, APAC
Photo by Thirdman via Pexels

What brands can do to drive growth of snacking in Asia

Packaged food sales in Asia Pacific grew by 2.5% between 2018 and 2023.

As food spending rises across Asia, brands must persuade consumers to prioritise quality and experience, even in a market where trading down to more affordable options is easy. 

According to Euromonitor International, food manufacturers and restaurateurs need to show that joy, satisfaction, and premium experiences can be delivered at a reasonable cost to sustain growth amidst fluctuating prices.

Packaged food sales in Asia Pacific grew by 2.5% between 2018 and 2023 and are expected to reach a 2.6% compound annual growth rate (CAGR) between 2023 and 2028. 

The report noted that brands must clearly demonstrate the value of their products, whether by enhancing daily routines or making impulse buys more rewarding.

A key aspect of snacking in Asia is the preference for smaller pack sizes. Currently, 74% of chocolate tablets in Asia Pacific are under 50 grams per pack, compared to just 16% in Western Europe. 

“This not only allows for lower prices but also accounts for the developing tastes of consumers who might not be used to the richer mouthfeel of certain snacks and flavours such as chocolate,” the report said.

It added that this preference gives brands an opportunity to introduce more value-added products whilst keeping prices accessible in a market where consumer spending is cautious.

China dominates the regional snack market, projected to account for 48% of total snack sales in Asia in 2024. However, growth is expected to plateau, with only a 1% retail value CAGR through 2029 due to conservative spending.

Meanwhile, Thailand and the Philippines are key growth markets, with retail value CAGRs of 7% and 5%, respectively. 

In China, brands are succeeding by targeting specific consumer behaviors, such as Mars with its RESPAWN gum brand, designed for gaming occasions. With Asians accounting for a significant share of global mobile and online game sales, this strategy taps into a relevant snacking opportunity that could be replicated in other emerging markets.

To thrive, brands are urged to add value to their products by aligning them with key consumption occasions, whether driven by health benefits or emotional triggers like indulgence. Recent product launches in Asia Pacific have increasingly targeted niche consumption occasions and specific consumer segments. Brands should focus on enhancing daily snacking routines, exploring untapped times of day, and utilising digital engagement tools to drive impulse purchases. 


 

Follow the link for more news on

Join Retail Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Chinese fine dining finds its next course in Singapore
The city-state’s high spending power and big Chinese commune make it an ideal entry point.
Raffles City reinvents itself with experiential retail
The mall has revamped 111,000 sq ft of retail space as part of a major redesign.
Stores
TikTok ‘shoppertainment’ drives mega-sale hit
Videos on the platform are used not just to entertain but also to drive e-commerce.
E-commerce
Mars Wrigley bets on Asia’s chocolate boom
The US company expects the region’s rising middle class to eat more M&M’s and Snickers.