The Chinese government has announced updated regulations for organic product certification, which will come into effect on January 1, 2026. The new rules include stricter standards and procedures for certification agencies, as well as post-certification supervision and management. This move is expected to have an impact on the food and beverage industry, particularly in the Asia-Pacific (APAC) region.
Meanwhile, Nestle’s new CEO, Philipp Navratil, has made Real Internal Growth (RIG) his top priority. RIG measures growth generated by volume and product mix/innovation, rather than pricing-led growth. This shift in focus is expected to impact Nestle’s operations in APAC, where the company has a significant presence.
In APAC, there is a growing interest in functional ingredients, with four markets standing out: China, Malaysia, India, and South Korea. These countries have above-average interest in functional ingredients, making them key markets for companies that produce these ingredients. Healthy ageing is also a major focus in Asia, where many countries are experiencing rapidly ageing populations.
As a result, industry players are looking to innovate and develop new products that cater to the diverse demographic landscape of the region. One ingredient that is gaining popularity in APAC is ginseng, which is being used in modern formats such as sodas to appeal to younger generations. Brands such as China’s Herbal Player are capitalizing on this trend, capturing traditional ginseng benefits in convenient and functional products.
The combination of these factors – stricter regulations, a focus on RIG, and growing interest in functional ingredients – is expected to shape the food and beverage industry in APAC in the coming years. Companies that can innovate and adapt to these trends are likely to thrive in the region, while those that fail to do so may struggle to keep up. As the region continues to evolve and grow, it will be interesting to see how companies like Nestle and Herbal Player navigate these changes and capitalize on the opportunities that arise.