Jakarta. The US Dairy Export Council (USDEC) recently showcased the transformative potential of American dairy ingredients at the food and beverage event Fi Asia Indonesia 2024.

The USDEC is a non-profit and independent membership organization of American dairy farmers, processors, allies, and traders promoting US dairy solutions.

USDEC highlighted how high-quality ingredients such as dairy proteins, permeate, and milk powders elevate familiar food, snacks, and beverage offerings to cater to health-conscious Indonesian consumers' evolving taste preferences and lifestyles.

One example of refreshing yet nourishing new product concepts made with US dairy ingredients is Protein Pandan Coconut Granola Bar. The product is ideal for consumers with active lifestyles and mindful snackers who crave delicious yet light and nutritious snacks; it combines the distinctive flavors of pandan and coconut with the benefits of American dairy ingredients.

Another example is the Protein Meringue Gems, delicate treats inspired by Southeast Asia’s classic ice gem biscuit, made with U.S. whey protein isolate, offering adventurous indulgence seekers who desire an enjoyable snacking experience a fun, crunchy snack that melts in the mouth.

 “When we asked consumers across Southeast Asia whether they were willing to pay a little more for the products they usually purchased but with extra protein added, six in ten people said they were willing to pay more,” Anoo Pothen, the Director of Consumer Insights at USDEC SEA, was quoted as saying in a recent press statement

According to Pothen, the concept of protein-added products and other innovations make high-protein diets no longer exclusive to people who are doing fitness but become accessible to a much larger number of everyday people in their everyday choices.

USDEC market studies in Southeast Asia revealed that consumers in the region demand more from their food and beverage choices, with snacks being a key focus.

The research showed that 51 percent of urban Indonesian consumers purchase snacks more often than before and explore a broader range of snack varieties. Regarding consumption habits, surveyed Indonesian consumers stated they had about 12 different snack types in the past three months. Additionally, there is also favorable willingness among urban Indonesian consumers to consider healthier snacks with increased protein content (86 percent) and openness to pay a higher price for such products (73 percent); of these, where 50 percent stated they would not mind paying up to ten percent more for protein-added snacks. This suggests the opportunity to innovate Indonesia-friendly protein-boosted snacks is a promising, untapped business opportunity.

“US dairy ingredients stand out for their neutral flavor profiles, versatile functional properties and scientifically backed nutritional benefits. Dairy proteins offer a competitive edge, providing all the essential amino acids the body needs, unlike those from many plant-based protein sources. Their neutral flavor profile serves as the perfect canvas for manufacturers to innovate both sweet and savory formulations while enhancing protein quality and quantity," Martin Teo, Senior Director for Food Applications and Innovation at USDEC SEA, said.

Dalilah Ghazalay, Regional Director of Southeast Asia at USDEC SEA, said that U.S. dairy was unique because the US dairy industry had implemented technology that allowed it to offer a diverse product portfolio instead of just the basic, standard dairy ingredients. Ghazalay added that the US was not impacted by climate, so U.S. dairy is fed with good quality grains all year, assuring enough supply for Indonesia’s food and beverage industry.

According to USDEC, the US has 9 million cows, collectively producing over 100 million metric tons of milk. Milk production per cow exceeds 10,000 kilograms annually, and this leading efficiency makes for a comparatively small environmental footprint. Most US dairy farms are family-owned and operated. Southeast Asia was the second-largest market for U.S. dairy exports, with a total volume of 460,300 metric tons in 2023. Indonesia was Southeast Asia's second-largest export destination for U.S. dairy after the Philippines, with a total export volume of 121,700 metric tons last year.

As part of its commitment to the Southeast Asian market, USDEC launched the US Center for Dairy Excellence in Singapore in 2020. it is the first-of-its-kind learning and discovery destination for everything US dairy in Southeast Asia. It houses a demonstration kitchen, sensory lab, classroom training facilities, and conference rooms with video-streaming capabilities.

The US CDE serves as a gateway link connecting U.S. dairy suppliers with customers and partners in Southeast Asia. It also functions as an ideation and insights hub to deepen knowledge and create new opportunities with US dairy and a collaboration space for interactive training programs related to potential F&B applications of US dairy. No less important, it serves as a stage for developing winning F&B innovations that meet Southeast Asia's demands.

Teo claimed that USDEC often invited Indonesia’s SMEs to attend workshops at the US CDE. At the same time, their in-country team continued to engage various parties in this country, even start-ups and entrepreneurs.