Mineral and Vitamin Food Fortification Markets in Southeast Asia

Abstract

Improved Production Efficiency Crucial to Allay Effects of Increased Competition in the Mineral and Vitamin Food Fortification Market

The cost-cutting strategies of the Chinese suppliers of mineral and vitamin food fortification have increased the pressure on the rest of the Southeast Asian participants to slash prices of specific vitamins and minerals. The hardest hit in this competitive, low-margin business are the suppliers from Europe, and this state of affairs is expected to escalate as more participants enter the market. Companies need to ensure they are aware of market trends through continuous competitive benchmarking, which diminishes the risks of unexpected market invasions. Another vital strategy to stay ahead of the competition is through continuous enhancement of company efficiency and product quality. To achieve this, companies have to invest in market research. This will help them identify problem areas and obtain feedback to significantly improve product profiles.

This Frost & Sullivan research analysis examines the mineral and vitamin food fortification markets in Southeast Asia and segments it into vitamin A, vitamin C, vitamin E, calcium and other minerals and vitamins. The study also discusses the major market drivers and restraints along with strategic recommendations to overcome industry challenges. The research service enables companies to align their positioning strategies to benefit from the changing market conditions and obtain maximum return on investment.

Market Gains Momentum with the Promotion of Micronutrients and Strong Government Backing

Southeast Asian consumers have begun to realise the benefits associated with micronutrients -- especially vitamin C, calcium and iron. This improved awareness can be mainly attributed to the increased number of educated consumers in this region. While this trend is largely responsible for the upswing in the food fortification market, the importance of the huge population (approximately 500 million) in the region cannot be discounted either. This population creates tremendous potential market for fortified foods.

The markets have gained strong impetus from the governments active advocacy of food fortification as a possible solution to combat micronutrient deficiencies in Indonesia, Vietnam and the Philippines. "The Philippines has both a mandatory and voluntary program to encourage fortification," says the analyst of this study. "In Thailand, the Ministry of Public Health has a program called the Nutrition Seal program to encourage food manufacturers to produce fortified food products and to create awareness among consumers." Such strong government backing is expected to stand the market in good stead.

Marketing Campaigns to Augment the Popularity of Vitamins and Minerals Fortified Foods

The favourable coverage of the benefits of vitamins and minerals in the media, promotional campaigns and increasing awareness about preventive healthcare have all gone a long way in expanding the customer base for this market. Dietary vitamins and mineral manufacturers also spot significant opportunities in emerging Southeast Asian markets including Indonesia and Vietnam.

"Recent health scares such as the severe acute respiratory syndrome (SARS) and the well publicized osteoporosis disease have prompted consumers to place more importance on health. Preventive measures such as consuming fortified foods are becoming increasingly common in Southeast Asia," notes the analyst. "This is expected to open up more opportunities and drive market growth."