Asian consumers are set to expand their food budget to over $8 trillion over the next decade. A new joint report by PwC, Rabobank and Temasek, the Asia Food Challenge Report 2021, stated that the region’s food expenditure will more than double by 2030. But with this significant growth, huge investments will be needed to keep up with the growing demand for sustainable, fresh and healthy foods.

The report estimates that the swelling demand will be a result of the growing population, the wealth of the Asian middle class, and the greater emphasis on healthy diets in a rapidly digitising region.

“Folks want healthier food, they want safer food, they want to buy online, they want food that is sustainable,” Anuj Maheshwari, Temasek’s Managing Director of Agribusiness, told CNBC

A recent study found that Asia would add over one billion individuals to the middle class as levels of education and income improve. The region is also home to the fastest-growing population when it comes to internet usage, especially with the rise of cheaper smartphones and faster internet connections.

While China is set to continue as the largest food market in Asia, India and South-East Asia will see the biggest growths in food spending. The two regions are expected to grow by CAGR 5.3 percent and 4.7 percent, respectively.

The report estimates that investments of up to $1.5 trillion will be needed to meet and secure the growing food demands of the region. While this presents an immense opportunity for investors, it also highlights the relatively fragile state of the food ecosystem in a region which still largely relies on small-scale agricultural producers.

Further areas of growth that the report identified were healthy diets, fresh produce, safe and traceable sources, sustainable consumption, alternative proteins and online purchasing.

“These trends (are) what agribusinesses need to focus on and make sure consumers can get this kind of food in addition to the volume that we need in places like Asia,” said Maheshwari.

The COVID-19 pandemic has further boosted online grocery buying, while sustainable consumption is also catching on with greater awareness of climate change.

India, in particular, will be trying to meet its growing demand with a mixture of private investment and government subsidies to modernise its agricultural sector.

(Edited by : Shoma Bhattacharjee)

First Published:Sept 22, 2021 6:45 PM IST