Soy products leverage innovation for sales success in

Asia Pacific
Article|18 Dec 2008
The desire to lead holistic lifestyles and an increasing array of palatable offerings from soy manufacturers has helped the market for
soy-based products sustain its upward momentum. Euromonitor International's latest research shows that value sales of soy-based
products in Asia have grown by over 32% in 2004-08, registering sales of close to US$12 billion in 2008. Euromonitor
International looks at the main drivers of soy-based products in Asia and casts the spotlight on the future direction of the market.
Continuing popularity as a staple food and drink
Asian consumers have always been partial to the humble soy bean. Packed with proteins and essential amino acids that are the
building blocks of muscles, soy finds a myriad of uses in Asian food and drinks. In this article, soy-based products comprise of
soy-based sauces, soybean oil, soy milk, soy drinks, soy-based yoghurts, soy-based special baby milk formula and soy-based
desserts. For a break-up of the retail value sales of soy-based products in 2008, refer to Chart 1.
The use of soy-based sauces is the most common application of the bean in Asia, accounting for nearly 53% of the value sales of
soy-based products in Asia in 2008. The Chinese like to use soy as flavouring for their food and douchi, which is made of
fermented soy beans, is as common in Chinese households as parsley is in Mediterranean households. Similarly, Japanese like to
use miso, natto and edamame which are nothing but different forms of soy-based products. In fact, China and Japan together
account for over 88.5% of the value sales of soy-based sauces in Asia in 2008.
Soy bean is also commonly consumed as an alternative to dairy products, catering not just to the lactose-intolerant population in
Asia but also to those who want to imbibe the wealth of benefits inherent in soy. Asia is the largest market for soy-based dairy
alternative products, accounting for 33% of the global market in retail value terms in 2008. Of the soy-based dairy alternatives in
Asia, soy beverages are the single largest category which achieved retail value sales of US$2.2 billion in 2008 and clocked a
growth of 9% over 2007. Soy-based yoghurts, soy-based special baby milk formula and soy-based desserts account for the
balance of soy-based products, with 2008 value sales of US$24 million, US$20 million and US$16 million, respectively. These
categories are rather niche in Asia mainly due to lack of brands in the retail arena and competition from other palatable dairy
alternatives which are readily available.
The global success of soy-based dairy alternatives is down to several health and wellness-based drivers. First of all, its many
alleged health benefits have positively influenced people's perception of soy. Regulatory bodies have contributed to this. For
example, in 1999, the USA's FDA approved a health claim linking soy consumption with lowering cholesterol levels, officially
endorsing soy's heart health credentials. Japan's Ministry of Health, Labor and Welfare issued a report in 2003 recommending the
daily consumption of 100g of soy beans for health reasons, and the ministry has approved health claims for soy protein and
isoflavones with regards to cholesterol lowering and bone health benefits.
There are many compelling studies, which suggest that a high intake of soy may decrease the incidence of hormonally-linked
breast and prostate cancers. In addition, soy isoflavones have been touted to alleviate menopausal symptoms such as hot flashes
and prevent osteoporosis. All these messages have served to elevate soy's status as the perfect health food, exerting a particular
appeal on health conscious, mature women. Even recent reports on the harmful effects of soy, linking the consumption of soy-
based products to lower fertility in the US, have not deterred Asian consumers from hungering after their favourite bean.
Page 1 of 4
Flavour innovations help soy-based dairy alternatives grow from strength to strength
A spurt of flavour innovations, especially those with a liberal dose of functional benefits have helped soy beverages attract new
consumers and offer fresh reasons to loyal consumers for drinking more of their favourite beverage. For instance, F&N Foods
launched Nutrisoy Omega range of soy milk in 2006 and developed its functional soy range further by launching Nutrisoy Hi
Calcium Red Bean soy milk in early 2007 in Singapore. While the former was introduced by the company as a fortified range of
soy milk, the latter positions itself on the twin benefits of soy and red bean, a commonly used product in Traditional Chinese
Medicine, as red bean is believed to reduce water retention due to its high fibre content.
Along similar lines, Marigold unveiled pomegranate flavoured soy milk in Singapore, riding on the health benefits of soy milk and
the antioxidant rich pomegranate fruit. Elsewhere in Thailand, soy milk manufacturers have launched soy beverages which combine
the goodness of soy with corn, as in Vitamilk soy milk plus corn milk as well as soy milk with black sesame, which is known as a
beauty ingredient. In South Korea, Hanmi Whole Soymilk launched a soy drink with red ginseng in 2007 which rides on the
stress-fighting benefits of red ginseng and the wholesome benefits of soy.
Meanwhile, in Hong Kong manufacturers are promoting organic versions of soy, by launching products such as Soy Dream and
Green dot dot instant soy milk powder made from 100% organic soy beans. Besides being organic, both products are sugar-free,
thereby allowing health-conscious consumers to enjoy their beverages in a guilt-free manner. Even in non-traditional soy beverage
markets such as India, manufacturers such as Staeta and Godrej have expanded their flavour range to include exotic ones such as
saffron, cardamom and other dry fruits such as pista.
Consumer foodservice channel leads the way
Much of the innovations taking place in the retail arena trace their origin to the dynamic consumer foodservice channel. The
consumption of fresh soy products is rather high throughout Asia. As an example, Euromonitor International's industry sources
estimate that the sales of unpackaged fresh soy milk is 15 times larger than the sales of packaged soy milk in China. Taho is yet
another form of soy which is commonly sold by street side vendors in Philippines although foodservice outlets such as Uncle Finn's
Soya also offer the dessert in their numerous kiosks nowadays. Flavours such as chocolate, strawberry and pandan are commonly
used by vendors to attract consumers.
A step further, foodservice outlets such as Mr. Bean in Singapore offer various flavours of soy milk ranging from almond to celery
alongside beancurd, soya nut and soya ice cream. Gogo Beanz is yet another chained player in Singapore that dabbles in flavours
such as oreo cookies and aloe vera for soy milk. Soy ice cream is also popular in foodservice outlets in Asia, with Gelatomio in
Malaysia offering a range of sugar-free soy-based ice creams. Soy milk is also commonly offered as an alternative to milk even in
international cafs like Starbucks and soy lattes are the choice of drink for many consumers in Asia. Not to be outdone, soy-
based sauce manufacturers such as Heinz are churning out new recipes in collaboration with chefs in order to boost sales of their
retail products.
Soy finds new applications beyond conventional food and drinks
Owing to its popularity as a condiment in Asian cuisine, soy has also emerged as a popular flavour in sweet and savoury snacks. It
is also one of the leading flavours in instant noodles and soups in Asia. Besides, soy is at the forefront of new product launches in
snack bars in Japan and Taiwan, with soy-based snack bars such as Soyjoy being all the rage among office workers. Soy-based
snack bars appeal to Asian office workers as this consumer group often has irregular working hours and wants to snack healthy
during office hours to boost energy levels. The relevance of soy to packaged food manufacturers is at an all time high, with
researchers developing a recipe for palatable soy cheese in Vietnam, which is expected to hit the retail market in 2008. Besides,
new gourmet product launches in sweet and savoury snacks are also making use of extruded versions of soy to lend a healthier
image to their products.
The application of soy is now courting new industries as well, with the creation of nutraceutical drinks such as Lactasoy Light plus
Collagen in Thailand, which aids consumers in their quest for a glowing, youthful skin. Soy is also being used in cosmetics
products in place of petroleum due to its environmentally friendly nature. Further, a high content of phytoestrogens in soy which
Page 2 of 4
have anti-ageing benefits is helping the bean find acceptance as an ingredient in cleansers, soaps and hair care products. Japanese
cosmetics manufacturer, Hiina introduced a face-mask made from 100% soy milk, drawing inspiration from studies which show
that the hands of tofu packers in Japan were amongst one of the smoothest and softest due to their constant contact with soy. As
the face-mask is made from food and does not contain any additives, it has to be kept frozen throughout, attaching the product
with a hefty price tag of 6,000 for 5 masks. Heightened public interest in healthy living has also helped sustain the sales of
Japanese cosmetics firm, Tokiwa Pharmaceuticals' Sana brand from its soy-based Nameraka Honpo skincare line. In addition,
hot soy manicure treatments are the latest trend at spas in United States and are expected to be transferred over to Asia in the
short term.
Asia expected to be a key growth driver in the future
The soy growth story is set to continue in the future. The Asia Pacific region, which is already the largest market for soy, is not
even close to reaching its sales potential. In China, for example, per capita consumption (retail volume) of soy beverages is a
meagre 0.6 litres in 2008, compared to Hong Kong's 13.3 litres and Thailand's 3.6 litres. For added context, Japan, which is the
world's single biggest market for soy-based dairy alternatives with 2008 value sales of US$679 million, per capita retail volume of
soy beverages reached 1.4 litres in 2008, demonstrating that even this highly mature market may still offer plenty of growth
opportunity. Meanwhile, opportunities abound in India which has traditionally favoured dairy over soy but is increasingly sprouting
a niche consumer base for soy-based dairy alternatives, exemplified in the 16% retail value growth registered by the category in
2008.
While soy is increasingly expected to be used as an ingredient in various kinds of packaged foods and beverages, soy-based
sauces and soybean oil are expected to remain the bulk revenue churners for soy manufacturers. For instance, soy-based sauces
are expected to register attractive value growths in developing countries such as Thailand and Philippines at 61% and 48%,
respectively over 2008-13. The growth will be driven by increasing fortifications of soy-based sauces with minerals and soybean
oil blends incorporating various health benefits.

Page 3 of 4


G
G Euromonitor International 2013
Page 4 of 4