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Digital innovation for food safety and sustainability in S E Asia

By Victor Ng | Wednesday, July 23, 2025, 1:29 PM Asia/Singapore

Digital innovation for food safety and sustainability in S E Asia

From supply chain disruptions and labor shortages to stricter sustainability regulations — and now new tariffs impacting ingredient imports and exports — businesses are being pushed to the brink. Rising production costs and geopolitical instability are further tightening margins.

With this new wave of challenges, manufacturers in Southeast Asia are now facing a critical juncture — they know that digital transformation is no longer an option, and they need to adapt to advances in digital technology such as AI-powered automation.

For instance, WEF reported that 83% of Indonesian businesses believe digitalization is reshaping operations. But digitally innovating to survive and thrive in the new world order, however, isn’t without hurdles.

Mondelez International, one of the world’s largest food and snack manufacturers, is leading the charge in Southeast Asia to modernize food manufacturing with a mix of AI-powered automation, predictive analytics, and immersive training programs, and more — to ensure the region’s food safety and sustainability.

DigiconAsia finds out more from Jeal Desai, Director, Mondelez Digital Services, SEA, Mondelez International.

What are the evolving challenges faced by Southeast Asia food manufacturers in the current global and regional economic and geopolitical landscape?

Jeal Desai (JD): Today’s food manufacturers operate in an increasingly volatile environment shaped by supply chain disruptions, inflation, labor shortages, and shifting consumer expectations. These pressures are magnified by macroeconomic uncertainty, as tariffs, trade restrictions, and geopolitical tensions raise the cost and complexity of importing raw materials and managing cross-border logistics.

Rapid urbanization, evolving retail ecosystems, and hyper-local consumer preferences further complicate operations in Southeast Asia. For instance, markets like Thailand and Malaysia may favor spicier flavor profiles, requiring localized product innovation and nimble supply chains.

At the same time, manufacturers must contend with fluctuating input costs, ambitious sustainability targets, and a tightening regulatory landscape while maintaining consistency, quality, and scale. The ability to adapt quickly and decisively is now a baseline requirement.

To stay competitive, businesses must boost agility through AI-powered insights and targeted digital investments. This creates both opportunity and pressure to reskill workers as automation and data become central to growth.

What is the role of technology in overcoming these challenges?

JD: Technology has evolved from a back-end enabler to a core strategic differentiator. AI, data analytics, and automation are unlocking new levels of agility, efficiency, and resilience for food manufacturers.

Take our Cikarang facility in Indonesia as an example. It’s a hub for smart manufacturing, where we use technologies like a vision control system to detect subtle product defects that might otherwise go unnoticed, and 3D printing to produce spare parts on demand, eliminating the need to hold large inventories. These are not just operational wins; they demonstrate how digital transformation directly supports business resilience and growth.

Technology also helps us respond faster to market shifts, future-proof our workforce, and scale innovation across our value chain—from sourcing and production to distribution and retail.

How is Mondelez applying technology solutions and innovations like AI, automation, and predictive analytics?

JD: At Mondelez, digital innovation is guided by a clear principle: technology must serve a business purpose. Our investments are focused on delivering measurable outcomes, improving efficiency, and driving competitive advantage.

AI is also creating new opportunities in sales and marketing. In sales, it can power hyper-local promotions tailored to individual store performance, while marketers can use AI to personalize digital content and media for consumers at scale. These capabilities help brands stay relevant, responsive, and competitive in Southeast Asia’s fast-moving, fragmented retail landscape.

Another opportunity lies in blockchain-enabled traceability. From cocoa to palm oil, blockchain can provide end-to-end transparency in sourcing, production, and distribution. These immutable digital records help meet growing regulatory demands and consumer expectations around ethical sourcing, food safety, and sustainability.

As the region continues to digitize rapidly, these technologies can serve as powerful tools for operational excellence, sharper consumer targeting, and building lasting brand trust.

The Southeast Asia region is a melting pot of cultures and widely known as a food haven, famous for its diverse and flavorful cuisines, shaped by centuries of trade migration and conflict. But beneath the flavorful facade, food manufacturers across the region are confronting growing complexity.

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