Lifestyle, Cultural Factors Weigh On Food Exports to US

By Manik Mehta NEW YORK, June 27 (Bernama) -- Malaysian food suppliers wanting to gain a foothold in the huge United States (US) market have to take lifestyle and cultural factors into account, said Phil Kafarakis, president of the influential Specialty Food Association (SFA). His comments followed the participation of six Malaysian food exporting companies at the just-concluded New York Fancy Food Show (NYFFS). While their participation not only provided exposure to Malaysian food products, it also enabled them to strengthen their foothold in the US market, said Kafarakis. “The choice of foods has become part of lifestyle and culture … we now have the halal, kosher, organic, vegetarian and vegan food categories, all of which have their dedicated followers. “Taste is not the only criterion for choosing a particular food. Thus, any foreign food supplier wanting to get a foothold in this gigantic food market, has to take the lifestyle and cultural factors into account,” he added. The US is indeed a gigantic food market, with consumers ever willing to spend more for good, quality food. Organic, vegetarian and vegan food varieties are getting increasingly popular and Malaysian food exporters would do well to take note in attempting any foray into the US market. The US food market value is mind-boggling, recording a whopping US$148.7 billion in sales of speciality food products in 2018, according to the SFA data. Indeed, 74 per cent of consumers purchase speciality foods. Retail sales of the speciality food segment grew at 10.3 per cent compared to the general food at 3.1 per cent. The so-called “better-for-you, functional, and health-forward” foods will be on the radar for the next five years. It was not surprising to find at the NYFSS, big food-supplying countries such as France, the United Kingdom, Italy, Greece and Germany, showcasing a larger range of products that conformed to the changing tastes, besides displaying their traditional meat products. Even the traditional halal food supplying countries such as Turkey, Morocco, Tunisia, the United Arab Emirates and Indonesia were heavily focused on vegetarian and vegan products. The six Malaysian exhibiting companies displayed, coconut water and coconut-based products as well as biscuits, cookies and sauces among others. “Some of the best-selling products at the show were plant-based foods, jams, jellies, honey with and without spice flavouring, a variety of Asian condiments and turmeric-based products. Vegan snack bars of the gluten-free varieties were favourites. American consumers want the original taste of Bali or Delhi in their homes without having to visit these places. “Southeast Asian foods are becoming increasingly popular not only among younger consumers, but across all generations,” Kafarakis said, adding, almost everything is becoming gluten-free, fat-free and sodium-free. As a result of growing environmental awareness, consumers are also demonstrating greater social responsibility. “Indeed, the big brands are supporting such issues and showing their social responsibility to alleviating food and water shortages, reducing plastic consumption and meeting the global challenge of climate change,” the SFA president noted. He said for Malaysia, the NYFFS facilitated the entry of local companies into the US market. “As an export-oriented economy, Malaysia can use this show as a platform to showcase its products and also establish good contacts with importers, many of whom have spread their network to Asia. This year’s show has been the largest business to business (B2B) show in our history,” he added. The SFA, which organizes the NYFFS, has devised a “partner country” concept. Germany was this year’s partner country. Italy will be partner country in 2020. Some Malaysian exhibitors feel the Malaysian government should consider making a bid for this status in the future, as the country produces a wide array of food products, ranging from exotic fruits such as the durian and the star fruit through to coconut-based products and processed foods. “We need to showcase our products in a strategic manner and promote our branding just as other Asian countries like India, Thailand and Japan do. “Perhaps, the government can plan and organise a large-scale partner country participation for Malaysia at this show,” a Malaysian company representative said. There was also a larger turnout of exhibitors from Malaysia’s neighbours, namely Thailand, Indonesia, the Philippines, Singapore and Vietnam. -- BERNAMA