From the Field: In-Market Representative Reports – December 2024

Food Export – Midwest and Food Export – Northeast have developed a network of 19 uniquely experienced In-Market Representatives around the globe. These local marketing experts in the food industry provide Food Export with on-the-ground assistance to implement our various programs and services.

In addition, through regular trade servicing, these local representatives report on local issues, trends, and opportunities for international buyers to connect with suppliers of U.S. agricultural and food products. Every month we share with you some of the top market insight from the trade servicing reports we receive in order to improve your international export efforts.

The Caribbean’s Expanding Market Potential 

The Caribbean region is emerging as a promising market, driven by its heavy reliance on food imports and increasing demand for sustainable solutions. Countries like Barbados and Saint Vincent and the Grenadines import a significant portion of their food, presenting vast opportunities for exporters, agricultural technology providers, and service suppliers. In Barbados alone, the annual food import bill stands at $408.5 million. 

Investments in sustainable agriculture and irrigation infrastructure are crucial to addressing challenges like climate change and water scarcity. Initiatives such as the $21 million joint proposal by the FAO and CARICOM aim to enhance digitalized irrigation systems in Barbados, Jamaica, and Saint Vincent and the Grenadines. These projects provide opportunities for companies specializing in agricultural technology and sustainable farming solutions. 

The Caribbean’s active participation in global initiatives like the FAO’s Hand-in-Hand Initiative underscores its commitment to strengthening agrifood systems through international cooperation. Furthermore, broader global trends, such as nearshoring and friendshoring, are positioning the Caribbean as a potential hub for sustainable trade and investment. While challenges like high corporate tax rates and limited infrastructure remain, efforts to improve these areas could significantly enhance the region’s attractiveness to foreign investors. 

Taiwan’s Dynamic Dairy Industry 

Taiwan’s dairy sector is undergoing a transformative phase, driven by international trade agreements and evolving consumer preferences. The 2012 ANZTEC agreement with New Zealand has allowed most New Zealand agricultural products to enter Taiwan with zero tariffs. By 2025, all tariff restrictions for New Zealand dairy products will be lifted, further intensifying competition in the local market. 

Taiwan primarily produces liquid milk, with minimal diversification into other dairy products. The rise in imported milk, particularly from the U.S., New Zealand, and Australia, has led to growing competition for local producers. To differentiate, Taiwanese dairy companies are emphasizing single milk sources, animal welfare certifications, and premium quality to cater to a discerning market. 

In 2023, the U.S. supplied 34,118 MT of liquid milk, capturing a 53% market share, while New Zealand accounted for 26%. Total liquid milk imports reached $43 million. Taiwan’s dairy policy includes strict Tariff Rate Quotas (TRQs) and Special Safeguards (SSGs) to manage import volumes and prices, ensuring local producers remain competitive. 

Looking ahead, opportunities abound for businesses to collaborate with Taiwan’s dairy sector, particularly in areas like product differentiation, innovation, and sustainability. As the market evolves, aligning with consumer demands and leveraging trade agreements will be key to success. 

Vietnam’s Thriving F&B Sector 

Vietnam’s F&B market is on a remarkable growth path. According to Euromonitor, the sector’s value is set to increase by 10.92% by 2023, with a projected compound annual growth rate of 10.25% between 2023 and 2027. By 2027, the market is expected to reach an estimated value of VND872.9 trillion ($34.9 billion). Chain restaurant revenues are forecast to grow faster than independent stores, reflecting a compound annual growth rate of 14.6% compared to 12.52% for their counterparts. 

One of the driving forces behind this growth is Generation Z, a dominant consumer group eager for new experiences and creative offerings. However, their low product and brand loyalty necessitates a focus on trends and customer retention strategies. In 2024, small and medium-sized beverage models are expected to thrive, aligning with young consumers’ preferences for affordability, convenience, and takeaway-friendly options. 

On the high-end spectrum, Vietnamese restaurants are competing for Michelin stars, enhancing food quality, customer service, and overall dining experiences. This effort not only elevates local dining standards but also positions Vietnam prominently on the global culinary map. Additionally, the resurgence of international tourism, particularly from South Korea, Europe, and the U.S., has significantly boosted F&B revenues, with tourists heavily researching dining options via platforms like TripAdvisor and the Michelin Guide. 

The Ministry of Industry and Trade (MoIT) projects Vietnam’s F&B revenue to grow by 10.92% in 2024, reaching over $29.8 billion. This optimism is shared by businesses and consumers alike, with an increasing emphasis on sustainability, health safety, and green products with clear origins. Despite facing challenges like changing consumer behavior and the rise of e-commerce, Vietnam’s F&B businesses are leveraging tourism and digital channels to maintain competitiveness.