Cargill unveils major Indonesian blending facilities expansion, targets Asian market growth
Pic: Cargill
A major strategic manufacturing move has been made by Cargill, as it creates a new blending facility at its core Asian site of Pandaan, East Java, in Indonesia, in response to continued growth within sugar confectionery categories, writes Neill Barston.
According to the company, which will be represented at our World Confectionery Conference on 12 September in Brussels investment in its expanded facilities stands as a first for the business within the region, and strengthens its position amid notable market buoyancy within the category.
While global markets are experiencing pressure in terms of ingredient inflation issues and consumer caution amid ongoing economic challenges that have affected shoppers’ levels of disposable income, the company believed that the underlying trends were resilient.
Francesca Kleemans, Managing Director, Food Solutions Southeast Asia, Cargill, explained that the investment in extended facilities was one that would make a difference to its operations.
She said: “The sugar confectionery industry in Asia Pacific is projected to grow at 5% CAGR from 2024 to 2028. Meanwhile, Cargill’s 2024 TrendTrackerTM proprietary research revealed that 40% of APAC consumers are prioritizing texture in their food & beverage choices. When it comes to sugar confectionery products, Asian consumers show a preference for a diversity of textures – from hard candies and chewy gummies to popping and fizzy sweets.”
“Serving the Asia Pacific region, with Indonesia as one of the key markets, our new state-of-art blending facility allows Cargill to develop “Asia for Asia” specialty solutions, combining modified starches, sweeteners, pectin and carrageenan to help create exciting sugar confectionery treats with different textures for Asian consumers. Further bolstered by our insight-led innovation and formulation expertise, we are able to support our customers in meeting unique market needs and diverse consumer demands across Asia, such as for nature-derived ingredients and halal requirements,” she added.
As the company added, it presently operates eight starches, sweeteners and texturiser plants in Indonesia, India and China, and four Asian food innovation centres in Singapore, Shanghai, Beijing and Gurgaon.
This latest investment in a blending facility in Indonesia further signals Cargill’s desire to create relevant innovations to meet market and consumer demands in Asia, particularly in the sugar confectionery space, with its enhanced facilities enabling customers to crucially shorten their supply chains.
- Registration for our World Confectionery Conference in Brussels, Belgium is continuing, with a host of industry keynotes including Ferrero, Tony’s Chocolonely, Caobisco, Mintel and FMCG Gurus. You can register your attendance at this year’s must-attend live show at the following direct link.
