Australian food innovators in the ASEAN market

Australian agribusinesses and food innovators have the opportunity to take advantage of health and wellness trends in the ASEAN market, according to a report from CSIRO and KPMG.

The ‘Food for health’ report revealed health and wellness is one of the fastest growing food and beverage categories globally, accounting for 20% of the US$2.181 billion global packaged food market. Professor Martin Cole, Deputy Director of CSIRO Agriculture and Food, explained that in the ASEAN region, or the Association of Southeast Asian Nations, this may be due to the increase in chronic diseases linked to diet.

“For the ASEAN region, the links between nutrition and health are increasingly under the spotlight. The region is forecast to experience a sharp rise in chronic health conditions such as obesity, type 2 diabetes, cardiovascular disease and cancer. The role food and diet can play to prevent these illnesses becomes crucial,” he said. “Using emerging science and Australian innovation in areas such as functional foods, alternative protein and CSIRO’s capabilities in digestive testing and modelling means, as a nation, we have a compelling offer to meet the needs of the ASEAN market.”

According to the report, daily protein consumption in ASEAN has grown by 50% over the past 30 years, and the global market for probiotics in ASEAN is growing by 7.1% per year.

Four consumer-led market opportunities were identified for food producers and governments: health by stealth, alternative proteins, gut health and precision nutrition. The report suggested three core approaches for Australian businesses entering the health and wellness ASEAN market.

Personalisation is key to customer satisfaction, and this applies to regional differences. The first approach encouraged producers to meet local consumption preferences in specific markets. For example, success in ASEAN may be achieved by using Asian ingredients, tailoring marketing and branding, and utilising emerging channels to market, such as e-commerce.

The second approach suggested leveraging consumer awareness on health and wellness and increasing affluence. Informed ASEAN consumers are more likely to seek out healthy products, even more expensive premium products, which meet their personal requirements. The report found over a third of ASEAN consumers demand personalised nutrition, providing producers with the opportunity to create targeted food solutions with health and wellness at the core.

Finally, the report said partnering with local stakeholders will allow Australian businesses, which are already widely trusted as partners, successful entry and distribution in this market.

The ASEAN region is emerging as an international growth hub for premium, healthy foods and this means Australian food, health and wellness businesses are well placed for success, according to Ben van Delden, KPMG Australia Partner and Agtech Sector Leader.

“Australian businesses and researchers are known for their strengths in this area and can apply expertise and creative development to form products and business models that meet the complex needs of the ASEAN consumer. However, there is work to be done to finesse market-entry approaches and ensure alignment to the complex region and its dynamic base of consumers.”

Image credit: ©stock.adobe.com/au/Chinnapong