The Knowledge to Decide

A boom in Halal tourism and a conscious effort to eat healthier has helped to lift Halal product revenues. The appeal of Halal products is broadening to some groups of non-Muslim consumers. Will the Halal market keep on expanding in the Gulf region? Saurabh Sharma, Country Director, India for Spire Research and Consulting, shared his insights in the Food & Beverage News magazine. The Gulf Cooperation Council (GCC), with its six-member country states, makes up a significant and rising share of the global Halal product market, which is estimated to reach USD1.9 trillion by 2021. The Halal market initially focused on food and beverages products but now rapid expansion is visible in cosmetics, pharmaceutical and personal care sectors. The drivers of growth in the Halal food market include the trend towards a protein-rich diet in countries seeing a rising middle-class, advances in food technology, Halal tourism and the emergence of new online marketplaces. Saurabh

The tongue is capable of discerning the taste of carbohydrates. Diet foods – containing artificial sweeteners but few carbs – are thus unsatisfying to many consumers. How can food manufacturers cash in on the ‘carbohydrate taste’? Tasting carbs Simple and complex carbohydrates, including sugars, are the body’s main source of energy. People tend to treat carbs as more of a necessity and “filler food” than a tasty treat. But a study conducted in 2014 suggests that the tongue senses the taste of carbohydrates in addition to the five conventional tastes (sweet, sour, salty, bitter and savoury). According to the study, when an individual consumes carbohydrates directly, there is a 30% increase in activity in the brain areas controlling movement and vision. Carbohydrates influence areas of the brain which are not affected by artificial sweeteners. The brain’s pleasure centers only light up when the tongue senses real carbohydrates instead of artificial sweeteners. Good news

One out of every three manufacturing jobs in Australia is in the food and grocery sector, which directly employs around 300,000 people. The food and beverage market in Australia is climbing greater heights, buoyed by a growing population with an appetite for good food. Jeffrey Bahar, Deputy Chief Executive Office of Spire Research and Consulting, highlighted the key opportunities in this sector during his presentation at the Sydney Franchise and Business Expo in August 2015. As the population of Australia is set to reach 23.5 million in 2014, the food and beverage industry looks upbeat. A major portion of the population is present in the cities, like Sydney, Melbourne, Brisbane and Perth. The weekly average household spending per person on restaurant meals in these cities is AUD32 –a ripe market opportunity. Bahar opined that food industry growth is directly proportional to the number of food outlets. With 58,602 commercial outlets and 15,954 institutionalized outlets recorde

Healthy eating has emerged as something of a luxury in emerging markets. In contrast, the cost of junk food continues to decrease; encouraging consumers to binge more. According to a recent study, the cost of fruits and vegetables rose by 91% in the last two decades. The cost of processed foods instead fell by a fifth in emerging markets such as Brazil, China, South Korea and Mexico from 1990 to 2012. Lower prices encourage consumers to adopt unhealthy eating habits. Hence, obesity has become the new face of poverty. Conditions such as blood sugar spikes, high cholesterol, high blood pressure as well as bloating are some of the health conditions that result from an unhealthy diet. Is the solution increased subsidies for fresh fruit and vegetables financed by a tax on junk food? https://www.spireresearch.com/newsroom/spirethoughts/healthy-eating-getting-more-expensive-junk-food-getting-cheaper/

Obesity is a growing threat to quality of life, healthcare systems and economies across Asia. Leon Perera, Chief Executive Officer of Spire Research and Consulting, shared his thoughts on the implications of rising obesity levels in Asia in China Daily – Asia Weekly. According to a study by Cornell University in 2012, the U.S. spent USD190 billion a year on obesity-related healthcare. An epidemic long thought to affect only the western world has gradually crept onto Asian shores. Traditional food products are now being replaced by processed  foods and fast foods  in many parts of Asia. Perera commented that obesity is strongly linked to ailments such as Type 2 diabetes and other chronic conditions. Obesity has also been linked to a rise in absenteeism and medical insurance costs. Though the impact of obesity on Asia’s healthcare expenditures is currently lower than it is in the U.S., it is on the rise. Urbanization has driven the consumption of sugary and fatty foods and