China has reduced import tariffs on 187 goods, including infant-formula, spirits, seafood and other products, in a bid to encourage domestic spending as the country strives to become a consumption-driven economy. Tariffs for some baby formula products will be cut to zero from 20% as a result of the new rules, benefitting global brands like Danone and Nestle that are competing for a leading share of China's lucrative infant formula market. The move will help lower the price point of major international brands in China compared with other countries globally, thereby reducing the incentive for consumers to make purchases overseas or via unofficial channels. China's Yili Group has expressed its intention to acquire a majority stake in Pakistan Dairy company Fauji Foods, known for its Nurpur brand, according to a notice sent to the Pakistan Stock Exchange in August 2018.

A large tourism sector fuels consumption in a number of food and drink sectors, including soft and alcoholic drinks. Across the region, any fluctuations in tourism levels have a noticeable impact on the premium alcoholic drinks sector, where the majority of consumption can be attributed to affluent tourists. In the food sector, segments that are particularly reliant on the tourist dollar include convenience and brand-name products from the US.

The food and beverage industry is well developed, and leading international operators have a strong and growing presence. In total, there are around 45,000 registered food-processing companies, ranging from small- and medium-sized companies to major multinationals. In 2015, the Brazilian food processing industry grossed USD168.3bn, which represented approximately 9.5% of the country's GDP.

In July 2017, leaders of the Visegrad Four countries, which include Hungary, Poland, Slovakia and the Czech Republic, demanded that EU legislates stop what they allege is a practice of major food manufacturers: selling branded products of an inferior quality compared to the same branded product sold in Western Europe. In H1 2018, a number of countries - including Serbia, Japan, Taiwan, Singapore and South Korea - banned the imports of Hungarian pork due to African Swine Flu found in the country.

In June 2018, Kazakhstan's Ministry of Agriculture announced plans to double production of lamb and beef in the coming decade. During the first five months of 2018, the country produced 107.7 thousand tonnes of meat products, marking 14.5% year-on-year (y-o-y) growth. In 2017, Kazakhstan exported around 4,000 tonnes of beef. The government expects to significantly boost the export volumes to China in 2018, as the latter has recently removed some of the earlier restrictions on meat imports from Kazakhstan (Globalmeatnews.com)

Malaysia's food and drink industry is substantial and is characterised by an increasing number of local industry products, such as snack foods, poultry, dairy products, eggs, tropical fruits and vegetables, soft drinks and beer.

The expansion of Pakistan's food sector will continue at a robust pace across our forecast period, with a growing urban population and an expanding middle class offering opportunities for strong growth in all segments. We note that over the coming quarters, should the July 2018 general election lead to sustained political unrest it could pose downside risks to our forecasts.

In July 2018, Almarai became a boycott target of Saudi consumers after the company raised prices on its core dairy products. A social media campaign is circulating photos of a popular yogurt drink plastered with a red X and the phrase “let it go sour” and “change it with another” (in Arabic) after Almarai raised the price of a litre of milk by SAR0.25 (USD0.7). In a statement, Almarai said it raised prices because its own costs went up after the government cut energy subsidies and introduced new fees on foreign workers.

In May 2018, Austrian food group Agrana announced that it has suspended negotiations for the acquisition of Serbian sugar producer Sunoko due to the challenging European sugar market environment. In May 2018, Nestle announced the sale of its Serbian chocolate brand Cipiripi to Paracinka, a subsidiary of Serbian food distributor Silbo. The financial details of the transaction were not disclosed with Nestle stating that the divestment was part of 'a continuous portfolio audit'. In June 2018, it was announced that Chinese poultry producer Qingdao Rongxing Foods is planning to build a logistics centre in northern Serbia as part of the company’s plans to expand its foothold in European markets.