Monthly update from our global network of In-Market Representatives about what's going on in markets around the world.
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 global food and beverage industry continues to experience rapid change as consumer preferences evolve and new opportunities emerge. In this post, we’ll explore significant developments in El Salvador, Mexico, Singapore, and Indonesia, shedding light on key trends that are shaping the future of these regions’ markets. From health-conscious snacking in El Salvador to rising demand for premium alcoholic beverages in Mexico, and innovations in halal trade and food sustainability in Southeast Asia, these insights offer valuable opportunities for businesses looking to enter or expand in these markets.
EL SALVADOR: Health-Conscious Snacking on the Rise
In El Salvador, consumers are becoming increasingly health-conscious, particularly in the snack category. While price and pleasure continue to dominate purchasing decisions for most, a growing segment of the population is seeking healthier options. These consumers are focusing on products with health claims such as reduced sugar, added functional ingredients like chia seeds or extra protein, and overall lower calorie content.
A niche but expanding group of consumers is paying close attention to ingredient lists, preferring snacks made with clean and simple ingredients. This trend is particularly strong among higher-income groups, who are also gravitating toward snacks with increased protein content and without artificial colorings and flavorings. Furthermore, there is rising interest in snacks made with alternative oils, such as avocado, olive, and coconut oil.
Interestingly, local snack companies in El Salvador currently offer a limited selection of products that cater to this health-conscious demographic. This gap in the market presents a golden opportunity for U.S. suppliers to introduce a wider range of healthier snack options to meet the evolving demands of Salvadoran consumers.
MEXICO: The Shift Toward Premium Spirits
Alcohol consumption has been a cultural mainstay throughout human history, but in Mexico, drinking habits are shifting. Today’s consumers, particularly young people, are developing more sophisticated palates and increasingly seeking out distinctive, high-quality alcoholic beverages. This has led to a growing demand for premium spirits, despite an overall contraction in the spirits market.
According to Miguel Ángel Alvarado, Spirits Marketing Manager at Casa Pedro Domecq, the spirits and distilled spirits category in Mexico has seen a contraction of about 7% compared to the previous year. Alvarado attributes this trend to the country’s broader economic challenges. However, while overall consumption is declining, consumers are drinking less but opting for higher-quality products — a shift that has bolstered the premium spirits market.
For businesses in the alcohol industry, this evolving consumer preference signals a lucrative opportunity. Brands that focus on quality and craftmanship can capture the attention of discerning Mexican consumers, particularly younger ones, who are shaping future trends in the market.
SOUTHEAST ASIA
Singapore and Indonesia: Boosting Halal Trade
On October 17, 2024, Singapore and Indonesia entered a groundbreaking agreement to mutually recognize each other’s halal certifications. This move, designed to boost trade between the two nations, will create significant opportunities for businesses involved in halal-certified products. By ensuring high standards and simplifying the certification process, the agreement is expected to strengthen the halal market and unlock new avenues for trade between Singapore and Indonesia.
Food Sustainability in Singapore
Singapore is also making strides in sustainability and healthier food choices. Researchers from Republic Polytechnic have developed an innovative crop booster from soy pulp, a waste byproduct of tofu and soy milk production. The new product, Okara Biostimulant Concentrate (OBC), enhances plant resilience and boosts crop yields by up to 50%. It’s currently being tested and marketed by SoiLabs, with potential applications in areas like edible fruit coatings. This development aligns with Singapore’s ongoing efforts to reduce food waste and improve sustainability.
In addition, Singapore is expanding its Nutri-Grade labeling system to include packaged salt, sauces, instant noodles, and cooking oils. The Nutri-Grade label, already used on beverages, is aimed at helping consumers make healthier choices by addressing high sodium and fat intake, which have been linked to rising levels of high blood pressure and cholesterol. The government’s gradual approach to implementing this system will involve close collaboration with manufacturers to ensure a smooth transition to healthier product offerings.
Chinese F&B Chains Expanding in Southeast Asia
A wave of Chinese food and beverage chains, specializing in Sichuan hot pot and bubble tea, is expanding across Southeast Asia, North America, and Europe. Singapore is becoming a hub for these companies as they use the city-state as a testing ground for international markets. Brands like Haidilao and Mixue are rapidly expanding through franchising and adapting their offerings to meet local preferences. However, challenges such as supply chain management and preserving brand authenticity abroad remain, underscoring the complexities of international expansion.
Your Connection To Growth®
©2024 Food Export Association of the Midwest USA and Food Export USA–Northeast. All Rights Reserved.
Food Export–Midwest and Food Export–Northeast prohibits discrimination in all its programs and activities on the basis of race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, familial/parental status, income derived from a public assistance program, political beliefs, reprisal or retaliation for prior civil rights activity. (Not all bases apply to all programs.) Persons with disabilities who require reasonable accommodations or alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact us. Additionally, program information may be made available in languages other than English.
To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online https://www.ascr.usda.gov/filing-program-discrimination-complaint-usda-customer.
Food Export–Midwest and Food Export–Northeast reserve the right to deny services to any firm or individual which, in the sole opinion of Food Export–Midwest and Food Export–Northeast, does not comply with FAS, MAP or Food Export–Midwest and Food Export–Northeast regulations or policies, or otherwise offer the best opportunity to achieve its mission of increasing food and agricultural exports. Submission of any false or misleading information may be grounds for rejection or subsequent revocation of any application or participation. Food Export–Midwest and Food Export–Northeast are equal opportunity employers and providers.