The East Asian Food Ingredients Market
1. The East Asian Food Ingredients Market
1.1 Towards a Mature Industry
Food producers and manufacturers in East Asia are in a very privileged position today. World leaders in food processing technologies and applications are knocking on their doors, offering a comprehensive range of services.
In recent years suppliers of food ingredients and additives, in order to become business partners of food manufacturers in East Asia and develop customer loyalty, have strengthened their commitment to the region and invested heavily in new marketing ideas and technical support programmes. Some companies have taken the lead in setting up manufacturing plants in countries of the region, giving them a competitive advantage. Some have spent time and highly skilled resources on building new technical centres and pilot facilities with a special emphasis on Asian-based applications. Others have strengthened their marketing networks across the region. There is now a wide choice of suppliers with competing levels of expertise, and a steady flow of new and not so new technologies.
These developments clearly indicate the vast opportunities available in East Asia. They are evidence of the confidence and commitment of the international ingredient market towards the future of the food industry in the region. In their efforts to expand export markets within East Asia, food manufacturers in the region can look forward to greater co-operation and participation from their ingredient suppliers in the years to come.
1.2 Emerging Markets
East Asia is the fastest growing region in the world in population terms, and its main urban centres are generally experiencing faster rates of economic growth than the countries in which they are located. With such a climate of sustained economic development across much of East Asia, the prospect of servicing the millions of new customers in the region is very attractive to food suppliers.
While markets such as Japan, Singapore and Hong Kong have relatively mature economies, many of their lesser-developed neighbours are recording double-digit growth and are rapidly developing. Large global food ingredients suppliers appear to be showing strong interest in these emerging markets, particularly China which is expected to have a population in excess of 1.5 billion by 2025 (see Table 0.1). Indonesia, with a population of 197 million is also attracting interest as its food sector develops, as is Malaysia, the Philippines, Vietnam and South Korea.
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