2024 Grocery Sector Predictions vs Outcomes
Written by: Will Gordon
Our 2023 survey of 2,500 import and distribution contacts across the Asia Pacific region showed that the industry outlook for the grocery sector in 2024 was positive, with an average rating of 3.5/5 (1 = negative, 5 = positive). Distributors predicted that the most in-demand categories for consumers would be snacking, dairy and frozen foods. Health and plant-based products were also highlighted as growing segments as sustainability and wellness continue to become important decision-making considerations for consumers across the Asia Pacific region. Will Gordon, Commercial Director at Incite, shares his views on how these predictions have played out so far in 2024.
What is your assessment of the performance of the grocery sector across Asia Pacific markets this year?
There continues to be demand for imported food and beverage products across the APAC markets that Incite operates in, but there has been a shift away from a reliance on imported mass-market products with local producers and brands becoming more prevalent in this segment. There is strong demand for mid-to-premium price bracket items, but customers continue to expect value for money in their purchases making affordable price positioning vital. From an operational perspective throughout APAC markets, distributors have faced challenges with the ongoing disruptions in sea freight across key shipping routes, and issues with container availability. This has directly affected the consistency of supply from UK and EU-based brands.
Which categories have been in-demand or popular this year?
Categories and segments that are showing signs of growth include functional beverages and healthy snacking. Consumers are showing an appetite towards new and innovative products that support an active and healthy lifestyle. As APAC markets mature, there is also a tendency for consumers to shop categories that have traditionally been considered somewhat 'niche'. For example, plant-based, organic and free-range products.
What have distributors being saying about the market overall in 2024?
Although distributors we work with have been commenting that they are operating in a complex, fast-changing environment, the overall sentiment remains positive as they continue to look for imported products to grow their portfolio. A common theme that often comes up is inflation (i.e. cost of living), which is affecting both consumer behaviour (e.g. shopping on basket spend rather than per 100g value) and retailer behaviour (e.g. changes in brand investment expectation and a renewed focus on optimising shelf ranges).
What types of trends have you noticed in the plant-based category this year?
In more mature APAC markets, plant-based foods and drinks are growing in popularity. Consumers recognise the importance of protein as part of a balanced diet, and with growing concerns for health and animal welfare, plant-based products continue to grow in popularity.
To download the 2023 Asia Food and Beverage Distributor Survey Report, click here.