Product innovation will be an important factor in growing Irish dairy exports to southeast Asia, a Bord Bia seminar has heard.
The Irish food board carried out research in the region in late 2021 to identify trends and growth opportunities for Irish exporters over the next decade.
It examined Singapore; Vietnam; Thailand; Malaysia; Indonesia and Philippines where there is a combined population of over 588 million.
Southeast Asia has been identified as one of the priority markets for Irish dairy exports with a €3.2 million campaign focused on the region to be launched this year by Bord Bia.
Dairy consumption
Evelyn Chiang, insight and planning specialist with Bord Bia, told the seminar that population growth and increased consumer spending power will be among the drivers of dairy consumption in southeast Asia in the coming years.
Consumer spending on food in the region is expected to double by 2030.
Currently, consumption per capita varies from 19.1kg in Vietnam to 34.3kg in the more developed market of Singapore.
By comparison, Ireland has among the highest consumption of dairy in the world, estimated at 290kg per capita.
The research expects the region to continue relying on dairy imports instead of local production.
Buyers found the quality of Irish dairy to be “good” but raised concerns about supply inconsistency.
Chaing explained that younger consumers, in particular, place a greater importance on “the story of the product” and will be more willing to spend on sustainable or eco-friendly products.
The research found that almost 60% of dairy buyers believe that brands using storytelling to promote their products will be able to command a premium.
Following the Covid-19 pandemic, 72% of southeast Asians reported that they will be more health conscious in the future. The research pointed to a higher demand for special nutrition products targeted at older adults.
59% of the dairy buyers said that innovation in new products will be important in southeast Asia.
When it comes to promoting Irish grass fed dairy produce, the seminar heard there is work to be done.
The research showed that there is a common misconception that most cattle are already grass fed, making it difficult to make to market as a unique selling point.
“Out of the 75 dairy buyers we interviewed 17 said grass fed dairy will be important in the future,” Chaing noted.
However, buyers did consider that grass fed would assure them of quality and health claims.
Sustainability is still a relatively new proposition in the region but governments have frameworks in place to increase awareness.
Chaing advised that products with high protein content will be in demand in southeast Asia.
She also encourage exporters to continue to communicate the high quality standard of Irish dairy which will appeal to consumers with increased spending power.