Capitalizing on Opportunities in ‘the Century of Asia’

With the rise in global population, the food industry is working diligently to develop new ways to ensure sufficient supplies of food. Population growth in Asia, in particular, is expected to lead other regions, and food product and ingredient manufacturers will continue efforts to expand into Asian markets, especially in emerging areas like Vietnam and Thailand, and to tailor their offerings to the changing demographics and needs of Asian consumers.

Tobias Ohler, a member of the executive board for Wacker Chemie AG, who spoke at a March 19 press event at the company’s facility in Burghausen, Germany, called the 21st century “the century of Asia,” explaining that with more than 3.7 billion inhabitants and a gross domestic product of around $20 trillion, Asia is set to continue as the main driver of the world economy. His company, which manufactures functional ingredients for use in a variety of applications, is demonstrating how a company can capitalize on this growth—especially within the middle class population—by developing business partnerships, repositioning existing ingredients in the company’s portfolio, and developing new ones to meet specific consumer demands in various regions of Asia.

Many Asian nations are experiencing a middle-class population boom, and with it come new demands on the food industry. Consumers in this growing class of relative affluence are seeking a range of food products like packaged goods, reduced-fat foods, foods that provide added benefits, and more. Asia is a large and diverse continent, and therefore some preferences and demands are specific to the different countries within it. China is one of the largest markets for chewing gum, more than a third of India’s population is vegetarian, demand by Indians for processed food is expected to double in the next few years, and the large Muslim population in Southeast Asia requires foods that are certified halal, according to Jochen Dauth, Vice President of Wacker Biosolutions’ food business unit.

Wacker focuses on beverage, chewing gum, culinary, dairy, and savory flavor market segments, and its portfolio of ingredients provides solutions to product developers formulating foods and beverages that meet the needs of consumers throughout Asia, says Dauth. For example, coconut milk is used in a large assortment of foods in Asia, and many manufacturers and consumers opt for coconut milk powder instead because of its convenience.

Chewing gum is quite popular  with Chinese consumers. Production of chewing gum is a time-consuming process that involves many steps and utilizes a number of ingredients, and Dauth explains how Wacker’s Capiva^® S resin helps manufacturers produce the product in a more efficient manner. The ingredient, which was launched in China in early 2014, allows for the full replacement of elastomers and rosins without negatively affecting the quality of the gumbase.It also ensures a better release of flavor and produces a chewing gum that is less sticky and easier to remove from surfaces, he adds.

Finally, health issues, such as those related to overweight and obesity, are a growing concern in many Asian countries, and this gives product developers an opportunity to reformulate products or develop new ones that help meet the needs of consumers looking to lose weight. For this, Wacker promotes its range of cyclodextrin ingredients, which Dauth explains have a number of functionalities in many different product categories. Some of these include being used as a fiber in beverages, dairy products, and cereal and stabilizing oil-in-water emulsions to replace animal-derived emulsifiers such as egg yolk in dressings or mayonnaise.“Cyclodextrins are important for a healthy diet and can even help to control blood sugar increase after meals,” he adds.

During the presentation at the press event, Dauth emphasized that Wacker will continue its expansion into the various Asian markets to help its food business interests grow. Additionally, the company is developing new ingredient solutions that can address some of the emerging trends in Asian markets and is working with food distribution partners in these regions.

Karen Nachay,
Senior Associate Editor
[email protected]