Fi Asia 2026: Affordability Drives Yield & Efficiency Innovation in APAC

Jakarta, Indonesia — 04 September 2026

Ingredient suppliers exhibiting at Fi Asia Indonesia 2026, held from 16-18 September, are shifting focus from retail pricing to manufacturing economics, emphasising yield optimisation, processing efficiency, and extended shelf-life. This strategic pivot directly addresses intense cost pressures faced by food and supplement manufacturers across the Asia-Pacific region.

Recent Innova Market Insights data reveals a significant consumer shift, with 56% of Asia-Pacific consumers purchasing only essential items, and one in three actively seeking better value. In Indonesia, consumer value perception is a complex interplay of price, portion size, and perceived quality. This dictates that brands must deliver healthy, convenient options without compromising flavour or familiarity, all within accessible price points.

Novonesis, a key exhibitor, will showcase its biosolutions under the theme “Powering Flexibility and Affordability in Food & Beverage with Biosolutions.” Adam B. V. Diggle, Novonesis's Head of Food and Beverage Biosolutions in Southeast Asia, states that biosolutions enable manufacturers to convert cost pressures into margin opportunities by optimising raw material use, reducing production costs, and enhancing product consistency. This focus on operational efficiency is critical for maintaining market competitiveness and fostering sustainable growth across Southeast Asia’s diverse markets.

The region's rapid urbanisation further complicates market dynamics. While rural consumers remain highly price-sensitive, expanding urban centres demand premium, convenient, and functional products. UN-Habitat forecasts Asia's urban population will grow by 1.2 billion by 2050, shifting grocery spending towards modern retail channels that require broader product portfolios, greater shelf stability, and more sophisticated distribution. This necessitates adaptable production lines and formulation strategies capable of managing increased complexity without inflating costs.

Companies like Tate & Lyle are addressing this by offering tools such as their Sensation tool, which translates consumer texture preferences into formulation insights to accelerate product development. Prosur also notes that cost pressure is inseparable from evolving consumer expectations and stricter regulations, driving demand for natural, cost-effective ingredient systems in areas like processed meats, fermentation, and sugar reduction. Suppliers at Fi Asia are therefore tasked with delivering value across the entire production chain: enhancing raw material utilisation, ensuring product consistency, extending market reach, and providing operational flexibility to serve a rapidly diversifying market.

What this means for Indonesia

Indonesian manufacturers face acute pressure to deliver affordability without sacrificing perceived quality or health benefits. Investment in biosolutions and process improvements offers a direct pathway to mitigate rising input costs, potentially improving gross margins by 3-5% through better yield. Brands must segment their offerings, developing cost-optimised lines for price-sensitive mass markets while innovating premium, convenient formats for urban consumers shifting to modern retail. Compliance with evolving food safety and quality standards will be critical, requiring adaptable ingredient sourcing and formulation. Agile product development, leveraging tools that reduce time-to-market, will provide a competitive edge in capturing diverse consumer segments.

What to watch next

• Observe exhibitor announcements from Fi Asia 2026 (16-18 September) for specific technology introductions addressing yield improvement and cost reduction.
• Monitor Q4 2026 financial reporting from major APAC food and supplement manufacturers for commentary on raw material costs and margin performance.

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