Arla Foods Ingredients, Brenntag Group expand partnership to boost nutrition in Southeast Asia

ASIA – Arla Foods Ingredients, a global supplier of dairy-derived ingredients, has expanded its distribution partnership with the Brenntag Group to expand into three of SouthEast Asia’s largest food and nutrition markets.

The continued partnership will enable Brenntag to distribute Arla Foods Ingredients’ high-quality whey and dairy protein ingredients across Vietnam, Thailand, and Indonesia.

According to Arla, the ingredients will support and meet the demand of key sectors such as health foods, infant nutrition, and sports nutrition, along with functional solutions for dairy and bakery products.

The new agreement follows the 2023 extended distribution agreement between Arla Foods Ingredients and Zhongbai Xingye Food Technology (Beijing) Co., Ltd, a Brenntag Group company, to serve the Chinese market.

Kenneth Keh, Regional President, Nutrition Asia Pacific, Brenntag Specialities, said: “Our partnership with Arla Foods Ingredients in China has been extremely successful, and we are excited to expand into Southeast Asia. Together, we are confident that we can meet the demand for innovative, high-quality nutrition products in the growing markets of Indonesia, Thailand and Vietnam.”

Southeast Asia offers significant market potential. Research by the USA Dairy Export Council (USDEC) shows that rising prosperity in the region is driving demand for food and beverage products containing high-quality protein, while this demand is currently not being fully met. 

Alexander Leufgen, Regional Director for Asia-Pacific at Arla Foods Ingredients, stated that there is a rising demand for high-quality whey and dairy ingredients across Southeast Asia, particularly in key sectors such as sports nutrition and functional foods.

“Our aim is to improve and expand our product offerings to manufacturers in the region. By building on our existing partnership with Brenntag, we will be able to better tailor our products and services to meet their needs,” he said.

The USA Dairy Export Council (USDEC) examined “The Big Six” Southeast Asian countries of Singapore, Vietnam, Malaysia, Philippines, Thailand and Indonesia.

The council confirmed that demand for high-quality protein is strong but not being fully met. More than one-third of consumers in the region said they are “not highly satisfied” with their current protein intake.

This has created a growing opportunity for USA dairy suppliers to export nutritional and multifunctional dairy protein ingredients for use in an expanding array of locally protein-fortified products. 

With a population of over 600 million people and a combined gross domestic product (GDP) of over US$2.6 trillion, Southeast Asia is primed to increase its nutrition spending for years to come.

The USA dairy export value to Southeast Asia rose 22% to a record US$1.68 billion in 2022. In volume terms, the region is the No. 2 USA market for nonfat dry milk/skim milk powder and lactose, the No. 4 market for high-value, whey protein concentrate (WPC) and a top 10 market for cheese.

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