Malaysian Food Products Good, Exporters Must Not Be Complacent

From Manik Mehta NEW YORK, July 4 (Bernama) -- While Malaysian food products are perceived as attractive and competitive, experts admonish Malaysian suppliers should not fall into the complacency trap. All seven Malaysian exhibitors, who showcased a wide range of food products at the show said they were quite pleased with their participation in the just-concluded three-day New York Fancy Food Show (NYFFS) 2015. However, Malaysian products increasingly face fierce competition not only from other Asian suppliers but also, particularly, from some of the member countries of ASEAN which are eyeing the huge US market. The Malaysian Trade Commissioner in New York Muhd Shahrulmiza Zakaria said Malaysia’s participation in the NYFFS was a great success. "This assessment is based on feedback from Malaysian exhibitors at the show. We had seven Malaysian exhibitors, all of whom managed to meet their prospective customers. "The sales generated from such meetings is estimated at about RM46 million which is expected to be realised within one year," he said. The trade commissioner said US consumers were becoming increasingly health-conscious; as a result, they preferred fat-free foods with less salt, sugar and fat. His office helped identify suitable US business partners for Malaysian suppliers of coconut-based products such as coconut chips which could be included in the granola cereal products manufactured by US companies. Given the proliferating health awareness among consumers, Malaysian suppliers were avoiding the use of monosodium glutamate and trans-fats, the latter being a banned ingredient in food products. He also referred to the innovative presentation of products by some Malaysian exhibitors. Perfect Food Sdn Bhd Director Martin Ang said his marketing strategy was adapted to the changing tastes of US consumers whose greater health consciousness is making them turn their backs on traditional fat-rich, low-fibre food products. Consequently, Perfect Food had emphatically showcased oatmeal-based products and could thus attract a large turnout at its booth at the show. After cracking open the ethnic market with its products, Malaysia now wants to enter the mainstream American market. But, as the US market becomes attractive, driven by strong growth and consumer demand, competition is also growing from other countries which want a larger slice of the pie. Specialty food sales in the US in 2014 exceeded US$100 billion for the first time, with retail and foodservice sales reaching a record US$109 billion. Retail sales of specialty food sales grew 19 per cent from 2012 to 2014 versus a tepid two per cent increase for all food. The specialty food industry boasts 15 segments that exceeded US$1 billion each in sales, including cheese, coffee, meat, poultry and seafood; chips, pretzels and snacks; candy and yogurt. These are findings in the latest report called The State of the Specialty Food Industry 2015 by the Specialty Food Association. Ron Tanner, Vice-President of US Specialty Food Association said consumers were looking for new tastes, foods with fewer and cleaner ingredients, health attributes and products that were made by companies with values they care about. "All of these define specialty food and Malaysian exhibitors would be well-advised to note this," he added. -- BERNAMA