Asian states are on course to double their spending on food by 2030 to some $8 trillion, with over $1.5 trillion of investment needed to keep up with the demand, a new report finds.
According to joint findings of investment firms PwC, Rabobank and Temasek, much of the spending increase will come from the fast population growth in the region, expected to reach 4.5 billion people by 2030.
Changing consumer habits is another factor contributing to increased demand, with people in the region increasingly turning toward healthy food.
“Folks want healthier food, they want safer food, they want to buy online, they want food that is sustainable,” Anuj Maheshwari, managing director of agribusiness at Temasek, told CNBC.
All this will inevitably lead to Asia becoming the world’s largest food and beverage market in less than a decade, the report states.
According to the findings, India and Southeast Asia will boost spending the most, however, China will retain its position as the largest market overall.
The report states that some $1.55 trillion of investment will be required across the entire Asian food chain to meet the growing demand, which could be a great commercial opportunity for investors.
The report urged producers and investors to shift their focus to six “critical trends,” including healthy diets, fresh produce, safe sources, sustainable consumption, alternative proteins and online purchasing.
“These trends (are) what agribusinesses need to focus on and make sure consumers can get this kind of food in addition to the volume that we need in places like Asia,” Maheshwari summed up.
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