Thank you for Subscribing to Apac CIO Outlook Weekly Brief
Four Secrets to Reign the APAC F&B Market
FREMONT, CA: The food and beverage industry is on the verge of a sea change as the customers are easily getting swept up in the hype of the trendy health food buzzwords. With a paradigm shift in the lifestyle trends and the increased flair of the global markets to impel how, why and where the customers purchase and consume goods and services, the ever-evolving consumer landscape tries to keep abreast.
Certain factors such as natural disasters, the media, misconceptions, and the lack of awareness, mass connectivity, and an ever-increasing lure to simplicity are influencing eating and drinking habits worldwide like never before. In addition to this, the changes in the ethnic composition, attitudes of different age groups, health issues, and the need for convenience are also compelling the food marketers to invest heavily in consumer insights and research to determine what the consumers desire for.
The Food and Beverage Market in the APAC region has been witnessing a transformational development in recent years, even amidst the global economic slack, which is slowly devouring the world and hampering its pace of growth.
The APAC Food and Beverage industry has become one of the most dynamic and fascinating space to keep an eye on, and the factors such as rising population, income levels, and ever-evolving tastes are giving rise to a plethora of new trends and product categories, here.
The region paves the ground for both established and new brands with innovative and lasting product offerings to procure better consumer acceptance. In recent years, the consumers in the APAC region have been embracing new products they believe will offer them a better value. The Food and Beverage space in APAC has turned into one of the highest competitive categories due to the increasing consumer strive for good quality and top nutritional value products.
Even when the market and consumer sentiments are getting varied with time, there are a few tips to go by, while aiming to outshine in the APAC Food and Beverage market.
Make the Product Taste Better
Taste is undoubtedly the most crucial aspect of food purchase, or in other words, it is the prime driver of consumer choice in food and beverages. Irrespective of categories like popular snacks, drinks, health, gluten-free, vegan, lifestyle, etc., it is essential to have the correct taste, as it is striving to turn into an experience these days. Without perfecting the appropriate taste proposition, one cannot develop a sustainable product that earns the trust of the customer base. Taste is the prime factor that determines the lifecycle of any product in the market.
Compromising on taste will adversely affect the chances of a product's success, and will compel all the other marketing variables to pick up an average product. In many cases, the producers have to compromise with the price or negotiations to increase its demand.
One should not forget the fact that with the changing choices and perceptions of the customers, their craving for great flavored food will remain the same. Different consumers will prefer tasty food that is convenient, healthy, or reasonably priced.
Fair and Reasonable Price Method
One can have an amazing product to offer, but growth and acceptance level can suffer if the price is not reasonable. Every market has its perception of cost versus value, which is a strong element in making a choice. Hence, it will be better if the brands engaged in the competition understand this perception and prepare their offers accordingly.
Effectual pricing is the lifeblood of business. The price is one of the first things the consumer notices about a product and also plays a key role in helping the consumers to determine whether to buy or leave the product.
Ensure the Product Quality and Adopt Appropriate Safety Measures
Food safety is a critical thing that should be managed effectively throughout the food chain as it is dealing with the products that are highly sensitive.
When it comes to food items, most of us tend to repeatedly buy the same brand, which we figure out to be of good quality and matches our expectations. Also, in the case of organizations in this industry, even a small incident where the quality of the products was in jeopardy, could blemish the brand image and destroy its credibility among the customers.
Parameters like quality can establish or demolish a business, where the desired quality product can improve the success probability, whereas a product with less quality can relegate the brand name.
Asian consumers have always loved natural and green food products. They have been choosy and selecting the products that contain natural ingredients and have functional benefits. The demand for protein-rich, ultra-low fat with an additional offering of health benefits such as antioxidants, vitamins, etc. are grabbing more considerable consumer attention and respect in the market.
It is inevitable to dive deep with research and trials to understand the current and continuing trends to develop the products that match the market. Consumers are specific about the products with significant functional benefits such as energy, cognitive support, stress relief, while products that assist with issues such as digestion and inflammation are in high demand.
The food and beverage industry is striving to catch the pace of the ever-evolving needs of the modern consumer by innovating and creating nutrient-dense foods with meaningful functional benefits.