Recently, data and analytics firm GlobalData said that with rising health awareness and changing dietary preferences, functional snacks will reshape the food industry in the Asia-Pacific region, driving the rising demand for functional foods in the region.
At the same time, growing awareness of lifestyle-related diseases and the importance of preventative care are driving consumers to actively seek out foods that can help improve health outcomes and overall well-being.
Priyanka Jain, Consumer Analyst at GlobalData, commented: "Despite the abating concerns about COVID-19, APAC consumers are still gravitating towards natural, organic and functional foods, which are believed to help alleviate health concerns. ”
This is in line with the findings of GlobalData's Q4 2023 survey, which revealed that 62% of APAC consumers often or always consider how a product or service affects their health and wellbeing.
Health trends are driving the demand for probiotics and nut-based snacks. Thus, the Asia-Pacific health and wellness food market grew at an annual rate of around 7-9% from 2017 to 2022.
As consumers return to pre-pandemic lifestyles, there is a growing interest in foods that enhance physical and cognitive alertness, reduce fatigue and stress, and support relaxation and sleep.
Tim Hill, Director of Key Accounts at GlobalData Singapore, noted: "* remains a major barrier to the penetration of healthy food into the highly cost-conscious retail market. In addition, amid high inflation and the protracted Russia-Ukraine conflict, food manufacturers are under pressure to pass on these high input costs to consumers to preserve profits. ”
Jain adds, "As a result, manufacturers are forced to strike a good balance between the health benefits. Moreover, increasing participation in physical activity will spur the demand for functional on-the-go products, especially snacks and meal companions. ”
Hill concludes that functional or fortified foods have always been a niche market in the Asia-Pacific region, mainly because they are higher compared to regular foods.
In order to expand the consumer base, manufacturers need to emphasize the benefits associated with product consumption.
Hill said well-known companies are also exploring alternative ingredients and production technologies to create healthier alternatives, with more personalized claims such as "promoting gut health and circulation" and "boosting energy."