Food companies in APAC focus on health, convenience amidst rising costs

These are now the key priorities for packaged food companies in the region.

Food companies in the Asia-Pacific (APAC) region are innovating with a focus on health and convenience as input costs, especially for oils and fats, continue to rise.

According to GlobalData, consumers are prioritising healthier food options, even amidst economic pressures, and are willing to spend more on products that support their well-being. It added that health and convenience are now the key priorities for packaged food companies in the region.

“The World Health Organisation (WHO) has linked processed foods, especially ultra-processed foods, along with tobacco and alcohol, as contributing to global health issues and the death of millions,” Bokkala Parthasaradhi Reddy, lead consumer analyst at GlobalData, noted.

“In addition, advocacy groups are clamoring for labeling ultra-processed foods in the same category as tobacco and alcohol,” he added.

Deepak Nautiyal, consumer and retail commercial director for APAC and ME at GlobalData, also added that the demand for healthy food remains strong even with rising prices.

“Food innovation is gravitating to healthy and convenient products as companies try to align their products to consumers’ health goals and busy lifestyles,” he said.

Examples include Mission’s Protein Wholemeal Wraps in Singapore and Malaysia, which offer plant-based protein and fiber, and Freshippo’s 4.0 Fresh Milk in China, enhanced with membrane filtration for better taste and nutrient retention.

As per a recent GlobalData survey, about 55% of respondents are concerned about their finances, whilst 49% are focused on their health. The survey also revealed that 85% of consumers prioritise convenience in food purchases.

“By developing functional foods that cater to health-oriented consumers, brands can enhance loyalty and tap into new demographics,” Reddy said.