Against a backdrop of fast-moving, innovative and value-driven competitors, Australian and New Zealand FMCG brands are facing what Euromonitor terms the Next Asian Wave – a structural shift reshaping flavour expectations, aesthetics, digital behaviour and product discovery across both markets.
“If you are a brand from Australia or New Zealand and you are not grasping the significance of the next Asian wave, then locally, you’re going to have stronger competition, and it will be harder for you to compete,” explains Julia Illera, research manager at Euromonitor International.
Demographics and culture are accelerating the shift
The momentum behind the Next Asian Wave is even stronger in Australia and New Zealand than in comparable Western markets. Local demographics and cultural consumption patterns are accelerating the influence of Asian flavours and formats across many FMCG categories.
Large Asian diaspora communities are setting new reference points for flavour, beauty formats and retail expectations, she explains. “They’re also acting as cultural conduits, normalising products, ingredients and aesthetics that once sat outside the mainstream.”
At the same time, Australians and New Zealanders are consuming culture more broadly. Once niche interests, anime, K-beauty, K-food, K-dramas, and cross-border e-commerce are now everyday touchpoints. Travel between Australia/NZ and Asia continues to grow, further strengthening cultural familiarity and appetite for Asian-led products.
Illera notes that China is now driving the next chapter. “At the beginning, there was Japanese beauty or Korean beauty, but now there is C-beauty from China. At the same time, there are many external pressures in the market, like rising costs, so these brands are creating opportunities for something affordable, innovative, and that consumers can connect with.”
Asian platforms are changing what ‘good retail’ looks like
Asian-origin retail platforms are accelerating this shift by reshaping consumer expectations around pricing, discovery and speed. Temu, TikTok Shop, Shopee, Lazada and Shein have normalised ultra-fast product cycles, algorithmic curation and a mobile-first shopping experience.
“For FMCG brands, the change isn’t a trend to watch – it’s a structural shift in how products are discovered, evaluated and bought across both markets,” says Illera. The expectations set by these digital ecosystems are helping shape local retail behaviour.
“TikTok, Temu and Shein have trained consumers to expect mobile shopping that is immediate, intuitive and personalised,” she says. Frictionless checkout, constant newness and short-form video as the default path to purchase are influencing how Australians judge all brands – including premium, local and legacy players.
This is also reframing the price–value equation. Many Chinese and Korean brands offer strong design, solid functionality and aspirational aesthetics at lower price points. That combination forces local FMCG brands to work harder to articulate their premium positioning and defend margin.
Demand for new flavours, textures and formats
As consumers lean into Asian culture, their tastes and expectations shift too. They are actively seeking new textures, formats and functional ingredients borrowed from Asian cooking, skincare and wellness rituals. Packaging expectations have evolved as well, with shoppers drawn to bolder colours and richer visual cues that reflect cross-cultural authenticity, rather than generic fusion branding.
Many Australian and New Zealand FMCG brands, Illera says, have yet to fully explore social commerce, localised innovation or Asian influencer ecosystems. The opportunity is significant for those willing to adapt to Southeast Asia’s digital-first, culturally dynamic landscape.
“Local FMCG brands that fail to modernise – whether in innovation, brand storytelling or digital retail capability – risk being overshadowed by competitors who move faster and speak more directly to what consumers now expect.”
How FMCG brands should respond
Illera outlines four strategic priorities for brands preparing for – and participating in – the Next Asian Wave.
1. Build for digital-native customers
Short-form platforms are no longer just awareness channels; they are commerce engines. TikTok Shop, YouTube Shorts and Instagram Reels now drive discovery at a pace traditional channels can’t match. FMCG brands that still treat them as “top-of-funnel” risk falling behind.
Winning players are simplifying mobile checkout, eliminating friction and using AI-driven recommendation engines to personalise bundles, flavours and formats. The shift is toward deep digital engagement, not simply e-commerce availability.
2. Take Asian-led flavour, format and aesthetic trends seriously
Consumers are embracing influences from hot-pot flavours and milk-tea formats to collagen drinks and bold packaging cues. Many local brands, however, still respond superficially.
Authenticity is critical. Illera stresses that responding effectively “requires more than adding ‘Asian-inspired’ labels to existing SKUs.” The right cultural partners – chefs, creators, designers – help ensure credibility and avoid opportunistic branding.
Packaging should embrace stronger colour palettes and design languages that resonate with cross-cultural consumers. Cute aesthetics or collectible formats can work, but only when they feel grounded in product authenticity.
Partnerships with Asian brands, influencers or KOLs who already have traction in Australia and New Zealand can also open new communities and elevate design sensibilities. Some FMCG players are exploring collaboration with Asian innovation labs or food-tech suppliers to accelerate development.
3. Strengthen what only local brands can offer
As price competition intensifies, defensible advantage lies in the core attributes of Australian and New Zealand brands: High safety standards, mature supply chains, sustainability credentials and provenance.
These strengths must be communicated clearly. “Focus on your current strengths and unique selling proposition to defend your market share,” Illera says, “but embrace visual storytelling – whether full packaging or algorithm-optimised short-form videos – so you are playing your rivals at their own game.”
4. Shorten the innovation cycle
Trend cycles are now measured in weeks, not years. Annual innovation calendars no longer align with how fast TikTok and cross-border platforms can shape consumer tastes.
Fast-drop cycles, limited editions and small-batch releases give brands a way to test and scale with minimal risk. Leading players are shifting toward seasonal or quarterly innovation, supported by rapid prototyping and micro-community testing. Monitoring emerging Asian-origin trends – from regional flavour profiles to beauty-adjacent drinks – is becoming essential to staying ahead of demand.
Local brands that are getting it right
While the market is evolving quickly, a growing group of Australian and New Zealand FMCG brands is showing how to win in the current environment.
Australia’s Swisse has been the leading player in China’s online vitamins and dietary supplements market since 2022. Its success is driven by product innovation aligned to Chinese health priorities and a tiered branding strategy that guides customers from awareness to purchase. Celebrity endorsements, TV sponsorships and KOL recommendations have further accelerated its visibility. Read more in this Euromonitor case study.
New Zealand’s Pic’s Peanut Butter has built strong traction across Southeast Asia and China. Although peanut butter isn’t traditionally consumed the same way in China, Pic’s has generated significant awareness through local partnerships, innovative flavours such as Salt-and-Pepper Peanut Butter, and a growing base of younger, fitness-oriented consumers who use the product in bowls, baking and hot pots. Localisation, Illera notes, “is not exclusively about language. It can be packaging. It can be the way that you communicate. It can be as simple as the texture.”
Seasoning brand Mingle offers another quick-turn success story. By using TikTok to seed its products with Hong Kong-based influencers, the brand went viral and sold out. “They leveraged the appropriate channel,” Illera says. “They found a flavour that was interesting to that market, and they succeeded.”
