A recent softening of price increases in the Asia Pacific region presents a 'golden opportunity' for brands and manufacturers to drive volume growth, NIQ has said.
According to a study by NIQ BASES, the innovation measurement arm of the company, out of 218,174 brands in Asia Pacific, only 3,857 grew more than 10% in volume in 2023, and were able to achieve least 1% share.
As NIQ puts it, innovation is a 'key catalyst' to drive growth in the region, with brands boasting strong innovations witnessing a 30% volume increase in year one, on average.
'A Holistic Approach'
“To achieve maximum success, brands must focus on a holistic approach that combines product innovation with strategic marketing," commented Terence Colle, managing director of NIQ Strategic Analytics & Insights for Asia Pacific.
"By developing exceptional products and executing effective campaigns, brands can attract new customers, create new usage occasions, justify premium pricing, and boost ad-driven sales by up to 20%. This powerful combination is essential for driving sustainable growth and staying ahead of the competition."
'Claim' New Products
According to NIQ, around three fifths (58%) of consumers in the APAC region seek to 'claim' new products before anyone else – a level of competitiveness that brands should seek to harness.
NIQ suggests that brands can achieve this by innovating across several dimensions – expanding into related categories and markets, adapting out-of-home experiences for home use, enhancing convenience and enjoyment, addressing emerging health needs, and developing plant-based or natural products, including vegan options.
In terms of specific category actions, meanwhile, in general terms consumers are increasingly seeking healthier packaged foods, reflecting a shift towards wellness.
In dairy and alcoholic beverages, there is a demand for enhanced flavours, while beverage brands face expectations for options with lower sugar and benefits for gut health. In beauty and personal care, avoiding harmful chemicals is essential, while personalisation is also gaining importance. Elsewhere, household care brands are seeing rising demand for products free from harsh chemicals, with a focus on safety and efficacy, NIQ notes.
