Akankshya Mukherjee(intern@imaws.org)
Mintel, the authority on what consumers want and why has released the new edition of APAC Food and Drink Landscape today. It examines the current consumer trends and market developments in the region’s food and drinks business over the last 12 months, focusing on three themes: inflation and value, physical and mental wellness, and the Next Generation of Sensory Experiences.
Jolene Ng, senior global food and drink analyst at Mintel, discusses brand strategies for assisting APAC consumers in managing rising living costs as value becomes the primary motivator for their purchasing decisions. This and other recommendations are based on research and the perspectives of regional food and beverage experts.
Inflation and Value Budget
Conscious shoppers will shop at lower-cost retailers and switch brands to save money on food and beverages. This presents grocery businesses with both a danger that customers will migrate to better-value competitors and an opportunity to attract them by providing savings worth a trip to the store. Price promotions for non-perishable staples would be especially appealing to customers, who prefer shelf-stable and frozen items that can be stored for extended periods of time.
Furthermore, indulgent categories will remain popular. We’ve seen consumers indulge themselves for comfort during the pandemic. However, when funds tighten, more economical delights will be required. Retail firms can thus fill the treat hole left by reduced out-of-home spending by offering food service-inspired snacks at lower prices.
Inflation also gives an opportunity for innovation in the private-label salty snack segment. Now is an excellent time for private-label snack brands to highlight product quality and present their offering as low-cost options. Adding new flavor options and leveraging digital technology will be critical to expanding and reaching a new customer base.
Physical and mental health
Covid-19 altered people’s daily routines, disrupting normal sleep cycles in people of various ages. According to Mintel’s research on Indian consumers’ mental and emotional well-being, 66% of Indian adults believe their sleep troubles (such as sleeplessness and weariness) have remained the same or worsened during the pandemic. As a result, consumers of all demographics require food, drink, and VMS solutions that address sleep habits and concerns in order to reach strong mental health and wellness. Aside from sleep, brands can help customers manage stress and anxiety by providing individualized nutritional support for hormone balance and optimal health.
As witnessed in China, the developing edible beauty trend has created opportunities in the food and beverage business. According to our research, 67% of Chinese female consumers believe that beauty supplements aid improves overall body function. Food and beverage items could capitalize on this pre-existing customer perception by providing holistic health solutions. Post-workout drinks with additional cosmetic advantages, for example, could be appealing.
Sensory Experiences of the Future
The cocooning lifestyle has prompted researchers to look for ways for consumers to enjoy bakery products at home. Ready-to-bake frozen products, particularly those that can be toasted or thawed quickly, have grown in popularity in Japan due to their convenience and longer shelf life.
There are numerous additional strategies to increase bakery product consumption, but the unique visual presentation will be critical, as our research shows that 38% of Japanese consumers believe that the presentation of a dish is equally as significant as its flavor. Brands will be expected to improve their health credentials and offer better-for-you options in an inherently indulgent category, particularly for the growing number of health-conscious consumers.
In the meantime, brands in the carbonated soft drinks (CSD) market will be exploring methods to employ flavors to help consumers express their interests and cultural identity. Floral and plant flavors have the potential to grow in CSD and can be linked to local culture. Sakura/cherry blossom, for example, is a floral flavor that is typically associated with Japan. The strategy of anchoring flavor with cultural allusions will also offer the flavors a deeper meaning beyond taste.
