Trend: Affordability and Accessibility
Nestlé’s strategy of focusing on product affordability and accessibility appears to have paid off, as the company saw further expansion in its business in emerging markets, even amid this year’s economic and inflationary turbulence.
Nestlé released its monetary effects for fiscal 2022 in February 2023, announcing an overall year-on-year expansion of biologics sales of 8. 3% to CHF 94. 4 billion ($136. 5 billion) and a 16% increase in operating profit to CHF 16. 1 billion ($23. 3 billion). . ), profit margins would have fallen by 30 foundation issues (0. 3%) to 17. 1% in total.
Trend: Localization
Coffee consumers in the Asia-Pacific region have been found to be making purchasing decisions based on location and innovation in ready-to-drink formats, according to industry heavyweights such as Nestle, Suntory and Movenpick.
In this edition of FNA Deep Dive, we spoke with several of the biggest coffee brands, as well as industry pioneers in the APAC region, to take a closer look at the top trends driving expansion in this long-standing beverage sector.
Trend: Sustainability; Proteins of Choice
Global food giant Kraft Heinz told us earlier this year that investment in a modernised facility and new sustainability commitments reaffirmed its commitment to the Indonesian market, and also revealed that it was exploring opportunities in the meat substitute sector.
Kraft Heinz invested a total of IDR 1. 2 billion (US$84 million) in capital investments to modernize this site, installing improved treatment equipment, solar energy and wastewater control systems.
Trend: Sustainability
Earlier this year, South Korea gave the green light to using recycled PET plastic to make new food and beverage boxes as part of its national sustainability strategy, taking inspiration from the art of foreign brands such as Coca-Cola and PepsiCo.
The South Korean government has proactively pushed its sustainability goals to halve its plastic waste production, as well as more than double recycling rates, from 34% to 70% by 2030.
From its repository of recycling-related regulatory updates, the government announced that as of January 2023, recycled PET is approved as a raw material to make new food and beverage boxes for use in the food and beverage system.
Trend: Snacks; Familiarity with the brand.
Snack giant Mondelez International has stated that familiarity with the logo and customer demand for more indulgent nutrition on a one-sided basis are key drivers for the expansion of the snack market in the AMEA region.
Earlier this year, Mondelez released an edition of the findings of its State of Snacking 2022 report targeting the Asia-Pacific, Middle East and Africa (AMEA) region that was consulted by FoodNavigator-Asia, with several key insights focused on the shopping habits of customers in this region. .
One of their key findings is that familiarity with lopass is incredibly vital for AMEA consumers, and many are willing to go the extra mile to get their favorite, familiar snacks.
Trend: Alternative Proteins
Creating a sustainable food supply to meet population demands will require more than just a focus on growing the alternative proteins sector despite its current hype, industry experts have said.
Alternative proteins have been one of the biggest trends to hit the food and beverage industry in recent years, with many believing they constitute the solution to creating a sustainable food source to feed approximately 10 billion people worldwide by 2050.
But despite its immediate expansion and the voluntary interest in this sector by primary brands and start-ups, experts question the veracity and usefulness of focusing too much on this sector to the detriment of the progress of others. forward-looking solutions.
Trends: Tea Trends; Product innovations
Tea-based beverages are emerging as a developing trend in the APAC region, however, experts noted that brands want to incorporate novelty and excitement into their beverage inventions to attract the attention of younger consumers.
Tea brewed as a hot beverage has been a popular and classic beverage for many years in many parts of the world, adding many East Asian markets, such as China, and those in the Middle East, such as Turkey, and continues to gain traction among consumers in many APAC markets.
Many brands have put a lot of effort into innovating in the tea category, recognizing this diversity of refreshing or functional options, big brands such as Unilever.
Trend: Alternative Proteins
Taiwan’s largest plant-based food manufacturers have claimed that consumers are increasingly adopting vegetarian diets for sustainability and health reasons as opposed to religious factors, and that government policies have helped propel further growth.
Taiwan’s Council of Agriculture passed a climate bill earlier this year mandating government departments to promote low-carbon diets, including plant-based and locally sourced foods.
This was preceded by lobbying through local civil society organizations, which managed to gather enough politicians to pass the bill.
Trends: Snack Trends
The Asia Pacific snack category has noticed a predominance of salty and highly spicy flavors, as well as customers’ personal tastes for familiar products, while best-for-you features have obviously also gained popularity, according to major industry players.
The snacking industry was one of the few to truly flourish both during and after COVID-19 pandemic-imposed lockdowns, managing to both survive and thrive even in the face of consumer concerns regarding inflation and price hikes.
Asia, Middle East and Africa (AMEA) data from heavyweight Mondelez, collected from several markets, including China, India, Indonesia and Australia, showed that while 87% of consumers here are legitimately involved in the effects of inflation, 81% of consumers here will still have a way to fit snacks into their budget.
Trend: Alternative Proteins
FAO and WHO have debunked four misconceptions and misconceptions about cell-based meat, ranging from the risk of developing tumours to a negative effect on the microbiome.
In a report published earlier this year, which presented perspectives from regulators, researchers and industry experts, it assessed key food protection considerations of cell-based inventions and methods for customers to understand this category.
Part of this involved commentating on several concerns that were garnering significant media attention:
“Given the attention they have received, those considerations have been taken into account through the Technical Panel, although it has not been conceivable to describe a number of occasions consistent with the existing understanding of the applicable science that could harm consumers,” the report says. he explained.