Southeast Asian product reformulation priorities shift to increasing fiber, reducing salt and sugar, report shares

17 May 2019 --- Malaysia faces a double burden of malnutrition, with rising rates of obesity, non-communicable diseases (NCDs) and key indicators of undernutrition. Yet according to new research by Food Industry Asia (FIA) and research firm IGD, the importance of a healthy lifestyle is well-incorporated in the minds of most Malaysians. This includes increasing the intake of key nutrients and reducing consumption of harmful ingredients, which has, in turn spurred reformulation efforts as companies work to deliver enhanced solutions. Fiber has come to the fore as a crucial nutrient to increase in products, while reducing sugar and salt is also paramount, the report shares.

Malaysia has the highest obesity prevalence in Southeast Asia, with an obesity rate of 18 percent among the adult population, notes the report. On the other end of the spectrum, undernutrition also remains a growing concern. “Childhood obesity rates have more than doubled to 14 percent among those aged five to 14 years within a four-year period (2011-2015). As a result, the prevalence of non-communicable disease (NCD) is on the rise and estimated to account for 73 percent of total deaths in Malaysia,” Steven Bartholomeusz, Policy Director, FIA, tells NutritionInsight.

A root cause of the issue, explains Bartholomeusz, is increased access to food and beverage products that are high in fat, salt and sugar content and low in nutritional value, coupled with physical inactivity and sedentary lifestyles.

Southeast Asian populations typically consume starch-heavy daily diets and while they have sufficient calories to feel full, their bodies do not receive enough micronutrients to be truly healthy, he adds.

However, over the past few years, food and beverage companies in Malaysia have taken great strides in their reformulation journey as they actively seek out ways to improve the nutrition of their products for the benefit of consumers. “Nutrition is one of the key drivers of product choice among Malaysian consumers and our study revealed that 88 percent of companies have already embarked on reformulating their products to meet this demand, while 12 percent are planning to get started,” says Matthew Kovac, Executive Director, FIA.

Reportedly the first of its kind in Malaysia, the report, Healthier Product Reformulation in Malaysia, surveyed both consumers and food and beverage businesses. Reportedly the first of its kind in Malaysia, the report, Healthier Product Reformulation in Malaysia, surveyed both consumers and food and beverage businesses. It aims to better understand behavioral trends and perceptions of solutions geared towards delivering improved nutrition such as reformulation and product labeling. 

A key takeaway from the extensive report is that while consumers are increasingly receptive to healthier food products and are not satisfied by the limited healthy options on the market, companies may struggle with the economic squeeze reformulations can bring. The way that companies are reformulating foods has also shifted.

Shifting reformulation priorities towards health-centric consumer preferences
Previously, a focus on allergens, artificial colors, flavors and preservatives, followed by calories and sodium levels were the main priorities for companies, explains Bartholomeusz. Now, however, efforts are skewed towards sugar and salt reduction, as well as increasing dietary fiber. The report revealed that reformulation can directly support consumers’ desire to adopt a balanced and healthy diet.

“All surveyed companies who are currently reformulating or making plans to reformulate have included sugar, salt reduction and the addition of fiber on their list. The industry is also focused on fortifying products with vitamins and minerals to help address the shortfall in consumer diets,” he adds.

Product categories undergoing reformulation include the reduction of sugar – in non-alcoholic beverages, sweet snacks, confectionery and frozen desserts – and adding fiber, vitamins and minerals to cereals, dairy products, pasta and breads, among others.

Ready-to-eat meals are also coming under reformulation focus. An emerging trend among Malaysians is the growing demand for healthy convenient meals that are easy-to-prepare but still part of a balanced diet, notes Bartholomeusz. “Despite the time pressures of modern living, consumers are not willing to compromise on the quality and nutritional value of their meals, which has led to a new generation of minimally processed ready-to-eat foods that can still emulate the flavors of restaurant meals.” An emerging trend among Malaysians is the growing demand for healthy convenient meals that are easy-to-prepare but still part of a balanced diet.

Economic incentives for health-conscious SMEs
The report highlights that the opportunity to enhance healthier product development can be limited by companies facing financial issues. To tackle this economic issue, more could be done in conjunction with the government, for example.

“The cost of research and development needed for reformulation could limit smaller companies’ efforts due to lack of resources. However, there are several ways in which they can receive greater support. Eighty-eight percent of companies we spoke to said that fiscal incentives offered by the government would encourage greater initiative when it comes to reformulation programs,” says Bartholomeusz.

One of the enabling strategies identified in the National Plan of Action for Nutrition of Malaysia III 2016-2025 (NPANM III) indicates that businesses can receive a tax benefit if the R&D for healthier product development is carried out in Malaysia, for example. Such incentives will be crucial in helping small and medium enterprises (SME) speed up their efforts considering that cost and the lack of technical expertise are two key challenges they face.

Additionally, collaboration – whether between multinational corporations (MNC) and supply chain partners, or outside of the food sector, with government bodies and NGOs – provides opportunities for smaller firms to leverage other stakeholders’ expertise and resources to address challenges in their reformulation efforts.

Collaboration between government and the food and beverage industry arguably have a large role to play in boosting the public's’ health. 

For example, in a bid to get a handle on continually rising UK childhood obesity rates, Public Health England (PHE) sugar reduction and wider reformulation program engages with all sectors of the food and beverage industry to reduce the amount of sugar in popular children’s  food and drinks by 20 percent by 2020. The initial focus is on the top nine food categories that contribute the most to children’s sugar intakes. These are yogurts, biscuits, cakes, morning goods (such as croissants, buns and waffles), puddings, ice-cream, breakfast cereals, confectionery, sweet spreads and sauces. PHE also included reduction and reformulation ambitions for sweetened, fermented yogurt beverages earlier this year, which also came in at a 20 percent sugar reduction. The initiative also includes a salt reduction program across several food categories.

Strong commercial incentive for product reformulation
The report also found that there is a strong commercial incentive for F&B companies to reformulate products: 76 percent of surveyed companies identified meeting consumer demand as the primary motivator for reformulation, and the same percentage felt the need to respond to government/pressure groups.

Consumer acceptability was identified as the top reformulation challenge. While the challenges for different nutrients vary, taste and consumer acceptability emerged as the top concerns for businesses in sugar and salt reduction efforts. A lack of technical knowledge was also identified as critical challenges for businesses.

Product reformulation can play a large role in global health. In 2017, more deaths were caused by diets with too low amounts of foods such as whole grains, fruit, nuts and seeds, than by diets with high levels of sugar, trans fats and red and processed meats. This is according to the Global Burden of Disease (GBD) study tracking trends in consumption of 15 dietary factors from 1990 to 2017 in 195 countries, published in The Lancet. 

By Laxmi Haigh