Snack trends unwrapped: Holistic wellness and protein focus among top innovation drivers across South East Asia

The findings are based on data as of April 2024, collated into the report “Snack Trends Unwrapped: What's Shaping the Way We Snack?”​ by market intelligence firm Ai Palette, which leverages AI technology and studies trends across social media platforms.

The report listed six trend drivers – holistic wellness, protein focus, sustainability, premium indulgence, convenience, and demand for low or no sugar.

Researchers estimated that 130 million consumers are fuelling the holistic wellness snack segment, with a 43% increase in the two-year compound annual growth rate (CAGR).

The protein and premium segments are supported by a total of 40 million consumers, with two-year CAGR increases of 59% and 54%, respectively.

For sustainability and demand for low or no sugar, the figures are 5.8 million consumers with a 45% two-year CAGR increase, and 2.6 million consumers with a 31.6% increase, respectively.

Convenience saw the biggest growth with 35.3 million consumers and a 168% CAGR increase.

“Consumers prioritise tastier and healthier food choices, due to their focus on holistic wellness. [There’s also a] surge in protein-fortified snacks for satiety and muscle health,”​ wrote researchers in the report.

Where applicable, the firm also gave predictions of ingredient trends, grouping them into several categories with risk profiles included – dormant and emerging ingredients require long term investment and come with risks of them not taking off; ingredients facing growing and established demands are ideal for innovation; and ingredients facing declining and fading demands are not recommended.

Holistic wellness​

Food conversations tended to centre around cereals and grains, followed by chips and other savoury sacks.

Themes like natural goodness, weight management, strengthening immunity, and stress reduction are popular.

“There is love for food and love for the overall wellbeing of self,”​ said researchers, indicating that enjoying snacks contributes to both emotional and physical self-care.

Based on these observations, researchers identified ideal ingredients for brands to focus on. These include coconut, brown rice, and apple, which are growing in demand; and ingredients like beans, almonds, and honey, are already seeing established demand.

The emerging ingredients are kimchi, acai, spinach, tofu, kale, and tomato.

Dormant ingredients include coconut milk, pandan, rolled oats, beetroot, and monk fruit.

Coconut oil and turmeric are declining; and konjac, quinoa, and almond flour are fading.

Popular snack options include instant rice porridge with vegetables, granola bars, and freeze-dried tofu sticks, which are also taken for protein boost.

Protein for satiety and nutrition​

Brands are combining protein with other health-beneficial ingredients like vitamins, prebiotics, or probiotics. This adds appeal to health-conscious consumers.

Popular ingredients in this space include brown sugar, lime, and buttermilk, which are growing in demand. Ingredients with established demand are cheese, chocolate, onion, and fish.

Emerging ingredients include Asian staples like soy sauce, oyster sauce, scallion, and coconut milk.

Based on the demand for Asian flavours, brands are offering nutritious alternatives to potato chips, such as tempeh chips and organic chickpeas.

Brands are also increasingly focused on the environmentally conscious – how the raw ingredients are sourced, as well as the sustainability of the packaging, can affect consumers’ purchasing decisions.

Sustainable nibbles​

Companies tend to prioritise sustainability for a few reasons, such as for regulatory requirements, improving brand image, and to meet demands for environmentally friendly goods.

Starfruit is growing in demand as it is relatively low maintenance. It thrives in tropical climates with minimal water and fertiliser, making it resource-efficient. As it can be cultivated locally in most Southeast Asian regions, there is very little environmental impact associated with long distance transportation. Furthermore, the entire fruit is edible and can be used in a variety of ways.

Soybean, on the other hand, tends to be associated with less sustainable production. However, as an Asian staple, it remains among the top spots for popular ingredients with established demand, together with seafood, coconut, milk, and honey.

Currently, snacks like vegan chocolate snack bars and poppadom chips are popular. The latter is made from lentils and chickpeas, which have a lower carbon footprint than protein from animal sources.

These ingredients are also associated with being exotic. This aligns with the adventurous streak among consumers, who are seeking premium indulgence in snacks inspired by international flavours.

Premium snacks infused with global flavours​

Snacks with exotic pairings have been popular in recent years. They include popcorn and fish skin flavoured with salted egg yolk, beef jerky rendang, and matcha chocolate bars.

This is due to the post-pandemic self-reward culture. Additionally, with a general increase in disposable income across the region, themes revolving around “premium” and “international” are rising.

The international theme is driven by a fusion of local and global ingredients, which include established raw materials like beef, tofu, seafood, beef, and rice. Walnut is growing in demand, while ingredients like avocado, melon, and kaya are emerging.

Ingredients that tend to contain high salt and sugar, like store-bought ragu sauce, are declining.

Likewise, the demand for sweet snacks have fallen due to health concerns.

Grab and go, but ditch the sugar​

As the clean eating movement sweeps through a region plagued by diabetes, some governments are implementing sugar taxes as part of their health policies. This makes it more expensive for brands to use large amounts of sugar in their products.

Consumers also tend to associate sugar-free products with being artificial or having an unpleasant aftertaste. Brands therefore need to educate consumers about the benefits of natural sweeteners and ensure the sugar-free options are high quality.

To compensate for the lack of sugar, strong flavours like butter, banana and cashew are safe ingredients with established demand.

Shitake mushroom, passionfruit, mixed nuts and milk are growing in demand; while matcha, peanut butter, and yoghurt are emerging ingredients.

Dormant ingredients include mixed berries and rolled oats, while plant-based cheese and almond flour are fading.

Sugar-free protein bars are getting popular, as they are convenient too.

People need quick and satisfying snacks that fit seamlessly into their routines, making familiar local flavours in convenient formats appealing.

Across all snack categories, convenience is important as tighter schedules are leading to the need for easy consumption.

Some examples of convenient snacks include peel-open yoghurt pouches and bite-sized chocolate cakes packed in single-served formats.

These findings reveal that Southeast Asia's snack market is being shaped by consumer demand for convenience, sustainability, and a balance between indulgence and health-conscious options, with holistic wellness and protein-rich snacks leading the way.