ASEAN’s Confectionery and Snacking Trends Shift Towards Value and Innovation
ASEAN’s Confectionery and Snacking Trends Shift Towards Value and Innovation
Trends
Confectionary and snacking products are very popular across the ASEAN region. At a retail level, they form two very distinct categories with confectionary being divided into chocolate, non-chocolate, gum, mints, and sweets. While snacking encompasses a very broad array of savory items like chips, nuts, and crackers. Some retailers will also include sweet biscuits in their snacking category.
The overarching consumer trend we are seeing across both categories is value. Put simply, consumers are looking for quality products at affordable prices.
With increased competition in these categories from domestic players and imported brands, consumers have more choice. In the past it was widely accepted that imported products from Western countries were of higher quality and had greater shelf appeal. This is no longer the case.
To appeal to an increasingly sophisticated consumer many local brands have really upped their game in terms of quality and the attractiveness of their packaging. Packaging innovation is also driving demand for chocolates which are becoming a popular item for gifting.
Themed, limited time offers for Valentine’s Day and Halloween are on the rise and several confectionary brands are leveraging these events to introduce novelty in what is considered a very mature category. Retailers are also backing these themed occasions with store wide decorations and promotions.
Sub-categories
We’ve seen a slight increase in consumer demand for healthy products across the region, but our observation is that this trend is still in its infancy when compared to Western markets. The same is true for organics and sustainability.
In Singapore, buyers are becoming more sensitive to products with high sugar levels as the Singapore government continues its “War on Sugar” to combat rising numbers in diet-based diabetes.
The chart shows the most popular categories in retail according to distributors in the region. Source: 2022 Annual Incite Distributor Survey.
Innovation
As the ASEAN markets develop in sophistication, savvy consumers are much more inclined to purchase products that meet the following key criteria:
1. Good quality (this is a given)
2. Attractive packaging (no longer the niche filled by imported brands)
3. Great pricing (imported brands need to ensure they are closely examining their cost efficiencies to ensure pricing is competitive)
Eureka is a great example. When this quality Malaysian brand revamped their packaging, they instantly gained greater support from retailers, increasing their share of shelf, and driving volume with competitive pricing. The move also opened the door to export opportunities in neighbouring markets including Singapore, Thailand, and Hong Kong, where the brand continues to thrive.
To stimulate sales and drive awareness the brand also looked for ways to make it easier for consumers to purchase. Branded vending machines such as the one depicted below have been a huge success from this perspective.
Online sales are also on the rise as consumers opt for the convenience of door-to-door delivery. Many brands have shifted gears to support ecommerce sales with aggressive digital marketing campaigns.
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