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Asia Pacific

The Food and


Drink Landscape
The latest market research, product
innovation insights and consumer
trends from across the Asia Pacific
food and drink industry.

1
CONTENTS
Flower power in the Healthy-ageing dairy
beverage marketplace drinks for seniors

It’s time to reduce sodium A year of innovation: Food


levels in condiments and drink product roundup

Instant noodles find Meet The Authors


opportunity at breakfast
Mintel Global New
Products Database (GNPD)
One-stop source for data, analysis
and insight on product innovation.

Ingredients Claims

Nutrition Packaging

Access the most innovative products


from 86 countries – over 38,000 products
are added every month.

mintel.com
3
Flower power
in the beverage
marketplace
Flower ingredients are increasingly used as an
element to popularise drinks in China.

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The novel use of floral ingredients What is more, Mintel Global
in packaged beverages is an New Products Database (GNPD)
opportunity that manufacturers reveals that new drink product
and brands in China can launches that are floral-flavoured
further explore. are on the rise in China: 28% of
drink launches in 2018 were
Indeed, Mintel research shows floral-flavoured, up from just 15%
that Chinese consumers have a in 2014.
positive perception of flowers
as natural and light flavourings To tap into the appeal of floral
and a quarter say they want to ingredients among consumers, 32% of soft drink
drink more floral tea in the future. beverage manufacturers and
Beyond the tea category, Mintel brands should consider either consumers in China
research also reveals that a using floral flavours that are are interested in
third of soft drinks consumers in already established, such as rose
China have expressed interest in or osmanthus, or exploring new carbonated soft drinks
carbonated soft drinks innovations flavours in their natural plant- with floral flavours.
with floral flavours. based products.

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SAKURA MAKES
WAVES IN CHINA
The trend of using sakura as a flavour mugs—all of which became viral hits
in food and drink products originated among China’s younger consumers.
in Japan, a country with strong cultural
attachment to the flower. Each Spring, Besides trending in the foodservice
sakura-themed products occupy industry, the country also saw the
Japanese retail shelves to welcome the launch of sakura-flavoured instant
sakura blossom. milk tea by Lipton and a light sakura –
and brandy-flavoured packaged cocktail
However, sakura only recently made by Rio.
its way to China after Coca-Cola
launched its sakura-flavoured variant in
2018. Though only available in Japan
at the time, the interesting flavour of the
drink and design of the bottle earned
Coca-Cola Sakura Cherry Blossom
Spring 2018 fast internet fame in
China and became available on
Taobao via Daigou.

As a result, Spring 2019 saw a string


of sakura-related product launches in
the Chinese marketplace. Starbucks,
for instance, released a series of
seasonal products that were sakura-
themed, including a sakura-flavoured Starbucks Cherry Blossom Lipton Ying Cherry Blossom Rio Cherry Blossom
latte, cakes, as well as sakura-designed Flavoured Latte Flavoured Milk Tea and Brandy Flavoured
Light Cocktail

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LEVERAGING THE FUNCTIONAL
BENEFITS OF SUPER FLOWERS Mintel
Recommends
Besides acting as natural flavouring for improving one’s health or treating
ingredients, some flowers are known in a disease, including Chrysanthemum,
33% of Chinese soft Flower ingredients are
China for their health benefits—made rose and honeysuckle. This functional drink consumers perceived positively by Chinese
popular by the practice of traditional perception of flowers can be leveraged consumers due to their natural
Chinese medicine (TCM). by companies, brands and manufacturers
are highly interested and healthy image, and yet, are
in their modern drink launches to appeal in soft drinks that not used to their full advantage
Chinese people have a long tradition of to consumers seeking health benefits by the packaged beverage
using herbal ingredients for medicinal given that a third of soft drink consumers
incorporate traditional sector. There exists an
and treatment purposes. Some flowers in China say that they are interested Chinese medicine. opportunity for manufacturers
are even listed in the ‘bible of traditional in innovative soft drinks made with and brands to leverage
Chinese medicine’ as being effective traditional Chinese medicine. consumers' established,
positive perceptions and create
new floral-flavoured packaged
FUNCTIONAL FLOWERS IN DRINKS drinks with health benefits.

Vita Chrysanthemum Tea Drink Momchilovtsi Rose


Chrysanthemum is known for cooling Flavoured Yoghurt
and removing inner heat. The beauty benefits that roses provide
are highlighted in this drink. In TCM,
roses are used to treat digestive
disorders and menstrual irregularities.

7
It’s time to
reduce sodium
levels in
condiments
Southeast Asians are worried
over excessive salt intake.

8
Consumption of salted and consumers intend to avoid salt in Yun offers a range of reduced-
fermented foods has long been their diets, according to Mintel sodium sauces and seasonings
part of the traditional food cultures research. Meanwhile, almost seven under its Healthy Fit range.
found in Southeast Asia. Sauces in 10 urban Thais and Indonesians, Meanwhile, Reduced Salt Light
and seasonings play an integral respectively, say that they avoid Soy Sauce from Tai Hua Food, one
role in the diets of many of these salt to stay healthy. of Singapore’s leading soy sauce
consumers—and sodium is found brands, contains 40% less sodium.
in many popular Southeast Asian In response, some major brands
sauces and seasonings, like fish and have started to lower the sodium However, Mintel GNPD shows that
soy sauce. levels in their products and are also such launches are missing from
offering reduced-sodium options. retail shelves, suggesting that more
According to the Institute for can still be done.
Health Metrics and Evaluation, Globally, Nestlé said it is
the consumption of excessive committed to further reducing the
sodium, linked to cardiovascular sodium in its food and beverage
and high blood pressure, is in products, such as Maggi Chili
fact the world’s leading cause of sauce, by an average of at least
diet-related death. The study also 10% by 2020. The multinational
shows Southeast Asia is home to has been working towards sodium
a higher-than-average death rate reduction since 2005 and has
attributed to a high-sodium diet. ‘significantly reduced’ the sodium 7 in 10 urban
in its culinary products and
Aware of the effects of high breakfast cereals. In Southeast
Indonesians say they
sodium intake, a third of urban Thai Asia, Thai sauce company Yan Wal avoid salt to stay healthy.

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AREAS OF EXPLORATION
Manufacturers can consider leaving out
salt when formulating their seasonings.
Take for example Bu Nirah Ayam
Goreng Fried Chicken Spices from
Indonesia, a combination of shallots,
garlic, coriander, cumin and pepper
that is free from MSG, colourings,
preservatives and salt. Meanwhile,
Hom-Groon Pork Homemade Stock
from Thailand is made with six Bu Nirah Ayam Goreng Fried
hour-stewed pork back bones and Chicken Spices, Indonesia
CONDITIONING CONSUMERS vegetables, and is said to be free from
MSG, artificial colour and flavour, salt,
FOR LOWER-SODIUM FOOD as well as preservatives. The ready-
to-eat and 100% natural product is
Some brands have avoided overt for sugar reduction in drinks. In 2018, enriched with vitamins, minerals and
reduced sodium claims due to Fraser & Neave (F&N) in Malaysia protein, and is said to be ideal for young
consumer concerns about the taste of reported that it had reduced the amount picky eaters.
lower-sodium products. Companies can of sugar contained per ml in all of its
tackle salt reduction through a series beverages by 34% since 2004. As such,
of smaller changes to sodium levels in they are now better placed to mitigate Tackle salt reduction
their products which consumers may the impact from the government's move
be more likely to accept. Meanwhile, to impose a sugar tax from July 2019.
through a series of Hom-Groon Pork Homemade
companies with an existing sodium smaller changes to Stock, Thailand
reduction programme are in a more In this light, the nutrient criteria on
advantageous position in the event that sodium in the Healthier Choice
sodium levels in
governments decide to impose taxes on programme across the region can serve your products.
sodium-laden foods. as a guide to sodium reduction.

To that end, companies in the sauces


and seasonings sector can learn from
the beverage industry's handling of calls

10
Manufacturers can also tap into Coconut aminos can be particularly
Southeast Asia’s abundance of attractive to consumers who are on the
coconuts with coconut aminos, which keto diet, which is currently trending
are made from the sap of organic in Southeast Asia. When following the
coconut trees blended with sea salt, and keto diet, soy sauce’s high salt content
are gluten-free, non-GMO, organic and can cause fluid retention, and this can
MSG-free. Something to note is that be addressed by consuming soy sauce
coconut aminos are priced at a premium substitutes like coconut aminos.
compared to ordinary or low-sodium
soy sauce.

Mintel Recommends
Despite Southeast Asian governments putting sodium reduction on
the public health agenda, many fall short when it comes to making
sodium reduction mandatory. This may, however, change in the
future, especially since consumers are also voicing their
concerns around salt consumption. Sauce and seasoning
brands should take the opportunity to spearhead salt
reduction one step at a time in order to ensure
consumer acceptance and to exercise
corporate commitment to improving
the health of their consumers.

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Instant noodles
find opportunity
at breakfast
Expanding occasions for consumers
to enjoy their instant noodles.

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While instant noodles have breakfast as a consumption
traditionally been positioned as a occasion can be an opportunity for
snack in India, latest research from instant noodle manufacturers to
Mintel shows manufacturers may boost interest.
be missing an important occasion:
breakfast. As many as 38% of With this potential, brands can
Indians have instant noodles for shine a spotlight on the breakfast
breakfast—significantly higher occasion through their marketing
than the one in five who have efforts in order to change the
instant noodles as a snack. perception that Indians have of
instant noodles. Furthermore, 38% of Indian
In comparison to other Asian manufacturers can look into
countries, India has a relatively low introducing instant noodle consumers have instant
per capita consumption of instant products that are specifically noodles for breakfast.
noodles, according to Mintel created for the breakfast occasion.
estimates. In this light, exploring

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BREAKFAST-SPECIFIC INSTANT
NOODLES FROM ACROSS ASIA

Nongshim’s Bean Sprout Rice Cup CKM’s High Calcium Breakfast


Noodle from South Korea comprises Noodles for Children from China
rice noodles, bean sprouts, dried are specifically for children aged three
pollack and radish in a refreshing soup. and up and the noodles are made with
It is said to be perfect for breakfast or as quality wheat.
a hangover cure.

Instant noodles are generally not


native to India; however, Mintel
research reveals that two-thirds of
Indians have had instant noodles in
the three months leading to August
2018. Per capita consumption
may be low, but the penetration of
instant noodles is high.

Unif’s Breakfast Instant Noodle from One of the key reasons why
China can be prepared by boiling for instant noodles are popular in the
three minutes or microwaving for four morning could be Indians’ common
minutes. The product is said to be rich preference for hot and savoury
in protein, calcium and vitamin E. foods at breakfast time.

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CONVENIENCE AND NUTRITION
In addition to their savoury flavour, the Brands can also enhance the breakfast In order to make the breakfast
appeal of instant noodles for breakfast occasion by introducing better-for-you positioning more robust, brands can
comes from their convenience. In ingredients, which provides credibility look at providing added nutritional
fact, a quarter of Indians say that to instant noodles, a category that’s still components like added vegetables or
they would be encouraged to buy largely considered to be unhealthy. better substitutes to plain flour such as
more packaged breakfast if it had a jowar and ragi.
shorter preparation or waiting time. Mintel research reveals that two in
As such, it is essential that instant five Indians want balanced nutrition in
noodle manufacturers communicate the their packaged breakfast options, while
product’s convenience; one way to do three in five instant noodle consumers
that is to move preparation times to the say that they would like to see added
front of the pack. vegetables in their noodles.

Mintel Recommends
With many Indians now discovering that instant noodles can be more than just
a snack option, brands would do well to leverage the breakfast occasion.
Three in five instant Manufacturers and brands can specifically position and communicate
noodle consumers instant noodles as a good option for breakfast by highlighting the
savoury taste and convenience aspects of the dish. In order to
in India say they strengthen their positioning, they can look at introducing
would like to see healthier versions that may have added vegetables
or better-for-you base ingredients.
added vegetables in
their noodles.

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Healthy-ageing
dairy drinks
for seniors
The region’s rapidly ageing population is
opening up opportunities for dairy companies.

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According to Mintel’s Global Food perceived by many to be functional
& Drink 2019 Trend ‘Through the and effective for maintaining
Ages’, healthy ageing is emerging bone health and preventing
as a critical issue in the food and osteoporosis. In fact, Mintel
drink industry. Preparing oneself research reveals that almost half of
for a longer, healthier lifespan Chinese consumers agree that milk
is particularly relevant today is good for the elderly.
as consumers view health and
wellness as a holistic, proactive and As such, there is an opportunity for
ongoing pursuit. companies and manufacturers to
create dairy drinks that meet the 72% of Chinese
nutritional needs of Asia’s rapidly
Healthy ageing ageing population who are looking consumers aged 55+
is emerging as an to stay fit and healthy for longer. are keeping healthy by
Indeed, research from Mintel
opportunity for the shows that three in five consumers exercising regularly.
food and drink sector. in China aged 55 and older
exercise regularly, while more than
Dairy drinks are in a unique two in five agree that it is worth
position to be marketed as healthy controlling what they eat in order
ageing products as they are already to stay young.

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CREATING FUNCTIONAL PRODUCTS
THAT MEET VARIOUS NEEDS
South Korean dairy and beverage
producer Maeil Dairies Co. has recently
opened a sarcopenia research and
development centre. To cater for the
growing number of seniors in South
Korea, Maeil Dairy plans to invest
more in products that meet their
dietary needs. older adults need a higher protein the future, brain and eye health will
intake than their younger cohorts as feature more prominently and capture
Sarcopenia is the gradual loss of they tend to consume a lower calorie the attention of consumers who are
muscle that occurs as part of the intake which may lead to pronounced concerned about dementia, memory
ageing process, and can affect mobility. protein deficiency. loss and poor eyesight.
Few dairy drinks are said to help with
muscle loss for seniors. In fact, Mintel Many dairy brands currently promote Food and drink formulations can offer
GNPD reveals that the majority of protein for weight management and alternatives to medicine and medical
dairy products aimed at seniors are for pre – or post-workouts, but are not treatment for seniors, especially those
milk powders positioned towards bone highlighting its benefits for healthy who are not actively treating their health
health. This signals white space for ageing. To address this, Nestlé issues. For example, Mintel research
further new product development to launched globally a high-protein product reveals that in China, over half of
meet the growing needs of ageing from their Boost range which targets consumers aged between 55-74 suffer
consumers, including a fifth of metro adults 50 years and older with the from poor eyesight, as well as weak
Indonesians and third of metro Thais slogan 'Stay strong, stay active'. The memory, yet are not doing anything
who associate protein with reducing dairy drink has 15g of protein to help about it.
muscle loss during ageing, according to maintain muscle, and 26 vitamins and
Mintel research. minerals, including calcium and vitamin
34% of urban Thais D, to support bone health.
associate protein with While protein is an important part of a
healthy diet, it is especially important Bone, joint and immune system health
the reduction of age- for healthy ageing. According to the are traditionally targeted in products
related muscle loss. International Osteoporosis Foundation, for seniors. Mintel predicts that in

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Mintel Recommends
Consumers, especially seniors, want to be empowered by the products
that they purchase or consume and do not want their age to be central
to the product positioning. Brands should start promoting senior-
targeted products positively by using a ‘healthy ageing’ concept
and developing products that help seniors stay active,
ease body pain, support mobility issues and promote
Nestlé’s Boost Very Vanilla Complete Meiji’s Gold Advance Malt Flavoured a healthy lifestyle. There is opportunity for
Nutritional Drink from the US has been Milk from Thailand is a senior- further innovation of preventative claims
relaunched with 33% more protein. This targeted drink which contains vitamin A that take a proactive and protective
kosher certified high protein product (helps with eyesight) and vitamin B12 approach to one’s health.
contains 26 vitamins and minerals, (supports the nervous system and brain
20g of protein for muscle health, and functions). It is packaged in a single-
a Calcilock blend of essential nutrients serve ready-to-drink format unlike most
including calcium, phosphorus, senior-targeted drinks that come in
magnesium, zinc, and vitamins D, C powder format.
and K to help maintain strong bones.

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A year of innovation:
Food and drink
product roundup
Mintel’s team of global food and drink analysts
monitor new product launches from around
the globe on a daily basis. From packaging to
ingredients, here we share some of the most
innovative food and drink launches to come
out of Asia Pacific in the past year.

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Check Check Cin’s Rice Water The Bloom Theory’s Mash Tun Soulfull’s Almond Flavoured Three Squirrels’ Mixed Nuts
Gift Set, Hong Kong Crackers, New Zealand Millet Smoothix, India Double Protein Milk Coffee
In TCM, rice water can improve fatigue, These crackers rely on branding and This cereal-based beverage is a Drink, China
lack of appetite and bloatedness. This on-pack communication to tell the story sugar-free product said to contain 12 Popular Chinese snack brand Three
gift set comes with two variants: a dawn of their spent grain ingredients. ‘Mash all-natural grains including oats, green Squirrels recently launched its first
rice water and a dusk rice water. The tun’ is the vessel used in brewing to gram, brown rice, fried gram, foxtail beverage product, and all eyes have
ready-to-drink rice water product is combine ground malt with water. While millet, horse gram, bajra, ragi, jowar, been on this functional coffee drink,
said to be the first packaged rice water companies have been finding ways maize, barley and wheat. It is high particularly as it addresses brain
on the market and also the first to be to repurpose or resell waste or spent in protein, free from preservatives, health—a hot topic in today’s modern
formulated in line with the TCM concept ingredients to maximise profits, it is contains jaggery, and is suitable for world. This product combines caffeine,
of an organ clock which holds the belief only relatively recently that they have vegetarians. This product aligns with medium-chain triglycerides (MCTs),
that each organ has a time of day when started to actively promote where those Mintel’s 2019 Global Food & Drink protein and dietary fibre, making it a
it functions optimally. Dawn rice water ingredients are going. This product Trend ‘Elevated Convenience’ which drink that is not only nutritious and
is best consumed between 7 and 11am illustrates Mintel’s 2019 Global Food & explains how convenience food and tasty, but also one that benefits gut and
for the stomach and spleen, and dusk Drink Trend ‘Evergreen Consumption’ drink will get an upgrade to match the brain health. This product is said to be
rice water between 7 and 9pm for the which highlights a circular economy premium expectations of consumers in developed with the rising prevalence
kidneys. This product taps into Mintel’s where resources are kept in use for the on-demand age. of mental fatigue in mind. As outlined
2017 Global Food & Drink Trend ‘In as long as possible. There is clearly in Mintel’s 2019 Global Food & Drink
Tradition We Trust’ which highlights opportunity for companies to investigate Trend ‘Through the Ages’, brain health
how consumers are seeking comfort where and how their waste ingredients is a lifelong consideration for many.
from modernised updates of age-old can be repurposed into new, on-trend
formulations, flavours and formats. food and drink.

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Pure’s Probiotic Kale Chips Nescafé’s Lively Yuzu Coffee, Aroma Truffle & Co.’s Black Sesamilk’s Original White
with Garlic and Spices, Indonesia Summer Truffle Potato Chips Sesame Milk, Thailand
Australia Coffee culture in Indonesia is going with Parmesan Cheese, Following a plant-based diet is one
Probiotics and fermented foods have strong, and as the demand for Singapore of the fastest developing trends
been appearing across a wide range quality coffee and café experiences Truffle as a flavour is exploding across globally, and is increasingly emerging
of food and drink categories, and not mainstreams, together with the Southeast Asia, and today, is also in Southeast Asia in recent years.
just in dairy or pickled condiments. growth of consumer desire for social coming through in the packaged snacks According to Mintel research, 45%
This flavoured kale chip product is media-worthy experiences, brands marketplace. These truffle-flavoured of urban Thais are looking to follow a
described as being a nutritious farm- have the opportunity to connect and potato chips from Truffle & Co.’s claim plant-based, vegetarian or vegan diet.
fresh local and organic snack, and is engage more with consumers. Today, to be the world’s strongest truffle crisps. This halal-certified product is said to
unique for how it talks about probiotics: brands are trying to offer consumers a These premium quality, hand-cooked provide 392mg of natural sesamin per
‘fermented with one billion CFUs of heightened consumption experience crunchy chips are naturally sourced and 200ml, is free from added preservatives,
vegan GanedenBC30 probiotics, in ready-to-drink (RTD) coffee through said to use the finest and most natural dairy, soy, gluten and cholesterol, and
shielded by a layer of protein, which different means, including the playing of ingredients to arouse sophisticated is low in sodium. It is made from real
prevents them from getting neutralised with flavours and textures. To introduce taste buds. natural sesame and is suitable for
during digestion’. While this technical non-coffee drinkers into the coffee vegans and lactose intolerants.
speak may not be understandable to category and reach out to younger This beverage launch aligns with
all consumers, it does send across Indonesians, Nestlé has introduced Mintel’s 2017 Global Food & Drink
the message that probiotics will do the a new RTD variant under its Nescafé Trend ‘Power to the Plants’, which
required job. This handmade paleo brand which sees the addition of yuzu highlights how consumer preference for
snack is suitable for vegans, is high in into coffee. The inclusion of fruity natural, simple and flexible diets
iron, and is free from gluten and oil. flavours in coffee is an emerging trend will drive further expansion of plant-
to watch globally. focused formulations.

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Calli’s Earl Grey Tea Ice Cream, Peyoung’s Scalp D Seaweed Mecol’s Black Rice Sparkling
Malaysia Max Salty Chow Mein, Japan Drink, South Korea
This product is said to use real earl This instant noodle launch, made in Carbonated soft drinks have a common
grey tea leaves that have been steeped collaboration with shampoo brand perception of being unhealthy, and
overnight for full flavour. It is high in Scalp D, claims to reverse hair loss for Mecol is reversing this perception
protein, and low in fat, calories and men specifically. With ingredients such by rapping into the ‘health halo’ that
sugar, and claims to have double the as kombu and seaweed, as well as surrounds black rice which is said to
flavour and less than half the calories of extracts from salmon and loquat leaf, be rich in anthocyanin and is a great
other brands. The product provides 330 the new launch contains nutrients that source of antioxidants. This grain-based
calories per pint. Consumers across are said to promote hair growth. Hijiki, sparkling drink is made from 10%
the world are seeking a balanced a brown sea vegetable, is also added roasted black brown rice and contains
approach to diet and health, recognising to provide a source of dietary fibre and 70% of the daily adult requirement of
that occasional treats are essential minerals. With new ingredients and vitamin C.
for enjoying life and managing stress. formulation, a crossover of claims from
Mintel has predicted that brands have beauty and personal care is also making
an opportunity to excel by offering its way into food and drink. According
consumers ‘permissible indulgence’ to Mintel GNPD, food products that
that walks the line between health contain hair loss claims are still quite
and indulgence. In a category centred uncommon across not only in Asia, but
on indulgence, this product proves globally—causing this product to make
that consumers can have it all—taste, headlines when it launched in Japan.
indulgence and health.

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Meet The Authors
Megan Stanton
Jodie Minotto Daisy Li SENIOR ANALYST, Jolene Ng
RESEARCH ASSOCIATE MINTEL PURCHASE SENIOR GLOBAL
MANAGER, ASIA DIRECTOR, CHINA, INTELLIGENCE AND FOOD AND DRINK
PACIFIC, MINTEL MINTEL FOOD & MINTEL FOOD & ANALYST
FOOD & DRINK DRINK DRINK

Jodie has more than a decade of Daisy monitors and reports the latest Megan specialises in the application Jolene specialises in reporting on the
experience in the food and beverage innovations and trends impacting the of insights from Mintel Purchase bakery, packaged meals and snacking
industry, working for both global CPG Chinese food and drink market. Intelligence and reports on the global categories, and has experience
companies and SMEs. snacks industry. working in global CPG companies in
the food and drink industry.

Michelle Teodoro
GLOBAL FOOD Samantha Moore Heng Hong Tan Natasha Kumar
SCIENCE AND GLOBAL FOOD AND APAC FOOD AND FOOD AND DRINK
NUTRITION ANALYST DRINK ANALYST DRINK ANALYST ANALYST, INDIA

Michelle is responsible for analysing Samantha is responsible for analysing Heng Hong has over a decade’s worth Natasha is responsible for analysing
and providing insights on health, diet and providing insights on trends, of experience identifying emerging and providing insights on India’s food
and nutrition trends, regulations, and innovations and category opportunities food and drink trends across the Asia and drink market, and brings with her
food science advances. in the areas of dairy and beverages. Pacific region. experience in qualitative research and
consumer insight mining.
In 2019, we’re expanding our global
intelligence coverage and expertise to keep
your business thriving.
Consumer GNPD coverage Investment in Development of
research increases extends to 86 expertise – nutrition, tech – AI, algorithms,
to 35 countries countries ingredients, patents data science

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