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Shrey verma ppt on food market growth of asean countries
- 1. Case study on Asean Countries Food Market Growth "The ASEAN food industry, a melting pot of diverse culinary traditions, is a dynamic tapestry of flavors, reflecting the region's rich cultural heritage and driving economic growth through its vibrant and evolving marketplace." The selection of the top two region is based on a strategic decision on several factors.Both Thailand and Indonesia boast vibrant and growing economies within the ASEAN region, offering significant market potential. Thailand's strategic location, well-developed infrastructure, and a robust tourism sector make it an attractive market. Meanwhile, Indonesia, as the largest economy in ASEAN, provides a vast consumer base and diverse market opportunities. These countries also have emerging middle- class populations with increasing disposable incomes, making them ideal targets for a Japanese client aiming to tap into the ASEAN market. The unique cultural ties, historical connections, and diplomatic relations between Japan and these nations further enhance the feasibility and success of the expansion plan.
- 2. Objective- Provide an overview of the Top two countries in Asean region that provides attractive investment opportunities to expand food distribution business - Thailand and Indonesia There are a total of 11 countries in Asean region and all the countries have varied economic trends, spending habits, lifestyle and culture. The selection of the top two countries for expansion should be done keeping in mind market size, economic growth, regulatory environment , and consumer preference. ASEAN region has population of 640 million. Total Gross Domestic Product (GDP) is 2.6 billion United States Dollar (USD), around half of Japan, and average GDP per capita is 4,000 USD. The annual ASEAN average GDP growth rate is around 5%. In 2015, ASEAN Community was established. The region has shown great potential for economic growth and investment opportunities. Potential of Asean food market for expansion Change in Business Environment Population Boost Increased Longevity & Aging Society Economic Development Increase in Middle-Class Population Population growth to reach to 791.982 million in 2050( a 19% rise from 2020). After 2020, age group under 30 years old will start declining, while the group above 70 years old is expected to expand significantly. Yearly economic growth of 2.2 to 5.2% is expected to be observed between 2018 and 2035 The middle-income population was 135 million in 2010 (24% of the total), and by 2030, the number is predicted to rise to 334 million (51% of total) Characteristics of Food industry High material cost with low value-added Small quantity, yet many variety National or local brands High locality resulting in employment
- 3. Market potential A large and youthful population, coupled with rapid urbanization, indicates a growing demand for diverse food products. Proactive measures by the government to enhance the business environment and attract foreign investment. Robust economic growth and rising middle class offer favorable conditions for market entry. Key Drivers Microeconomic outlook Changes in Demands(Increased Demand and Change in Consumer Preferences) Changes in the demand for food and beverages quality are also expected. For instance, the middle- income population, expected to increase in ASEAN, is generally more health-conscious than the low- income population. For this reason, the demand for healthier and safer foods is predicted to rise in ASEAN. In addition, the demand for processed and ready-to-eat foods is expected to rise due to urbanization, and the demand for food for elderly people is expected to increase due to the trend in the aging of the population. Functional food, such as dieting and beauty promoting food, is also expected to attract the interests of the high-income population. Factors kept in mind while investing in Thailand and indonesia
- 4. Some facts about Indonesia Consumer-Oriented Product Imports: $9.2 billion U.S. Share (9%) – $868 million Top 10 Growth Products:Dairy product, baked goods, baby food, confectioneries, frozen food,snacks,sauce, dressings & condiments,sweet biscuits,ice cream & frozen dessert. Food Industry by Channels (U.S. billion) states that the food import for the year was $7 billion. Food Industry (GDP): $83.1 billion (2022) Top 10 Retailers Alfamart, Indomaret, Alfa Midi, Hypermart, Superindo, Transmart/Carrefour, Circle K, Lotte Mart, Farmer’s Market, Hero GDP/Population 2022 Population (millions): 276 GDP: $1,185 billion Competitors Indonesia is the fourth most populous nation in the world, with a population of approximately 276 million in 2022. Fifty-six percent of the population is on Java Island, one of the most densely populated areas in the world. 32.85 Billion mkt share 47.79 Billion mkt share 2.87%CAGR 7.78% CAGR 2024(USD) 2029(USD) Top Consumer – Oriented Product Suppliers to Indonesia, 2022 (million USD) Market share
- 5. Some facts about Thailand Driven by a growing younger generation and increasing wealth, the consumption of premium foods/beverages, internet retailing, and eating out have risen.The recent surge of tourism has helped propagate growth and provides an additional sales source for exporters.Understanding the fluidity and diversity of the Thai economy is a necessary precursor to success in exporting commodities to Thailand. Imports of Consumer-Oriented Products: $7.0 billion. List of Top 10 Growth Products in Host Country 1) Dairy products 2) Spices 3) Seafood products 4) Food preparation 5) Fresh fruits and vegetables 6) Bakery products 7) Tree nuts 8) Wine and beer 9) Chilled/frozen beef 10) Healthy beverages Food Industry by Channels (U.S. billion) 2021 states that the food import stands at $20.6 Billion. Top Thailand Retailers Supermarkets Hypermarkets 1) Central Food Retail 1) Lotus’s 2) Gourmet Market 2) Big C 3) Villa Market 4) Foodland Cash and Carry 5) UFM Fuji Super 1) Makro GDP/Population Population (millions): 69.95 GDP (billions USD): $506 (as of 02/2022) GDP per capita (USD): $7,256 (as of 02/2022) 55.25 Billion mkt share 7.06% CAGR 103.76 Billion mkt share 13.43% CAGR 2024(USD) 2029(USD) Market share In the food market, competitors profoundly influence expansion plans in a country by shaping market dynamics and consumer preferences. Thorough market analysis helps identify key competitors and their strategies, enabling a company to strategically position itself. Understanding local tastes and adapting offerings accordingly is crucial for customer attraction. Pricing decisions are influenced by competitors, necessitating a balance between competitiveness and profitability.