In Asia, snacks come in many varieties: wasabi snacks, rice crackers, tiny dried crabs, dried fish snacks, nut-and-dried-anchovy snack mix, green tea snacks, seaweed, prawn rolls, BBQ shrimp chips, to name a few.
Fruits, nuts and seeds also form a significant part of the Asian diet.
The trend towards healthier food products has led Sunbeam Foods into the market with its broad range of dried fruits, nuts, seeds and blends of all three, providing Asian consumers with nutritionally beneficial, conveniently packed snacking options.
Other trends driving development in the snack food industry include baked (not fried), low-carbohydrate products, trans-fat free, healthy eating, bold flavours, soy based, and conveniently packed, resealable and miniaturised packs of snacks.
“Asian’s are keen to try new products, especially those that grab their attention with innovative packaging and the right health message”, explained Sunbeam Food export manager Garry Embleton.
Yin and yang of Asian market strategy
The strategies that the snack manufacturers have adopted to succeed differ.
The market is large enough to accommodate many players, all trying to meet consumer expectations in their own way.
One of these is Suncoast Gold Macadamias.
“Our biggest successes globally have been born by flavours specifically adopted for the South Eastern Asian tastes,” explained international sales manager Jeremy Roberts.
The company’s first foray into this market was the release of the premium abalone-flavoured macadamia nut, which consisted of all natural ingredients and proved an instant hit.
The Australian company currently exports macadamias with flavours such as smoked hickory, chocolate and honey roasted, as well as regionally specific flavours like abalone, wasabi, lobster and seaweed to China, Taiwan, South Korea, Thailand, Singapore, Malaysia, Hong Kong and the Philippines.
However, the strategy for Sunbeam Foods differs.
The products they target for sale in Asia are all derived from their most successful Australian products.
They do not tailor their products for individual markets but carefully assess the suitability of each product before launching into the target markets.
But there is a one great commonality, Embleton thinks.
“Small packs and bright packaging are ideal for the Asian market.”
Chinese market
China is the second biggest market (US$3.03 billion) for snack food in Asia, behind Japan (US$9.02 billion).
According to Euromonitor International, the snacking landscape in China is in a state of constant transformation – moving from traditional unpackaged sweet and savoury snacks to packaged lines, namely chips and crisps and popcorn.
Developing from a small sales base, popcorn emerged as the star performer, with a current value growth of 93% over the review period (2000 to 2005) and 13% in 2005 alone.
Increasingly popular, chips and crisps grew by over 8% in current value terms in 2005, as did fruit snacks, thanks to stringent measures taken to restore consumer confidence in quality.
Chips and crisps sales in China are dominated by international players with advanced production processes, sophisticated marketing techniques and strong financial support.
They have the competency and technology to adapt to local consumer needs.
For example, the latest launch of the China gourmet series in traditional flavours, such as Peking roast duck and spicy crab, with oriental packaging by PepsiCo China.
Chinese consumers prefer savoury snacks to sweet ones, and salty flavours are a very popular choice.
Traditional savoury snacks such as watermelon seeds and peanuts are sold in street markets and are purchased largely on impulse.
Sunbeam Foods’ Roberts added that although Hong Kong is the biggest market for Suncoast Gold Macadamia nuts, the Chinese market is rapidly expanding.
Flavour and packaging
Some recent trends that have shaped the snack market are the demand for dry-roasted and lightly salted flavours.
Some roasted macadamias are deep fried in saturated oils, such as coconut oil.
However, keeping the recent health trends in mind, Suncoast Gold Macadamias utilises a completely dry roasting process that introduces no extra oil, and therefore no extra fat, to the product.
“There are two big trends in food around the world and Asia is no exception,” said Embleton.
“They are the movement towards healthy eating and snacking, and convenience of packaging.”
In sync with that trend, Sunbeam Foods have innovatively expanded their core products, such as 40g sultana six-packs, to include fruit blends such as apple and sultana, apricot and sultana, tropical blends and the unique fruit ‘n’ut range of snack products.
The packaging allows the snacks to be included in the lunchboxes of kids, teenagers and adults.
While the adult packs are more sophisticated in both packaging design and flavour combinations, the children’s packs are bright and fun, and deliver a variety of flavour combinations.
Cheese flavour is one of the fastest growing flavours in the Asian region and is widely used in potato chips, flour and other multigrain chips making the snack food industry the largest user of cheese powders.
Knowing the tricks of the trade and possessing the skills to implement local flavour is a challenge in Asia.
Major challenges include finding the right import and sales channels, and ensuring the products are appropriately ranged, displayed and supported, as Sunbeam Foods needs to ensure that its products are seen and accepted by Asian consumers for many years to come, concluded Embleton.
Thus, manufacturers and retailers need to constantly revise their production and retailing strategies to keep pace with evolving Asian demographics, lifestyles and snack food trends.