Discover 11 hot industry trends, what they mean for businesses, and how to capitalize on them for success in 2019 and beyond.
Health has become a crucial factor in purchasing decisions for Asian consumers, many of whom are on the lookout for inherent health benefits and natural ingredients. ‘Better-for-you’ food and beverage products with added functional ingredients are likely to appeal well to consumers.
Health-conscious Asian consumers are gravitating towards food and beverage products with non-GMO claims. Between 2010 and 2015, the market saw a 480% increase (42% CAGR) in new non-GMO product launches. Non-GMO bakery, snacks, dairy and baby products are particularly well received in Malaysia and Hong Kong.
The ready-to-eat segment extends from snacks to complete meals and incorporates several of her trends as consumers display a growing appetite for new healthy ingredients, more convenient forms, and novel concepts. There is also observable interest in ethnic recipes as well as vegetarian and vegan products.
The healthy eating trend continues with more consumers reaching for ‘superfoods’, or foods associated with super health benefits. Innova Market Insights has observed a 52% increase in new product launches with superfood claims, and the trend is expected to continue into 2019.
Franchise food outlets have become an integral part of the urban lifestyle for the convenience that they offer. While many franchises seek to expand their product offering, the base of sales remains the snack and lunchtime trade. Asia is very welcoming to new franchise brands, which encourages cross-pollination and greater brand diversity across the region, especially in developing nations.
The global Halal food market has grown significantly in the past few years, powered not only by the international Muslim community, but also by its increasing popularity among millennials. Asia is a magnet for new Halal product launches, driven primarily by demand from Indonesia, Malaysia and Singapore.
Today, three in five consumers who purchase kosher products do so for quality, rather than religious reasons. Indeed, kosher products are gaining popularity beyond the Jewish community as more people believe that consuming kosher products can help protect them against food-borne illnesses, as well as food allergies and sensitivities.
Organic is among the fastest-growing product health claims in Asia, accounting for 21% of all health claims in 2017. “Organic”, “no preservatives” and “all natural” are claims that now feature highly on new product launches. India, Malaysia and China are the most popular markets in Asia for new organic products.
The rise of private label products has been one of the most noteworthy trends in recent years as brands seek to differentiate themselves through unique identities and premium experiences. Globally, private label alcoholic beverages, especially beers, have proven to be popular. The premiumization of quick, everyday meals is also expected to continue.
The vegan diet is steadily shifting from a niche movement to a mainstream lifestyle. According to Innova Market Insights, more vegan products were launched in Asia (20%) compared to North America (16%) in the last five years. There has also been a 27% increase in products marketed on veganism and convenience.
The market for meat-free and meat substitute products is increasing in tandem with a growing vegan, vegetarian and flexitarian community worldwide. This is bolstered by ongoing concerns surrounding the sustainability of the global food chain and a worldwide call for greater transparency in ingredient sourcing.