Top Opportunities in Asia's Pack

Top Opportunities in Asia’s Packaged Food:
2024 and Beyond

March 2024
Downloaded from
© Euromonitor
© Euromonitor International
International 2021.
2024. All rights
All rights reserved.
reserved. www.warc.com
This PowerPoint presentation includes proprietary information
from Euromonitor International and cannot be used or stored with
the intent of republishing, reprinting, repurposing or redistributing
in any form without explicit consent from Euromonitor International.
For usage requests and permission, please contact us

https://www.euromonitor.com/locations.
The data included in this report is accurate according to

Euromonitor International´s market research database,
at time of publication: March 2024
Contents
Introduction
Drivers and consumer shifts
Life stage nutrition: A focus on early life
Plant-based: The next wave
Need states: Path to emotional wellness
Creating impact beyond 2024
INTRODUCTION 44
Scope
Between 2018 and 2023, Asian countries
Dairy Products and Cooking Ingredients saw polarised rates of growth in packaged
Snacks in 2023 Staple Foods in 2023
Alternatives in 2023 and Meals in 2023 food sales. For 2023-2028, however, this
range is set to narrow as markets stabilise.
Companies are focusing on expansion,
innovation and building value. Within these
Asia Pacific Asia Pacific Asia Pacific Asia Pacific three strategies are key pockets of
USD163.6 bn USD189.2 bn USD163.8 bn USD296.9 bn opportunity around life stage nutrition, the
evolution of plant-based and the growing
desire for comfort food. Brands must balance
between health, price and taste.
Australasia Australasia Australasia Australasia

USD12.7 bn USD11.4 bn USD8.2 bn USD14.2 bn
Disclaimer
Much of the information in this briefing is of a
Unless otherwise noted, all value sales data for the period 2018-2023 in this report are in US statistical nature and, while every attempt has
dollar terms, using a year-on-year exchange rate and including inflationary effects. been made to ensure accuracy and reliability,
Euromonitor International cannot be held
Forecast data is at constant 2023 prices, fixed 2023 exchange rates. responsible for omissions or errors.
Figures in tables and analyses are calculated from
2023 figures are based on part-year estimates. unrounded data and may not sum. Analyses found
in the briefings may not totally reflect the
companies’ opinions, reader discretion is advised.
INTRODUCTION 55
Key findings
Spending on food and Intensified pressures to costs of living since the pandemic shaped thriftiness will continue to
grocery continues to be stick in 2024. This has an effect on brand loyalty, especially with greater mindfulness towards
cautious and mindful value, alongside the search for happiness and personal health.
Identifying pockets of Life stage nutrition is a growing segment as consumers in Asia are increasingly sophisticated in
growth from life stage seeking products that cater to their specific health needs. There has also been growing
nutrition segmentation in the functional food space following the pandemic.
Plant-based and alternative The growth of plant-based food has been driven by rapid innovation, leveraging consumers’
protein move into the next curiosity and attraction to novelty. Asia Pacific is anticipated to move into building cost
stage of innovation effectiveness, scaling and expanding a stable consumer base.
Consumers seek emotional Asian consumers have been seeking more financially sustainable ways to purchase daily
wellness, balancing between essentials and groceries. Consumers seeking indulgence will continue to be highly sensitive to
price and health price, seeking various solutions to improve their wellbeing, emotional connection and security.
Crucial to remain affordable Growth will be led by emerging markets - namely India, Indonesia, the Philippines, Vietnam and
but opportunity to build on Thailand - while developed markets are anticipated to achieve steady growth through focus on
health and sustainability value, while tapping into life stage nutrition and the growth of plant-based.
Drivers and consumer shifts
DRIVERS AND CONSUMER SHIFTS 77
2023: Some Asian markets finally stabilised, others continued to flourish

Packaged Food Growth in Asia Pacific and Australasia 2018-2023 Over 2018-2023, the Asia Pacific region saw polarised growth rates
% CAGR in current USD terms (year-on-year exchange rates)
of packaged food sales across markets, largely due to economic
China 2.6% challenges, the volatility of the industry’s supply chain and demand
during the pandemic years. By 2023, all markets surpassed 2019
(pre-pandemic) retail sales, except for Japan, which shrank by
South Korea 0.7%
USD34.6 billion between 2020 and 2022. Japan’s growth picked up
Japan -2% in 2023, with the exception of cooking ingredients and meals sales
which continued to shrink (by 2%) from 2022 to 2023 due to a
Hong Kong, China -0.4% relatively late relaxation of COVID-19 restrictions causing continued
Taiwan 3.3% evolution of at-home versus away-from-home eating occasions.
Vietnam 7.3% India, Vietnam, Indonesia and the Philippines experienced the
India 8.8% Philippines 6.6% strongest growth thanks to the strengthening demand for packaged
Singapore 5% food during the pandemic. Most categories within these markets
Thailand 3.5% experienced a huge expansion of emerging brands beyond the
Malaysia 3.1% leading players, indicating a vibrant competitive landscape and a
bright spot for new entrants, bringing more diverse choices that
Indonesia 6.8% consumers have grown accustomed to.
Australia 2.4%
CAGR range Now, companies are focusing on retaining their strength in markets
-2% 8.8%
New Zealand 3.1% that struggle to retain positive growth, while exploring new pockets
of growth. There is long-term benefit to explore new consumer
Source: Euromonitor International Snacks, Dairy Products and Alternatives, Cooking
Ingredients and Meals, Staple Foods groups and building on brand value.
2024 follows the pandemic, inflationary pressures and geopolitical instability
Consumers continue to spend cautiously Greater mindfulness of consumption Consumers want to be healthy and happy
Pressures on costs of living shaped thrifty Social awareness, environmental Consumers have become more cognisant of
habits and low consumer confidence in consciousness and improved technological functional food as well as mental and
their local economies. Consumers will savviness affect consumption patterns and emotional wellbeing. Good nutrition and
continue to live cautiously, including day-to- preferences, driving the adoption of the joy of eating help consumers face new
day expenditure on food and grocery. alternative food sources. economic and health realities.
Consumer Attitudes in APAC 2023

% of respondents
49% believe that climate change

will impact their life more in the
next five years than it does now
Consumers in
most APAC
34% believe that there will be Weight becomes less of
markets are
pessimistic (less more political unrest in their a focus; consumers are
than 0 on the country in the next five years more prudent towards
index) about their nutrition intake.
situation in 2024.
31% order online from a third-
party delivery platform/website
daily/two to three times a week
Source: Euromonitor Voice of the Consumer: Lifestyles Survey, fielded Jan-Feb 2023
High hopes in emerging markets, while developed markets must counter expected declines
Among the four leading markets, cooking
ingredients and meals and snacks are
expected to see the strongest demand in
2024. This is coming on the back of rising
expectations of quality in everyday cooking
aids (be it more diverse flavours, tastier
ready meals, more convenient formats etc)
driving prices upwards, and more exciting
options as consumers move from
unpackaged snacks/cooking ingredients.
Some developed market sales, namely
Japan (snacks) and South Korea and China
(dairy products and alternatives) are
predicted to shrink in 2024, causing
pressure for brands to seek new consumer
needs and identify core growth drivers.
Calbee and Morinaga have launched
nostalgia-themed products in 2023 that
are positioned around authenticity and
product quality in hopes of sustaining their
core base of consumers.
10
Consumption changes also affect channel preference

Notably, supermarkets and hypermarkets’
share of channel across Asia Pacific has
dropped over 2019-2023, most prominently
for cooking ingredients and meals. While
this was mainly triggered by lockdowns in
2020, the switch to other shopping channels
- the largest beneficiary being small local
grocers - has sustained through 2023. This is
due to a mixture of consumer support for
local businesses and broad improvement to
grocers across the region in areas such as
payment methods, diversity of goods offered
and footprint.
Retail e-commerce has also seen major
development, and in many markets is seen
as a convenient and reliable channel for
groceries, successfully scoring the greatest
growth of channel share up to 2023. Social
commerce adds to the competitive
advantage of retail e-commerce, benefiting
the rise of small/local businesses.
11
Three focused themes can help shape innovation and expansion strategies
Life stage nutrition: A focus on early life Plant-based: The next wave Need states: Path to emotional wellness
▪ Underserved segments and specific life ▪ The region is moving past the initial hype ▪ Functional ingredients provide consumers
stages carve unique opportunities - of plant-based food products and with nutrition linked to emotional
identifying new whitespaces is crucial for manufacturers are developing the next wellness, complemented by on-pack
steady-growth developed markets. generation of innovation that will cover claims that play a massive role in
more product categories and formats. conveying relaxation and de-stressing
▪ Segmentation also helps entrants that are
benefits.
expanding into new markets secure trust ▪ These developments are expected not
among consumer groups who are willing only to drive interest in the overall plant- ▪ Affordable indulgence is a key theme,
to spend. This helps to instil repeat based industry but also add to the where an effective balance between
consumption and potentially leading to dynamism of other parts of the dinner taste/experience satisfaction and price
long-term brand loyalty. table. drives volume-driven categories.
Life stage nutrition: A focus on early life
LIFE STAGE NUTRITION: A FOCUS ON EARLY LIFE 13
13
Venturing into early life nutrition could lead to longer life cycle loyalty
As brands expand their footprint in search of new growth
opportunities, more are focusing on underserved consumer
groups. Life stage nutrition is a growing segment as
consumers in Asia are increasingly sophisticated in seeking
products that cater to their specific health needs. There has
also been growing segmentation in the functional food
space following the pandemic.
However, specific consumer groups show different
consumption behaviour calling for unique brand strategies.
Parents tend to be more particular about their children’s
eating habits, for example, and brands with a strong health
and nutritional reputation are in a better position to
expand into life stage nutrition.
Currently, more major/mass brands in Asia Pacific are
launching products for children, allowing them to emerge
strongly in new categories and even create new market
segments. Gaining share in a specific, smaller consumer
segment also means fewer substitutes. This paves them a
way to gain a more stable footing in the market and secure
long-term brand loyalty.
14
Help consumers develop healthier lifelong eating habits

Falling birth rates across Asia Pacific from 2018 are vastly different between markets - the lowest being four births per a thousand people in
Hong Kong, and the highest 21 births per a thousand Filipinos in 2024. This shrinking consumer base might not seem optimistic for brands
that cater exclusively to children, but there is potential in improving current choices for children. This is especially important in emerging
countries such as the Philippines, Indonesia, India and Vietnam where the consumption of packaged food is rapidly growing. Consumers
there are increasingly educated and aware of the need to provide proper nutrition for their children which translates into their consumption
choices. Aside from improving the current health status of children, manufacturers and producers can also consider the preventative route
and bucking the likelihood of obesity, diabetes prevalence and undernourishment. Manufacturers and brands must consider the unique
health profiles/trends of consumers in different markets when formulating products and conveying good nutritional intake.
15
There is a growing market beyond powder milk formula

Powder milk formula, while still a fast-growing market in countries such as Hong Kong, India and the Philippines, is quickly losing its
popularity in contrast to other baby food categories. Prepared meals and baby snacks are leading baby food growth, though sales are
largely driven by market incumbents given the niche positioning. Nevertheless, there are new product launches that help to increase the
variety available for parents to choose from. Their convenience and ease of preparation mirror Asian consumers’ growing acceptance and
reliance on ready meals, indicating the potential for more complex, guided meal solutions for children.
The declining share of powdered formats in the collective milk formula and drinking milk products market is also a pattern to leverage.
Liquid beverages that can be consumed either as a complement to meals or as snacks are preferred by parents and children alike, rather
than the more nutrition-based positioning of powder dairy products. This offers opportunities in widening consumption occasions.
16
Strong preference for clean label, but parents also seek sating food products
Top Ingredient Preference for Children by Market 2023
0-2 years old 3-5 years old 6-10 years old

Australia: All natural 27% Australia: Free from preservatives 26% Australia: Limited/No added sugar 30%
China: Free from preservatives 42% China: All natural 36% China: All natural 48%
India: All natural 37% India: All natural 44% India: Good for heart health 35%
Indonesia: Free from preservatives 52% Indonesia: No artificial sweeteners 45% Indonesia: Free from preservatives 48%
Japan: Free from preservatives 50% Japan: From my home country/local 27% Japan: From my home country/local 20%
South Korea: Organic 56% South Korea: Limited/No added salt 33% South Korea: Organic 27%
Thailand: Contains added vitamins 66% Thailand: Clean label 28% Thailand: All natural 48%
Source: Euromonitor Voice of the Consumer: Health and Nutrition Survey, fielded Feb-Mar 2023
Parents generally have different priorities and preferences when it comes to feeding
their children at different ages, though there is some similarity within a market. For
example, Indonesian parents are generally averse to artificial ingredients, though it is
more specific to sweeteners for children aged 3-5 years old. However, brands that
already have a strong reputation for clean label and nutritious ingredients can more
easily move between age ranges and primarily focus on taste and texture.
In India, leading snack bar brand Yoga Bar (51% brand share in 2023 based on retail Source: www.yogabars.in
value sales) entered children’s breakfast cereals in 2022 with the launch of Yo Chos - Yoga Bar cereal and Yoga Baby’s clear use of
later rebranded to No Maida Choco Cereal. In September 2023, the brand then grains and claims of free-from offer both
ventured into the baby segment with millet, ragi and oat porridge. satiety and clean label
17
Meals for young children are convenient and allow parents to explore
Double Happiness offers a variety of Promina Mi Batita Ayam Kampung offers dry Harim’s Foody Buddy ready meals consist of
products beyond typical rice cereals and instant noodles for children 1-3 years old 24 SKUs in segments recommended for
pasta to discourage fussy eaters Indonesia children above ages 1, 2, 3 and 4 years old
Malaysia South Korea
▪ Claims to contain 11 types of vitamins,
▪ Examples include sauces such as cheese omega-3 and -6, high in iron content, and ▪ Launched in November 2023, the line up
and brown sauce, herbal broth and is free from preservatives and flavouring includes noodle dishes, rice dishes (such as
pancake premixes fried rice), soup dishes and finger food
▪ As Indonesia’s per capita volume
▪ Helps parents in weaning, securing a base consumption of instant noodles is among (mini hot dogs, chicken nuggets, etc)
of repeat customers who can try different the world’s highest, noodles for children ▪ Claims to taste similar to adult food, but
products matches local preferences promotes the use of high-quality
Sources: Double Happiness Asia website, Promina YouTube, Foody Buddy YouTube
ingredients fit for babies
18
Functional products for older children are typically for growth and brain health
TH True Milk, the second leading player in Dutch Lady’s MaxGro claims to boost the Nestlé’s Milo launched Dynamind in 2023
Vietnam’s dairy market launched Chocomalt height of children aged 1-9 years old targeting teens and youth with nootropics
Mistori targeted towards 6-12 year-olds Malaysia Vietnam
Vietnam ▪ Contains nine essential amino acids and ▪ Initially launched in 2022, the brand has
▪ Barley malt drink that claims to use natural high in calcium, zinc and various vitamins rebranded in 2023 targeting Generation Z
ingredients such as fresh milk, barley consumers with a clearer nootropic, brain-
▪ Powder versions of dairy products are
extract and natural cocoa boosting positioning
losing popularity. In Asia Pacific, liquid
▪ Emphasises containing vitamins B6 and growing-up milk formula is expected to ▪ Peppermint flavour in addition to its
B12 and folic acid for brain health, and grow by 6% CAGR, while powder will original malt taste, with the inclusion of
calcium for height and bone health shrink; liquid drinking milk will grow by 4%, ingredients that boost mental cognition
Sources: Shopee, dutchlady.com.my, nestlemilo.com.vn
outpacing powder milk’s 2%. such as taurine and green tea
19
Explore a wider age range, new formats and occasions
Nido NutriSnax, a milk drink made with fruit Farm Fresh, among the top 10 brands in Dole’s versatile product line, Fruit Pops,
and vegetable purée, straddles the line Malaysia’s dairy market within three years, aims to include children (and parents) as
between a nutritional beverage and snack launches children-specific products target consumers
Philippines Malaysia Singapore
▪ Nido has a strong presence in the ▪ First rolled out Farm Fresh Grow liquid ▪ A shelf stable liquid but can be consumed
Philippines’ growing-up milk formula with growing-up milk for 1-6 year-olds in 2022, frozen as a snack, or added to drinks as a
20% share in 2023 then a powdered variant in 2023 beverage for children - not only offering
▪ As a drinking milk product, it leans more ▪ Farm Fresh Grow Kids product series versatility in consumption but also
flexibility in storage and distribution
into the snacking occasion than a beverage launched through its tea/dessert
complementing meals foodservice brand, Jom Cha ▪ Contains 95% fruit juice and 5% prebiotics,
Sources: Nestlé Philippines YouTube, Jom Cha Farm Fresh official website, Dole Singapore facebook
with natural sweetness
20
Opportunities in lifestage nutrition beyond early life
With declining birth rates and increasing Growing awareness and development of Healthy ageing continues to grow as a
education and awareness, parents are products to support women’s health pressing issue across Asia
committing relatively more of their income As consumers become more conscious of Healthy ageing remains an important focus;
and knowledge to improving their children’s their diets and nutrition intake to support markets in Asia are expected to see 13% of
health and eating habits. There are their personal health needs, women’s the population aged 65 and above by 2030,
innovation opportunities to expand reach health has become an area that has and 17% by 2040. Nevertheless, consumers
within markets and generate value-driven potential for growth in Asia. More women aged 30-64 years old have maintained their
growth across a wider range of categories among Millennials and Generation Z in the proportion of the population while
and occasions from early life nutrition. workforce than in previous generations becoming increasingly aware of healthy
Securing repeat purchase among parents means that their disposable incomes are ageing remedies and diets. This is not only
and growing children may have lasting growing; shrinking households mean fewer relevant in fast-ageing societies such as
positive effects on brand loyalty, with trust people at home to look after. There will be Japan, but also in emerging markets where
in a brand’s values and quality. unique needs of women in Asia to consider. the median age is growing.
Plant-based: The next wave
PLANT-BASED: THE NEXT WAVE 22
22
Market for plant-based gets more complex in move from quantity to quality
Price, taste and texture, along with health and nutrition are key challenges affecting plant-based products’ success with consumers. Asia
Pacific faces an additional challenge of boosting the relevance of plant-based products in a region where alternatives to meat and tofu-
based products are already established. As such, the growth of plant-based food has been driven by rapid innovation, leveraging
consumers’ curiosity and attraction to novelty. In 2023, the hype softened and the base of returning consumers remained limited.
Given that Asia Pacific has lagged behind other regions in the development and adoption of plant-based products, Asian innovators are pre-
empted to challenges faced by their Western counterparts. In fact, consumption growth for Asia Pacific reached its peak in 2021, a year
later than in Australasia, North America and Western Europe. In addition, where markets in North America and Western Europe
experienced declining growth in 2021 and/or 2022 due to inflationary pressures, the Asian market avoided a similar trend, being freshly off
its growth peak. Similar to how the North American market showed signs of maturity in 2023, where priority was in obtaining cost
effectiveness and expanding a stable consumer base, the Asian market is anticipated to move in a similar direction in 2024 and 2025.
A relatively later growth peak than other

regions: Asian markets could anticipate
common key issues and avoid pitfalls.
23
Collaboration with like-minded partners reinvigorates the plant-based experience

Many consumers in Asia who trialled plant-based food in its early stage
of innovation had less-than-pleasant experiences. In order to win these
consumers back, producers and brands should look to re-education and
a revamp of how these products are presented in the market. This will
require collaboration with retailers, restaurants and various other
partners. While it is essential to reduce the gap in taste and appearance
between animal-based and plant-based food in order to reach many
consumers, reducing direct comparisons would also be advantageous.
Green Rebel Foods, Indonesia
The start-up actively partners with foodservice players, through various
dishes (showing diverse applications) and channels:
▪ Collaborated with Tous les Jours Indonesia to offer two limited-edition
products. Made from shiitake mushrooms and non-GMO soy, Green
Rebel’s ingredients were created into a Korean-style noodle-filled
croquette and a “chicken” bun for a limited time only.
▪ Initially a temporary menu item aboard Air Asia Indonesia (under its in-
flight brand, Santan), nasi rendang and plant-based rendang with rice
have now been converted into a permanent dish with the claim that it
was the best-selling in-flight menu item in 2023.
▪ Partnership with Ramen For The Soul in January 2024, where it
produced plant-based broth for shojin ryorin ramen. Source: https://www.facebook.com/touslesjoursindonesia
24
Seeking the highest value-added applications and formats for ingredients

Leveraging complementary ingredients and flavours is essential for plant-based brands in
order to help to balance out “beany notes” and unfamiliar textures. This is also a way for
new categories to adopt plant-based alternatives into their recipes and cater to more niche
consumer groups. For example, Hegg, a powdered egg alternative, partnered with Killiney
Kopitiam in Singapore to produce an eggless kaya (coconut jam) alternative.
For this reason, ready meals have growing potential. In addition, given that distributing
frozen products is costly, shelf stable formats are a whitespace particularly in Southeast
Asia. Both value and volume growth are predicted to surpass that of the wider Asian region
and globally, pointing to the potential of brands in Southeast Asia to lead innovation.
In 2023, Amocan launched shelf stable plant-

based products in Singapore (usually added
to rice, noodles or bread) to complement its
existing vegetarian and animal-based
products. There are three variants:
▪ Thai curry plant-based chicken made with
textured soy proteins;
The SKUs ranged between USD17.50-
▪ Green curry plant-based chicken made from
19.44/kg, which was around 25-30% higher
wheat gluten;
than Amocan’s other canned foods.
▪ Plant-based fishballs made with konjac. Source: https://www.amocan.com
25
Innovations pile into nascent plant-based food categories and emphasise flavour
Next! Foods launched pasta sauces with Oatside’s ice cream foray in November 2023 Shaka Harry’s international debut in 2023
added protein, containing its recently- is made with its well-known oat milk highlights the potential of cuisine-based
introduced Next! Bacon Singapore flavour innovations
Australia India
▪ First made as a plant-based milk, Oatside
▪ Next! Bangin Creamy Carbonara and Super gained share in the dairy aisle in markets ▪ Launching in Singapore, the plant-based
Saucy Bolognese are dairy- and meat-free, such as Singapore and the Philippines range includes finger foods (eg tenders,
and are ready-to-heat nuggets and samosas) and meals (eg
▪ Oatside products use Australian-sourced
▪ The products are chilled, and are shelved oats and are available in exciting flavours keema, biryani and paratha)
in the refrigerated vegetables section in beyond the usual, such as peanut butter ▪ Shaka Harry was first created in 2022,
Coles supermarkets with cookie dough and coffee with mini developed with one of India’s top chefs,
Sources: www.nextfoods.co, mothership.sg, Shaka Harry
chocolate chips and is free from trans-fat and cholesterol
26
Years of R&D give fighting chance for plant-based in other categories

Mimicry tends to be the focus for plant- Market Size 2023, Growth 2023-2024 and CAGR 2023-2028 in Asia Pacific and Australasia
Retail value RSP in USD million (fixed 2023 ex rates, constant 2023 prices)
based food competing with meat/seafood
and dairy. However, there are
Introducing plant-based
opportunities to penetrate other food
options into fast-growing,
categories and by doing so, further value-
Ice Cream dynamic categories allows
add their profile beyond simply mimicry.
USD25 billion brands to experiment with new
Ice cream, confectionery and sauces are
2024 growth 3.5% flavours and textures.
examples where plant-based varieties help
to drive category growth and are growing CAGR 2023-28 3.2%
USD32.4 billion
their share of shelf. This not only provides
2024 growth 3.1%
plant-based brands with opportunities to USD34.5 billion CAGR 2023-28 2.7%
tap into new frontiers for expansion, but 2024 growth 2.6% Pastries
also to invigorate existing categories and CAGR 2023-28 2.2%
provide new alternatives to consumers. USD19.4 billion
Ready Meals 2024 growth 2.9%
Categories that are highly reliant on taste CAGR 2023-28 2.5%
and new sensorial experiences pose great Chocolate Confectionery
USD36.1 billion
potential because consumers have a
2024 growth 2.9% USD16.1 billion
tendency to be more willing to try new CAGR 2023-28 2.9% 2024 growth 5.7%
brands and flavours. The product’s taste CAGR 2023-28 5.2%
Sauces
profile is also likely enhanced by other
Meat and Seafood Snacks
ingredients, such as in ready meals. Image source: brafx on Freepik
Source: Euromonitor International Snacks, Cooking Ingredients and Meals and Staple Foods 2024 edition
27
Opportunities in alternative protein innovation
China, Vietnam, the Philippines and Thailand New production technologies approach Growing competition within more
experienced a drop in plant-based sales commercialisation categories from plant-based options
during the pandemic due to reprioritisation Alternative proteins continue to be a hot Categories such as ice cream, ready meals
of consumer spend; sales started to pick up topic beyond plant-based. Brands such as and sauces are seeing more plant-based
since 2022. All markets are showing positive Cool Haus for example uses precision product development that helps to diversify
growth up to 2028, bar China, where meat fermented whey as its base for ice cream. options for consumers. In categories that
and seafood substitutes is pulling down Companies such as All G Foods from are dependent on new experiences through
overall growth as these products have better Australia are investing in R&D with the goal texture, plant-based SKUs can leverage
reception through foodservice than in retail. to introduce precision fermented products complementary ingredients to elevate
Consequently, China’s size loses share in the into the market in 2024. For cultivated flavours and push value-driven sales
region to other markets, and growth in the meat, Asia is expected to be a key region for through more indulgent, premium product
plant-based market is anticipated to be innovation, enabled by Singapore as a hot offerings despite the absence of animal-
driven by Indonesia, India and New Zealand. bed for trial and production of prototypes. based dairy/meat.
Need states: Path to emotional wellness
NEED STATES: PATH TO EMOTIONAL WELLNESS 29
29
Consumers are seeking the best deals and affordable luxuries

Across Asia, emerging markets have experienced the greatest rise in
cost of living, partly due to their relatively low base compared to
+10 points
international standards. They are also facing rapid development and
globalisation, which has significant impact on economic growth and
consequently, cost of living.
For most Asian markets, the biggest jump occurred between 2022
and 2023; Vietnam’s cost of living index saw the biggest leap during
that period, up 10 points, followed by Indonesia (seven points).
Consumers have recently faced the worst of rising prices and are
being more cautious in their spending, and these habits are +7 points
expected to retain some stickiness through 2024. An exception is +7 points
India, where the cost of living index rose most strongly in 2021 (due
to a recession) before stabilising in later years.
Consumers across these markets have been seeking more
financially sustainable ways to purchase daily essentials and
groceries. This includes shifting their shopping habits and chosen
grocery locations. There is also a change to the way consumers
indulge and relax, especially following the stresses of economic
pressures and the pandemic over 2020-2023. A resulting greater
emphasis on a slower pace of life and affordable luxuries that help
consumers to destress for a low price also feeds into food choices.
30
Consumers go on different pathways in search of emotional wellness
Emotional wellness as an emergent need state in food The spectrum of solutions is vast and growing
The path to emotional wellbeing is part of the need states This has opened up avenues for brands to deliver products that
framework which is the expression of an underlying driver of provide a degree of comfort to consumers, whether it be to
consumer behaviour. Consumers are increasingly primed to focus address more clearly defined concerns such as aiding sleep and
on the desired outcome or intention of their consumption and are relieving anxiety, or more simply to boost moods in that moment.
beginning their consumption journeys working back from this Therefore, addressing need states may come through in the form
point. Most conceivable need states fall into a spectrum of of functional ingredients with a prominent health positioning, or
umbrellas which stretch from more classically emotional or mental infusing positive triggers, such as childhood memories (nostalgia,
through to more distinctly physical, with an intermediate space for emotional connection). Legacy flavours and food familiar to
occupying a hybrid of these two poles. local cultures also benefit, as consumers fall back on tasty
Seeking emotional comfort through affordable food rose in the indulgences that provide a sense of emotional security. Although
turbulent years of 2020 to 2023, as did escapism through foods posing as a competitor to the functional health movement that are
that flourished during the lockdown period. Consumers turned to often perceived as pricier, the resilience of cheaper products that
(at times more expensive) exotic options in response to movement are still satisfying to consumers highlight how their emotional
restrictions. This is expected to stabilise to a preference for cheap needs may be fulfilled through foods in various ways.
and delicious food, especially as consumers in Asia Pacific remain
Consumers in Asia Pacific “like to enjoy life and don’t worry
highly sensitive to price, favouring value. However, as consumers 45% about planning for the future” - up from 39% in 2017
grow more educated on functional foods and ingredients More consumers value the here and now that will reflect in their
compared to pre-pandemic, many of them seek solutions to self- everyday food choices in their path towards being healthy and happy.
care as well. Source: Euromonitor Voice of the Consumer: Lifestyles Survey, fielded Jan-Feb 2023
31
Functional food: Utilise botanicals and biotics as well as other well-known health claims
With growing knowledge and research in the Brands in Asia Pacific typically leverage Top 10 Health and Wellness Dairy Products
gut-brain axis area, brands are expected to other health claims that will help and Alternatives in Asia Pacific and
leverage familiar claims such as immune consumers feel good and boost the Australasia 2024
support and gut health to also emphasise de- perceived healthfulness of the product. The RSP retail value sales in USD million
stressing benefits. This is because, in dairy top 10 health and wellness positioning
products for example, the biggest claim, in indicate high potential claims to leverage.
value terms and as a percentage of the total,
is immune support where related ingredients
such as probiotics are already highly familiar
to consumers. Botanicals are also expected
to rise in popularity as a means to boost
cognition and relaxation. The use of local
herbs lowers consumer resistance and
positions the product as less “clinical”.
Farm Fresh (from Malaysia) launched a

dairy product in 2023 infused with
ashwagandha extract; it claims stress and
anxiety reduction, and better cognitive
function. Farm Fresh is known for
indulgence and a natural positioning.
Source: www.instagram.com/farmfreshmilkmalaysia Source: Euromonitor International Health and Wellness
32
Nostalgic themes remind consumers of the “good old days” and build connection
Imagery and flavour profiles that triggered certain memories were also a way to comfort consumers through challenging times in the
pandemic years. This is not expected to abate in 2024 and years beyond; brands will continue to compete intensely to retain brand loyalty
and, at the same time, address the growing consumer demand for novel experiences. In fact, crossover with the foodservice industry will
also help to inject nostalgic memories and emotions. The potential of foodservice links is driven by polarised consumer attitudes towards
eating out. In 2023, 23% of consumers in Asia Pacific and Australasia said that they wanted to reduce visits to restaurants, however a close
26% claimed that they wanted to increase restaurant visits (according to the Euromonitor’s Voice of the Consumer: Lifestyles Survey in
2023). So while caution in spending remains, there is still a desire to eat out and indulge without the fuss of preparing food.
For example, Nestlé is known for its “Milo van”- a van dispensing Milo during school sporting
events to hydrate and energise school children. In the past years, the brand launched SKUs that
claimed to be made of the same formula as the drinks made in the vans, such as a limited-edition
110ml box drink in Thailand in 2023. In Singapore, Nestlé launched collectible toys (including the
van) with the purchase of Milo powder.
Lotte Group, ranked fourth in Asia Pacific packaged cakes in 2023, has used its strong brand
identity to invoke positive emotions among consumers through nostalgia.
It launched special edition packaged cakes in October 2023 in Japan, with the theme of the
Showa era coffee shops. Flavours included cheesecake (a popular menu item at the Hoshiyama
coffee shop in Sendai) and caramelised pudding (after a coffee shop in Nagoya).
This is part of its strategy in building brand loyalty by highlighting its deep-rooted understanding
of the local market, and ability to help consumers relive positive moments.
Source: Entabe
33
Cheap comfort food competes with functional wellness in providing emotional security
Despite the importance of functional ingredients in addressing
key health issues, the presence of reliable flavours and stable
prices will still remain relevant in this region. Instant noodles
are a good example as Asia’s favourite affordable comfort food
that provides a sense of emotional security. In fact, the top 10
markets globally (per capita volume consumption) are in Asia
Pacific. Brands do launch premium SKUs with higher-cost
ingredients, but consumers tend to stick to a selection of
favourites within a similar price range. Despite most Asian Source: Sarimi YouTube, www.instagram.com/nabati_mi
markets showing some degree of price drops through 2023,
positive retail value growth has still been achieved, indicating
how affordability can help to drive sales growth.
In Indonesia, Sarimi’s 70g packs retailed at IDR2,500 (about
USD0.16, while the market average was USD0.22 per 70g).
Higher-priced options tend to have clearly bigger portions, for
example Nabati Mi Goreng in 85g packs were launched at
IDR3,000 (about USD0.19) in December 2023, a more value for
money choice. Particularly in emerging markets, it is common
for staples to be in smaller pack size for lower cash outlay. For
example, the most common size band for instant noodles in
Indonesia is 65-80g, and 55-65g in the Philippines.
34
Opportunities across a broad range depending on willingness to spend
In markets seeing a negative savings ratio, Further development of ingredients Affordability and value will continue to
consumer sentiments towards the economy supporting emotional wellbeing be a pressing priority
are pessimistic and point to prevalent There is high potential for the growth of Cost of living effects are unlikely to dissipate,
caution towards spending - cheap, comfort products with ingredients and claims that and desire for novelty and premium
food will be an economic choice. In markets support emotional wellbeing, as a new positioning in markets such as India and China
where the savings ratio is stable but frontier for functional food. Consumer will likely require brands to be priced
conservative, consumers might prioritise familiarity with pre/probiotics and growing competitively given the stickiness of cautious
value and appreciate products with simple interest in the gut-brain axis are an spending. Otherwise, the market is limited to
strategies in invoking positive emotions. immediate focus for development, having high-income earners and tier one cities.
positive effects on both physical and mental Meanwhile, keeping cash outlay low will likely
In India and China, where the savings ratio is
health. Pioneer brands have used herbs and impact brands looking to tap into leading
growing alongside costs of living, consumers
launched tea-inspired flavours to mirror their growth markets in Southeast Asia such as
might have money set aside to spend, but
relaxation effects. Indonesia and Vietnam.
many will want to do so mindfully.
Creating impact beyond 2024
CREATING IMPACT BEYOND 2024 36
36
How the three trends will shape food beyond 2024
Life stage nutrition: A focus on early life Plant-based: The next wave Need states: Path to emotional wellness
Growing awareness and development of New production technologies approach Further development of ingredients
products to support women’s health commercialisation supporting emotional wellbeing
Healthy ageing continues to grow as a Growing competition from plant-based Affordability and value will continue to be
pressing issue across Asia options within more categories a pressing priority
Source: Euromonitor Voice of the Consumer: Health and Nutrition Survey, fielded Feb 2023
37
The future of life stage nutrition: Women’s health

Brands focusing on life stage nutrition could more easily transition from early life/children to
women/mothers. Already, major nutrition players within baby food in Asia Pacific are also
offering maternal health solutions such as powder milk, with global company examples
including Nestlé, Abbott and Royal FrieslandCampina. On the demand side, 56% of women
in this region are moderately to extremely concerned of women’s health, indicating that
many women might consider seeking out solutions. In terms of treatment, women in Asia
Pacific tend to be less inclined than those in other regions towards medicinal and
prescriptive solutions; while taking vitamins and supplements is the region’s most popular
method (36% of women). This could point towards a higher likelihood of their accepting
less-clinically positioned edible solutions such as functional food.
Currently, packaged food products that cater to
specific genders are still limited in availability. There Resan is a Malaysian
is whitespace to develop foods to help consumers health brand that
address related concerns. utilises local herbs.
Its soy milk powder
East Asian markets are leading the forefront of
launched in 2023
innovation in this region, with many utilising regional
uses kacip fatimah (a
and local botanicals such as ginseng, typically
tea herb) that claims
addressing menopausal care and reproductive
to aid pre- and post-
health. It will be a long-term development, but
menopausal women.
applications to foods have potential to grow over
time, extending beyond maternal health products. Source: shop.resan.com.my
38
The future of life stage nutrition: Healthy ageing

Given the greater influence of texture on food choices for consumers aged 60+ than any other age group, it is
essential to better cater to older adults by broadening the reach of easy-chew/digest products beyond only
medical and senior homes. Currently, such products are limited in access from main retail channels and are more
easily accessible through hospitals and recommended from doctors.
The senior age group is overall an attractive sector for companies given the sheer growth in size of consumers
within this age bracket in Asia. Companies that are experienced in nutrition and healthcare are exploring
opportunities as well. For example, TG Lite (owned by Syarikat Thong Guan Trading, a major tea and coffee
manufacturer in Malaysia) launched Elderly Noodle in 2023, claiming it to be suitable for consumers without
teeth. However, the product is currently exclusively available on TG Mall (its own online shopping site).
Meanwhile, TSI Group, a pharmaceutical company based in Shanghai, is also exploring opportunities in functional
health food in South Korea with its discovery of an ingredient that supports musculoskeletal health. Source: www.tgmall.com.my
The distribution network and reach of larger packaged food brands can Top Three Barriers to Cooking in Asia Pacific by Age 2023
% of respondents
boost the development and accessibility of foods for senior consumers.
CPRAM, the second-ranked company in cooking ingredients and meals in 24% - I do not have 25% - someone else
Thailand, launched a new series of ready meals in 2023 positioned for older time to cook cooks for me
adults/elderly who desire food that is easy to chew and digest through a 20% - someone else 17% - I do not cook
soft texture. It also considers the nutritional needs of ageing, with claims cooks for me very well
such as no MSG and high protein content. The product’s marketing includes 45-59 60+ 15% - going out to
a TikTok campaign targeted to teens and young adults, which alludes to food 20% - I do not cook eat is more
preparation habits seen in Asia Pacific; one in every four 60+ year-olds and very well
convenient
one in every five 45-59 year-olds do not cook for themselves. Source: Euromonitor Voice of the Consumer: Lifestyles Survey, fielded Jan-Feb 2023
39
The future of alternative protein: Emerging technologies and diversification

In Asia, meat consumption is strongly rooted in local culture and represents a deeply-embedded preference aligned with quality of life and
growing income. These factors make it unlikely that meat replacement will blossom. Even for sustainability beliefs, only 25% of Asia Pacific
consumers chose to reduce meat consumption in 2023 (according to Euromonitor’s Voice of the Consumer: Sustainability Survey, 2023), a
significant gap from the leading choice of environmental action (the reduction of plastic use at 55%). Diversifying meat and protein sources
will be the key positioning that will attract consumers. Ingredient replacement is also a more feasible approach, as sustainable sources
speak to climate-conscious and environmentally-aware consumers. In fact, almost two in three people in Asia agree/strongly agree that
they try to have a more positive impact to the environment through everyday actions, indicating a generally positive attitude towards
sustainable solutions.
Sustainability-led approach to ingredient Precision fermentation expected to focus on More companies enter the cultivated meat
replacement can reap creative results scaling up and commercialisation race despite low commercial possibilities
Researchers and scientists are exploring With the rapid evolution of technology in Cultivated meat represents a long-term goal
ways to address crop and seafood shortages novel foods, precision fermentation has given that Singapore remains the only Asian
affected by climate volatility. Replacing at- attracted investment and undergone country (as of February 2024) to legalise the
risk animal-sourced ingredients in food will aggressive research. sale of cultivated food. However,
allow sustainable application of alternative For example, ScaleUp Bio, a Singapore- investment in this technology is rapidly
proteins. ongoing, typically by start-ups and backed
based provider of precision fermentation
by major meat/seafood companies.
For example, Nissin Food Products Co has facilities has secured partnership with
been developing an eel replacement since companies such as Nourish Ingredients, Maruha Nichiro, for example, is working
2019 given its high price and eel being Ultimeat and Allium Bio to scale up with Umami Bioworks in cell development
declared an endangered species in Japan. products for commercialisation. of cultivated seafood.
40
The future of emotional wellbeing: Function meets feel-good

China and Japan have been the frontrunners when it comes to products offering mental/
emotional wellbeing claims. Products were mainly science-backed, by giants such as Yili,
Mengniu and Glico, using GABA (gamma-aminobutyric acid) to trigger a calming effect.
However, based on Euromonitor’s Product Claims and Positioning data, the number of
packaged food SKUs with such claims in those markets have been declining since 2019.
China has instead seen a huge leap in the number of SKUs with claims such as “energy
boosting”, “cardiovascular health” and even “carbon neutral”. While in Japan, the largest
leap in terms of number of SKUs are claims such as “biodegradable”, “plant-based”, “plastic-
free packaging” and “immune health”. So while there is interest and investment in
emotional wellbeing in the two markets, there are other prevalent competitive trends
around the rise of plant-based, sustainability and the retention of physical health (heart
health, energy and immunity).
Elsewhere, however, other Asian markets have shown growth and even acceleration for
emotional wellbeing claims - South Korea leads, followed by India, Thailand and Indonesia.
Unlike China and Japan, however, marketing terminology focuses on the benefits/effects to
the consumer through the use of medicinal herbs and ingredients, rather than clinical
evidence and detail as strategically employed in China and Japan. This highlights the
importance of the “feel good” positioning and emphasis of the end-need state of the
consumer as a key product attribute; consumers are growing their understanding of
products that cater to their emotional wellbeing, but may still lack familiarity with the
related functional ingredients.
Opportunities for the short term and long term
Short-term opportunities Long-term opportunities
▪ Explore early life nutrition given the emerging market of snacks ▪ Focus on emerging markets such as Indonesia, Thailand and
and meal solutions for children. Consumers are more mindful of India, as these are populous nations with fast-growing packaged
their spending and nutrition intake, but parents are more actively food markets and consumer expenditure increasing as a share of
seeking to improve their children’s diets. Be creative with total GDP. Markets such as Vietnam and the Philippines also
introducing new eating occasions and tap into the blurring of present vast opportunities but certain categories may still be too
product formats typically unique to children or adults. nascent for complex innovations. In addition, they may take a
longer time to penetrate given a challenging distribution
▪ Focus on value-added innovation seeing as the majority of
landscape and the leadership of incumbents.
countries in Asia Pacific and Australasia are slow to improve their
sentiment of their local economies and are wary of further price ▪ Approach innovation by anticipating long-term trends that will
increases in future. While affordability is key to countries affect Asian markets, namely food security, the ageing population
suffering relatively more through poor performing economies, and the growing disposable income of women. These three
such as Malaysia and the Philippines, other Asian markets might themes are seeing strong research and development in food to
be more willing to spend - such as Singapore - albeit mindfully address their unique needs.
and with greater scrutiny than before. ▪ Brand loyalty is being shaken up as consumers are affected by
▪ Lead the introduction of products with unique health offerings price increases faced over the years and are taking a deeper view
such as relaxing, stress-relieving and energy boosting (from a into the brands they buy from (to see if they match their values
mood perspective). Utilise local/regional medicinal herbs and and principles). Brands must work hard to prove they are not
ingredients that consumers are willing to accept. easily substitutable and offer something more beyond taste.
42
Growth will be led by emerging markets, while developed markets stabilise

India, Indonesia, Vietnam and the Philippines will continue to front the Packaged Food Growth in Asia Pacific and Australasia 2023-2028
region’s packaged food growth, but Thailand is predicted to emerge as % CAGR in constant USD terms (fixed 2023 exchange rates)
one of the regional growth leaders. This will largely be led by cooking China 1.7%
ingredients and meals and staple foods with an increasingly polarising
market. On the one hand, economic choices will retain their popularity; South Korea 1.4%
on the other hand, premium choices and brands will enjoy a resurgence
Japan 0.1%
in sales due to the return of more affluent expats and a general shift in
preference for healthier, more premium and convenient options that
Hong Kong, China 2.3%
come with a steeper price tag. There is an opportunity to target the
mass market, whose demand is steadily rising, and also high-income Taiwan 2.2%
consumers who can afford to grow the premium segment. Vietnam 5.5%
India 6.4% Philippines 4.2%
The outlook for previously lacklustre performing markets such as Hong
Kong, Japan and South Korea is expected to improve over the forecast Singapore 2.1%
Thailand 5.2%
period. Hong Kong’s market will benefit from the return of tourists
especially categories such as baby food. South Korea’s formerly Malaysia 2.9%
struggling dairy products and alternatives market is predicted to return Indonesia 6.7%
to growth as the economic situation improves; with plant-based Australia 1.4%
expected to be a positive growth driver applying to drinking milk, CAGR range
yoghurt and cheese. In Japan, most categories are seeing a continued 0.1% 6.7%
New Zealand 2.8%
fall in demand. Winners in the market will ride on sustained brand
loyalty due to consumer trust in health and sustainability commitments. Source: Euromonitor International Snacks, Dairy Products and Alternatives, Cooking
Ingredients and Meals, Staple Foods
TOP OPPORTUNITIES IN ASIA’S PACKAGED FOOD: 2024 AND BEYOND
For Further Insight please contact
Emil Fazira
Insight Manager - Food, Asia
[email protected]
www.linkedin.com/in/emil-fazira
TOP OPPORTUNITIES IN ASIA’S PACKAGED FOOD: 2024 AND BEYOND 44
44
Experience More
This research from Euromonitor International is part of a global strategic intelligence system that offers a complete picture of the commercial
environment. Also available from Euromonitor International:
Industry
Industry reports are updated annually and provide internationally comparable statistics on a wide range of consumer goods, services
and industrial markets.
Country
Internationally cross-comparable data covers more than 210 national markets, with continuous updates providing in-depth strategic
analysis of the competitive landscape and current market trends
Company
Strategic analysis of the world’s largest companies and their activities derived from a global country by country research program.
Economic
The world's most comprehensive market research and in-depth data and analysis on national economic performance and market sizes.
Consumer
The world's most comprehensive market research and in-depth data and analysis on consumer market behaviour.
© Euromonitor
© Euromonitor
International
International
45
Euromonitor International network and coverage
16 OFFICES
To find out more about Euromonitor
International's complete range of
business intelligence on industries,
countries and consumers, please visit
www.euromonitor.com or contact your
local Euromonitor International office:
Bangalore +91 80 4904 0500
Cape Town +27 21 524 3000
Chicago +1 (312) 922 1115
Dubai +971 4 372 4363
Dusseldorf +49 (0)211 890944 0
Hong Kong +852 3796 3604
London +44 (0)207 251 8024
Mexico City +52 55 9990 3120
Santiago +56 2 2 9157200
São Paulo +55 11 2970 2150
Seoul +82 2 6123 0200
Shanghai +86 21 603 21088
Singapore +65 6429 0590
Sydney +61 2 9581 9200
100 COUNTRIES 210 COUNTRIES Tokyo +81 3 3436 2100
in-depth analysis on AND TERRITORIES Vilnius +370 5 243 1577
consumer goods and demographic, macro- and socio-economic
services industries data on consumer and economies
© Euromonitor
© Euromonitor
International
International
46
Tailor these insights to your business

Passport Plus connects you directly to our experts. Through tailored presentations,
expert consultations, and workshops, we help you quickly develop expertise,
pressure test ideas, or inspire new thinking to help shape your future strategy.
Watch this video to learn more and then reach out to your Euromonitor contact to explore more
how you can engage with our teams on this topic.

Top Opportunities in Asia's Pack

Uploaded by

Copyright:

Available Formats

Top Opportunities in Asia's Pack

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Top Opportunities in Asia's Pack

Uploaded by

Copyright:

Available Formats

Top Opportunities in Asia’s Packaged Food:

2024 and Beyond

For usage requests and permission, please contact us

The data included in this report is accurate according to

Drivers and consumer shifts

Life stage nutrition: A focus on early life

Plant-based: The next wave

Need states: Path to emotional wellness

Creating impact beyond 2024

Australasia Australasia Australasia Australasia

2023: Some Asian markets finally stabilised, others continued to flourish

2024 follows the pandemic, inflationary pressures and geopolitical instability

Consumer Attitudes in APAC 2023

49% believe that climate change

Consumption changes also affect channel preference

Help consumers develop healthier lifelong eating habits

There is a growing market beyond powder milk formula

0-2 years old 3-5 years old 6-10 years old

Explore a wider age range, new formats and occasions

Opportunities in lifestage nutrition beyond early life

A relatively later growth peak than other

Collaboration with like-minded partners reinvigorates the plant-based experience

Seeking the highest value-added applications and formats for ingredients

In 2023, Amocan launched shelf stable plant-

Years of R&D give fighting chance for plant-based in other categories

Opportunities in alternative protein innovation

Consumers are seeking the best deals and affordable luxuries

Consumers go on different pathways in search of emotional wellness

Farm Fresh (from Malaysia) launched a

Opportunities across a broad range depending on willingness to spend

How the three trends will shape food beyond 2024

The future of life stage nutrition: Women’s health

The future of life stage nutrition: Healthy ageing

The future of alternative protein: Emerging technologies and diversification

The future of emotional wellbeing: Function meets feel-good

Opportunities for the short term and long term

Short-term opportunities Long-term opportunities

Growth will be led by emerging markets, while developed markets stabilise

For Further Insight please contact

Euromonitor International network and coverage

Tailor these insights to your business

You might also like