Agribusiness
China towards milk self-sufficiency
Our recent market analysis found that while consumption of milk per person in China is currently 33kg pa, much lower than Japan (68kg) and Korea (73kg) foreign exporters will not gain significantly from increased consumption.
We forecast that by 2024 China will close to being self-sufficient in basic milk production as there continues to be massive investment into the local dairy industry with the emergence of huge Chinese dairy corporations, in addition to foreign-owned dairy supply chain in countries such as Australia where China has been a large investor.
However, there will be opportunities for milk exporting countries such as Australia and New Zealand to supply premium products to the growing segment of Chinese consumers who are willing to pay more for "clean and green" higher quality and innovative products.
June 15
automotive
Vietnam's car sales poised to soar
Growth in car ownership in Vietnam has been relatively slow, largely due to the government putting in high cost restrictions on ownership, as the road infrastructure in main cities such as Hanoi and Ho Chi Minh have been unable to cope with increased traffic.
As a result, car ownership in 2019 was 28 per 1,000 people. However, a recent market analysis project of Vietnam’s automotive industry, involving market sizing and growth forecasting undertaken by APMI Partners has found that with the governments proposed reduction in the cost of car ownership through tax reductions, in addition to increasing demand, ownership will increase to 47 per 1,000 people by 2025.
June 9
Chemicals
Bitumen demand in Myanmar
Bitumen, the black petrochemical used for making roads is in high demand throughout Myanmar as the country seeks to modernize and the government has given a priority to road infrastructure.
Our market analysis has found that in 2020 there was a 16% increase in bitumen usage and by 2024 there will be a further 27% increase. With domestic production unable to meet demand, by 2024 around 55% of bitumen will be imported.
May 12
Clothing & FOOTWEAR
Asian youth less influenced by the west
Our annual research into youth markets across 9 countries in Asia found that fashion trends are increasingly influenced from within Asia and less from the west. Japan continues to have the largest influence, followed closely by South Korea.
Across all 9 countries the average amount spent on clothing and footwear increased by 7% over the last 12 months, with the highest increases in China 15%, Hong Kong 12% and Japan 8%.
June 1
CONSTRUCTION
China's residential construction downturn
Much of China's economic growth over the last 20 years has been due to massive construction activity across the country which accounts for around 25% of GDP. However, with increasing signs of significant over-supply, APMI Partners in-depth analysis of the residential construction found just how much it has slowed.
In 2022 residential construction decreased by 16% compared to 2021. This decline is expected to continue in 2023 by 9% compared to 2022. In terms of the oversupply of residential properties, our research found that by the end of 2021 there were 65.3 million apartments unoccupied throughout China and by the end of 2023 we forecast this to have reduced slightly to 64.8 million.
June 29
CONSUMER GOODS
Green products are increasingly sought
Environmentally friendly ‘green consumer goods’ such as dishwashing liquids, laundry detergents and household cleaning products are gaining popularity in many Asian countries.
A recent study found that a large and growing segment of consumers in Singapore, South Korea and Taiwan, having market shares of 16%-23% across thee countries, actively sought green products.
May 25
EDUCATION
Chinese international student decline
Our annual market analysis of higher education across the Asia Pacific has found that the COVID-19 pandemic will continue to have an impact on the number of international students in 2023, particulary those from China.
Interviewing 192 education agents across China, it was found that in 2023 there will be 71% of outbound Chinese international students compared to the pre-pandemic numbers of 2019.
There also appears to be a developing trend where an increasing number of potential Chinese international students are choosing not to pursue higher education overseas due to a growing belief that it is not as beneficial as it once was to career development, in addition to a growing belief that most of the traditional destination countries are not safe and are unwelcoming to Chinese students.
February 7
ELECTRONICS
Chinese and household electronics
Sales of household electronics continue to increase across all categories in China despite overall downturn in the domestic economy, with strong growth in second and third tier cities.
Aspirational items such as large screen TV's, digital cameras and air conditioners sales have increased by 7% over the last 12 months to April 2023.
We also found that 23% of Chinese consumers will pay on average, a 11% price premium for a foreign branded electronics product over an equivalent Chinese product, such as a TV, camera or smartphone.
However, there is increasing patriotism towards Chinese brands where 37% of consumers said they prefer to buy Chinese brands to support the economy and country.
May 22
ENERGY & RESOURCES
Australians will pay for renewable energy
A recent survey of 2,500 Australian households found that 11% would pay up to 10% more pa for their electricity if they knew that at least 25% was generated from renewable sources.
The survey also found that 31% of households actively undertake routine activities to save electricity costs and that women aged 40-50 are the most conscious towards saving money through reducing household electricity costs.
June 9
FINANCIAL SERVICES
CEO’s: Challenges for 1st Half of 2023
In our end of year survey of CEO's across the Asia Pacific region, we asked a series of questions about how the second half of 2022 was for their organization and what they believed the first half of 2023 would look like, in terms of general trends and developments, in addition to opportunities and challenges for their organization.
One question asked “What do you believe will be the largest challenge facing your organization in the first half of 2023?” The main response given was “Economic Downturn” which accounted for 24% of overall responses. This was followed by “Competitive Environment” (18%); “Inflation” (17%); “Supply Chains” (15%) and “COVID-19” (9%). “Other” responses made up the remaining 17%, where the most common were employee retention and labour shortages; bringing new products and services to market; responding to changes in the regulatory environment and adopting hybrid working.
Another series of questions sought to gauge the level of optimism for the first half of 2023, where CEO’s from the energy & resources, healthcare and agribusiness industries were the most optimistic. Conversely, those from the consumer goods, media & entertainment and retail industries were the most pessimistic.
The survey used a methodology where 1,519 CEO’s across 12 countries and all industry sectors throughout the Asia Pacific region, were interviewed between 1st - 15th December 2022.
December 22
FOOD & BEVERAGE
China's big appetite for fast food
Our annual research study of fast food in China has found that in 2022 the number of quick service (fast food) outlets increased by 4% despite COVID lockdowns, with growth in 2023 forecast to be 7%.
Much of this growth is occurring in second and third tier cities such as Wuhan and Yancheng driven by Chinese brands.
May 18
GOVERNMENT
ASEAN gaining from foreign investment
A recent survey of 129 multinationals based outside of ASEAN nations, found that 59% of them have strategies in place to take advantage of the investment attractiveness within ASEAN member countries.
Of most interest to 64% of these multinationals is the tariff reductions on most goods and services to between 0-5%.
April 26
HEALTHCARE
Thailand: Pregnancy & Booster Jabs
In recent months Thailand’s COVID-19 vaccination program has seen a reduction in the number of people receiving booster vaccinations, with increasing hesitancy developing, especially amongst younger to middle aged adults.
As part of a market research project investigating attitudes towards ongoing COVID-19 vaccination, specifically boosters, currently pregnant women were one of the population segments focussed on, investigating their attitudes towards booster vaccinations. It was found that 92% of the currently pregnant women had received both initial COVID-19 vaccinations and of these women, 43% had received the first booster vaccination.
However, only 12% of those who had not received the first booster vaccination, intend to have it before their baby is born. The main reasons given for not wishing to receive the first booster vaccination while pregnant were: belief that it may be harmful to their baby; advised not to have it by family or friends and a belief that it is not necessary.
The survey used a methodology where where a nationwide sample of 1,500 women who were in their 2nd or 3rd trimester.
May 21
INFORMATION TECHNOLOGY
Australia's shortage of IT professionals
Our analysis of the Australian IT industry has found that there is currently a shortage of 17,500 suitably qualified IT professionals throughout Australia.
Forecasting, we found that by late 2023 the shortage will increase to 22,000. The number of students studying IT at Australian universities is far below industry demand and it appears that the temporary skilled migrant visa scheme will continue to make up much of the shortfall.
June 2
LOGISTICS & TRANSPORTATION
Customers in Australia prefer Uber
A recent survey we undertook of 750 taxi and Uber customers in Australia's three largest cities Sydney, Melbourne and Brisbane found that the Uber is preferred for several reasons.
Firstly, cost, where Uber fares were 19% less than comparable taxi fares. Secondly, waiting times, where Uber drivers arrived on average 3 minutes quicker than taxi's. Thirdly, the overall experience including the cleanliness of the car and friendliness of the driver was reported better with Uber by 68% of customers.
June 23
MEDIA & ENTERTAINMENT
Streaming Video on Demand in Asia
Throughout many countries in Asia, Streaming Video on Demand (SVOD) services are growing quickly to cater to local consumers.
In a recent market analysis project, APMI Partners found there are 37 significant SVOD providers in South East Asia and 51 in North East Asia. Local content such Bollywood films in India and local soap operas in South Korea is the main subscription driver, followed by cost, where prices are as low as US$1.70 per month are affordable to large numbers. International services such as Netflix will find it difficult to gain significant market share in these countries without offering local content and drastically reducing prices for local consumers.
May 18
NOT FOR PROFIT
Indonesia tops the most corrupt country
For the third consecutive year, Indonesia has been found to be the most corrupt country in the Asia Pacific.
Our survey of individuals, businesses and organisations throughout 17 countries found that corruption has remained the same in Indonesia over the last 12 months despite government efforts to reduce it.
The largest decrease of 4%, was in Vietnam, followed by a 3% decrease in China. In terms of the least corrupt countries, New Zealand remains at the top for the second consecutive year, followed by Japan and then Singapore.
April 14
PROFESSIONAL SERVICES
Outsourcing experiencing rapid growth
The outsourcing of professional services, namely accounting, financial, legal and engineering from developed to developing countries is continuing to experience rapid growth throughout the Asia Pacific region.
In a recent study, we found that in 2020 outsourced accounting services in the Philippines grew by 14%, largely coming from Australia, Hong Kong and Singapore. In 2021 the growth rate had slowed due to the pandemic to 7% compared to 2020.
However, in 2023 high growth rates are expected to return, for example the outsourcing of engineering services to India is forecast to increase by 12% in 2023 compared to 2022.
June 6
PROPERTY & REAL ESTATE
Chinese money slows into Australia
The boom in the housing market of Australia's largest cities, Sydney, Melbourne and Brisbane, has been attributable mainly to a long period of record low interest rates and a supply shortage, in addition to significant investment by foreign buyers, principally from China.
However, the interest from Chinese buyers slowed considerably in the last 12 months, predominately due to the COVID-19 pandemic and lockdowns continuing in China.
A recent market analysis study has found that during the last 12 months, there has been a 39% decrease in Chinese investors buying new and off-the-plan properties compared to 2019 before the pandemic.
The main reasons found for the decline are the increasing difficulty for Chinese investors getting their money out of China and decreased personal wealth due to the property downturn within China.
May 17
RETAIL
Japan's premium dog food sales increase
Sales of premium dog food increased 9% in 2022 and is forecast to increase by 11% in 2023.
The main drivers are consumers becoming more aware of their dog's nutritional needs, concerns regarding the quality and nutrition of standard dog food and a larger number of premium brands being introduced into the market.
In terms of retail channels, 51% of premium dog food sales are through online retailers and this is expected to reach 57% by late 2023.
June 20
SPORT
Unmet demand for major sporting events
Attendances at major sporting events across Asia were increasing strongly prior to COVID-19 and our recent market analysis has found that there will be significant unmet demand in many countries over the next 5 years.
For example, in Bangkok and Kuala Lumpur, there is unmet monthly demand of 140,000 and 125,000 potential spectators for major sporting events such as international football matches.
June 13
telecommunications
Mobile Internet growth in Bangladesh
The mobile phone market in Bangladesh has experienced slowing growth over the last 12 months as a result of market penetration reaching 133 million users out of the population of 164.6 million.
However, our recent market sizing and growth forecasting of the market found that mobile Internet is quickly becoming the driver of current and future growth. With 63 million current mobile Internet users at present, we forecast this to increase to 90 million by the the end of 2023, with mobile Internet users on average spending 1.9 times more than mobile users who do not access the Internet.
April 6
trAVEL & TOURISM
Tourists want to go back to Bhutan
Bhutan, the small Kingdom in the Eastern Himalayas has always been a difficult destination to get to for tourists, both geographically and in lieu of the limits on the number of visas granted and other controls such as the need to travel as part of a planned, prepaid tour package.
For those who do make it to what is called the happiest country in the world, many want to return again.
Earlier this year we undertook 250 exit interviews amongst tourists who were departing the country after a holiday and found that 71% would like to return again. The survey also found that 77% believed it was the most unique country they had ever visited and 86% said it was the best holiday destination they had ever been to.
June 2