The coffee industry will further leverage RTD to grow in China and other Asian regions
The idea that coffee is an emerging market may be foreign to most urban and Western market consumers, but it is exactly the case in many Asian markets.
According to industry giant Nestlé, whose Nescafé brand is leading the coffee category, many markets in the region have yet to gain an appreciation for coffee beyond metropolitan centres, leaving considerable room for growth. It is said that there is.
“When you think of emerging coffee markets, I think the first thing that comes to mind is China.”Philippe Navratil, Head of Nestlé’s Coffee Strategic Business Unit, said: FoodNavigator-Asia.
“China is so big, This is probably one of the biggest opportunities in terms of population and current local coffee drinking habits.
“If you look at Shanghai, the average consumption is around 200-220 cups per person per year, but outside of Shanghai it is less than 10 cups. This means that the average is very low for China as a whole. and therefore there is a huge amount of consumption.”There is an opportunity for growth there. ”
While many other Asian markets, such as Japan and Vietnam, already have their own coffee-drinking cultures, Navratil believes there is still a lot more that can be done here.
“Interestingly, even though there is already significant coffee drinking in countries such as Indonesia, Thailand, the Philippines, Vietnam and Japan, there is still room for growth.”he added.
“We see this growth happening in terms of delivering coffee at more and more different moments of the day and meeting more diverse needs of consumers. It’s very much considered regional.”
When it comes to specific growth strategies, RTDs are emerging as one of the most likely formats to drive growth, especially in markets where convenience is key.
“When it comes to instant coffee, we realized that this is really an Asian business for us. We’ve done well in China, Thailand, Indonesia, Vietnam, etc. In fact, we’ve never really done that.” Other regions have been able to establish RTD coffee in such a big way. ”he said.
“One of the reasons why coffee really took off here is due to the rise of convenience stores, and many coffee consumers buy on the go, so they go to these convenience stores and choose this convenient RTD format. To do.
“So we see very good growth going forward and we’re actually investing in that. We’ve just built a new factory in Java, Indonesia, which will have to produce and source locally. We’re in a good location to produce some good RTD products, because otherwise it would be difficult to produce.”It just wasn’t a good business, so we were building this in Asia right now. ”
Japanese whiskey on the rise worldwide
The whiskey industry is primarily dominated by brands of Western origin, such as Jack Daniel’s in the US, Johnnie Walker in Scotland, and Jameson in Ireland, but Asian markets like Japan require concerted efforts from both industry and government. Therefore, it is possible that we will see major changes in this area in the future. Year.
The Japanese whiskey category has only recently established government-defined differentiation standards in 2021, and while awareness of the category has increased significantly around the world in just over two years, the industry still has room to grow. I believe there is. Especially the “FUJI” whiskey brand owned by Japanese liquor giant Kirin.
“The FUJI brand and the Gotemba Distillery, which uses the world-famous water of Mt. Fuji to create whiskey using Japanese craftsmanship, are still not well known.”Yusuke Suzuki, Kirin’s “FUJI” brand ambassador, spoke.
“Japanese whiskey has been around for a long time, celebrating its 100th anniversary in 2023, but 1704166067 We will focus on making these products internationally famous.
“Our company already exports to various international markets including China, Singapore, the US, France and Australia, and we are looking to not only expand these existing markets, but also expand into more US and EU markets, as well as expand into Japan’s There is much more room for growth for whisky.”
Kirin’s exports of Japanese whiskey have increased significantly over the past few years, with sales volumes in overseas markets increasing by around 20 times, and this development represents further good news for the Japanese whiskey industry in the future. The company believes that there are.
“Kirin will focus on the whiskey category as a supporting business for Kirin over the next 10 years, with the ambition to make Fuji an international ambassador for the Japanese whiskey category.”he added.
“Whiskey has been selected as a priority export item by the Japanese government.”
This level of commitment comes on top of Kirin’s partnership with Pernod Ricard announced in 2023, which aims to start distributing Fuji Whiskey in 13 European markets, and expands the Japanese whiskey category into 2024. This is a strong indicator of growth.
Indian organic food gains traction due to local demand and government support
The whole organic food sector may not be an entirely new category in India, with some brands dating back decades, but recently, amid the growing demand for healthier food in India, this The industry is seeing something of a resurgence and is benefiting from a strong association with organic foods. Cleaner and healthier.
“One of the really big trends in the Indian food industry right now is the shift from just focusing on taste to also considering health.”Garvit Patodia, managing director of organic grain specialist Yellowfield Organic, said:
“For the past 30 years or so, Indian consumers have been eating food to satisfy their taste buds, but now they are more interested in filling their bodies, and we have moved from focusing on the tongue to focusing on the stomach and the body itself. is shifting attention to.
“This means a move towards healthier and more mindful diets, with consumers demanding not only higher fat and protein content, but also higher vitamin content when it comes to staple foods such as grains. So we can say that the trend is towards “from macro to micro nutrients, and importantly, these should be clean and free of harmful chemicals. ”
Food Safety and Standards Authority of India (FSSAI), India’s food safety authority, introduced the local Jaivik Bharat organic certification logo in 2017 in the hope of helping consumers identify ‘authentic’ organic food. However, there is still strong distrust in the market to this day. Food contamination rates are high in this country.
The FSSAI also issued an order directing all local food testing agencies in the country to equip themselves with organic testing capabilities and undergo proficiency testing this year. This is an attempt to increase India’s organic exports and will definitely benefit the organic food industry as a whole.
“[The success of] Organic products in India rely on reliable testing to ensure product authenticity. ”Dr. Satyen Kumar Panda, FSSAI Quality Assurance Advisor said:
FSSAI’s list of accredited local food testing laboratories totals well over 200 and the addition of organic certification capabilities to all these facilities bodes well for both the reputation and growth of the domestic organic food industry in 2024. It becomes.