According to latest report entitled Indonesia Dairy Food Industry by Ken Research, the Indonesian dairy industry is projected to experience robust growth with a CAGR of 5.4% from 2022 to 2027, and is expected to reach US$12.7 billion by 2027.

Ken Research attributed the growth to rising health awareness, a growing population with higher disposable incomes, and a sweet tooth for innovation. The following are the 4 major factors for growth:

* Health Takes Center Stage: Consumers are increasingly prioritizing their well-being, driving demand for fortified milk, yogurt with live cultures, and even dairy alternatives catering to specific dietary needs.

* Expanding Wallets: Rising disposable income allows consumers to explore diverse dairy options, indulge in premium choices, and embrace new flavor trends.

* Urbanization Cravings: Busy lifestyles in urban areas crave * convenient and readily available dairy products, fueling the rise of single-serve options, ready-to-drink milk, and innovative snacking solutions.

* Lactose Intolerance Not a Barrier: Growing awareness of lactose intolerance and veganism is leading to a surge in plant- based and lactose-free options, widening the consumer base.

The report emphasised that the Indonesian dairy market is not just growing but is also evolving. Exciting future trends to watch include rapid growth of functional dairy products i.e. milk infused with probiotics, vitamins, and minerals, or yogurts with added protein. These products cater to the rising number of health-conscious consumers seeking added benefits in their dairy choices.

In the future, there will also be increasing demand for personalisation and customisation not only in Indonesia but globally. Products can be tailor made to individual nutritional needs or taste preferences, all thanks to the rapid development of AI and other technologies.

Finally, demand for ‘sustainable’ products will grow as environmentally- conscious consumers drive the demand for eco-friendly packaging and sourcing in dairy products. Dairy manufacturers will respond with initiatives like using recycled materials or support sustainable farming practices. With higher disposable incomes in Indonesia, demand for these products which will be sold at a premium will eventually grow as well especially in the major urban cities like Jakarta, Medan and Surabaya.

This year, Döhler is showcasing an extensive portfolio of natural colour solutions which includes the vibrant eye-catching shade of ‘Peach Fuzz’, the Pantone® Colour of the Year.

For over a quarter-century, Pantone’s Colour of the Year has influenced a wide array of industries including food and beverages, architecture, cosmetics and fashion. Each year’s impactful colour is chosen through an analysis of socio-economic and political trends, cultural shifts and evolving consumer preferences. Peach Fuzz 13-1023, with its velvety peach tone represents kindness, joy and well-being, and reflects an attitude towards life that is longing for calmness and a balanced way of living.

Research by Döhler Insights also indicated a growing association of orange and yellow foods with vitamin intake and health, a trend aligning with the rising interest in self-care and well-being. Peach Fuzz, therefore, is not just a colour; it represents a lifestyle choice that prioritises health and joy.

Korean based RE:Harvest is considering of exporting its upcycling technology as it is one of the pioneers globally to scale-up food upcycling at a commercial level, according to Alex Min, Founder and CEO of RE:Harvest.

There is a growing interest towards sustainable food products and ‘upcycling’ is one of the options available for food makers to support the planet.

According to Min, “Should the interest for upcycling increase in this region, we are ready to export our equipment and earn additional revenue from maintenance and operation along with the loyalty.”

RE:Harvest currently has 3 business models:

(1)  B2B – We collect mass amount of by-products at a scale and produce alternative flour or fiber/protein supplements at our factory. Produced products are then sold to food makers such as CJ. These powder products are called “RE:nergy Flour” and have single source by-products or sometimes we mix couple by-products to create more custom-tailored products for customers. For example, RE:nergy Ginseng Flour, RE:nergy Ginseng and Beer By-Products.

(2)  B2C – By using RE:nergy flour, and make convenient meal replacement products such as granola bars, cereals and snacks to consumers.

(3)  Bakery Cafe – cafe and vegan bakery using RE:nergy flour as a means to create greater consumer awareness and a test bed for upcycled food products.

With the recent growth of food-tech and the introduction of novelty products from plant-based chicken to cultivated beef to insect foods, as well as the growing use of functional ingredients like vitamins, probiotics and proteins in food products, there is thus a growing need for flavor masking in these food products to appeal to consumer tastes and preferences. Often these products are sold at a premium due to the high cost of producing them, as such to commercialise them will be a challenge if there were no effort made to mask the off-note or unpleasant taste of these products.

A recent report by The Insights Partners has valued the global Flavor Masking industry at US$134.32 million in 2022 with a CAGR of 5.9% from 2022 to 2030. By the year 2030, this industry is projected to reach US$212 million.

Flavor Masking in this report comprised of ingredients or additives used to mask undesirable flavors in various food and beverage products from bakery to snacks, dairy desserts, meat and dairy alternatives, seafood products and RTE meals amongst others. The meat substitute category is projected to record the fastest CAGR growth within the flavor masking industry as it is mostly produced using soy, pea and beans, and producers often seek to mask the unpleasant ‘beany’ taste. Manufacturers also often use additives to mask off-notes of sugar substitutes like stevia or to remove metallic taste in certain food and beverage products.

Insights Partners highlighted various techniques in flavor masking from microencapsulation, nanotechnology, polymer coating, organoleptic methods, hot melt extrusion and spray drying. Manufacturers are increasingly using nanotechnology to make flavor masking ingredients as the technology aids in enhancing solubility and stability of flavors as well as providing controlled release properties. There is also increasing demand for organic or natural additives as more consumers prefer clean-label food products.

The report also categorized flavor masking ingredients by type and these include Sweet, Salt, Fat, Bitter, and Others. The Bitter segment has the highest market share in 2022 accounting for 42.7% followed by Sweet and Salt (see Chart 1.0)

Gone were the days when food products were judged entirely by its taste, as consumers have become more health conscious and spent more time reading product labels to see if they were aligned with their health goals.

Having said that, it has become even more challenging for food manufacturers to create new products as they need to ensure these products have all the elements that consumers are looking for from the taste, health, price and packaging perspectives.

In recent years, there is however one new consumer perspective which is growing in popularity – the ability of certain food and beverage products to provide relief to stress or to enhance mood or mental well-being. More concerning is the data from World Health Organisation that more than half of all suicides that occur globally among the young to middle aged adults come from the Asian region. As such, apart from the important role of psychologists and social institutions in addressing these mental health issues, one can also find a partial solution via food and beverages. A Euromonitor survey conducted in early 2023 showed that 18% of Asian consumers claimed to follow a special diet to treat stress and anxiety issues.

To tackle depression and mood swing, food and beverage manufacturers look at the age- old idea that food brings ‘happy moments’ with the right taste and ingredients. In the current decade, manufacturers have the ability to add certain functional ingredients that can trigger positivity or relieve stress.

This idea about food relieving stress is entirely new and a niche category, however according to Euromonitor International, the growth in this segment in terms of NPDs is double-digit ranging from 27% to 29% CAGR over the period 2019 to 2022.

The following Chart 1.0 identified the food and beverage products in Asia Pacific with various mental/stress claims from the period 2019 to 2022. Apparently, products with stress relief claim ranks 1st in terms of number of SKUs followed by enhanced mental performance and sleep aid.

Meanwhile, with rising health awareness, food and beverage manufacturers need also to be mindful of the ingredients they use in these products. In the past, sugar was often considered to trigger positive mood however manufacturers now need to review their formulations to consider less-sweet flavor profiles but leveraging on functional ingredients to cater to these health needs. One good example is Guylian, a Belgian chocolate manufacturer, which announced in July 2023 that it was cutting some SKUs in Asia and to focus on dark chocolate variants, as dark cacao is known to promote feel-good emotions.

In the beverage space, tea has often been perceived as a beverage which aids relaxation and sleep, due to its ingredients such as camomile, ashwaganda and ginger. Euromonitor tracking data showed claims of relaxation and aiding sleep were the 2nd and 3rd most popular claims for tea brands after antioxidant claims.

Tip-Top Chicken, known for premium quality poultry that is safe, sustainable, and tasty, has recently launched Easy and Tasty Chicken Tocino. This new addition to Tip-Top’s roster of products is set to elevate all-day dining for Filipinos with 100% chicken meat, no added preservatives, and no artificial coloring.

Capturing Filipino taste buds since 2021 with its flavorful offerings, Tip-Top offers quality choice cuts of drumstick, wings, breast, thigh, and whole chicken products. ‘Easy and Tasty’ is the marinated product line of the choice cuts meant to make preparing meals easier and more convenient for those on-the-go or are new to the kitchen.

Tip-Top is a consumer brand by C-Joy Poultry Meats Production, Inc., a joint venture between Cargill Philippines and Jollibee Foods Corp. Building on Cargill Philippines’ 75-year legacy of excellence, Tip-Top offers consumers yet another alternative to traditional tocino, free from artificial colors and salitre. With its signature sweet-savory flavor and tender texture, the Easy and Tasty Chicken Tocino promises to redefine the breakfast staple and spark culinary creativity among consumers.

Mija Darlene Cu-Cachapero, President and CEO of C-Joy said, “At C-Joy, we are committed to continuously innovating to meet the changing demands of our customers. Tip-Top’s Chicken Tocino delivers both convenience and flavor in every pack, carefully crafted with uncompromising quality.”

Made with 100% chicken meat, Tip-Top products are produced and packed on the same day, ensuring freshness and quality with every purchase. Whether for breakfast, lunch, or dinner, Tip-Top allows consumers to create delicious meals in just 15 minutes, reflecting C-Joy’s dedication to providing families with easy-to-prepare, safe, and quality products without compromising on nutrition or taste.

Tip-Top Easy and Tasty Chicken Tocino is now available at all South Supermarket and Robinsons Supermarket chains.

Cocoa Straits 1778 has unveiled Malaysia’s inaugural collection of bonbon and truffle chocolates embellished with 24K gold foil, serving as the brand’s signature creations and showcasing its dedication to the artistry and global excellence of chocolate craftsmanship.

Cocoa Straits 1778 founder Jeffrey Kee said these chocolates were crafted with a luxurious and eye-catching design to fully showcase the collection’s elegance and uniqueness. He said, “It is not only a tasty treat but also a precious work of art, designed to provide an unparalleled sensory and visual experience.”

The chocolates were launched during a ceremony at Genting Highlands where Cocoa Straits 1778 products are exclusively available in selected stores. Among those present was Malaysian Cocoa Board director, Datuk Dr. Ramle Kasin.

The name Cocoa Straits 1778 originates from Malaysia’s extraordinary historical relationship with cocoa dated as far back as 1778. Malaysia’s cocoa cultivation has spanned over 2 centuries.

Cocoa Straits 1778 plans to open franchise outlets in Kuala Lumpur and further diversify its product line by introducing innovative chocolate flavours and unique packaging designs. Consumers locally and worldwide will get to indulge in its chocolates while at the same explore the richness of Malaysia’s cocoa culture.

The company aims to be a leader in the global market for single- origin pure chocolates and a premier luxury chocolate brand by offering customers high-quality, ethically sourced, and expertly crafted chocolates.

Australia-based Source Wellness® is the manufacturer of natural refreshing drinks made from a unique blend of sustainably sourced, exotic botanical ingredients that are not only tasty but also offer various health benefits.

As part of its ambitious goal to penetrate the larger Asian market, the company has recently launched a new range of products in attractive 330ml can packaging, a huge migration from its initial traditional shot-sized 60ml glass bottle which can be easily misunderstood as medicine.

The drinks available in 5 variants are now offered at an affordable retail price of S$4.95 (US$3.70), or available for bulk purchase at S$64 (US$47.80) for 16 in a box. They are available as Ice Tea with Manuka Honey and Collagen variants; or as Soda in DigestEz, Chillax and MagBoost variants, each name to signify its benefits from ‘digestion support’, to ‘general relaxation’ and ‘magnesium boost’ respectively.

According to Arman Soltani, CEO of Source Wellness®, “Our delicious functional drinks come with vibrant iced teas, bubbly sodas, and low-calorie goodness, all packed with superfoods and natural ingredients.”