The rise of “inexpensive premium” merchandise – positioned between mass-market and luxurious segments – has been a significant development driver, providing shoppers enhanced style at accessible value factors.
After a dip in 2022 pushed by rising ingredient prices, Asia Pacific’s snack market is rebounding on the again of “inexpensive premium” merchandise that stability style and worth, in line with knowledge analytics firm Euromonitor Worldwide.
“In 2022, snack gross sales skilled a decline because of value will increase throughout most classes,” mentioned Megumi Matsunaga, meals and vitamin senior marketing consultant at Euromonitor Worldwide. “As snacks are typically perceived as non-essential, they have been among the many first gadgets shoppers lowered when tightening family budgets.”
The downturn was most pronounced in confectionery, which recorded a 5% year-on-year decline in retail worth, pushed largely by world price inflation in key substances corresponding to sugar and cocoa.
Chocolate stays resilient with smaller packs
Regardless of excessive cocoa costs, chocolate has remained resilient largely because of packaging innovation.
“The number of packaging sizes has helped drive gross sales, permitting shoppers the selection to place forth a smaller money outlay at a time,” mentioned Emil Fazira, Asia Pacific meals perception supervisor at Euromonitor Worldwide.
In 2024, 79% of chocolate confectionery in Asia Pacific was offered within the 0–50g measurement vary – considerably larger than the 55% world common. Fazira mentioned this packaging variety, paired with a dynamic innovation setting, has helped manufacturers maintain shopper curiosity regardless of price pressures.
Conscious spending reshapes retail methods
Nevertheless, a behavioural shift after 2022 could reshape how manufacturers attain shoppers. Solely 19% of APAC shoppers say they typically make impulse purchases – down from 24% in 2019.
“Extra shoppers understand their shopping for habits to be extra aware, a results of the difficult macroeconomic circumstances as households started to pre-plan their expenditure extra,” Fazira mentioned.
Because of this, manufacturers could have to pivot from conventional in-store impulse triggers towards digital engagement earlier within the procuring journey.
Fazira suggested that in-store show methods must also be reviewed if shoppers are much less inclined to make last-minute purchases on the cashier.
Style influences buy choices
Whereas affordability stays essential, shoppers are now not prioritising value alone.
Euromonitor’s Life-style Survey (February 2025) discovered that 46% of Asia Pacific shoppers nonetheless view low pricing as essentially the most compelling characteristic when selecting meals and drinks, however 35% at the moment are drawn to merchandise that ship superior style.
Style is rising as a robust differentiator the place shoppers search sensory satisfaction, mentioned Matsunaga.
This shift means that indulgence – as soon as thought-about a luxurious – is being redefined round expertise and accessibility.
Reasonably priced merchandise that provide a “premium really feel” with out a excessive price ticket are discovering resonance with value-conscious shoppers.
Vietnam, Philippines projected to guide the expansion
Vietnam and the Philippines are projected to guide regional snack development in 2025, with retail worth will increase of seven% and 6% respectively.
“Each markets profit from inhabitants enhance, which continues to drive natural development in snack consumption,” Matsunaga defined.
“In Vietnam, snacks additionally play a culturally vital position in socialising, typically chosen as items or served to company throughout residence visits.”
Confectionery and ice cream seeing development
Confectionery and ice cream are set to ship the strongest worth development throughout APAC – up 6% and 5% respectively. However whereas confectionery’s quantity development stays weak (simply 1%), ice cream continues to increase per capita consumption, significantly in South East Asia and India.
“Ice cream is experiencing regular development, though enlargement is presently restricted by chilly chain infrastructure challenges,” mentioned Matsunaga.
She famous that mochi ice cream in Indonesia has been a key development driver, reflecting shoppers’ rising urge for food for indulgent dessert choices.
A brand new period of ‘good indulgence’
General, Euromonitor’s findings counsel that Asia’s snack restoration will likely be formed by value-driven indulgence – merchandise that stability affordability, sensory enchantment, and innovation. Ice cream and chocolate exemplify how manufacturers can faucet into consolation and novelty with out pricing out cautious shoppers.
In essence, 2025 marked the beginning of what could possibly be described as “good indulgence” – the place shoppers nonetheless need to deal with themselves, however achieve this mindfully, looking for extra style, creativity, and worth for each greenback spent – and that is more likely to see continued momentum in 2026.
