Heng Hong Tan, Senior Food and Drink Analyst, APAC, Mintel
The APAC food and drink industry grappled with numerous changes and challenges in 2023 as inflationary pressures dampened consumer spending confidence. Escalating food costs have forced consumers to adopt a more discerning approach to their food choices. Brands have responded by making food and drink more accessible to a broader segment of consumers by introducing varied pack sizes at more affordable prices. Multipurpose products have gained traction among value-conscious consumers, with 45 percent of New Zealand consumers agreeing that food or drinks that can be used in multiple recipes represent good value, according to Mintel Global Consumer research.
Amidst a worsening climate crisis, consumers hold food and drink companies accountable for maintaining their sustainability commitments. Mintel's 2023 Global Outlook on Sustainability reveals that 45 percent of Australian consumers believe their country is experiencing the adverse effects of climate change, and 40 percent of Australians agree that companies can do more than governments to change the world.
To achieve their sustainable packaging goals, companies have accelerated their transition towards eco-friendly packaging solutions, including increasing the proportion of recycled polyethylene terephthalate (rPET) content in their packaging materials. In markets lacking government-mandated deposit-refund systems (DRS), companies are introducing initiatives to incentivise consumers and boost the collection rates of PET plastic, aluminium cans, and cartons, which will subsequently serve as feedstock for producing new packaging.
Moving forward, Mintel's 2024 Global Food and Drink Trends highlight four trends where brands can help consumers live longer, healthier lives, balance their needs for health and pleasure, and unlock new conveniences from technology like AI.
With Aged Reframed, Generation X, who are 44-58 years old, are pioneering a new approach to healthy ageing to help them thrive in their diverse lifestyles, now and for decades. Led by Gen X, aging concerns that were once stigmatised or considered taboo — such as menopause — are now being discussed openly.
The new focus for our ageing society will be extended healthspan — the period of life spent in good health. This is a significant shift, as population ageing is a defining global trend of our time.
Brands must consider middle-aged and older adults' various nutritional, physical and mental health needs. Opportunities to improve healthspan include maintaining brain function with age and functional health solutions for everyday problems like disrupted sleep. In Australia, 35 percent of consumers aged 45+ would like their diet to help them sleep better, according to our research.
In Trust the Process, consumer scrutiny about the use of processing in the food and drink industry is intensifying. Fueled by discussions of highly, overly or ultra-processed food (UPF), the enthusiasm around processing will inspire consumers to look more closely at ingredients, nutrition and production methods. In this way, "ultra-processing" is the latest evolution of terms like "junk food" or "clean label." In China, 79 percent of consumers say eating less processed foods effectively improves health.
Empowered with more information, people will reconsider when and how often they consume processed food or drink. While moderation is a crucial tactic for highly processed products, there is growth potential for minimally processed brands that share the benefits of processing in terms consumers understand and can relate to. Minimally processed products, such as frozen produce, fresh bakery items, or natural canned soup, should share advantages such as enhanced nutrition, longer shelf lives, and reduced environmental impact.
Climate Changes, Comfort Endures demonstrates that sustainability is an expectation, not a marketing message, during times of economic challenge. As global warming causes more frequent and catastrophic weather events, companies are intensifying efforts to operate sustainably and to produce planet-friendly food.
However, for many food and drink consumers worldwide, the importance of sustainability as an essential purchase motivator has yet to be deprioritised due to the rising cost of living. Consumers still feel alarmed by the destructive ecological changes that are happening now.
News stories continue to highlight accelerating global warming patterns and extreme weather events. As these challenges intensify, consumers expect brands to intensify their efforts and take the lead in tackling the issues without passing the costs to consumers. In Japan, 60 percent of consumers are prepared to pay the same price as regular food with environmentally friendly packaging. In comparison, another 21 percent are willing to pay less for environmentally friendly packaging than regular ones.
But with food inflation remaining high, many consumers still need to acknowledge the importance of buying sustainably yet prioritise affordability and taste.
Finally, the Eating Optimised trend shows how consumers turn to technology to streamline meal planning, shopping and cooking. Convenience has always been an evolving concept, but the pandemic has accelerated consumers' desire to find shortcuts to quality food and drink experiences in their day-to-day lives.
As more consumers become used to the helpful role that technology is playing in their lives, they will be more interested in and trusting of emerging technologies to help them optimise their plans for meals, snacks and drinks.
High-tech tools like artificial intelligence (AI) and augmented reality (AR) will help consumers find their ideal balance between occasions that can be put on autopilot, such as meal planning, shopping, cooking, or even eating, and the times when they have the drive to get creative in the kitchen. In New Zealand, nearly half (46 percent) of consumers agree AI will make daily chores easier (e.g. time-saving tips for cooking and cleaning).
See more insights from the 2024 Buyer's Guide below:
