This is a summary of key insights gleaned from attending the Hong Kong Fruit Logistica in early September 2011. The focus of this convention was on the status and development changes within the fresh fruit and vegetable industry within Asia, particularly China and SE Asia.

The focus of this Asia Fruit Logistica event was on ‘trading’ with the volume growth of the China market clearly evident. The Berlin Fruit Logistica in February 2011 had similar trading inquiries, but also had a stronger focus on innovation and new products.  

We hope the insights are of interest and would welcome the chance to discuss their commercial implications in more detail. If you are interest to know more about the issues below, please contact us.

 The insights relate to the following:

• The increasing size of the middle class as the consumer-driven growth engine for the region;
• While familiar global retail brands are evident, the best growth opportunities may lie elsewhere;
• The pace of the shift in food sales away from traditional wet markets to organised retail (supermarkets);
• the eating quality of fruit and vegetable products provided by supermarkets is set by the standard delivered by the wet markets; 
• the role of supplier brands and their acceptance by south east Asian shoppers provides scope for differentiation;
• The high profile given to food safety by consumers, elevated by recent incidents, not the least of which involved the problems with baby food;
• The merits in being informed on market structures, retail formats and supply chain arrangements to guide early market-entry. Export marketers would do well to understand the forecast growth of these markets and the volumes that could be required in 3-5 years;
• The airfreight export capacity based on about 400 flights a week from Australia, supported by investments in food handling infrastructure;
• The value and extend of eating out should not be ignored as many younger consumers are enjoying higher discretionary incomes, and are eating out more often;
• New and interesting products on offer at the Hong Kong based Logistica were limited and included smaller retail packages, the use of top tier brands and products in several forms.