Tetra Pak sees strong growth potential beyond daily sector

The Sun

6 hours ago

HO CHI MINH CITY: Tetra Pak, a Swedish-Swiss multinational food processing and packaging solutions company, sees strong growth potential in Malaysia and across Asia-Pacific beyond the milk category, said its president and CEO Adolfo Orive.
He highlighted growing consumer demand for a variety of beverages such as plant-based, fruit juices, coffee, iced tea, protein-enriched, oatmeal and energy products, signalling a broader shift in the Malaysian and regional beverage markets.
Orive said that globally, the demand for protein is on the rise, and Malaysia is no exception, protein is becoming increasingly important to consumers.
The whole of Asia-Pacific is a great source of those new beverage categories, he said.
'Our role is to support a wide range of products tailored to different age groups, lifestyles and consumption.
'We commit to making food safe and available everywhere, and that is what we have been doing for more than 75 years,' he told Bernama.
Additionally, Orive stressed the importance of sustainable packaging solutions that have a positive impact on the environment – currently, about 70% of Tetra Pak's packaging materials come from renewable sources, contributing to lower carbon dioxide emissions.
'We believe our packaging is already a strong and positive option in terms of sustainability, and we are committed to going further.
'Our goal is to keep investing in innovations that make our packaging even more sustainable for society as a whole,' he said.
Tetra Pak has invested about €500 million (RM2.49 billion) in research and development over the past five years, underscoring its commitment to innovation, sustainability and meeting the evolving needs of the global food and beverage industry.
On Thursday, Tetra Pak announced the expansion of its facility in Binh Duong, Vietnam, with the launch of Phase 2, following an additional investment of €97 million.
This follows the inauguration of Phase 1 in 2019, as the company aims to better serve the growing demands of Vietnam and the broader Asia-Pacific markets.
Serving as a regional production hub, Tetra Pak Binh Duong supplies packaging solutions to Vietnam and several key Asia-Pacific markets, including Thailand, Malaysia, Indonesia, Singapore, the Philippines, Australia and New Zealand.
The production capacity at Tetra Pak's Binh Duong facility has reached 30 billion packs annually.
Currently, Tetra Pak operates an office in Malaysia, which primarily serves all consumers and customers in the country.
Among the notable companies using Tetra Pak's packaging in Malaysia are Fraser & Neave Holdings Bhd, Farm Fresh Bhd, and Nestle.
Asia-Pacific remains one of the world's most dynamic food and beverage markets, valued at US$667 billion (RM2.8 billion) in 2023 and projected to reach US$900 billion by 2028.
Meanwhile, Tetra Pak Malaysia, Singapore, Philippines and Indonesia managing director Michael Wu said the company views Malaysia as a stable and reliable market.
'We see Malaysia as a secure baseline, and each year we target around 2% to 3% value growth to stay ahead of inflation. At the same time, we see strong potential to drive more innovation here,' he said.
Wu noted that many of the products launched by customers in Malaysia have been in the market for years, and there is a clear opportunity to introduce new offerings, especially for younger and more diverse consumer segments.
'Malaysia is uniquely multiracial, with Malays, Chinese, Indians (and other ethnic groups), as well as a growing number of foreign tourists or residents. That diversity presents a valuable opportunity to innovate,' he explained.
Before its expansion, Tetra Pak's Binh Duong facility supplied only 60% of the packaging materials used in Malaysia. However, following the upgrade, over 95% of the packaging material for the Malaysian market is now produced at the Binh Duong site, he said.