Eastern health promise: Most Thai consumers are open to healthier product reformulation, says survey

20 Jun 2019 --- Almost all Thai consumers (99 percent) are interested in improving their diets and a majority (82 percent) are happy for products to be reformulated, provided that taste is not compromised. This is according to a new report by Food Industry Asia (FIA) and research firm IGD. The first of its kind in Thailand, the report titled “Healthier Product Reformulation in Thailand” surveyed both consumers and food and beverage businesses to better understand industry efforts on delivering improved nutrition through reformulation, as well as consumer behaviors and perceptions of products that have been tweaked to become healthier.

Thailand is facing a double burden of malnutrition, leading to a rise in obesity and non-communicable diseases (NCDs) such as diabetes and heart diseases, now the top cause of death among Thais. In light of this, the Thai government and food industry have been actively working to improve the health of its population with efforts ranging from the clear display of nutrition information to physical activity action plans. However, the report also highlighted that reformulation can provide significant support in this area without relying on the change of consumer behavior.

The Thai government has introduced a number of initiatives to address the country’s double burden of malnutrition, including fortification programs and physical activity action plans. In 2017, it introduced a six-year phased sugar tax and after the fourth year (2021), tax on drinks that still contain more than 6g/100ml of sugar will be doubled.

Source: Healthier Product Reformulation in Thailand (IGD research)“The implementation of a sugar tax has encouraged manufacturers to reformulate their drinks so that less sugar is used, and the phased approach adopted by the Thai government has given the industry sufficient time to gradually make changes to their products,” Steven Bartholomeusz, Policy Director at Food Industry Asia (FIA), tells NutritionInsight. However, more can be done from the government’s end to provide greater support to the industry. “82 percent of companies we spoke to said that fiscal incentives offered by the government would encourage research and development activities for new product development and reformulation,” he adds.

Reformulation priorities have shifted in the last five years, Bartholomeusz points out. Previously, the removal of trans fats and reduction of calories were the main priorities for food companies. “While work continues in these areas, the focus is now skewed towards salt and cholesterol reduction, removal of artificial colors/flavors/preservatives followed by the addition of fiber, vitamins and minerals,” he explains.

Thai food companies have taken great strides in their reformulation journey in recent years and are providing strong support to the national health agenda, the report reveals. “88 percent of companies surveyed have embarked on reformulation to improve the nutritional value of their products and five percent have already completed their plans, while six percent are planning to get started,” says Bartholomeusz.

Through product innovation and reformulation efforts, the industry has been able to reduce the fat, salt, sugar and caloric content of products while adding positive nutrients such as vitamins, minerals and fiber.

“Thai food companies have been supporting the national health agenda through greater product innovation – 88 percent of companies surveyed have embarked on reformulation to improve the nutritional value of their products and five percent have already completed their plans, thus bringing about positive changes to the landscape in Thailand,” says Matthew Kovac, Executive Director at the FIA.

The industry’s efforts are in sync with consumers’ perception of and receptiveness towards reformulated products as eight in 10 agree that companies should be actively working on this. However, consumers remain unwilling to compromise on taste for health benefits, with 82 percent of respondents indicating that they are willing to accept reformulated products if companies can retain the existing flavor profile.

Source: Healthier Product Reformulation in Thailand (IGD research) As a result of the increased demand for healthier products, there is strong commercial incentive for companies to invest in reformulation. However, the report also found that more can be done in conjunction with the government as 82 percent of companies felt that greater fiscal incentives would help to encourage R&D activities.

“In order for us to accelerate the industry’s efforts, multi-stakeholder collaborations will be crucial in driving greater R&D activities for new product development and reformulation,” Kovac adds.

The report also found that:
· Consumers are paying greater attention to the quality and taste of products: 94 percent of respondents indicated that the quality of products was important when selecting food and beverages, while 80 percent felt that taste was crucial. The clear display of nutritional information on packaging (83 percent) was also featured as one of the top three drivers of product choice.
· The industry’s reformulation agenda has shifted: While food and beverage companies previously focused on the removal of trans-fats and reduction of calories, current efforts are now geared toward salt and cholesterol reduction, removal of artificial colors/flavors/preservatives followed by the addition of fiber, vitamins and minerals.
· Maintaining product taste was identified as the top reformulation challenge: While the challenges for different nutrients may vary, maintaining the taste profile of products and budget limitations emerged as the top concerns for businesses. Consumer acceptability was also identified as a key challenge for the industry.

“Consumers today have become more health conscious and are actively seeking out different ways to improve their diets,” says Bartholomeusz. “This includes increasing the intake of key nutrients and reducing consumption of harmful ingredients, which has in turn spurred reformulation efforts as companies work on various solutions to deliver enhanced products.” Additionally, the research found that almost all consumers in Thailand (97 percent) look at the nutrition information listed on food labels and more than three quarters feel that the addition or removal of ingredients to make the product healthier are critical when they choose products.

An actively promoted health strategy has prevailed in Thailand rather than mere stealth reformulation, Bartholomeusz notes. Due to the shift in consumer purchasing behavior, food companies no longer have to adopt stealth reduction strategies for fear that product reformulation would affect sales. Besides, from a marketing standpoint, it would be relevant to promote the changes made to a product, to raise awareness among consumers. “As a result, an increasing number of companies are now actively promoting the nutritional aspects of their reformulated products to cater to the growing demand for healthier food,” he adds.

So are there any lessons to be learned from the Thai product reformulation experience for other Asian markets or globally? Bartholomeusz believes that food companies in Thailand recognize the role they play in driving consumer choice and have been making significant progress in their reformulation journey to develop healthier products for the benefit of consumers. There is also a strong commercial incentive for them to reformulate their products in order to meet changing consumer demands.

In addition to the Thai market, past FIA research on the reformulation landscape in Singapore and Malaysia has similarly shown that a majority of companies have begun developing healthier food and beverage options by innovating and reformulating. However, taste remains a key consideration for consumers when selecting healthier options and companies that are able to improve the nutritional quality of products while maintaining existing flavor profiles will likely be well received by the public. 

“Moving forward, we believe that a more coordinated multi-stakeholder approach will be crucial to assess the effectiveness of current strategies and provide sound recommendations on how the industry and government can work together to enhance efforts and address key challenges,” Bartholomeusz concludes.

 By Robin Wyers