Business

Food spending in Asia has doubled to more than $ 8 trillion by 2030

By 2030, Asian consumers will double their spending on food, leaving a big hole for investors to offer healthier and more sustainable options, according to a new joint report by PwC, Rabobank and Temasek. increase.

According to the group’s Asian Food Challenge Report 2021, food spending in the region will rise from $ 4 trillion in 2019 to over $ 8 trillion by the beginning of the next decade, making it the world’s largest food and beverage market. It is said that it will be.

Much of that demand will come not only from changing consumer habits in increasingly health-conscious digitally savvy areas, but also from a rapidly growing population. By 2030, Asia is expected to be home to 4.5 billion people and 65% of the world’s middle class.

People want healthier foods, safer foods, and want to buy online.

Anujima Heshwari

Temasek, Agribusiness, Managing Director

Anuji Maheshwari, managing director of Temasek’s agribusiness, told CNBC: “Scooke Box Asia”

India and Southeast Asia are set to account for the largest increase in spending, growing at compound annual growth rates of 5.3% and 4.7%, respectively. However, China will continue to be the largest market overall.

The report’s findings are based on a survey of 3,600 consumers in 12 Asia-Pacific countries, conversations with senior food sector executives, and an analysis of more than 3,000 listed food and beverage companies.

$ 1.5 trillion investment opportunity

The rapid rise is putting pressure on already fragile food ecosystems that have been under immense pressure since the outbreak of the coronavirus pandemic.

According to the report, the region’s growing food demand will require an investment of $ 1.55 trillion by 2030 across the value chain. This shows a $ 750 billion increase from the $ 800 billion upstream (or reserve) investment initially estimated in the Group’s first 2019 report.

Customers will purchase vegetables at a supermarket in Handan City, Hebei Province, China on September 9, 2021.

VCG | Visual China Group | Getty Images

Maheshwari says this offers important commercial opportunities for investors, calling it “a big big region in Asia.”

Specifically, the report highlights six “key trends”: healthy eating, fresh produce, safe and traceable sources, sustainable consumption, alternative proteins, and online purchases.

“These trends are needed to ensure that agribusiness focuses and consumers get this kind of food in addition to what they need in places like Asia. “Maheshwari said.

Investment in agricultural technology has increased significantly since 2014, up 377% to $ 30.5 billion, according to AgFunder.

Food spending in Asia has doubled to more than $ 8 trillion by 2030

Source link Food spending in Asia has doubled to more than $ 8 trillion by 2030

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