Asia Pacific Food and Beverage Distributor Survey: 2023 Recap

For the sixth consecutive year, Incite is surveying leading Food & Beverage importers and distributors across the Asia Pacific region about current market conditions, in-demand product categories and their predictions for their food and beverage sectors over the next 12 months.

As this year’s survey is underway, here are some of the highlights from last year’s survey of over 2,500 food and beverage importer and distributor contacts surveyed across the Asia Pacific region.

There is opportunity, but the competition is fierce.  

In 2023, 84% of importers and distributors confirmed that they were pitched new distribution opportunities on a weekly to monthly basis. Although importers and distributors receive an overwhelming number of new opportunities, 75% of respondents claimed that less than 25% of the presented opportunities converted to distribution partnerships. 

Here’s how to stand out:

With limited shelf space and competitive categories, distributors were looking for new products that presented the best perceived value by consumers. The brand’s potential to cut through the noise and competition by presenting compelling and well thought out commercial propositions to maintain their listings and grow sales over time with strong local market demand were prioritised.

A&P and digital marketing efforts can make or break your pitch.

When assessing the most important factors for reviewing new distribution opportunities, 90% of importers and distributors indicated that pricing competitiveness was the number one priority for them. Following closely were considerations of product taste and shelf life. In addition, survey respondents also put a large emphasis on the brand’s available advertising and promotion support. 76% of respondents told us that price promotions were undoubtedly important for grocery brands, however demos, sampling and social media marketing also provide a good return on investment.

Here's what you need:

Grocery distributors shared that launching a product range in a new market without supporting it with marketing and promotion will likely result in failure. Linking traditional in-store activations (price promotions, demos and samplings) with digital marketing efforts have proven to contribute greatly to the success of a brand when launching in new Asia Pacific export markets. Ideally, in-trade marketing and digital marketing efforts should complement each other to achieve optimal results.

Importers and Distributors predicted that the grocery sector looked positive for 2024.

Importers and distributors across a range of markets shared that the outlook for the grocery sector in 2024 was positive, with an average rating of 3.5/5 (1 = negative, 5 = positive). They predicted that the most in-demand categories for customers 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 more important decision-making considerations for consumers across the Asia Pacific region.

Here's how it is going:

There continues to be strong demand for imported food and beverage products across Asia Pacific markets, but local producers and brands are increasingly becoming more prevalent in mass market categories. There continues to be demand for products in the mid-to-premium price bracket, but customers are looking for value in their purchases making price positioning vital. The functional beverage and healthy snacking categories have been trending with consumers showing an appetite for new and innovative functional products. In maturing APAC markets, while there is consolidation taking place in the category, plant-based foods and drinks are also continuing to grow in popularity.

To download the 2023 Asia Food and Beverage Distributor Survey Report, click here.