Food Manufacturers in SOUTHEAST ASIA Have a Recipe for Growth

Food for thought: security, diversity, and healthier options

The food industry is not just a big driver of GDP and employment in South East Asia, it is also crucial for ensuring the region remains food secure, especially during periods of shock to the supply chain, such as what we have been witnessing this year.

Food security within the region has been on the agenda since long before the COVID-19 pandemic. Even though most Asean countries already score well on the Food Security Index, governments here have quickly realised the need to maintain a constant supply of produce and ingredients.

Singapore, in particular, stands out in this regard. That a nation with less than 1 percent of its land area given over to agriculture aims to produce 30 percent of the food it consumes by 2030 illustrates the importance given to food security in South East Asia. Its government is not alone among Asean countries in boosting its food value chain with increased investment.

Food is not the only focus for ingredients manufacturing in South East Asia, which is rapidly driving and fulfilling demand for health and nutrition products.

It goes without saying that the coronavirus pandemic has brought with it a renewed focus on public health and personal wellness, especially in Asean countries like Singapore, Thailand and Brunei with the fastest ageing populations.

Growing concern over health has brought opportunities for nutraceuticals ingredients suppliers, whose nutritional products are used to boost physical conditioning and the immune system, many of which are sourced from or manufactured in South East Asia.

Although there is no evidence that any functional foods or supplements can protect against the novel coronavirus, consumers have been increasingly turning to products that promise to improve their immunity, such as vitamin C.

Early on in the pandemic, ballooning demand for vitamin C left stocks running low in South East Asian pharmacies and health food stores, while some regional health authorities began buying up the supplements to be given to schoolchildren.

With old age, weak immune system, obesity and diabetes cited as risk factors leading to higher death rate from Covid-19, demand for other nutraceuticals such as ginseng, boysenberry, Ayurvedic formulations and vitamin D has also rocketed.

Though the market for nutritional supplements in South East Asia was forecast to be worth US$10.6 billion by 2026, the impact of this increased health awareness on the market is yet to be gauged, but expect it to be huge.