Outlook 2025: What do consumers want?

A good deal of reliable research and surveys is necessary in understanding consumer behavior for the F&B industry. The growing confidence in AI-based market predictions also steers R&D, planning, and decision-making of major manufacturers toward more accurate directions. In a culturally diversified region as Southeast Asia where taste preferences are varied, understanding consumers can be all the more challenging. We asked Christian Philippsen, Managing Director at BENEO Asia Pacific, about what’s important to this region’s consumers.

 

Christian Philippsen, Managing Director at BENEO Asia Pacific

 

Over the years being based in APAC, could you share your observations of consumers particularly in Southeast Asia? Are they motivated to live healthy lifestyles?

Our data affirms the global movement towards consumers’ motivation of living healthy lifestyles. According to a study from 2023ⁱ conducted by One Inch Whale on behalf of BENEO, 1 in 2 consumers in Thailand (55%) and Indonesia (53%) define themselves as health-conscious, while about 1 in 3 already exhibit a strong interest in healthy foods and ingredients (29% and 38% respectively).

 

There is a widespread recognition among these Southeast Asian consumers of the intrinsic link between digestive health and overall health — especially with regard to physical and mental wellbeing, as well as an effective and functionable immune system.

 

In another recent surveyⁱⁱ, nine out of 10 in Thailand say that staying mentally and physically fit is a priority in their life, and 3 out of 4 that they are proactive in preventing health problems.

 

Are young consumers also interested in sustainably-sourced food? Are they conscious about saving food/ food waste reduction?

Consumers are increasingly aware that taking a passive stance to the climate crisis is not enough to address environmental challenges. According to a global survey from 2022ⁱⁱⁱ, 72% of consumers have become more conscious about their level of food wastage after the pandemic. An impressive 91% of consumers said they would prefer to purchase food from organizations that are taking steps to reduce food waste, making it one of the key areas for brands and manufacturers to work on.

 

Older consumers are especially likely to find tangible and personal claims — such as recyclable packaging and the minimization of food waste — to be motivating. According to Rakuten Insight Global: 88% of Gen Z respondents say sustainable packaging is either somewhat or very important to them, followed by Baby Boomers at 79%. Younger adults are taking a broader view. Data shows that it is the younger generation who are especially calling on a more sustainable way to live. Food and drink shoppers aged 18-34 are not only more likely to pay attention to recyclability and food waste, but are also more likely than their older counterparts to consider such factors as organic, support of nature conservation and no animal ingredients.^iv

 

According to a BENEO survey, 55 % of Gen Z say they “take the environmental impact of my diet into account when choosing what to eat”.^v Maximizing the opportunity with younger, environment-conscious consumers means telling a more comprehensive sustainability story. To this end, shifting from animal-based to plant-based proteins is one approach to embark on a more sustainable way to eat. According to the report “Grains of Truth”^vi from EAT (NGO for food system transformation) 40% of Gen Z are interested in eating plant-based (compared to 28% of baby boomers).

 

As the food industry plays a crucial role when it comes to contributing GHG emissions, making the right food choices is important in order to mitigate or reduce the individual CO₂ footprint. Within BENEO, we have defined the goal to decrease waste while increasing circularity as one of our impact areas within BENEO’s Healthy Planet Plan — the company’s sustainability strategy. For instance, we are applying circular economy principles by valorizing co-products resulting from their food ingredient manufacturing processes for animal nutrition.

 

In a snapshot: Young consumers are more mindful about their mental and physical health, as well as about reducing food waste and caring for the environment. (Photo courtesy of BENEO I freepik)

 

Let’s consider the predictions made for the F&B industry for 2024. What do you think were the hits and misses, as far as F&B formulations are concerned?

Health remains a main driver with mental wellbeing being a rising star in the food and beverage industry. We can recognize the increasing awareness that right food choices can have a huge positive impact on mood. Hence, consumers are proactively looking for products that support them in maintaining mental health. Prebiotic fibers, such as inulin or oligofructose are promising ingredients for manufacturers to position themselves in this arena. One of our scientific studies^vii from 2023 demonstrates that the intake of the prebiotic dietary fiber oligofructose promotes a significant increase in Bifidobacteria in the gut, and can result in substantial improvements in mood in healthy adults with mild to moderate feelings of anxiety and depression. The results add to the growing body of evidence showing that the composition of gut microbiota and resulting metabolites impact mood state.

 

Additionally, acting as a global company we see that — when it comes to plant-based meat alternatives — there is more hesitation within the Asian food industry to develop products compared to Western markets. We see one explanation for that in the fact that Asian cuisine traditionally consists of a lot of vegetables as well as plant-based protein sources such as tofu or tempeh, potentially decreasing the need for ‘new generation’ meat substitutes.

 

How has AI influenced product development so far?

Artificial Intelligence (AI) has definitely disrupted the global market, including the F&B industry. Transformations include enhancing product innovation and boosting operational efficiency. Brands now use AI to analyze consumer preferences, hence enabling the development of new flavors and products that align with current market trends. AI optimizes recipes for taste and nutrition, meeting demand for healthier options, while also personalizing consumer experiences by recommending products based on individual tastes.

 

Additionally, AI enhances supply chain efficiency by accurately predicting demand, which reduces waste, and supporting sustainable practices. As the technology continues to evolve, it promises to further transform the food and drink industry with advancements in robotics, analytics, and sensory evaluation — thereby allowing brands to innovate efficiently and sustainably.^viii

 

What were the challenges that manufacturers faced in the past year, and how did BENEO help them overcome any of these?

We also experienced a huge demand for clean label formulations. An ongoing challenge for manufacturers is to achieve equal properties when it comes to aspects such as preserving properties and shelf life, sensory attributes such as color, flavor and texture, to name just a few. Reformulation or new product development according to clean label requirements is more than replacing/avoiding additives, it’s about considering the whole food matrix. Here, our dedicated team of application experts supports the customers with their vast know-how in order to develop formulations that tie in with the targeted concept, positioning, and sensory profile.

 

What can food and beverage manufacturers expect from BENEO this year?

Customers can be sure that they can expect the same from us as they are used to — being a reliable partner that is supporting with know-how within all steps in the supply chain, be it when it comes to regulatory issues — which are versatile in the APAC region — application-related challenges, or marketing-centered demands.

 

BENEO is paying close attention to one emerging trend: consumers increasing focus on weight management as part of a broader approach to health and wellness. This trend is evident in various regions, including China and Japan, where there demand for products that support weight control and holistic health is strong.

 

In January this year, BENEO shared the latest scientific evidence showing that the answer to managing weight may lie in the gut. This study, observed across 1,184 participants, found that consuming prebiotic chicory root fibers selectively increased beneficial bacteria in our gut, and over time effectively reduced body weight, BMI, fat mass, and waist circumference in people who were mostly overweight and obese.

 

With 1 in 8 people in the world living with obesity and 2.5 billion adults overweight, BENEO’s prebiotic chicory root fibers, Orafti^® Inulin and Oligofructose, could be an important tool to support healthier weight management. We are also happy to see that the benefits of chicory root fibers for health are increasingly acknowledged by food safety authorities resulting in approved claims that manufacturers can use. After India, Indonesia and China, we are confident that there are more countries to follow.

 

Are there new developments in the area of functional food ingredients from BENEO?

What we see is that our vast body of research paves the way for promising product developments that tie in with current consumer demands. BENEO’s ingredients offer a scientific proven solution to be part of products positioned in the realm of healthy aging, weight management and mental wellness arenas, which we see as key playing fields for the Asia Pacific region. Beyond offering health benefits, the portfolio of functional fibers and smart carbohydrates score with their technical properties, enabling manufacturers to approach issues such as fiber enrichment and sugar/fat reduction in a way that nutritional benefit and maintaining a desired sensory profile can be combined, making it easier to stick to healthier eating habits in the long-term.

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^I BENEO Prebiotics survey 2023

ⁱⁱ BENEO Healthy Ageing survey 2024

ⁱⁱⁱ Capgemini Research Institute 2022: Reflect. Rethink. Reconsider. Why food waste is everybody’s problem. 10,000 consumers over the age of 18 were surveyed in 10 countries across North America, Europe, and Asia Pacific, including Australia and Singapore. https://www.capgemini.com/insights/research-library/food-waste/

^iv Mintel – Packaging states its case against food waste at COP28

^v BENEO Healthy Ageing survey 2024

^vi EAT-Forum-Report.pdf

^vii Jackson PPJ, Wijeyesekera A, Williams CM, Theis S, van Harsselaar J, Rastall RA, (2023) Inulin-type fructans and 2’fucosyllactose alter both microbial composition and appear to alleviate stress-induced mood state in a working population compared to placebo (maltodextrin): the EFFICAD Trial, a randomized, controlled trial. The American Journal of Clinical Nutrition. Published 29 August 2023, DOI: https://doi.org/10.1016/j.ajcnut.2023.08.016

^viii Mintel – Patent insight: AI in food, beauty and retail