The latest research from data analytics company, Euromonitor International, has shown Asia Pacific and Australasia as a whole are being challenged by low consumer demand for snacks, following years of inflation. Food & nutrition industry manager , Carl Quash III, discusses the rise of digital platforms in snack marketing.
The global market for snacks is expected to see sustained value growth, with retail sales projected to surpass US$680 billion in 2024, up 3.7 per cent from 2023 in constant value prices. Asia Pacific is forecast to exceed US$160 billion in 2024, just behind North America at US$195 billion.
North America leads with a 28 per cent share of global snack sales in 2023, owing to a high demand for innovative and convenient snack options. Asia Pacific followed at 24 per cent, with Western Europe at 23 per cent.
Emerging regions like the Middle East and Africa are forecast to lead snack value growth with a CAGR of 4.6 per cent from 2024 to 2029. These regions are experiencing a rapid increase in urbanisation and disposable incomes, driving demand for a wide range of snack products. Asia Pacific and Australasia are forecast to see a CAGR of 2.3 per cent and 2.1 per cent respectively, in the same period.
“Consumers have been under unprecedented stress these past few years with the cost-of-living crisis among a number of other challenges,” said Quash III.
“Snacks have been leveraged for comfort and stress reduction by providing consumers entertainment at gatherings, joy as affordable gifts or presents, and pleasure as self-treats or rewards.”
In 2024, Australia saw one in ten, and New Zealand saw one in nine adults choose to replace meals with snacks. Both countries saw nominal growth of between 1 per cent to 2 per cent from 2023 to 2024.
“The motives driving consumers to snack are expanding and manufacturers are intersecting these new occasions and intents with offerings that provide opportunities for broader consumption throughout the day,” said Quash III.
Snacks and consumer influence in the digital age
Digital platforms are influencing snacks more than ever. Online snack sales in Australia have been growing for more than a decade and are set to reach 8 per cent of all snack sales this year – crossing more than $1 billion AUD. The rise of digital influence on grocery shopping habits has become so important for not just discovery, but validation, budgeting, and so many other purposes.
Consumers will leverage online sources for health purposes – to check nutrition facts, ingredients, or claims to ensure they meet their dietary standards. Prices and stock availability are also researched online to save the time or money spent on driving to a store or waiting to be transferred to different retail departments. Euromonitor observed ongoing channel swapping behaviours due to price or deal availability in its 2023 Snack Trends, .
Consumers also now enjoy the entertainment element that digital platforms provide. According to Euromonitor Voice of the Consumer: Lifestyle Survey, fielded January to February 2024 (n=39,717), more than one in three Aussies tend to watch TV or stream videos while snacking (37 per cent). Snack taste test/product reviews, food experimentation videos, and meaningful and creative brand ads are very popular content pieces.
Social media has proven on multiple occasions to be a powerful promotional tool. The global, viral success of the Dubai chocolate, freeze-dried candies, and other snacking trends have gotten rise with the aid of social media. Social media also offers inspiration, clarity, and moments of connection for retailers and brands. It’s a tool to understand what consumers really think about storefronts, products, or experiences in an unsolicited fashion (i.e. social listening).
Businesses that are a part of online communities benefit from refined communications, amplified promotional success, and a route to the direct feedback of the customers they serve. Ultimately, digital platforms can support brands and retailers with better alignment to the demands and needs of shoppers.
Social media isn’t this miracle solution though. It can reveal some really telling insights, amplify reach, and help in lots of ways; however, it is important to not confuse the digital world with consumers in the real world. Importantly, consumers may demand something with low feasibility or with a humorous manner not intended to be taken as truth online. A snack like ice cream, for example, has obvious limitations when it comes to e-commerce due to the need for cold chains.
It has not seen e-commerce shares reach the levels of savoury snacks nor sweet biscuits in Australia. And even with quick commerce, the characteristics of frozen ice cream influence demand fulfilment. A consumer may share online that they want a never melting ice cream, but how that translates to a business priority must be appropriately weighed.
For reasons like these, an understanding of consumer behaviour and omnichannel considerations remain important when ingesting insights and data from digital platforms and translating them into action as there are real world implications.
Using digital platforms to raise interest
There are a number of ways that manufacturers large and small are using social media. Smaller players have used it to build hype by creating funny or relatable content that piques potential consumer interest. And larger manufacturers are leveraging social media to connect with avid consumers and learn what topics are on their mind and how they may better craft the next marketing campaign or product innovation.
Livestreaming to demo product characteristics in real time with limited time offers. Promotion amplification with giveaways that require content reposts, shares, likes, or follows. Building brand and community with influencer support. And even online consumer engagement through comments, polls, quizzes, consumer content reshare, and more.
Overall, a big part of social media and snacking’s success has been the ability for people to connect and share/exchange stories. Over time, there has been a growing problem of ultra opinionated and the spread of disinformation – which AI (artificial intelligence) is expected to bring greater uncertainties. Issues like cyber bullying, body image concerns, and many others have impacted youth and garnered the attention of leading global human welfare organisations like the United Nations.
It has culminated into regulations around the globe and even the ban of social media to users under 16 in Australia. The Online Safety Amendment (Social Media Minimum Age) Bill 2024 in Australia is set for late 2025 and will ban minors under 16 from using apps like Instagram, Snapchat, X and others or face fines.
Younger consumers are the highest frequency snackers in Australia and the ban will limit snack marketers reach to them. In the end, regulations are really setting the course to scale integrity and reassure the intent of digital media platforms – which is to help simplify our lives and keep us connected.
