DRIVING SUSTAINABLE EATING IN ASIA

― Greater awareness has not necessarily resulted in action amongst consumers, especially in terms of their food choices.

by Emil Fazira, Insights Manager – Food, Asia Euromonitor

Sustainability continues to be an important long-term strategy for companies, accelerated by the COVID-19 pandemic driving purpose-driven initiatives globally. However, greater awareness has not necessarily resulted in action amongst consumers, especially in terms of their food choices.

When asked what they look for in their food and beverage products, consumers in Asia prioritise health and nutrition (45% of respondents), low price (43%), and superior taste (34%). In contrast, only one in five consumers in Asia seek sustainably produced or raised products and one in four seek eco-friendliness (Euromonitor International’s Voice of the Consumer: Lifestyles survey, fielded in February 2023).

Need to address higher-price perceptions

Breaking down the barriers to consumption of sustainable food and beverages, the top three reasons amongst Asian consumers (from Euromonitor International’s Voice of the Consumer: Sustainability survey, fielded in January 2023) are:

1. High price relative to non-sustainable alternatives – 40%

2. Unclear labelling – 28%

3. Not sure what sustainable features to look for – 26%

The selection of these top three does not differ from other regions, indicating that they are not unique to Asia. Each country globally has a role to play in addressing these concerns, especially with regard to higher prices given the significant proportion of consumers with that perception. The outlook is optimistic, however, given that examining responses by country shows a correlation between consumer desire for sustainability and willingness to pay more (although desire tends to be greater).

Better for the planet and the body

Given that consumers say they are more inclined towards healthy and nutritious products, there is value in driving sustainable products by aligning closely with health attributes and leveraging their benefits. This will allow greater exposure of sustainable claims and increase consumer understanding of labels that they might have linked to health instead of the environment.

For instance, the top definitions of organic products are linked to benefits to the human body.

The number of online SKUs in Asia with organic claim labels grew by 13% between 2021 and 2022 (Euromonitor International’s Product Claims and Positioning) and these are the top ethical labels in food. However, the majority of organic products in Asia’s packaged food industry come from organic baby food, which tends to be sold at a premium, thus feeding into consumer barriers.

Sustainable packaging continues to make inroads

Another key challenge – environmental activity continues to be linked to reducing plastic use.

This is practised by consumers in many ways, such as using more reuseable packaging. Hence, the onus falls onto companies to reduce the use of plastics in their products or introduce more sustainable means of consumption, such as launching refillable initiatives.

Asia Pacific Top Environmental Actions 2022 % of respondents

An example is Nestlé Indonesia, which in January 2023 began the trial of a refillable vending machine at two local retailers, for its Milo and Koko Krunch cereal products. The trial was planned to last only for several months, providing households with alternatives to the use of single-use plastic. Users of the vending machine bring their own containers. As an added value to the machines, consumers can also access product information such as nutritional values, shelf life and the ingredients list of the products via a QR code.

However, many initiatives have so far remained at the industry level, such as reducing plastics use with minimal impact to consumers. CP Meiji, for instance, replaced the label material of its 2-litre milk bottles in Thailand with a thinner plastic type as part of its sustainability efforts.

Opportunities for long-term sustainability potentially tied to food security

Food security concerns have accelerated in the aftermath of the COVID-19 pandemic, with many Asian markets looking to achieve greater self-sufficiency and lower the risk of food shortages in light of supply chain challenges. As a result, markets like China and Singapore are heavily looking into ways to ensure a more stable food supply, while agriculture-dependent economies like Indonesia, Vietnam and Thailand are seeking ways to remain resilient amidst climate volatility.

Plant-based and alternative proteins are thus one of the key approaches for companies to convey their sustainability offerings. Plant-based products are linked to environmental benefits and health and nutrition, which raises their perceived value to consumers.

Overall, products that position themselves as better for the planet and for health have greater opportunities to resonate more closely with consumers. However, it remains the case that these attributes will only gain greater access to consumers alongside more comparable pricing to non-sustainable products.

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