Professional Documents
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25 March 2014
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Australia Unlimited
Executive Summary - ASEAN F&B Market
• ASEAN represents a A$6.46 billion food, beverage and
agribusiness market for Australian exporters, making up nearly
20% of Australia‟s total f&b/agri exports.
• Business engagement (through tariff reductions and greater
investment opportunities) has increased from 1 January 2010,
when the ASEAN, Australia-New Zealand Free Trade
Agreement (AANZFTA) came into effect.
• Australian food and beverage exports to ASEAN have
increased by nearly 48% since 2009.
• The ASEAN Economic Community is set to be introduced next
year (2015), facilitating the free flow of goods, services and
capital.
• As an economic force, ASEAN has become the third growth
engine within emerging Asia after China and India.
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Australian F&B/ Agri Exports to the main ASEAN markets
2.5
2009
2010
2011
2 2012
2013
1.5
A$ Billions
0.5
0
Indonesia Vietnam Singapore Malaysia Thailand Philippines Myanmar Brunei
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Source of Data: Australian Bureau of Statistics
Australian F&B/Agri Main Exports to ASEAN in 2013
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Source of Data: Australian Bureau of Statistics
Australian F&B/Agri Main Exports to ASEAN in 2013 (cont’d)
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Source of Data: Australian Bureau of Statistics
Singapore - Overview
• Total Population: 5.4 million residents
plus nearly 15.5 million tourist arrivals
per year (2013)
• Multicultural Society: 74.1% Chinese,
13.4% Malays, 9.2% Indians, 3.3%
others
• GDP per capita (2013): S$ 68,541 or
USD 52,051(at current market prices)
• Strong trade relationship with Australia
• Excellent trade infrastructure supported
by world-class air & sea ports
• „Entry point for the region‟ - strong re-
export/ trans shipment hub
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Market Updates & Insights – Retail Sector
• Dominated by grocery retail chains
• Main Supermarket Players
Opportunities
Dairy
• Channels to Supermarkets
Convenience
– Via local distributor/agent
Functional/
– Through Australian consolidators - small volume
(LCL), niche or shorter shelf-life products Organic
– Direct Imports from source – large volumes (FCL), Healthier
ambient/ long shelf-life options/Natural
Private Label
• Have large warehousing facilities to handle Processed
perishable goods, re-packing and distribution. Foods
Value-added
(ready to
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eat/cook)
Market Updates & Insights – Foodservice &
Food Processing Sectors
• Steady stream of international visitors & the
propensity of local residents to eat out keep the
foodservice sector vibrant.
• Marina Bay Sands and Resort World Sentosa
have provided an impetus to the foodservice
sector.
Opportunities
• 178 gazetted hotels with a total supply of 44,037
Quality Meats
rooms and 6,500 F&B Establishments. Seafood
Fresh
• Largely, hotels and restaurant groups depend on
Produce
the local importer-distributor base for their needs. Organic
Ingredients
• Small, but efficient food-processing sector –
value-added production making up a significant
proportion.
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Market Access Issues/ Updates
• Duty free market for all food products (7% Goods and Services Tax)
• Strict regulations related to nutrient function claims.
• Only frozen poultry and processed poultry meat products are allowed from
Australia – must come from AVA approved establishments.
• Chilled fresh pork and chilled cooked/processed pork (like cooked pork rib
and moisture-infused pork) are permitted only from AVA approved
establishments.
• Fresh and processed eggs may only be imported from AVA approved
establishments.
• Under SAFTA, Australian beers which satisfy the Rules of Origin
requirements do not attract the customs duty of S$ 16 per litre of alcohol.
• Excise duties on alcoholic beverages including wines & beers were
recently increased by 25% (w.e.f. Feb 21, 2014)
– S$88.00 per litre of alcohol for wines
– S$ 60.00 per litre of alcohol for beers
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Tips to Succeed in this Market
Engage closely with the market.
Understand your pricing – get the quality/price ratio right.
Take a long-term view of the market, have realistic
expectations.
Manage your relationships well – build long-term
relationships to build market share.
Quality, appearance, colour and freshness of product are
very important.
Innovative products, attractive packaging & packaging size
Uniqueness – clear points of differentiation.
Best to work with one dedicated partner in the market or for a
particular channel.
Halal Certification.
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Useful Reference Sites – Government/
Regulatory Bodies
• Agri-food and Veterinary Authority of Singapore (AVA) - National Authority that
ensures food safety.
• Legislation - Sale of Food Act and Singapore Food Regulations
• Import conditions - the AVA‟s online Import Conditions Database
(Note: The onus of responsibility to ensure that food imported into Singapore is safe
and meets all local regulations lies with the local importer.)
• Labelling -. A Guide to Food Labelling and Advertisements
• Permitted nutrient function claims
• Permitted food additives and herbal ingredients
• For general classification of food and health products, refer to Classification Tree for
Products in the Food-Health Product Interface.
• Import Requirements for Specific Food Products for „high risk‟ classified processed
food products like infant formula, infant cereals, packaged mineral and drinking water,
beef extract, etc.
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Malaysia - Overview
• A young, growing and broad group of higher middle income
population.
• Multicultural population of 29.5 mil (year 2012) with the
ethnic mix of Malay 50.4%, Chinese 24.6%, indigenous 11%,
Indian 7.1%, others 6.9%.
• 60.4% of the population are Muslims.
• GDP (current prices - year 2013) at USD 312.4 billion; GDP per capita (year
2013) at USD 10,429.
• Malaysia was Australia‟s 3rd largest trading partner in ASEAN with total 2
way trade valued is at AUD 14.1 billion in 2013.
• Malaysian food and beverage imports valued is estimated at USD 11.4
billion (year 2013)
• Halal hub – the gateway and re-export platform to the Muslim world (The
global Halal market in Halal foods is estimated at USD 600 billion per
annum)
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Market Updates & Insights – Retail Sector
• Growing middle-class / upper middle-class created new opportunities in the retail sector.
• Supermarkets increasingly import more food and beverage products directly through
Traders / Agents / Consolidators to create competition differentiation.
• Growing trend among consumers for healthy / nutritious food & beverage products
• Estimated the foodservice market is valued between USD 4.9 billion to USD 5.5 billion, and has
been growing at a rapid average rate of around 6.5% per annum over the past 5 years.
• Projected the foodservice market is likely to grow at between 7% - 10% per annum over the next 3
– 5 years.
Opportunities
Food Processing Dairy – Milk, Processed dairy
(yogurt), Butter, Cheese & etc.
• Malaysia‟s domestic production and food processing industry
achieved approximately USD 6.7 billion in export value of food Meats
products to over 200 countries worldwide.
Seafood
• The export value contributed to 10% of the Malaysia manufacturing Wines
output and predominantly supported by small – medium scale
manufacturing companies. Processed Foods – Sauces,
Condiments, Juices, Spreads &
• Food products and ingredients that are certified with Malaysian etc.
Halal Standard, will have added marketing value in Malaysia Halal Certified Products
and in other Muslim markets as Malaysia‟s Halal is globally
recognised. Baking Ingredients &
Condiments
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Market Access Issues
• Import regulations (import permits, packaging, labeling, testing, and ports of entry),
quotas and customs procedures create significant challenges for Australian exporters
looking to do business in Malaysia.
• Malaysia – Australia Free Trade Agreement (MAFTA) - came into force on 1 January
2013.
• MAFTA provides for improved access for Australian exporters to the Malaysian market
and builds on the commitments made by both countries under the ASEAN-Australia-
New Zealand FTA (AANZFTA).
• Under the Agreement, 97.6 per cent of Australia's exports (2011 figures) will
immediately be tariff-free, rising to 99.0 per cent from 2017.
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Tips to Succeed in this Market
• The key to market entry success is to engage with a dedicated local
importer / distributor and work closely on building the relationship for the
long term.
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Useful Reference Sites – Government /
Regulatory Bodies
Food and beverage-related resources
• The Department Of Veterinary Sciences Malaysia – www.dvs.gov.my
• Halal Approved Abattoirs in Australia for Malaysia – www.dvs.gov.my/en/australia
• Approved International Islamic Bodies Recognised by Jakim – www.halal.gov.my/v3/index.php/en/list-of-
approved-islamic-bodies
• Federal Agriculture and Marketing Authority Malaysia – www.fama.gov.my
• Malaysian Food Act 1983 – www.agc.gov.my/Akta/Vol.%206/Act%20281.pdf
• Food Regulation 1985 - http://fsis2.moh.gov.my/fosimv2/HOM/frmHOMFARSec.aspx?id=21
Please note: This list of websites and resources is not definitive. Inclusion in this list does not imply endorsement by Austrade. The
information provided is a guide only.
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Brunei Darussalam – Overview
• Population:393, 372 (2011 )
• Land Size : 5,765 sq km
• Religion: Muslim Majority
• Currency : Brunei Dollar (on par &
interchangeable with Singapore Dollar)
• Language : Malay, English, Chinese
• GDP (2012): est USD16.6 billion
• GDP per capita (2012) : est
USD42,211
• GDP growth (2013): est 2.3%
(Data courtesy of BEDB)
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Market Updates & Insights – Retail Sector
• Brunei imports about 80% of its food requirements
(direct and indirect shipment/transshipment via
Singapore/Malaysia )
• Healthy lifestyle trend – consumer preference for healthy / nutritious
food & beverage products
• Halal certified products – accredited by Brunei Halal Authority –
Ministry of Religious Affairs
Opportunities
Main retail outlets are : Halal food
Ben Foods (Supasave supermarket chain) Chilled beef
Hua Ho Department Store with supermarket facility and lamb
Processed
Giant (Malaysian entity)
food
Diary
Other hypermarts/specialised grocery retail: products
TM Majeed, SKH Department Store, Guan Hock Lee, Fruits and
Jaya Hypermart, Liang Toon, Freshco (newly opened vegetables
in 2014) Confectionery
Organic
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Market Updates & Insights – Foodservice
& Food Processing Sectors
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Market Access Issues
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Tips to Succeed in this Market
• Brand awareness
• Have a close rapport with local distributor
• Follow guidelines for food imports
• Support in-market activities and promotions
• Price sensitive market – customers always
comparing
• Work with Austrade to assess your market
potential
• Contact: josie.abdullah@austrade.gov.au
Business Development Manager,
Austrade Brunei
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Useful Reference Sites – Government/
Regulatory Bodies
Product certification, labelling and packaging
• For information on Food Import regulations in Brunei, contact:
Head, Food Safety and Quality Control Division
Department of Health Services
Ministry of Health
Brunei Darussalam
Email: fsqc@moh.gov.bn
Web: www.moh.gov.bn
Tel: +673 2331 100
Fax: +673 2331 107
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Thailand – Overview
› 68 million people
› GDP per capita US$5,800
› 30th biggest economy: 2nd
biggest in ASEAN Global ranking of selected Thai
exports
› 17th largest manufacturing Product Ranking in Share in
output world
export
world
export
(2012) (2012)
› Regional hub for agricultural Hard disk Drives 1 N/A
commodities, vehicles, auto
Rubber 2 8.5%
parts, consumer goods,
electronics, processed food and Sugar 2 8.7%
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Market Updates & Insights – Retail Sector
› Growing affluence
• Consumer power
• Focus on well-being
› Convenience
› Growing regionalisation of Thai business
Opportunities
Dairy
Grocery
Fruit and veg
Salted snacks
Wine
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Market Updates & Insights – Foodservice
& Food Processing Sectors
Opportunities
Meats
Dairy
Wine
Fruit and veg
Food
ingredients
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Market Access Issues
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Tips to Succeed in this Market
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Useful Reference Sites – Government/
Regulatory Bodies
• Food and Drug Administration
www.fda.moph.go.th/fda_eng
• JAS-ANZ www.jas-anz.org
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Indonesia - Overview
Healthy
• Urbanisation is increasing, demanding ingredients/
convenience food snacks
Non-diary
milk
• Retail market is continually growing, RTD/RTE
greater access for customers Instant Meal
Breakfast
Cereal
Source: McKinsey Global Institute, 2013
Chips
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Market Updates & Insights – Foodservice
& Food Processing Sectors
• Approximately 6,000 restaurants in Indonesia
• Number of food service and hospitality providers growing
• Increase in the purchasing power of consumers at
foodservice outlets
• Price sensitive Opportunities
Source: Indonesian Bureau Statistic, 2013
Butter
Cheese
Cream
Beef
Lamb
Bakery
ingredients
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Market Access Issues
• Product Registration
– BPOM Registration (ML Number) & Entry Permit (SKI)
– Labelling
– Establishment pre-list for dairy and meat products
– Halal
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Tips to Succeed in this Market
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Useful Reference Sites – Government/
Regulatory Bodies
• Doing business in Indonesia:
http://www.austrade.gov.au/Export/Export-
Markets/Countries/Indonesia/Doing-business
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Market Updates & Insights – Retail Sector
• Concentrated markets in Manila and Cebu, but expanding to other
provinces too
• Annual average growth in the grocery retail sector is at 7% , with
ongoing mall and supermarket expansion
• Expanding range of imported goods an objective of supermarkets;
• Some supermarket chains interested in direct importation
• New players in the convenience store
segment Opportunities
Beef and
• Smaller is better - sachet packs and smaller packs lamb
preferred by lower to middle income consumers Dairy
Fresh
produce
Health food
Convenienc
e foods
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Market Updates & Insights –
Foodservice & Food Processing Sectors
• Food service outlets at 80,000 and expected to grow 2%
annually
• Eating out accounts for about 12% of an average
household’s food budget
• Domestic food service growth to be spurred by expected
increase in tourism growth.
• Many new locally grown franchises. Opportunities
• A fast food culture with a growing Beef for
manufacturing
population of wine and coffee drinkers Chicken MDM
• Domestic processors Grains and
dominate the wheat
manufacturing sector Craft beers
Beef and lamb
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Market Access Issues
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Tips to Succeed in this Market
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Useful Reference Sites – Government/
Regulatory Bodies
• For processed food:
Food and Drug Administration (www.fda.gov.ph)
• For meat and products that contain animal products:
Bureau of Animal Industry (www.bai.da.gov.ph)
National Meat Inspection Service (http://nmis.da.gov.ph)
• For fruits and vegetables:
Bureau of Plant Industry (www.bpi.gov.ph)
• For Minimum Access Volume (for pork, potatoes, chicken):
Department of Agriculture (www.da.gov.ph)
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Viet Nam- Overview
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Market Updates & Insights – Retail Sector
• Modern retailers are expanding to meet the growing
consumer demand in urban areas
• Sales in retail food are expected to grow
75% by 2017 to $66 million (Source: Global Insight)
• Direct imports of this sector is still small
Opportunities
but growing Milk products
Fresh fruits
Chilled and
frozen beef
Confectionery
Biscuits and
cookies
Snack foods
Ready meals
Baby food
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Market Updates & Insights – Foodservice
& Food Processing Sectors
• Vietnamese urban consumers have busier lives, are
dining out more than before and have greater demand for
home food delivery services
• Consumers pay more attention and concerns to foods
hygiene and safety when dining out.
• The growth rate of the Food Processing Opportunities
Beef, pork &
Industry was 5.8% in 2013 (Source: the chicken
Vietnam‟s Ministry of Commerce & Industry) Wine & beer
Concentrated
juices
Dairy products
Dried fruits &
nuts
Condiments &
flavourings
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Market Access Issues
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Tips to Succeed in this Market
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Useful Reference Sites – Government/
Regulatory Bodies
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Myanmar – Overview
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Market Updates & Insights – Retail Sector
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Market Access Issues
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Tips to Succeed in this Market
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Useful Reference Sites – Government/
Regulatory Bodies
• Union of Myanmar Federation of Chambers of
Commerce and Industry – www.umfcci.com.mm/
• Further assistance
– Ms Thanda Khine, Agrifood BDM
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Contact Austrade
• Email info@austrade.gov.au
• Visit www.austrade.gov.au
• Visit www.exportawards.gov.au
• Visit www.australiaunlimited.gov.au
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