'Ramen, Gim, Air Purifier'... What Are the Popular Products in the ASEAN Region This Year?

KOTRA Publishes '2021 Southeast Asia and Oceania Popular Products' Report

[Asia Economy Reporter Lee Hye-young] KOTRA announced on the 29th that it has published the '2021 Southeast Asia and Oceania Popular Products' report, analyzing popular products by country, market characteristics, and reference points for market entry in Southeast Asia and Oceania.

Southeast Asia and Oceania is a vast market based on an average annual economic growth rate of around 5% and a consumer population of 700 million. The size of the middle class is gradually increasing, and the real economy, which was hit by COVID-19, is expected to gradually recover. KOTRA explained that the region has diverse economic, cultural, and religious characteristics and is located at the center of the world's largest economic zones such as China and India, making it a valuable 'testbed' for Korean companies aiming for overseas expansion.

According to KOTRA's analysis of consumption in the Southeast Asian region, the popularity of convenience foods increased in 2021. As urbanization continues and the home cooking trend has spread after COVID-19, demand for easy-to-cook products at home such as ramen, frozen foods, and seasoned laver has increased. In particular, seasoned laver is gradually gaining popularity as it is recognized as a health food and well-being snack. In Australia, as the popularity of Asian food rises, demand for sauces such as oyster sauce and soy sauce is steadily increasing.

Cooking appliances also received a positive response. In addition to basic items such as electric rice cookers and electric kettles, sales of high-priced cooking appliances such as coffee machines and air fryers have also shown a steady increase.

The demand for health supplements also stood out. Interest in health has increased due to aging, rising prevalence of obesity and diabetes, serious air pollution issues, and gradually improving income levels. Accordingly, various types of health foods such as vitamins, probiotics, red ginseng products, weight control supplements, and dietary supplements gained popularity.

Air purifiers were also popular. The Southeast Asian region faces severe air pollution due to rapid industrialization, high dependence on fossil fuel power generation, and toxic haze caused by fires for farm land clearing. According to market research firm Euromonitor, air purifier sales in Vietnam are expected to increase by more than 85% compared to the previous year, with increasing trends also seen in Singapore and Malaysia.

Growth in furniture and indoor interior accessories is also noteworthy. Demand for home office furniture increased due to the shift to remote work. The gaming industry, which can be enjoyed at home or indoors due to difficulties in going out and traveling, is also growing. Game users in Singapore spend an average of 1.56 hours per day gaming, the longest time in Asia (Korea 1.49 hours).

The popularity of functional cosmetics effective for whitening, UV protection, skin troubles, moisturizing, and anti-aging is rapidly increasing. In particular, the importance of sunblock has recently been widely recognized through influencers, leading to a significant increase in demand for tone-up sunblock with whitening functions.

KOTRA forecasted that next year, in the Southeast Asia and Oceania region, demand for various equipment (construction heavy machinery, cables, LED, paint, etc.) and smart medical devices and health care medical devices will expand due to the resumption of construction and energy projects postponed by COVID-19. It also predicted a boom in the fertilizer market due to a sharp increase in agricultural production and rising international agricultural product prices.

Lee Jong-seop, head of KOTRA's Southeast Asia and Oceania regional headquarters, said, “The Southeast Asia and Oceania region is continuously changing consumption trends based on its young population, ongoing COVID-19 impact, and the spread of the Korean Wave. KOTRA will provide timely information on changing market and industry trends to support Korean companies' entry into the Southeast Asia and Oceania markets.”