14 Aug 2019
Surge in demand of premium products paving way for FMCG brands to engage with wider range of consumers across APAC, says GlobalData
As consumers in Asia-Pacific (APAC) continue to move up the economic ladder, they are shifting their preferences towards more sophisticated products that offer better quality, flavor, taste and health benefits. As a result, FMCG brands are consciously innovating to create unique consumer ‘experiences’ rather than just products that are exclusive and convenience-based, says GlobalData, a leading data and analytics company.
GlobalData in its 2018 Q4 consumer survey found that around 64% of consumers in APAC are always or often influenced by how a product impacts their health and wellbeing while making their food choices.
Shagun Sachdeva, Consumer Insights Analyst at GlobalData, says: “Consumers in APAC are willing to pay upmarket prices for products that claim to be artisanal, handmade and natural, and offer unique selling points. This is creating opportunities for the manufacturers to tap into the psyche of the region’s emerging middle-class consumers who seek premiumization.
Dairy is one such category which offers greatest opportunities for premiumization. According to GlobalData’s 2018 Q4 consumer survey, 83% of consumers are willing to pay a hefty price for better quality dairy products with unique flavor and taste in China, followed by 70% in India and 54% in Japan.
Sachdeva concludes: “With consumers increasingly embracing personal health, environmental sustainability and innovative offerings, FMCG brands are reinventing, reformulating and upgrading their products in line with consumers’ preferences. However, they need to be effective in communicating, differentiating and delivering on their promise of premium offerings with innovative packaging and creative advertising. Any brand that fails to fulfill their promise and deliver great consumer experience will struggle to generate consumer loyalty.”