Page 25 - FoodFocusThailand No.154 January 2019

SPECIAL FOCUS

cities, the shift to packaged oil has mostly Dairy and bakery industries in Asia Pacific countries is booming. In China, the export-
remained confined to low-cost variants, which oriented dairy market is expected to witness competition from the improving domestic
may not provide the desired health benefits one dairy production. Being the largest consumer and producer of dairy, India continues its
expects of olive and other premium oils. hegemony in the dairy sector among Asia Pacific countries. The bakery goods industry
Further, the edible oil industry in India is booming in the organic segment wherein bakery chains and home baking trends are
recently witnessed a transition from complementing the growing cooking oil consumption in the region.
hydrogenated vegetable oil to solvent-extracted Apart from household and industrial applications, APAC’s flourishing HoReCa industry
refined oil. Also, demand for healthy cooking also accounts for a significant consumption of cooking oil. With ‘eating out’ trend significantly
oils rich in monounsaturated and penetrating in the region, a significant population is turning to branded restaurant chains.
polyunsaturated fatty acids has witnessed a All in all, sentiments of APAC consumers remain the prime influencer of the cooking
surge in the last five years.
oil market in the region. Increasing consumer propensity for premium food and beverage
Flourishing F&B Sector in ASEAN products is likely to translate into gainful opportunities for refined, low fat and high-quality
and Cooking Oil Landscape premium cooking oil vendors in the APAC region.
The food and beverage industry in ASEAN
countries are helmed by South Asia’s fastest-
growing economies – the Philippines, Vietnam,
Malaysia, Thailand, and Indonesia. Growing
emphasis on agricultural crop processing,
emergence of F&B entrepreneurs and improving
food safety regulatory landscape are
contributing to the strengthening of the F&B
industry in ASEAN countries. With Indonesia
and Malaysia being the leading producers of
palm oil, ASEAN countries hold a considerable
revenue in the global cooking oil market.
Confectionery, Bakery, and Dairy
– Significant End-Users of Cooking
Oils in APAC
Going beyond their traditional application in
households, cooking oil has now become an
integral ingredient in the food and beverage
industry. Demand for cooking oil in the F&B
sector remains concentrated in chocolate &
confectionery, dairy & ice cream, and bakery
industries.
Chocolate and confectionery market is
thriving in APAC with the purchase rate growing
from expanding middle class. Growing
awareness on health and fitness among APAC’s
millennials, particularly Indian and Chinese
population, is expected to hit the chocolate and
confectionery consumption. However,
introduction of premium products with quality
ingredients and health logos in chocolate and
confectioneries is transforming the consumption
trend among APAC consumers, thereby
impacting the cooking oil consumption.

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