Thu, Jul 09, 2009 - Page 14 News List

Asia’s battle of the bulge

Concerns over expanding waistlines in Asia have prompted health food companies to eye the region’s market as ripe for rapid growth

By Ralph Jennings  /  REUTERS , TAIPEI

In India, the world diabetes capital with 40 million cases, a number expected to double by 2025, the market for health foods is estimated at US$200 million per year, according to consulting firm Frost & Sullivan, which predicts it will grow to over US$1 billion by 2012.

Obese people make up a quarter of the population in some Indian cities, another by-product of rising incomes.

The drinks market has gone healthy with Coca-Cola Co introducing a new bottled spring water in Japan last month after expanding its product lines in Hong Kong with drinks flavored with preserved almond, jujube and pear.

This October, PepsiCo launched SoBe beverages, a range that included fortified teas, fruit drinks and energy drinks, in India.

Nestle was the first to introduce probiotic yogurt in India in 2007, while Tata Tea, India’s top tea company, recently introduced a series of cold drinks with tea, fruit and ginseng.

It’s not always easy to convince consumers that a specialized food can help them, said Charu Harish, who does publicity in Hong Kong and Malaysia for GlaxoSmithKline’s Horlicks milk-and-wheat drink and Ribena fruit drinks.

“It’s not about a soft sell,” Harish said. “Health and well-being are the first things people in Asia think of. We are trying to market our products with as much transparency as possible.”

For this reason, companies go to great lengths to emphasize the health properties of their products when targeting consumers in Asia.

In its marketing campaigns in the region, the Almond Board of California, which represents 6,000 growers, has stressed that its nuts contain anti-oxidants and protein.

As a result, the board saw 24 percent growth from 2006 to last year, with its members earning US$486 million last year from sales in four Asian countries, including China and India, said chief marketing officer Shirley Horn.

Consumers associate health food with better quality, a sensitive issue in the wake of a string of China-produced food scandals, which resulted in supermarkets across the region removing items with chemicals such as melamine from shelves.

Reflecting the food safety concerns of many consumers in Asia, Wanpen Thongsri, 49, a company executive in Thailand, where health food popularity has grown exponentially, said that she is willing to pay a premium for health foods.

“Frankly, I don’t know if I can feel safe with all brands. But I’m willing to pay more for good health,” said Thongsri.

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