Asia’s food spending set to double to over $ 8 trillion by 2030

Asian consumers are expected to double their food spending by 2030, leaving a gaping hole for investors to come up with healthier and more sustainable options, according to a new joint report from PwC, Rabobank and Temasek.

Food spending in the region will reach more than $ 8 trillion by the start of the next decade – up from $ 4 trillion in 2019 – making it the world’s largest food and drink market, said Tuesday. the “Asia Food Challenge Report 2021” group.

Much of this demand will come from changes in consumption habits in a region increasingly concerned with its health and digital technology, but also with its 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 healthier food, they want safer food, they want to shop online, they want sustainable food,” Anuj Maheshwari, General Manager of Agribusiness at Temasek, told Squawk Box Asia “from CNBC.

India and Southeast Asia are expected to record the largest increase in spending, with compound annual growth of 5.3% and 4.7%, respectively. China, however, will remain the largest market overall.

The report’s findings are based on a survey of 3,600 consumers in 12 Asia-Pacific countries, as well as conversations with senior food industry executives and analysis of more than 3,000 food and beverage companies. listed drinks.

The rapid rise is putting pressure on an already fragile food ecosystem, which has been under immense pressure since the outbreak of the coronavirus pandemic.

According to the report, it will take $ 1.550 billion in investment by 2030 across the entire value chain to meet the region’s growing food demand. This represents an increase of $ 750 billion from the $ 800 billion upstream (or preliminary) investment initially estimated in the group’s 2019 inaugural report.

This presents significant business opportunities for investors, said Maheshwari, calling it a “big, big region of Asia.”

Specifically, the report highlighted six “critical trends,” including healthy eating, fresh produce, safe and traceable sources, sustainable consumption, alternative proteins, and online shopping.

“These trends (are) that agribusinesses need to focus on and ensure that consumers can get this kind of food in addition to the volume we need in places like Asia,” said Maheshwari.

Investments in agricultural technologies have increased significantly since 2014, increasing 377% to $ 30.5 billion, according to AgFunder.