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Asia Pacific: Report finds Indonesia, India are eating more processed meat

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Global innovation within the processed meat, poultry and fish categories has increased over the years and many markets with the highest growth potential are from the Asia-Pacific region.

New research from Mintel reveals that Asia is home to the world’s fastest growing retail markets for processed meat, poultry and fish, with Indonesia and India playing key roles across these categories.

Indonesia is currently among the fastest growing processed meat and poultry markets globally with a compound annual growth rate (CAGR) of 26.7% between 2011 and 2015, followed by India (22%), Vietnam (15.5%), China (13.9%), and Brazil (10.9%).

Mintel estimates Indonesia’s processed meat and poultry market reached a value of IDR 16 trillion (US$1203.75 million) in 2016, while India is estimated to have reached a value of INR 11 billion (US$0.17 billion).

Vietnam, China and Brazil have estimated retail values of VND 10 trillion (US$440.20 million), CNY 275 billion (US$39.93 billion), and BRL 12 billion (US$3.81 billion), respectively.

Meanwhile, India is one of the fastest growing retail markets for processed fish and seafood globally, growing at a CAGR of 24.9% between 2011 and 2015.

Indonesia has seen a CAGR of 19.5%, with Turkey (11.8%), South Africa (11.2%) and Russia (10.8%) rounding out the top five growth markets.

In 2016, Mintel estimates India’s processed fish and seafood market reached a value of INR 2,422 million, while Indonesia is estimated to have hit IDR 32 trillion, Turkey TRY 372 million (US$103.23 million), South Africa ZAR 3 billion (US$0.23 billion) and Russia RUB 148 billion (US$2.65 billion).

In the five years between 2011 and 2015, Thailand also experienced a positive CAGR of 9.4% for the processed fish and seafood market and a CAGR of 7.5% for the processed meat and poultry market.

In terms of retail market value for 2016, Thailand’s processed fish and seafood market is estimated to have reached THB 65 billion (US$1.89 billion) and its processed meat and poultry market, THB 60 billion.

Driven by a surge in innovation activity, the global processed meat, poultry and fish markets saw an 18% increase in product launches in 2016, compared to 2014, according to Mintel Global New Products Database (GNPD).

In 2016, Asia Pacific was the second most active region globally in terms of processed meat, poultry and fish new product development (NPD), accounting for 24% of processed meat, poultry and fish product innovations, led by China, Thailand, South Korea, Vietnam and the Philippines.

“The need for convenience is the key driver behind Asia’s growing processed meat, poultry and fish retail markets in Indonesia, Thailand and India,” says Patty Johnson, global food and drink analyst.

“Demand for processed and ready-to-eat foods, particularly frozen foods, is growing across Asia as increasingly time-pressed consumers have embraced the convenience of the freezer and of microwave cooking.”

“Aligned with consumer interest in the region, processed meat, poultry and fish product innovation in 2016 saw strong focus on convenience claims, such as ease of use and microwaveable.”

City dwellers shop closer to home

According to a Mintel consumer study, 43% of metro Indonesians and 39% of metro Thais aged 18 and over tend to shop closer to home or work due to a lack of time.

Furthermore, 28% of consumers in Indonesia prefer to buy smaller, bite sized or convenient packs as they can eat these anytime, anywhere, rising to 37% of Indonesians that fall within the monthly household income bracket of IDR 15,000,000 and above.

In Thailand, 22% of consumers prefer to buy smaller, bite sized or convenient packs for the same reason.

Snacking region

Snacking has become a lifestyle for many consumers, resulting in a shift in consumer attitudes across Asia, and understandably so.

Consumer research from Mintel reveals 80% of metro Thais and 69% of metro Indonesians snack at least once a day.

The development of snacking within Asia is being driven by consumers who are increasingly turning to snacks for satiety purposes.

Some 39% of metro Indonesians look for snacks that keep them fuller for longer when making purchase, while 34% of metro Thais do the same.

Meanwhile, 42% of Thai consumers and 39% of Indonesian consumers say they eat snacks instead of having a meal at times.

“On top of snacks that provide satiety benefits, demand for healthier snacks is rising as consumers overall have become more conscious about their food choices,” says Johnson.

“There is rising demand among Asian consumers for a wider variety of high protein snacks, creating opportunities for new product development in the meat, poultry, fish and meat substitute categories.”

This increasing demand for high protein snacks among Asian consumers is reflected in Mintel research which reveals 40% of metro consumers in Indonesia look for snacks that are high in protein when making purchase, while 32% of metro consumers in Thailand look for the same high protein snacks.

“In 2016, the casualization of meal times and growing awareness of protein continued to drive global development of snack-targeted products across the processed meat, fish and meat substitutes categories,” says Johnson.

“In today’s fast-paced world, it is important that processed meat, poultry and fish products provide convenience to alleviate the pressures of modern-day life.”