By 2030, 65% of the global middle class will reside in Asia (1). Annual spend on food in Asia is expected to double from $4 trillion in 2020 to $8 trillion.
Asian consumers demand safe, high-quality food products with attributes that meet their desire for health, nutrition, social impact and sustainability…and they are willing to pay for it.
Food is often the largest component of the “basket of goods” purchased by the Asian consumer. As a category, several drivers influence food purchases. Aside from safety and convenience, consumers look to social impact and increasingly embrace technology in how products are developed and ultimately purchased. Consumers have never been more educated, savvy and demanding in their food purchases. We believe that investing in the Asian food industry offers a compelling return opportunity.
Proterra’s Food investment strategy targets growth equity and control investments across the food value chain in Asia ranging from production (particularly proteins), to processing and distribution. We place emphasis on investment prospects that are positioned for fast growing categories where supply chains and distribution channels are undergoing dynamic change.
Proterra looks to partner with highly capable entrepreneurs and management teams. We spend considerable effort in sharing and implementing best-in-class management practices, accelerating technology transfer and implementing high standards for environment, social and governance (ESG) impact.
Proterra has a robust ESG framework that is applied to our investments during the course of our ownership. Proterra is constantly enhancing our practices to ensure a positive impact for our companies, it’s employees, consumers and communities.
THEMES
- Premiumization – products and positionings that are responsive to emerging consumer preferences, ethics, social awareness, and personal impact.
- Sustainable Foods – alternative proteins, plant-based products—foods whose production is friendly to the environment and which use sustainable agricultural technology practices (e.g., controlled environment production).
- Health & Nutrition.
- Convenience – packaged, ready-to-eat, foodservice, online availability.
- Geographic focus – Pan-Asia.
CRITERIA
- Food industry subsectors with potential for hyper-growth.
- Highly capable management teams ready for continuous improvement.
- Alignment of interests amongst key stakeholders (investors, management, employees, government, community).
- Appropriate control over exit terms.
- Investments where risk mitigation is possible through industry and regional contacts/presence.
- Companies already practicing or ready to adopt Proterra’s standards on ESG, and commit to ongoing improvements.
SOURCES
- By 2030, Asia will account for 65% of global middle class.
- Brookings, “The unprecedented expansion of the global middle class” (Feb 2017), accessible at: https://www.brookings.edu/wp-content/uploads/2017/02/global_20170228_global-middle-class.pdf [brookings.edu]
- Asia’s urban population overtook its rural population for the first time in 2019.
- United Nations ESCAP, “The future of Asian & Pacific cities” (2019), accessible at: https://www.unescap.org/sites/default/files/publications/Future%20of%20AP%20Cities%20Report%202019_0.pdf [unescap.org]
- More than a quarter of Asia’s population is comprised of millennials.
- United Nations, World Population Prospects.