Japan’s Marubeni Corporation has acquired a minor stake and become a strategic partner of AIG Asia Ingredients Corporation, a leading manufacturer of food ingredients and packaged food products in Vietnam.
In a Monday announcement, Marubeni said the deal was done through its wholly-owned Singapore-based subsidiary Marubeni Growth Capital Asia Pte. Ltd. (MGCA).
The investment is MGCA’s second investment in the food and beverage sector and part of efforts to top the growing market in Southeast Asia and the U.S.
The first investment has been made in a cooperation pact with Tim Hortons®, a leading coffee chain from Canada, to distribute the firm’s products to three countries in Southeast Asia.
The food sector in Southeast Asia has witnessed significant growth, driven by economic development, population growth, urbanization, and the expansion of the middle class.
Notably, Vietnam is one of the fastest growing markets with an annual growth rate of approximately 8%, supported by the country’s emerging economy, which is projected to become the second largest in Southeast Asia by 2036, a Marubeni website report said.
It said that busier lifestyles and growing health consciousness have increased demand for convenient and healthier foods, “which has led to a need for more diverse, globally-sourced, and sophisticated base inputs, organic ingredients, and nutritional additives.”
The Japanese giant also noted the Vietnamese company’s strengths, including extensive manufacturing facilities and an in-house laboratory for product development.
This can help formulate food ingredient solutions tailored to clients’ needs and to extend its capabilities beyond distribution, it added.
Vietnam’s food & beverage market could grow 18.26% from $25.97 billion in 2022 to $30.71 billion in 2023, according to a report by iPOS.vn, a provider of restaurant management solutions. The report attributed the market recovery to the country’s post-Covid-19 reopening and stimulation package, which motivated people to spend more.