The rise of “affordable premium” products – positioned between mass-market and luxury segments – has been a major growth driver, offering consumers enhanced taste at accessible price points.
After a dip in 2022 driven by rising ingredient costs, Asia Pacific’s snack market is rebounding on the back of “affordable premium” products that balance taste and value, according to data analytics company Euromonitor International.
“In 2022, snack sales experienced a decline due to price increases across most categories,” said Megumi Matsunaga, Food & Nutrition Senior Consultant at Euromonitor International. “As snacks are generally perceived as non-essential, they were among the first items consumers reduced when tightening household budgets.”
The downturn was most pronounced in confectionery, which recorded a 5% year-on-year decline in retail value, driven largely by global cost inflation in key ingredients such as sugar and cocoa.
Chocolate stays resilient with smaller packs
Despite high cocoa prices, chocolate has remained resilient largely due to packaging innovation.
“The variety of packaging sizes has helped drive sales, allowing consumers the choice to put forth a smaller cash outlay at a time,” said Emil Fazira, Asia Pacific Food Insight Manager at Euromonitor International.
In 2024, 79% of chocolate confectionery in Asia Pacific was sold in the 0–50g size range – significantly higher than the 55% global average. Fazira said this packaging diversity, paired with a dynamic innovation environment, has helped brands sustain consumer interest despite cost pressures.
Mindful spending reshapes retail strategies
However, a behavioural shift after 2022 may reshape how brands reach consumers. Only 19% of APAC consumers say they often make impulse purchases – down from 24% in 2019.
“More consumers perceive their buying habits to be more mindful, a result of the challenging macroeconomic conditions as households began to pre-plan their expenditure more,” Fazira said.
As a result, brands may need to pivot from traditional in-store impulse triggers toward digital engagement earlier in the shopping journey.
Fazira advised that in-store display strategies should also be reviewed if consumers are less inclined to make last-minute purchases at the cashier.
Taste influences purchase decisions
While affordability remains crucial, consumers are no longer prioritising price alone.
Euromonitor’s Lifestyle Survey (February 2025) found that 46% of Asia Pacific consumers still view low pricing as the most compelling feature when choosing food and drinks, but 35% are now drawn to products that deliver superior taste.
Taste is emerging as a powerful differentiator where consumers seek sensory satisfaction, said Matsunaga.
This shift suggests that indulgence – once considered a luxury – is being redefined around experience and accessibility.
Affordable products that offer a “premium feel” without a high price tag are finding resonance with value-conscious consumers.
Vietnam, Philippines projected to lead the growth
Vietnam and the Philippines are projected to lead regional snack growth in 2025, with retail value increases of 7% and 6% respectively.
“Both markets benefit from population increase, which continues to drive organic growth in snack consumption,” Matsunaga explained.
“In Vietnam, snacks also play a culturally significant role in socialising, often chosen as gifts or served to guests during home visits.”
Confectionery and ice cream seeing growth
Confectionery and ice cream are set to deliver the strongest value growth across APAC – up 6% and 5% respectively. But while confectionery’s volume growth remains weak (just 1%), ice cream continues to expand per capita consumption, particularly in South East Asia and India.
“Ice cream is experiencing steady growth, although expansion is currently limited by cold chain infrastructure challenges,” said Matsunaga.
She noted that mochi ice cream in Indonesia has been a key growth driver, reflecting consumers’ growing appetite for indulgent dessert options.
A new era of ‘smart indulgence’
Overall, Euromonitor’s findings suggest that Asia’s snack recovery will be shaped by value-driven indulgence – products that balance affordability, sensory appeal, and innovation. Ice cream and chocolate exemplify how brands can tap into comfort and novelty without pricing out cautious consumers.
In essence, 2025 marked the start of what could be described as “smart indulgence” – where consumers still want to treat themselves, but do so mindfully, seeking more taste, creativity, and value for every dollar spent - and this is likely to see continued momentum in 2026.
