38
NOV2017
FOOD FOCUSTHAILAND
SPECIAL
FOCUS
TheAPACHealthandWellness Industry:
In2016, fortified/functionalproducts ledvaluesales in the region,
followed by naturally healthy products. Euromonitor International
defines fortified/functional productsas those that havebeenactively
enhanced or fortified during production with additional amounts of
health ingredients (e.g. calcium, omega-3) that would not normally
be found in that product. Naturally healthy refers to food and
beverages that naturally contain a substance that improves health
andwellbeingbeyond theproduct’spurecalorificvaluewithoutbeing
additionally fortified.An example is high fibrewholemeal bread.
Thecontinueddominanceof fortified/functional productsand the
growing importance of the naturally healthy segment signal a trend
towards “naturally functional” foodanddrinks, i.e., products that are
unprocessedorminimally processed.
Coconut water is one of the more dynamic botanical product
categorieswithin the naturally functional space. KeyAPACmarkets
such as Thailand and Indonesia have witnessed relatively robust
valuesalesgrowthdespiteaccess to freshcoconutwater andSouth
Korea’smarket forpackagedcoconutwater isset togrowsignificantly
by aCAGR of about 50% from 2016 to 2021. Alongside its healthy
hydrating properties, the use of coconut water as
a flavour or ingredient will help not only sustain
future growth, but allow brands to create
greater product differentiation.
The use of other botanicals and
superfoods has also taken root in the
regionthroughnewproductdevelopment
in this direction over the last couple of
years. One notable example is F&N
Magnolia kids’ milk drink, launched in
Thailand,whichcontains thesuperfruit,goji
berry.
WhereareWeNow
andWhat’sNext?
Accounting for about 32% of global retail value sales in 2016, the Asia-Pacific (APAC) region is the largest
healthandwellnessmarket worldwide, thereby offering exciting opportunities for food and beverage players.
