Indonesian Extracts – New opportunity for exotic beverages

As the country with the second-highest level of biodiversity in the world, Indonesia has traditional knowledge on the use of natural ingredients for foods. Driven by it, the Asian country has developed innovative extracts and applications that are now available for the European market. The Indonesian extracts show a great opportunity for exotic beverages.

With less than 1.5% of the Earth’s land area, Indonesia contains the third-largest zone of rainforest, after Amazonia and Congo Basin. The biggest archipelago in the globe possesses 10% of the world’s flowering species, estimating around 15,000 endemic varieties not found anywhere else. This biodiversity and its potential for innovative products are in demand among European manufacturers who seek to differentiate themselves. However, western buyers still do not see the country as a big player in the extracts’ industry. To change that, tropextrakt, German company reference in the distribution of exotic raw materials, has built a partnership with an Indonesian supplier.

Quality, Food Safety and Sustainability: finding the best suppliers

Among the concerns of European manufacturers regarding Indonesian products are the quality of ingredients and whether the suppliers work according to sustainable practices. To deliver what the European market demands, tropextrakt has its own Quality Management department. The team has the challenge to find good quality products cultivated by producers that follow responsible procedures concerning its personnel and the environment. They work based on a release system, which takes a detailed look at legal requirements and quality standards.

The process starts with the search of certifies suppliers. The team first runs a risk assessment. The review includes processing questionnaires and product-specific analyses that must be in accordance with EU regulations and customer’s specific requirements. They also check the HACCP (Hazard Analysis Critical Control Point) system based on criteria such as product specification, process flow chart, and legal compliance of packaging. After the end of production, the Quality Management team of tropextrakt checks the compliance of sensory, chemical, physical, and microbiological parameters.

In the case of the Indonesian supplier, from where tropextrakt already traded liquid Ginger extract, the first sustainability report puts the company in a great position. With certifications on quality management, food safety and sustainability, the Asian producer ranked the maximal score on many points. Besides that, they have shown to care a great deal about how to handle their liquid waste and give proper treatment to hazardous materials.

Specialist data analysis factory
Specialist for data analysis in the factory

Concerning to their social responsibility towards workers, they guarantee a journey of no more than 40 hours per week, salary ranges in accordance with national requirements and health insurance benefits. They also provide opportunities for young talents and people with disabilities, and five of their department leaders are women. The company is currently enrolled in the CBI program (Center for the Promotion of Imports from developing countries to Europe) since they want to be up-to-date on how to respond to the European buyers’ demands.

Taste, Function and Concept: the recipe for innovation in exotic beverages with Indonesian extracts

Starting the day with the boost of a Golden Milk (also known as Curcuma Latte) or taking a Ginger Shot before training. Strongly present in the European market, the use of Indonesian extracts for exotic beverages presents a good opportunity. Even though they are well known by the consumers, there is always space for innovation for those who intend to deliver new products.

tropextrakt has an in-house Idea Lab. There, the specialized team of Product Developers create and improve recipes with exotic raw materials, whether at customer’s request or based on their own ideas. The results reach the market with great quality and value, bringing new flavor experiences and natural functions. The company has years of certified industry knowledge and is ready to work on new ways to apply the Indonesian extracts.

Jamu exotic beverage with Indonesian extracts
Indonesian drink „Jamu” turmeric, ginger, lemon, honey

Originally used in Indonesian traditional medicine, Jamu is a drink ready to enter the western market. Prepared from Turmeric and Ginger, the beverage is especially popular on the islands of Java and Bali. It is known as an agent to prevent infectious diseases, strengthen the immune system, detoxify the liver, reduce inflammation, and fight bacteria. With a citric touch of lemon and natural sugar from honey, the beverage reaches a special taste and function combination.

The native extracts from the Asian archipelago include Red Dragon Fruit. The product is known by its natural colorant action that gives beverages a natural pink look and allows Clean Label. Also included in the tropextrakt portfolio are functional extracts such as Tamarind, Ginseng, and Pandam Leaves. These ingredients can boost beverages with natural and healthy benefits. The extracts from Indonesia are considered as specialities. This status is due to their premium quality and certifications, and the fact that they are exotic and relatively new to the market. In the opposite side are the commodity products, which are standard and traded in large quantities, such as banana or apple.

To be at the spotlight for the consumers, a delicious and functional recipe must be created based on a coherent concept. Here, the experts from tropextrakt can also give their inputs. The first step on the product development journey is to work on an idea. Then, they translate it to ingredients and combinations and the clients taste different alternatives. This process is cyclical – they go back to the concept and make necessary adaptations in the recipe until the intended product is ready for the market’s shelves.

Playing in the big industry field

Within the EU markets, companies are trying to differentiate themselves from the competitors and get the attention of consumers. A new perception of health and the aging of population is driving the European adults to seek natural alternatives for products. The market is also increasingly driven by sustainability and storytelling. One way to fulfil this demand is with a good choice of ingredients for their products. Including a specialty in the recipe, which carries quality and sustainability certifications, adds value to the label.

However, manufacturers must be careful with their claims. The consumers are aware and able to check facts, so making legitimate allegations is important to keep their trust. The first step to guarantee this legitimacy is to work with experienced distributors. tropextrakt has 20 years of industry knowledge, an extensive portfolio of fruit and plant extracts and a proud list of customers, which go from the bis industry to promising start-ups.

The Indonesian extracts are not yet seen as a reference within the European foods market, but their ancient knowledge on the use of natural ingredients can change that. The popularity of traditional healing systems such as Ayurveda and other oriental medicines are playing an important role within the western market. While much uncertainty is surrounding the Chinese trades, Indonesian supplier offer a reliable and stable bridge to these approaches.

The next steps for the Indonesian extracts in the exotic beverages industry

Ingo Kniepert tropextrakt plantation visit local producer
Ingo Kniepert visits plantation

The food and beverage markets have a strong need for innovative extracts, as well as commodities. To be more established within the extracts’ industry, suppliers from Indonesia are supplementing their portfolio. The opportunity for Indonesian extracts in the exotic beverages sector is promising.

Producers from the Asian archipelago also seek to improve their sector strategy (from source to market), market intelligence, and skills of their staff. Their presence and growth within the industry can also benefit from better international marketing and branding coordination, as well as a better understanding of product development in compliance with European standards. Values such as efficacy, documentation, certification, and organic cultivation are also within their improvement goals.

tropextrakt works not only to trade exotic raw materials, but also to empower producers around the world. The company sees the potential of these players to enter and solidify themselves in the big industry. To do so, they build their partnerships with great care, looking for long-term and trustful collaborations, from the cultivation fields to the market shelves.

 

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