Key takeaways

Eating out, dining in: Consumers want to see innovation in the foodservice sector

Life is returning to normal in Asia Pacific, especially as many countries in the region have managed to get the virus under control faster than western societies. As life returns to normal, consumers will return to visiting foodservice outlets on a regular basis. Indeed, prior to the pandemic, out-of-home eating and drinking occasions were common in the region. This can be attributed to westernisation and the growth of the middle-class feeling more time scarce and having higher levels of self-entitlement. Lockdowns are something that will have significantly impacted the foodservice sector, and physical outlets need to offer innovation to rebound back from the crisis.

While a high proportion of consumers are looking forward to returning to their normal life, others demonstrate caution over returning to the high street. For instance, consumers will be concerned about mass gatherings in public places and will stick to government guidelines on social distancing, even when restrictions are lifted. In addition, consumers will also want reassurance about safety policies that have been implemented in a post-pandemic environment.

It is also worth noting that physical foodservice outlets have more competition than ever before. This increased competition is coming in the form of increased direct-to-consumer channels being produced, as well as premium offerings in retail channels allowing consumers to enjoy high quality food and drink occasions in the comfort of their own home. This shows that innovation within the foodservice channel is important to enable outlets to stand out and create brand identity.

Consumers want foodservice outlets to genuinely excite them, meaning menu innovation and brand identity is important, with consumers wanting outlets to create a form of social buzz. Foodservice outlets can look to do this in two ways. Firstly, they can launch innovative and unusual flavours that challenge sensory perceptions, and secondly, they can highlight sustainability credentials. This goes beyond having plant-based food and drink products on the menu and instead, demonstrating green credentials along the whole of the supply chain.

Menu innovation is something that will be a more effective strategy when looking to entice consumers compared to aggressive price discounting. This is because consumers want outlets that they feel match their attitudes and outlook on life. In addition, aggressive price discounting is something that can increase price sensitivity in the long-term.

Proportion of consumers who say they want food and drink products that genuinely excite them when eating at bars and restaurants (2020)

55% 72% 79%

48% 75% 75% 74%

Australia China Indonesia Japan Malaysia South Korea Vietnam

Source: Foodservice survey, Q2 2020 (10,000 respondents)

63% Proportion of consumers who say it is important foodservice outlets demonstrate sustainability credentials (2020)

71% 81%

72% 80% 82% 86%

Australia China Indonesia Japan Malaysia South Korea Vietnam

Source: Foodservice survey, Q2 2020 (10,000 respondents)

Key takeaways

• Help consumers adopt a long-term approach to health: Consumers are becoming more conscious about their long-term health, especially as they question their current diets and lifestyles. Consumers want better-for-you products that they deem tasty, affordable, and convenient so that they can incorporate these products into daily diets.

• Offer maximum transparency: Consumers want more information than ever before about the products that they purchase. This is because consumers want reassurance about the safety and quality of products. As such, brands need to demonstrate maximum transparency, providing information on the story behind the product.

• Launch functional products that help consumers boost their immune health: Consumers are looking to boost their immune system as they look to minimise their vulnerability to disease and illness. This will drive demand for functional and fortified products with new and innovative ingredients that boost health.

• Ensure that plant-based products are deemed compromise-free: Consumers want to adopt healthier and more sustainable dietary plans but can associate plant-based alternatives with a lack of taste and poor texture. It is crucial that plant-based products are seen to replicate the experience of eating and drinking animal produce.

• Position products as guilt-free and conveniently nutritious: Consumers want products that offer small indulgences for escapism purposes, that do not conflict with wider health goals. This will drive demand for better-for-you products that are high in good ingredients and free-from bad ingredients.

• Validate natural claims: Consumers want reassurance that ingredients used are real and authentic. This means that brands need to validate natural claims and reassure consumers that products are free from chemicals. This can be done through strategies such as streamlining ingredients and simplifying nutritional labelling.

• Challenge sensory perceptions: Consumers want new and unusual flavours that challenge their sensory perceptions and offer a genuine experience. New and unusual flavours will encourage consumers to revaluate their perceptions towards a product category. However, it is crucial that such flavours are seen to be more of a novelty.

• Demonstrate a proactive response to the environment: Consumers are conscious about the environment and believe that corporate greed is a key reason for the level of damage done. As such, consumers are adapting their diets to lead a more sustainable lifestyle, driving demand for products deemed to be green and clean.

• Develop personalised products to address nutritional needs: Consumers want nutritional products that offer maximum efficacy, and innovations such as nutrition genetic testing can help address this. When launching such products, it is important to take ethical factors into consideration.

• Offer innovation within the foodservice channel: Consumers want foodservice outlets that they feel match their attitudes and outlook on life, meaning that brand identity and buzz is important in the channel. Foodservice outlets can look to capitalise on this through leveraging experimental flavours and sustainability attributes.

Surveys used in this report

• COVID-19 survey, Q1 2021 (9,000 respondents)

• Personalised nutrition survey, Q3 2020 (10,000 respondents)

• Meat and plant-based protein survey, Q2 2020 (5,000 respondents)

• Clean label and naturalness survey, Q1 2019/Q1 2020 (13,000 respondents)

• Sustainability survey, Q3 2019/Q1 2020 (8,000 respondents)

• Flavours, Textures & Colours survey, Q3 2020 (10,000 respondents)

• Foodservice survey, Q2 2020 (10,000 respondents)

FMCG Gurus: Top Trends in Asia Pacific

For more information, please contact info@fmcggurus com

Powered by:

FMCG Gurus provides market research and insight into consumer attitudes and behaviours across the food, beverage and supplement markets around the world.