With a population exceeding 650 million and a young population, Southeast Asia is a highly lucrative market for snacks players. Currently, this market is estimated at US$49 billion and expanding at a CAGR of 7.4%, far surpassing global growth rate. Leading markets include Indonesia and the Philippines estimated to reach US$6.4 billion and US$3.4 billion respectively by 2028.
According to a recent report, the engine behind the growth is a region-wide snackification trend where standard meals are often being replaced with quick and smaller bites that are either indulgent, functional or both. Gen Z and Millennials are seeking out sugar-free chocolates, vitamin-infused gummies and protein-packed chips while they are on-the-move.
To capture this lucrative market, quite a number of large investments took place in 2024. One of them is Yupi Indo Jelly Gum, considered as the region’s largest manufacturer of gummy/jelly, which was acquired by Affinity Equity Partners. Meanwhile, Japanese player, Ezaki Glico had announced its expansion in ASEAN as one of its priority market, with the launch of its Almond Koka line of products within the same year. In 2025, Orion Corp, the renown Choco Pie manufacturer, had announced its additional US$91.7 million investment in Vietnam’s manufacturing plant to meet growing regional appetite for its products.
ASEAN also has a strategic advantage in terms of manufacturing. Its low cost of labor and materials, its rich agricultural resources coupled with a flexible original equipment manufacturer (OEM) options is turning this region into a high-margin production base for a lot of companies.
Even companies like PepsiCo had seen the strong growth potential and the need to have a local manufacturing base. PepsiCo stopped production of snacks in Indonesia in 2021, but in 2025 it resumed production with a new factory and committed US$200 million over a 10-year period in Indonesia. It also aims to localise its supply chain in the near future.
Clearly, the future for snacks is bright in Southeast Asia, and all of these are happening under the watchful eyes of governments in the region, some already or are looking to impose higher taxes on snacks based on their sugar and salt contents. While the governments are monitoring consumption to control its impact on national health issues like diabetes, obesity and cardiovascular diseases, manufacturers are gradually adjusting their portfolio by introducing ‘better-for-you’ products to reach out to more health-conscious consumers as well as to appease the authorities.
According to some estimates, the ‘better for you’ snack category is estimated to reach US$16.2 billion in Southeast Asia by 2030. It will take some time before these images of ‘clean label’, ‘organic’, ‘high protein’, ‘low sugar’, ‘high calcium’, ‘high vitamin’ and ‘low fat’ get registered permanently into consumer minds. Till then, the transition towards healthier snacks will take place eventually with consumer education.
Snack manufacturers, on the other hand, face significant challenges to ensure their ‘better-for-you’ snack products appeal to consumers in terms of taste and pricing. Affordability is still key to winning consumer pockets in Southeast Asia.
