The Sweet, Nostalgic Appeal of Asian Specialties

Asian sweets and delicacies, while staying true to their culinary heritage, hold a sure recipe for success in an industry that’s driven by changing consumer preferences and dietary priorities.

By Sharmila Rajah

For generations, Asian sweets—celebrated for their richness and diversity—have been an integral part of the culture, symbolizing joy and prosperity. Asian sweet specialties have an emotional resonance with consumers and feature heavily in the confectionery market. Central to celebrations and seasons, you’ll find delicacies that are lighter and fluffier across the region, the combinations and variety of flavors and textures varying with each country. Like the delicate wagashi, Japanese sweets made to accompany traditional tea ceremonies or gulab jamun, possibly the most popular dessert in India.

Changing consumer preference for more convenience and healthier options has put the spotlight on Asian confectionery. After all, making healthier reformulation is no easy feat, especially within the sweet category. But for starters, Asian confections tend to already be less sweet, while favoring dense, chewy ingredients. They balance sweetness, mostly derived from natural sweeteners like honey or fruits, with elements of savory and sometimes spicy. For example, the Chinese mooncake combines a subtly sweet red bean paste filling with a salted egg yolk middle—a full-moon-shaped delicacy that’s eaten during the Mid-Autumn festival. 

Many Asian sweets are also accidentally vegan—their original recipes do not contain animal ingredients. The wagashi are considered healthy because they are made entirely from plant-based ingredients and are far lower in fat than Western-style sweets. Like much of Asian confectionery, ingredients are fairly simple and all-natural: Indian mithai or sweets are made from butter, milk, nuts, and spices using an age-old technique; and in the case of the mochi, a mix of glutinous rice, water, sugar, and cornstarch.

In the last few years, the popularity of the sweet specialties category has been buoyed by a strong snacking trend. During the pandemic, there was a clear uptick in snacking and that trend remains robust after lockdowns were lifted. The Mondelez 2024 State of Snacking report found that most consumers (88%) participate in snacking once a day while approximately 60% of consumers eat snacks twice a day. Additionally, Gen Z shoppers are on average snacking more and showing an increased desire to experiment with new tastes, textures, and experiences—with 42% claiming they like trying new snack collaborations. Snacking is getting adventurous—flavor, taste, and texture are paramount considerations. The snacking trend will continue to play a pivotal role in driving future growth in the sector.

Asian ingredients and flavors are also becoming more mainstream—their popularity increasing because of their use across different formats. Flavor localization is an increasingly important trend, with many brands balancing tradition with new, exciting taste profiles to attract the younger consumer market whilst reshaping the snacking landscape. Belgian luxury chocolatier Godiva brought a fresh spin to the daifuku, a white ball of mochi. The Ginza Chocolat Daifuku combines fruits (kiwi, strawberry, and kumquat) with the brand’s signature rich chocolate. Nestle’s Kit Kat comes tasting like matcha green tea in Japan and in India, Mondelez recently launched Cadbury Nutty Kulfi and Tangy Mango dairy milk chocolates, leveraging the diverse taste and flavor preferences of Indian consumers. 

The Asia Pacific (APAC) confectionery market is dynamic—its size is estimated at US40.84bn and is expected to reach USD54.37bn by 2030, growing at a CAGR of 4.89% during the forecast period (2024-2030). Nestle SA, Mondelez, Mars Incorporated, The Hershey Company, and Barry Callebaut dominate the market with a significant presence.

Innovation

Established markets like India and Japan are spearheading sweet makers to rethink new, innovative ways to satisfy market needs, from texture and visual appeal to taste and the demand for low-sugar and healthier options. One area where the APAC region is a front-runner is in consumer acceptance of new flavors.

India’s mithai or sweet industry is the oldest in the country—with the traditional sweets segment making up 65% of the country’s confectionery market and is valued at US6bn. A significant change in the industry is the rise of brands experimenting with new ingredients, blending traditional specialties with global dessert forms. You’ll find the classic gulab jamun and jalebis morphing into waffles, French toast, and pancakes.

Continue reading the article in the regional special issue, Asia Pacific Overview.