Untapped dairy opportunity? NZMP eyes protein and nutritional benefits in Southeast Asia  

16 Oct 2018 --- NZMP, Fonterra’s global B2B ingredients brand, is seeing increasing interest in dairy ingredients in South and Southeast Asia owing to their applicability in formats as wide-ranging as medical nutrition, protein fortification and sports nutrition. As consumer knowledge grows, so do the opportunities for new product development, Fonterra’s General Manager of NZMP Ingredients for South & East Asia, Hamish Gowans, tells NutritionInsight.

NZMP covers 19 markets in South and East Asia, and each of these is seeing its evolution in terms of what consumers demand.

“Some markets, such as Thailand, Indonesia and Vietnam, are taking cues from other global markets such as Japan, the US and Europe. We are seeing a growing trend towards protein, driven by growing consumer awareness of health & nutrition as well as more exposure to sports and activity, such as triathlons. Both multinationals and local companies are starting to take a view on how to position their products to take advantage of this trend,” Gowans says.

Spotlight on Indonesia
At Fi Asia in Jakarta, Indonesia, the company presented a range of ingredients, such as a new Fortified Instant Dairy Powder.

“The pace of growth in Indonesia, in particular, is huge, both economically and in the population’s awareness of health and nutrition. Talking to Indonesian consumers, it’s all about holistic health and providing a boost to get on with day to day tasks as well as setting themselves up for good health as they age,” Gowans notes.

According to research conducted by Fonterra, there is high awareness among Indonesian consumers of the value of protein in maintaining overall health and wellness.

“Fast absorption and rapidly digested proteins appeal to Indonesian consumers. It’s all about practical solutions for health which lead to a preference towards high protein products in convenient formats,” Gowans says.

Mindful consumption
As part of the global trend towards mindful consumption, Southeast Asian consumers are becoming more informed about nutritional factors.

“People want to understand where their food has come from and how far can they trace that back to the origins, even back to the farmers. These trends fit nicely with a lot of the work we are doing with our R&D and with the origins of New Zealand dairy. The services and team we have working in South and Southeast Asia are also able to support the development of products with customers.”

“Knowledge of dairy can in some areas still be quite light. Dairy is often associated with calcium, but not necessarily all of the other benefits dairy offers; not just the protein but also the broader vitamin, mineral, fat content that provides nutrition,” Gowans notes. “We have completed consumer research in Indonesia; some of the preliminary [findings show that versus three years ago] there seems to be a lift in knowledge on dairy and dairy proteins, versus other sources, which is good to see. Certainly, in the vegetable space, non-dairy protein sources are well recognized in this part of the world. This does create some challenges but also opportunities for us, as education grows.”

Affordability 
Beyond nutritional qualities, the region’s consumers continue to take affordability and value for money into account.

“In markets such as Bangladesh, accessing basic, good nutrition can be a challenge. For us the question is, how do we reach populations in need with good nutrition. Some of the development work we are doing in these areas is not in the higher-end protein fortified foods, but more in the affordable nutrition [which will allow us] to access a deeper abundance of consumers,” Gowans tells NutritionInsight.

“The cost of food and beverages remains a high priority and takes up a significant share of household expenditure in many emerging markets. Affordability remains important, however, we see an evolving trend in emerging markets from affordability to value for money. According to the 2017 Global Food Security Index, while around 20 percent of consumers in these markets consider low price as important, around 40 percent rate ‘value for money’ as important,” says Gowans.

Another area concerns that of medical nutrition and healthy aging, with countries such as Singapore, looking into ways to keep the population healthy and mobile for longer. 

“Protein and dairy play a key role in muscle maintenance,” Gowans says. “Medical nutrition, protein fortification, sports nutrition and affordable nutrition are all areas we can play into for the good of the region.” 

“Natural and fresh are also key. While some of the markets are not self-sustaining and do import fluid UHT milk, there is a trend towards looking for something fluid that tastes fresher than something that has been heat-treated.”

As for dosage forms, there is a strong push towards convenience, with some areas showing growth in the bars category, and an evolution in bar formats, which were not traditionally strong in this part of the world.

Key to succeeding in this region is to incorporate local flavors and textures, in product formats that bear in mind local retail market customs. 

“A market such as Bangladesh might be looking for products in sachets or cans, while in other areas where the wealth of the population might be growing, we are seeing a lot of trends in beverages, both in packaging formats and in types of products,” Gowans says. “From a dairy perspective, we are seeing interest in clear waters through to UHT formats, or incorporating dairy with fruit juices and even soy products.”

By Lucy Gunn