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3 shares to profit from the growing Asian middle class

The South East Asian region is a huge opportunity for any Australian company that can take advantage of demand for quality Australian products.

With a population size many times bigger than Australia and earnings & wealth growing at a fast pace, it’s easy to see that the burgeoning Asian middle class are a big customer base that companies can sell to.

Here are three shares taking advantage of that:

Blackmores Limited (ASX: BKL)

Blackmores is one of the most well-known ways to profit from growing demand in Asia. It sells a variety of vitamins, tablets and therapeutic products.

Previously a lot of products were sold initially in Australia and then shipped to Asia by individuals. Now Blackmores working on directly selling in Asia. In its recent half-year result it grew Chinese sales by 27% to $74 million and other Asian market revenue grew by 18% to $39 million.

Blackmores continues to expand into more Asian countries with more products.

Freedom Foods Group Ltd (ASX: FNP)

The owner of Australia’s Own and Freedom Foods is doing well in Australia and now it wants to expand in Asia.

Australia’s Own kids milk product is now the number one imported kid’s milk brand in China and it’s rapidly growing. It’s also growing its presence in South East Asia with infant formula. Freedom’s cereal products are also extremely popular in China and growing at an impressive rate.

The company is also launching a dairy range, which includes an a2 protein product.

Bellamy’s Australia Ltd (ASX: BAL)

Bellamy’s is one of Australia’s leading infant formula brands with its organic products. It’s been a bit of a rollercoaster for shareholders, but the company seems to have put many of the previous issues behind it and is now back to growth, it recently unveiled its best normalised half-year result.

The company is increasing its marketing in Asia as well as working harder on its daigou relationships.

Foolish takeaway

I believe all three will create pleasing revenue growth over the next few years. At the current levels I wouldn’t say any are screaming buys, but Blackmores and Freedom could be decent long-term options.

Another company looking to profit from the growing region is this exciting stock which opened its first Asian store this month.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool Australia has recommended Freedom Foods Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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