WE HAVE SEEN major brands such as Nestle, Carlsberg, Kirin, and Fonterra highlight pivotal shifts in the global food and beverage market.
Key trends include a growing demand for customised, health-oriented products and strategic corporate realignments towards more efficient and innovative operations.
These developments present both challenges and opportunities for exporters seeking to capitalise on evolving consumer preferences and market dynamics.
Market Trends
1. Customisation and Health-Oriented Products
The trend towards health-conscious and customised products is gaining momentum, particularly in the Asia-Pacific (APAC) region. Nestle's launch of espresso concentrates tailored for the APAC market exemplifies this shift. The company's foray into ready-to-serve coffee concentrate sticks in Vietnam, designed to meet local tastes, underscores the importance of customisation in driving market penetration and consumer satisfaction. Nestle’s strategy to expand this category regionally with widely recognised espresso variants indicates the potential for exporters to cater to specific consumer preferences through tailored offerings.
2. Premiumisation and Innovation in Alcohol-Free Beverages
Carlsberg Malaysia's commitment to additional investments in its SAIL business strategy, particularly in premium and zero-alcohol segments, reflects a broader industry trend towards premiumisation and innovation. The firm's focus on enhancing digitalisation and supply chain efficiency further illustrates the strategic importance of operational excellence. This trend is driven by increasing consumer demand for premium products and healthier beverage options, providing exporters with opportunities to collaborate in product innovation and leverage improved supply chain capabilities.
3. Strategic Partnerships for Global Reach
Kirin’s partnership with Chilean wine giant Concha y Toro to develop premium wines showcases the strategic value of cross-border collaborations. The Pacific Link Project aims to produce wines that combine the distinct flavours of Japanese and Chilean origins, leveraging seasonal differences to create unique products. This initiative highlights the potential for exporters to expand their market reach through strategic alliances that enhance product diversity and appeal.
4. Focus on B2B Services and Ingredient Innovation
Fonterra's strategic shift towards prioritising its B2B services and divesting consumer brands signifies a move towards specialised, high-value market segments. By focusing on its core strengths in ingredients and foodservice, Fonterra aims to streamline operations and maximise value. This transition underscores the importance for exporters to identify and capitalise on niche markets where they can offer specialised products or services that meet specific industry needs.
5. Portion Control and Ingredient Quality in Snacking
The APAC snacking sector's emphasis on portion control and better ingredient use, as highlighted by leaders like Mondelez and Hunter Foods, points to a growing consumer preference for healthier snack options. This trend has been accelerated by heightened competition within the sector, driving companies to innovate in both product development and packaging. Exporters can leverage this trend by focusing on product formulations that balance health benefits with taste, catering to the increasing demand for nutritious snacks.
Strategic Actions
1. Innovate with Customised Health Products
To tap into the rising demand for health-oriented and customised products, exporters should invest in market research to identify specific consumer preferences and health trends in target markets. Developing or enhancing products that cater to these preferences can boost market penetration and consumer loyalty. For instance, offering a range of customised coffee concentrates, similar to Nestle's approach, can address regional taste variations and health consciousness.
2. Embrace Premiumisation and Alcohol-Free Innovations
Exporters should explore opportunities in the premium and zero-alcohol segments by collaborating with industry leaders like Carlsberg Malaysia. Investing in digitalisation and supply chain enhancements can improve operational efficiency and product innovation. By focusing on premiumisation, exporters can cater to consumers seeking high-quality, health-oriented beverage options, thereby increasing market competitiveness.
3. Forge Strategic Partnerships
Forming strategic alliances with international partners can enhance product diversity and global reach. Exporters can learn from Kirin’s collaboration with Concha y Toro, which combines regional expertise to create unique, globally appealing products. Such partnerships can facilitate entry into new markets and enhance brand recognition.
4. Specialise in B2B Services and Niche Markets
Exporters should consider specialising in high-value, niche markets by focusing on core strengths, similar to Fonterra's strategy. Prioritising B2B services and ingredient innovation can streamline operations and enhance market positioning. This approach can help exporters offer specialised products that meet specific industry demands, leading to higher value creation.
5. Innovate in Snack Formulations
To succeed in the competitive snacking sector, exporters should focus on developing products that balance health benefits with taste. Emphasising portion control and the use of high-quality ingredients can cater to the growing consumer demand for nutritious snacks. Innovating in product formulations and packaging can differentiate offerings in a crowded market.
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