Food spending in Asia to double to more than $8 trillion by 2030

Texas News Today

According to a new joint report by PwC, Rabobank and Temasek, by 2030, Asian consumers will double their spending on food, leaving a huge hole for investors to offer healthier and more sustainable options. Growth.

According to the group’s Asian Food Challenge Report 2021, food spending in the region will increase from $4 trillion in 2019 to more than $8 trillion by the start of the next decade, making it the world’s largest food and beverage market. It is being said that it will happen.

Much of that demand will come not only from changing consumer habits in increasingly health-conscious digitally savvy sectors, but also from a rapidly growing population. By 2030, Asia is expected to be home to 4.5 billion people and 65% of the world’s middle class.

People want healthy food, safe food, and want to buy online.

Anujima Heswari

Temasek, Agribusiness, Managing Director

Anuj Maheshwari, Temasek’s managing director of agribusinesses, told CNBC’s Squawk Box Asia: “People want healthy food, safe food, buys online and sustainable. I’m looking for a good meal.”

India and Southeast Asia accounted for the largest increase in spending, growing at compound annual growth rates of 5.3% and 4.7%, respectively. However, China will continue to be the largest market overall.

The report’s findings are based on surveys of 3,600 consumers in 12 Asia-Pacific countries, interactions with senior food sector executives, and analysis of more than 3,000 listed food and beverage companies.

$1.5 trillion investment opportunity

The rapid growth is putting pressure on already fragile food ecosystems that have been under immense pressure since the outbreak of the coronavirus pandemic.

According to the report, the growing food demand of the region will require investments of $1.55 trillion across the entire value chain by 2030. This represents an increase of $750 billion from the $800 billion upstream (or reserve) investment initially estimated in the group’s first 2019 report.

Customers buy vegetables at a supermarket in Handan City, Hebei Province, China, on September 9, 2021.

VCG | Visual China Group | Getty Images

Maheshwari says it offers significant business opportunities for investors, calling it “a hugely large region in Asia.”

Specifically, the report highlights six “key trends”: healthy eating, fresh produce, safe and traceable sources, sustainable consumption, alternative protein and online shopping.

“These trends are needed to ensure that agribusiness is focused and that consumers get the kind of food they need in places like Asia,” Maheshwari said.

According to AgFunder, investment in agricultural technology has increased by 377% to $30.5 billion since 2014.

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