21 February, 2020
Changing consumer preferences shaping the APAC savory snacks market, says GlobalData
Evolving consumer lifestyles and changing dietary preferences are increasingly influencing consumers’ snacking choices in the Asia-Pacific (APAC) region. Time-starved Asian consumers are seeking on-the-go products in new flavours/variants and are willing to pay extra for better quality and new taste experiences, according to GlobalData, a leading data and analytics company.
GlobalData’s report ‘Opportunities in the Asia-Pacific Savory Snacks Sector’, forecasts the regional market to grow from US$52.6bn in 2018 to US$74bn in 2023, at a compound annual growth rate (CAGR) of 7.1%. Together, China, Japan and India, accounted for 84.9% value share of the APAC savory snacks sector in 2018.
The report identifies Taiwan, China, New Zealand and Indonesia as the high-potential countries based on GlobalData’s unique scoring system, which involves the risk-reward analysis derived from multiple metrics. These metrics include market size and growth assessment, and political, economic, social, and technological assessment of 19 major economies in the APAC region. Among the high potential countries, China is expected to contribute the most towards the growth of the savory snacks sector in the APAC region.
Priyanka Jain, Consumer Analyst at GlobalData says: “Rising time scarcity coupled with growing dual-income households are creating the need for food options, which offer convenience. The habit of snacking to save time has led to a rise in consumption of on-the-go food products, especially portable, easy-to-use packs of savory snacks that can be consumed quickly without causing a mess.”
The report reveals that the sector is led by the ‘nuts and seeds’ category, which accounted for a value share of 24% in 2018. It was followed by ‘processed snacks’ and ‘ethnic/traditional snacks’ categories with value shares of 22.6% and 22.5%, respectively. The ethnic/traditional snacks category is expected to grow at a CAGR of 8.6% during 2018–2023, followed by nuts & seeds (7.7%) and potato chips (7.3%) categories.
PepsiCo, Calbee, Inc., Want Want China Holdings Limited, Golden Orchard Farmer (Beijing) Food Co., Ltd., and Anhui Three Squirrels Electronic Commerce Co are the leading companies operating in the APAC savory snacks sector.
Priyanka concludes: “With growing health concerns, consumers are now switching to products with ‘cholesterol-free’, ‘gluten-free’ or ‘low salt/sugar’ claims. Currently, the value share of products with health & wellness benefits is limited in the APAC savory snacks sector (2.9% share in 2018), but this market is expected to pick up pace in the near future and report a CAGR of 6% during 2018–2023.”