The Economist Intelligence Unit's (EIU's) "industry dynamism" barometer, commissioned by InvestKL,
Greater Kuala Lumpur's investment promotion agency, has named food processing as one of six sectors with a bright future in Asia.
Speaking at the launch of six reports
under the barometer umbrella, Zainal Amanshah, CEO of InvestKL, said
that the findings "reinforce the importance of Asian cities as drivers
of the region's growth."
According to the EIU, Asia will be a
source of new home-grown food ideas such as for the halal-certified food
market. The company noted that rapid urbanisation is changing food consumption patterns, and creating opportunities for more efficient distribution, including upstream into rural supply chains.
Asia's
food companies are thriving as they leverage these opportunities.
Between 2005 and 2011, the 400 or so food companies listed on the
region's stock exchanges grew top-line revenues by an average of 23%
every year, EIU said.
However,
companies will need to invest in innovation in order to tailor their
products to the diverse local taste preferences across the region –
global brands will have to localise their products.
"We already account for more than half
of the world's population. By 2040, we will add another 800 million
people to our count – all of whom are rapidly getting richer," said the
CEO of InvestKL. "Asia's spending on food is forecast to double between
2007 and 2050 in real terms – representing three quarters of the global
increase over the same period."
The six papers,
covering engineering services, environmental technology, food
processing, healthcare, oil & gas, and wholesale & retail
sectors, can be found here.