In its APAC Food and Drink Landscape 2023 report, Mintel's regional experts highlighted key consumer needs and opportunities for brands across three distinct areas with insights and consumer trends from across the Asia Pacific food and drink industry.
Mintel Food and Drink, South APAC associate director, Megan Stanton said as the world had lived with the effects of the pandemic for more than three years, both the consumer and industry landscape had undeniably changed.
“All of us are changed people as a result of living with the effects of Covid. As individuals many of us have faced insurmountable pain and loss and others have come to a new realisation of what is important to their wellbeing and life goals.
“As a society, Covid is a defining point in the development of human behaviour and thus on us as consumers. In the Mintel Food and Drink Landscape piece this year, we've spotlight three areas of consumer needs where brands can help consumers in the new landscape,” said Stanton.
Area 1: Silver Economy
Catering for an ageing population
As some countries have populations that skew younger, others are facing the challenges of catering for an ageing population of consumers. Covid magnified the value of health and nutrition for older adults, paving the way for more holistic and preventive health-based senior product innovation. Mintel’s trend: Healthy Ageing in the Silver Economy, shows how brands can support older consumers.
Now more aware of their vulnerability and aggravated the need for nutrition that supports their overall health and wellness, older adults want to age well. This presents an opportunity to develop more senior-focused products that offer solutions for specific health (e.g. muscle and cognitive health) and nutrition (e.g protein) needs to maintain a healthy lifestyle.
Brands can support the holistic health of seniors by incorporating key botanicals and nutrients that offer immune health, mobility, mental wellbeing and gut health support.
For example, Neuroberries, a variety of blackcurrant found in New Zealand that contain some of the highest levels of anthocyanins and Vitamin C out of any berry grown on earth, are utilised by the nootropic beverage Ārepa to produce scientifically proven and neuroscientist designed beverages and supplements, created to help improve mental clarity, increase performance and fight against fatigue and brain fog.
Products like Ārepa that utilise nutrients to assist clarity and brain health are alongside key ingredients highlighted by Mintel: B vitamins, choline, adaptogens and natural caffeine, that can also offer focus and clarity in the next wave of functional food and drink launches.
Area 2: Staying Sharp
Focus, energy and brain health
Mintel’s trend: Staying Sharp shows consumers need encouragement to explore the mental and cognitive advantages offered by brain health products, and brands have an opportunity to help consumers optimise their mental performance, particularly in the beverage space with functional tonics and waters.
Notably, according to Mintel research, fewer consumers would ideally like their diet to help maintain healthy brain function or improve mood when compared to more familiar benefits such as immunity or heart health. Mintel recommends connecting ingredients that support both physical health to mental health.
“Consumers are driven to pursue positive mental wellbeing and are looking for support to achieve this. At the same time, we are plagued by the constantly ‘always on’ nature of social media and the inability to focus our energy in a productive manner,” said Stanton.
Mintel highlighted four key ingredients with opportunity in this trend: alternative caffeine, B-vitamins, adaptogens, and choline.
Mintel research shows that almost half of UK coffee drinkers aged 16-34 are concerned about the impact of caffeine on their emotional wellbeing, and that new sources of caffeine that lessen the negative effects can win over concerned coffee drinkers. Lesser known sources of caffeine such as yerba mate, guayusa and yaupon holly, as well as lower-caffeine varieties of coffee, are being explored as alternatives.
B-vitamins are already well established in products that make either an energy or a brain/nervous system functional claim, with vitamin B6 being the most common on labels. They are also water soluble, and are becoming more commonplace in beverages marketed for every day consumption i.e. functional water.
Waterdrop is a water additive utilising both natural caffeine and B-vitamins in an effervescent cube format. Waterdrop contains 90mg of natural caffeine from the guayusa leaf along with vitamin C, vitamin B6, vitamin B12, niacin and pantothenic acid.
However, while consumers are experiencing high levels of stress and burnout, and simultaneously embracing moderation trends regarding alcohol and caffeine consumption, adaptogens are emerging as a healthier alternative.
Brands can focus on the adaptogens that support energy like maca, ginseng, schisandra. For mental clarity adaptogens such as rhodiola and lion's mane can help consumers restore balance in their bodies and cope with stress.
Choline is a nutrient supporting healthy outcomes at all life stages, from infant and maternal health through to healthy ageing, and Mintel describes it as 'under consumed and under-discussed'. Innovation with choline as an added ingredient is most often found in products for babies and young children. Mintel says there is an opportunity to bring Choline to consumers of all ages, especially older adults as healthy ageing gains more traction.
Area 3: Unguilty Pleasures 2.0
Ushering a new level of indulgence
Carbonated soft drinks and sugar confectionery can form the ideal partnership to appeal to consumers looking for new flavours and indulgent experiences. Mintel research highlights that the soda drinks and sugar confectionery share the same group of consumers looking for a treat, and that flavour plays an important role in attracting these consumers to try new products.
To embrace the opportunity, Mintel recommends candy-flavoured soda drinks, and using nostalgia and festive timing as a consumer recruitment tool.
Nostalgia as a tool appears to be resonating with brands, with an onslaught of brand collaborations and throwback and nostalgia inducing product releases - even in alcoholic brands. For example, Brookvale Union's Lemon Squash, Billson's ever expanding range of lolly-flavoured vodka premixes (perhaps a little too nostalgic), Cadbury's latest flavour releases inspired by home or bakery recipes, and notably, the return of Fruchoc's original packaging to shelves.
Another consumer trend appearing out of the pandemic is Gen Zs snack-craze, with research showing the demographic agrees that snacks are a must-have for a night in. Mintel says the hyper-nesting trend is here to stay as Gen Zs continue to spend on in-home activities post-pandemic.
Brands can consider encouraging snacking to complement these activities and can appeal to Gen Zs by embracing interesting flavours via collaboration or taking inspiration from world cuisines. Linking in with the Staying Sharp trend, brands can support stressed or tired Gen Zs by positioning snacks as a ‘stress reliever’ that helps them relax before bedtime, so they can indulge while fulfilling the need to consume healthier options.
“If there is nothing else we learnt from the pandemic, it is to enjoy what you have and seek pleasure in all aspects of life, whenever you can,” said Stanton.
