September 05, 2025

Treats trends, plant-based bets, and a new way to move goods

Happy Friday! Catch up fast on what’s shaping Southeast Asia’s FMCG scene. Three economies clock faster growth, a study proving consumers get picky about sugar, Indonesia tightens screws on packaging safety, Coca-Cola Vietnam experiments with farm-waste pallets, and a Malaysian startup stakes a claim in plant-based R&D. Let’s get started.

Business

Singapore, Vietnam, and the Philippines notch faster growth

The Philippine economy grew 5.5% in Q2 2025, faster than Q1’s 5.4%. Vietnam’s surged 7.96%, while Singapore’s expanded 4.3%.

HOW WE GOT HERE: Early 2025 saw a steady post-pandemic recovery across these countries. The Philippines grew 5.4%, driven by a surge in government spending and private consumption. Vietnam’s GDP rose 6.93% in Q1, led by strong services and industry growth. Singapore’s GDP grew 3.9%, driven by stronger global demand.

WHY IT MATTERS: This expansion points to steady consumer spending and trade activity, including demand in retail, F&B, and other consumer-driven sectors. But inflation and global uncertainties mean F&B players must stay agile in managing costs and supply chains as well as food safety to sustain growth and consumer trust.

WHAT’S NEXT: The Asian Development Bank has pared back its 2025 GDP forecasts to 5.6% for the Philippines (from 6.0%), 6.3% for Vietnam (from 6.6%), and 1.6% for Singapore (from 2.6%). It warns that higher U.S. tariffs could dampen trade and investment sentiment.

Trends

Sweet but healthy treats win over consumers

Even while indulging, consumers are getting picky — 69% now prioritize health attributes in indulgent foods, with low sugar topping the list, Cargill study finds.

HOW WE GOT HERE: Wellness priorities are now shaping even the “treat” category. Shoppers aren’t abandoning snacks and desserts, but they expect them to deliver both pleasure and some nutritional upside.

SO WHAT: Daily indulgence is becoming the norm, with many Southeast Asians reaching for café drinks, cookies, or ice cream. This trend offers a sweet spot for food and beverage companies to rethink recipes, sourcing, and marketing.

WHAT’S NEXT: Winning brands and products will have balanced flavor and function, influencing what ends up on supermarket shelves and café counters. The opportunity is in capturing this "Treat Yourself" market by positioning everyday treats as both satisfying and better-for-you.

Policy

Indonesia sets higher bar for food packaging safety

Indonesia has introduced landmark regulations that cap the amount of substances that come into contact with food. The overhaul aims to align the country's policies with international standards.

HOW WE GOT HERE: Growing scrutiny of food safety, alongside pressure from export markets, drove regulators to tighten requirements involving materials and substances. A wider regional push has also been toward safer and cleaner packaging.

WHY IT MATTERS: For producers, compliance will be a hurdle, but meeting these rules could improve export prospects and strengthen brand reputation at home.

WHAT’S NEXT: Manufacturers must review supplier lists, adjust material choices, and expand testing regimes. Those that move early could turn compliance into a competitive advantage.

Policy

Coca-Cola Vietnam pilots pallets from farm waste

Coca-Cola Vietnam is trialing the upgraded ‘Made in Vietnam’ NetZero Pallets, which are made from agricultural waste like coconut fiber and coffee husks.

HOW WE GOT HERE: Standard pallets are typically made from wood, plastic, or toxic materials, contributing to deforestation, waste and greenhouse gas emissions. Growing environmental awareness is prompting companies to reimagine even basic logistics tools.