Convenience, safety and value essential

OVERALL, processed foods are projected to show positive growth in Asia. In its most recent packaged food reports, Euromonitor International this acceleration is due to economic recovery and growing consumer confidence in South East Asia, Australia and New Zealand.

In the major SEA markets, manufacturers will seek to focus on added-value new product development and launch products that offer convenience and health attributes Indonesia, Malaysia, Singapore and Thailand. In Viet Nam, convenience and indulgence food products will robustly grow and enhance the whole industry's performance. Only the Philippines is anticipated to see slightly slower growth consumption despite better economic conditions, owing to consumption in most sectors being expected to stabilise due to higher household penetration in both urban and rural areas of the country. The growing preference for low-priced brands among Filipino consumers is also foreseen to have an impact on the slowdown of value sales between 2011 and 2015.

In Australia, the focus on health and wellness is likely to intensify owing to a state campaign on healthy weight reduction. Consequently, Euromonitor reported, consumers are expected to become increasingly focused on health during the forecast period, with packaged food players meanwhile seeking to drive value growth by offering healthier products. Similarly, the availability of healthier options in New Zealand is essential among the portfolios of packaged food manufacturers to remain competitive, in accordance with consumers' changing preferences.

Whilst the past year was a period of recovery and recouping markets, innovation played and will play a big role, many processing equipment manufacturers agree.

Strategies to Match the Environment

Companies serving the processing needs of the Asian food industry have developed strategies to better serve their customers, which in some cases faced economic challenges and diminishing markets. Most suppliers agree that lessons learned in 2009 were applied and streamlined in 2010.

This was true for Ishida, according to Yasushi Yamaguchi general manager of the Overseas Operations Department for the weighing, packaging, labelling and inspection company. "Fortunately 2010 has been a good recovery year to us. Whilst 2009 was a difficult year, it gave us a good opportunity of self-reflection. For instance, we reviewed our organisation and swapped regional sales managers each other so that fresh eyes can reassess the business can be for any improvement. The modification seems successful to accelerate the recovery in line with the recovery of the market itself this year," Mr Yamaguchi explained.

Basic strategies have not been much altered by economic challenges for Rademaker, the bakery equipment and food processing specialists. "Rademaker's strategy has not changed. Our strategy proved to be successful before, during and after (if you can already say that) the recession our industry faced," said Ms Marion van Doorn, who handles Sales Support for the company.

For Heat and Control, the Export Department based in Brisbane have had to remain ever vigilant for new opportunities in the wake of the hangover from the 2009 global financial crisis, said Ben Evans.

"As Heat and Control recognises the importance of innovation, we are pleased to see that our users are able to enjoy the benefits of their investment. In my opinion, the driving force behind their growth in this sector is because these economies are growing and becoming more export-oriented, equipment and food manufacturing practices and machines need to be upgraded to meet the stringent requirements," explained Mr Evans, Sales & Business Development executive for Southeast Asia.

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