Food Technology – Agriculture Food Processing

The global food market is set to surge from about US$6.4 trillion in 2022 to an estimated US$8.9 trillion in 2026, at an 8.7% CAGR. Malaysia effectively meets worldwide food and beverage demand due to its diverse population. Processed food exports are successful in over 150 countries, especially halal-certified products among the 1.8 billion global Muslims. In Malaysia, the food market is projected to grow around 8% annually from 2023 to 2027, reaching US$69.4 billion by 2027.

Global food players are reinforcing their presence in Malaysia, elevating food production capabilities. The halal food sector, valued at US$31 billion in 2021, is poised to reach US$47.6 billion by 2025. Strengthening the local halal industry and encouraging competition are crucial for a notable share in the global market. Amidst growing food security concerns and the need for alternative protein sources, investment prospects span ‘smart farming,’ alternative meat ingredients, aquaculture, controlled-environment agriculture, and by-product recycling. Embracing ‘smart farming’ through automation aligns with SDG 2 – Zero Hunger. The Government through The Ministry of Agriculture & Food Security encourages investments that advance sustainable agriculture and aid small-scale farmers’ access to land, technology, and markets.

Given Malaysia’s modest self-sufficiency in milk-based products, investors can explore downstream possibilities in dairy or plant-based milk processing, meeting local and regional demand. In the food manufacturing sector, spanning multinational corporations, local conglomerates, and SMEs, firms are adopting ESG practices. These encompass recycling packaging, solar panel installation, rainwater harvesting, and waste reduction. These measures align with export-oriented ESG standards, and the government is committed to assisting entrepreneurs across the food supply chain to achieve these sustainability aims.

The Government promotes innovation and advanced technology adoption in operations, aiming to boost agricultural productivity, self-sufficiency, and profitability. These technologies also lead to safer, efficient, and environmentally friendly production processes.

The food processing sub-sector is crucial for Malaysia’s diversified economy, offering high-value food product manufacturing opportunities. To stay competitive, food manufacturers pursue efficient, automated, and flexible approaches to meet consumer demands.

An elevated emphasis has been observed within the global food industry on the animal feed segment. In the year 2022, this focus manifested through the approval of six projects within the sub-sector, collectively amounting to a value of RM132.8 million. These projects were tailored specifically toward the production and development of various animal feed products.