The Surabaya-based firm will be launching at least two new floral extracts for the beverage and wellness markets, which have been growing rapidly since the COVID pandemic hit.
While Asia still lags behind Europe in awareness and demand for natural products, it is catching up, says Hendra Harianto, global account manager at Sima Arome.
Asians used to prioritise taste only. But people became more health-conscious because of the pandemic. They have become more aware of the benefits of natural products and want to be healthier.
From taste-focussed to health-conscious
“But there are still many who think, ‘If I've been consuming synthetic products and I’m fine, why should I pay more for natural ones?’ Only those who are very health-conscious are willing to pay more,” said Harianto, who was speaking to FoodNavigator-Asia at Fi Asia Indonesia, held from 4–6 September 2024 at Jakarta International Expo.
This nonetheless means additional opportunities, which led the firm to expand its botanical range for functional beverages in the food and nutraceuticals sectors.
The butterfly pea extract will be promoted for its antioxidant and weight loss benefits. It also imparts an attractive blue colour, increasing the appeal of supplements and functional foods and drinks.
Hibiscus extracts have similar benefits, but they are tart and mildly sweet, making them suitable for light beverages like teas.
More products that will be launched in the coming year include the morinda or noni plant, known for its skin and wound healing benefits.
There will also be a focus on women’s health, which is gaining traction in the region, shared Arfa Reza, account executive at Sima Arome.
Apart from botanicals that are known to aid weight loss and skin health, the upcoming moringa extract will be targeted at breastfeeding mothers.
However, much of their revenue continues to be driven by the demand for flavour extracts that elevate the taste experience.
Taste and price still matter
The firm’s bestselling range are its fruit extracts for beverages, which include blackcurrant, strawberry, and blueberry flavours.
For beverages and nutraceutical supplements, other popular flavours include kaffir lime, ginger and galangal oils, which are sometimes used in cocktails.
There is also a shift in demand for vanilla extracts. Previously, most manufacturers would procure Madagascan (Bourbon) vanilla. Due to the price difference, more are turning to Indonesia, said Harianto.
While the flavour profiles between the two varieties are distinct – Indonesia vanilla is smoky and earthy, but Madagascan vanilla tends to be sweet and creamy – the price difference could sway brands who are cost-conscious.
This is because Indonesian vanilla is said to contain less moisture and more caviar than the Madagascan variety, making it more cost effective for bulk production.
However, this does not mean that all Indonesian natural extracts come cheap. According to Harianto, Sima Arome positions itself as a premium brand, with all its raw materials sourced locally, except for those that are unavailable in Indonesia due to the climate.
This works well as locally sourced material improves sustainability, which the firm actively promotes.
Prioritising sustainability for a global market
As sustainability becomes a growing priority for Europe, Sima Arome has committed to corporate social responsibility initiatives, including the proper handling of hazardous waste.
The firm’s long-standing presence in Europe has positioned it well for expansion into Asia, where it can leverage its experience in meeting stringent regulatory requirements and maintaining its environmental focus.
Currently, Sima Arome works with international brands like Cussons, Takasago, Givaudan, and Mane SA. It specialises in aromatic chemicals, natural extracts, and essential oils.
With increasing demand for natural products across Asia, Sima Arome sees this as the right time to expand its Asia-Pacific footprint beyond its established markets in China and Australia.
“There won’t be significant differences between Asian regions in terms of demand for key ingredients,” said Harianto, who expects steady interest in flavours like pandan, clove, and ginger.
The firm is now exploring key Southeast Asian markets like Malaysia, Singapore, and Thailand, as well as Japan and South Korea. However, regulatory requirements could pose challenges, particularly in Japan.
“Japan is a significant market, but it’s difficult to enter due to the lengthy regulatory process. It's strict – Japan is the second most stringent after Europe – but the complexity of Japan's regulatory framework makes it more challenging. It takes a long time to navigate the system.
“The demand for natural oils and extracts is definitely there, and we’ve already received inquiries from Japan. But it’s going to take years to get everything approved,” said Harianto.
