The fresh-cut industry will command double-digit growth in Asian markets over the next few years thanks to increasing demand from Asia's schools, supermarkets, convenience stores and fast-food restaurants.
So said Eleanor Loh of shelf-life extension technology company Natureseal, speaking at the Asiafruit Congress in Hong Kong today (3 September).
Rising consumer demand in Asia for pre-cut fruit packs has been driven by food safety concerns, greater quality expectation and higher disposable income, she told delegates at this packed event.
“Consumers are prepared to pay more for do-it-for-me products,” she said. “In the 1990s, the only fresh-cut fruit available in Asia was cut melons, bagged salads, pineapple chunks and baby carrots. Today, Starbucks in Asia sells fresh-cut fruit salads.”
Historically fresh-cut has been a cottage industry in many Asian countries, Loh revealed. Now fresh-cut facilities in Asia are shifting to automation to meet surging demand.
Loh identifies further fresh-cut growth opportunities in Asian within the fast-food restaurant segment and public sector.
“Quick service restaurants, like McDonalds, are introducing healthier menus across Asian outlets, and US studies (Cornell University) have shown that whole apple sales have risen by over 70 per cent in schools that offered fresh-cut apples in their lunch programmes,” she said.
Fresh-cut growth opportunities are also ripe in tropical lines in Asian markets, and at retail level.
“Retailers are increasingly offering stores within a store, such as a prepared food section within their supermarket,” she said. “With their increased focus on food safety and quality, consumers like the packed, sealed and chilled convenient product fresh-cut offers.”
Yet fresh-cut business face many challenges in Asia, she cautioned. Namely, the quality of the material used, the security of the coldchain and a shortage of trained fresh-cut-facility personnel.
“Fruit handling and coldchain, both at logistics and store level is crucial: the product needs to be kept at 5 degrees centigrade and below,” Loh explained.
Added to that, fresh-cut is a new industry in Asia and adequately-trained people are just not there, she said.
“There is also the equipment, technology, and food safety and management know-how involved in the process,'said Loh. 'But despite these challenges, this industry will command double-digit growth in markets in Asia.”
