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Approaching Asia
Tom Poole
- Overview
• 45 years of international trade show experience across Asia & China
• Allworld Exhibitions introduces organisations and companies to trade
professional visitors across the Middle East & Asia
• Industries include: food, oil, gas, mining, machinery, woodworking,
communications, jewellery, defence, packaging, processing, plastics,
rubber
• Comprised of member companies in 13 countries
• Members currently organise 150 international exhibitions throughout the
world over a two year period
• Allworld Exhibitions continue to create opportunities in developing
markets
Asia Overview
•
Total population of Asia is 4.4 billion people – over 60% of the world population
•
4 of the 16 largest economies in the world are found in Asia
•
50% of Asia’s population is 32 or younger with a median age of 33.35
•
Asian nations use English as their language of business, and roughly 15% of the
whole continent can speak fluent English with an expanding group of countries
using English as their second language
•
Asia saw 279 million international arrivals in 2015 – growth of 6% from 2014
•
As of Jan 2015, almost 200 billion USD has been invested in Asia-Pacific airport
construction, accounting for 35.1% worldwide.
China - Overview
•
•
•
China is very interested in Ukraine because:
Population of 1.357 billion - largest
population in the world
GDP $17.6 trillion (largest in the world)
with steadily rising growth of 6.5-7%
forecast for the future
Largest food and beverage importer in the
world
-
its central location on the route between
China and the EU
-
Chinese have interest in a trading route that
bypasses Russia
-
Ukraine has good trade links with the EU
-
Interest in Ukrainian agricultural products
•
Rising incomes and reducing farmlands are
increasing demand for imported food
products
•
Key driver is huge rise in online purchases and
e-commerce forecast to grow nearly 50%
from 672 billion in 2015 to 911 billion US
dollars in 2016
•
In line with Asia – young population is driving
force behind changing tastes
China – Meat and Seafood
• China’s pork consumption is forecast to rise to 61 million tonnes this year,
up from 50 million 5 years ago and imports have risen on average 20% each
year in this period.
• EU has already begun capitalising on this market, with its pork exports to
China increasing 93% from Q1 2015 to Q1 2016.
• Chinese beef imports increased by 50% in 2015 compared to 2014
• China consumes 28% of world meat
• Though China is the world’s largest producer, consumer, importer and
exporter of fishery products, to meet growing in-country consumption,
imports are projected to increase.
• China’s fish imports are projected to hit 4.4 million tonnes by 2022,
growing by an average 2.1% annually.
China - Alcohol
•
5th largest wine consumer in the world
•
The premium imported beer market will grow
by value to over US$ 610 million in 2020
recording 148% growth from current figures
•
China’s spending wine imports grew 32% in
2014 from $1.13 bn to $1.49bn in 2015
•
Growing taste for alcohol a result of
Westernisation and growing middle class
•
Bacardi (Bacardi rum, Grey Goose vodka)have
recently selected JD.com to be their exclusive
partner for online spirit sales. Clearly seeing
potential in spirit market in China
•
With nearly 60 million tourist arrivals a year,
there is also a huge market for hotels, and
restaurants to source high quality spirits and
wines
•
China – Fruit
Decline in farmable land and increasing
population has created a growing
demand for fresh fruit
•
Food safety fears mean imported fruit is
seen as higher quality, and more
reliable
•
In 2014, China’s fresh fruit imports
increased 22.8% compared to the
previous year.
•
Huge demand for high quality fruits
namely: apples, grapes, cherries,
blueberries and citrus fruits
•
Large preference for fresh fruit
•
4 of 5 top fruit/veg imports are from
Northern Hemisphere
•
Non-native fruit requires focused
promotion, as awareness will be lower
Cherry imports into China
China – Dairy
•
40% increase in dairy imports in Q1 of 2016
•
Increases in demand for milk powder imports
•
Driven by demand from yoghurt and children’s food manufacturers
•
Nutritional demands, population growth and higher incomes have pushed
almost all dairy products demand up as well. Supply in China is already
largely outpaced by demand due to increased urban living and reduction in
producers
• The expanding middle class has led to an
increase of cheese imports (average
expansion of 14% per year since 2011)
China – Coffee
•
In line with Asia, huge increases in demand for coffee across China
•
From 2014 to 2019, Chinese coffee consumption is projected to rise 18% annually, as compared to the 0.9% in the
US
•
Chinese market less keen on bitter taste of unsweetened black coffee so bigger brands have created pre-made
packets including milk powder and sugar in order to satisfy taste demands
•
Chinese coffee drinkers prefer to sit and consume rather than ‘take-out’ so larger brands have combined coffee
shops with large seated areas.
•
Huge growth potential in coffee consumption in an already rapidly moving market – Japan for example consume
34 times as much coffee as China
China - Benefits
• Economy continues to grow even after rapid growth of last 20 years
• Continued growth has led to a growing middle income group with a young
driving force - keen on coffee, wine, good quality meat and tastes from
around the world
• Opportunity to market fresh ‘in-season’ products that may not usually be
available at that time of the year in China or from their surrounding import
partners
• Further increases in demand for wines from around the world that look set
to continue. Clear, established demand for South African wines exists
• Urbanisation has led to a fall in locally farmed produce so growing market
in imported fresh fruit, vegetables, wheat, nuts and dairy products
amongst many others – China is now a net importer of food
Facts and Figures
FHC China, Shanghai
7th- 9th November 2016
Venue: SNIEC - Shanghai New International Expo Centre, China
Show facts
FHC China 2015 statistics
- annual show
- established in 1996
- incorporates:
Meat @ FHC China 2016,
Tea & Coffee China 2016
Beer China 2016
Dairy China 2016
Fresh Produce China 2016
- 19th edition (running since 1994)
- 85,000 sqm
- 2,150 exhibiting companies from
66 countries/regions
- 39 international pavilions
- 66,561 trade visitors
Facts and Figures
Prowine China, Shanghai
7th- 9th November 2016
Venue: SNIEC - Shanghai New International Expo Centre, China
China wine market information
Show facts
•
Increase in demand for wine of around 40% over
last 5 years – 1.86 billion bottles of red wine sold
in 2012
- annual show
- established in 2013
- partnership between Allworld and
• Chinese wine market forecast to grow by at least
Messe Duesseldorf
5% every year until at least 2020
Prowine China 2015 statistics
•
In 2015 bottled wine imports rose by 38.7% in
volume to 297.7m litres and by 34.7% in value to
$1.4bn
- 3rd edition (running since 2013)
- sqm
- exhibiting companies from 66 • In 2015 bulk wine imports grew 100% compared
66 countries/regions
with 2014 – from 49 million litres, to 98 million
- 39 international pavilions
litres
- 66,561 trade visitors
Singapore – Overview
•
Population of 5.7 million and is the third
most densely populated country in the
world
•
Singapore is reliant on food imports for
over 90 per cent of its needs, having very
little agricultural land and limited domestic
food production - only one per cent of
Singapore's land area is used for
agricultural purposes
•
The number of US dollar millionaires in the city-state doubled in the five years to 2012, to more
than 183,000. By 2017 Singapore will be home to nearly 300,000 US dollar millionaires
•
Singapore has earned the distinction of being ‘one of the top 10 food cities in the world’ according
to Lonely Planet.
•
Singapore is one of the world’s most open economies and is highly dependent on international
trade. The volume of its external trade is about three and a half times its annual Gross Domestic
Product. Any decline in the economies of its major trading partners like the United States, the
European Union, Japan and China is immediately felt.
Singapore – Meat and Seafood
•
Currently 80% of beef in Singapore is imported from
Australia, New Zealand and Argentina – showing
Singaporeans will choose quality of product over
price
•
Two thirds of supermarket pork sales in Singapore are
Australian pork
•
Singapore saw an increase in spending on red meat
imports from US$572 million to US$698 million
between 2010 and 2012 - a 22% total increase
•
Fish and shellfish is deeply entrenched in Singapore’s
diet – fish and shellfish are staple foods that are
eaten almost every day. The majority is imported
from neighbouring Asian countries, but there is a
clear demand for quality seafood that could compete
with Singapore’s neighbours
•
Naturally China lead the market for Singapore’s
subtropical fish imports (salmon, mackerel, cod,
yellow fin tuna etc.) however other market leaders
include Chile, Norway and Australia showing there is
scope for other countries to penetrate the market –
South Africa are currently within the top 10 ranked
alongside USA and France
Singapore fish market potential
(H – High, M- Medium, L – Low)
Singapore – Wine, beer and spirits
•
According to Euromonitor, wine saw a 5% total volume growth in 2014, reaching 11
million litres in Singapore.
•
Singaporeans understand wine and follow new global trends. They have a
sophisticated set of experiences, which encourages the matching of wine with food
and trying wine from different countries around the world.
•
Alcoholic spirit consumption has increased by 83% in the last 5 years
•
It is predicted the craft beer market could grow 200-300% over the next 3 years, and
offers the biggest growth potential in alcohol
•
80% of alcohol imported to Singapore is beer, and annual growth of imports is
around 4%
•
Tiger (Singapore’s beer) is losing popularity because younger drinkers prefer
imported beers from around the world. Showing good prospects for beer exporters
Singapore – Fruit and Vegetables
•
The major suppliers of fresh temperate climatic fruit to Singapore are the United
States, Australia, New Zealand, European Union, China, South Africa, Argentina and
Chile
•
Between 2012 and 2015 Singapore saw a 14% increase in imports of fresh fruit
•
Interesting tropical fruits are papaya, pineapple, watermelon, passion fruit, star fruit,
guava and lychee. The first three perhaps are the highest demand as they are served
in all hotels and restaurants.
•
Australia compete with Asian nations in the market for vegetables in Singapore
across a variety of different vegetables. Though labour costs are cheaper in Asia
there is a clear market for quality and organic produce in Singapore - Australia
provide a quarter of the main vegetables consumed in Singapore including lettuce,
broccoli, carrot and asparagus
•
Quality, reliability, availability and good supply line connections are also important in
determining the source of vegetable imports in Singapore – not purely price
Singapore – Dairy
•
The increasing demand for dairy products in Singapore is met almost entirely
through imports. There is little to no domestic dairy production.
•
The major suppliers of dairy products to Singapore are European Union, Australia,
New Zealand
•
In 2015, Singapore imported an estimated 300,000 tonnes of dairy products, making
it one of the worlds leading importers.
•
Demand shows cheese imports growing at 5% per year. Healthier milk products such
as low fat and skimmed show the most growth potential.
•
The Singaporean dairy market had total revenues of $656.9m in 2014, representing a
compound annual growth rate (CAGR) of 5.1% between 2010 and 2014.
•
Market consumption volume increased with a CAGR of 4.7% between 2010 and
2014, to reach a total of 39.6 million kg in 2014.
Singapore – Coffee
•
Growth of Singaporean coffee sales stabilised at 3% in 2014 and is primarily in the
off-trade market. Imports are mainly for use in food service outlets including major
modern coffee shop chains.
•
In this particular market, coffee manufacturers have found success with premium
products, e.g., arabica coffee beans, coffee fortified coffee with additional nutrients.
•
There has been a gradual shift in coffee sales from business-to-consumer to
business-to-business. Some manufacturers see a huge potential for office sales as
working adults (the major consumer group of coffee products) tend to drink more in
the office environment during the week than they do at home on the weekend.
•
Though there is a strong domestic coffee culture, with the burgeoning expatriate
population combined with the growing youth, the market for specialty coffees is
expanding: though most over 30s still prefer Kopi Tiam (traditional Singaporean
coffee), some 20% of under 30s are drinking gourmet, with that number on the rise.
Singapore – Benefits
•
Fast growing incomes and highly educated population with strong demands for
wines, meats, dairy and organic produce – with a reliance on imports
•
Increasing preference for higher quality products, and Singaporeans are happy to
pay extra for this quality
•
A steady tourism industry, and business people travelling into Singapore from across
the world means by tapping into Singapore there is the opportunity to spread a
worldwide brand awareness when people return home
•
According to a Singapore Health Promotion Board in a recent survey half of those
surveyed ate out eight or more times a week – a clear demand for restaurant
products and variety
•
As the market for consumer oriented products is very open and easily accessible,
there is fairly quick entry for new comers.
Facts and Figures
Food and Hotel Asia, Singapore 24th-27th April 2018
Venue: Singapore Expo, Singapore
Biennial show, now in its 21st edition. Since its debut in 1978, FHA has always been the premier sourcing
platform for thousands of food and hospitality trade buyers in Asia and is Asia's largest international
food and hospitality trade event.
FHA 2016 statistics:
- 97,000 sqm
- 3,189 companies from 70 countries and regions
- 60 international pavilions
- 47,630 trade visitors – 19,953 from overseas
Incorporating:
Food Asia 2018, Hotel Asia 2018, Bakery & Pastry 2018, Hospitality Style
Asia 2018, Hospitality Technology 2018, Speciality Coffee & Tea 2018
Facts and Figures
Prowine Asia, Singapore, 24th-27th April 2018
Venue: Singapore Expo, Singapore
Asian wine market
Show facts
•
•
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annual show launched in 2016
Alternates between FHA and HOFEX
organised as a partnership between Allworld
and Messe Dusseldorf (Prowein organisers)
Established after success of Prowine
China partnership
FHA/Prowine Asia 2018 forecast statistics
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Demand for wine in Asia is on the rise, with the region
generation $28 billion of sales in 2013
•
Asia accounted for 48.6% of revenue from spirits sales
worldwide, while consuming 61.5% of the total world
volume
•
Southeast Asia sees 7 million new prospective drinkers
join the market yearly, with a 13% increase in spending
-105,000 sqm
-3,300 companies from 64 countries and regions •
-60 international pavilions
-50,000 trade visitors – 20,000 from overseas
Asian wine consumption is expected to grow by 22.84%
from 2013 to 2017
Malaysia – Overview
•
Population 30 million
•
With per capita income of over $9,890 and a
middle and upper class making up 61 percent of
the population, Malaysia shows good potential
for growth as a market for high value consumer
products
•
Food and beverage expenditure accounts for
25% of the total consumer spending
•
Steady GDP per capita growth since 2005 that is
forecast to continue
•
Total spend on consumer oriented fish products
top US$6 billion a year
•
Prospects for export are fresh fruits and
vegetables, pet foods, dried fruits, nuts, frozen
potatoes and processed juices
Malaysia – Meat and Seafood
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Malaysia is a country which is 60% Muslim who will only eat halal meat but no pork, the high
percentage of Hindus will not eat beef so the largest demand for meat in Malaysia tends to be
halal certified meat, poultry and seafood
•
Increases in consumer spending power though has seen the demand for red meat develop
over recent years – main imports are from India, Australia and New Zealand, in terms of beef
this requires halal for the Muslim consumers
•
Beef demand is forecast to increase by 98% between 2014 and 2030
•
Malaysia has a very high per capita consumption of fish and seafood, approximately
50kg per year since 2005 and this is forecast to continue to grow to 55kg per capita in 2020
•
Rises in fresh seafood prices have driven Malaysians to purchase more frozen seafood so there
is currently a big demand for frozen scallops, frozen prawns and fish, as well as fresh mussels
and oysters as a result of rising middle income families
Malaysia – Beer, wine and spirits
•
Malaysia is not a wine producing country and is import-dependent. The Malaysian wine
market value is estimated at US$76.63 million, with a total imported volume of
6,162 tonnes in 2011
•
Reasons for expansions in demand for wine are increased awareness, as well as
increased knowledge and appreciation for wines by the consumer, and also the fact wine
is more affordable and a healthier alternative compared to spirits
•
Though a majority Muslim country, Malaysia is still the 10th largest alcohol consuming
country worldwide – because of expatriates and tourism.
•
Beer import growth has continued at around 5% a year for the last 5 years, showing the
market is steadily growing.
•
There are only 2 commercial breweries in Malaysia
•
Craft beer movement is in its infancy, but shows huge potential over the coming years
Malaysia – Fruits & Vegetables
•
Though Malaysia produces a lot of fruit, it is still a net importer of fresh and processed fruits,
with an import value of approximately $174 million.
•
Malaysia imports almost 110,000 tonnes of apples per annum – with a growth of almost 40%
since 2003, due to urbanisation, modern retailers, and being an open market without import
restrictions
•
Malaysians are becoming increasingly health conscious due to the rise of diabetes,
hypertension, and obesity among the population, leading to foodservice operators adding
healthier food choices to their menus.
•
Malaysia tends to import temperate vegetables only, with import value $401.7 million.
Malaysia – Dairy
•
Malaysia is a principal market for skim milk powder (SMP). Imports grew 25% year-on-year
through to July 2014 and were projected to continue in this fashion.
•
In 2009-2011, 1.1 million tonnes of milk and milk products were imported into the country.
•
In general, the Malaysian dairy market has been growing at around 7% a year
•
Cheese is estimated to grow positively as the population becomes more health conscious,
given that cheese has high calcium and will benefit their children’s health.
•
Growing milk demands actually resulted in a shortage in supply during 2014, which has
encouraged further imports from overseas.
•
Drinking milk products are expected to grow by a value CAGR of 2% at constant 2014, as
drinking milk is also part and parcel of the trend towards healthy food.
Malaysia – Coffee and Tea
•
The first coffee wave in Malaysia was the local coffee in kopitiams, followed by commercialised
coffees in the late 80s and early 90s bringing the second wave. Malaysia now describes itself
as being in the third wave and focused on specialty coffees.
•
Consumers are looking for better-tasting coffee accompanied with better value for money, as
there are a high number of brands and variants available. Young people in particular are
demanding fashionable and convenient products
•
Malaysia is experiencing the ‘café culture’ movement and seeing more and more coffee shops
offering ranges of coffee products
•
Growth of coffee imports increased 7% in 2015
•
Consumers bought more products in 2014 as tea has a strong reputation for health benefits
and consumers are projected to be increasingly willing to try out new varieties and brands.
Malaysia – Benefits
•
Malaysians are already familiar with western foods and with western menus so they
have a taste already, and things like wine, dairy and meat all look set to expand
•
Supermarkets and hypermarkets are popular, with regular new openings providing
greater access for imported foods.
•
There is a growing level of health consciousness amongst Malaysians which means
there are demands for organic produce, a wider variety of fruit and vegetables, and
fruit/vegetable juices
•
Malaysia is looking to expand exports, using imports as raw materials – so there is
good growth potential in the basic ingredient level
•
A middle income group who have money to spend on new products once they enter
the market
Facts and Figures
FHM 2015, Kuala Lumpur - 26th – 29th September 2017
Venue: Kuala Lumpur Convention Centre, Kuala Lumpur, Malaysia
Show facts
- biennial show
- launched
Malaysia market information
•
Food and beverage expenditure accounts for 25% of the total
consumer spending
•
Spending on food service has grown an average of 7% per
year since 2008 due to busier working schedules, and the
sheer increase on food service outlets.
•
As higher numbers are dining out, their has been a
noticeable increase in demand for wine and beer amongst
Malaysia’s 40% non-Muslim population
FHM 2015 statistics
- 13th edition
- 17,000 sqm
- exhibitors from 50 countries
- 8 national groups
- 22,759 trade visitors
Facts and Figures
Food and Hotel Penang 2016, 15-17 November 2016, Penang
Venue: Straits Key Convention Centre, Penang, Malaysia
Show facts
• Biennial show
• Launched in 2014
• Run on alternate year to FHM
Penang market information
•
Additional 1,157 hotel rooms to be added to
Penang over next 2 years
•
Recent construction of SPICE and PWCC
convention centres are expected to spearhead
Penang’s thrust to be a major MICE destination by
the end of the decade.
•
Local dynamic food culture, along with a rise in
domestic and international visitors, has
contributed largely to the growth of Penang's
hospitality and tourism industry.
FH Penang 2014 statistics
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•
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2,084 sqm
2,000 trade visitors
240 participating companies
participants from 29 countries
2 national pavilions
Thailand - Overview
•
Continued spending from international arrivals
has led to a thriving tourism sector and as
consumers continue to spend – it continues to
grow
•
A sustained Western presence, and hence
Western products for the last 20 years has seen
the nation become increasingly brand aware. The
result is a huge rise in use of supermarkets
stocking worldwide products, rather than going to
traditional markets
•
Population of 67 million
•
Steady increase in GDP over last 10 years – though it
can be dependent on flooding and weather (2010 and
2012) at which point imports have become
increasingly important
•
Despite naturally occurring weather phenomenon
such as flooding and the tsunami, Thailand has
continued to see growth in international arrivals –
welcoming 28 million in 2015, the largest on
record
Thailand - Hotels & Tourism
•
Hotels and tourism make up almost 20% of the country’s gross domestic product; the
success of the economy is based around continued positive performance
•
Continued growth in this sector means a persistent need for new and innovative
products
•
According to the Thai Ministry of Tourism and Sports, 2015 tourist arrivals grew to
11.95 million, a 19% increase from the previous year.
•
A target of 31 million visitors has been set, generating around $42 billion in revenue.
•
With a number of leading international hotel chains entering the Thai market,
existing hotels are readjusting their marketing strategies and focusing more on
revenues from food and beverage sales. Travel and tourist markets are projected to
grow by 3.3% in 2016, and 7.7% per annum through to 2025.
•
4 and 5 star hotels are now generating around 40% of revenue from food and
beverage sales
Thailand - Seafood
•
Thailand is the fifth largest importer of fish and seafood in Asia.
•
Thais have a diet that includes a huge amount of fish and seafood, so demand will
always be high
•
Retail volume sales of fresh fish and seafood rose to 1.6 million tonnes in 2014, up
87,300 tonnes from the year previous. Euromonitor International has forecast that
this increase will continue through to 2018 to over 2.1 million tonnes.
•
Thailand produces a large amount of seafood for the local market, but there is always
demand for new types of imported fish and seafood.
•
Thailand has three different markets for imported fish and seafood
• the very large market for imported fish and seafood ingredients and inputs for
use by the seafood processing industry
• A smaller market for imported fish and seafood to meet foodservice industry
demands
• An even smaller, niche market of imported fish and seafood purchased by
expatriates and upper-income Thais who have been exposed to foreign fish
Thailand – Beer, wine and spirits
•
Wine is now regularly served at most social
functions and being a wine drinker is
perceived as a sign of social status.
•
Wine has achieved a high level of acceptance
among Thai consumers, typically aged
between 25-55 years.
•
For beer, Thai drinkers prefer flavour to cost
– with preferred beers being from Japan and
Germany
•
Increasing urbanisation, higher consumer disposable income, and a trend towards social drinking
have contributed to a demand for cocktail bars, where spirits are in high demand
•
Because of travels, the internet and social media the younger Thai generation have brought a big
demand for imported beer and spirits
•
The tourism factor brings with it a huge market for beer, wine and spirits across restaurants and hotels
Thailand - Fruit
•
Traditionally Thailand has preferred the taste and cheaper price of domestic tropical fruit,
however imported fruit is seen as a luxury item, and is rapidly growing in popularity
•
Recent imports have reflected the changing tastes of Thailand - a huge surge in spending on
blueberry and cranberry imports from the USA from US$9,572 in 2011 to US$173,646 in 2013
•
Changes in consumer spending patterns,
and an increased public awareness have
created a demand for fruits from around
the world
•
Huge tourist arrivals mean that
imported fruit is a must in order to
satisfy demands
•
Thailand fresh fruit and nut imports
increased 120% between 2010-2015
Thailand - Dairy
•
The raw milk industry in Thailand has seen an overall CAGR of 5.69% from 2007 to
2013, and a 10.46% increase between 2013 and 2014 alone.
•
Cheese recorded a growth of 7% value share in 2014 and has remained strong in the
last 3 years due to strong popularity of Western cuisine (e.g., sandwiches,
hamburgers, pizza, pasta) that requires a high amount of cheese in dishes.
•
Drinking milk products continued healthy value growth of 7% and volume growth of
6% with a lot of room for the market to grow.
•
Overall value growth in drinking milk products is anticipated with a 4% CAGR at
constant 2014 prices.
•
Yoghurt is similarly expected to show healthy growth in the coming years.
Thailand – Tea and Coffee
•
Tea has traditionally been consumed by older people in Thailand, but the target
consumer base has become younger and younger and ow covers adults of a working
age. This younger audience was not only interested in drinking tea in original
flavours, but also in sophisticated teas. There is great interest in trying new varieties.
•
Off-trade tea sales are expected to grow at a CAGR of 3% at constant 2014 prices
reaching Bt3.0 billion in 2019.
•
Coffee-drinking culture has also increased, especially in the 2014 through both ontrade and off-trade channels. Chained coffee shops, independent cafes, and
specialist coffee shops have all increased, with wider variety of products in terms of
flavours, packaging formats, and sizes.
•
Retail sales of coffee are expected to grow at a CAGR of 4% at constant 2014 prices,
reaching Bt39.9 billion in 2019. Growth is expected as more Thai consumers are set
to enjoy drinking coffee alongside having busier lifestyles.
Thailand - Benefits
• High growth in the number of hotels, resorts, and other tourist
accommodation continues to provide new opportunities for the sale of
imported food items
• Changing eating habits and Thai lifestyles are fuelling the growth in the
restaurant sector and consumers are now eating out more frequently
• The increase in the daily minimum wage have provided more disposable
income for Thai consumers to try new restaurants
• Shopping behaviour has moved away from the traditional open markets to
modern supermarkets which offer convenience and choice
Facts and Figures
Food & Hotel Thailand 2016, Bangkok - 6th to 9th September 2017
Venue: Bangkok International Trade & Exhibition Centre (BITEC), Bangkok, Thailand
Show facts
- annual exhibition
- launched in 1989
- trade only for all 4 days of show
- Thailand’s leading show for premium, gourmet,
and international product
FHT 2016 statistics
- 21,000 sqm
- 335 companies from 23 countries and regions
- 28,000 trade visitors
- 10% show growth from 2014 edition
- includes Thai International Culinary Cup and
ASEAN Culinary Challenge
Thailand market information
- population of 67 million
- ASEAN’s 2nd largest economy
- 2.9% GDP growth in 2015, with
4-5% forecast for 2016
- 2015 saw Thailand’s largest ever tourist arrivals of
29.5 million – 19% up on 2014 figures
Hong Kong – Overview
•
Population of 7 million
•
GDP per capita that has continued to
develop since 2001 despite worldwide
recession
•
Located within 4 hours travel time of:
Taiwan, Shenzen, Guangzhou, Manila,
Hanoi, Chengdu, Shangai
•
10th largest country in the world for
total trade, but the 100th largest in
terms of population
•
Significant number of imports are re
exported due to Hong Kong’s Central
Asia location, free port status and its
position as a regional purchasing and
distribution centre
•
Major import country with over 90% of
food supply imported – partly down to
varying tastes of Hong Kong, partly
down to free port status
Hong Kong – Meat
•
Largest meat consumer per capita in Asia,
and continued growth is forecast up to
2016 and beyond
•
Hong Kong has traditionally imported the
bulk of beef from China. However, younger
generations aren’t as interested in working
with livestock so production has fallen
leading to a shortfall of supply for Hong
Kong, this has shifted prices up and caused
a need for more imported beef partners
•
Hong Kong generally consumes more pork than of any other meat product (beef, poultry etc)
•
From 2003 to 2013 Hong Kong saw their import of chicken increase by over 100% from
154,000 tonnes to 325,000 tonnes
Hong Kong – Beer, wine and spirits
•
Demand for wine has risen rapidly since all wine import duties were removed in 2008,
rising from an import value of US$367 million to US$1.03 billion in 2012 – 183% growth
over 4 years
•
Craft beer is taking off in Hong Kong and imported high quality beers are the key areas of
growth (also local growth in Hong Kong breweries to meet demand). Overall beer
imports grew 2% in 2015, largely a result of craft beer
•
Beverages with less than 30 percent alcohol (primarily wines and beer) are not subject to
excise duty
•
Products with an alcohol content of less than 30 percent by volume do not require a
license or permit for import, export, manufacture, storage or distribution
•
Younger population reaching legal drinking age are well travelled and knowledgeable on
international drinks, and also interested in new types and flavours of spirits such as
vodka, gin, whisky.
Hong Kong – Fruit and Vegetables
•
Per capita consumption of fresh fruit and vegetables in Hong Kong is among the
highest in the world. However, the openness of the Hong Kong economy contributes
to the competitive nature of the fresh produce trade.
•
Hong Kong has a preference of fresh fruit over frozen fruit, and an increasing
demand for organic products that are generally priced 20-40% higher than regular
produce – prices can be high but need to reflect the quality of the product
•
In 2013, fruit and nuts import from Australia were valued at US$163 million,
representing 107 per cent growth compared to 2010 – a clear indication of the
market potential
•
The rising health consciousness of Hong Kong’s consumers is set to remain the key
driver of the positive performance anticipated in fruit/vegetable juice. Many
consumers are becoming more active in terms of trading up to categories such as
nectars (25-99% juice), not from concentrate, and 100% juice in search of products
with higher juice content and stronger health benefits.
Hong Kong – Dairy
•
Increased awareness of healthy living in Hong Kong. As a result, the aging
population has become more aware of the benefits of calcium which in turn has
boosted cheese consumption.
•
As with Singapore, Hong Kong are starting to demand high calcium, high protein,
low fat and skimmed milk drinks. Consuming dairy for health benefits.
•
Cheese is expected to register a CAGR of 2%, with growing health consciousness and
an aging population as the key drivers over the next 4 or 5 years.
•
Current key dairy suppliers in Hong Kong include The Netherlands, Australia, and
New Zealand.
Hong Kong – Coffee and Tea
•
Consumer interest in coffee has continued to rise in Hong Kong in 2014, despite it
traditionally being a tea-drinking location.
•
There have been an increasing number of cafes, coffee specialists and premium
coffee brands that target the growing group of sophisticated consumers.
•
Coffee drinking is a sign of international integration, especially among the younger
population.
•
Per capita consumption of tea by total volume in Hong Kong is one of the highest in
the Asian Pacific, second only to Japan.
•
Though the demand for black tea is mature, fruit/herbal and other teas are set to
continue to be one of the main growth drivers. Good tastes that make the product
easy to drink and be accepted by many consumers is an important factor in their
success.
Hong Kong – Benefits
•
With market leading per capita stats for wine, meat and fresh fruit consumption, Hong Kong
clearly has a strong growing demand for higher end Western produce
•
Consumers are receptive to innovative, nutritious and healthy products that can offer
additional benefits - being an affluent market, consumers will pay extra for the added
benefits or quality
•
A steady tourism industry, and business people travelling into Hong Kong from across the
world means by tapping into Hong Kong there is the opportunity to spread a worldwide
brand awareness when people return home
•
There is already a clear and growing demand for South African wine
•
Free port status means the cost of exporting goods to Hong Kong is less costly than other
nations
•
The nation is nearly completely dependent on imports – so there is a constant demand
Facts and Figures
HOFEX, Hong Kong 8th – 11th May 2017
Venue: Hong Kong Convention & Exhibition Centre, Hong Kong (SAR)
HOFEX 2015 statistics
Show facts
- established in 1987
- Biennial show, alternating with FHA
- incorporates Meat @ FHC,
HOFEX Hospitality Equipment,
Prowine Asia
- 16th edition
- 65,000 sqm
- 2,418 companies from 57 countries
- 37 international pavilions
- 38,053 trade visitors
Facts and Figures
Prowine Asia, Hong Kong, 8 – 11 May 2017
Venue: Hong Kong Convention and Exhibition Centre
Asian wine market
Show facts
•
•
•
annual show (switching between HK/Singapore) •
2nd edition at HOFEX 2017
organised as a partnership between Allworld
and Messe Dusseldorf (Prowein organisers)
•
Established after success of Prowine
China partnership
FHA/Prowine Asia 2016 forecast statistics
•
•
•
•
•
-70,000 sqm
-2,500 companies from 60 countries and regions •
-40 international pavilions
-40,000 trade visitors
Demand for wine in Asia is on the rise, with the region
generation $28 billion of sales in 2013
Asia accounted for 48.6% of revenue from spirits sales
worldwide, while consuming 61.5% of the total world
volume
Southeast Asia sees 7 million new prospective drinkers
join the market yearly, with a 13% increase in spending
Asian wine consumption is expected to grow by 22.84%
from 2013 to 2017
Indonesia – Overview
• Population of 250 million – the 4th
largest in the world
• Average GDP per capita growth of
5.6% per year since 2000
• In 2003, the middle class was
estimated at 37.6 percent of the total
population. By 2010, the middle class
had expanded to 56.5 percent.
(Middle class is defined a those
spending between 2 and 20 USD per
day)
• 4.87 million tourists visited Indonesia
in 2006 and this nearly doubled to
8.8 million in 2013
Indonesia – Meat and Seafood
•
Meat and meat products saw a 16% CAGR over 2007-2012, in line with improving
economic conditions and the growing middle-income consumer segment.
•
In August, cattle import permits increased in response to shortage in domestic
supply.
•
Fish and fish products saw a similar growth (over 14% in the same period), moving
with the business environment and household preferences. B2B and households are
currently the main buyers of seafood.
•
Seafood imports amounted to 116,000 tonnes in 2008, valued at $105.7 million.
•
There is a high preference for frozen fish, accounting for 67% of the import market.
This is followed by smoked, dried, or salted fish at 15%.
•
Average growth rate of imports equates to around 35% per annum, which is
underpinned by strong economic growth and increasing urban area consumer
incomes.
Indonesia – Alcohol
•
Though 90% of Indonesia’s population are Muslim and hence do not drink alcohol,
the huge tourism industry, expatriates and young professionals are a growing
demographic in Jakarta and other major cities which is why demand for alcohol wine
is developing
•
The increased demand of alcohol is a result of cheaper airline tickets (so Indonesians
are travelling the world more), also the internet, the influx of expats, and the
proximity to Singapore which itself has a booming market for beer, wine and spirits
•
Beer consumption forecast to increase between 5-7% annually over the next 2-3
years
•
Restaurants aimed at tourists in Indonesia generally make 40% of their sales from
alcohol, so it is a competitive market where new and innovative products are in
constant demand
Indonesia – Fruit and Vegetables
•
The value of the fresh fruit and vegetables market doubled over the course of 2004 2014 to an estimated $10 billion USD industry
•
The Indonesian government doubled the import quota for fruits and vegetables in
2014 to try and meet a surge in domestic demand - the government allowed up to
600,000 tonnes of 17 horticultural products including apples, mangoes, citrus and
potatoes to be imported in the first half of the year, up from 260,000 tonnes in the
same period of 2013
•
As with other ASEAN countries the continued increases in tourism have led to an
increased taste for fresh fruit and vegetables from abroad for locals
•
Fruit juices and smoothies are big import prospects as 90% of locals do not drink
alcohol, there is much more emphasis locally on flavoured fruit drinks
•
Economic growth has enhanced media outlets so that there is now a much greater
awareness of the health implications of eating healthily - so fresh fruit and
vegetables, as well as organic produce are all seeing increased demands
Indonesia – Dairy
•
Consumption of cheese is expected to increase sharply in the coming years. Western
foods have grown and are growing in popularity and more consumers are expected
to consider cheese as a nutritious product with high calcium content. Parents are
likely to use cheese in homemade dishes for their children more frequently.
•
Drinking milk products have benefitted from growing health awareness, particularly
among mid- to high-income consumers.
•
Indonesia has the highest rate of growth in milk consumption in the ASEAN at 4.8%
per year over the period 2006-2010.
•
The country is also notable for its market in coffee whiteners, condensed/evaporated
milk and cream. All three have blossomed with the expanding coffee culture, but
cream is particularly benefiting from the growing popularity of Western-style
desserts (e.g., cakes and puddings.)
Indonesia – Tourism
•
2013 saw a 14.2% increase in international
tourist arrivals – continuing the growth as
shown opposite
•
In 2014 the World Travel & Tourism Council
(WTTC) stated Indonesia's tourist sector
recorded the highest growth of all G20
economies in 2013 seeing a 15% increased
spend from international tourists and 8%
increase from domestic
•
Indonesia typically adds 15,000 hotel rooms a
year but in 2014 will cross the 50,000 mark
according to the Indonesian Hotel and
Restaurant Association - a result of increased
domestic demand
•
The growing middle class of Indonesia and the
expansion of domestic networks of national
airlines have created an increased demand for
budget, economy and mid range hotels
2000 – 2012 Indonesia International Arrivals
Indonesia - Benefits
• Clear expanding demand for wine throughout the country forecast over the next
5 years and South Africa already holds an established name in terms of quality
• Potential 300% increase in consumer class by 2030
• International and domestic tourism industries that continue to grow creating
new hotels, restaurants, cafes and supermarkets across the country
• Demands expanding for organic fruit and vegetables, dairy products and coffee
that reinforce the proof of Indonesia’s expanding middle class
•
Increasing number of students travelling to Western countries for education
and returning home with tastes from around the world
Facts and Figures
Food, Hotel & Indonesia 2017, Jakarta, 5th – 8th April 2017
Venue: Jakarta International Expo Kemayoran
Show facts
- biennial show
- run on alternate year to FHA
FHI 2015 statistics
-
Indonesia market information
• Wine imports expected to continue
expansion by 20% per year until at least
2017
• Average GDP per capita growth of 5.6% per
year since 2000
13th edition
28,000 sqm
• 2013 saw a 14.2% increase in international
47 exhibiting countries and regions
tourist arrivals – showing continued growth
13 international pavilions
over the past decade
30,995 trade visitors
• Potential 300% increase in consumer class
by 2030
Facts and Figures
Food, Hotel & Tourism Bali 2016, Bali, 1st – 3rd March 2018
Venue: Bali Nusa Dua Convention Centre, Nusa Dua, Bali, Indonesia
Show facts
• biennial show
• launched in 1996
• runs on alternate year to
Food and Hotel Indonesia
FHTB 2016 statistics
•
•
•
•
Bali market information
• 67 new hotels and restaurants currently in
development
• Bali is key to Indonesia’s huge investment in
developing tourism to fuel economic
growth
• Close to 4 million tourist arrivals per year
10th edition
10,290 sqm
777 companies from 36 countries • 25% of Bali’s tourism comes from Europe –
with the bulk of the remaining 75% coming
11,160 trade visitors
from Australia, Japan and China
Myanmar - Overview
•
Formerly Burma, with a population of 53 million
•
Political and economic reforms in recent years have
led to the easing of international sanctions, which has
opened the door to the world for trade. As regulatory
restrictions are removed, Myanmar continues to
prosper with an ever improving business environment.
•
Rapid economic growth has seen a 300% increase
since 2006 and is set to continue at a rate predicted at
7% per year until 2030 when it will become a middle
income country
•
Expanding disposable incomes of the population
(average age of 27) who have increasingly Western
tastes
•
Huge interest from foreign investors and tourists
has resulted in an increased demand in
international standard hotel accommodation –
average increase of 20% per year for last 3 years on
new hotels being licenced in Myanmar
Myanmar – Hotels and Tourism
•
Tourism is encouraged as a driver behind Myanmar’s economic future – the Myanmar Tourism Master Plan is
forecast to bring international arrivals to 7 million by 2020 (816,000 in 2011) providing 1.5 million jobs which
should propel growth further forwards
•
Capital city Naypyidaw and former capital Yangon have seen ‘Hotel Zones’ created in order to cope with the huge
increased demand for hotel accommodation. The result is the rise in sheer number of hotels in Myanmar, which
tend to gain 30% of revenue from food and beverage sales
•
Already a noticeable hotel demand for: Norwegian salmon, Chilean salmon roe, New Zealand mussels,
Australian/New Zealand beef and lamb, cheeses from Australia, New Zealand, and Switzerland, olive oil and
juices from Turkey
•
Yangon remains the business centre,
and contains the largest consumer
market in Myanmar. It is also the hub
for international exporters to deliver
products before being distributed
throughout the country - 90% of
Myanmar’s imports and exports go
through Yangon.
Myanmar – Retail Market
•
Myanmar’s retail market value is estimated to be around 15 percent of the country’s
GDP or $7.5 billion
•
Retail market is made up of both traditional and modern markets, with a noted
expansion of supermarkets and hypermarkets attributed to a growing middle income
group
•
The recent influx in tourists and business people has seen a surge in the demand for
Western products which in turn has created a higher demand amongst Myanmar
nationals
•
Typically spend 70% of income on food
- investing into the market now will
result in a greater market share once
development has continued across
Myanmar
Myanmar – Benefits
•
Possibly the largest growth potential in ASEAN, along with a largely untapped and
expanding middle income group. A unique opportunity to start business at an infant
stage before the economy expands.
•
Huge scope for development – South Africa’s bilateral trade with Thailand was US$5
billion and US$1 billion with Vietnam in 2012, however trade with Myanmar was just
US$3.2million over the same period
•
Hotel demands rising by the day that will create further jobs in the food and hospitality
industry, as well as creating a higher demand for imported food and beverages through
hotels, restaurants and cafes
•
Clear growth in supermarket and hypermarkets that are developing because of the
increase in world food products they are stocking
•
Strategic location between China and India, the two largest populations and emerging
economies in world – unprecedented scope for growth by trading via these two alone
Facts and Figures
Food & Hotel Myanmar 2017, Yangon – 7 – 9 June 2017
Venue: Myanmar Event Park, Yangon, Myanmar
Show facts
Myanmar market information
- annual exhibition
- launched in 2014
- Incorporates the Myanmar Culinary Arts
Competition and Myanmar National Barista
Championship
-
Population of 53 million
-
Rapid economic growth has seen a 300% increase in
GDP since 2006 and forecast to average 7% per
year until 2030.
-
Political developments mean trade boundaries are falling,
and Myanmar locals are enjoying the new international
products entering the market
-
Tourism figures have grown at an average of 72% per year
since 2012 – from 1 million, to 5 million in 2015
Food and Hotel Myanmar 2016 statistics
- 3rd edition
- 6,500 sqm
- 250 companies from 28 countries
- 6 international pavilions
- 7,299 trade visitors
Vietnam – Overview
•
Population of 90 million
•
One of the highest GDP growth rates in recent
years - a sustained 6% average over the last 10
years
•
It is forecast food and drink consumption will
rise at a double-digit rate each year between
2014 and 2018.
•
Increasing wages have led to increased
disposable incomes – in a country that is
developing a taste for Western products
•
A growing awareness of food hygiene, quality
and safety along with nutritional benefits are
key facts taken into consideration when looking
at new products
•
Still relatively early stages of growth, so by
exporting whilst Vietnam is still in development
there is an opportunity to create long-standing
partnerships with the successful Vietnamese
business people of the future
•
The chance to create brand loyalty through
advertising campaigns and promotions
Vietnam – Meat and Poultry
Vietnam poultry consumption/production (tonnes)
•
Poultry demand (chicken and turkey) is forecast to grow
37% from 2014 to 2020. Forecasts are also that local
production will grow 27% whilst international exports
grow by 49% in this same time frame.
•
Beef demand has risen in line with expansion of middle
income group with taste for fast food burger chains, as
well as higher-end beef products
•
Slight slowing down in meat production, coupled with
increased demand has led to a bigger need for imported
meat
•
Distinct markets for imported beef in Vietnam - product
from the likes of U.S. and Australia competes at the higher
end, including hotels, western restaurants, and Asianthemed chain restaurants whereas India supplies the
largest share of Vietnam’s imported frozen beef.
Vietnam meat/poultry imports US$ ‘000
Vietnam – Dairy
•
Local production accounts for 20% of
consumption – raising cattle requires skill and
investment. 95 percent of dairy cows in the
country have been raised by small and unskilful
households. Farmers are not trained with
livestock techniques or disease preventive
measures
•
The demand for fresh milk will increased from 61
percent from 500 million litres in 2010 to 800
million litres in 2015.
•
Vietnamese government has introduced a series
of initiatives to raise the height of its citizens,
which analysts say has helped demand for
drinking milk.
•
Recent reductions in taxes have enabled the
progressive import of dairy products, and there
is a feeling in Vietnam that foreign products are
of higher quality
•
After milking cow numbers increased between
2005 and 2007, they began to decline in
numbers up to 2009
Vietnam – Benefits
•
A continued strong tourism industry will lead to the expansion of hotels, restaurants
and supermarkets and further increase and diversify their acquisition of food and
beverage products for visitors
•
Dining out has become more frequent, and more affordable for families in middle
income bracket of Vietnam – adding further to the number of fast food to mid-range
restaurants
•
60% of Vietnam’s population are under 25, so there is real potential to target this age
group with a view to long term brand loyalty
•
Growth in number of Western-style fast food restaurants, coffee shops and bakeries
will lead to a higher demand for basic ingredients
•
Urbanisation is taking place, as a high number of rural Vietnamese move into urban
areas to earn more money and take on a more Western way of life
Facts and Figures
Food & Hotel Vietnam 2017, Ho Chi Minh – 25th to 27th April 2017
Venue: Saigon Exhibition & Convention Center, Ho Chi Minh City
Vietnam market information
Show facts
- established in 2004
- biennial show (originally annual)
- runs alternate year to FHA
FHV 2015 statistics
- 8th edition
- 9,270 sqm
- 470 companies from 36 countries
- 14 international pavilions
- 10,951 trade visitors
• Population of 90 million
• 60% of population are under 25
• One of the highest GDP growth rates in
recent years - a sustained 6% average over
the last 10 years
• It is forecast food and drink consumption
will rise at a double-digit rate each year
between 2015 to2018.
Korea – Overview
•
Population of 50 million
•
The 14th largest economy in the world
•
80% of population live in urban/developed
areas
•
Rising incomes and urban living have created
a strong demand for a ‘Western lifestyle’
•
Increased urbanisation and a lack of natural
resources means Korea always has, and
always will rely on the import of capital
goods, raw materials and industrial supplies
•
More upper and upper-middle class
households than ever before, with per capita
disposable income growing 35% since 2003
•
Becoming more health conscious in recent
years so low fat, high vitamin products with
health benefits are in demand
Korea – Beer and spirits
•
Beer is widely drunk in Korea, and while local beers are popular for drinking with traditional
Korean food, with the rise in international restaurants and bars the potential for imported beer is
far greater
•
Men have traditionally been alcohol consumers, however this is rapidly changing and 33% more
women now drink regularly compared with 2003
•
On average Koreans drink 13.7 shots of liquor per week, compared to 6.3 per week in Russia, and
3.9 in Ukraine.
•
Sales of craft beer and imported premium beer grew 33% in 2015
•
72% of Koreans said that drinking was a necessary element of their social lives in South Korea
•
Koreans are already spirit drinkers, accustomed to local ‘soju’
•
Koreans are fixated on imported still wines, rather than their own domestic products.
Korea – Agricultural Imports
•
A lack of arable land, low agricultural productivity and an increasingly urban
population means that Korea has seen continued increases in imports of agri-food
•
70% of Korean fruit is imported
•
Beef, pork, and fruits and nuts account for half of Korea's consumer agri-food
imports - these commodities have experienced significant sales and volume growth
in recent years, with high double-digit growth over the past 5 years
•
Beef imports in Korea were the largest in history in 2015 – a clear strong market
•
Over the last 2 years per capita chicken consumption in Korea has grown by 1.1kg – a
result of fried chicken shops, chicken menus and family restaurants offering ‘chicken
and beer’ menus
Korea – Dairy
• Reflecting their strong economy, Korean dairy imports are expected to rise
by 15% over the next decade
• Cheese used in an increasingly Western diet including mozzarella for use at
pizza, pasta and fast food outlets will continue to contribute towards dairy
growth
• Korean dairy product imports grew from US$448.7 million in 2010, to
US$703.3 million in 2013
• New product launches by major dairy companies and aggressive marketing
activities are expected to diversify the range of dairy products consumed.
• Fortified products are expected to increase in popularity and there is a
growing focus on functional additives in dairy products.
South Korea – Benefits
•
The growing urban population and reduction in production potential means demand for
imported products will only increase
•
Drinkers are enjoying wine and its Western association, and tend to be drinking wines from
around the world more than Korea’s traditional spirit based drinking culture
•
A thriving economy that has seen growth over the last 20 years, and where strong growth is
forecast for years to come
•
Western products have already made an impact so South Koreans are looking for the next taste,
or innovation
•
GDP per capita has risen by an average of 4% per year for the last 9 years
Facts and Figures
Seoul Food & Hotel 2017 – 16th to 19th May 2017
Venue: Korean International Exhibition Centre (KINTEX)
Show facts
- annual exhibition
- launched in 2006
- joint venture with KOTRA – Korea’s government
trade promotion agency
SFH 2016 statistics
- 10th edition
- 74,171 sqm
- 1,520 companies from 46 countries
- 35 international pavilions
- 53,406 trade visitors
Korea market information
- 13th largest economy in the world
- 23 Free Trade Agreements in place including:
EU, USA, Canada, Pacific Alliance, Turkey
- Developed economy and Western lifestyle means
European product is highly sought after
- 80% of population live in urban/developed areas
meaning a huge reliance on imports for
agricultural product
Japan – Market Information
•
Population 128 million
•
Third largest nominal GDP in the world,
and the third largest economy behind USA
and China.
•
Only 12% of Japan’s land is suitable for
farming
•
In the past Japan has tried to aid farmers
with higher import duties to be paid –
however now the self-sufficiency ratio is
gradually falling, and import duties have
been reduced in some places so that
there is enough supply
Japan – Opportunities
•
Wine consumption in Japan has increased by approximately 12 per cent from 2011 to 2012, with
32 million cases sold - wine consumption per head increased from 2.28 litres in 2011 to 2.69
litres in 2012
•
Chile has recorded a dramatic increase in exports by volume and is currently the third largest
exporter to Japan in still wines.
•
The consumption of processed dairy products, such as cheese and yoghurt, is rising steadily.
•
Ageing farmers are retiring across Japan, and with the urbanisation of the nation‘s youths there
is far less dairy production and an increased need for dairy imports
•
For fresh fruit, due to decreasing competitiveness in the domestic farm sector, global climate
change, natural disasters, and the opening up of the import market, Japan has steadily increased
import volumes in order to secure sufficient supply to meet the country’s demand – export
potentials are: mango, lemon, navel and Valencia oranges, grapefruit, apricot, fig, cherries,
apples
•
Of total calories consumed in Japan, imports account for 60% - largely due to bigger quantities
of pork, beef, and poultry meat
Laos - Overview
• Population of 6.5 million
• Significant industrial and economic
growth over the last 10 years –
average GDP growth of 8% per annum
since 2003
• Huge expanse in tourism industry that
has seen internationals arrivals rising
by 18% a year since 2007 – and
helping bring demands for Western
products
• Only landlocked ASEAN country,
which means it relies on transport
through other countries for imports
by sea (namely Vietnam and Thailand)
Laos – Opportunities
•
Laos consumed the most alcohol per capita in the ASEAN region in 2013, with an
average of 7 litres of alcohol consumed per person. There is a clear market for beers
and other spirits to the Lao people, and of wines to hotels, and restaurants looking
after the tourism industry (Australia is the current lead exporter of wines to Laos)
•
As Laos is landlocked, fresh seafood is scarce. Many tourists staying in high end hotels
and frequenting high end restaurants request fresh seafood on the menu but
currently, the supply of seafood is not to the standards of five star establishments
•
There is currently a lack of supply in quality, fresh fruit and with Laos’ growing GDP and
expanding tourism this area is certain to need imports to meet forecast demand
•
As a poor nation who consume on average 70% of their daily food from grains/cereals
there is huge growth potential because of the steadily growing GDP. As tourism
expands the demand for Western products will develop especially with fruit, beef,
poultry, dairy and coffee.
Cambodia - Opening
• Population of 15 million
• Continued GDP increase of 6%
per annum on average since 2005
• In line with neighbours,
experiencing positive growth
across tourism industry which is
driving the economy forward –
2013 saw Cambodia’s
international arrivals move
forwards by 17.3%
• Cambodia saw exports of rice
move up 163% year-on-year in
2013 and agricultural
developments will also play a key
part in further developments
Cambodia –Opportunities
•
Pork is in high demand in Cambodia, with over 9kg a year consumed per capita. A
recent influx of cheaper Thai pork has brought prices down, and it is expected to
drive pork farmers out of business leaving a big gap in the market for competition in
pork production
•
In line with the rest of South East Asia, Cambodia expects to see continuation of
2.4% per year growth in dairy demand up to at least 2020. A result of increase in
population, government funded milk programs for schools, and income growth
•
The coffee market in Cambodia is developing as the middle class continues to grow
and develop a taste for coffee.
•
Currently high levels of border trade with Thailand in fruit, vegetables, processed
food and kitchen equipment which shows the clear demand – Western nations
should be able to offer more variety in all these products
Philippines – Market Information
•
Population 97 million
•
From 2014’s forecast GDP growth of 6.5-7.5%,
the government is targeting an even higher 78% expansion for 2015. In 2013, GDP growth
beat the 6-7% goal by coming in at 7.2%.
•
In 2013, Philippines bought US$65.1 billion
worth of imported products. That total is up by
41.9% since 2009.
•
2013 local dairy demand continued to outpace domestic supply, resulting in a continued growth in
dairy imports, the Philippines are unable to locally produce even 1% of their dairy demand –
annual consumption per capita is 22kg whereas production is less than 0.2kg.
•
Alcoholic beverage sales increased by 158.8% between 2009 and 2013 to total US$311.9million.
Philippines – Opportunities
•
The nation has traditionally been one of beer drinkers, however there has been a noticeable
increase in wine consumption in recent years. As the Philippines’ strong economy boosts the
spending capacity of middle to high income earners who make up around 15 per cent of the
population.
•
There is no grape wine produced in the Philippines, so wine consumption is import based – US
takes 33% market share, 20% Spain, 16% Australia with South Africa, France and Chile providing
the remainder
•
The packaged food market in the
Philippines reached US$11.4 billion in
2012 - a total growth rate of 24.5% or
nearly US$2 billion from 2008.
•
High growth categories in the forecast
include pasta, meal replacement, and
ready meals, dried processed food,
sweet and savoury snacks and
canned/preserved food, noodles and
soup
ASEAN – Overview
•
Association of South East Asian Nations - created to promote economic growth and social
progress
•
Original 5 in 1967 – Indonesia, Malaysia, the Philippines, Singapore and Thailand.
•
Later followed by Brunei, Cambodia, Laos, Myanmar and Vietnam
•
Population of 625 million
ASEAN – Vision
•
Free trade in goods
- eliminate all tariffs
- remove non-tariff barriers (subsidies, restrictions etc)
- create simplified and standardised trade procedures
•
Free trade in services
- facilitate cross-border interactions
- eliminate intra-regional trade restrictions
•
Free flow of skilled labour
- speed up issuance of work permits
- manage mobility limited to only people engaged in trade in goods,
services and investments
•
Free flow of investment
- open up all industries for ASEAN investors
- harmonise and streamline investment policies
- increase support amongst governments
•
Freer flow of capital
- strengthen domestic capital markets
- create progressive capital account liberalisation
- standardise capital market rules and regulations
- connect ASEAN’s individual capital markets on a common platform
ASEAN – Key Strengths
•
ASEAN has created a formal platform and strategic approach to facilitate ASEAN activities and relations with South Africa . The ASEAN
Pretoria Committee (APC), which consists of the seven ASEAN mission based in Pretoria; Indonesia, Malaysia, the Philippines, Singapore,
Thailand, Myanmar and Vietnam.
•
Goals of APC are to strengthen the image and position of ASEAN member countries in South Africa and organise practical activities to
introduce ASEAN’s potential investment, trade and tourism to South African partners – simply, to broaden cooperation between ASEAN
countries and South Africa
•
Strategically located in dynamic region of Asia.
•
Typically young, growing populations with expanding middle
class and demand for Western products and way of life.
•
Progressive open trade regimes, and strong amounts of
Foreign Direct Investment.
•
Abundance of natural resources that can be manufactured into
products once correct machinery and training is completed.
•
Aggregate ASEAN growth of 6% GDP per year over last 15
years – continuing with 5.67% aggregate growth for 2014, as
detailed:
ASEAN – Changing Tastes
• South and East Asia show largest
projected meat and dairy expansion
in comparison with the rest of the
World over next 35 years .
• Large amount of this forecast is based
on predicted rapid development of
the lesser developed ASEAN nations
(Myanmar, Vietnam, Laos, Cambodia)
• Meat, poultry and dairy set to play
larger role in day to day eating habits
because of increased spending power.
Projected meat and dairy consumption: 2005 - 2050
ASEAN – Changing Tastes
•
Continued increases of GDP per capita has
led to larger consumer/middle income
class and hence tastes associated.
•
Young population have travelled the world
and return home bringing their taste for
Western foods.
•
Typical preference is for sweetened coffee
to reduce bitter flavour – though tastes are
continuously developing.
•
In addition, many ASEAN economic growth
plans based on increase tourism which
bring Westerners with further food and
drink demands.
Coffee consumption in East and South East Asia and %
share in world consumption
Asia - Trading Information
• Most nations across Asia prefer face-to-face meetings in the initial stages, with
additional follow-up visits, phone calls, emails, and faxes. Initial face-to-face
meetings without follow-up visits rarely result in sales.
• Sending offers and quotations without first establishing a business relationship is
highly unlikely to result in sales.
• Trading with many of the less established nations (Vietnam, Myanmar, Laos,
Cambodia) will require a local agent or distributor – in-depth research should be
carried out before appointing.
• Business cards and handshakes are the norm across Asia
• Asians want to do business with people they trust, but there is no real trust unless a
person is in their circle. At first, they don’t know if you will be a good partner, focus
on building the relationship before talking business.
• Do not go for big profit on your first contract.
2016 – 2018 Food, Drinks, Hospitality,
Foodservice & Bakery shows
FHC China 2016, Shanghai – 7th to 9th November 2016
The Leading International Food & Hospitality Show in China. The 20th
International Exhibition for the Food, Drinks, Hospitality, Foodservice, Bakery
& Retail industries
ProWine China 2016, Shanghai – 7th to 9th November 2016
The International Trade Fair for Wines and Spirits
Food & Hotel Penang 2016, Penang - 15th to 17th November 2016
The 2nd International Exhibition of Food, Drinks, Hotel, Restaurant &
Foodservice Equipment, Supplies, Services & Related Technology.
FHM 2017 - 26th – 29th September 2017
The 14th Malaysian international exhibition of Food, Drinks, Hotel
Restaurant and Foodservice Equipment, Supplies, Services &
Related Technology
FHC China 2017, Shanghai – 7th to 9th November 2017
The Leading International Food & Hospitality Show in China. The 20th
International Exhibition for the Food, Drinks, Hospitality, Foodservice,
Bakery & Retail industries
ProWine China 2017, Shanghai – 7th to 9th November 2017
The International Trade Fair for Wines and Spirits
Food & Hotel Indonesia 2017, Jakarta – 5th to 8th April 2017
The 14th International Hotel, Catering Equipment, Food and Drink Exhibition
Food & Hotel Vietnam 2017, Ho Chi Minh – 25th to 27th April 2017
The 8th International Food & Drinks, Hotel, Restaurant, Bakery & Foodservice
Equipment, Supplies & Services Exhibition & Conference
HOFEX 2017, Hong Kong - 8th to 11th May 2017
The 17th International Exhibition of Food & Drink, Hotel, Restaurant &
Catering Equipment, Supplies and Services.
ProWine Asia 2017, Shanghai – 8th to 11th May 2017
The International Trade Fair for Wines and Spirits
Seoul Food & Hotel 2017 – 16th to 19th May 2017
The International Exhibition for the Food, Beverage, Hotel, Restaurant,
Foodservice, Bakery & Supermarket Industries
Food & Hotel Myanmar 2017 – 7th -9th June 2017
The 4th International Exhibition for Food & Drink, Hotel, Restaurant, Bakery &
Food Service Equipment, Supplies & Services
Food Hotel & Tourism Bali 2018 – 1st to 3rd March 2018
The 10th International Exhibition for Equipment, Food, Beverage and
Services to Support Indonesia's Tourism and Hospitality Industries
FHA 2018, Singapore – 24th to 27th April 2018
Now in its 20th edition, since its debut in 1978, FHA (Food&HotelAsia) has
always been the premier sourcing platform for thousands of food and
hospitality trade buyers in Asia.
ProWine Asia 2018 , Singapore – 24th to 27th April 2018
The 14th International Exhibition of Wine & Spirits including WSA Wine
Challenge