In the latest 2nd quarter 2018 BMI food and drink industry risk/reward index (RRI) released in January 2018, Asia managed to retain its 2nd place position globally; however South Korea has overtaken China to lead the index in terms of ranking, pushing China to 2nd place while Malaysia slipped to 3rd place.
Meanwhile, developed country Japan has slipped further from 3rd to 5th position while Australia saw its ranking move up from 5th to 4th when comparing with BMI's 3rd quarter 2017 report. Greatest winner is South Korea which saw its position jumped from 4th to 1st position in the chart. In the earlier ranking, Korea was ranked 4th due to political tension affecting the Korean peninsula in late 2017.
Emerging economies like Laos, Cambodia and Myanmar are ranked at the bottom in terms of RRI, however BMI is quick to mention that for investors who are seeking strongest growth outlook and who have the means to navigate the variety of risks, these countries offer a good investment choice. Meanwhile developed parts of Asia like South Korea, Japan, China and Malaysia offer the best risk and reward balance for an investor.
In terms of region, Asia retains its 2nd position globally with a score of 60.0, slightly behind North America & Western Europe region (NAWE) which recorded 63.2 points out of 100. Asia is considerably ahead of 3rd place Central & Eastern Europe (47.9). Seven countries in Asia are ranked in the top 15 globally, thereby signifying the growing importance of this region for investments in the food and beverage industry.
Please see the chart attached (Table 1.0) for details on Q2 BMI Risk/Reward Index.