The baby food market in Asia Pacific has been shrinking as milk formula consumption falls, causing manufacturers and brands to seek new growth opportunities. From comprising 82% of the region’s total baby food retail sales in 2024, milk formula is expected to make up only 79% by 2029.
Despite ongoing challenges with inflation, increased costs of product/distribution, and raw material price rises, innovation remains a key driver of success for the packaged food industry. Packaged food innovation strategies are being refined to provide better products that push the bar on health, sensory experience, and value demands.
This infographic highlights recent trends in staple foods and Euromonitor's projections for the industry.
The debate surrounding ultra-processed foods (UPFs) has grown significantly due to concerns about their health impact. This scrutiny is prompting political action, like past regulations on alcohol and tobacco, possibly leading to more regulations in Europe. Amid this regulatory shift, demand for healthier, natural options is strong. Brands can leverage this by tapping into clean label claims and highlight their clean ingredients more effectively.
The vitamins and nutritional supplements industry is highly fragmented and, therefore, very competitive. Success hinges on effectively targeting the appropriate consumer segment with the correct messaging.
What factors will change the global demand for food in the coming years? There are four which are key: population, macroeconomics, prices, and “soft drivers”. With a firm grasp on all four, understanding large shifts in the food industry becomes much easier.