Japanese confectionery giant Meiji has ventured into Cambodia’s milk powder market to take advantage of growing demand in the Kingdom, starting with the capital’s baby goods stores, according to a recent report.
Meiji began shipping products to the Kingdom earlier this month with unchanged recipes and in their original Japanese packaging, with labels affixed containing Khmer instructions, expiration dates and other key information. , Nikkei reported last week.
Intended for children aged 3 and under, the products, in 800g containers, are priced at $25-28.
Meiji predicts that the value of the Cambodian infant formula market will reach around 10 billion yen ($74 million) in 2030, and expects its sales in the Kingdom to surpass the 1 billion yen mark by then. , capturing a 10% share. .
However, the company will face stiff competition from established players in the market, including US labs Abbott, France’s Danone and Switzerland’s Nestle, all of which offer similar products at comparable prices, the outlet noted. .
Similarly, Tokyo-listed Asahi Group Holdings Ltd also introduced the infant formula brand Wakodo to the Cambodian market.
Taking advantage of compatible standards, Meiji will export to Cambodia the same products it sells in Japan, without any modification of the formulas to meet the rules specific to the territory, as is the case for goods shipped to all other markets in which the business is in competition, according to Nikkei.
Meiji’s plans come on the heels after Nestlé announced plans to invest in Cambodia by setting up an operation in the near future, a move widely hailed by local dairy farmers as a way to boost the fresh milk market. in the Kingdom.
Chhor Rithy, CEO of Khmer Fresh Milk which produces the Kirisu Farm brand of milk, said greater demand for fresh milk should lead to levels of dairy cow breeding rivaling those seen in other countries. which in turn would create jobs and improve the livelihoods of Cambodian farmers.
Currently, the supply of fresh milk from local farms is not sufficient to meet demand, Rithy recently told the Post, adding that Khmer Fresh Milk Co Ltd can only produce 10,000 liters per day, enough to meet around one-fifth of market demand. .
However, according to Rithy, production of fresh milk from Khmer Fresh Milk is increasing daily, from 2,000 liters at the time of initial sale to 10,000 liters per day, while the total number of cows on the farm has increased to almost 1,000 heads.