Asia-Pacific Food Spreads Market – Growth, Trends, and Forecast (2018 - 2023)
The Asia-Pacific (APAC) food spread market was valued at USD 3609.34 million in 2016, and is expected to register a CAGR of 6.07%, during the forecast period. The food spread market, aided by apt promotion and marketing, has promising scope in the developing markets of Asia-Pacific. Westernization has augmented the demand for processed foods, and has altered the food habits of the people (especially among the people in India and China), in turn, driving the convenience food market.
Innovation in Products Driving the Market Growth
Innovation in products is a major factor driving the foods spreads market in Asia-Pacific. There is a growing demand for exotic and plant-based spreads due to demand from health-concerned consumers. New product development with varieties of flavors and ingredients addition is an important strategy adopted by major companies to sustain amidst the market competition. Consumers are looking for exotic and ethnic flavor-based spreads. Chickpea-based spreads, which are derived from the product called “Hummus” in the Middle East, has become widely popular in APAC. Greek yogurt-based spreads are also gaining popularity. For Instance, Unilever introduced two product ranges with natural ingredients, no artificial additives/flavor additions, and containing 70% less saturated fats than butter. Unilever has transformed its existing butter spread portfolio toward real/natural products with plant-based oil, salt, water, and no artificial additives. Also the increasing number of private label food spreads is leading to higher affordability and declining prices in the market. Better affordability is, in turn, increasing the consumer base.
Nut and Seed based Spreads Expected to Record the Highest CAGR
The market for food spreads in Asia-Pacific is segmented into honey, chocolate spreads, fruit-based spreads, nuts- and seed-based spread and some other types, which have niche markets. The nut and seed spread market is expected to record the highest CAGR of 3.6%, as many consumers are using honey as a natural alternative of sugar-based spreads. Low- and no-sugar fruit spreads present significant opportunities, as people are changing their diets and consuming less sugar. The chocolate-based spread is the most popular choice. They are consumed mostly with baked wheat products, such as bread, toasts, bagels, and doughnuts. There is an increasing demand for food products containing high fruit content. Innovation in terms of improving the flavor and nutritional value of fruit spreads are much needed to boost the growth of the fruit-based spreads market.
China Leading at the Regional Front
China is the leading country in food spreads. The Chinese food spread market was valued at USD 1604.97 million in 2016, and expected to register a CAGR of 4.48%. Almond butter consumption is also growing at a healthy rate in China. It is mostly used in the preparation of several desserts. India holds immense opportunity for the growth of the food-spread market. The surging population in the country and rising disposable incomes are driving the focus toward healthier and better-quality foods. Japanese consumers are becoming increasingly health conscious, which results in a growing preference for nut-based spreads. The fruit-based spreads are leading the Japanese market, while the nut-based spreads are expected to register healthy growth. The APAC food spreads industry is highly competitive with private label products competing with major brands, in terms of pricing and product innovation.
Major players - B & G FOODS INC., CONAGRA FOODS INC., FERRERO GROUP, FREEDOM FOODS, HERSHEY CO., J.M. SMUCKER, KRAFT FOODS, NATIONAL GRAPE CO-OPERATIVE INC., NATUREFOOD CHOCOLATIER, NESTLE, PREMIER FOODS, SIOUX HONEY ASSOC., UNILEVER GROUP, WELLNESS FOODS, among others.
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