The food and beverage landscape today is transforming faster than ever before, having to keep with consumer tastes and demands that are evolving faster than any point in time.
While health and wellness in particular has been the cornerstone of many developments in the industry, from the plant-based sector to the ongoing functional food beverage boom, the fact is that today consumers are seeing this as a non-negotiable part of their purchases and have evolved to demand even more out of their regular food and drink.
One clear shift that has come about in the recent past has been a returning demand for indulgence, but now with the caveat of being able to feel good and less guilty when opting to make an indulgent choice.
“We are seeing an overarching demand for indulgence really guiding many of the trends in the industry today, but with the added need for something that really makes consumers feel better about themselves whether it means feeling happier or healthier or both,” ofi Head of Asia Pacific Marketing Jennifer Anarna told us at a closed-door event commemorating the launch of the firm’s first regional TrendBites report.
“What food and beverage CPG brands now need to look at is a holistic approach to product innovation — there is no way to only consider one dimension such as purely healthy or purely tasty any longer, but more of a multi-dimensional approach to suiting consumer needs such as towards better skin or better sleep.”
This underlying thread of feel-good indulgence is expected to continue to fuel innovation in APAC and beyond, especially across six major trends identified in the TrendBites report.
Modernising traditions
The incorporation and respect of local cultures and traditions has become increasingly important in food innovation, especially in a market like Asia where there are many different cultural connotations and identities across the region.
This can be clear and direct in some aspects: Chinese firms make many products incorporating herbs based on traditional Chinese medicine principles and now has a Food as Medicine regulatory list to support these, whereas Latin American specialties like chimichurri and corn nuts (roasted corn kernels) have made their way onto snack aisles worldwide.
However, this has changed quite a bit over the past year with a rising demand for products to be novel and new while still incorporating heritage in their production.
“A few years back it was all about nostalgia and culture where consumers wanted to see heritage items they were familiar with and proud of incorporated into foods. Then there was the rise of ‘newstalgia’ and now what we call Modern Authenticity, where heritage items need to be different and modern as well,” Anarna added.
“Our research shows that 82% of Asian consumers seek out heritage flavours that are reimagined with such as contemporary twist, and 70% are open to trying out such ‘newstalgic’ foods.”
Texture to tickle the senses
Though taste still largely remains king, texture is emerging as the next phase of growth for food innovation to attract and keep consumer interest.
“Texture is rivalling taste for some 70% of consumers, who want provocative ‘super-textures’ and multi-sensory eating experiences,” she added.
“This means going beyond the sense of taste to ensure the other senses are also taken care of from sight to smell to touch, what we call Sensory Seduction, and this 70% are really looking for interesting, extra combinations in their food and drink.”
Around 40% of consumers have defined indulgence as a ‘rich sensory experience’, showcasing the vast importance of textures as some of these senses can only be stimulated by textures such as crunchiness or chewiness.
Feel-good treats for guilt-free indulgence
Despite health and wellness having guided a lot of food innovation in the past few years, the fact remains that most consumers are unwilling to sacrifice factors such as taste and flavour to eat healthier.
This has instead shifted towards consumers still opting for treats, but incorporating a lighter or healthier component in these treats that can help reduce the guilt and make them feel better about said choice.
“Especially in the last year, we are seeing more people being more upfront about saying that they definitely want indulgence but will choose the option that feels a little healthier and makes them feel less guilt,” she said.
“This is reflected by the fact that one-third of consumers are gravitating towards lighter, herb-infused or citrus-infused treats which balance indulgence with functional wellness, what we are calling Fresh Indulgence.”
Another 42% of consumers in Asia define indulgence as ‘healthier enjoyment’, with a lot of interest in this region being seen in the areas of citrus fruit, basil, perilla and flora-tea notes.
Affordable premiumisation to deal with challenges
While current economic and geopolitical uncertainties have led to many tightening their pursestrings, the human need for indulgence still needs to be satisfied — and many consumers are finding this satisfaction in foods or beverages.
“Everyone wants to be able to treat themselves from time to time, but economic pressures are making regular luxuries such as travelling or regular spa days a lot more difficult. This is driving a shift towards ‘trading down’ to daily premium indulgences [in food] like black truffle snacks and single-origin coffees, Little Luxuries that are still affordable,” Anarna said.
“This is indulgence through and through that focuses on spending the money to elevate a food choice eg. choosing wagyu beef over regular beef, as that is more affordable compared to big splurges like a new bag or a spa day.”
The focus on food and beverage as an avenue for increased premiumisation signals higher consumer willingness to pay for higher quality, and this is opening up more doors for premium ingredients such as hojicha, pistachio, truffle and dark chocolate.
Fortification for functionality
Functionality in foods and beverages can come from many aspects, and this sector is seeing a very rapid boom especially in Asia.
The evolution seen here comes back to the point about multi-dimensionality, where consumers are no longer satisfied with a product having ‘low sugar’ or ‘high fibre’, but tend towards items that can satisfy a need.
“Some of the fastest-growing claims in this space are beauty-from-within and skin benefits powered by collagen; mood, stress, focus and energy; and protein enrichment,” she added.
“Fortification with ingredients that can offer these claims remains a focus in what we call Wholesome Nutrition, and 58% of consumers are seeking such products offering physical and mental wellbeing benefits.”
Snacking is unstoppably on the rise
Modern busy lifestyles have inevitably led to snacking as a more convenient dining option compared to a sit-down meal.
This is even more obvious when taking into account factors such as traffic jams, working overtime, and an increasing population of younger consumers regularly exposed to the concept of ‘eating less but more often’ as a healthier dietary option now entering the workforce.
“Eating occasions are becoming more fluid especially across Asia, and snack-based eating patterns or what we call Flexi Fuelling are increasingly blurring the lines, but also offering more opportunity for innovation,” ofi Head of APAC F&B Solutions Ramki Prasad said.
“Because snacking is becoming so important, things like savoury drinks, snacks inspired by regular meals or portable mini meals are emerging which is going far beyond the original uni-dimensional focus of a snack just being an indulgent item and nothing more — it now calls for adding more complexity such as nutrition and functionality, and this is where the innovation comes.”
