Although 2025 is a challenging period for Asian economies, with many consumers tightening their belts and focusing more on essential goods, there is still a small but growing category of consumers who continue to look for products with clear health and functional benefits, and they are prepared to pay a premium for such products.
Latest data from Mintel GNPD showed that functional foods gain strong acceptance among younger consumers including children, and they are eager to explore the benefits offered by fortified and functional food and beverages. These consumers learnt from internet and social media hypes promoting certain health and wellness claims in some products, and they are more willing to experiment to see the effects of these products on their health. There is a growing number of new food and drink launches with functional claims from 2014 to 2024 targeted to children from just above 10% in 2014 to more than 25% by 2024. (see Chart 1.0). The decision makers to buy these products could be the children who are curious or their parents who are more concerned of their children’s growth and development.
As younger consumers have growing curiosity to try out functional food products, the older consumers meanwhile genuinely looking for products with real benefits to provide support for proactive ageing. As an example, Gen Z looks for products that can help them to reduce fatigue probably after doing a strenuous activity or physical exercise, while Gen X and the Baby Boomers look out more for products that can improve brain, bone and joint health. The above trend is more common in developed Asian economies like Japan or in urban cities in Southeast Asia with high disposable incomes. (see Chart 2.0)
The growing interest does not however mean that consumers would like to substitute their ‘occasional’ sugary and salty snacks and confectionery for functional food products. Manufacturers know that regular treats like chocolates, ice cream and crispy snacks will continue to be in high demand, but they could make them even more ‘guilt-free’ by introducing low-, no- or reduced- sugar and salt variants to further increase incidents of purchases. Manufacturers seek ‘effective’ sugar and salt replacement solutions that continue to maintain affordable prices while not compromising the taste, texture and appearance of the end-products. A winning product is a win:win indeed for both manufacturers and consumers.
We are now moving into a new era of food science and technology where delicious indulgent food need not necessarily be unhealthy and have high sugar and salt contents, as such first movers to capitalise on the health trend and to constantly innovating will be the future winners.
