Three Value Strategies to Drive Growth of Snacking in Asia

Spending on food in Asia is set to go up despite how easy it is for consumers to trade down to more affordable food options. Brands (both manufacturers and restaurateurs) must show how good quality, unique experiences and, most importantly, joy and satisfaction can come at a reasonable price. This is especially since rising product prices help to bolster the sales of packaged food in Asia Pacific from 2.5% in real terms between 2018 and 2023, to a 2.6% CAGR between 2023 and 2028. Brands must show consumers the value of their products in elevating routines and making worthwhile impulse buys.

Smaller pack sizes generate unit price-driven value growth

Smaller pack sizes reign in Asia.

74% of chocolate tablets in Asia Pacific are below 50g in volume per pack, compared to 16% in Western Europe

^{Source: Euromonitor International}

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 preference for smaller pack sizes in this region compared to the rest of the world allows food players to focus on introducing more value-added products while keeping to a price range consumers can afford.

Identify key occasions that stand out in Asia

With Greater China holding 48% of the region’s total snacks sales in 2024, the market is a massive source of revenue for multinational food companies. However, growth of snacks in China is expected to be flat up to 2029, with only a 1% retail value CAGR in real terms expected due to a continued conservative spending environment.

Thailand and the Philippines will lead the regional retail value growth at constant prices with 7% and 5% CAGRs, respectively, representing key pockets of growth

^{Source: Euromonitor International}

Innovations and strategies in tapping into the right audience and snacking motivations in China, however, are worth learning from in order to penetrate emerging markets amidst a more cautious spending economy. For instance, Mars launched an entirely new gum brand in China, called RESPAWN, in July 2023 in partnership with Razer, positioned as a snack for gaming occasions. As Asians are responsible for 62% of global mobile games sales, and 52% of online games and subscriptions, gaming-snacking occasions are a more relevant opportunity in this region than in others.

Trigger higher-value spending through routine and impulse occasions

Snacks are easily substitutable in Asia – consumers trade across to cheaper alternatives that offer similar attributes, from familiar flavours to satisfying textures. Brands must provide consumers with reasons and motivations to buy products that can value-add their lives in some way. Identifying key consumption occasions is crucial to understand whether influential product attributes could lean towards the functional (such as health or purpose) or emotional (such as treating and reward).

Recent product launches with unique attributes are seen targeting narrower consumption occasions and specific consumers, especially where Asia Pacific stands out from other regions.

Routine occasions:

1. Improve snacking cadence by elevating daily routines
2. Consider untapped routines and times of day
3. Leverage loyalty programmes and livestreaming that shake up routine purchasing patterns

Impulse occasions:

1. Anticipate treating and reward-based consumption
2. Maximise digital tools to build engagement
3. Build brand equity and perceived value by leveraging virality

In Asia Pacific, where there is recovering optimism in the economy, brands must aim to elevate routine occasions and enhance impulse buys to drive value-for-money spending on food. This can be achieved through understanding different triggers to snacking habits that would lead to sharper innovations speaking to consumer needs. Consumer perception of higher quality would also lead to stronger trust and connection with the brand, reaping rewards for the long term.

Learn more about the implications of price across food industries in our report, Inflation in Packaged Foods: Causes and Implications of Price Growth.