Tetra Pak eyes 4.0 agro-business demand for innovative packaging and processing
FOOD processing and packaging solutions company Tetra Pak (Thailand) is positive about the growth outlook for the markets under its responsibility – Thailand, Myanmar, Cambodia and Laos, said the company’s new managing director Bert Jan Post.
The company was ready to bring game-changing solutions to these markets to help customers respond to the fast-changing market conditions and consumer demands, said the Dutch executive.
The rising number of people entering the middle class, urbanisation, and the diverse needs of consumers will be the main drivers behind the growing demand for food processing and packaging innovations in Asia, he said.
Tetra Pak is the world’s leading food processing and packaging solutions company. The Thailand operation is one of the companies within Cluster SAEA&O (South Asia, East Asia and Oceania)
Cluster SAEA&O was the largest growth contributor to Tetra Pak global revenues in 2016 and is expected to maintain in a growth position in the coming year as well, said Post. He sees more positive growth ahead in almost all of the cluster’s markets.
Besides continuing success in the usual growth markets in South Asia and Asean (particularly India, Vietnam, Thailand, Indonesia and Philippines) there is huge untapped potential in markets like Myanmar, Cambodia, Sri Lanka and Bangladesh, which are at early stages of processing and packaging evolution, he said.
There are challenges, though. For example, 2017 “has been a tough year for FMCG [fast-moving consumer goods] in Thailand. Many of our core categories, which are milk, soy, juice and tea showed no growth or even a slight decline. However, our packaging solution business still managed to grow slightly from business in new categories such as almond milk and fruit-flavoured still drinks and our technical services business,” Post said.
Tetra Pak is investing in the cap-and-closure factory in Rayong, adding additional capacity next year. The company also has a Rayong factory making strips and straws.
On the processing side of Tetra Pak’s business, Thailand is a key growth country within Asean. The government initiatives to grow the food innovation and agro-processing industries under Thailand 4.0 will give the company great opportunities to provide innovative solutions to those industries.
“Our unique offer of integrated processing and packaging solutions will ensure that Thailand can show robust growth for many years to come,” Post said.
“For packaging, we see that Thai consumers are increasingly demanding and looking for products that cater to their specific needs. Functionality and packaging design are increasingly important. For example, easy-to-open packages are very important to cater to Thailand’s growing senior population, while resealable packages providing convenience for the ‘on-the-go’ lifestyles are in high demand by the younger parts of the population. Our latest package innovations can satisfy those changing consumer needs. And you will see more products of our customers in these innovative packages coming to the market in the years to come.”
In addition to launching new packaging (for milk, soya and beverage categories), the company will introduce new products in new categories to Thailand.
“We see untapped potential for the industry to deploy our processing and packaging solutions in new categories like soup, syrup, edible oil and coffee,” he said.
Since their entry into Myanmar in 2013, the firm has worked with the government on a school milk program. So far, some 48,000 primary school students have been helped over the past four years, improving their lives and health, he said.
Last year, the company established an office in Yangon. Their first customer is expected to launch UHT (ultra-high temperature treatment) products beginning next year. With a young and growing population, and GDP growth of around 6-8 per cent, “Myanmar has great growth potential,” said Post.
At the moment, the country has few ready-to-drink dairy and juice products, presenting strong prospects for Tetra Pak.
“Our strategy is to serve our customers in Myanmar with integrated processing and packaging solutions to bring nutritious products such as soya, dairy and juice to the Myanmar people,” he said.
The company is also investigating opportunities in Laos.
Cambodia presents more immediate potential. Several Thailand companies who are Tetra Pak customers have already established export businesses to penetrate the Cambodia market. Angkor milk was the first to set up UHT milk product in Cambodia in late 2016, and Tetra Pak sees more players in the years to come.
