Innovation is propelling Asia's food industry
A focus on food sustainability is driving the push for innovation. But there's money to be made as well.
WITH Asia being home to over two-thirds of the world's population and some of the fastest-growing economies, how the region develops has far-reaching implications. While its sheer size provides unparalleled diversity and opportunity, the pace and scale of growth we are witnessing brings inherent challenges - including many that involve the food-and-beverage industry front and centre.
Health issues such as the widespread prevalence of diabetes and chronic malnutrition due to poor diets are front of mind for society, governments and the private sector alike. And the economic impact of not addressing these issues can't be underestimated. A recent report by the Economist Intelligence Unit found, for instance, that obesity can remove as many as nine years of productivity from a person's life - a matter of concern for global economies.
We owe it to ourselves and Asia's next generation to address and alleviate these challenges. Encouragingly, many of the solutions we need are already available, or are being developed, thanks to an innovative, more-informed and creative generation which is using technology as much for ethical and social reasons as for business. We are better equipped than ever before to tackle the sustainability crisis head-on.
Food and beverage is an excellent example of an industry that is embracing transformation, and nowhere is this more apparent than here in Singapore, which is establishing itself as a hub for food and agri-tech innovation.
A long-standing focus on the sustainability of food production has driven this push for innovation, and many of the world's biggest food companies, startups and governments are investing time and money in this sector within Asia.
For example, plant-based ingredients and alternative proteins present us with great potential in diversifying diets while having minimal negative impact on the environment. Innovations like these are helping us rethink the way we see food, changing eating habits and attitudes of entire societies, and as importantly, they can also provide significant commercial opportunity.
Singapore is realising the benefits of food tech. An entrepreneurial environment that encourages homegrown innovation is emerging. In a country that celebrates the tasty chicken rice as a national dish, scientists at National University of Singapore-based startup Life3 Biotech are developing a meat-free alternative to chicken.
Investors are recognising the business opportunity that this presents and last year, Temasek Holdings invested S$75 million in Impossible Foods, a US-based business that produces plant-based burger patties that taste like real beef. This was a clear indication that increasing demand for alternative proteins may not only be a good move for food resilience and the planet, but also for businesses and Asia's economy.
The industry realises that food production is not the only part of the value chain that can benefit from innovation. With growing public awareness of the impact society and consumer habits are having on our environment, companies are turning their attention to the sustainability of the planet and are pushing for innovative solutions to address the mounting plastic waste in the oceans.
Plastic, as a material, revolutionised the storage, distribution and safety of food after its creation in the early 20th century. Nevertheless, the world is only just waking up to the long-lasting impact that poor plastic waste management can have on our environment.
Asia finds itself at the centre of the global debate on plastics production and pollution. I often hear people saying that 90 per cent of the emotion can be found in Europe, but 90 per cent of the problem is in Asia. While this issue is global, its causes are very much local and require action here in the region. Food Industry Asia (FIA) recently commissioned research into the plastic waste situation in Asean. The study showed the extent of the issue and the specific levers for change. For example, we found that over 80 per cent of waste in the Philippines is collected, yet close to 20 per cent of it still finds its way into the ocean. This needs to change and the food industry can play a part.
Changing how and where we dispose of plastics is going to be a long-term process. But what if there is a way to redesign packaging to minimise or even eliminate the impact it has on the environment? We predict that creating sustainable packaging is the next frontier for food tech and, encouragingly, the first steps are already being taken in Asia.
For example, here in Singapore, scientists at the Agency for Science, Technology and Research (A*Star) have invented a new form of packaging made from a clay-polymer composite. Using this smart packaging keeps food fresher for longer and at higher temperatures, and could reduce the alarming amount of food waste produced.
It is not just startups and innovators taking big leaps and changing the way food packaging could look in the future. Many of the world's leading companies and plastics producers are working hard to make all their products 100 per cent recyclable. This year, at the World Economic Forum's annual meeting in Davos, 11 global companies - including FIA members Danone, Mars, PepsiCo, Coca-Cola and Unilever - made public commitments towards 100 per cent recyclable packaging. The fact that commitment is coming from the industry at the highest level is incredibly positive for future progress.
To fast-track innovation and harness these ideas that will shape the future of food, it will be critical for all industry players to come together to identify the challenges and crowd-source solutions. To support this drive for innovation, FIA will host the first Food for the Future summit in Singapore on Thursday. Local innovators, including Life3 Biotech and global industry leaders such as Crown Holdings, will be there to exchange ideas and solutions.
By encouraging enterprise and supporting large and small-scale innovation at many stages of the food supply chain, we can make crucial progress towards a more sustainable industry, and as we continue to find new ways to transform the sector, I am excited to see more Asian organisations and entrepreneurs become the driving force behind food innovation across the supply chain.
