IMCD APAC Market Insights:
Making Affordable and Accessible F&B to Asian Consumers
Discover how IMCD tackles the current Food & Beverage (F&B) issues in the Asia Pacific, with our trend-based solutions and technical presentations developed to inspire food innovation.
Discover our approach to reformulations.
F&B Products with Economic claims on the rise in Asia Pacific
Research shows that food prices are expected to rise by 20% in 2022 and start easing in 2023¹. This has heavily affected consumer purchasing decisions as more than 62% of consumers noticed the rise in food prices². The after-effects of the pandemic, issues in the supply chain caused by political conflicts, and even global warming and climate change, are factors leading to the increase in F&B prices. These factors have a significant impact on our stable supply of raw materials, making the process highly volatile, which makes matching the availability of F&B with Asia's current spending power challenging.
A report from Innova Market Insights indicated that 1 in 3 Asian consumer feel the effects of inflation due to the price increase of F&B.3
To adapt, consumers look for more affordable, low-cost options – whether switching to a different brand or store altogether.4
Hence, you'll find in Asian markets a significant presence of house brands, discount stores and such.
¹Innova Report, 2022
²Innova Lifestyle & Attitudes Survey 2022
3Innova Lifestyle & Attitudes Survey 2021
and 2022
4Innova Market Insights: Affordability Comes to
the Fore, 2023
Diving down to the specific categories for the products launched in Asia Pacific, Sweet Biscuits and Cookies, Seasonings, and Coffee have launched the most products with the positioning of being economical from 2018 to 2022, despite a drop during the pandemic.5 This can be attributed by various reasons such as:
- Sweet Biscuits and Cookies: Manufacturers are looking for alternatives to overcome the supply and price constraint for eggs, sugar and wheat
- Seasoning: Due to the increased convenience as an alternative to home-cooked meals
- Coffee: Coffee producers are reformulating and relaunching their products with the issues in the sugar supply chain and the sugar tax
5Innova Market Database, APAC, 2018-2022
Key market examples of how countries are adapting to the need are:
Consumers began shifting brands to address inflation concerns, giving way to new players and house brands. To adapt to the redefined consumer behaviour, brands are now more conservative in launching new products.
At IMCD, we tap on our expertise and market knowledge to provide value-added solutions that address challenges in the current Asian consumer behaviour.