -Economy (20-25%) -Super (<20%)

Premium

Other???

Economy

Source: Retail Index

Homescan | Fruit Juice for Tipco, Oct 2012

+19%

+7%+12%

70.5% 72.8%

+7%-0%

+2% +5%

Key Purchase Measures of Total Fruit Juice Urban Thailand,

YTD Mid Aug11 & YTD Mid Aug12 Expenditures (Million Baht)

# of buying HHs (Million)

Avg. Spend per buying HH (Baht)

Avg. Spend per Trip (Baht)

Avg. Price (Baht) per Liter

Avg. Volume Bought (ML) per Trip

In-home expenditures on Fruit Juice was driven mainly by more buying households.

Avg. # of Trips

Penetration !

- More expense on promotion (+20% value growth)

Homescan | Fruit Juice for Tipco, Oct 2012

+13%

-1%+15%

40.8% 43.3%

-0%-1%

+2% -2%

Key Purchase Measures of Premium Fruit Juice

Urban Thailand, YTD Mid Aug11 & YTD Mid Aug12

Expenditures (Million Baht)

# of buying HHs (Million)

Avg. Spend per buying HH (Baht)

Avg. Spend per Trip (Baht)

Avg. Price (Baht) per Liter

Avg. Volume Bought (ML) per Trip

Key driver for Premium segment was penetration.

Avg. # of Trips

Penetration !

Homescan | Fruit Juice for Tipco, Oct 2012

+32%

+20%+10%

39.0% 39.8%

+19%+1%

+1% +18%

Key Purchase Measures of Eco & Super Economy Urban Thailand,

YTD Mid Aug11 & YTD Mid Aug12 Expenditures (Million Baht)

# of buying HHs (Million)

Avg. Spend per buying HH (Baht)

Avg. Spend per Trip (Baht)

Avg. Price (Baht) per Liter

Avg. Volume Bought (ML) per Trip

Consumers accepted Eco & Super Economy segment quite well.

Avg. # of Trips

Penetration !

Derived Segmentation of Need by Occasion of Drinks

Based on need statement by different occasions of drink; the market can be explained into 6 segmentations by occasions of drink as the following;

40.0%

28.5%

13.5%

7.0%

6.0% 5.0%

Energy Boost

Healthy-Hungry Trading

Pure and Natural

Calm down & Concentrate

Reward myself

Slim & Good looking

Consumer Trends

5 Top Global Packaging Trends Packaging Digest, May 2013

1. Sustainability – Important, but not top of mind – Expect “green”, but less willing to pay premium

2. Authentic, Credible, Traceable – Connection between products and their origins

3. Branding – Heritage, limited edition, seasonal / event related

5 Top Global Packaging Trends Packaging Digest, May 2013

4. Shoppers manage their budgets – Just in time purchasing (TESCO Extra and Express) – Easy to carry packs with smaller price points

5. Wellness: What shoppers seek – “Suitable for”, natural / organic, 100% – Vitamins / antioxidants / minerals – Clinically tested

http://www.youtube.com/watch?v=UaSN06krUI8 http://www.youtube.com/watch?v=RraIN3URPPA

Sustainability • Eco friendly packaging in terms of

: Light weight plastic bottle (Reduce the amount of resin)

: Bio degradable plastic and paper materials (Reduce the amount of waste and pollution from used packaging)

Sustainability • Carbon footprint (Concern about the total sets of CO2 emission)

• Beneficial safe and healthy material use (Free from plasticizers and Acetaldehyde in PET)

• Attractive labeling

Still Fruit Drinks and Juices & Nectars packaging development

Overview • Overall both, Still Fruit Drinks (SFD) and Juices and Nectars

(J/N), are forecasted to see positive growth over the coming years

• Carton will strengthen its leading position for J/N

• Overall, plastic bottles are dominating the segment due to their high share in the leading sub segment SFD

• Innovations, e.g. products with extra health benefit, from key players in the market has driven the growth of juices and nectars in carton in the recent years

• Generally, smaller size packs below 1 liter will remain the most popular ones in SFD while juice are driven by 1L packs

SFD and J/N packaging development Total Thailand

249 325

431 520

605 67 64

81

87

94

62 59

67

76

82

9 6

8

5

6

55 59

65

70

73

2007 2009 2011 2013 2015

Others

Pouch

Can

Glass

Carton

PlasticBottles

Total SFD and J/N by packaging type (Mio. L)

" Positive outlook for the SFD and J/N market despite some slow down in the future

" Plastic will continue to be the market driver as SFD are supposed to gain even more popularity; carton benefits from the growth of juices & nectars

447

519

655

864

16%

26%

14%

Total SFD and J/N by packaging type (Mio. L)

760 16%

XX% Growth YoY (%)

56% 63% 66% 68% 70%

15% 12% 12% 11% 11% 14% 11% 10% 10% 10% 2% 1% 1% 1% 1% 12% 11% 10% 9% 8%

2007 2009 2011 2013 2015

Others

Pouch

Can

Glass

Carton

PlasticBottles

Total SFD and J/N Fruit juice by packaging type (% share)

In Thailand, carton is clearly dominating the juices & nectars sub segment ; in the future, carton is supposed to gain a market share of over 90% driven by key players Tipco and Malee

Juice & Nectars packaging development Total Thailand

2007 2009 2011 2013 2015Glass 0.6 0.4 0.4 0.4 0.6Can 1.7 1.6 1.8 1.9 2Plastic 5.6 5.5 6.9 7.7 8.3Carton 67 63.8 78.8 84.8 92.2

67 64 79 85

92

6 6

7 8

8

75 71

88

103

-5%

24%

8%

Juices & Nectars by packaging type (Mio. L) 95 8%

XX% Growth YoY (%)

Still Fruit Drink is a cheaper category than Juice & Nectars and is mainly packed in plastic bottles

2007 2009 2011 2013 2015Carton 0 0.6 2 2 2.2Can 7.6 4.5 4.3 4.5 4.3Glass 61.4 58.8 66.8 75.5 81.7Plastic 243.6 319.8 424.4 512.1 597.1

244 320

424 512

597 61 59

67

76

82

XX% Growth YoY (%)

372

447

565

761

667

20%

26%

14%

18% Still Fruit Drinks by packaging type (Mio. L)

Still Fruit Drink packaging development Total Thailand

Smaller sizes (<749 ml) are dominating by almost 90% driven by SFD in PET while Juice is dominated by Carton 1L sizes

SFD and J/N packaging size mix Total Thailand

61% 54% 50% 49% 49%

26% 34% 38% 40% 40%

13% 11% 12% 11% 11% 0% 0% 0% 0% 0%

2007 2009 2011 2013 2015

>1000ml

750-1000ml

331-749ml

<=330ml

Market by size (% share)

Packaging Trends for future development

Carton : Strong growth

• Maintain quality of products

• Printing designs look attractive

PET : Cost reduction and toxic free

• Reduce the amount of resin beads / Shape / Design

• Additive Polymer to increase product shelf life / O2 Barrier

• BPA (Bisphenol A) / Bio / Eco

Glass Bottles : Limited growth

• Supply of materials

• Weight

• Cost & logistics

• Easily damaged

Future Development PET Trends

• Barrier Resin - O2 ingress - Increase shelf life - Protect sensitive products & ingredients

such as Vitamin C, Beer, Wine, Ketchup - Glass-clear appearance - Can be recycled

Oxygen Barrier Protect Taste & Colour Vitamin C Preservation

• Environmental Friendly - Light weight - BioPET Resin

Light Weight

Future Development

Carton meets Bottle

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