Green products gaining traction

Potential opportunity: While the market for green products is huge, there has yet to be any big players in the market.

AWARENESS on the impact of human activity on the environment is growing. Consumers are increasingly opting for greener products and are demanding for more sustainable practices.

As more reports about climate change are revealed, regulators are also looking at measures to ensure a more sustainable development.

And this favourable environment is ushering in a golden era for green products, says Jesa Enterprise Sdn Bhd executive director Kartigha Ayamany.

“Now is the big wave. It is the right time. With this green trend, products like ours are given more priority. So that gives us more exposure,” she says.

Jesa Enterprise produces disposable dinnerware such as plates and bowls that are made from palm leaves. Their products are sold under the Fallaleaf brand.

Kartigha notes that consumers these days don’t mind paying for products that are sustainable as more people are eager to do their part in the fight against global warming. Additionally, in some places, regulations dictate that people start looking for greener products. In the case of Europe, the approval to ban a wide-range of single-use plastic items by 2021 has sent businesses scrambling to find alternative suppliers.

For sure, there is a growing appetite for more sustainable disposable items.

According to a research by Future Market Insights on the disposable cutlery market, the global revenue is poised to witness a moderate 4.3% year-on-year growth in 2019. The report notes that growing demand from the quick-service-restaurants sector is pushing consumption of disposable cutlery in the food service outlets segment.

Currently, retail sales account for over 40% share in the disposable cutlery market.

Still widely used: Plastic cutlery are still a cheaper and convenient option at the moment.

While plastic spoon and fork currently generate maximum revenue, “wood-based and edible disposable cutlery are gradually taking over”, it says.

One of the trends that is pushing demand for disposable cutlery is the growth of online food service. While food service providers are directing their competitive efforts to suit increasing consumer preference for online food ordering, it notes that there is also an effort to maintain the element of sustainability, helping eco-friendly disposable cutlery gain traction.

The report adds that the Asian market holds the highest growth potential for the segment. With just-under one-third of the total disposable cutlery market value, it says Asia Pacific, ex-Japan, is poised to witness a notable incremental opportunity in coming years, buoyed by the thriving convenience food culture across the region.

China, a crucial market for Asian manufacturers of disposable cutlery, is likely to capitalise on the online food service sector, which is projected to enjoy almost 30% growth in revenue over the next few years. This is perceived to be a major contributor towards the growth of disposable cutlery market in Asia Pacific.

On the other hand, Western Europe and North America, which collectively hold around half the global market revenue, could see a gradual fall in the revenue growth, attributed to a visibly growing trend of using conventional steel cutlery.

While the market potential for green products is huge, Kartigha notes that there has yet to be any big players in the market, especially in Malaysia. This gives Jesa Enterprise an opportunity to grow, not just its products and technology, but also its influence in the local green space.

Nonetheless, the proliferation of plastic cutlery remains a challenge. They are convenient and cheap, she points out.

Kartigha hopes there will be more effort to educate local consumers on the need to change mindsets and to demand for more sustainable products in order to make a solid impact on the environment.