There has been a fundamental and significant shift in global business moves, with Asia now bypassing EU and US markets to work directly with Latin America and this is a trend set to stay, according to Mintel analyst.
FoodNavigator-Asia spoke exclusively to Lynn Dornblaser, director of Innovation and Insight at Mintel, who said that there has been a substantial global trade shift with Asia and Latin America now working directly with one another, completely bypassing European and US markets.
There are many advantages for Asia dealing directly with Latin America she said, including access to raw materials and favourable pricing.
“We see that shift being really extraordinary and substantial and it isn’t a shift that’s temporary. This is something that’s going to be continuing that signals a fundamental change with how countries do business with one another,” she said.
There are similarities in terms of consumer structure between Latin America and Asia, with very wealthy and poor segments of the population, so Asia is familiar with how the country operates. EU and US companies need to re-think how and where they import from and export to.
This trade between Asia and Latin America is going both ways, she said, and activities are in end products, including snacks, noodles and candies but also in ingredients and raw materials.