Positioning Premium Food in Asia

Delivery

This report comes in PPT.

Key findings

Consumers in Asia not exempted from global price hikes and cost-of-living pressures

Cost-of-living pressures and rising commodity and ingredient costs affected Asian markets in 2022 and will remain in play in 2023. Nevertheless, disposable incomes are also rising alongside these increases and are expected to continue to do so in the forecast period, pointing to some degree of willingness to spend on treats and indulgences.

Four pillars of premiumisation to determine sustainable positioning

Given that consumers are spending on services – such as travel and entertainment – following the reopening of China and the improvement of seamless travel between Asian markets, food products and fmcg must convey a convincing premium proposition to consumers for share of wallet. Premium attributes can be segmented into diet, quality, health and sustainability claims.

The competitive landscape undergoes major changes and will continue to do so

As a result of innovation, adjusted strategies and review of product portfolios, companies and brands now face changes in the competitive landscape. Private label, for instance, is making greater impact on the Asian market where it has lacked significance in prior years; categories see the entrance of new players that offer novelty and uniqueness to consumers seeking excitement.

Affordability is still important – premiumisation must be carefully weighed

Seeking value growth through rising unit prices and premiumisation is a core strategy not only for economical brands that want to diversify, but also for value-added brands and products that must justify their higher prices. However, given that many markets in Asia are still feeling cost-of-living pressures, these premium strategies must still fall within a bracket of affordability to retain consumers for the long run.