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According to data and analytics company GlobalData, functional snacking is set to reshape the Asia-Pacific (APAC) food industry, with the surge in health consciousness and evolving dietary preferences driving an escalating demand for functional food products in the region. Meanwhile, the increasing awareness of lifestyle-related diseases and the significance of preventive healthcare is also prompting consumers to actively search for foods that contribute to improved health outcomes and overall wellbeing. Priyanka Jain, consumer analyst at GlobalData, commented: “Despite the waning of Covid-19 concerns, APAC consumers are gravitating towards natural, organic and functional food products that are perceived to help alleviate health concerns.” This aligns with the findings of GlobalData's Q4 2023 survey, which indicated that 62% of APAC consumers often or always consider how a product or service affects their health and wellbeing. The health trend is driving demand for probiotic and nut-based snacks. As such, the APAC health and wellness food market has grown at an annual rate of about 7–9% from 2017 to 2022. As consumers return to their pre-pandemic lifestyles, there is a growing interest in foods that enhance physical stamina and cognitive alertness, reduce fatigue and stress and support relaxation and sleep. Tim Hill, key account director for GlobalData Singapore, noted: “Premium prices remain a key barrier to the penetration of health & wellness attributed foods in the highly cost-conscious retail market. Moreover, amid high inflation and the prolonged Russia–Ukraine conflict, food manufacturers are under pressure to pass on these high input costs to consumers to conserve their margins.” Jain added: “Manufacturers are thereby compelled to strike a fine balance between price and health benefits. Moreover, increasing participation in physical activities will stimulate demand for functional on-the-go offerings, particularly for snacking and mealtime accompaniments.” Hill concluded that functional or fortified food products have been a niche segment in the APAC region, primarily due to their higher prices compared to regular variants. To broaden their consumer base, manufacturers need to emphasise the benefits linked to product consumption. According to Hill, prominent companies are also exploring alternative ingredients and production techniques to create healthier alternatives with more personalised claims, such as 'promotes gut health and blood circulation' and 'energy-boosting'.