NXPO Recovery Forum was held recently with guest speaker Mr. Poonsawat Phoaprapat, Advisor to Executive Committee, CP ALL Public Company Limited. The presentation and discussion focused on “Trend in Food Industry: Opportunities for Thailand in the New Normal Market”.
Mr. Poonsawat discussed five global shifts that have transformed businesses, namely technological breakthroughs, aging society, urbanization, global economic power shift and increasing environmental awareness. He further shared his business ideas of trending food products which include frozen food, ready-to-eat meals, dietary supplements for children, protein bars made with insects, liquid diet for patients and the elderly, energy drinks, and snacks made with fruits and vegetables. To build a successful business, one has to understand consumers and their lifestyle – whether they are health conscious or senior citizens – as well as beware of issues such as food security and circular economy.
The COVID-19 pandemic has rapidly transformed the food businesses. The number of ghost kitchens and mobile kitchens has grown significantly as restaurants are not opened for dining in. Food businesses are pushed to an on-line platform and offer delivery, as the food delivery market experiences an 85% increase. As the outbreak persists, customers pay more attention to their health, and therefore the health food sector has promising growth potential. The food industry will need to embrace health food trends which include alternative proteins, low sugar, healthy sugar substitutes, healthy ready-to-eat meals, food made with local ingredients, and functional foods. Struggling economy also pushes consumers to change their behavior. Purchasing decision becomes more logical and less emotional.
Mr. Poonsawat proposed a concept of “Food Navigator” to strengthen Thai SMEs in food sector. Food Navigator is a comprehensive database containing information related to food industry, from upstream (plantations, animal/aquaculture farms, research, infrastructure), to midstream (logistics, warehouses, food manufacturers and technologies, and downstream (domestic markets, AEC markets and demand-supply). Food Nagivator will be an important tool to guide SMEs to the success.
Dr. Kitipong Promwong, NXPO President, expressed his interest in Food Navigator and indicated that it will need more work to materialize. Large companies usually have market intelligence on hands, so it would be interesting to design a mechanism to enable information sharing. SMEs will also need some training to analyze such information so that they can use it effectively. The platform may also need to generate revenue stream to be ensure sustainability.
