MALAYSIA Green House sees growing demand for bakery ingredients during pandemic January 2021
Green House, a major bakery ingredients supplier specialising in a wide portfolio of both mainstream and fusion east-meets-west emulcos, sees growing demand for bakery products as well as ingredients as Malaysians spend more time at home due to the ongoing COVID-19 pandemic, and this trend is expected to persist in the next couple of years.
This similar pattern is happening on a global scale as consumers buy more bakery products to be eaten from home or purchase bakery ingredients for home baking and preparations. 2020 marks a new shift in consumer behaviours in Malaysia and elsewhere, as they cut down on eating at BARESCA establishments, indirectly leading to a jump in online delivery services as well as higher demand for bakery products and ingredients from grocery retailers.
AFBR has the opportunity to interview Michael Yap, Regional Sales Director of Green House Ingredient Sdn Bhd to get first hand information on the existing state of the bakery industry in Malaysia and how does Green House adapt to the drastic changes in consumer shopping behaviours amidst the challenging environment. The following are excerpts from the interview:
Do you see any major differences in consumption of baking products in Malaysia and other parts of Southeast Asia during this pandemic period ?
As a major bakery ingredients supplier, we saw orders for local bakery ingredients (BIS) increasing significantly in the past few months. We attributed this growth to the higher frequencies of baking at home, as people are more concerned over the spread of COVID-19, and prefer to stay at home. Some have resorted to earn additional income through baking from home particularly during the current economic difficulties.
We estimated the overall BIS category to grow by 35% from May to December 2020 compared to the same period a year ago. On the other hand, there is a slight drop in sales to the BARESCA segment when compared to figures before the pandemic.
Most consumers are now looking for ‘value-addition’ in bakery products in terms of greater health benefits, better product freshness and hygiene, and more innovative flavors as they have more time to enjoy the product from home.
How could Green House support the consumption for baking products in this region?
As a medium-sized supplier of bakery ingredients, we could do our part to this thriving baking movement by ensuring our products are easily accessible. Green House emulcos are now available in most of the online platforms such as Lazada and Shopee.
With the rise in home baking, Green House has launched a convenient and more affordable smaller 30g consumer pack targeted for home bakers which are now available in both online and offline at the retail stores.
Green House has also introduced a new product line: DIY baking kits which enable beginners to bake at home using fresh ingredients while at the same time helping them to reduce unnecessary wastage.
In addition, Green House products are also accompanied with QR codes found on top of the container covers which provide buyers with new baking recipes.
By rapidly adapting to individual consumer needs and utilising latest technological innovations, Green House has indirectly supported home baking during this pandemic.
Baking is made simple through Green House !
As part of its CSR activity, Green House is currently offering business opportunities for individuals and entrepreneurs in the baking industry. Can you elaborate more on this ?
With the current difficult economic conditions, many individuals are looking for opportunities to sustain their livelihood. Green House offers for sale more than 500 varieties of SKU solutions in the bakery ingredients category and this can be easily accessed through our social media sites like Green House facebook and instagram. One can purchase any volume or variant online with no volume limitations, as such it opens up opportunities for individuals to explore into home baking business or operating their own bakery supply business on a small scale.
Presently, there is a growing number of home bakers as they realise the benefit of baking from home. As this trend is expected to continue, the future looks brighter than ever for the bakery ingredients category.
What do you foresee the future of baking during this pandemic ?
We all know that the pandemic has negative consequences on our country’s economy, nevertheless there is a silver lining to this. Most of our existing and potential consumers have more time at home to prepare their own food or to bake.
In addition, as the pandemic is not going to recede anytime soon, modern sophisticated consumers are becoming more selective on their baking ingredients with some looking at ‘plant-based’ alternatives instead of dairy or animal-derived ingredients. The health, immunity and functional benefits found in food (baking) products are also now given the extra scrutiny as consumers have more time to look through the product labels.
There is also a growing movement in favor of natural ingredients as against artificial preservatives in baking products and ingredients. In response to this trend, Green House will be offering a variety of naturally-derived flavors for example pandan, vanilla and black sesame extracts to meet the current needs of consumers.
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