These are the trends and SIPPO's activities in its six sectors for 2023
SIPPO operates in 6 sectors in its 11 target countries. Which are the trends in SIPPO’s sectors in 2023? And as an update: At which Trade Fairs will BSO’s be present in the coming year, supported by their SIPPO country teams?
In a nutshell, these are the perspectives for the six SIPPO sectors for the coming months in 2023.
- In the Fish&Seafood sector we see a clear shift towards aquaculture.
- In the Natural Ingredients sector, synthetic ingredients will be more and more replaced with ingredients of natural and especially of plant-based origin.
- In the sector Processed food Sustainability as a way to mitigate risks and address consumer concerns, a trend to always be greener, which means, for instance, more production of organic products and plant-based foods, Digitalisation and big data and new consumer tastes which affect a variety of aspects outside of the actual production such as packaging and traceability.
- In the Sector Technical Wood future developments are especially difficult to predict due to the war in Ukraine and economic sanctions. Many market players are expected to focus more on products with short and reliable supply chains and delivery times.
- The Value added Textiles sector is undergoing a radical change by moving towards high value-added products, and it faces key financial challenges to accelerate sustainability and circularity, enforced by the 2020 Circular Economy Action Plan and the 2021 update of the EU Industrial Strategy.
- In the sector Sustainable Tourism new global developments prevent an undisturbed recovery from the Covid-19 pandemic.
Which activities do the SIPPO country teams envisage for 2023?
According to the FAO, aquaculture production and demand has increased in recent decades, compared to capture fisheries mainly because wild catches are currently facing overfishing problems. Aquaculture products have been a driver to mitigate risks and are expected to overtake wild capture by the end of 2022. Aquaculture is becoming the leading sub-sector in the market.
SIPPO activities: For 2023 SIPPO Tunisia and Indonesia will strengthen their focus on aquaculture products, and SIPPO Tunisia has planned a presence of BSOs at the SEG Barcelona 2023 from 25-27 April. From 8-11 May SIPPO Morocco will be present at Tuttofood 2023 in Rome/Italy, a platform for the entire agrifood trade sector.
Europe is the largest market for cosmetic and medicinal ingredients and the second largest market for food ingredients. For SIPPO countries that are active in the NI sector, demand is focused on essential oils and some tropical/rare plant ingredients. A major trend is the replacement of synthetic ingredients with ingredients of natural origin and especially those of plant-based origin that comply with more sustainable and ethical production standards. Certification is therefore a key element, such as COSMOS or NATUE for cosmetic ingredients.
SIPPO activities: The main products that SIPPO countries are focusing on in the sector are cannabis, medicinal herbs, essential oils, and cosmetic ingredients. In 2023 BSOs from Tunisia, South Africa, Colombia, and Indonesia will be supported at two main shows, Food Ingredients/Health Ingredients in Frankfurt from 28-30 November and In-cosmetics in Barcelona from 28-30 March 2023. For 2023 SIPPO will also continue promoting networking events and fostering the cooperation between SIPPO countries and other stakeholders, such as associations, European BSOs, certification bodies and European importers.
Processed Food (PF)
Sustainability as a way to mitigate risks and address consumer concerns. This goes along with a Trend to always be greener, which means: More production of organic products, sustainable solutions for manufactured goods, plant-based foods. Digitalisation and big data gain importance for market research and the management of commercial relationships, and new Consumer tastes also influence packaging, transportation, logistics, traceability, and functionality and lead to use of new ingredients, and the increase in vegan options and products that satisfy health and wellness aspects, such as oils, fruits, and ancient grains.
SIPPO activities: Sustainability is SIPPO’s main topic for the processed food sector, in addition to strengthen collaboration with the private sector in Switzerland to understand market trends, product development and market adaptation or trade promotion aspects. SIPPO Tunisia has supported its BSO at the Zurich Olive Oil Award since 2020 and will do so for the last time in 2023. SIPPO Tunisia, Morocco, South Africa, Colombia, Serbia, and Albania will again be present at Biofach from 14 - 17 February 2023. Country teams from Albania, Bosnia and Herzegovina, Colombia, Morocco, Serbia, South Africa and Tunisia plan to support BSOs at Anuga in Cologne/Germany from 7–11 October. Biofach and Anuga will create opportunities to collaborate, exchange and network between BSOs, country teams and other institutions.
Technical Wood (TW)
The first quarters of 2022 were marked by a strong demand from the building, carpentry, renovation and do it yourself (DIY) sectors in key EU markets. However, the price inflation resulting from the war-induced Russian supply gap has now reached a critical level and in some countries construction companies, the DIY sector and private consumers are beginning to postpone timber product purchases. Given the significant uncertainties caused by the war in Ukraine and economic sanctions, future developments are difficult to predict, even in the short term. Many market players are expected to focus more on products with short and reliable supply chains and delivery times.
SIPPO activities: For the time being SIPPO’s Technical Wood sector contains semi-finished products to which value has been added through industrial processing in the first and second processing stages (e.g., flooring, boards, windows, doors). The future engagement of SIPPO in the Technical Wood sector will be elaborated in 2023 in the global sector strategy. BSOs from Bosnia-Herzegovina, Serbia and Indonesia plan to participate at Interzum Trade Fair in Cologne, Germany, from 9-12 May 2023.
Value-Added Textiles (VAT)
The textiles sector has recently undergone a radical change by moving towards high value-added products. Lack of skilled employees leads to a gradual shift from lower towards medium and higher-skilled employees. It is a key challenge for the green transformation to boost investments to accelerate sustainability and circularity, as stipulated by the 2020 Circular Economy Action Plan and the 2021 update of the EU Industrial Strategy. All textile products placed on the EU market need to be durable, repairable, recyclable, and free of hazardous substances and produced in respect of social rights and the environment. In SIPPO Balkan countries, the sector has continued with its post-pandemic recovery due to the demand shift from Asia to Europe. In Morocco, the sector showed considerable resilience despite the economic crisis particularly in Spain and France.
SIPPO activities: BSOs from Bosnia-Herzegovina, Serbia, and Albania, supported by SIPPO, plan to participate at A&A Trade Fair in Düsseldorf, Germany from 24-27 October 2023.
Sustainable Tourism (ST)
Although the sector slowly recovers from the Covid-19 pandemic, new happenings prevent an unimpeded development. Budget cuts and austerity measures as consequences of the war in the Ukraine hit the Balkans especially, namely Albania and North Macedonia.
SIPPO activities: The SIPPO cross-cutting topics of sustainability and digitalisation coincide with major tourism trends. Digitalisation is primarily focusing on capacity development around digital marketing. Sustainability shall be enhanced by awareness raising measures. All SIPPO tourism countries (i.e., Colombia, Peru, Albania, and North Macedonia) are planning to support their BSOs at the tourism fair ITB Berlin from 7-9 March 2023. Participation is also anticipated for the Tirana tourism fair and TT Warsaw and Fitour in Madrid.