Emerging Food and Drinks Markets in Asia-Pacific

Emerging Food and Drinks Markets in Asia-Pacific

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Emerging Food and Drinks Markets in Asia-Pacific

Macro overview

  • Asia-Pacific is experiencing wide scale demographic changes and unprecedented levels of urbanization. The region largely suffers from low per capita expenditure with many countries suffering wide scale poverty.
  • Regulatory rules tightened during the recession protect domestic producers and limit potential of new players who do not secure affiliations with local companies.
  • Much of Asia-Pacific is characterized by a relatively young age profiles (Japan is the main exception). Younger consumers bring many demands but are receptive to new products and marketing, and will challenge traditions more readily.
  • Penetration of new technologies is picking up in Asia-Pacific but remains behind the western world.
  • Future market growth is expected to marginally trail that of current levels although by category it is a more positive picture.
  • Per capita expenditure growth is mixed throughout the region with pockets of strong growth expected (India, China, and Vietnam) but also areas of slower growth (Japan, New Zealand and Australia).

 

Country attractiveness

  • The scorecard process used in this report has enabled Business Insights to give the 14 Asia-Pacific countries a numerical score and rank.
  • The top ranked country is China with Japan ranked second. Neither country consistently appears in the top two on all measures. The lowest ranked is the Philippines just below Vietnam and Thailand.
  • Comparing the scores of the countries’ individual metrics provides additional insight in the maturity and attractiveness of their key food and drinks markets.
  • Combining the metrics allows a measure of reward versus risk with attractiveness grouped into four potential scenarios. Reflecting the developing nature of the countries the majority fall into relatively low market risk but with low market attractiveness.
  • Countries falling into low risk/high attractiveness immediately appear appealing but additional insight and understanding is needed.

 

Category analysis

  • The alcoholic drinks market presents a mixed picture in Asia-Pacific. Although largely positive through optimistic growth of market values and personal expenditure, the impact of the recession and presence of non drinking religions will restrict overall growth.
  • The soft drinks market also presents a mixed picture but in many countries suffers from either limited growth prospects or low per capita expenditure.
  • Increasing awareness of, and demand for healthier soft drinks, is impacting on the region with growth of bottled water and functional drinks in particular strong.
  • The bakery and cereals market has shown strong growth with new healthier options helping to capture market share whilst the need for indulgence and treats has maintained demand in recent turbulent times.
  • Cakes and pastries is the strongest category in both size and growth terms and reflects indulgent but healthy opportunities.
  • The dairy market is dependent on the ownership of household durables such as fridges. However, innovative products offering longer shelf lives and easier consumption are capitalizing on new health trends and promoting market growth.
  • The confectionery market is perhaps most susceptible to current global trends particularly the emphasis on health and healthier diets. However, improved and wide spread distribution is helping to create demand in many Asia-Pacific countries.
  • The savory snacks market is primarily focused on Japan which in terms of value outweighs all the other Asia-Pacific countries combined.
Publish Date: November 2016

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