The demand for naturally-sourced and environment-friendly products is on the rise in Southeast Asia, including the Philippines, according to the latest survey conducted by Nielsen.
Nielsen, in a news statement, said naturally-sourced products have gained 72 percent acceptability rating from regional in the region for the last three years.
The data also showed 77 percent of respondents claimed that sustainability has become an essential criterion in their choice.
“More and more consumers are pursuing a healthy and environmentally-friendly lifestyle through the products they choose to purchase and use. Manufacturers need to address these rising consumer needs in order to find a new driver for growth,” Jameel Kassamali, NielsenIQ BASES Leader for Southeast Asia, said.
The data showed 85 percent of respondents would like to see more “naturally-sourced” food products or cooking essentials such as snacks, rice, oil, and chocolates, while 76 percent in beauty and personal care products.
The survey also showed 75 percent of respondents would like more naturally-sourced nutritional products such as food supplements, vitamins and milk formula, while 90 percent expects companies to take actions to protect the environment.
“Our recent global research reveals that 81 percent of global consumers will continue to restructure their spend in 2021. But at the same time, 71 percent are willing to pay more for higher quality,” Kassamali said.
“This implies that despite the challenging environment, consumers are willing to justify a place in their basket for the products that bring value to them and resolve a point of tension in their lives,” he added.
Nielsen said this only means innovation remains relevant in Southeast Asia markets. It stated that despite the Covid-19 crisis, innovation continues to drive fast moving consumer goods, or FMCG, growth in the region.
In 2020, Nielsen said a higher number of innovations were found in personal care with deodorants, shampoo, moisturizers and toothpastes.
In Thailand, Nielsen said innovations generated higher sales in 2020 compared to the previous year in key categories like personal care, household care, impulse and non-alcoholic beverages.
In Indonesia, innovative products accounted for only 4 percent of products in the market compared to 10 percent in 2019. These contributed to 0.2 percent of total FMCG sales versus 0.5 percent in 2019.
Nielsen’s Top Breakthrough Innovation Winners in Southeast Asia for 2020 included seven firms based in Thailand; four in Indonesia, and two in Malaysia and the Philippines.
The manufacturing firms included in the list in Thailand were BDF, L’Oréal, Thai President Food, Mary Anne Dairy, Ichitan, and Yanhee Vitamin Water.
In Indonesia, the firms were Danone, Paragon, L’Oréal, and Kino. The firms in Malaysia were FarmFresh and L’Oréal while the firms in the Philippines are The Coca Cola Company and PT Harum Alam Segar.
“The brands that made the 2020 list reflect a wide range of products and approaches that succeeded in making meaningful connections with consumers, an impressive feat within an increasingly crowded marketplace,” Nielsen said.
NielsenIQ provides a complete, unbiased view of consumer behavior, globally powered by a groundbreaking consumer data platform.
The company aims to enable bold, confident decision making for the world’s leading consumer goods companies and retailers.
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