Impact of COVID-19 on SE Asian food and drink markets

Research from Mintel, a global market research firm, has revealed the changes in consumer sentiment and behaviour surrounding food and drink categories as a result of the spread of COVID-19 across Southeast Asia. According to Mintel, the global spread of COVID-19 has forced Southeast Asian consumers to change their eating habits and embrace new shopping practices.

“The threat of infection is reinforcing the importance of having a healthy immune system, unlocking new opportunities for brands to innovate around immunity to ward off future diseases. The online grocery sector is seeing a surge in activity due to the fact that many shoppers are staying home, presenting huge opportunities for grocery retailers to better engage with consumers through measures that bring added value and convenience. We’re also seeing growing interest in at-home cooking, which presents challenges and opportunities for brands looking to engage with those preparing and enjoying tasty meals at home,” said Tan Heng Hong, APAC Food and Drink Analyst at Mintel.

In the current consumer climate, food and drink categories with strong immunity claims can emphasise the importance of immunity to protect wary consumers. The Mintel Global New Products Database (GNPD) reveals that growing-up milk (for children aged 1–4) comprises 16% of food and drink product launches in SE Asia that carried an immunity claim, between March 2017 and February 2020. This was followed by meal replacement drinks (6%), and drinking yoghurt/liquid cultured milk (6%).

“Manufacturers of immunity-boosting food and drink products are actively promoting the importance of immunity to strengthen the body during the pandemic. These immunity-enhancing products include vitamin-fortified food and drinks, as well as spoonable yoghurt, drinking/cultured yoghurt and nutritionally complete drinks,” Heng Hong said.

Consumers are also turning to the convenience of ordering their groceries online, as people remain indoors to minimise exposure to COVID-19. This has led to an increase in orders for online grocery vendors.

“Online grocery players can maximise the current situation and gain new users by showcasing the benefits of shopping for groceries online, including having sufficient stock of popular items during the pandemic, safe handling and delivery of parcels, free delivery, promotions and use of e-payments,” Heng Hong said.

Mintel research reveals that 71% of consumers in Vietnam cook meals from scratch all or most of the time. However, 52% say it is difficult to prepare healthy food that tastes good. As more consumers dine at home to avoid crowds, food manufacturers can step in to provide a more convenient, tasty and healthy meal solution.

“With the rise in cases of COVID-19, Southeast Asian consumers are changing their food and drink habits. Even after the current situation calms down, given the scale of the outbreak, and depending on the duration of lockdown measures, the pandemic is likely to leave an indelible mark on consumer lifestyles. Key behaviours such as vigilance around immunity and hygiene will stick around for the long term, as will dependence on online grocery shopping and, possibly, even the habit of at-home cooking,” Heng Hong said.

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