Southeast Asia has long been a region that loves its sweet treats. But as health consciousness rises, fueled by growing concerns over diabetes, lactose intolerance, consumer choices are changing.
The days of sugar-loaded, dairy-heavy ice cream dominating supermarket freezers are giving way to a new wave of innovation—one where health and indulgence go hand in hand.
From low-sugar, plant-based, and functional ice creams to high-protein and gut-friendly alternatives, a new generation of brands is reshaping the landscape.
Artisanal and challenger brands are stepping up to meet the demand for guilt-free indulgence, filling a white space that global giants have been slower to capture. In this edition, we dive into the changing health landscape in SEA, explore how new-age and artisanal players are leading the charge
In this edition, we dive into the changing health landscape in SEA, explore how new-age and artisanal players are leading the charge
Lactose intolerance and diabetes are a major health concern in Southeast Asia
Southeast Asia has some of the highest rates of lactose intolerance in the world due to genetic factors, as many Asian populations lack lactase persistence, the enzyme needed to digest lactose after childhood. On top of that Southeast Asia is also experiencing a diabetes epidemic. The International Diabetes Federation (IDF) projects that diabetes cases will rise by 74% in the region by 2045. The causes for the same are high sugar diets (traditional foods and deserts) and lower levels of awareness. With sugar and milk being the primary ingredients for ice cream, clearly there is a gap between what consumers need and what is there in the market
And with rising awareness levels, people are eager to shift to healthier alternatives; allowing new/ artisanal players to emerge in the region
In Southeast Asia, there’s a growing demand for healthy ice cream options due to rising concerns about diabetes and lactose intolerance. Consumers are actively seeking alternatives that are lower in sugar, fat, and calories, while still offering delicious flavors and textures. This trend is evident in the increasing popularity of plant-based ice creams made from coconut milk, almond milk, or soy, as well as low-sugar options sweetened with natural alternatives like stevia or erythritol.
Online trend results showed that “Sugar free food” and lactose intolerance, are seeing consistent growth in search volume over the past few years, indicating rising consumer awareness and desire for healthier ice cream choices.
The market size of the healthy ice cream segment in SEA could be worth USD 1Bn in the next few years and hence even larger brands want a bite out of it
While currently the healthy or better for you ice cream category comprises about 6 – 7% of the entire market for emerging markets while the same is ~18 – 20% for developed markets like US. Following the trajectory of developed markets, we can expect the opportunity in SEA for this segment to be sizeable in the coming years.
Further the share of ice cream being sold in super marts and convenience stores in countries such as Singapore, Malaysia and Thailand ranges from (40% – 80%) implying a market segment where people are buying ice creams more from modern retail (vs local grocers and mom pop stores) and thus buying lots of premium/ high ASP offerings.
And no wonder even the larger brands are wanting a bite of this pie!
Riding the healthy food wave, the following global ice cream brands have scaled up meaningfully by having the right quality products, compelling brand positioning, and effective customer engagement
The above are select global players that have scaled up meaningfully in the healthy ice cream segment. These brands (mostly backed by PE and VC) have managed to crack the code in healthy ice cream segment by strong retail partnerships, adopting local flavors and managing supply chain with efficiency.
As seen in various food categories such as dairy, bakery, coffee, donuts etc, there is strong growth coming from artisanal players as these players are willing to try new aggressive offerings and are extremely nimble.
