The region’s food spending will reach more than $8 trillion over the next ten years, up from $4 trillion in 2019. It will also become the largest food and beverage market in the world, according to the “Asia Food Challenge Report 2021”. Tuesday’s statement was made by the group.
Changes in consumer behavior, which are becoming more digital-savvy and health-conscious, will be a major driver of this demand. However, it will also be influenced by the rapid growth of its population. Asia will be home to approximately 4.5 billion people by 2030 and 65per cent of world’s middle classes.
People want better food and safer food. They also want to be able to shop online.
“Folks want better food, safer food, and they want to shop online. They want food that is sustainable,” Anuj Maheshwari, Temasek’s managing Director of Agribusiness, said.
The fastest growing markets for spending are India and Southeast Asia, which have a compound annual rate growth of 5.3 per cent and 4.7 per cent respectively. China will still be the largest overall market.
The findings of the report are based on a survey that included 3,600 consumers in 12 countries across the Asia-Pacific region, and interviews with senior executives from the food sector from the region as well.
This rapid increase puts immense pressure on an already fragile food system, which has been under tremendous pressure since the outbreak coronavirus pandemic.
The report estimates that $1.55 trillion will be required to invest across the value chain by 2030 to meet the region’s growing food demand. This represents an increase of $750billion over the $800 billion upstream investment or preliminary estimated by the group in its inaugural 2019 report.
This area offers significant opportunities for investors, Maheshwari said, calling it “big, huge in Asia”.
The report highlighted six “critical trends”, including healthy diets and fresh produce, traceable and safe sources, sustainable consumption, alternative protein and online buying.
Maheshwari stated that these trends are what agribusinesses should focus on to ensure consumers have access to this type of food, in addition to the volumes we need in Asia.
According to AgFunder, investments in agriculture technology have increased substantially since 2014. They have risen 377per cent to $30.5 million.
(Adapted from TechLive.in)