The characteristics of the organic food market in South East Asia and the opportunities for European organic producers.
Southeast Asia is today a good area to make business and to export food products. The countries of this area are different but present similar characteristics in terms of consumers’ consumption.
Asia has the third-largest market for organic products. The organic food market in southeast Asia is experiencing healthy growth as consumer awareness is increasing in countries, such as India, China, and Indonesia.
According to the FIBL & IFOAM report, in terms of certified producers, Thailand with 2100 producers has the second-highest number in the region, after India.
Consequently, the organic food market in South East Asia is in continuous growth, with great opportunities for all the products coming from Europe.
Specifically, the organic products of the Mediterranean diet are considered “cool”, healthy and fashion from the young people of a lot of Asian metropolises with high and middle buying power.
The organic food market in southeast Asia shows a positive trend also because the data are confirmed by our experience in the field.
Specifically, we keep receiving requests from Vietnam and Thailand for our organic products.
The growth of the organic food market in South East Asia
Asia-Pacific holds the fastest market growth estimated at CAGR 22.9% for the forecast period, though the largest market share is controlled by North America and is expected to continue the market dominance through 2022. Asia-Pacific organic dairy products market is estimated to rise with a prolific CAGR of 16.3% for the forecast period.
The market of organic food in the region is strongly dependent on the imports, especially the market of processed organic products.
The markets of Singapore, Thailand, and Indonesia are the most relevant in terms of dimensions and perspectives for the whole region.
The organic food market in southeast Asia is expanding also because the organic agriculture cultivated area in the region is in continuous expansion.
Specifically, considering the data of 2018 from FIBL & IFOAM, Indonesia, Viet Nam, and Thailand are in the first 10 countries with the largest organic area. Indonesia leads the chart with 251.631 hectares followed by Viet Nam with 237.693 and Thailand with 95.066 hectares.
Singapore and Thailand especially are the two natural Hubs of the region as they offer logistic advantages thanks to their strategic positions. Therefore, high percentages of growth are also anticipated for the next years thanks to the increase of preferences for organic products from the consumer and the increasing proposals of the distributors.
Organic retail sales in Thailand were valued at 12 million euros in Viet Nam 18 million (FIBL & IFOAM report).
Considering the dynamic nature of the area, organic products represent quality and safety by nature, so they are perfect to be exported there.
As Grand View Research states:
The industry in the Asia Pacific is projected to witness the fastest growth over the forecast period and account for over 12% of global revenue by 2025.
The Asia Pacific is projected to witness the highest growth on account of the growing agriculture sector in the region coupled with robust domestic demand has led to significant demand for organic products.
For all these reasons, the organic food market in southeast Asia is one of the main drivers of the Organicity Project strategy.
FIBL & IFOAM – Organics International (2020): The World of Organic Agriculture. Frock and Bonn